Core Viewpoint - Neonode Inc. has transitioned from hardware production to a licensing model, focusing on its zForce and MultiSensing technologies to capitalize on optical sensing and gesture recognition markets [1]. Company Overview - Neonode Inc. is a Sweden-based technology company specializing in optical sensing and gesture recognition [1]. - The company has rebranded itself as a licensing shop after discontinuing hardware production [1]. Technology Focus - The primary technologies of Neonode include zForce and MultiSensing, which are central to its new business model [1]. - The shift to licensing aims to leverage its technological innovations in a more scalable manner [1]. Market Position - The company targets small- to mid-cap markets, which are often overlooked by investors, while also occasionally analyzing large-cap companies for broader market insights [1].

Group 1 - Neonode Inc. is reminding stockholders to vote their proxies ahead of the annual meeting scheduled for June 12, 2025, at 3:00 p.m. Central European Time [1] - The Board of Directors of Neonode unanimously recommends that stockholders vote FOR all proposals [1] - It is emphasized that shareholder participation is crucial to ensure a quorum for the meeting to proceed [2] Group 2 - The notice, proxy statement, proxy card, and annual report on Form 10-K are available online for stockholders [2] - A definitive proxy statement was filed with the U.S. Securities and Exchange Commission on April 30, 2025, urging shareholders to read it for important information regarding the proposals [2] - Contact information for the Chief Financial Officer and the President and CEO is provided for further inquiries [3]

STOCKHOLM, June 3, 2025 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) (the "Company" or "Neonode") will be added as a member of the U.S. small-cap Russell 2000 Index, effective after the U.S. market opens on June 30 as part of the 2025 Russell indexes reconstitution. Neonode, a provider of touch technology and optical sensing solutions for technologically demanding and regulated industries, debuted on the NASDAQ stock exchange in 2012 under the stock ticker symbol "NEON."Membership in the Russell 2000 Index, ...

Core Viewpoint - Neonode Inc. reported a significant decline in revenues for the quarter ended March 31, 2025, primarily due to reduced demand in its legacy business, particularly in the printer market, while the company is focusing on expanding its business opportunities and product roadmap to drive future growth [3][6]. Financial Summary - Revenues from continuing operations were $0.5 million, a 37.0% decrease compared to the same period in 2024 [6][9]. - License revenues were $0.5 million, reflecting a decrease of 35.7% year-over-year, attributed to lower demand from legacy customers [6]. - Revenues from non-recurring engineering were $16,000, a 61.0% decrease compared to the same period in 2024, mainly due to fewer projects [7]. - Operating expenses from continuing operations were $2.5 million, an 8.0% decrease compared to the same period in 2024 [7][9]. - Loss from continuing operations was $1.8 million, or $0.11 per share, compared to a loss of $1.7 million, or $0.11 per share for the same period in 2024 [8][9]. - Cash used by operations was $1.4 million, down from $1.9 million in the same period in 2024 [8][9]. Financial Position - Cash and accounts receivable totaled $15.7 million as of March 31, 2025, down from $17.2 million as of December 31, 2024 [10]. - Working capital for continuing operations was $14.1 million as of March 31, 2025, compared to $16.1 million as of December 31, 2024 [10]. - The company's financial position and liquidity are described as stable, enabling the execution of strategies to secure more licensing opportunities [10].

