Neonode(US:NEON)2023-08-10 13:20Financial Performance - Total revenues for Q2 2023 were $1,200,000, a decrease of 5.3% compared to $1,267,000 in Q2 2022[12] - The net loss attributable to Neonode Inc. for Q2 2023 was $1,507,000, compared to a net loss of $1,548,000 in Q2 2022, showing a slight improvement[12] - For the six months ended June 30, 2023, the net loss was $2.93 million, a decrease from a net loss of $3.13 million in the same period of 2022, representing a 6.4% improvement[25] - Total revenue for the three months ended June 30, 2023, was $1,200,000, a decrease of 5.3% compared to $1,267,000 in the same period of 2022[148] - Net loss attributable to Neonode Inc. was $2,932 million for the six months ended June 30, 2023, slightly up from $2,928 million in 2022[162] Revenue Breakdown - License fees contributed $1,094,000 to total revenues in Q2 2023, up from $953,000 in Q2 2022, representing a growth of 14.8%[12] - License fees accounted for 91.2% of total revenue, increasing by 14.8% to $1,094,000 from $953,000 year-over-year[148] - Product sales decreased by 60.0% to $84,000 from $210,000 in the prior year, representing 7.0% of total revenue[148] - Non-recurring engineering service revenue fell by 78.8% to $22,000 from $104,000, making up 1.8% of total revenue[148] - License fees increased by 9.0% to $2,242 million for the six months ended June 30, 2023, compared to $2,057 million in 2022, representing 91.4% of total revenue[149] Cash and Liquidity - Cash and cash equivalents increased to $20,291,000 as of June 30, 2023, up from $14,816,000 at the end of 2022, reflecting a growth of 36.5%[10] - Cash used in operating activities for the six months ended June 30, 2023, was $2.31 million, down from $5.21 million in the prior year, indicating a 55.7% reduction[25] - Cash and cash equivalents at the end of the period were $20.29 million, up from $12.43 million at the end of June 2022, reflecting a 63.1% increase[25] - The company raised $7.87 million through the issuance of common stock during the six months ended June 30, 2023, significantly improving liquidity[27] - As of June 30, 2023, the company had cash of $20.3 million, an increase from $14.8 million as of December 31, 2022, indicating improved liquidity[177] Operating Expenses - Operating expenses for Q2 2023 were $2,790,000, slightly down from $2,843,000 in Q2 2022, indicating a reduction of 1.9%[12] - Research and development expenses for the first half of 2023 totaled $1,865,000, down from $2,169,000 in the same period of 2022, a decrease of 14.0%[12] - General and administrative expenses increased by 17.4% to $2,422 million for the six months ended June 30, 2023, compared to $2,063 million in 2022[160] - The company reported operating lease costs of $129,000 for Q2 2023, down from $152,000 in Q2 2022, a decrease of about 15.1%[127] Assets and Equity - Total stockholders' equity rose to $24,281,000 as of June 30, 2023, compared to $19,418,000 at the end of 2022, an increase of 24.8%[10] - Total assets increased to $26,295,000 as of June 30, 2023, from $21,198,000 at the end of 2022, a growth of 24.0%[10] - The weighted average number of common shares outstanding increased to 15,359,000 as of June 30, 2023, compared to 13,578,000 in Q2 2022, an increase of 13.1%[12] Customer Concentration - As of June 30, 2023, four customers represented approximately 71% of consolidated accounts receivable and unbilled revenues, down from 83% for five customers as of December 31, 2022[51] - Major customers accounting for 10% or more of net revenues during the three months ended June 30, 2023 included Hewlett-Packard Company (37%), Alpine Electronics, Inc (15%), and Seiko Epson Corporation (14%)[54] Future Outlook - The company expects to reduce operating losses in the coming years through increased revenues and operational efficiencies[29] - Management has identified a need for additional capital to continue operations and implement its strategy, indicating potential future equity or debt financing[28] - The company may require additional capital sources beyond cash on hand and the ATM Facility to continue operations and implement its strategy[185] Inventory and Receivables - The accounts receivable balance as of June 30, 2023, was $1.3 million, net of allowances of approximately $30,000[40] - Inventory as of June 30, 2023, totaled $3.67 million, a decrease from $3.83 million at the end of 2022, representing a 4.2% decline[44] - Total accounts receivable and unbilled revenue, net, was $1,301,000 as of June 30, 2023, compared to $1,448,000 as of December 31, 2022[72] Tax and Deferred Assets - The company fully reserved its net deferred tax assets as of June 30, 2023, due to uncertainty in future pre-tax income[87] - The effective tax rate was (3)% for the six months ended June 30, 2023, compared to (2)% in 2022, due to withholding taxes from sales[161]