What changed in this filing

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Item 1. Financial Statements

2025-08-13 compared with 2025-05-14 · 128 added, 76 removed, 332 unchanged (38% of the section changed)

30 unchanged sentences

Preferred stock, 1,000,000 shares authorized, with par value of $ 0.001 ;

no shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively.

no shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively.

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

16,782,922 and 16,782,922 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively.

16,782,922 and 16,782,922 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively.

Additional paid-in capital

8 unchanged sentences

Three months ended

Six months ended

Non-recurring engineering

17 unchanged sentences

Basic and diluted loss per share from discontinued operations

Basic and diluted net loss per share (a)

Basic and diluted loss per share (a)

Basic and diluted – weighted average number of common shares outstanding

sum due to rounding.

(a) May not sum due to rounding.

The accompanying notes are an integral part of

4 unchanged sentences

Three months ended

Six months ended

Other comprehensive loss:

7 unchanged sentences

(In thousands)

For the three months ended March 31, 2025 and

For the three and six months ended June 30,

2025 and 2024

Comprehensive

5 unchanged sentences

$ ( 225,813 )

Foreign currency translation adjustment

Balances, June 30, 2025

$ ( 227,681 )

Comprehensive

6 unchanged sentences

$ ( 219,698 )

Stock-based compensation

Foreign currency translation adjustment

Balances, June 30, 2024

$ ( 221,393 )

The accompanying notes are an integral part of

2 unchanged sentences

(In thousands)

Three months ended

Six months ended

Cash flows from operating activities:

1 unchanged sentence

Stock-based compensation expense

Loss on disposal of assets

Depreciation and amortization

1 unchanged sentence

Inventory impairment loss

Recoveries of bad debt

Changes in operating assets and liabilities:

7 unchanged sentences

Purchase of property and equipment

Net cash used in investing activities

Proceeds from sale of property and equipment

Net cash provided by (used in) investing activities

Cash flows from financing activities:

31 unchanged sentences

Recently Issued Accounting Pronouncement

In November 2023, the FASB issued ASU 2023-07, Segment Reporting

In November 2023, the FASB

issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

ASU 2023-07 requires, among other updates,

enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker.

clarifies that entities with a single reportable segment are subject to both new and existing reporting requirements under Topic 280.

We adopted ASU 2023-07 for this interim period ended March 31, 2025 using a retrospective method to all periods presented.

Segment Information for further details.

ASU 2023-07 requires, among other updates, enhanced disclosures about significant segment expenses that are regularly provided to the

chief operating decision maker.

The ASU also clarifies that entities with a single reportable segment are subject to both new and existing

reporting requirements under Topic 280.

We adopted ASU 2023-07 in the interim period ended March 31, 2025 using a retrospective method

to all periods presented.

See Note 6 Segment Information for further details.

Recently Issued Accounting Pronouncements

Pending Adoption

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic

Improvements to Income Tax Disclosures (“ASU 2023-09”), which updates several disclosures regarding the accounting

for income taxes.

ASU 2023-09 will become effective for public business entities for fiscal years beginning after December 15, 2024, with

early adoption permitted.

In December 2023, the FASB

issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023-09”), which updates

several disclosures regarding the accounting for income taxes.

ASU 2023-09 is effective for public business entities for fiscal years

beginning after December 15, 2024.

We are currently evaluating the impact ASU 2023-09 will have on our consolidated financial statements.

18 unchanged sentences

comprehensive income (loss).

Foreign currency translation losses were $( 134,000 ) and $( 34,000 ) during the three months ended March 31,

2025 and 2024, respectively.

Gains resulting from foreign currency transactions are included in general and administrative expenses in

the accompanying condensed consolidated statements of operations and were $ 80,000 and $ 5,000 during the three months ended March 31, 2025

and 2024, respectively.

Foreign currency translation losses were $( 55 ,000) and $( 189 ,000) and $( 32 ,000) and $( 66 ,000) during the

three and six months ended June 30, 2025 and 2024, respectively.

Gains resulting from foreign currency transactions are included in general

and administrative expenses in the accompanying condensed consolidated statements of operations and were $( 12,000 ) and $ 68,000 and $( 3,000 )

and $ 2,000 during the three and six months ended June 30, 2025 and 2024, respectively.

We have incurred significant

1 unchanged sentence

The Company incurred net losses for combined continuing

and discontinued operations of approximately $ 1.7 million and $ 2.1 million for the three months ended March 31, 2025 and 2024, respectively

and had an accumulated deficit of approximately $ 225.8 million and $ 224.1 million as of March 31, 2025 and December 31, 2024, respectively.