Financial Performance - Total revenues for Q1 2025 were $513,000, a decrease of 37% compared to $814,000 in Q1 2024[12] - License fees revenue decreased to $497,000 in Q1 2025 from $773,000 in Q1 2024, representing a decline of 36%[12] - Net loss for Q1 2025 was $1,733,000, an improvement from a net loss of $2,084,000 in Q1 2024[12] - Basic and diluted net loss per share improved to $(0.10) in Q1 2025 from $(0.14) in Q1 2024[12] - Net revenues for the three months ended March 31, 2025 were $513, a decrease from $814 in the same period of 2024, representing a decline of approximately 37%[54] - Loss from continuing operations was $1.8 million for the three months ended March 31, 2025, compared to a loss of $1.7 million for the same period in 2024[54] - The company reported a net loss per share of $0.10 for the three months ended March 31, 2025, compared to a net loss per share of $0.14 for the same period in 2024[51] - Total costs and expenses for the three months ended March 31, 2025 were $2.478 million, a decrease from $2.704 million in the same period of 2024[54] Assets and Liabilities - Total current assets decreased to $16,261,000 as of March 31, 2025, down from $17,685,000 as of December 31, 2024[10] - Total liabilities increased to $2,397,000 as of March 31, 2025, compared to $1,939,000 as of December 31, 2024[10] - Cash and cash equivalents at the end of Q1 2025 were $14,991,000, down from $16,427,000 at the end of 2024[20] - Working capital as of March 31, 2025, was $14.1 million, compared to $16.1 million as of December 31, 2024[82] - The accumulated deficit as of March 31, 2025, was approximately $225.8 million, compared to $224.1 million as of December 31, 2024[85] Operating Expenses - Operating expenses for Q1 2025 totaled $2,469,000, a decrease from $2,683,000 in Q1 2024[12] - Research and development expenses increased to $975,000 in Q1 2025 from $895,000 in Q1 2024[12] - Sales and marketing expenses decreased by 21.3% to $642,000 for the three months ended March 31, 2025, compared to $816,000 in the same period in 2024, primarily due to lower payroll costs[75] - General and administrative expenses were $852,000 for the three months ended March 31, 2025, down 12.3% from $972,000 in the same period in 2024, mainly due to reduced payroll costs[77] Revenue Sources - The company recognized revenues of approximately zero and $27,000 related to contract liabilities for the three months ended March 31, 2025 and 2024, respectively[34] - License fees revenue was $497,000 for the three months ended March 31, 2025, down 35.7% from $773,000 in the same period in 2024, primarily due to lower demand in printer and passenger car applications[69] - Non-recurring engineering revenue decreased by 61.0% to $16,000 for the three months ended March 31, 2025, compared to $41,000 for the same period in 2024, attributed to fewer projects[70] Cash Flow - Operating activities used cash of approximately $1.4 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively[28] - Net cash used in operating activities for the three months ended March 31, 2025, was $1.4 million, compared to $1.9 million for the same period in 2024[83] - Net cash used in investing activities for the three months ended March 31, 2025, was approximately $40,000, primarily for the purchase of property and equipment[84] Internal Controls and Risks - The company identified a material weakness in internal controls over financial reporting related to insufficient information technology general controls, specifically regarding the segregation of duties and management override risks[111] - A second material weakness was noted concerning the lack of sufficient controls to prevent material misstatements in income tax calculations, with plans to implement extended controls[112] - Management acknowledged that controls can only provide reasonable assurance of achieving control objectives, emphasizing the importance of cost-benefit evaluations in control design[113] - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that materially affected the internal control[114] - The company is not currently involved in any pending legal proceedings, although it may face ordinary course business disputes[116] - There have been no material changes to the risk factors previously disclosed in the Annual Report for the year ended December 31, 2024[117] Future Outlook - The company anticipates continued shipments of products incorporating its technology by current customers and expects to expand its customer base in 2025[63] - The ongoing geopolitical conflicts, including the war in Ukraine, may impact supply chains and economic conditions, potentially affecting the company's operations[66] - The company may require additional capital sources to continue operations and implement its strategy if operations do not become cash flow positive[88]

Financial Performance - Revenues from continuing operations were $0.5 million, a decrease of 37.0% compared to the same period in the prior year[6] - Operating expenses from continuing operations were $2.5 million, a decrease of 8.0% compared to the same period in the prior year[6] - Loss from continuing operations was $1.8 million, or $0.11 per share, compared to a loss of $1.7 million, or $0.11 per share for the same period in the prior year[9] - Net loss for the three months ended March 31, 2025, was $1,733 million, an improvement from a net loss of $2,084 million in the same period of 2024[25] Cash Flow and Liquidity - Cash used by operations was $1.4 million, down from $1.9 million for the same period in the prior year[9] - Net cash used in operating activities decreased to $1,360 million from $1,915 million year-over-year[25] - Cash and cash equivalents at the end of the period were $14,991 million, compared to $14,274 million at the end of the same period in 2024[25] - Cash paid for income taxes remained stable at $10 million for both periods[25] - Cash paid for interest decreased to $0 million from $1 million in the previous year[25] Revenue Breakdown - License revenues were $0.5 million, a decrease of 35.7% compared to the same period in 2024, primarily due to lower demand in the printer and passenger car touch applications[7] - Revenues from non-recurring engineering were $16,000, a 61.0% decrease compared to the same period in 2024[8] Assets and Liabilities - Cash and accounts receivable totaled $15.7 million as of March 31, 2025, compared to $17.2 million as of December 31, 2024[10] - Total assets decreased to $16.972 million as of March 31, 2025, down from $18.381 million as of December 31, 2024[17] - Accounts receivable and unbilled revenues showed a net change of $(5) million, improving from $(170) million year-over-year[25] - Inventory impairment loss was recorded at $0 million for the current period, a significant decrease from $278 million in the previous year[25] Operational Highlights - The company is focusing on expanding business opportunities and advancing its product roadmap across its core technology platforms: MultiSensing® and zForce®[3] - The CEO expressed optimism about the future, particularly regarding the zForce platform's potential in touch displays and rugged applications[4] Other Financial Metrics - Property and equipment obtained in exchange for finance lease obligations amounted to $28 million, compared to $0 million in the same period last year[25] - The effect of exchange rate changes on cash and cash equivalents resulted in a loss of $34 million, contrasting with a gain of $43 million in the previous year[25] - The company made principal payments on finance lease obligations totaling $2 million, down from $9 million in the same period last year[25]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Neonode (NEON) currently holding a Momentum Style Score of B [2][3] Group 2: Neonode's Performance Metrics - Neonode has a Zacks Rank of 2 (Buy), indicating strong potential for outperformance in the market [3] - Over the past week, NEON shares increased by 21.96%, significantly outperforming the Zacks Computer - Software industry, which rose by 5.93% [5] - In the last quarter, NEON shares rose by 45.96%, and over the past year, they surged by 483.18%, while the S&P 500 experienced declines of -8.61% and modest gains of 9.87% respectively [6] Group 3: Trading Volume and Earnings Outlook - NEON's average 20-day trading volume is 118,814 shares, which is a bullish indicator when combined with rising stock prices [7] - In terms of earnings estimates, NEON's consensus estimate improved from -$0.46 to -$0.32 over the past 60 days, with one upward revision and no downward revisions noted [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, NEON is positioned as a promising investment opportunity with a Momentum Score of B [11]

