Neonode(NEON) - 2024 Q1 - Quarterly Results

Neonode Q1 2024 Financial Results Press Release Financial and Operational Highlights Neonode's Q1 2024 revenue fell 19.1% to $1.0 million, primarily from reduced licensing fees, leading to a wider $2.1 million net loss amidst a strategic business model transition Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Change vs. Q1 2023 | | :--- | :--- | :--- | | Revenue | $1.0 million | -19.1% | | Operating Expenses | $2.9 million | +3.3% | | Net Loss | $2.1 million | Increased from $1.4 million | | Loss Per Share | $0.14 | Increased from $0.09 | | Cash Used by Operations | $1.9 million | Increased from $1.7 million | Q1 2024 Revenue Breakdown (vs. Q1 2023) | Revenue Source | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | License Revenues | $0.8 million | $1.1 million | -32.7% | | Product Sales | $0.2 million | $0.1 million | +96.1% | | Non-recurring Engineering | $41,000 | $3,000 | +1,266.7% | - The company is undergoing a strategic change to focus entirely on its licensing business and phase out its products business, which led to increased product sales from last-time buy orders[3] - Product gross margin was negative 90.0% due to a one-time inventory impairment loss related to the phasing out of touch sensor module manufacturing[7] - The company highlights increased interest in its driver and in-cabin monitoring solutions following an award from a leading commercial vehicle OEM[4] - Cash and accounts receivable totaled $15.3 million as of March 31, 2024, a decrease from $17.1 million as of December 31, 2023[11] Consolidated Financial Statements Neonode's Q1 2024 consolidated financial statements reflect decreased total assets, a $2.1 million net loss, and $1.9 million cash used in operations Consolidated Balance Sheets Neonode's total assets decreased to $16.9 million as of March 31, 2024, primarily due to reduced cash, with stockholders' equity declining to $15.0 million Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $14,274 | $16,155 | | Total current assets | $16,593 | $18,620 | | Total assets | $16,921 | $19,014 | | Total current liabilities | $1,862 | $1,832 | | Total liabilities | $1,874 | $1,851 | | Total stockholders' equity | $15,047 | $17,163 | Consolidated Statements of Operations Neonode's Q1 2024 total revenues decreased to $1.01 million, resulting in a wider operating loss of $2.25 million and a net loss of $2.08 million Statement of Operations Summary (in thousands, except per share data) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $1,014 | $1,253 | | Total gross margin | $617 | $1,206 | | Total operating expenses | $2,871 | $2,778 | | Operating loss | $(2,254) | $(1,572) | | Net loss | $(2,084) | $(1,425) | | Basic and diluted loss per share | $(0.14) | $(0.09) | Consolidated Statements of Comprehensive Loss Neonode's total comprehensive loss for Q1 2024 increased to $2.118 million, primarily due to the net loss and a negative foreign currency translation adjustment Comprehensive Loss Summary (in thousands) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss | $(2,084) | $(1,425) | | Foreign currency translation adjustments | $(34) | $35 | | Other comprehensive loss | $(2,118) | $(1,390) | Consolidated Statements of Stockholders' Equity Stockholders' equity decreased from $17.16 million to $15.05 million as of March 31, 2024, primarily due to the $2.08 million net loss - Total stockholders' equity decreased from $17,163 thousand on Dec 31, 2023, to $15,047 thousand on March 31, 2024, primarily driven by the quarterly net loss of $2,084 thousand[22] Consolidated Statements of Cash Flows Net cash used in operating activities increased to $1.9 million in Q1 2024, with cash and equivalents decreasing to $14.3 million due to no significant financing activities Cash Flow Summary (in thousands) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,915) | $(1,698) | | Net cash (used in) provided by financing activities | $(9) | $7,838 | | Net change in cash and cash equivalents | $(1,881) | $6,165 | | Cash and cash equivalents at end of period | $14,274 | $20,981 |