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Item 8. Financial Statements and Supplementary Data

2026-03-18 compared with 2025-03-21 · 531 added, 700 removed, 158 unchanged (89% of the section changed)

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to the Consolidated Financial Statements Page

Report of Crowe LLP, Independent Registered Public Accounting Firm (PCAOB ID:

Report of KMJ Corbin & Company LLP, Independent Registered Public Accounting Firm (PCAOB ID:

Consolidated Balance Sheets as of December 31, 2024 and 2023 F-4

Consolidated Statements of Operations for the years ended December 31, 2024 and 2023 F-5

Consolidated Statements of Comprehensive Loss for the years ended December 31, 2024 and 2023 F-6

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2024 and 2023 F-7

Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023 F-8

Notes to the Consolidated Financial Statements F-9

REPORT OF CROWE LLP, INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

Shareholders and the Board of Directors of Neonode

Index to the Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID:

Consolidated Balance Sheets as of December 31, 2025 and 2024

Consolidated Statements of Operations for the years ended December 31, 2025 and 2024

Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025 and 2024

Consolidated Statements of Stockholders ’ Equity for the years ended December 31, 2025 and 2024

Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024

Notes to the Consolidated Financial Statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and the Board of Directors of Neonode Inc.

Opinion on the Financial Statements

We have audited the accompanying

consolidated balance sheet of Neonode Inc.

(the "Company") as of December 31, 2024, the related consolidated statements of operations,

comprehensive loss, stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively referred to

as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial

position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year then ended, in conformity

with accounting principles generally accepted in the United States of America.

We have audited the accompanying consolidated balance sheets of Neonode Inc.

(the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements

are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company's financial statements

based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")

and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable

rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in

accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance

about whether the financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to

have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audit we are required

to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness

of the Company's internal control over financial reporting.

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company's financial statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.

Accordingly, we express no such opinion.

Our audit included performing

procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures

that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the

financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management,

as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are

matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the

audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially

challenging, subjective, or complex judgments.

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

We determined that there are no critical audit matters.

/s/ Crowe LLP

We have served as the Company’s auditor

We have served as the Company’s auditor since 2024.

New York, New York

March 18, 2026

REPORT OF KMJ CORBIN & COMPANY LLP, INDEPENDENT

REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

Opinion on the Consolidated Financial Statements

We have audited the accompanying

consolidated balance sheet of Neonode Inc.

(a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2023,

the related consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the year then ended,

and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated

financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the

results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the

United States of America.

Emphasis of a Matter - Discontinued Operations

As discussed in Note 2 to

the consolidated financial statements, the Company concluded that the termination of manufacturing touch sensor modules in 2024 met the

criteria for discontinued operations of its products business in accordance with Accounting Standards Codification (“ASC”)

205-20, Presentation of Financial Statements—Discontinued Operations .

The financial statements for 2023 have been retrospectively

adjusted to reflect the impact of this classification.

Our opinion is not modified with respect to this matter.

Basis for Opinion

These consolidated financial

statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on these consolidated

financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board

(United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S.

securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in

accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance

about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

The Company is not

required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audit we are

required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the

effectiveness of the Company’s internal control over financial reporting.

Accordingly, we express no such opinion.

Our audit included performing

procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing

procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures

in the consolidated financial statements.

Our audit also included evaluating the accounting principles used and significant estimates

made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that our audit

provides a reasonable basis for our opinion.

/s/ KMJ Corbin & Company LLP

We served as the Company’s auditor from

2009 to 2024.

Glendora, California

February 28, 2024 (except for Notes 2, 10 and 11, as to which the date

is March 21, 2025)

BALANCE SHEETS

thousands, except share and per share amounts)

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

December 31, 2025

December 31, 2024

Current assets:

Cash and cash equivalents

$ 25,358 $ 16,427

Accounts receivable and unbilled revenues, net

Contract assets

Contract asset

Prepaid expenses and other current assets

1 unchanged sentence

Total current assets

26,285 17,685

Non-current assets:

1 unchanged sentence

Operating lease right-of-use assets, net

Non-current assets of discontinued operations

Total non-current assets

$ 26,885 $ 18,381

LIABILITIES AND STOCKHOLDERS’ EQUITY

6 unchanged sentences

Current portion of operating lease obligations

Current liabilities of discontinued operations

Total current liabilities

2 unchanged sentences

Operating lease obligations, net of current portion

Non-current liabilities of discontinued operations

Total non-current liabilities

3 unchanged sentences

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

no shares issued and outstanding at December 31, 2024 and 2023, respectively

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

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

16,782,922 and 15,359,481 shares issued and outstanding at December 31, 2024 and 2023, respectively

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

Additional paid-in capital

240,955 240,955

Accumulated other comprehensive loss

( 696 ) ( 450 )

Accumulated deficit

( 215,587 ) ( 224,080 )

Total stockholders’ equity

24,689 16,442

Total liabilities and stockholders’ equity

accompanying notes are an integral part of these consolidated financial statements.

STATEMENTS OF OPERATIONS

thousands, except per share amounts )

ended December 31,

Non-recurring

Cost of revenues:

Non-recurring

$ 26,885 $ 18,381

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF OPERATIONS

( In thousands, except per share amounts )

Years ended December 31,

$ 1,822 $ 2,687

Non-recurring engineering

Total revenues

Cost of revenues:

Non-recurring engineering

Total cost of revenues

Operating expenses:

1 unchanged sentence

Sales and marketing

and administrative

operating expenses

Operating loss

General and administrative

Total operating expenses

Gain from patent assignment

Broker fee from patent assignment

Operating income (loss)

7,371 ( 6,547 )

Other income, net

Loss before provision for income taxes

Provision for income

Loss from continuing operations

Loss from discontinued

Loss per common share:

Basic and diluted loss per share from continuing

Basic and diluted loss

per share from discontinued operations

Basic and diluted net

loss per share

Basic and diluted –

weighted average number of common shares outstanding

accompanying notes are an integral part of these consolidated financial statements.

STATEMENTS OF COMPREHENSIVE LOSS

ended December 31,

Other comprehensive loss:

currency translation adjustments

Income (loss) before provision (benefit) for income taxes

8,028 ( 5,860 )

Provision (benefit) for income taxes

Income (loss) from continuing operations

8,037 ( 5,875 )

Income (loss) from discontinued operations

Net income (loss)

$ 8,493 $ ( 6,466 )

Income (loss) per common share:

Basic and diluted income (loss) per share from continuing operations

$ 0.48 $ ( 0.37 )

Basic and diluted income (loss) per share from discontinued operations

0.03 ( 0.04 )

Basic and diluted net income (loss) per share

$ 0.51 $ ( 0.41 )

Basic and diluted – weighted average number of common shares outstanding

16,783 15,873

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

( In thousands )

Years ended December 31,

Net income (loss)

$ 8,493 $ ( 6,466 )

Other comprehensive loss:

Comprehensive loss

accompanying notes are an integral part of these consolidated financial statements.

