What changed in this filing

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Item 1. Financial Statements

2023-11-09 compared with 2023-08-10 · 186 added, 148 removed, 880 unchanged (28% of the section changed)

2 unchanged sentences

(In thousands, except share and per share amounts)

September 30,

Current assets:

20 unchanged sentences

Common stock, 25,000,000 shares authorized, with par value of $ 0.001 ;

15,359,481 and 14,455,765 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively

15,359,481 and 14,455,765 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

Additional paid-in capital

8 unchanged sentences

Three months ended

Six months ended

September 30,

Nine months ended

September 30,

Non-recurring engineering

26 unchanged sentences

Three months ended

Six months ended

September 30,

Nine months ended

September 30,

Other comprehensive income (loss):

7 unchanged sentences

(In thousands)

For the three and six months ended June 30,

For the three and nine months ended September

30, 2023 and 2022

14 unchanged sentences

$ ( 210,423 )

Stock-based compensation

Foreign currency translation adjustment

Balances, September 30, 2023

$ ( 211,689 )

Comprehensive

12 unchanged sentences

$ ( 205,536 )

Stock-based compensation

Repurchase and retirement of stock

Foreign currency translation adjustment

Balances, September 30, 2022

$ ( 206,336 )

The accompanying notes are an integral part of

2 unchanged sentences

(In thousands)

Six months ended

Nine months ended

September 30,

Cash flows from operating activities:

17 unchanged sentences

Proceeds from issuance of common stock, net of offering costs

Repurchase of common stock

Principal payments on finance lease obligations

17 unchanged sentences

periods presented.

The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of results

for a full fiscal year or any other period.

The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of

results for a full fiscal year or any other period.

The accompanying condensed

consolidated financial statements for the three and six months ended June 30, 2023 and 2022 have been prepared by us, pursuant to the

rules and regulations of the United States Securities and Exchange Commission (“SEC”).

Certain information and footnote disclosures

normally contained in financial statements prepared in accordance with accounting principles generally accepted in the United States of

America (“U.S.

consolidated financial statements for the three and nine months ended September 30, 2023 and 2022 have been prepared by us, pursuant to

the rules and regulations of the United States Securities and Exchange Commission (“SEC”).

Certain information and footnote

disclosures normally contained in financial statements prepared in accordance with accounting principles generally accepted in the United

States of America (“U.S.

GAAP”) have been condensed or omitted.

These condensed consolidated financial statements should be read in

conjunction with the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal

year ended December 31, 2022.

These condensed consolidated financial statements should be

read in conjunction with the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for

the fiscal year ended December 31, 2022.

Neonode Inc., which is collectively

17 unchanged sentences

non-recurring engineering fees.

We have incurred significant

operating losses and negative cash flows from operations since our inception.

The Company incurred net losses of approximately $ 1.5 million

and $ 2.9 million and $ 1.5 million and $ 2.9 million for the three and six months ended June 30, 2023 and 2022, respectively, and had an

accumulated deficit of approximately $ 210.4 million and $ 207.5 million as of June 30, 2023 and December 31, 2022, respectively.

operating activities used cash of approximately $ 2.3 million and $ 5.2 million for the six months ended June 30, 2023 and 2022, respectively.

We have incurred significant operating

losses and negative cash flows from operations since our inception.

The Company incurred net losses of approximately $ 1.3 million and

$ 4.2 million and $ 0.8 million and $ 3.7 million for the three and nine months ended September 30, 2023 and 2022, respectively, and had

an accumulated deficit of approximately $ 211.7 million and $ 207.5 million as of September 30, 2023 and December 31, 2022, respectively.

In addition, operating activities used cash of approximately $ 4.1 million and $ 5.7 million for the nine months ended September 30, 2023

and 2022, respectively.

The condensed consolidated

5 unchanged sentences

ability to continue as a going concern.

During the six months ended June 30, 2023, the Company sold an aggregate of 903,716 shares of

its common stock under the at-the-market facility with aggregate net proceeds to the Company of $ 7,866,000 , after payment of commissions

During the nine months ended September 30, 2023, the Company sold an aggregate of 903,716 shares

of its common stock under the at-the-market facility with aggregate net proceeds to the Company of $ 7,866,000 , after payment of commissions

Riley Securities, the agent for the at-the-market facility, and other expenses of $ 244,000 .

