Core Viewpoint - Neonode Inc. reported a significant decline in revenues from its legacy business, particularly in the printer and automotive infotainment segments, while also highlighting strategic initiatives aimed at long-term growth and diversification [5][7]. Financial Summary for the Three Months Ended September 30, 2025 - Revenues from continuing operations were $0.4 million, a decrease of 48.7% compared to the same period in the prior year [6]. - Operating expenses from continuing operations were $2.1 million, an increase of 4.0% compared to the same period in the prior year [6]. - Income from continuing operations was $13.9 million, or $0.83 per share, compared to a loss of $1.0 million, or $0.07 per share, for the same period in the prior year [6]. - Cash used by operations was $1.5 million, compared to $1.3 million for the same period in the prior year [6]. Financial Summary for the Nine Months Ended September 30, 2025 - Revenues from continuing operations were $1.5 million, a decrease of 37.1% compared to the same period in the prior year [6]. - Operating expenses from continuing operations were $7.3 million, an increase of 0.9% compared to the same period in the prior year [6]. - Income from continuing operations was $10.2 million, or $0.60 per share, compared to a loss of $4.4 million, or $0.28 per share, for the same period in the prior year [6]. - Cash used by operations was $4.6 million, compared to $4.4 million for the same period in the prior year [6]. Patent Assignment Highlights - The company reported a gain from patent assignment of $15.5 million after brokerage fees, which was paid in October 2025 [6]. - The patent assignment was related to a legal settlement involving Aequitas Technologies LLC and Samsung Electronics [6]. CEO's Comments - The CEO indicated that the decline in revenues from the legacy business is expected to continue until new customers transition to full production [5]. - The company is focusing on broadening business opportunities and advancing its product roadmap to support sustainable growth [5]. - Strategic decisions include transitioning the zForce® platform to maintenance mode and aligning the company around the MultiSensing AI computer vision platform for expanded deployment in the automotive sector [7].