STATEMENTS OF STOCKHOLDERS’ EQUITY

Comprehensive

Stockholders’

Foreign currency translation adjustments

( 246 ) ( 54 )

Total other comprehensive loss

( 246 ) ( 54 )

Comprehensive income (loss)

$ 8,247 $ ( 6,520 )

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY

( In thousands )

Common Stock Shares Issued

Common Stock Amount

Additional Paid-in Capital

Accumulated Other Comprehensive Income (Loss)

Accumulated Deficit

Total Stockholders' Equity

Balances, January 1, 2024

15,359 $ 15 $ 235,158 $ ( 396 ) $ ( 217,614 ) $ 17,163

of shares for cash, net of offering costs

currency translation adjustment

Issuance of shares for cash, net of offering costs

1,424 2 5,794 - - 5,796

Stock-based compensation

Foreign currency translation adjustment

- - - ( 54 ) - ( 54 )

- - - - ( 6,466 ) ( 6,466 )

Balances, December 31, 2024

16,783 $ 17 $ 240,955 $ ( 450 ) $ ( 224,080 ) $ 16,442

of shares for cash, net of offering costs

currency translation adjustment

December 31, 2024

Foreign currency translation adjustment

- - - ( 246 ) - ( 246 )

accompanying notes are an integral part of these consolidated financial statements.

STATEMENTS OF CASH FLOWS

ended December 31,

- - - - 8,493 8,493

Balances, December 31, 2025

16,783 $ 17 $ 240,955 $ ( 696 ) $ ( 215,587 ) $ 24,689

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

( In thousands )

Years ended December 31,

Cash flows from operating activities:

Adjustments to reconcile

net loss to net cash used in operating activities:

Stock-based compensation

Net income (loss)

$ 8,493 $ ( 6,466 )

Adjustments to reconcile net loss to net cash used in operating activities:

Stock-based compensation expense

Bad debt expense

Recoveries of bad debt

Gain from patent assignment

Loss on disposal of assets

Depreciation and amortization

Amortization of operating

lease right-of-use assets

Inventory impairment

Changes in operating assets

and liabilities:

Accounts receivable, unbilled revenue and contract assets

Prepaid expenses and

other current assets

Accounts payable, accrued

payroll and employee benefits, and accrued expenses

Amortization of operating lease right-of-use assets

Inventory impairment loss

Changes in operating assets and liabilities:

Accounts receivable and unbilled revenues

Prepaid expenses and other current assets

Accounts payable, accrued payroll and employee benefits, and accrued expenses

Contract liabilities

lease obligations

Net cash used in operating

Operating lease obligations

( 288 ) ( 144 )

Net cash used in operating activities

( 10,254 ) ( 5,592 )

Cash flows from investing activities:

Purchase of property and

from sale of property and equipment

Net cash provided by

(used in) investing activities

Cash flow from financing activities:

Proceeds from issuance of

common stock, net of offering costs

payments on finance lease obligations

cash provided by financing activities

Effect of exchange rate

changes on cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents

at beginning of year

Cash and cash equivalents

at end of year

Supplemental disclosure

of cash flow information:

paid for interest

paid for income taxes

Supplemental disclosure

of non-cash investing and financial activities:

asset obtained in exchange for operating lease obligations

accompanying notes are an integral part of these consolidated financial statements.

to the Consolidated Financial Statements

Organization and Summary of Significant

Accounting Policies

of Presentation and Preparation

consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States

of America (“U.S.

Purchase of property and equipment

( 91 ) ( 37 )

Proceeds from patent assignment

Proceeds from sale of property and equipment

Net cash provided by investing activities

Cash flows from financing activities:

Proceeds from issuance of common stock, net of offering costs

Principal payments on finance lease obligations

( 11 ) ( 17 )

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

( 102 ) ( 67 )

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of period

16,427 16,155

Cash and cash equivalents at end of period

$ 25,358 $ 16,427

Supplemental disclosure of cash flow information:

Cash paid for interest

Cash paid (received) for income taxes

Supplemental disclosure of non-cash activities:

Property and equipment obtained in exchange for finance lease obligations

Right-of-use asset obtained in exchange for lease obligations

The accompanying notes are an integral part of these consolidated financial statements.

Notes to the Consolidated Financial Statements

Organization and Summary of Significant Accounting Policies

Basis of Presentation and Preparation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

GAAP”) and include the accounts of Neonode Inc.

and its wholly owned subsidiaries.

All inter-company accounts

and transactions have been eliminated in consolidation.

preparation of financial statements in conformity with U.S.

GAAP requires making estimates and judgments that affect, at the date of

the financial statements, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported

amounts of revenue and expenses.

All inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S.

GAAP requires making estimates and judgments that affect, at the date of the financial statements, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses.

Significant estimates and judgments include, but are not limited to:

for revenue recognition, determining

the nature and timing of satisfaction of performance obligations, the standalone selling price of performance obligations, and transaction

prices and assessing transfer of control;

for revenue recognition, determining the nature and timing of satisfaction of performance obligations, the standalone selling price of performance obligations, and transaction prices and assessing transfer of control;

provisions for uncollectible receivables;

for leases, determining whether a contract contains

a lease, allocating consideration between lease and non-lease components, determining incremental borrowing rates, and identifying reassessment

events, such as modifications;

for leases, determining whether a contract contains a lease, allocating consideration between lease and non-lease components, determining incremental borrowing rates, and identifying reassessment events, such as modifications;

the valuation allowance related to our deferred tax assets;

and the fair value of options issued for stock-based

compensation.

and the fair value of options issued for stock-based compensation.

Actual results could differ from these estimates and judgments.

Issued Accounting Pronouncement Adopted

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.

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 for the annual period ended December 31, 2024 using a retrospective method

to all periods presented.

See Note 12 Segment Information in the accompanying notes to the consolidated financial statements for further

Recently Issued Accounting Pronouncements

Pending Adoption

In December 2023, the FASB

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

Improvements to Income Tax Disclosures , 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.

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

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting

Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses , requiring

public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim

and annual basis.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after

December 15, 2027, with early adoption permitted.

Recently Issued Accounting Pronouncement Adopted

In December 2023, the Financial Accounting Standards Board ("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, with early adoption permitted.

We have adopted ASU 2023 - 09 for the fiscal year ended December 31, 2025, using a prospective approach.

Prior period disclosures have not been adjusted to reflect the new disclosure requirements.

The adoption did not have a material impact on our consolidated financial statements.

See Note 11 Income Taxes in the accompanying notes to the consolidated financial statements for further detail.

Recently Issued Accounting Pronouncements Pending Adoption

In December 2025, the FASB issued ASU 2025 - 12, Codification Improvements ("ASU 2025 - 12" ).

ASU 2025 - 12 makes incremental improvements to the Accounting Standards Codification and U.S.

This guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within those annual periods.

Early adoption is permitted.

We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025 - 11, Interim Reporting (Topic 270 ):

Narrow-Scope Improvements (“ASU 2025 - 11” ).

The amendments clarify and reorganize existing interim reporting guidance, including the scope of Topic 270 and interim disclosure requirements, and introduce a disclosure principle requiring entities to disclose material events or changes occurring since the most recent annual reporting period.

ASU 2025 - 11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025 - 06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 - 40 ):

Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025 - 06” ), which aims to modernize financial reporting by updating how entities recognize and disclose costs incurred for software developed for internal use.

ASU 2025 - 06 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years.

Early adoption is permitted.

We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

In July 2025, the FASB issued ASU 2025 - 05, Financial Instruments – Credit Losses (Topic 326 ):

Measurement of Credit Losses for Accounts Receivable and Contract Assets ("ASU 2025 - 05" ), which amends ASC 326 - 20 to provide a practical expedient for all entities when estimating expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606.

The practical expedient assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset.

ASU 2025 - 05 is effective for fiscal years beginning after December 15, 2025 and interim periods within those fiscal years, with early adoption permitted, and should be applied on a prospective basis.

We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024 - 03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220 - 40 ):

Disaggregation of Income Statement Expenses , requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis.

ASU 2024 - 03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted.

We are currently evaluating the impact of adopting ASU 2024 - 03.

Foreign Currency Translation and Transaction

Gains and Losses

The functional currency of

our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen and the South Korean Won.