31 unchanged sentences

The condensed consolidated

balance sheets at June 30, 2023 and December 31, 2022 and the condensed consolidated statements of operations, comprehensive loss, stockholders’

equity and cash flows for the three and six months ended June 30, 2023 and 2022 include our accounts and those of our wholly-owned subsidiaries

as well as Pronode Technologies AB.

balance sheets at September 30, 2023 and December 31, 2022 and the condensed consolidated statements of operations, comprehensive loss,

stockholders’ equity and cash flows for the three and nine months ended September 30, 2023 and 2022 include our accounts and those

of our wholly-owned subsidiaries as well as Pronode Technologies AB.

Estimates and Judgments

19 unchanged sentences

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities

of three months or less to be cash equivalents.

The Company considers all

highly liquid investments with original maturities of three months or less to be cash equivalents.

Concentration of Cash Balance Risks

20 unchanged sentences

However, because of the short time to the expected receipt of accounts receivable,

we believe that the carrying value, net of excepted losses, approximates fair value and therefore, relies more on historical and current

we believe that the carrying value, net of expected losses, approximates fair value and therefore, we rely more on historical and current

analysis of such financial instruments, including our trade receivables.

Further, we consider macroeconomic factors

and the status of the technology industry to estimate if there are current expected credit losses within our trade receivables based on

the trends and our expectation of the future status of such economic and industry-specific factors.

Also, specific allowance amounts are

established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of

Further, we consider macroeconomic

factors and the status of the technology industry to estimate if there are current expected credit losses within our trade receivables

based on the trends and our expectation of the future status of such economic and industry-specific factors.

Also, specific allowance

amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability

The accounts receivable balance

on our consolidated balance sheet as of June 30, 2023 was $ 1.3 million, net of approximately $ 30,000 of allowances.

The following table

provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present

the net amount expected to be collected at June 30, 2023:

on our consolidated balance sheet as of September 30, 2023 was $ 0.9 million, net of approximately $ 30,000 of allowances.

The following

table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable

to present the net amount expected to be collected at September 30, 2023:

Balance at January 1, 2023

1 unchanged sentence

Write-offs, net of recoveries

Balance at June 30, 2023

Balance at September 30, 2023

The Company’s inventory

10 unchanged sentences

it is stored.

The AirBar inventory reserve was $ 0.3 million and $ 0.3 million as of June 30, 2023 and December 31, 2022, respectively.

The AirBar inventory reserve was $ 0.3 million and $ 0.3 million as of September 30, 2023 and December 31, 2022, respectively.

Raw materials, work-in-process,

and finished goods are as follows (in thousands):

September 30,

Raw materials

33 unchanged sentences

of these assets.

As of June 30, 2023, we believe there was no impairment of our long-lived assets.

There can be no assurance, however,

that market conditions will not change or sufficient demand for our products and services will continue, which could result in impairment

of long-lived assets in the future.

As of September 30, 2023, we believe there was no impairment of our long-lived assets.

There can be no assurance,

however, that market conditions will not change or sufficient demand for our products and services will continue, which could result in

impairment of long-lived assets in the future.

Foreign Currency Translation and Transaction

9 unchanged sentences

Foreign currency translation gains (losses) were $( 48,000 ) and $( 154,000 ) and $ 30,000 and $ 104,000 during the three and

six months ended June 30, 2023 and 2022, respectively.

Gains (losses) resulting from foreign currency transactions are included in general

and administrative expenses in the accompanying condensed consolidated statements of operations and were $ 0 and $( 5,000 ) during the three

and six months ended June 30, 2023, respectively, compared to $ 30,000 and $ 29,000 during the same periods in 2022, respectively.

nine months ended September 30, 2023 and 2022, respectively.

Gains (losses) resulting from foreign currency transactions are included

in general and administrative expenses in the accompanying condensed consolidated statements of operations and were $ 7,000 and $ 2,000

during the three and nine months ended September 30, 2023, respectively, compared to $ 18,000 and $ 47,000 during the same periods in 2022,

respectively.