Financial Performance - Total revenues for the three months ended September 30, 2025, were $430,000, a decrease of 48.7% compared to $838,000 for the same period in 2024[14]. - The company reported a net income of $14,184,000 for the three months ended September 30, 2025, compared to a net loss of $1,087,000 for the same period in 2024[14]. - For the nine months ended September 30, 2025, the company reported a net income of $10.6 million compared to a net loss of $4.9 million for the same period in 2024[22]. - The company reported revenues from discontinued operations of $226,000 for the three months ended September 30, 2025, compared to $85,000 for the same period in 2024, representing a 165% increase[48]. - The company reported a net income from discontinued operations of $250,000 for the three months ended September 30, 2025, compared to a loss of $44,000 for the same period in 2024[48]. Revenue Breakdown - License fees accounted for $406,000, representing 94.4% of total revenue, down from $731,000 or 87.2% in the prior year[73]. - Net revenues from IT & Industrial in North America for the nine months ended September 30, 2025, were $329,000, down from $589,000 in 2024[36]. - In the Asia Pacific region, net revenues from Automotive for the nine months ended September 30, 2025, were $313,000, a decrease from $597,000 in 2024[36]. - Japan contributed $277,000 in revenue, accounting for 64.4% of total revenue for the three months ended September 30, 2025[62]. Expenses and Margins - Gross margin for the nine months ended September 30, 2025, was $1,518,000, down from $2,389,000 for the same period in 2024[14]. - Gross margin for the three months ended September 30, 2025, was $421,000, a decline of 48.3% from $815,000 in the same period last year[73]. - Research and development expenses for the three months ended September 30, 2025, were $794,000, slightly down from $822,000 in the same period of 2024[14]. - Research and development expenses increased by 5.6% to $2.8 million for the nine months ended September 30, 2025, compared to $2.7 million in 2024[81]. - Total costs and expenses for the three months ended September 30, 2025, were $2,127,000, compared to $2,054,000 for the same period in 2024, an increase of 3.5%[60]. Assets and Liabilities - The total current assets increased to $32,193,000 as of September 30, 2025, compared to $17,685,000 as of December 31, 2024[12]. - The company’s total liabilities were $6,016,000 as of September 30, 2025, compared to $1,939,000 as of December 31, 2024[12]. - Cash and cash equivalents decreased to $11,585,000 as of September 30, 2025, from $16,427,000 as of December 31, 2024[12]. - The accumulated deficit improved to $(213,497,000) as of September 30, 2025, from $(224,080,000) as of December 31, 2024[12]. - The company has an accumulated deficit of approximately $213.5 million as of September 30, 2025, down from $224.1 million at the end of 2024[31]. Gains and Other Income - The company recognized a gain from patent assignment of $19,389,000 for the three months ended September 30, 2025[14]. - The company recognized a gain of approximately $19.4 million from a patent assignment during the third quarter of 2025[39]. - Gain from patent assignment was $19.4 million for the nine months ended September 30, 2025[86]. Shareholder and Market Activities - The company has entered into an At The Market Offering Agreement with Ladenburg Thalmann & Co. Inc. to issue and sell up to approximately $10 million of shares of common stock[51]. - The company has an At-the-Market Offering Program allowing it to issue and sell up to $10 million of common stock, with a commission of 3.0% on gross sales price per share sold[107][108]. - No shares were sold under the Ladenburg ATM Facility during the three and nine months ended September 30, 2025, while 1,423,441 shares were sold in the same periods of 2024, generating net proceeds of $5.8 million[110]. Legal and Compliance - The company has identified material weaknesses in internal controls over financial reporting, particularly in the design and operation of controls related to income tax calculations and management override risks[119][120]. - The company is involved in ongoing legal proceedings related to patent infringement against Apple and Samsung, with a settlement reached with Samsung in August 2025[115]. Operational Considerations - The ongoing war in Ukraine may exacerbate supply chain disruptions, impacting the company's operations and financial conditions[72]. - The company has sufficient cash to meet its obligations for at least one year from the date of the financial statements, despite operating losses and negative cash flows from operations[97]. - The company may need additional capital sources beyond cash on hand and its ATM Facility if operations do not become cash flow positive, potentially leading to equity investments or debt arrangements[98].

Financial Performance - Revenues from continuing operations for Q3 2025 were $0.4 million, a decrease of 48.7% compared to Q3 2024[5] - Total revenues for the three months ended September 30, 2025, were $430 million, a decrease of 48% compared to $838 million for the same period in 2024[20] - Net income for the three months ended September 30, 2025, was $14.184 million, compared to a net loss of $1.087 million for the same period in 2024[23] - Operating income for the three months ended September 30, 2025, was $13.810 million, compared to an operating loss of $1.225 million for the same period in 2024[20] - Basic and diluted net income per share for the three months ended September 30, 2025, was $0.85, compared to a loss of $0.07 for the same period in 2024[20] Operating Expenses - Operating expenses from continuing operations for Q3 2025 were $2.1 million, an increase of 4.0% compared to Q3 2024[10] - Total operating expenses for the three months ended September 30, 2025, were $2.122 million, compared to $2.040 million for the same period in 2024[20] Cash and Assets - Cash and accounts receivable totaled $12.2 million as of September 30, 2025, down from $17.2 million as of December 31, 2024[12] - Cash and cash equivalents at the end of the period were $11.585 million, down from $17.599 million at the end of September 30, 2024[28] - Total current assets increased to $32.2 million as of September 30, 2025, compared to $17.7 million as of December 31, 2024[18] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $2.843 million, an increase of 5.6% from $2.692 million for the same period in 2024[20] Gains and Losses - The gain from patent assignment to Aequitas was $15.5 million, which was paid in October 2025[5] - The company recognized a gain from patent assignment of $19.389 million for the three months ended September 30, 2025[20] - The company experienced a foreign currency translation adjustment loss of $33,000 for the three months ended September 30, 2025[23] Strategic Focus - The company is focusing on expanding its MultiSensing AI computer vision platform for the automotive sector[7] - The legacy business is experiencing a faster decline in revenues than anticipated, prompting a shift towards securing new partnerships in the automotive market[8] Non-Recurring Revenues - Revenues from non-recurring engineering for Q3 2025 were $24,000, a decrease of 77.6% compared to Q3 2024[9] - Cash used by operations in Q3 2025 was $1.5 million, compared to $1.3 million for Q3 2024[11]