The translation

from Swedish Krona, Japanese Yen or South Korean Won to U.S.

Dollars is performed for balance sheet accounts using current exchange rates

in effect at the balance sheet date and for income statement accounts using a weighted-average exchange rate during the period.

or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss).

currency translation gains (losses) were $( 54,000 ) and $( 56,000 ) during the years ended December 31, 2024 and 2023, respectively.

or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated

statements of operations and were $( 1,000 ) and $( 5,000 ) during the years ended December 31, 2024 and 2023, respectively.

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

The Company incurred net losses

for combined continuing and discontinued operations of approximately $ 6.5 million and $ 10.1 million for the years ended December 31,

2024 and 2023, respectively, and had an accumulated deficit of approximately $ 224.1 million and $ 217.6 million as of December 31, 2024

and 2023, respectively.

In addition, operating activities used cash of approximately $ 5.6 million and $ 6.3 million for the years ended

December 31, 2024 and 2023, respectively.

The consolidated financial statements have been prepared on a going

concern basis, which contemplates continuity of operations and the realization of assets and the repayment of liabilities in the ordinary

course of business.

has prepared an operating plan and believes that the Company has sufficient cash to meet its obligations as they come due for a year

from the date the consolidated financial statements were issued.

During the year ended December 31, 2024, we sold an aggregate of 1,423,441

shares of our common stock under the ATM Facility with aggregate net proceeds to us of $ 5.8 million, after payment of commissions to

Ladenburg and other expenses of $ 0.2 million.

Receivable and Credit Losses

receivable is stated at net realizable value.

We estimate and record a provision for expected credit losses related to our financial

instruments, including our trade receivables.

We consider historical collection rates, the current financial status of our customers,

macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses.

Forward-looking information

is also considered in the evaluation of current expected credit losses.

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.

specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers

that have a higher probability of default.

accounts receivable balance on our consolidated balance sheet as of December 31, 2024 was $ 0.8 million, and did not include any

The accounts receivable balance on our consolidated balance sheet as of December 31, 2023 was $ 0.7 million, and

did not include any allowances.

Concentration

of Credit and Business Risks

customers are primarily located in North America, Europe and Asia.

of December 31, 2024, four of our customers represented approximately 80.9 % of our consolidated accounts receivable and unbilled revenues.

of December 31, 2023, three of our customers represented approximately 77.8 % of our consolidated accounts receivable and unbilled revenues.

who accounted for 10% or more of our revenues during the year ended December 31, 2024 are as follows.

Foreign Currency Translation and Transaction Gains and Losses

The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen and the South Korean Won.

The translation from Swedish Krona, Japanese Yen or South Korean Won to U.S.

Dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted-average exchange rate during the period.

Gains or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss).

Foreign currency translation gains (losses) were $( 246,000 ) and $( 54,000 ) during the years ended December 31, 2025 and 2024 , respectively.

Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $ 67,000 and $( 1,000 ) during the years ended December 31, 2025 and 2024 , respectively.

We have incurred significant operating losses and negative cash flows from operations since our inception.

The Company incurred net income for combined continuing and discontinued operations of approximately $ 8.5 million for the year ended December 31, 2025 and net loss of approximately $ 6.5 million for the year ended December 31, 2024 , and had an accumulated deficit of approximately $ 215.6 million and $ 224.1 million as of December 31, 2025 and 2024 , respectively.

In addition, operating activities used cash of approximately $ 10.3 million and $ 5.6 million for the years ended December 31, 2025 and 2024 , respectively.

The consolidated financial statements have been prepared on a going concern basis, which contemplates continuity of operations and the realization of assets and the repayment of liabilities in the ordinary course of business.

Management has prepared an operating plan and believes that the Company has sufficient cash to meet its obligations as they come due for a year from the date the consolidated financial statements were issued.

Accounts Receivable and Credit Losses

Accounts receivable is stated at net realizable value.

We estimate and record a provision for expected credit losses related to our financial instruments, including our trade receivables.

We consider historical collection rates, the current financial status of our customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses.

Forward-looking information is also considered in the evaluation of current expected credit losses.

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 default.

The accounts receivable balance on our consolidated balance sheet as of December 31, 2025 was $ 0.4 million, and did not include any allowances.

The accounts receivable balance on our consolidated balance sheet as of December 31, 2024 was $ 0.7 million, and did not include any allowances.

Concentration of Credit and Business Risks

Our customers are primarily located in North America, Europe and Asia.

As of December 31, 2025 , four of our customers represented approximately 95.4 % of our consolidated accounts receivable and unbilled revenues.

As of December 31, 2024 , four of our customers represented approximately 80.9 % of our consolidated accounts receivable and unbilled revenues.

Customers who accounted for 10% or more of our revenues during the year ended December 31, 2025 are as follows.

Seiko Epson – 34.3 %

● Alpine Electronics – 20.7 %

● Hewlett-Packard Company – 20.4 %

Alps Alpine – 19.4 %

Hewlett-Packard – 19.0 %

Commercial Vehicle OEM – 14.6 %

who accounted for 10% or more of our revenues during the year ended December 31, 2023 are as follows.

● Hewlett-Packard Company – 33.3 %

Customers who accounted for 10% or more of our revenues during the year ended December 31, 2024 are as follows.

Seiko Epson – 27.3 %

● Alpine Electronics – 18.2 %

● LG Electronics – 13.1 %

and Cash Equivalents

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

and Equipment

and equipment are stated at cost less accumulated depreciation and include estimated useful lives.

Depreciation on property, plant and

equipment is recognized on a straight-line basis.

and Development

and development (“R&D”) costs are expensed as incurred.

R&D costs consist primarily of personnel related costs in

addition to external consultancy costs such as testing, certifying and measurements.

Compensation Expense

measure the cost of employee services received in exchange for an award of equity instruments, including share options, based on the

estimated fair value of the award on the grant date, and recognize the value as compensation expense over the period the employee is

required to provide services in exchange for the award, usually the vesting period.

account for equity instruments issued to non-employees at their estimated fair value.

determining stock-based compensation expense involving options and warrants, we determine the estimated fair value of options and warrants

using the Black-Scholes option pricing model.

recognize deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the consolidated

financial statements or tax returns.

Alps Alpine – 20.7 %

Hewlett-Packard – 20.4 %

Commercial Vehicle OEM – 11.8 %

Cash and Cash Equivalents

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

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation.

Depreciation on property and equipment is recognized on a straight-line basis.

Research and Development

Research and development (“R&D”) costs are expensed as incurred.

R&D costs consist primarily of personnel related costs in addition to external consultancy costs such as testing, certifying and measurements.

We recognize deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the consolidated financial statements or tax returns.

We estimate income taxes based on rates in effect in each of the jurisdictions in which we operate.

Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases

of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

The realization

of deferred tax assets is based on historical tax positions and expectations about future taxable income.

Valuation allowances are recorded

against net deferred tax assets when, in our opinion, realization is uncertain based on the “more likely than not” criteria

of the accounting guidance.

on the uncertainty of future pre-tax income, we fully reserved our net deferred tax assets as of December 31, 2024 and 2023.

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.

The provision for income taxes represents the net change in deferred

tax amounts, plus income taxes paid or payable for the current period.

GAAP related to accounting for uncertainty in income taxes, which prescribes a model for the recognition, measurement

and presentation of uncertainty in income taxes.

Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

The realization of deferred tax assets is based on historical tax positions and expectations about future taxable income.

Valuation allowances are recorded against net deferred tax assets when, in our opinion, realization is uncertain based on the “more likely than not” criteria of the accounting guidance.