In addition, operating activities used cash of approximately $ 1.4 million and $ 1.9 million for the three months ended March 31, 2025 and

2024, respectively.

and discontinued operations of approximately $ 1.9 million and $ 3.6 million and $ 1.7 million and $ 3.8 million for the three and six months

ended June 30, 2025 and 2024, respectively and had an accumulated deficit of approximately $ 227.7 million and $ 224.1 million as of June

30, 2025 and December 31, 2024, respectively.

In addition, operating activities used cash of approximately $ 3.1 million and $ 3.1 million

for the six months ended June 30, 2025 and 2024, respectively.

The condensed consolidated

7 unchanged sentences

in the United States, Europe and Asia.

As of March 31, 2025, four

of our customers represented approximately 94.0 % of our consolidated accounts receivable and unbilled revenues.

As of June 30, 2025, three of our customers represented approximately

95.0 % of our consolidated accounts receivable and unbilled revenues.

As of December 31, 2024, four

1 unchanged sentence

Customers who accounted for

10.0% or more of our net revenues during the three months ended March 31, 2025 are as follows:

10.0% or more of our net revenues during the three months ended June 30, 2025 are as follows:

● Commercial Vehicle OEM – 34.1 %

● Seiko Epson – 23.8 %

● Hewlett-Packard Company– 19.1 %

● Alps Alpine – 17.5 %

Customers who accounted for

10.0% or more of our net revenues during the six months ended June 30, 2025 are as follows:

● Seiko Epson – 30.8 %

● Alps Alpine – 22.3 %

● Commercial Vehicle OEM – 21.3 %

● Hewlett-Packard Company – 19.3 %

Customers who accounted for

10.0% or more of our net revenues during the three months ended March 31, 2024 are as follows:

10.0% or more of our net revenues during the three months ended June 30, 2024 are as follows:

● Seiko Epson – 25.3 %

● Commercial Vehicle OEM – 24.8 %

● Alps Alpine – 23.2 %

● Hewlett-Packard Company – 16.8 %

Customers who accounted for

10.0% or more of our net revenues during the six months ended June 30, 2024 are as follows:

● Hewlett-Packard Company – 23.9 %

● Alps Alpine – 23.0 %

● Seiko Epson – 22.5 %

● Commercial Vehicle OEM – 13.8 %

The following tables present

the net revenues distribution by geographical area and market:

Three months ended March 31,

Three months ended June 30,

(in thousands)

7 unchanged sentences

Net revenues from IT & Industrial

Six months ended June 30,

(in thousands)

North America

Net revenues from Automotive

Net revenues from IT & Industrial

Net revenues from Automotive

Net revenues from IT & Industrial

Europe, Middle East and Africa

Net revenues from Automotive

Net revenues from IT & Industrial

Contract Liabilities

3 unchanged sentences

Deferred revenues license fees

During the three months ended

March 31, 2025 and 2024, the Company recognized revenues of approximately zero and $ 27,000 respectively, related to contract liabilities

outstanding at the beginning of the period.

Deferred revenues non-recurring engineering

During the three and six months

ended June 30, 2025 and 2024, the Company recognized revenues of approximately $ 25,000 and $ 0 and $ 25,000 and $ 2,000 respectively, related

to contract liabilities outstanding at the beginning of the period.

We recognize deferred tax

10 unchanged sentences

Based on the uncertainty of

future pre-tax income, we fully reserved our net deferred tax assets as of March 31, 2025 and December 31, 2024.

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 June 30, 2025 and December 31, 2024.

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 March 31, 2025 and December

As of June 30, 2025 and December

31, 2024, we had no unrecognized tax benefits.

11 unchanged sentences

As a result, this business has been reclassified to

discontinued operations in these consolidated financial statements for all periods presented.

discontinued operations in these condensed consolidated financial statements for all periods presented.

Assets and Liabilities of Discontinued Operations

1 unchanged sentence

discontinued operations are presented separately in the condensed consolidated balance sheets for all periods presented.

On June 30, 2025

and December 31, 2024, these balances consisted of assets and liabilities of the Company’s Products business.

10 unchanged sentences

Discontinued operations for

the three months ended March 31, 2025 and 2024, respectively, consists of results from the Company’s products business.

The following table provides details about the major classes of line

items constituting “Income (loss) from discontinued operations” as presented on the Company’s condensed consolidated

statements of operations:

the three and six months ended June 30, 2025 and 2024, respectively, consists of results from the Company’s products business.