Concentration of Credit and Business Risks

1 unchanged sentence

in the United States, Europe and Asia.

As of June 30, 2023, four

of our customers represented approximately 71 % of our consolidated accounts receivable and unbilled revenues.

As of September 30, 2023,

four of our customers represented approximately 75 % of our consolidated accounts receivable and unbilled revenues.

As of December 31, 2022, five

1 unchanged sentence

Customers who accounted for

10 % or more of our net revenues during the three months ended June 30, 2023 are as follows:

10 % or more of our net revenues during the three months ended September 30, 2023 are as follows:

● Seiko Epson Corporation – 21 %

● Hewlett-Packard Company – 21 %

● Alpine Electronics, Inc – 16 %

● Seiko Epson Corporation – 14 %

● LG Electronics Inc.

Customers who accounted for

10 % or more of our net revenues during the six months ended June 30, 2023 are as follows:

10 % or more of our net revenues during the nine months ended September 30, 2023 are as follows:

Hewlett-Packard Company – 30%

3 unchanged sentences

Customers who accounted for

10 % or more of our net revenues during the three months ended June 30, 2022 are as follows:

10 % or more of our net revenues during the three months ended September 30, 2022 are as follows:

● Hewlett-Packard Company – 26 %

1 unchanged sentence

● LG Electronics Inc.

● Alpine Electronics, Inc – 11 %

Customers who accounted for

10 % or more of our net revenues during the six months ended June 30, 2022 are as follows:

10 % or more of our net revenues during the nine months ended September 30, 2022 are as follows:

● Hewlett-Packard Company – 28 %

35 unchanged sentences

not offered to customers.

There have been no returns through June 30, 2023.

There have been no returns through September 30, 2023.

Product Sales

22 unchanged sentences

experience, our revenue could be adversely affected.

GAAP, companies may

make reasonable aggregations and approximations of returns data to accurately estimate returns.

GAAP, companies

may make reasonable aggregations and approximations of returns data to accurately estimate returns.

Our TSM and AirBar returns and warranty

2 unchanged sentences

The reserve for future sales returns is recorded as a reduction of our accounts receivable and revenue and was

$ 8,000 as of June 30, 2023 and $ 9,000 as of December 31, 2022.

The warranty reserve is recorded as an accrued expense and cost of sales

and was $ 39,000 as of June 30, 2023 and $ 49,000 as of December 31, 2022.

If the actual future returns were to deviate from the historical

data on which the reserve had been established, our revenue could be adversely affected.

$ 8,000 as of September 30, 2023 and $ 9,000 as of December 31, 2022.

The warranty reserve is recorded as an accrued expense and cost of

sales and was $ 39,000 as of September 30, 2023 and $ 49,000 as of December 31, 2022.

If the actual future returns were to deviate from

the historical data on which the reserve had been established, our revenue could be adversely affected.

Non-Recurring Engineering

25 unchanged sentences

projects are recognized in full as soon as they become evident.

During the three and six months ended June 30, 2023 and 2022, no losses

related to SOW projects were recorded.

During the three and nine months ended September 30, 2023 and 2022, no

losses related to SOW projects were recorded.

The following tables present

the net revenues distribution by geographical area and market for the three and six months ended June 30, 2023 and 2022 (dollars in thousands):

the net revenues distribution by geographical area and market for the three and nine months ended September 30, 2023 and 2022 (dollars

in thousands):

Three months ended

June 30, 2023

September 30, 2023

Three months ended

June 30, 2022

September 30, 2022

Net revenues from consumer electronics

6 unchanged sentences

Net revenues from distributors and other

Six months ended June 30, 2023

Six months ended June 30, 2022

Nine months ended

September 30, 2023

Nine months ended

September 30, 2022

Net revenues from consumer electronics

34 unchanged sentences

The following table presents

accounts receivable and deferred revenues as of June 30, 2023 and December 31, 2022 (in thousands):

accounts receivable and deferred revenues as of September 30, 2023 and December 31, 2022 (in thousands):

September 30,

Accounts receivable and unbilled revenue, net

35 unchanged sentences

the activity related to the product warranty liability (in thousands):

September 30,

Balance at beginning of period

19 unchanged sentences

our deferred revenues by source (in thousands):

September 30,

Deferred revenues license fees

1 unchanged sentence

Deferred revenues non-recurring engineering

During the three and six months

ended June 30, 2023, the Company recognized revenues of approximately $ 9,000 and 14,000 , respectively, related to contract liabilities

outstanding at the beginning of the year.