Based on the uncertainty of future pre-tax income, we fully reserved our net deferred tax assets as of December 31, 2025 and 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.

The provision (benefit) for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period.

We follow U.S.

GAAP related to accounting for uncertainty in income taxes, which prescribes a model for the recognition, measurement and presentation of uncertainty in income taxes.

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

December 31, 2024 and 2023, we had no unrecognized tax benefits.

Value of Financial Instruments

We disclose the estimated

fair values for all financial instruments for which it is practicable to estimate fair value.

The carrying value of financial instruments

including cash and cash equivalents, accounts receivable and accounts payable are deemed to approximate fair value due to their short

Accounting guidance defines

fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements.

three levels of the fair value hierarchy are described as follows:

As of December 31, 2025 and 2024 , we had no unrecognized tax benefits.

Fair Value of Financial Instruments

We disclose the estimated fair values for all financial instruments for which it is practicable to estimate fair value.

The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable are deemed to approximate fair value due to their short maturities.

Accounting guidance defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements.

The three levels of the fair value hierarchy are described as follows:

Applies to assets or liabilities for which there are observable quoted prices in active markets for identical assets and liabilities.

Applies to assets

or liabilities for which there are inputs other than quoted prices included in Level 1 that are directly or indirectly observable.

Applies to assets or liabilities for which inputs are unobservable, and those inputs that are significant to the measurement of the

fair value of the assets or liabilities.

were no assets or liabilities recorded at fair value on a recurring basis in 2024 and 2023.

earn revenues from licensing of our intellectual property, licensing of our software and by performing engineering services.

of revenue recognition and the amount of revenue actually recognized in each case depends upon a variety of factors, including the specific

terms of each arrangement and the nature of our performance obligations.

earn revenue from licensing our internally developed intellectual property (“IP”) and licensing of our internally developed

We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components in their

products, with terms and conditions that vary by licensee.

Fees under these agreements may include technology access fees payable upfront

and royalties payable to us following the distribution by our licensees of products incorporating the licensed technology.

for our IP has standalone value and can be used by the licensee without maintenance and support.

For technology license arrangements that do not require significant

modification or customization of the underlying technology, we recognize technology license revenue when the license is made available

to the customer and the customer has a right to use that license.

We recognize royalties following the distribution by our licensees of

products incorporating the licensed technology.

At the end of each reporting period, we record unbilled license fees, using prior royalty

revenue data by customer to make estimates of those royalties.

also earn license fee revenue by providing our customers with development licenses for our software tools related to the

MultiSensing platform.

We recognize revenue ratably over the contract term beginning on the commencement date of each contract,

which is the date we make the software available to our customers.

Our development license contracts with customers typically

include a fixed amount of consideration and are generally non-cancellable and without any refund-type provisions.

invoice our customers annually in advance for our development licenses upon execution of the initial contract or subsequent

Non-Recurring

For technology license that

require modification or customization of the underlying technology to adapt the technology to customer use, we determine whether the

technology license, and required engineering consulting services represent separate performance obligations.

We perform our analysis

on a contract-by-contract basis.

If there are separate performance obligations, we determine the standalone selling price (“SSP”)

of each separate performance obligation to properly recognize revenue as each performance obligation is satisfied.

We provide engineering

consulting services to our customers under a signed Statement of Work (“SOW”).

Deliverables and payment terms are specified

Applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are directly or indirectly observable.

Applies to assets or liabilities for which inputs are unobservable, and those inputs that are significant to the measurement of the fair value of the assets or liabilities.

There were no assets or liabilities recorded at fair value on a recurring basis for the years ended December 31, 2025 and 2024 .

We earn revenues from licensing of our intellectual property, licensing of our software and by performing engineering services.

The timing of revenue recognition and the amount of revenue actually recognized in each case depends upon a variety of factors, including the specific terms of each arrangement and the nature of our performance obligations.

We earn revenue from licensing our internally developed intellectual property (“IP”) and licensing of our internally developed software.

We enter into IP licensing agreements that generally provide licensees with the right to incorporate our IP components in their products, with terms and conditions that vary by licensee.

Fees under these agreements may include technology access fees payable upfront and royalties payable to us following the distribution by our licensees of products incorporating the licensed technology.

The license for our IP has standalone value and can be used by the licensee without maintenance and support.

For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when the license is made available to the customer, and the customer has a right to use that license.

We recognize royalties following the distribution by our licensees of products incorporating the licensed technology.

At the end of each reporting period, we record unbilled license fees, using prior royalty revenue data by customer to make estimates of those royalties.

We also earn license fee revenue by providing our customers with development licenses for our software tools related to the MultiSensing platform.

We recognize revenue ratably over the contract term beginning on the commencement date of each contract, which is the date we make the software available to our customers.

Our development license contracts with customers typically include a fixed amount of consideration and are generally non-cancellable and without any refund-type provisions.

We typically invoice our customers annually in advance for our development licenses upon execution of the initial contract or subsequent renewal.

Non-Recurring Engineering

For technology license that require modification or customization of the underlying technology to adapt the technology to customer use, we determine whether the technology license and required engineering consulting services represent separate performance obligations.

We perform our analysis on a contract-by-contract basis.

If there are separate performance obligations, we determine the standalone selling price (“SSP”) of each separate performance obligation to properly recognize revenue as each performance obligation is satisfied.

We provide engineering consulting services to our customers under a signed Statement of Work (“SOW”).

Deliverables and payment terms are specified in each SOW.

We charge an hourly rate or a fixed fee for engineering services.

We recognize revenues for hourly rate services as engineering

services specified in contracts are completed and accepted by our customers.

Revenues for fixed price services are generally recognized

over time applying input methods to estimate progress to completion.

We believe that recognizing non-recurring engineering services revenues

as progress towards completion of engineering services and customer acceptance of those services occurs best reflects the economics of

those transactions, because engineering services as tracked in our systems correspond directly with the value to our customers of our

performance completed to date.

Hours performed for each engineering project are tracked and reflect progress made on each project and

are charged at a consistent hourly rate.

Any upfront payments we receive for future non-recurring engineering services are recorded as

unearned revenue until that revenue is earned.

from non-recurring engineering contracts that are short-term in nature are recorded when those services are complete and accepted by

following tables present the net revenues distribution by geographical area and market:

ended December 31,

(in thousands)

We recognize revenues for hourly rate services as engineering services specified in contracts are completed and accepted by our customers.

Revenues for fixed price services are generally recognized over time applying input methods to estimate progress to completion.

We believe that recognizing non-recurring engineering services revenues as progress towards completion of engineering services and customer acceptance of those services occurs best reflects the economics of those transactions, because engineering services as tracked in our systems correspond directly with the value to our customers of our performance completed to date.

Hours performed for each engineering project are tracked and reflect progress made on each project and are charged at a consistent hourly rate.

Any upfront payments we receive for future non-recurring engineering services are recorded as unearned revenue until that revenue is earned.

Revenues from non-recurring engineering contracts that are short-term in nature are recorded when those services are complete and accepted by customers.

The following tables present the net revenues distribution by geographical area and market (in thousands, except percentages):

Years ended December 31,

North America:

Net revenues from Automotive

from IT & Industrial

Net revenues from IT & Industrial

$ 425 100.0 % $ 763 100.0 %

Asia Pacific:

Net revenues from Automotive

Net revenues from IT

Europe, Middle East and

$ 394 30.4 % $ 732 39.4 %

Net revenues from IT & Industrial

900 69.6 % 1,127 60.6 %

$ 1,294 100.0 % $ 1,859 100.0 %

Europe, Middle East and Africa:

Net revenues from Automotive

Net revenues from IT

Timing of revenue recognition may differ from the timing of invoicing

and receipt of consideration.

