Neonode Reports 2024 Financial Results

STOCKHOLM, March 21, 2025 /PRNewswire/ -- Neonode Inc. (NASDAQ:NEON) today reported financial results for the fiscal year ended December 31, 2024.

FINANCIAL SUMMARY FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024:

• Revenues from continuing operations of $3.1 million, a decrease of 18.8% compared to the prior year.
• Operating expenses from continuing operations of $9.5 million, a decrease of 0.2% compared to the prior year.
• Loss from continuing operations of $5.9 million, or $0.37 per share, compared to $5.1 million, or $0.33 per share, for the prior year.
• Cash used by operations of $5.6 million, compared to $6.3 million for the prior year.
• Cash and accounts receivable of $17.2 million as of December 31, 2024, compared to $16.8 million for the prior year-end.

THE CEO'S COMMENTS

"Last year marked an important year of transition for Neonode as we discontinued Touch Sensor Module ("TSM") manufacturing and positioned ourselves for a future fully focused on technology licensing. Our licensable technology platforms, MultiSensing® and zForce®, continued to generate customer interest in 2024 – resulting in non-recurring engineering ("NRE") fees from customer projects, which we expect to generate license revenues once these projects enter the production phase," said Fredrik Nihlén, Neonode's interim President and CEO and CFO.

"While we are seeing a decline in revenues from our legacy business within printer and car touch applications, we are confident that we are now well-positioned to capitalize on opportunities in new applications within automotive safety and touch displays. As a testament to this, last year, we announced an award by a leading commercial vehicle original equipment manufacturer ("OEM") to supply MultiSensing driver monitoring system ("DMS") software. Neonode's zForce-based TSM technology was also selected by NEXTY Electronics for their next-generation amusement machines. We continue to develop our technology platforms and are working closely with customers and prospects to deliver innovative licensable solutions that enhance our market position and expand the applications addressable with our technology," concluded Mr. Nihlén.

FINANCIAL OVERVIEW FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024

Revenues from continuing operations for fiscal 2024 were $3.1 million, an 18.8% decrease compared to 2023. License revenues were $2.7 million, a decrease of 29.3% compared to 2023. 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 fiscal 2024 were $0.4 million, a 1,519.2% increase compared to 2023, mainly attributable to the DMS project with the commercial vehicle OEM customer that was announced at the end of 2023 and the new agreement with NEXTY Electronics for an evolution of our licensable TSM technology.

Operating expenses from continuing operations for fiscal 2024 were $9.5 million, a 0.2% decrease compared to 2023.

Loss from continuing operations for fiscal 2024 was $5.9 million, or $0.37 per share, compared to a loss from continuing operations of $5.1 million, or $0.33 per share for 2023.

Cash used by operations was $5.6 million in fiscal 2024 compared to $6.3 million for 2023. The decrease was primarily due to fewer component purchases following the phaseout of TSM manufacturing.

Cash and accounts receivable totaled $17.2 million and working capital for continuing operations was $16.1 million as of December 31, 2024, compared to $16.8 million and $16.1 million as of December 31, 2023, 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:

Interim President and Chief Executive Officer and Chief Financial Officer

Fredrik Nihlén

E-mail: [email protected]

Phone: +46 703 97 21 09

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SOURCE Neonode