Neonode Reports Quarter Ended March 31, 2025 Financial Results

STOCKHOLM, May 14, 2025 /PRNewswire/ -- 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:

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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