Neonode(NEON) - 2023 Q4 - Annual Results

Neonode 2023 Financial Results Press Release CEO's Comments and Strategic Update The CEO expressed disappointment with the 2023 revenue decline, leading to a strategic pivot to focus exclusively on licensing - The company is sharpening its strategy to focus on licensing going forward and is phasing out its Touch Sensor Module (TSM) product business[3] - A key achievement in 2023 was securing a driver monitoring software contract with a leading commercial vehicle manufacturer[4] - The new, licensing-focused strategy is anticipated to increase efficiency and help the company reach a positive cash flow more quickly[5] Financial Overview Neonode's FY2023 net revenues decreased 21.5% to $4.4 million, driven by declines in both licensing and product sales FY 2023 Key Financial Metrics vs. FY 2022 | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $4.4 million | $5.7 million | -21.5% | | Operating Expenses | $10.7 million | $10.2 million | +4.9% | | Net Loss | $10.1 million | $4.9 million | +106.1% | | Loss Per Share | $0.66 | $0.36 | +83.3% | | Cash Used by Operations | $6.3 million | $6.8 million | -7.4% | FY 2023 Revenue Breakdown vs. FY 2022 | Revenue Source | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | License Revenues | $3.8 million | $4.5 million | -14.9% | | Product Sales | $0.6 million | $1.0 million | -37.7% | | Non-recurring Engineering | $26,000 | $205,000 | -87.3% | - The gross margin for products was negative 630.6% in 2023, a steep drop from 22.0% in 2022, primarily due to one-time costs[9] Consolidated Financial Statements The consolidated financial statements detail Neonode's financial position and performance for the year ended December 31, 2023 Consolidated Balance Sheets As of December 31, 2023, Neonode's total assets decreased to $19.0 million from $21.2 million, primarily due to reduced inventory Key Balance Sheet Items (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $16,155 | $14,816 | | Inventory | $610 | $3,827 | | Total current assets | $18,620 | $20,798 | | Total assets | $19,014 | $21,198 | | Total current liabilities | $1,832 | $1,699 | | Total liabilities | $1,851 | $1,780 | | Total stockholders' equity | $17,163 | $19,418 | Consolidated Statements of Operations Neonode's FY2023 total revenues fell to $4.4 million, resulting in a gross loss and a widened net loss of $10.1 million Key Income Statement Items (in thousands, except per share data) | Account | 2023 | 2022 | | :--- | :--- | :--- | | Total revenues | $4,449 | $5,670 | | Total gross (loss) margin | $(93) | $4,866 | | Total operating expenses | $10,651 | $10,152 | | Operating loss | $(10,744) | $(5,286) | | Net loss attributable to Neonode Inc. | $(10,123) | $(4,883) | | Basic and diluted loss per share | $(0.66) | $(0.36) | Consolidated Statements of Comprehensive Loss Neonode's FY2023 comprehensive loss was $10.18 million, slightly exceeding net loss due to foreign currency translation adjustments Comprehensive Loss Breakdown (in thousands) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Net loss including noncontrolling interests | $(10,123) | $(5,283) | | Foreign currency translation adjustments | $(56) | $68 | | Comprehensive loss attributable to Neonode Inc. | $(10,179) | $(4,815) | Consolidated Statements of Stockholders' Equity Stockholders' equity decreased from $19.4 million to $17.2 million in 2023, driven by net loss partially offset by stock issuance 2023 Change in Stockholders' Equity (in thousands) | Item | Amount | | :--- | :--- | | Balance at Dec 31, 2022 | $19,418 | | Issuance of shares for cash, net | $7,866 | | Stock-based compensation | $58 | | Net loss | $(10,123) | | Foreign currency translation adjustment | $(56) | | Balance at Dec 31, 2023 | $17,163 | Consolidated Statements of Cash Flows In 2023, Neonode used $6.3 million in operating cash, generated $7.8 million from financing, increasing cash to $16.2 million Cash Flow Summary (in thousands) | Cash Flow Category | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(6,308) | $(6,808) | | Net cash used in investing activities | $(123) | $(52) | | Net cash provided by financing activities | $7,777 | $4,509 | | Net increase (decrease) in cash | $1,339 | $(2,567) | | Cash and cash equivalents at end of year | $16,155 | $14,816 | Company Information and Safe Harbor This section outlines Neonode Inc., a publicly traded company specializing in advanced optical sensing solutions, and includes a standard Safe Harbor statement - Neonode Inc. (NASDAQ:NEON), headquartered in Stockholm, Sweden, provides advanced optical sensing solutions to Fortune 500 companies[12] - The company's technology is deployed in over 90 million products, and it holds more than 100 patents worldwide[12] - The press release contains forward-looking statements subject to various risks and uncertainties detailed in the company's SEC filings[14][15]