Exhibit 99.1
Press Release
For Release, 09:10AM ET May 14, 2025
Neonode Reports Quarter Ended March 31, 2025 Financial Results
STOCKHOLM, SWEDEN, May 14, 2025 — Neonode Inc. (NASDAQ: NEON) (“Neonode” or the “Company”) today reported financial results for the three months ended March 31, 2025.
FINANCIAL SUMMARY FOR THE QUARTER ENDED MARCH 31, 2025:
| ● | Revenues from continuing operations of $0.5 million, a decrease of 37.0% compared to the same period in the prior year. |
| ● | Operating expenses from continuing operations of $2.5 million, a decrease of 8.0% compared to the same period in the prior year. |
| ● | Loss from continuing operations of $1.8 million, or $0.11 per share, compared to $1.7 million, or $0.11 per share, for the same period in the prior year. |
| ● | Cash used by operations of $1.4 million, compared to $1.9 million for the same period in the prior year. |
| ● | Cash and accounts receivable of $15.7 million as of March 31, 2025 compared to $17.2 million as of December 31, 2024. |
THE CEO’S COMMENTS
“This quarter saw a continued decline in revenues from our legacy business as demand for our solutions in the printer market maintained its negative trend. Despite these challenges, we successfully continued to deliver on our existing customer projects, even though we did not secure any new contracts during this period. We are actively working to expand our business opportunities and advance our product roadmap across both core technology platforms: MultiSensing® and zForce®. This aims to offset the negative trend within the legacy business while driving sustainable future growth,” said Daniel Alexus, President & CEO of Neonode.
“Having stepped into the role as President & CEO on March 31, 2025, I am gaining deeper insights into the company, its products, and its people. My optimism about Neonode’s future continues to grow. The zForce platform holds significant promise for both touch on displays and rugged applications. Moving forward, we must sharpen our focus on customer segments that are mature and positioned for sustained growth,” continued Mr. Alexus.
“With MultiSensing, we have developed a compelling, end-to-end in-house solution that allows us to move quickly and maintain strong quality control. We are currently delivering to a previously announced commercial vehicle OEM, and we will continue to build strategic partnerships within the automotive sector. At the same time, we are exploring new verticals where our unique value proposition, especially for addressing narrow-vision challenges, can be deployed more rapidly.”
“Our overarching focus for both platforms remains clear: to solve real-world problems that customers care about and are willing to invest in,” concluded Mr. Alexus.
FINANCIAL OVERVIEW FOR THE QUARTER ENDED MARCH 31, 2025
Revenues from continuing operations for the three months ended March 31, 2025 were $0.5 million, a 37.0% decrease compared to the same period in 2024. License revenues were $0.5 million, a decrease of 35.7% compared to the same period in 2024. The decrease was mainly due to lower demand for our legacy customers’ products within printer and passenger car touch applications, offset by revenues from new licensing customers.
Revenues from non-recurring engineering for the three months ended March 31, 2025 were $16,000, a 61.0% decrease compared to the same period in 2024, mainly due to fewer projects.
Operating expenses from continuing operations for the three months ended March 31, 2025 were $2.5 million, a 8.0% decrease compared to the same period in 2024.
Loss from continuing operations for the three months ended March 31, 2025 was $1.8 million, or $0.11 per share, compared to a loss from continuing operations of 1.7 million, or $0.11 per share for the same period in 2024.
Cash used by operations was $1.4 million in the first quarter of 2025 compared to $1.9 million for the same period in 2024. The decrease was primarily due to a lower net loss and fewer component purchases following the phaseout of TSM manufacturing.
Cash and accounts receivable totaled $15.7 million and working capital for continuing operations was $14.1 million as of March 31, 2025, compared to $17.2 million and $16.1 million as of December 31, 2024, respectively. Our financial position and liquidity provide stability and enable us to execute our strategy to secure more licensing opportunities for our innovative technologies.
For more information, please contact:
President and Chief Executive Officer
Pierre Daniel Alexus
E-mail: daniel.alexus@neonode.com
Phone: +46 767 60 29 90
Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09
About Neonode
Neonode Inc. (NASDAQ:NEON) is a publicly traded company, headquartered in Stockholm, Sweden and established in 2001. The Company provides advanced optical sensing solutions for contactless touch, touch, gesture control, and in-cabin monitoring. Building on experience acquired during years of advanced research and development and technology licensing, Neonode’s technology is currently deployed in more than 90 million products, and the Company holds more than 100 patents worldwide. Neonode’s customer base includes some of the world’s best-known Fortune 500 companies in the consumer electronics, office equipment, automotive, elevator, and self-service kiosk markets.