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, typically below 30 [1] Company Summaries - **VeriSign, Inc (NASDAQ:VRSN)**: - RSI Value: 29.7 - Stock Price Action: Fell 5.5% to close at $251.94 - Recent Performance: Stock dropped around 12% over the past month, with a 52-week low of $175.62 - Momentum Score: 71.58, Value Score: 10.11 [6] - **American Bitcoin Corp (NASDAQ:ABTC)**: - RSI Value: 29.3 - Stock Price Action: Fell 7.8% to close at $4.49 - Recent Performance: Stock decreased around 35% over the past month, with a 52-week low of $0.63 - Notable Event: KPMG named as new auditor on Sept. 25 [6] - **Neonode Inc (NASDAQ:NEON)**: - RSI Value: 24.3 - Stock Price Action: Fell 4.8% to close at $3.19 - Recent Performance: Stock declined around 20% over the past month, with a 52-week low of $3.13 - Notable Event: Expected $15-20 million from a Samsung Electronics patent settlement announced on Sept. 3 [6]

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, typically below 30 [1] Company Summaries - **VeriSign, Inc (NASDAQ:VRSN)**: - RSI Value: 29.7 - Stock price fell approximately 12% over the past month, closing at $251.94 after a 5.5% drop on Wednesday [6] - 52-week low: $175.62 - Momentum score: 71.58, Value score: 10.11 [6] - **American Bitcoin Corp (NASDAQ:ABTC)**: - RSI Value: 29.3 - Stock price decreased around 35% in the last month, closing at $4.49 after a 7.8% decline on Wednesday [6] - 52-week low: $0.63 - Recently appointed KPMG as new auditor [6] - **Neonode Inc (NASDAQ:NEON)**: - RSI Value: 24.3 - Stock price fell about 20% over the past month, closing at $3.19 after a 4.8% drop on Wednesday [6] - 52-week low: $3.13 - Expected $15-20 million from a Samsung Electronics patent settlement [6]

Core Viewpoint - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1]. Group 1: Oversold Stocks - Endava PLC (DAVA) has an RSI of 29.8, with a stock price decline of approximately 34% over the past month, reaching a 52-week low of $9.12 [8]. - Neonode Inc (NEON) has an RSI of 23.5, with a significant stock price drop of around 84% in the last month, hitting a 52-week low of $3.80 [9]. - authID Inc (AUID) has an RSI of 29.54, with its stock falling about 36% over the past month, reaching a 52-week low of $2.65 [9]. Group 2: Company Performance Insights - Endava's CEO noted that over half of their employees are now using AI in projects, indicating progress towards becoming AI-native, despite a cautious outlook due to volatile operating conditions [8]. - Neonode anticipates $15-20 million from a patent settlement with Samsung Electronics, which may influence future performance [9]. - authID reported its highest quarterly revenue in history, showcasing effective execution of its growth strategy, despite a recent stock decline [9].

Core Viewpoint - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1]. Group 1: Oversold Stocks - Endava PLC (DAVA) has an RSI of 29.8, with a stock price decline of approximately 34% over the past month, reaching a 52-week low of $9.12 [8]. - Neonode Inc (NEON) has an RSI of 23.5, with a significant stock price drop of around 84% in the last month, hitting a 52-week low of $3.80 [9]. - authID Inc (AUID) has an RSI of 29.54, with a stock price decrease of about 36% over the past month, reaching a 52-week low of $2.65 [9]. Group 2: Company Performance Insights - Endava's CEO noted that over half of their employees are now using AI in projects, indicating progress towards becoming AI-native, despite a cautious outlook due to volatile operating conditions [8]. - Neonode anticipates $15-20 million from a patent settlement with Samsung Electronics, which may influence future stock performance [9]. - authID reported its highest quarterly revenue in history, showcasing effective execution of its growth strategy, although the stock has still faced a decline [9].