We record a receivable or unbilled revenue when we have an unconditional right to receive consideration

from customers.

Contract assets represent revenue recognized for performance to date when the right to consideration is conditional on

something other than the passage of time.

$ 343 100.0 % $ 486 100.0 %

Contract Balances

Timing of revenue recognition may differ from the timing of invoice and receipt of consideration.

We record a receivable or unbilled revenue when we have an unconditional right to receive consideration from customers.

Contract assets represent revenue recognized for performance to date when the right to consideration is conditional on something other than the passage of time.

We record contract liabilities when we receive prepayments or upfront payments ahead of performance.

The following table presents

our accounts receivable, net, contract assets, and contract liabilities:

(in thousands)

Accounts receivable and unbilled revenues

The following table presents our accounts receivable, net, contract assets, and contract liabilities (in thousands):

Accounts receivable and unbilled revenues, net

$ 391 $ 732 $ 652

Contract assets

Contract liabilities (deferred revenues)

Payment terms and conditions

vary by the type of contract;

Payment terms and conditions vary by the type of contract;

however, payments generally occur 30 - 60 days after invoicing for license fees.

Where revenue recognition

timing differs from invoice timing, we have determined that our contracts do not include a significant financing component.

the practical expedient in Topic 606, the Company does not assess whether a significant financing component exists if the period between

when the Company performs its obligations under the contract and when the customer pays is one year or less.

Our intent is to provide

our customers with consistent invoicing terms for the convenience of our customers, not to provide financing to our customers.

liabilities (deferred revenues) consist primarily of prepayments for license fees, and other services that we have been paid in advance.

Where revenue recognition timing differs from invoice timing, we have determined that our contracts do not include a significant financing component.

Applying the practical expedient in Topic 606, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less.

Our intent is to provide our customers with consistent invoicing terms for the convenience of our customers, not to provide financing to our customers.

Contract Liabilities

Contract liabilities (deferred revenues) consist primarily of prepayments for license fees, and other services that we have been paid in advance.

We earn the revenue when we transfer control of the service.

Deferred revenues may also include upfront payments for consulting services

to be performed in the future, such as non-recurring engineering services.

following table presents our deferred revenues by source:

(in thousands)

Deferred revenues may also include upfront payments for consulting services to be performed in the future, such as non-recurring engineering services.

The following table presents our deferred revenues by source:

Deferred revenues license fees

Deferred revenues non-recurring engineering

revenue were zero as of December 31, 2024.

The Company recognized revenues of approximately $ 2,000 and $ 25,000 , for 2024 and 2023, respectively,

related to contract liabilities outstanding at the beginning of the year.

Deferred revenues were $ 37,000 as of December 31, 2025 .

The Company recognized revenues of approximately zero and $ 2,000 , for the years ended December 31, 2025 and 2024 , respectively, related to contract liabilities outstanding at the beginning of the year.

Costs to Obtain Contracts

We record the incremental

costs of obtaining a contract with a customer as a contract asset if we expect the benefit of those costs to cover a period greater than

We record the incremental costs of obtaining a contract with a customer as a contract asset if we expect the benefit of those costs to cover a period greater than one year.

We currently have no incremental costs that must be capitalized.

We expense as incurred costs

of obtaining a contract when the amortization period of those costs would have been less than or equal to one year.

We expense as incurred costs of obtaining a contract when the amortization period of those costs would have been less than or equal to one year.

Discontinued Operations

the fourth quarter of 2023 the Company decided to phase out the product business and as a consequence terminate production at the Pronode

Technologies AB facilities in Kungsbacka, Sweden.

Subsequently, we commenced the phase out of our TSM product business during the first

quarter of 2024 through licensing of the TSM technology to strategic partners or outsourcing.

In May 2024, we stopped

producing TSMs and started to shut down the factory.

During the fourth quarter of 2023 the Company decided to phase out the product business and as a consequence terminate production at the Pronode Technologies AB facilities in Kungsbacka, Sweden.

Subsequently, we commenced the phase out of our TSM product business during the first quarter of 2024 through licensing of the TSM technology to strategic partners or outsourcing.

In May 2024, we stopped producing TSMs and started to shut down the factory.

The facility lease terminated as of September 30, 2024 and was not renewed.

Company concluded that the termination of TSM manufacturing met the criteria for discontinued operations.

this business has been reclassified to discontinued operations in these consolidated financial statements for all periods presented.

and Liabilities of Discontinued Operations

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

The Company concluded that the termination of TSM manufacturing met the criteria for discontinued operations.

As a result, this business has been reclassified to discontinued operations in these consolidated financial statements for all periods presented.

Assets and Liabilities of Discontinued Operations

Assets and liabilities of discontinued operations are presented separately in the consolidated balance sheets for all periods presented.

On December 31, 2025 and December 31, 2024 , these balances consisted of assets and liabilities of the Company’s Products business.

following table presents a reconciliation of the carrying amounts of the major classes of these assets and liabilities to the assets and liabilities of discontinued operations as presented on the Company’s consolidated balance sheets:

(in thousands)

The following table presents a reconciliation of the carrying amounts of the major classes of these assets and liabilities to the assets and liabilities of discontinued operations as presented on the Company’s consolidated balance sheets (in thousands):

December 31, 2025

December 31, 2024

ASSETS OF DISCONTINUED OPERATIONS

Current assets of discontinued operations:

receivable and unbilled revenues, net

expenses and other current assets

current assets of discontinued operations

assets of discontinued operations:

and equipment, net

lease right-of-use assets, net

non-current assets of discontinued operations

assets of discontinued operations

OF DISCONTINUED OPERATIONS

liabilities of discontinued operations:

payroll and employee benefits

portion of finance lease obligations

portion of operating lease obligations

current liabilities of discontinued operations

liabilities of discontinued operations:

lease obligations, net of current portion

non-current liabilities of discontinued operations

liabilities of discontinued operations

from Discontinued Operations

operations for the years ended December 31, 2024 and 2023, respectively, consists of results from the Company’s products business.

The following table provides

details about the major classes of line items constituting “Loss from discontinued operations” as presented on the Company’s

condensed consolidated statements of operations:

ended December 31,

(in thousands)

Cost of revenues:

on purchase commitment

Accounts receivable and unbilled revenues, net

Total current assets of discontinued operations

Total assets of discontinued operations

Loss from Discontinued Operations

Discontinued operations for the years ended December 31, 2025 and 2024 , respectively, consist 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 consolidated statements of operations (in thousands):

Years ended December 31,

$ 361 $ 1,171

Total revenues

Cost of revenues:

(loss) margin

and marketing

and administrative

Total cost of revenues

Operating expenses:

income (expense), net

from discontinued operations

Flows Information

following table presents cash flow information for discontinued operations:

ended December 31,

(in thousands)

and amortization

of operating lease ROU assets

impairment loss

of property and equipment

from sale of property and equipment

Sales and marketing

General and administrative

Total operating expenses

Operating income (loss)

Other income (expense), net

Loss before provision for income taxes

Income (loss) from discontinued operations

$ 456 $ ( 591 )

Cash Flows Information

The following table presents cash flow information for discontinued operations:

Years ended December 31,

Depreciation and amortization

Amortization of operating lease ROU assets

Inventory impairment loss

Bad debt expense

Proceeds from sale of property and equipment

Prepaid Expenses and Other Current Assets

expenses and other current assets consist of the following:

(in thousands)

Prepaid expenses and other current assets consist of the following (in thousands):

Years ended December 31,

Prepaid insurance

VAT receivable

Total prepaid expenses

and other current assets

Property and Equipment

and equipment, net consist of the following:

(in thousands)

Computers, software, furniture

Less accumulated depreciation

and amortization

Prepaid expenses and other current assets

Property and Equipment

and amortization expense was $ 39,000 and $ 47,000 for the years ended December 31, 2024 and 2023, respectively.

