Workflow
Neonode(NEON) - 2024 Q4 - Annual Report
NEONNeonode(NEON)2025-03-21 13:22

Revenue Performance - Total net revenues decreased by 18.8% to 3.1millionin2024from3.1 million in 2024 from 3.8 million in 2023, primarily due to lower license revenues offset by higher non-recurring engineering revenues [113]. - License fees revenue fell by 29.3% to 2.7millionin2024,drivenbyreduceddemandfromlegacycustomersinprinterandpassengercartouchapplications[115].−Non−recurringengineeringrevenuessurgedby1,519.22.7 million in 2024, driven by reduced demand from legacy customers in printer and passenger car touch applications [115]. - Non-recurring engineering revenues surged by 1,519.2% to 0.4 million in 2024, attributed to a new project with a commercial vehicle OEM and an agreement with NEXTY Electronics [115]. Financial Performance - Gross margin decreased to 96.3% in 2024 from 99.7% in 2023, reflecting an increase in non-recurring engineering projects [116]. - The net loss for 2024 was 5.9million,comparedtoanetlossof5.9 million, compared to a net loss of 5.1 million in 2023, reflecting ongoing operational challenges [123]. - The accumulated deficit increased to approximately 224.1millionasofDecember31,2024,from224.1 million as of December 31, 2024, from 217.6 million in 2023, highlighting ongoing financial strain [132]. Expenses - Research and development expenses decreased by 10.1% to 3.4millionin2024,mainlyduetolowerpayrollandrelatedcosts[117].−Generalandadministrativeexpensesincreasedby15.33.4 million in 2024, mainly due to lower payroll and related costs [117]. - General and administrative expenses increased by 15.3% to 3.8 million in 2024, primarily due to higher payroll and professional fees [120]. - The company recorded rent expenses of approximately 449,000and449,000 and 428,000 for the years ended December 31, 2024 and 2023, respectively [141]. Liquidity and Capital Resources - Cash and cash equivalents as of December 31, 2024, were 16.4million,slightlyupfrom16.4 million, slightly up from 16.2 million in 2023, indicating stable liquidity [124]. - Working capital remained unchanged at 16.1millionasofDecember31,2024,comparedtothepreviousyear[125].−Thecompanysoldanaggregateof1,423,441sharesofcommonstockundertheLadenburgATMFacility,generatingnetproceedsof16.1 million as of December 31, 2024, compared to the previous year [125]. - The company sold an aggregate of 1,423,441 shares of common stock under the Ladenburg ATM Facility, generating net proceeds of 5.8 million after expenses [149]. - For the year ended December 31, 2023, the company sold 903,716 shares under the previous ATM Facility, resulting in net proceeds of 7.9million[150].−ThecompanymayrequireadditionalcapitalsourcesbeyondcashonhandandtheATMFacilitytocontinueoperationsandimplementitsstrategy[151].−Therearenoassurancesthatthecompanywillsuccessfullyobtainadditionalfinancingonreasonableterms,whichcouldnegativelyimpactitsbusinessandfinancialcondition[152].−Thecompanyhasnooff−balancesheetfinancingarrangementsthatcouldaffectitsliquidityorcapitalresources[139].OperationalCommitments−Thecompanyhasaleasefor6,684squarefeetofofficespaceinStockholm,Sweden,validthroughNovember2026[140].−Thecompanyhasacommissionobligationof3.07.9 million [150]. - The company may require additional capital sources beyond cash on hand and the ATM Facility to continue operations and implement its strategy [151]. - There are no assurances that the company will successfully obtain additional financing on reasonable terms, which could negatively impact its business and financial condition [152]. - The company has no off-balance sheet financing arrangements that could affect its liquidity or capital resources [139]. Operational Commitments - The company has a lease for 6,684 square feet of office space in Stockholm, Sweden, valid through November 2026 [140]. - The company has a commission obligation of 3.0% on gross sales price per share sold under the Ladenburg Sales Agreement [147]. Foreign Exchange Risk - The company is subject to foreign currency exchange rate risk due to its foreign subsidiaries operating in local currencies such as the Swedish Krona, Japanese Yen, and South Korean Won [153]. Engineering Agreements - The company has entered into a non-recurring engineering development agreement with Texas Instruments, agreeing to pay 500,000 for engineering costs based on ASIC sales [143].