Company Performance - Neonode Inc. experienced a stock price drop of approximately 68.34%, closing at $6.81, down from a year high of $29.9, influenced by market reactions to company developments and industry trends [2][8] - Artelo Biosciences saw a 50.34% decrease in its stock price, closing at $4.35, amid ongoing clinical trials and a public offering priced at $3 million [3][8] - 707 Cayman Holdings Limited faced a 48.45% decline in its stock price to $0.39, potentially due to challenges in the retail sector and exploring a crypto treasury reserve with Precious Choice Global Limited [4][8] - Aethlon Medical's stock price fell by 45.76% to $0.73, possibly linked to recent performance updates and investor sentiment towards the healthcare sector, with a public offering valued at $4.5 million [5] - Purple Biotech's stock price decreased by 43.54%, closing at $0.80, which may be related to clinical trial results and market conditions affecting biotech firms [6] Market Trends - The significant price movements of these companies highlight the importance of monitoring market trends, company developments, and broader economic factors that can impact stock performance [7]

Core Viewpoint - Neonode Inc. anticipates receiving net proceeds of approximately US$15 million to US$20 million from a settlement related to a patent infringement lawsuit involving its subsidiary Aequitas Sub and Samsung Electronics [2][5]. Group 1: Settlement Details - The lawsuit was filed by Aequitas Sub against Samsung on June 8, 2020, alleging patent infringement, and was dismissed on September 2, 2025, following a settlement [5]. - Neonode is entitled to 50 percent of any net proceeds from the settlement based on the Assignment Agreement with Aequitas Technologies LLC [1][4]. - The expected net proceeds will be calculated after deducting brokerage fees, legal fees, taxes, and other expenses [2][4]. Group 2: Financial Implications - The anticipated net proceeds of US$15 million to US$20 million will be subject to further evaluation regarding tax implications and other financial considerations [2][3]. - As of September 3, 2025, the Board of Directors has not made a decision on the use of the proceeds from the settlement [3]. Group 3: Background Information - In 2019, Neonode assigned a portfolio of patents to Aequitas, which allows the company to share in potential net proceeds from licensing and monetization efforts by Aequitas [4]. - A separate patent infringement case against Apple Inc. by Aequitas Sub remains pending in California [6].

Core Viewpoint - Neonode Inc. reported a decline in revenues primarily due to challenges in its legacy business, particularly in the printer and automotive infotainment markets, while focusing on expanding business opportunities and advancing its product roadmap for future growth [4]. Financial Summary for Q2 2025 - Revenues from continuing operations were $0.6 million, a decrease of 25.2% compared to Q2 2024 [6]. - License revenues were $0.4 million, down 34.2% year-over-year, attributed to lower demand from legacy customers [6]. - Non-recurring engineering revenues increased by 4.3% to $0.2 million compared to the same period in 2024 [7]. - Operating expenses rose to $2.7 million, a 5.3% increase from Q2 2024 [7]. - The loss from continuing operations was $2.0 million, or $0.12 per share, compared to a loss of $1.7 million, or $0.11 per share in Q2 2024 [8]. Financial Summary for H1 2025 - Revenues from continuing operations totaled $1.1 million, a decrease of 31.1% compared to H1 2024 [9]. - Operating expenses were $5.2 million, a slight decrease of 1.5% from the same period last year [9]. - The loss from continuing operations was $3.8 million, or $0.23 per share, compared to a loss of $3.4 million, or $0.22 per share in H1 2024 [9]. Cash Flow and Financial Position - Cash used by operations in Q2 2025 was $1.7 million, up from $1.2 million in Q2 2024, mainly due to lower net loss and reduced component purchases [10]. - As of June 30, 2025, cash and accounts receivable were $13.6 million, down from $17.2 million as of December 31, 2024 [11]. - Working capital for continuing operations was $12.1 million, compared to $16.1 million at the end of 2024 [11].