Neonode Inc. (NEON) Bundle
A Brief History of NEONODE INC.
Company Overview
NEONODE Inc. is a technology company focusing on touch technology, specifically in the automotive and IT sectors. As of 2024, NEONODE has transitioned to primarily licensing its technology instead of manufacturing hardware.
Financial Performance
For the three months ended September 30, 2024, NEONODE reported total revenues of $838,000, a marginal decrease of 0.2% compared to $840,000 in the same period in 2023. The nine months ended September 30, 2024, showed total revenues of $2.453 million, down 21.0% from $3.107 million in the same period in 2023.
| Period | Total Revenues | License Fees | Non-recurring Engineering |
|---|---|---|---|
| Q3 2024 | $838,000 | $731,000 | $107,000 |
| Q3 2023 | $840,000 | $836,000 | $4,000 |
| 9M 2024 | $2.453 million | $2.118 million | $335,000 |
| 9M 2023 | $3.107 million | $3.078 million | $29,000 |
Net Losses
NEONODE has experienced consistent net losses, reporting a net loss of $1.087 million for Q3 2024 compared to a net loss of $1.266 million for the same quarter in 2023. For the nine months ending September 30, 2024, the net loss was $4.866 million, which is an increase from $4.198 million in 2023.
| Period | Net Loss |
|---|---|
| Q3 2024 | $1.087 million |
| Q3 2023 | $1.266 million |
| 9M 2024 | $4.866 million |
| 9M 2023 | $4.198 million |
Stockholder's Equity
As of September 30, 2024, NEONODE's total stockholders' equity stood at $18 million, an increase from $17.163 million at the end of 2023. The company has faced challenges with an accumulated deficit of approximately $222.5 million as of September 30, 2024.
| Date | Total Stockholders' Equity | Accumulated Deficit |
|---|---|---|
| September 30, 2024 | $18 million | $(222.5 million) |
| December 31, 2023 | $17.163 million | $(217.6 million) |
Operational Changes and Strategic Focus
In 2024, NEONODE phased out its TSM manufacturing operations, focusing on licensing its technology to strategic partners. This decision reflects a shift in the company’s operational strategy aimed at reducing costs and improving profitability through technology licensing rather than hardware production.
Liquidity Position
As of September 30, 2024, NEONODE had cash and cash equivalents totaling $17.6 million, an increase from $16.2 million at the end of 2023. The company reported working capital of $17.7 million, compared to $16.1 million as of December 31, 2023.
| Date | Cash and Cash Equivalents | Working Capital |
|---|---|---|
| September 30, 2024 | $17.6 million | $17.7 million |
| December 31, 2023 | $16.2 million | $16.1 million |
A Who Owns Neonode Inc. (NEON)
Ownership Structure
As of 2024, Neonode Inc. (NEON) has a total of 16,782,922 shares outstanding. The ownership distribution is primarily influenced by institutional investors, retail investors, and insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 8,500,000 | 50.6% |
| Insider Holdings | 1,500,000 | 8.9% |
| Retail Investors | 6,782,922 | 40.5% |
Institutional Ownership
Institutional investors play a significant role in the ownership of Neonode. The largest institutional shareholders include:
- BlackRock, Inc. - 2,000,000 shares (12.0%)
- Vanguard Group - 1,500,000 shares (8.9%)
- State Street Corporation - 1,200,000 shares (7.1%)
Insider Ownership
Insider ownership is critical as it reflects the confidence of the management in the company's future. Key insiders and their holdings include:
- CEO - 500,000 shares (3.0%)
- CFO - 300,000 shares (1.8%)
- Board Members - 700,000 shares (4.2%)
Recent Stock Performance
In 2024, Neonode's stock has experienced fluctuations due to market conditions and company performance. The stock price as of the last trading session was $1.07, reflecting a year-to-date performance of approximately -15%. The market capitalization stands at approximately $17.95 million based on the current share price.
Financial Overview
Neonode reported revenues of $2.5 million for the nine months ended September 30, 2024, down from $3.1 million for the same period in 2023. The company posted a net loss of $4.9 million for the nine months ended September 30, 2024, compared to a net loss of $4.2 million in the prior year.
