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Interim Period Reporting | 9 Months Ended
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Sep. 30, 2019
Interim Period Reporting [Abstract] |
Interim Period Reporting | 1. Interim Period Reporting The accompanying unaudited interim condensed consolidated financial statements include all adjustments consisting of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim periods presented. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of results for a full fiscal year or any other period. The accompanying condensed consolidated financial statements for the three and nine months ended September 30, 2019 and 2018 have been prepared by us, pursuant to the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally contained in financial statements prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. We adopted the new lease accounting standard effective January 1, 2019. We used the required modified retrospective approach for adoption of the new standard, which allowed us to begin reporting operating leases on the balance sheet as of January 1, 2019. See Notes 2 and 7 for further discussion. Operations Neonode Inc., collectively with its subsidiaries is referred to as "Neonode", develops and licenses user interfaces and optical touch technology to Original Equipment Manufacturers ("OEMs") and Tier 1 suppliers who embed the Neonode technology into devices that they produce and sell. We also manufacture and sell our sensor modules, which incorporate our technology, to customers as an integrated hardware solution to embed our technology in their products. In the fourth quarter of 2016, we started to manufacture and sell "AirBar" which is a Neonode branded consumer product that uses one of our embedded sensor modules. Liquidity We have incurred significant operating losses and negative cash flows from operations since our inception. The Company incurred net losses of approximately $1.1 million and $2.9 million and $0.8 million and $2.5 million for the three and nine months ended September 30, 2019 and 2018, respectively, and had an accumulated deficit of approximately $188.1 million and $185.2 million as of September 30, 2019 and December 31, 2018, respectively. In addition, operating activities used cash of approximately $2.9 million and $2.3 million for the nine months ended September 30, 2019 and 2018, respectively. We expect that our revenues from license fees, sensor module, non-recurring engineering fees and AirBar sales will provide us with improved cash flows from operations for at least the next twelve months. In addition, we have improved the overall cost efficiency of our operations and intend to continue to implement various measures to improve our operational efficiencies. No assurances can be given that management will be successful in meeting its revenue targets and reducing its operating loss. The condensed consolidated financial statements included herein have been prepared on a going concern basis, which contemplates continuity of operations and the realization of assets and the repayment of liabilities in the ordinary course of business. Management evaluated the significance of the Company's operating loss and determined that the Company's current operating plan and sources of capital would be sufficient to alleviate concerns about the Company's ability to continue as a going concern. We have obtained capital through private placements in recent years and currently have the ability to raise capital pursuant to an effective shelf registration statement, which is described immediately below. In the future, we may require sources of capital in addition to cash on hand to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek equity investments or debt arrangements. No assurances can be given that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate financing is not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, results of operations and financial condition. In addition, if funds are available, the issuance of equity securities or securities convertible into equity could dilute the value of shares of our common stock and cause the market price to fall, and the issuance of debt securities could impose restrictive covenants that could impair our ability to engage in certain business transactions. Shelf Registration Statement In March 2017, we filed a $20 million shelf registration statement with the SEC that became effective on March 24, 2017. Subject to the availability of sufficient shares of authorized common stock, we may from time to time issue shares of our common stock under our shelf registration in amounts, at prices, and on terms to be announced when and if the securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in a prospectus supplement and any other offering materials, at the time of the offering. Our shelf registration statement will expire on March 24, 2020.

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