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse before exiting a trade, leading to potential losses [1][2]. - A predefined "Recent Price Strength" screen helps identify stocks with strong fundamentals that can sustain their upward trends, focusing on those trading in the upper portion of their 52-week high-low range [3]. Group 2: Company Spotlight - Neonode (NEON) - Neonode has shown a solid price increase of 46% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has experienced a price increase of 57.6% over the last four weeks, confirming that the upward trend is still intact [5]. - Currently, NEON is trading at 83.4% of its 52-week high-low range, suggesting it may be on the verge of a breakout [6]. Group 3: Fundamental Strength - NEON holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging a +25% annual return since 1988, indicating the effectiveness of this rating system [7]. Group 4: Investment Strategy - In addition to NEON, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - The key to successful stock-picking is ensuring that strategies have produced profitable results in the past, which can be backtested using tools like the Zacks Research Wizard [9].

Company Performance - Neonode (NEON) has returned approximately 10.1% year-to-date, significantly outperforming the average return of -17.1% for the Computer and Technology sector [4] - The Zacks Consensus Estimate for Neonode's full-year earnings has increased by 30.4% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Context - Neonode is part of the Computer - Software industry, which consists of 32 companies and currently ranks 76 in the Zacks Industry Rank. This industry has experienced a loss of about 13.4% year-to-date, highlighting Neonode's superior performance within this group [5] - The Computer and Technology group, which includes Neonode, ranks 5 within the Zacks Sector Rank, reflecting the overall strength of this sector [2] Comparison with Peers - Another stock in the Computer and Technology sector, PLDT (PHI), has also outperformed the sector with a year-to-date increase of 4% [4] - PLDT's consensus EPS estimate has risen by 0.3% over the past three months, and it holds a Zacks Rank of 2 (Buy), similar to Neonode [5]

Core Viewpoint - Neonode Inc. announced changes to its Board of Directors, with Didier Schreiber appointed as a Class I Director and Cecilia Edström resigning from the same position due to other commitments [1]. Group 1: Board Composition Changes - Didier Schreiber will join the Board as a Class I Director, bringing extensive experience from the automotive industry [1][2]. - Cecilia Edström will resign from her position as a Class I Director after serving from 2022 to 2025 [1][4]. Group 2: Didier Schreiber's Background - Didier Schreiber is the Owner and CEO of Rondiné Consulting and has held senior management roles at ZEEKR Technology EU AB/CEVT since 2014 [2]. - He holds a PhD in Combustion Technology from Ecole Centrale de Paris - Chalmers University of Technology, with applications on the Ariane rocket engine [2]. Group 3: Future Outlook - Schreiber expressed enthusiasm about joining Neonode's Board, highlighting the company's focus on technology and innovation, and its potential for profitable growth [3]. - Ulf Rosberg, Chairman of the Board, noted that Schreiber's automotive experience will be a significant asset during this pivotal phase for the company [4].