Property and equipment, net consist of the following (in thousands):

Years ended December 31,

Computers, software, furniture and fixtures

Equipment and vehicles

Less accumulated depreciation and amortization

( 270 ) ( 236 )

Property and equipment, net

Depreciation and amortization expense was $ 50,000 and $ 39,000 for the years ended December 31, 2025 and 2024 , respectively.

Accrued Expenses

expenses consist of the following:

(in thousands)

Accrued expenses consist of the following (in thousands):

Years ended December 31,

Accrued audit fees

Accrued other compensation

Accrued other compensations

Accrued bonus costs

Accrued costs related to customer claim

Accrued consulting fees and other

2 unchanged sentences

Preferred Stock

As of December 31, 2024 and

2023, 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 years ended December 31, 2024 and 2023.

No shares of preferred stock were issued and outstanding as

of December 31, 2024 and 2023.

of December 31, 2024 and 2023, 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.

the year ended December 31, 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.

Riley Securities and other expenses of $ 244,000 .

the year ended December 31, 2024, we sold an aggregate of 1,423,441 shares of our common stock under the Ladenburg ATM Facility with

aggregate net proceeds to us of $ 5.8 million, after payment of commissions to Ladenburg and other expenses of $ 0.2 million.

As of December 31, 2025 and 2024 , 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 years ended December 31, 2025 and 2024 .

No shares of preferred stock were issued and outstanding as of December 31, 2025 and 2024 .

As of December 31, 2025 and 2024 , 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.

During the year ended December 31, 2025 , we sold no shares under the Ladenburg ATM Facility.

During the year ended December 31, 2024 , we sold an aggregate of 1,423,441 shares of our common stock under the Ladenburg ATM Facility with aggregate net proceeds to us of $ 5.8 million, after payment of commissions to Ladenburg and other expenses of $ 0.2 million.

Stock-Based Compensation

have adopted equity incentive plans for which stock options and restricted stock awards are available for grants to employees, consultants

and directors.

Except for certain options granted to certain Swedish employees, all employee, consultant and director stock options granted

under our stock option plans have an exercise price equal to the market value of the underlying common stock on the grant date.

are no vesting provisions tied to performance conditions for any options.

Vesting for all outstanding option grants is based solely on

continued service as an employee, consultant or director.

All of our outstanding stock options and restricted stock awards are classified

as equity instruments.

Options and Long-Term Incentive Plan

During the year ended December

31, 2020, our stockholders approved the 2020 Plan which replaced our 2015 Stock Incentive Plan (the “2015 Plan”), which in

turn replaced our Neonode Inc.

We have adopted equity incentive plans for which stock options and restricted stock awards are available for grants to employees, consultants and directors.

Except for certain options granted to certain Swedish employees, all employee, consultant and director stock options granted under our stock option plans have an exercise price equal to the market value of the underlying common stock on the grant date.

There is no vesting provisions tied to performance conditions for any options.

Vesting for all outstanding option grants is based solely on continued service as an employee, consultant or director.

All of our outstanding stock options and restricted stock awards are classified as equity instruments.

Stock Options and Long-Term Incentive Plan

During the year ended December 31, 2020, our stockholders approved the 2020 Plan which replaced our 2015 Stock Incentive Plan (the “2015 Plan”), which in turn replaced our Neonode Inc.

2006 Equity Incentive Plan (the “2006 Plan”).

There are no awards outstanding under the 2006

Plan and 2015 Plan.

Under the 2020 Plan, 750,000 shares of common stock have been reserved for awards, including nonqualified stock option

grants and restricted stock grants to officers, employees, non-employee directors and consultants.

The terms of the awards granted under

the 2020 Plan are set by our compensation committee at its discretion.

2020, we established the 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.

The following table summarizes

the combined activity under all of the stock option plans:

Options Outstanding

Weighted- Remaining

Average Contractual Aggregate

Number of Exercise Life Intrinsic

Shares Price (in years) Value

Options outstanding – January 1, 2023 2,500 $ 14.40 0.59 $ -

Options granted - - - -

Options exercised - - - -

Options cancelled or expired ( 2,500 ) 14.40 - -

Options outstanding – December 31, 2023 - $ - - -

Options granted - - - -

Options exercised - - - -

Options cancelled or expired - - - -

Options outstanding and vested – December 31, 2024 - $ - - $ -

stock options were granted during the years ended December 31, 2024 and 2023.

the years ended December 31, 2024 and 2023, we recorded no stock-based compensation expense related to the vesting of stock options.

The estimated fair value of the stock options will be calculated using the Black-Scholes option pricing model as of the grant date of

the stock option.

options granted under the 2006, 2015 and 2020 Plans are exercisable over a maximum term of 10 years from the date of grant, vest in various

installments over a one to four-year period and have exercise prices reflecting the market value of the shares of common stock on the

date of grant.

There are no awards outstanding under the 2006 Plan and 2015 Plan.

Under the 2020 Plan, 750,000 shares of common stock have been reserved for awards, including non-qualified stock option grants and restricted stock grants to officers, employees, non-employee directors and consultants.

The terms of the awards granted under the 2020 Plan are set by our compensation committee at its discretion.

In 2020, we established the 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.

As of December 31, 2025 and 2024 no awards were outstanding under either of the plans.

There has been no activity under the stock option plans during the years ended December 31, 2025 and 2024 .

Stock options granted under the 2006, 2015 and 2020 Plans are exercisable over a maximum term of 10 years from the date of grant, vest in various installments over a one to four -year period and have exercise prices reflecting the market value of the shares of common stock on the date of grant.

Commitments and Contingencies

Company is subject to legal proceedings and claims that may arise in the ordinary course of business.

The Company is not aware of any

pending or threatened litigation matters at this time that would have a material impact on the operations of the Company.

Company has leases mainly consisting of the corporate office.

This kind of lease typically has an original lease term of one to three

Future renewal options that are not likely to be executed as of the consolidated balance sheet date are excluded from right-of-use

assets and related lease liabilities.

The lease is automatically renewed at a cost increase of 2 % on an annual basis, unless we provide

written notice nine months prior to the respective expiration dates.

lease right of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the

The Company is subject to legal proceedings and claims that may arise in the ordinary course of business.

The Company is not aware of any pending or threatened litigation matters at this time that would have a material impact on the operations of the Company.

The Company has leases mainly consisting of the corporate office.

The lease had an original lease term of two years and is extended on a yearly basis unless written notice is provided nine months prior to the expiration date.

Future renewal options that are not likely to be executed as of the consolidated balance sheet date are excluded from right-of-use assets and related lease liabilities.

The lease is automatically renewed at a cost increase of 2 % on an annual basis, unless we provide written notice nine months prior to the respective expiration dates.

Operating lease right of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term.

The Company has entered into various short-term operating leases with an initial term of twelve months or less.

are not recorded on the Company's Consolidated Balance Sheets.

All operating lease expense is recognized on a straight-line basis over

the lease term.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate

to determine the present value of the lease payments.

These leases are not recorded on the Company's Consolidated Balance Sheets.