The following table provides

details about the major classes of line items constituting “Income (loss) from discontinued operations” as presented on the

Company’s condensed consolidated statements of operations:

Three months ended

Six months ended

(in thousands)

4 unchanged sentences

Operating expenses:

Sales and marketing

General and administrative

5 unchanged sentences

cash flow information for discontinued operations:

Three months ended

Six months ended

(in thousands)

4 unchanged sentences

At-the-Market Facility

May 10, 2021, we entered into an At Market Issuance Sales Agreement (the “B.

On May 10, 2021, we entered into an At Market Issuance Sales Agreement

Riley Sales Agreement”) with B.

Riley Securities,

Riley Securities”) with respect to an “at the market” offering program (the “B.

Riley ATM Facility”),

under which we may, from time to time, in our sole discretion, issue and sell through B.

Riley Securities, acting as sales agent, up to

$ 25 million of shares of our common stock, in any method permitted that is deemed an “at the market” offering as defined in

Rule 415 under the Securities Act of 1933, as amended.

Riley Securities, Inc.

Riley Securities”) with respect to an “at

the market” offering program (the “B.

Riley ATM Facility”), under which we may, from time to time, in our sole discretion,

issue and sell through B.

Riley Securities, acting as sales agent, up to $ 25 million of shares of our common stock, in any method permitted

that is deemed an “at the market” offering as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities

On May 29, 2024, we terminated the B.

5 unchanged sentences

$ 10 million of shares of our common stock.

to the Ladenburg Sales Agreement, we may sell the shares through Ladenburg by any method permitted that is deemed an “at the market”

offering as defined in Rule 415 under the Securities Act of 1933, as amended.

Ladenburg will use commercially reasonable efforts consistent

with its normal trading and sales practices to sell the shares from time to time, based upon instructions from us (including any price

or size limits or other customary parameters or conditions we may impose).

We will pay Ladenburg a commission of 3.0 % of the gross sales

price per share sold under the Ladenburg Sales Agreement.

Pursuant to the Ladenburg Sales Agreement, we may sell the shares through

Ladenburg by any method permitted that is deemed an “at the market” offering as defined in Rule 415 under the Securities Act.

Ladenburg will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the shares from time

to time, based upon instructions from us (including any price or size limits or other customary parameters or conditions we may impose).

We will pay Ladenburg a commission of 3.0 % of the gross sales price per share sold under the Ladenburg Sales Agreement.

are not obligated to sell any shares under the Ladenburg Sales Agreement.

8 unchanged sentences

Net Loss per Share

Basic net loss per common share for the three months ended March 31,

2025 and 2024 was computed by dividing the net loss attributable to common shareholders of Neonode Inc.

for the relevant period by the

weighted average number of shares of common stock outstanding.

Diluted loss per common share is computed by dividing net loss attributable

to common shareholders of Neonode Inc.

for the relevant period by the weighted average number of shares of common stock and common stock

equivalents outstanding excluding potential common stock equivalents that are anti-dilutive.

The Company had no potential common stock equivalents for the three

months ended March 31, 2025 and 2024, respectively.

Basic net loss per share of

common stock for the three and six months ended June 30, 2025 and 2024 was computed by dividing the net loss attributable to common stockholders

of the Company for the relevant period by the weighted average number of shares of common stock outstanding.

Diluted loss per share of

common stock is computed by dividing net loss attributable to common stockholders of the Company for the relevant period by the weighted

average number of shares of common stock and common stock equivalents outstanding excluding potential common stock equivalents that are

anti-dilutive.

The Company had no potential

common stock equivalents for the three and six months ended June 30, 2025 and 2024, respectively.

Three months ended

Six months ended

(in thousands, except per share amounts)

BASIC AND DILUTED

Weighted average number of common shares outstanding

Weighted average number of shares of common stock outstanding

Loss from continuing operations

3 unchanged sentences

Net loss per share - basic and diluted (a)

sum due to rounding.

(a) May not sum due to rounding.

Segment Information

9 unchanged sentences

Three months ended

Six months ended June 30,

(in thousands)

18 unchanged sentences

The following table presents net revenues by country :

Three months ended March 31,

Three months ended June 30,

(in thousands)

United States

Six months ended June 30,

(in thousands)

United States

Subsequent Events

No other subsequent events

have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes thereto other

than as discussed elsewhere in the accompanying notes.

On July 4, 2025, new U.S tax

legislation was signed into law (known as the "One Big Beautiful Bill Act" or the "OBBB Act") which makes permanent

many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025.

the OBBB Act makes changes to certain U.S.

corporate tax provisions, but many are generally not effective until 2026.

The Company is currently

evaluating the impact of the new legislation but does not expect it to have a material impact on the results of operations.

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