Neonode Reports Quarter Ended June 30, 2024 Financial Results

Core Viewpoint - Neonode Inc. reported mixed financial results for the second quarter and first half of 2024, with revenue growth in the second quarter but an overall decline in the first half, alongside increased operating expenses and net losses [2][3][4]. Financial Summary for Q2 2024 - Revenues reached $1.4 million, marking an 18.7% increase year-over-year [2]. - Operating expenses were $2.7 million, a decrease of 1.6% compared to the same period last year [2]. - The net loss was $1.7 million, or $0.11 per share, compared to a net loss of $1.5 million, or $0.10 per share, in the same quarter of the previous year [2][10]. - Cash used in operations was $1.2 million, up from $0.6 million in the same quarter last year [2][10]. - Cash and accounts receivable totaled $14.4 million as of June 30, 2024, down from $17.1 million as of December 31, 2023 [2][11]. Financial Summary for H1 2024 - Total revenue for the first half was $2.4 million, a slight decrease of 0.6% year-over-year [3]. - Operating expenses increased to $5.6 million, up 0.9% compared to the same period last year [3]. - The net loss for the first half was $3.8 million, or $0.25 per share, compared to a net loss of $2.9 million, or $0.19 per share, in the same period last year [3]. Revenue Breakdown - Licensing revenues for Q2 2024 were $0.6 million, a significant decrease of 43.9% year-over-year due to lower sales volumes [6]. - Product sales revenues surged to $0.6 million, a 641.7% increase compared to the same period last year, primarily driven by last time buy orders from customers [7]. - Non-recurring engineering revenues reached $0.2 million, a 750.0% increase year-over-year, mainly due to the ongoing Driver Monitoring System project with a commercial vehicle OEM [7]. Gross Margin and Operating Expenses - Gross margin for products was 26.0% in Q2 2024, down from 66.7% in the same period last year, impacted by increased costs and decreased licensing revenues [8]. - Operating expenses decreased by 1.6% in Q2 2024, attributed to lower payroll costs, although higher professional fees offset some of the savings [9].