Neonode(NEON) - 2025 Q3 - Quarterly Results

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]