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NEONODE and the NEONODE logo are trademarks of Neonode Inc. registered in the United States and other countries.
For further information please visit www.neonode.com
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Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements relating to our expectations for growth and the growing demand for our products, future performance or future events. These statements are based on current assumptions, expectations and information available to Neonode management and involve a number of known and unknown risks, uncertainties and other factors that may cause Neonode’s actual results, levels of activity, performance or achievements to be materially different from any expressed or implied by these forward-looking statements.
These risks, uncertainties, and factors include risks related to our reliance on the ability of our customers to design, manufacture and sell their products with our touch technology, the length of a customer’s product development cycle, our dependence and our customers’ dependence on suppliers, the global economy generally and other risks discussed under “Risk Factors” and elsewhere in Neonode’s public filings with the SEC from time to time, including Neonode’s annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. You are advised to carefully consider these various risks, uncertainties and other factors. Although Neonode management believes that the forward-looking statements contained in this press release are reasonable, it can give no assurance that its expectations will be fulfilled. Forward-looking statements are made as of today’s date, and Neonode undertakes no duty to update or revise them.
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NEONODE INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 14,991 | $ | 16,427 | ||||
| Accounts receivable and unbilled revenues, net | 671 | 732 | ||||||
| Contract assets | 66 | 51 | ||||||
| Prepaid expenses and other current assets | 481 | 475 | ||||||
| Current assets of discontinued operations | 52 | - | ||||||
| Total current assets | 16,261 | 17,685 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 101 | 62 | ||||||
| Operating lease right-of-use assets, net | 610 | 634 | ||||||
| Total non-current assets | 711 | 696 | ||||||
| Total assets | $ | 16,972 | $ | 18,381 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 400 | $ | 229 | ||||
| Accrued payroll and employee benefits | 940 | 760 | ||||||
| Accrued expenses | 439 | 404 | ||||||
| Contract liabilities | 75 | - | ||||||
| Current portion of finance lease obligations | 9 | 2 | ||||||
| Current portion of operating lease obligations | 258 | 225 | ||||||
| Total current liabilities | 2,121 | 1,620 | ||||||
| Non-current liabilities | ||||||||
| Finance lease obligations, net of current portion | 20 | - | ||||||
| Operating lease obligations, net of current portion | 256 | 319 | ||||||
| Total non-current liabilities | 276 | 319 | ||||||
| Total liabilities | 2,397 | 1,939 | ||||||
| Commitments and contingencies (Note 4) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, 1,000,000 shares authorized, with par value of $0.001; no shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively. | - | - | ||||||
| Common stock, 25,000,000 shares authorized, with par value of $0.001; 16,782,922 and 16,782,922 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively. | 17 | 17 | ||||||
| Additional paid-in capital | 240,955 | 240,955 | ||||||
| Accumulated other comprehensive loss | (584 | ) | (450 | ) | ||||
| Accumulated deficit | (225,813 | ) | (224,080 | ) | ||||
| Total stockholders’ equity | 14,575 | 16,442 | ||||||
| Total liabilities and stockholders’ equity | $ | 16,972 | $ | 18,381 | ||||
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NEONODE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues: | ||||||||
| License fees | $ | 497 | $ | 773 | ||||
| Non-recurring engineering | 16 | 41 | ||||||
| Total revenues | 513 | 814 | ||||||
| Cost of revenues: | ||||||||
| Non-recurring engineering | 9 | 17 | ||||||
| Total cost of revenues | 9 | 17 | ||||||
| Gross margin | 504 | 797 | ||||||
| Operating expenses: | ||||||||
| Research and development | 975 | 895 | ||||||
| Sales and marketing | 642 | 816 | ||||||