During the three and nine

months ended September 30, 2023, the Company recognized revenues of approximately $ 4,000 and $ 18,000 , respectively, related to contract

liabilities outstanding at the beginning of the year.

Advertising costs are expensed

Advertising costs for the three and six months ended June 30, 2023 and 2022 amounted to approximately $ 58,000 and $ 112,000

Advertising costs for the three and nine months ended September 30, 2023 and 2022 amounted to approximately $ 49,000 and $ 161,000

and $ 21,000 and $ 105,000 , respectively.

41 unchanged sentences

Based on the uncertainty of

future pre-tax income, we fully reserved our net deferred tax assets as of June 30, 2023 and December 31, 2022.

In the event we were to

determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase

future pre-tax income, we fully reserved our net deferred tax assets as of September 30, 2023 and December 31, 2022.

In the event we were

to determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase

income in the period such determination was made.

5 unchanged sentences

As a result, we did not recognize a liability for unrecognized tax benefits.

As of June 30, 2023 and December

31, 2022, we had no unrecognized tax benefits.

As of September 30, 2023 and

December 31, 2022, we had no unrecognized tax benefits.

Net Loss per Share

Net loss per share amounts

have been computed based on the weighted average number of shares of common stock outstanding during the three and six months ended June

have been computed based on the weighted average number of shares of common stock outstanding during the three and nine months ended September

Net loss per share, assuming dilution amounts from common stock equivalents, is computed based on the weighted-average number

1 unchanged sentence

The weighted-average number of shares

of common stock and potential common stock equivalents used in computing the net loss per share for the three and six months ended June

of common stock and potential common stock equivalents used in computing the net loss per share for the three and nine months ended September

30, 2023 and 2022 exclude the potential common stock equivalents, as the effect would be anti-dilutive (see Note 8).

11 unchanged sentences

exchange rates for the condensed consolidated statements of operations were as follows:

Six months ended

Nine months ended

September 30,

Swedish Krona

3 unchanged sentences

condensed consolidated balance sheets were as follows:

September 30,

Swedish Krona

20 unchanged sentences

Specifically, our estimate of expected credit

losses as of June 30, 2023, using our expected credit loss evaluation process described above, resulted in no adjustments to the provision

for credit losses and no cumulative-effect adjustment to accumulated deficit on the adoption date of the standard.

losses as of September 30, 2023, using our expected credit loss evaluation process described above, resulted in no adjustments to the

provision for credit losses and no cumulative-effect adjustment to accumulated deficit on the adoption date of the standard.

Stockholders’ Equity

20 unchanged sentences

(ii) termination of the Sale Agreement in accordance with its terms.

As of June 30, 2023 and December

31, 2022, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 25,000,000 shares of common stock, par value

$ 0.001 per share.

As of September 30, 2023 and

December 31, 2022, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 25,000,000 shares of common stock,

par value $ 0.001 per share.

On May 20, 2022, we issued

1 unchanged sentence

2020 Stock Incentive Plan (the “2020 Plan”) (see

On September 15, 2022, we repurchased

10,252 shares of common stock from an employee who resigned during the two-year lock up period associated with such shares for $ 12,000 ,

pursuant to the terms of the 2020 Long-Term Incentive Program (“2020 LTIP”).

On September 15, 2022, we

repurchased 10,252 shares of common stock from an employee who resigned during the two-year lock up period associated with such shares

for $ 12,000 , pursuant to the terms of the 2020 Long-Term Incentive Program (“2020 LTIP”).

During the year ended December

2 unchanged sentences

Riley Securities and other expenses of $ 167,000 .

During the six months ended

June 30, 2023, we sold an aggregate of 903,716 shares of our common stock under the ATM Facility with aggregate net proceeds of $ 7,866,000 ,

after payment of commissions to B.

During the three months ended

September 30, 2023, no shares were sold under the ATM Facility.