All operating lease expense is recognized on a straight-line basis over the lease term.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

For finance leases, the implicit rate is used, since it is readily available.

components of lease expense were as follows (in thousands):

The components of lease expense were as follows (in thousands):

Years ended December 31,

Finance lease cost:

Amortization of leased assets

Interest on lease liabilities

Interest on leased liabilities

Operating lease cost

1 unchanged sentence

Total lease cost

Company made cash payments regarding operating leases of $ 27,000 and $ 0 for the years ended December 31, 2024 and 2023, respectively.

The Company made cash payments regarding operating leases of $ 385,000 and $ 27,000 for the years ended December 31, 2025 and 2024 , respectively.

The Company made cash payments regarding finance leases of $ 25,000 and $ 18,000 for the years ended December 31, 2025 and 2024 , respectively.

following table shows right-of-use assets and lease liabilities:

(in thousands)

Right-of-use assets:

The following table shows right-of-use assets and lease liabilities (in thousands):

Right-of-use assets:

Lease liabilities:

Current portion of operating

lease obligations

Operating lease obligations,

net of current portion

Current portion of finance

lease obligations

lease obligations, net of current portion

Operating leases

Finance leases

Total right-of-use assets

Lease liabilities:

liability maturities are as follows:

(in thousands)

Current portion of operating lease obligations

Operating lease obligations, net of current portion

Current portion of finance lease obligations

Finance lease obligations, net of current portion

Total lease liabilities

Lease liability maturities are as follows (in thousands):

Operating Leases

Finance Leases

$ 354 $ 13 $ 367

$ 354 $ 28 $ 382

Imputed interest

( 10 ) ( 1 ) ( 11 )

Total lease liabilities

$ 344 $ 27 $ 371

Lease liabilities, current

$ 344 $ 12 $ 356

Lease liabilities, non-current

Total lease liabilities

The weighted-average remaining

lease term related to the Company’s operating lease liabilities as of December 31, 2024 and December 31, 2023 was 1.9 years and

0.8 years, respectively.

The discount rate related to the Company’s operating lease liabilities as of December 31, 2024 and December

31, 2023 was 5.0 % for each of the years.

The weighted-average remaining

lease term related to the Company’s finance lease liabilities as of December 31, 2024 and December 31, 2023 was 0.2 years and 1.3

years, respectively.

The discount rate related to the Company’s operating lease liabilities as of December 31, 2024 and December

31, 2023 was 3.0 % and 2.6 %, respectively.

Company operates as one operating segment.

Our chief operating decision maker ("CODM") is our Chief Executive Officer, who

reviews financial information presented on a consolidated basis.

The CODM uses consolidated operating loss and net loss to assess financial

performance and allocate resources.

These financial metrics are used by the CODM to make key operating decisions, such as the allocation

of budget between cost of revenues, research and development, sales and marketing, and general and administrative expenses.

following table presents key financial information with respect to the Company’s single operating segment:

ended December 31,

(in thousands)

$ 344 $ 27 $ 371

The weighted-average remaining lease term related to the Company’s operating lease liabilities as of December 31, 2025 and December 31, 2024 was 1.0 years and 1.9 years, respectively.

The discount rate related to the Company’s operating lease liabilities as of December 31, 2025 and December 31, 2024 was 5.0 % for each of the years.

The weighted-average remaining lease term related to the Company’s finance lease liabilities as of December 31, 2025 and December 31, 2024 was 2.2 years and 0.2 years, respectively.

The discount rate related to the Company’s operating lease liabilities as of December 31, 2025 and December 31, 2024 was 3.5 % and 3.0 %, respectively.

Segment Information

The Company operates as one operating segment.

Our chief operating decision maker ("CODM") is our Chief Executive Officer, who reviews financial information presented on a consolidated basis.

The CODM uses consolidated operating loss and net loss to assess financial performance and allocate resources.

These financial metrics are used by the CODM to make key operating decisions, such as the allocation of budget between cost of revenues, research and development, sales and marketing, and general and administrative expenses.

The following table presents key financial information with respect to the Company’s single operating segment (in thousands):

Years ended December 31,

$ 2,062 $ 3,108

Costs and expenses (a) :

Cost of revenues

General and administrative,

including rent

General and administrative, including rent

Payroll and related

Professional fees and

Professional fees and IP

Marketing and travel

Total costs and expenses

1 unchanged sentence

Other income, net

Loss before provision for income taxes

Provision for income

Loss from continuing operations

(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision-maker.

(b) Other segment items primarily include depreciation and amortization, payroll and related - re-allocated to cost of revenues, and stock options expense.

The following table presents

the long-lived assets property and equipment and right-of-use assets by geographic area:

report revenues from external customers based on the country where the customer is located.

The following table presents net revenues

Income (loss) before provision (benefit) for income taxes

8,028 ( 5,860 )

Provision (benefit) for income taxes

Income (loss) from continuing operations

$ 8,037 $ ( 5,875 )

The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision-maker.

Other segment items primarily include net proceeds from patent settlement, depreciation and amortization, payroll and related - re-allocated to cost of revenues, and stock options expense.

The following table presents the long-lived assets property and equipment and right-of-use assets by geographic area (in thousands):

United States

We report revenues from external customers based on the country where the customer is located.

The following table presents net revenues by country (in thousands, except percentages):

Years ended December 31,

(in thousands)

$ 1,276 62.0 % $ 1,731 55.8 %

300 14.5 % 365 11.7 %

42 2.0 % 116 3.7 %

16 0.8 % 97 3.1 %

1 - % 31 1.0 %

2 0.1 % 5 0.2 %

$ 1,637 79.4 % $ 2,345 75.5 %

United States

During 2024, the Company identified errors in the

calculation of net operating loss carryforwards, resulting in balances for deferred tax assets and the corresponding valuation allowance

being overstated at December 31, 2023.

Following an analysis of quantitative and qualitative factors in accordance with SEC Staff Accounting

Bulletin 99, Materiality, the Company concluded that the errors were not material to the previously issued consolidated financial statements,

and thus, no restatement of any of the Company’s previously issued consolidated financial statements is necessary.

These amounts

have been corrected from the amounts that were previously reported in the footnotes to the December 31, 2023 consolidated financial statements

in the 2023 tables below as follows:

An increase to the foreign deferred tax provision and a corresponding

decrease in the change in valuation allowance of $ 7,424,000 .

A decrease in gross deferred tax assets and the corresponding

valuation allowance of $ 7,424,000 .

These corrections did not impact the financial

position, operating results or cash flows of the Company as of and for the year ended December 31, 2023.

before provision for income taxes was distributed geographically as follows:

425 20.6 % 763 24.5 %

$ 2,062 100.0 % $ 3,108 100.0 %

Income (loss) from continuing operations before provision (benefit) for income taxes was distributed geographically as follows (in thousands):

Years ended December 31,

(in thousands)

provision (benefit) for income taxes is as follows:

$ 8,263 $ ( 5,888 )

$ 8,028 $ ( 5,860 )

The provision (benefit) for income taxes from continuing operations is as follows (in thousands):

Years ended December 31,

(in thousands)

Total current expense

Total current expense (benefit)

2,393 ( 784 )

Change in valuation allowance

( 1,770 ) 662

Total deferred expense

Total provision for income taxes

differences between our effective income tax rate and the U.S.

federal statutory federal income tax rate are as follows:

Years ended December 31,

Total provision (benefit) for income taxes

Pursuant to the disclosure requirements of ASU 2023 - 09, the differences between our effective income tax rate from continuing operations and the U.S.

federal statutory income tax rate for the year ended December 31, 2025, are as follows (in thousands, except percentages):

Year ended December 31,

Dollars Percent

US federal statutory tax rate

$ 1,686 21.0 %

State & local income taxes, net of federal effect (a)

Foreign tax effects

Return to provision adjustment

( 572 ) ( 7.1 )%

Changes in valuation allowance

Other Jurisdictions

( 17 ) ( 0.2 )%

Changes in tax laws or rates in current period

Cross border tax laws

Global Intangible Low-Taxed Income

Changes in valuation allowance

( 2,298 ) ( 28.6 )%

Nontaxable or nondeductible items

Changes in unrecognized tax benefits

Effective tax rate

$ ( 9 ) ( 0.1 )%

The state that makes up the majority of the state & local income taxes category is California.