| General and administrative | 852 | 972 | ||||||
| Total operating expenses | 2,469 | 2,683 | ||||||
| Operating loss | (1,965 | ) | (1,886 | ) | ||||
| Other income, net | 155 | 180 | ||||||
| Loss before provision for income taxes | (1,810 | ) | (1,706 | ) | ||||
| Provision for income taxes | (10 | ) | 10 | |||||
| Loss from continuing operations | (1,800 | ) | (1,716 | ) | ||||
| Income (loss) from discontinued operations | 67 | (368 | ) | |||||
| Net loss | $ | (1,733 | ) | $ | (2,084 | ) | ||
| Loss per common share: | ||||||||
| Basic and diluted loss per share from continuing operations | $ | (0.11 | ) | $ | (0.11 | ) | ||
| Basic and diluted loss per share from discontinued operations | - | (0.03 | ) | |||||
| Basic and diluted net loss per share(a) | $ | (0.10 | ) | $ | (0.14 | ) | ||
| Basic and diluted – weighted average number of common shares outstanding | 16,783 | 15,359 | ||||||
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NEONODE INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net loss | $ | (1,733 | ) | $ | (2,084 | ) | ||
| Other comprehensive loss: | ||||||||
| Foreign currency translation adjustments | (134 | ) | (34 | ) | ||||
| Other comprehensive loss | (134 | ) | (34 | ) | ||||
| Comprehensive loss | $ | (1,867 | ) | $ | (2,118 | ) | ||
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NEONODE INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
| Common Stock Shares Issued | Common Stock Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||
| Balances, December 31, 2024 | 16,783 | $ | 17 | $ | 240,955 | $ | (450 | ) | $ | (224,080 | ) | $ | 16,442 | |||||||||||
| Foreign currency translation adjustment | - | - | - | (134 | ) | - | (134 | ) | ||||||||||||||||
| Net loss | - | - | - | - | (1,733 | ) | (1,733 | ) | ||||||||||||||||
| Balances, March 31, 2025 | 16,783 | $ | 17 | $ | 240,955 | $ | (584 | ) | $ | (225,813 | ) | $ | 14,575 | |||||||||||
| Common Stock Shares Issued | Common Stock Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||
| Balances, December 31, 2023 | 15,359 | $ | 15 | $ | 235,158 | $ | (396 | ) | $ | (217,614 | ) | $ | 17,163 | |||||||||||
| Stock-based compensation | - | - | 2 | - | - | 2 | ||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | (34 | ) | - | (34 | ) | ||||||||||||||||
| Net loss | - | - | - | - | (2,084 | ) | (2,084 | ) | ||||||||||||||||
| Balances, March 31, 2024 | 15,359 | $ | 15 | $ | 235,160 | $ | (430 | ) | $ | (219,698 | ) | $ | 15,047 | |||||||||||
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NEONODE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,733 | ) | $ | (2,084 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation expense | - | 2 | ||||||
| Depreciation and amortization | 9 | 27 | ||||||
| Amortization of operating lease right-of-use assets | 82 | 17 | ||||||
| Inventory impairment loss | - | 278 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable and unbilled revenues, net | (5 | ) | (170 | ) | ||||
| Inventory | - | (253 | ) | |||||
| Prepaid expenses and other current assets | 28 | 136 | ||||||
| Accounts payable, accrued payroll and employee benefits, and accrued expenses | 262 | 76 | ||||||
| Contract liabilities | 75 | 73 | ||||||
| Operating lease obligations | (78 | ) | (17 | ) | ||||
| Net cash used in operating activities | (1,360 | ) | (1,915 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (40 | ) | - | |||||
| Net cash used in investing activities | (40 | ) | - | |||||
| Cash flows from financing activities: | ||||||||
| Principal payments on finance lease obligations | (2 | ) | (9 | ) | ||||
| Net cash used in financing activities | (2 | ) | (9 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (34 | ) | 43 | |||||
| Net change in cash and cash equivalents | (1,436 | ) | (1,881 | ) | ||||
| Cash and cash equivalents at beginning of period | 16,427 | 16,155 | ||||||
| Cash and cash equivalents at end of period | $ | 14,991 | $ | 14,274 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for income taxes | $ | 10 | $ | 10 | ||||
| Cash paid for interest | $ | - | $ | 1 | ||||
| Supplemental disclosure of non-cash investing and financial activities: | ||||||||
| Property and equipment obtained in exchange for finance lease obligations | $ | 28 | $ | - | ||||
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