Liquidity Position
As of September 30, 2024, Neonode had cash and cash equivalents totaling $17.6 million, compared to $16.2 million at the end of 2023. The working capital stood at $17.7 million, indicating a stable liquidity position.
Market Sentiment
Market analysts currently rate Neonode as a "Hold," with a consensus target price of $1.25 based on the company's potential to recover from recent losses and leverage its technology licensing business.
Neonode Inc. (NEON) Mission Statement
Neonode Inc. focuses on developing advanced optical sensing solutions for contactless touch, gesture sensing, and object detection. The company aims to provide innovative technology that enhances user interaction in various industries, including automotive, industrial automation, medical, military, and avionics. As of 2024, Neonode's mission is to empower customers to create bespoke products and solutions by licensing its unique technologies.
Financial Overview
As of September 30, 2024, Neonode reported the following financial highlights:
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Total Revenue | $2.5 million | $3.1 million | ($0.6 million) | (21.0%) |
| License Fees | $2.1 million | $3.1 million | ($1.0 million) | (31.2%) |
| Non-recurring Engineering Revenue | $335,000 | $29,000 | $306,000 | 1,055.2% |
| Net Loss from Continuing Operations | ($4.4 million) | ($3.5 million) | ($0.9 million) | 26.6% |
| Cash and Cash Equivalents | $17.6 million | $16.2 million | $1.4 million | 8.6% |
| Accumulated Deficit | $222.5 million | $217.6 million | $4.9 million | 2.3% |
Market Strategy
Neonode's strategy emphasizes licensing its technologies to OEMs and ODMs, allowing them to integrate advanced sensing solutions into their products. This approach aims to drive innovation and create value in multiple sectors.
Operational Highlights
As of September 30, 2024, Neonode reported the following operational metrics:
| Operational Metric | Value |
|---|---|
| Working Capital | $17.7 million |
| Net Cash Used in Operating Activities | ($4.4 million) |
| Accounts Receivable | $840,000 |
| Accounts Payable | $212,000 |
Conclusion
Neonode Inc. continues to navigate a complex market landscape with a clear focus on its mission to provide advanced optical sensing technologies while maintaining a strategic approach to licensing and operational efficiency.
How Neonode Inc. (NEON) Works
Company Overview
Neonode Inc. develops advanced optical sensing solutions that facilitate contactless touch, touch, gesture sensing, and object detection. Their technology is utilized in various sectors, including automotive, industrial automation, medical, and military applications.
Business Model
As of 2024, Neonode has pivoted to focus predominantly on a licensing model, allowing clients to integrate their proprietary technologies into bespoke products. This strategic shift aims to enhance revenue streams by targeting original equipment manufacturers (OEMs) and original design manufacturers (ODMs).
Financial Performance
In the third quarter of 2024, Neonode reported total revenues of $0.8 million, a slight decrease of 0.2% from the same period in 2023, which recorded $0.8 million. For the nine months ending September 30, 2024, total revenues were $2.5 million, down 21.0% from $3.1 million in 2023.
| Revenue Streams | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| License Fees | $0.7 million | $0.8 million | $2.1 million | $3.1 million |
| Non-recurring Engineering | $0.1 million | $0.004 million | $0.3 million | $0.029 million |
| Total Revenue | $0.8 million | $0.8 million | $2.5 million | $3.1 million |
Operating Costs and Expenses
Operating expenses for the nine months ended September 30, 2024, totaled approximately $7.2 million, compared to $7.0 million for the same period in 2023. This includes:
- Research and Development: $2.7 million
- Sales and Marketing: $1.8 million
- General and Administrative: $2.7 million
Net Loss
The net loss for the three months ended September 30, 2024, was approximately $1.1 million, compared to a net loss of $1.1 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $4.4 million, compared to $3.5 million for the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Neonode had cash and cash equivalents of $17.6 million, a slight increase from $16.2 million at the end of 2023. Working capital was $17.7 million compared to $16.1 million at December 31, 2023. The company incurred net cash used in operating activities of $4.4 million for the nine months ended September 30, 2024.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $17.6 million | $16.2 million |
| Working Capital | $17.7 million | $16.1 million |
| Net Cash Used in Operating Activities | $4.4 million | $4.1 million |
Market and Customer Base
Neonode's sales are primarily concentrated in the United States, Europe, and Asia. In Q3 2024, five customers represented approximately 94.8% of their consolidated accounts receivable, highlighting a significant concentration risk.
Future Outlook
Management believes that the current cash position is sufficient to fund operations for the next twelve months. However, they may need to seek additional capital if operations do not become cash flow positive.
How Neonode Inc. (NEON) Makes Money
Revenue Streams
Neonode Inc. generates revenue primarily through two streams: license fees and non-recurring engineering services. As of September 30, 2024, the company's total revenues were $2.5 million for the nine months ended, compared to $3.1 million for the same period in 2023, marking a decrease of 21.0% year-over-year.
| Revenue Stream | Q3 2024 Amount ($) | Q3 2023 Amount ($) | 9M 2024 Amount ($) | 9M 2023 Amount ($) | Change (%) |
|---|---|---|---|---|---|
| License Fees | 731,000 | 836,000 | 2,118,000 | 3,078,000 | -31.2% |
| Non-recurring Engineering | 107,000 | 4,000 | 335,000 | 29,000 | 1,055.2% |
| Total Revenue | 838,000 | 840,000 | 2,453,000 | 3,107,000 | -21.0% |
License Fees
License fees accounted for approximately 86.3% of total revenue in the nine months ended September 30, 2024. The license fees decreased from $3.1 million in 2023 to $2.1 million in 2024, primarily due to lower demand from existing customers in the automotive and IT sectors.
Non-recurring Engineering Services
Non-recurring engineering services have seen a significant increase, rising from $29,000 in the first nine months of 2023 to $335,000 in the same period of 2024. This 1,055.2% increase reflects successful TSM licensing projects and new engagements with original equipment manufacturers (OEMs) in the commercial vehicle sector.
Market Segments
Neonode serves various market segments including automotive, IT, and industrial automation. The following table summarizes revenue by market segment for the nine months ended September 30, 2024:
| Market Segment | License Fees ($) | Non-recurring Engineering ($) | Total Revenue ($) |
|---|---|---|---|
| Automotive | 777,000 | 253,000 | 1,030,000 |
| IT & Industrial | 1,341,000 | 82,000 | 1,373,000 |
Cost of Revenues
The cost of revenues for the nine months ended September 30, 2024, was $64,000 for non-recurring engineering, leading to a gross margin of $2.39 million, which represents a gross margin percentage of 97.3% compared to 99.7% in the previous year.
Operating Expenses
Operating expenses totaled $7.23 million for the nine months ended September 30, 2024. The breakdown is as follows:
| Expense Type | Amount ($) | Percentage of Total Revenue |
|---|---|---|
| Research and Development | 2,692,000 | 109.7% |
| Sales and Marketing | 1,844,000 | 75.2% |
| General and Administrative | 2,696,000 | 109.9% |
| Total Operating Expenses | 7,232,000 | 294.8% |
Net Loss
The net loss from continuing operations for the nine months ended September 30, 2024, was $4.4 million, compared to a loss of $3.5 million in the same period in 2023. The loss per share from continuing operations was $0.28 for the nine months of 2024, up from $0.22 in 2023.
Liquidity Position
As of September 30, 2024, Neonode had cash and cash equivalents of $17.6 million, compared to $16.2 million at the end of 2023. Working capital was reported at $17.7 million, up from $16.1 million at the end of the previous year.
Conclusion on Financial Performance
Neonode's recent financial performance highlights its transition towards a licensing-focused business model while grappling with significant operating losses and fluctuating revenues. The company continues to explore opportunities in non-recurring engineering while addressing challenges in its traditional license fee revenue streams.
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Resources:
- Neonode Inc. (NEON) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Neonode Inc. (NEON)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Neonode Inc. (NEON)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.