The differences between our effective income tax rate and the U.S.

federal statutory income tax rate for continuing operations for the year ended December 31, 2024, are as follows:

Year ended December 31,

Amounts at statutory tax rates

4 unchanged sentences

Effective tax rate

components of the deferred tax asset balances are as follows:

(in thousands)

Significant components of the deferred tax asset balances are as follows (in thousands):

Years ended December 31,

Deferred tax assets:

Net operating losses

20,274 22,124

Gross deferred tax assets

20,274 22,124

Valuation allowance

( 20,244 ) ( 22,108 )

Total deferred tax assets

Deferred tax liabilities:

Basis difference in fixed assets

( 15 ) ( 16 )

Net deferred tax assets

Valuation allowances are recorded to offset certain deferred tax assets

due to management’s uncertainty of realizing the benefits of these items.

Management applies a full valuation allowance for the

accumulated losses of Neonode Inc., and its subsidiaries, since it is not determinable using the “more likely than not” criteria

that there will be any future benefit of our deferred tax assets.

Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023 - 09 for the year ended December 31,2025 is as follows (in thousands):

Year ended December 31,

Cash paid (received) for income taxes, net of refunds received

Valuation allowances are recorded to offset certain deferred tax assets due to management’s uncertainty of realizing the benefits of these items.

Management applies a full valuation allowance for the accumulated losses of Neonode Inc., and its subsidiaries, since it is not determinable using the “more likely than not” criteria that there will be any future benefit of our deferred tax assets.

This is mainly due to our history of operating losses.

As of December

31, 2024, we had federal, state and foreign net operating losses of $ 84.6 million, $ 18.7 million and $ 14.9 million, respectively.

total federal loss carryforward, approximately $ 58.0 million will begin to expire in 2028 and the remainder do not expire.

The California

loss carryforward will begin to expire in 2030.

As of December 31, 2025, we had federal, state and foreign net operating losses of $ 73.2 million, $ 18.7 million and $ 17.5 million, respectively.

Of the total federal loss carryforward, approximately $ 47.0 million will begin to expire in 2031 and the remainder do not expire.

The California loss carryforward will begin to expire in 2030.

The foreign loss carryforward, which is generated in Sweden, does not expire.

of the net operating loss and tax credit carryforwards is subject to an annual limitation due to the ownership percentage change limitations

provided by Section 382 of the Internal Revenue Code and similar state provisions.

The annual limitation may result in the expiration

of the net operating losses and tax credit carryforwards before utilization.

As of December 31, 2024, we had not completed the

determination of the amount to be limited under the provision.

follow the provisions of accounting guidance which includes a two-step approach to recognizing, derecognizing and measuring uncertain

tax positions.

Utilization of the net operating loss and tax credit carryforwards is subject to an annual limitation due to the ownership percentage change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions.

The annual limitation may result in the expiration of the net operating losses and tax credit carryforwards before utilization.

We follow the provisions of accounting guidance which includes a two -step approach to recognizing, derecognizing and measuring uncertain tax positions.

There were no unrecognized tax benefits for the years ended December 31, 2025 and 2024.

follow the policy to classify accrued interest and penalties as part of the accrued tax liability in the provision for income taxes.

We follow the policy to classify accrued interest and penalties as part of the accrued tax liability in the provision for income taxes.

For the years ended December 31, 2025 and 2024 we did not recognize any interest or penalties related to unrecognized tax benefits.

of December 31, 2024, we had no uncertain tax positions that would be reduced as a result of a lapse of the applicable statute of limitations.

file income tax returns in the U.S.

As of December 31, 2025, we had no uncertain tax positions that would be reduced as a result of a lapse of the applicable statute of limitations.

We file income tax returns in the U.S.

federal jurisdiction, California, Sweden, and Japan.

The 2008 through 2023 tax years are open and

may be subject to potential examination in one or more jurisdictions.

We are not currently under any federal, state or foreign income

tax examinations.

The 2008 through 2024 tax years are open and may be subject to potential examination in one or more jurisdictions.

We are not currently under any federal, state or foreign income tax examinations.

Employee Benefit Plans

participate in a number of individual defined contribution pension plans for our employees in Sweden.

We contribute between 4.5 % and

30 % of the employee’s annual salary to these pension plans depending on age and salary level.

Contributions relating to these defined

contribution plans for the years ended December 31, 2024 and 2023 were $ 542,000 and $ 510,000 , respectively.

We participate in a number of individual defined contribution pension plans for our employees in Sweden.

We contribute between 4.5 % and 30 % of the employee’s annual salary to these pension plans depending on age and salary level.

Contributions relating to these defined contribution plans for the years ended December 31, 2025 and 2024 were $ 533,000 and $ 542,000 , respectively.

We match U.S.

employee contributions

to a 401(K) retirement plan up to a maximum of six percent ( 6 %) of an employee’s annual salary.

Contributions relating to the matching

401(K) contributions for the years ended December 31, 2024 and 2023 were $ 6,000 and $ 6,000 , respectively.

In Taiwan, we contribute six

percent ( 6 %) of the employee’s annual salary to a pension fund which agrees with Taiwan’s Labor Pension Act.

Contributions

relating to the Taiwanese pension fund for the years ended December 31, 2024 and 2023 were $ 3,000 and $ 3,000 , respectively.

employee contributions to a 401 (K) retirement plan up to a maximum of six percent ( 6 %) of an employee’s annual salary.

Contributions relating to the matching 401 (K) contributions for the years ended December 31, 2025 and 2024 were $ 6,000 and $ 6,000 , respectively.

In Taiwan, we contribute six percent ( 6 %) of the employee’s annual salary to a pension fund which agrees with Taiwan’s Labor Pension Act.

Contributions relating to the Taiwanese pension fund for the years ended December 31, 2025 and 2024 were $ 3,000 and $ 3,000 , respectively.

Net Loss Per Share

net loss per common share for the years ended December 31, 2024 and 2023 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 during the

Basic net loss per common share for the years ended December 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 during the year.

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 during the year.

Company had no potential common stock equivalents as of December 31, 2024 or 2023.

(In thousands,

except per share amounts)

BASIC AND DILUTED

Weighted average number of

common shares outstanding

Loss from continuing operations

Loss from discontinued

Loss per share from continuing operations

for the relevant period by the weighted average number of shares of common stock and common stock equivalents outstanding during the year.

The Company had no potential common stock equivalents as of December 31, 2025 or 2024 .

Years ended December 31,

(in thousands, except per share amounts)

BASIC AND DILUTED

Loss per share from

discontinued operations - basic and diluted

Net loss per share - basic

Weighted average number of common shares outstanding

16,783 15,873

Income (loss) from continuing operations

$ 8,037 $ ( 5,875 )

Income (loss) from discontinued operations

Net income (loss)

$ 8,493 $ ( 6,466 )

Income (loss) per share from continuing operations - basic and diluted

$ 0.48 $ ( 0.37 )

Income (loss) per share from discontinued operations - basic and diluted

0.03 ( 0.04 )

Net income (loss) per share - basic and diluted

$ 0.51 $ ( 0.41 )

Subsequent Events

subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto.

No subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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-K

Item 8. Financial Statements and Supplementary Data