During the nine months ended September 30, 2023, we sold an aggregate

of 903,716 shares of our common stock under the ATM Facility with aggregate net proceeds of $ 7,866,000 , after payment of commissions to

Riley Securities and other expenses of $ 244,000 .

Preferred Stock

As of June 30, 2023 and December

31, 2022, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 1,000,000 shares of preferred stock, par

value $ 0.001 per share.

As of September 30, 2023 and

December 31, 2022, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 1,000,000 shares of preferred stock,

par value $ 0.001 per share.

There were no transactions

in our preferred stock during the three and six months ended June 30, 2023 and 2022.

No shares of preferred stock were issued and outstanding

as of June 30, 2023 and December 31, 2022.

As of June 30, 2023 and December

31, 2022, the Company had no outstanding warrants to purchase common stock.

in our preferred stock during the three and nine months ended September 30, 2023 and 2022.

No shares of preferred stock were issued and

outstanding as of September 30, 2023 and December 31, 2022.

As of September 30, 2023 and

December 31, 2022, the Company had no outstanding warrants to purchase common stock.

Stock-Based Compensation

22 unchanged sentences

In 2020 we established the

LTIP to provide eligible persons with the opportunity to acquire an equity interest, or otherwise increase their equity interest, in the

Company as an incentive for them to remain in the service of the Company.

Through the 2020 LTIP, eligible employees of Neonode may waive

between 50 % to 67 % of future unearned bonuses that may be awarded to them under the Company’s annual bonus arrangement in exchange

for the grant of shares of the Company’s common stock.

2020 LTIP to provide eligible persons with the opportunity to acquire an equity interest, or otherwise increase their equity interest,

in the Company as an incentive for them to remain in the service of the Company.

Through the 2020 LTIP, eligible employees of Neonode

may waive between 50 % to 67 % of future unearned bonuses that may be awarded to them under the Company’s annual bonus arrangement

in exchange for the grant of shares of the Company’s common stock.

On December 29, 2020, we issued

38 unchanged sentences

for $ 12,000 , pursuant to the terms of the 2020 LTIP.

For the three and six

months ended June 30, 2023 and 2022, we recognized $ 17,000 and $ 35,000 and $ 45,000 and $ 84,000 , respectively, of stock-based

compensation for the amortization of the fair value of stock awards issued under the 2020 LTIP and 2020 Plan over the respective

lock-up periods.

For the three and nine months

ended September 30, 2023 and 2022, we recognized $ 13,000 and $ 48,000 and $ 5,000 and $ 89,000 , respectively, of stock-based compensation

for the amortization of the fair value of stock awards issued under the 2020 LTIP and 2020 Plan over the respective lock-up periods.

A summary of the combined

1 unchanged sentence

Outstanding at January 1, 2023

Outstanding at June 30, 2023

The aggregate intrinsic value

of the 2,500 stock options that are outstanding, vested and expected to vest as of June 30, 2023 was $ 0 .

For the three and six months

ended June 30, 2023 and 2022, we recorded no compensation expense related to the vesting of stock options.

During the three and six months

ended June 30, 2023, we did not grant any options to purchase shares of our common stock to employees or members of our board of directors.

Outstanding at September 30, 2023

As of September 30, 2023 we

had no outstanding options.

For the three and nine months

ended September 30, 2023 and 2022, we recorded no compensation expense related to the vesting of stock options.

During the three and nine

months ended September 30, 2023, we did not grant any options to purchase shares of our common stock to employees or members of our board

of directors.

Stock options granted under

13 unchanged sentences

insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal and we have no liabilities

recorded for these agreements as of June 30, 2023 and December 31, 2022.

recorded for these agreements as of September 30, 2023 and December 31, 2022.

We enter into indemnification

12 unchanged sentences

fair value of these agreements is minimal.

Accordingly, we have no liabilities recorded for these indemnification provisions as of June

Accordingly, we have no liabilities recorded for these indemnification provisions as of September

30, 2023 and December 31, 2022.

9 unchanged sentences

payable by the Company in connection with the original assignment to Aequitas.

