Neonode Reports Quarter Ended June 30, 2025 Financial Results

STOCKHOLM, Aug. 13, 2025 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) ("Neonode" or the "Company") today reported financial results for the three and six months ended June 30, 2025.

FINANCIAL SUMMARY FOR THE THREE MONTHS ENDED JUNE 30, 2025:

• Revenues from continuing operations of $0.6 million, a decrease of 25.2% compared to the same period in the prior year.
• Operating expenses from continuing operations of $2.7 million, an increase of 5.3% compared to the same period in the prior year.
• Loss from continuing operations of $2.0 million, or $0.12 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 $1.7 million, compared to $1.2 million for the same period in the prior year.
• Cash and accounts receivable of $13.6 million as of June 30, 2025 compared to $17.2 million as of December 31, 2024.

FINANCIAL SUMMARY FOR THE SIX MONTHS ENDED JUNE 30, 2025:

• Revenues from continuing operations of $1.1 million, a decrease of 31.1% compared to the same period in the prior year.
• Operating expenses from continuing operations of $5.2 million, a decrease of 1.5% compared to the same period in the prior year.
• Loss from continuing operations of $3.8 million, or $0.23 per share, compared to $3.4 million, or $0.22 per share, for the same period in the prior year.
• Cash used by operations of $3.1 million, compared to $3.1 million for the same period in the prior year.

THE CEO'S COMMENTS

"The second quarter of this year continued to see a decline in revenues from our legacy business as demand for our solutions in the printer and automotive infotainment markets maintained their negative trend. Despite these challenges – that we expect to remain until new customers have moved from deployment phase to production phase – we are actively working to expand business opportunities and advance the product roadmap across our two core technology platforms: MultiSensing® and zForce®. This will drive the company's sustainable future growth and will in time offset the negative trend within the legacy business," said Daniel Alexus, President & CEO of Neonode.

"For MultiSensing, we continue to build on and invest in being the first mover in fully synthetic, data-driven HMI solutions – where our execution speed will continue to outperform the competition. While we continue to deliver on previously announced customer projects, we will also continue to build strategic partnerships within the automotive sector. In parallel, we are exploring new verticals where our unique value proposition, especially for addressing narrow-vision challenges, can be deployed more rapidly. With the zForce platform, we continue to serve our existing customer base while focusing on new project deliveries."

"Our continued priority across both platforms is to deliver attractive solutions that address the challenges our customers face and that they see as worth investing in," concluded Mr. Alexus.

FINANCIAL OVERVIEW FOR THE QUARTER ENDED JUNE 30, 2025

Revenues from continuing operations for the three months ended June 30, 2025 were $0.6 million, a 25.2% decrease compared to the same period in 2024. License revenues were $0.4 million, a decrease of 34.2% 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 June 30, 2025 were $0.2 million, a 4.3% increase compared to the same period in 2024.

Operating expenses from continuing operations for the three months ended June 30, 2025 were $2.7 million, a 5.3% increase compared to the same period in 2024.

Loss from continuing operations for the three months ended June 30, 2025 was $2.0 million, or $0.12 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 $1.7 million in the second quarter of 2025 compared to $1.2 million for the same period in 2024. The increase was primarily due to a lower net loss and fewer component purchases following the phaseout of TSM manufacturing.

Cash and accounts receivable totaled $13.6 million and working capital for continuing operations was $12.1 million as of June 30, 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:

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

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