On June 8, 2020, Neonode Smartphone LLC, an unrelated third party that

is a subsidiary of Aequitas (“Aequitas Sub"), filed complaints against Apple and Samsung in the Western District of Texas for

infringing two patents.

The case against Apple was subsequently transferred to the Northern District of California.

In December 2022,

the Patent Trial and Appeal Board invalidated one of the two patents, which Aequitas Sub is appealing.

On August 2, 2023, the United States

District Court for the Western District of Texas entered judgment in favor of Samsung.

The case against Apple is still ongoing.

On June 8, 2020, Neonode Smartphone

LLC, an unrelated third party that is a subsidiary of Aequitas (“Aequitas Sub"), filed complaints against Apple and Samsung

in the Western District of Texas for infringing two patents.

The case against Apple was subsequently transferred to the Northern District

of California.

In December 2022, the Patent Trial and Appeal Board invalidated one of the two patents, which Aequitas Sub is appealing.

On August 2, 2023, the United States District Court for the Western District of Texas entered judgment in favor of Samsung.

The case against

Apple is still ongoing.

Non-Recurring Engineering Development Costs

5 unchanged sentences

at the rate of $ 0.25 per ASIC for each of the first 2,000,000 ASICs sold.

As of June 30, 2023, we had made no payments to TI under the

NN1002 Agreement.

As of September 30, 2023, we had made no payments to TI under

the NN1002 Agreement.

Segment Information

4 unchanged sentences

The following table presents

net revenues by geographic area for the three and six months ended June 30, 2023 and 2022, respectively (dollars in thousands):

net revenues by geographic area for the three and nine months ended September 30, 2023 and 2022, respectively (dollars in thousands):

Three months ended

June 30, 2023

September 30, 2023

Three months ended

June 30, 2022

September 30, 2022

United States

Six months ended

June 30, 2023

Six months ended

June 30, 2022

Nine months ended

September 30, 2023

Nine months ended

September 30, 2022

United States

The following table presents

our total assets by geographic region as of June 30, 2023 and December 31, 2022 (in thousands):

our total assets by geographic region as of September 30, 2023 and December 31, 2022 (in thousands):

September 30,

United States

27 unchanged sentences

Three months ended

Six months ended

September 30,

Nine months ended

September 30,

Operating lease cost (1)

3 unchanged sentences

Total finance lease cost

short-term lease costs of $ 110,000 and $ 218,000 and $ 37,000 and $ 81,000 for the three and six months ended June 30, 2023 and 2022, respectively.

(1) Includes short-term lease costs of $ 117,000 and $ 335,000 and $ 30,000 and $ 111,000 for the three and nine months ended September 30, 2023 and 2022, respectively.

Supplemental cash flow information

1 unchanged sentence

Three months ended

Six months ended

September 30,

Nine months ended

September 30,

Cash paid for amounts included in leases:

6 unchanged sentences

information related to leases was as follows (in thousands):

September 30,

Operating leases

10 unchanged sentences

Total finance lease liabilities

September 30,

Weighted Average Remaining Lease Term

4 unchanged sentences

Finance leases

adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019

(2) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019 .

A summary of future minimum

payments under non-cancellable operating lease commitments as of June 30, 2023 is as follows (in thousands):

payments under non-cancellable operating lease commitments as of September 30, 2023 is as follows (in thousands):

Year ending December 31,

4 unchanged sentences

The following is a schedule

of minimum future rentals on the non-cancellable finance leases as of June 30, 2023 (in thousands):

of minimum future rentals on the non-cancellable finance leases as of September 30, 2023 (in thousands):

Year ending December 31,

6 unchanged sentences

Basic net loss per common

share for the three and six months ended June 30, 2023 and 2022 was computed by dividing the net loss attributable to common shareholders

share for the three and nine months ended September 30, 2023 and 2022 was computed by dividing the net loss attributable to common shareholders

of Neonode Inc.

5 unchanged sentences

There were no potentially

dilutive common stock equivalents for the three and six months ended June 30, 2023 and 2022, respectively.

dilutive common stock equivalents for the three and nine months ended September 30, 2023 and 2022, respectively.

Three months ended

Six months ended

September 30,

Nine months ended

September 30,

(in thousands, except per share amounts)

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements