2022 Q1 Form 10-Q Financial Statement

#000121390022025438 Filed on May 11, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2021 Q4 2021 Q3
Revenue $1.318M $1.489M $962.0K
YoY Change -20.84% -38.98% -35.65%
Cost Of Revenue $60.00K $358.0K $99.00K
YoY Change -78.34% -49.58% -50.75%
Gross Profit $1.258M $1.131M $863.0K
YoY Change -9.37% -34.62% -33.31%
Gross Profit Margin 95.45% 75.96% 89.71%
Selling, General & Admin $1.626M $69.05M $1.670M
YoY Change -13.28% 2996.37% -21.93%
% of Gross Profit 129.25% 6105.13% 193.51%
Research & Development $1.023M $10.00K $1.015M
YoY Change -10.42% -99.17% 12.65%
% of Gross Profit 81.32% 0.88% 117.61%
Depreciation & Amortization $45.00K $102.0K $154.0K
YoY Change -77.39% -49.0% -23.0%
% of Gross Profit 3.58% 9.02% 17.84%
Operating Expenses $2.649M $69.06M $2.685M
YoY Change -12.2% 1913.38% -11.68%
Operating Profit -$1.391M -$67.93M -$1.822M
YoY Change -14.61% 3895.76% 4.35%
Interest Expense $2.000K $66.06M -$43.00K
YoY Change -60.0% 65964.0% -490.91%
% of Operating Profit
Other Income/Expense, Net -$2.000K $3.000K
YoY Change -60.0% -72.73%
Pretax Income -$1.393M -$1.864M -$1.825M
YoY Change -14.75% 15.78% 3.87%
Income Tax $44.00K $42.00K $31.00K
% Of Pretax Income
Net Earnings -$1.437M -$1.906M -$1.856M
YoY Change -13.95% 15.1% 13.31%
Net Earnings / Revenue -109.03% -128.01% -192.93%
Basic Earnings Per Share $0.10 $0.15
Diluted Earnings Per Share -$101.6K -$115.0K -$149.1K
COMMON SHARES
Basic Shares Outstanding 13.58K shares 13.56M shares 11.54K shares
Diluted Shares Outstanding 13.58K shares 11.54K shares

Balance Sheet

Concept 2022 Q1 2021 Q4 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $15.13M $17.38M $5.496M
YoY Change 85.6% 66.03% -54.99%
Cash & Equivalents $15.13M $17.38M $5.496M
Short-Term Investments
Other Short-Term Assets $714.0K $836.0K $586.0K
YoY Change -12.93% -27.93% -41.98%
Inventory $3.553M $2.520M $2.402M
Prepaid Expenses
Receivables $1.142M $1.293M $763.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $20.54M $22.03M $9.247M
YoY Change 71.61% 50.39% -39.94%
LONG-TERM ASSETS
Property, Plant & Equipment $322.0K $376.0K $492.0K
YoY Change -60.44% -62.51% -54.1%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $772.0K $960.0K $980.0K
YoY Change -50.42% -50.05% -20.33%
TOTAL ASSETS
Total Short-Term Assets $20.54M $22.03M $9.247M
Total Long-Term Assets $772.0K $960.0K $980.0K
Total Assets $21.31M $22.99M $10.23M
YoY Change 57.56% 38.74% -38.48%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $804.0K $776.0K $635.0K
YoY Change 63.75% -28.41% -30.75%
Accrued Expenses $397.0K $371.0K $637.0K
YoY Change -14.44% -31.93% 1.27%
Deferred Revenue $103.0K $106.0K
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $150.0K $258.0K $369.0K
YoY Change -75.81% -66.49% -43.23%
Total Short-Term Liabilities $2.639M $2.973M $3.098M
YoY Change -16.14% -29.38% -7.93%
LONG-TERM LIABILITIES
Long-Term Debt $101.0K $65.00K $28.00K
YoY Change 102.0% -35.0% -90.0%
Other Long-Term Liabilities $95.00K $117.0K $36.00K
YoY Change -62.15% -68.97%
Total Long-Term Liabilities $95.00K $117.0K $36.00K
YoY Change -62.15% -68.97%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.639M $2.973M $3.098M
Total Long-Term Liabilities $95.00K $117.0K $36.00K
Total Liabilities $2.835M $3.155M $3.162M
YoY Change -17.73% -32.61% -13.18%
SHAREHOLDERS EQUITY
Retained Earnings -$204.0M -$202.6M -$201.1M
YoY Change 3.17% 3.29% 3.23%
Common Stock $14.00K $14.00K $12.00K
YoY Change 16.67% 16.67% 9.09%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $22.57M $23.88M $10.70M
YoY Change
Total Liabilities & Shareholders Equity $21.31M $22.99M $10.23M
YoY Change 57.56% 38.74% -38.48%

Cashflow Statement

Concept 2022 Q1 2021 Q4 2021 Q3
OPERATING ACTIVITIES
Net Income -$1.437M -$1.906M -$1.856M
YoY Change -13.95% 15.1% 13.31%
Depreciation, Depletion And Amortization $45.00K $102.0K $154.0K
YoY Change -77.39% -49.0% -23.0%
Cash From Operating Activities -$2.279M -$2.704M -$1.569M
YoY Change 14.52% 32.55% -11.85%
INVESTING ACTIVITIES
Capital Expenditures -$5.000K $0.00 $0.00
YoY Change -108.06% -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities -$5.000K $0.00 $0.00
YoY Change -91.94% -100.0% -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$61.00K 14.41M 462.0K
YoY Change -58.78% -8575.29% -96.29%
NET CHANGE
Cash From Operating Activities -$2.279M -2.704M -1.569M
Cash From Investing Activities -$5.000K 0.000 0.000
Cash From Financing Activities -$61.00K 14.41M 462.0K
Net Change In Cash -$2.257M 11.70M -1.107M
YoY Change -3.05% -620.18% -110.39%
FREE CASH FLOW
Cash From Operating Activities -$2.279M -$2.704M -$1.569M
Capital Expenditures -$5.000K $0.00 $0.00
Free Cash Flow -$2.274M -$2.704M -$1.569M
YoY Change 10.82% 35.2% -11.36%

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CY2022Q1 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-146000 usd
CY2021Q1 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-405000 usd
CY2022Q1 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
1121000 usd
CY2021Q1 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
493000 usd
CY2022Q1 us-gaap Increase Decrease In Prepaid Expenses Other
IncreaseDecreaseInPrepaidExpensesOther
-98000 usd
CY2021Q1 us-gaap Increase Decrease In Prepaid Expenses Other
IncreaseDecreaseInPrepaidExpensesOther
-299000 usd
CY2022Q1 neon Accounts Payable And Accrued Expenses
AccountsPayableAndAccruedExpenses
22000 usd
CY2021Q1 neon Accounts Payable And Accrued Expenses
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CY2022Q1 neon Increase Decrease In Deferred Revenues
IncreaseDecreaseInDeferredRevenues
-1000 usd
CY2021Q1 neon Increase Decrease In Deferred Revenues
IncreaseDecreaseInDeferredRevenues
-15000 usd
CY2022Q1 us-gaap Increase Decrease In Operating Liabilities
IncreaseDecreaseInOperatingLiabilities
-184000 usd
CY2021Q1 us-gaap Increase Decrease In Operating Liabilities
IncreaseDecreaseInOperatingLiabilities
-210000 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
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CY2021Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-1990000 usd
CY2022Q1 neon Purchase Of Property And Equipment
PurchaseOfPropertyAndEquipment
-5000 usd
CY2021Q1 neon Purchase Of Property And Equipment
PurchaseOfPropertyAndEquipment
-62000 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-5000 usd
CY2021Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-62000 usd
CY2022Q1 neon Principal Payments On Finance Lease Obligations
PrincipalPaymentsOnFinanceLeaseObligations
61000 usd
CY2021Q1 neon Principal Payments On Finance Lease Obligations
PrincipalPaymentsOnFinanceLeaseObligations
148000 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-61000 usd
CY2021Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-148000 usd
CY2022Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
88000 usd
CY2021Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
-128000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-2257000 usd
CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-2328000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
17383000 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
10473000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
15126000 usd
CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
8145000 usd
CY2022Q1 us-gaap Income Taxes Paid
IncomeTaxesPaid
44000 usd
CY2021Q1 us-gaap Income Taxes Paid
IncomeTaxesPaid
36000 usd
CY2022Q1 neon Cash Paid Net
CashPaidNet
2000 usd
CY2021Q1 neon Cash Paid Net
CashPaidNet
5000 usd
CY2022Q1 us-gaap Nature Of Operations
NatureOfOperations
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>1. Interim Period Reporting</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited interim condensed consolidated financial statements include all adjustments consisting of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim period presented. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of results for a full fiscal year or any other period.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying condensed consolidated financial statements for the three months ended March 31, 2022 and 2021 have been prepared by us, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally contained in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Operations</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Neonode Inc., which is collectively with its subsidiaries referred to as “Neonode” or the “Company” in this report, develops advanced optical sensing solutions for contactless touch, touch, gesture sensing, and scene analysis solutions using advanced machine learning algorithms to detect and track persons and objects in video streams for cameras and other types of imagers. We market and sell our contactless touch, touch, and gesture sensing products and solutions based on our zForce technology platform, and our scene analysis solutions based on our MultiSensing technology platform. We offer our solutions to customers in many different markets and segments including, but not limited to, office equipment, automotive, industrial automation, medical, military and avionics.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In our operations, we have historically focused on three different business areas, human machine interface (“HMI”) Solutions, HMI Products and Remote Sensing Solutions. On May 4, 2021, we announced a new strategy and organizational update targeting an increased focus on the Company’s contactless touch business and on current market opportunities in North America (“AMER”), Asia-Pacific (“APAC”), and Europe, Middle East and Africa (“EMEA”). We thereby changed from a business area organization to a regional sales organization going forward. Revenues are however primarily monitored for each of our revenue streams consisting of license fees, product sales and non-recurring engineering fees.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Liquidity</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have incurred significant operating losses and negative cash flows from operations since our inception. The Company incurred net losses of approximately $1.4 million and $1.6 million for the three months ended March 31, 2022 and 2021, respectively, and had an accumulated deficit of approximately $204.0 million and $202.6 million as of March 31, 2022 and December 31, 2021, respectively. In addition, operating activities used cash of approximately $2.3 million and $2.0 million for the three months ended March 31, 2022 and 2021, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The condensed consolidated financial statements included in this report have been prepared on a going concern basis, which contemplates continuity of operations and the realization of assets and the repayment of liabilities in the ordinary course of business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management evaluated the significance of the Company’s operating loss and determined that the Company’s current operating plan and sources of potential capital would be sufficient to alleviate concerns about the Company’s ability to continue as a going concern.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the future, we may require sources of capital in addition to cash on hand to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek equity investments or debt arrangements. No assurances can be given that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available to us on acceptable terms, or at all, we may be unable to adequately fund our business plans, which could have a negative effect on our business, results of operations and financial condition. If funds are available through the issuance of equity or debt securities, the issuance of equity securities or securities convertible into equity could dilute the value of shares of our common stock and cause the market price to fall, and the issuance of debt securities could impose restrictive covenants on us that could impair our ability to engage in certain business transactions.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We expect revenues will enable us to reduce our operating losses in coming years. In addition, we intend to continue to implement various measures to improve our operational efficiencies. No assurances can be given that management will be successful in meeting its revenue targets and reducing its operating loss.</p>
CY2022Q1 neon Net Losses
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1400000 usd
CY2021Q1 neon Net Losses
NetLosses
1600000 usd
CY2022Q1 us-gaap Retained Earnings Appropriated
RetainedEarningsAppropriated
204000000 usd
CY2021Q1 us-gaap Retained Earnings Appropriated
RetainedEarningsAppropriated
202600000 usd
CY2022Q1 neon Net Cash Provided By Used In Operating Activity
NetCashProvidedByUsedInOperatingActivity
2300000 usd
CY2021Q1 neon Net Cash Provided By Used In Operating Activity
NetCashProvidedByUsedInOperatingActivity
2000000 usd
CY2022Q1 neon Voting Rights Percentage
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0.50 pure
CY2022Q1 us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Estimates and Judgments</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preparation of financial statements in conformity with U.S. GAAP requires making estimates and judgments that affect, at the date of the financial statements, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Actual results could differ from these estimates and judgments.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Significant estimates and judgments include, but are not limited to: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, the standalone selling price of performance obligations, and transaction prices and assessing transfer of control; measuring variable consideration and other obligations such as product returns and refunds, and product warranties; provisions for uncollectible receivables; determining the net realizable value of inventory; recoverability of capitalized project costs and long-lived assets; for leases, determining whether a contract contains a lease, allocating consideration between lease and non-lease components, determining incremental borrowing rates, and identifying reassessment events, such as modifications; the valuation allowance related to our deferred tax assets; and the fair value of options issued as stock-based compensation. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2021Q4 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
36000 usd
CY2020Q4 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
25000 usd
CY2022Q1 us-gaap Inventory Raw Materials
InventoryRawMaterials
2574000 usd
CY2021Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
1446000 usd
CY2021Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
10000 usd
CY2022Q1 us-gaap Inventory Finished Goods
InventoryFinishedGoods
979000 usd
CY2021Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
1064000 usd
CY2022Q1 us-gaap Inventory Net
InventoryNet
3553000 usd
CY2021Q4 us-gaap Inventory Net
InventoryNet
2520000 usd
CY2022Q1 neon Provisions For Warranty Issued
ProvisionsForWarrantyIssued
-3000 usd
CY2021 neon Provisions For Warranty Issued
ProvisionsForWarrantyIssued
11000 usd
CY2022Q1 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
33000 usd
CY2021Q4 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
36000 usd
CY2022Q1 neon Term Of Stock Options Description
TermOfStockOptionsDescription
Stock options granted under the 2006, 2015 and 2020 Plans are exercisable over a maximum term of 10 years from the date of grant, vest in various installments over a one to four-year period and have exercise prices reflecting the market value of the shares of common stock on the date of grant.
CY2021Q3 neon Plaintiffs Attorneys Fees And Expenses
PlaintiffsAttorneysFeesAndExpenses
400000 usd
CY2022Q1 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.02 pure
CY2022Q1 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
33000 usd
CY2021Q1 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
-166000 usd
CY2022Q1 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
1000 usd
CY2021Q1 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
82000 usd
CY2022Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Concentration of Credit and Business Risks</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our customers are located in the United States, Europe and Asia.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of March 31, 2022, five of our customers represented approximately 85% of our consolidated accounts receivable and unbilled revenues.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2021, four of our customers represented approximately 76% of our consolidated accounts receivable and unbilled revenues.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2022 are as follows:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hewlett-Packard Company – 32%</span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Seiko Epson – 17%</span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">LG – 15%</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alps Alpine – 11%</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2021 are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in; text-align: justify"> </td> <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Hewlett-Packard Company – 19%</span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">LG – 17%</span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Seiko Epson – 15%</span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Lexmark – 14%</span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Alps Alpine – 13%</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2022Q1 neon Number Of Customers
NumberOfCustomers
5 pure
CY2022Q1 neon Accounts Receivable Percentage
AccountsReceivablePercentage
0.85 pure
CY2021 neon Number Of Customers
NumberOfCustomers
4 pure
CY2021 neon Accounts Receivable Percentage
AccountsReceivablePercentage
0.76 pure
CY2022Q1 neon Revenues Percentage
RevenuesPercentage
0.10 pure
CY2021Q1 neon Revenues Percentage
RevenuesPercentage
0.10 pure
CY2022Q1 neon Reduction Of Our Accounts Receivable And Revenue
ReductionOfOurAccountsReceivableAndRevenue
64000 usd
CY2021 neon Reduction Of Our Accounts Receivable And Revenue
ReductionOfOurAccountsReceivableAndRevenue
69000 usd
CY2022Q1 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
1142000 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
1293000 usd
CY2022Q1 us-gaap Deferred Revenue
DeferredRevenue
103000 usd
CY2021Q4 us-gaap Deferred Revenue
DeferredRevenue
106000 usd
CY2022Q1 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
103000 usd
CY2021Q4 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
106000 usd
CY2022Q1 neon Recognized Revenues
RecognizedRevenues
9000 usd
CY2022Q1 us-gaap Advertising Expense
AdvertisingExpense
46000 usd
CY2021Q1 us-gaap Advertising Expense
AdvertisingExpense
19000 usd
CY2022Q1 neon Outstanding Voting Shares Percentage
OutstandingVotingSharesPercentage
0.50 pure
CY2022Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
14.4
CY2022Q1 neon Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Share Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicShareValue
2500 shares
CY2022Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
0 usd
CY2022Q1 neon Gross Sales Price Percentage
GrossSalesPricePercentage
0.03 pure
CY2020Q3 neon Description Of Shares Of Common Stock
DescriptionOfSharesOfCommonStock
stockholders approved a proposal to increase the number of authorized shares of our common stock to 25,000,000 shares. Accordingly, on November 5, 2020, we filed an amendment to the Neonode Inc. Restated Certificate of Incorporation, as amended (our “Certificate of Incorporation”), with the Secretary of State of the State of Delaware to increase the number of authorized shares of our common stock to 25,000,000 shares.
CY2021Q3 us-gaap Shares Issued
SharesIssued
12830 shares
CY2021Q4 us-gaap Shares Issued
SharesIssued
14735 shares
CY2021Q4 us-gaap Sale Of Stock Number Of Shares Issued In Transaction
SaleOfStockNumberOfSharesIssuedInTransaction
1808000 shares
CY2021Q4 us-gaap Sale Of Stock Price Per Share
SaleOfStockPricePerShare
7.75
CY2021Q4 us-gaap Proceeds From Debt Net Of Issuance Costs
ProceedsFromDebtNetOfIssuanceCosts
13100000 usd
CY2022Q1 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
0 shares
CY2021Q4 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
431368 shares
CY2020Q4 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
37288 shares
CY2020Q4 neon Market Value Percentage
MarketValuePercentage
0.30 pure
CY2020 us-gaap Payments For Merger Related Costs
PaymentsForMergerRelatedCosts
75000 usd
CY2020 neon Stock Related Cost Percentage
StockRelatedCostPercentage
0.30 pure
CY2020 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
77000 usd
CY2021Q3 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
12830 shares
CY2021Q3 neon Market Value Percentage
MarketValuePercentage
0.30 pure
CY2021Q4 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
14735 shares
CY2021Q4 neon Market Value Percentage
MarketValuePercentage
0.30 pure
CY2021 us-gaap Payments For Merger Related Costs
PaymentsForMergerRelatedCosts
46000 usd
CY2021 neon Stock Related Cost Percentage
StockRelatedCostPercentage
0.30 pure
CY2021 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
38000 usd
CY2022Q1 us-gaap Cost Of Goods And Services Sold Amortization
CostOfGoodsAndServicesSoldAmortization
39000 usd
CY2021Q1 us-gaap Cost Of Goods And Services Sold Amortization
CostOfGoodsAndServicesSoldAmortization
23000 usd
CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
9500 shares
CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
26.19
CY2022Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
7000 shares
CY2022Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
30.4
CY2022Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2500 shares
CY2013Q2 neon Nonrecurring Engineering Costs Description
NonrecurringEngineeringCostsDescription
On April 25, 2013, we entered into an Analog Device Development Agreement with an effective date of December 6, 2012 (the “NN1002 Agreement”) with Texas Instruments (“TI”) pursuant to which TI agreed to integrate our intellectual property into an ASIC. Under the terms of the NN1002 Agreement, we agreed to pay TI $500,000 of non-recurring engineering costs at the rate of $0.25 per ASIC for each of the first 2,000,000 ASICs sold.
CY2022Q1 neon Nonrecurring Engineering Costs Description
NonrecurringEngineeringCostsDescription
we had made no payments to TI under the NN1002 Agreement.
CY2022Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 pure
CY2022Q1 us-gaap Revenues
Revenues
1318000 usd
CY2022Q1 neon Revenue Percentage Net
RevenuePercentageNet
1 pure
CY2021Q1 us-gaap Revenues
Revenues
1665000 usd
CY2021Q1 neon Revenue Percentage Net
RevenuePercentageNet
1 pure
CY2022Q1 us-gaap Noncurrent Assets
NoncurrentAssets
21307000 usd
CY2021Q4 us-gaap Noncurrent Assets
NoncurrentAssets
22922000 usd
CY2022Q1 us-gaap Lessor Operating Lease Description
LessorOperatingLeaseDescription
Our leases have remaining lease terms of two months to two years. One of our primary operating leases includes options to extend the lease for one to three years and the other primary lease includes an option to annually prolong; those operating leases also include options to terminate the leases within one year.
CY2022Q1 us-gaap Lessor Operating Lease Option To Extend
LessorOperatingLeaseOptionToExtend
Our Stockholm corporate office lease has a remaining lease term of under one year and both of our leases are automatically renewed at a cost increase of 2% on an annual basis, unless we provide written notice nine months prior to the respective expiration dates.
CY2022Q1 us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
30000 usd
CY2021Q1 us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
169000 usd
CY2022Q1 us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
2000 usd
CY2021Q1 us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
4000 usd
CY2022Q1 neon Finance Lease Cost
FinanceLeaseCost
32000 usd
CY2021Q1 neon Finance Lease Cost
FinanceLeaseCost
173000 usd
CY2022Q1 us-gaap Short Term Lease Cost
ShortTermLeaseCost
44000 usd
CY2021Q1 us-gaap Short Term Lease Cost
ShortTermLeaseCost
38000 usd
CY2021Q1 us-gaap Finance Lease Weighted Average Remaining Lease Term1
FinanceLeaseWeightedAverageRemainingLeaseTerm1
P0Y10M24D
CY2022Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
184000 usd
CY2021Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
210000 usd
CY2022Q1 neon Operating Cash Flows From Finance Leases
OperatingCashFlowsFromFinanceLeases
-2000 usd
CY2021Q1 neon Operating Cash Flows From Finance Leases
OperatingCashFlowsFromFinanceLeases
-4000 usd
CY2022Q1 neon Financing Cash Flow From Finance Leases
FinancingCashFlowFromFinanceLeases
-61000 usd
CY2021Q1 neon Financing Cash Flow From Finance Leases
FinancingCashFlowFromFinanceLeases
-148000 usd
CY2022Q1 neon Operating Lease Rightofuse Other Assets
OperatingLeaseRightofuseOtherAssets
450000 usd
CY2021Q4 neon Operating Lease Rightofuse Other Assets
OperatingLeaseRightofuseOtherAssets
584000 usd
CY2022Q1 neon Operating Lease Obligations Current
OperatingLeaseObligationsCurrent
245000 usd
CY2021Q4 neon Operating Lease Obligations Current
OperatingLeaseObligationsCurrent
425000 usd
CY2022Q1 neon Operating Lease Liabilities Noncurrent Net
OperatingLeaseLiabilitiesNoncurrentNet
95000 usd
CY2021Q4 neon Operating Lease Liabilities Noncurrent Net
OperatingLeaseLiabilitiesNoncurrentNet
117000 usd
CY2022Q1 neon Operating Lease Liabilities
OperatingLeaseLiabilities
340000 usd
CY2021Q4 neon Operating Lease Liabilities
OperatingLeaseLiabilities
542000 usd
CY2022Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
2707000 usd
CY2021Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
3463000 usd
CY2022Q1 neon Accumulated Depreciation Depletion And Amortization Property Plant And Equipment Excluding Capital Leased Asset
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipmentExcludingCapitalLeasedAsset
2472000 usd
CY2021Q4 neon Accumulated Depreciation Depletion And Amortization Property Plant And Equipment Excluding Capital Leased Asset
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipmentExcludingCapitalLeasedAsset
3199000 usd
CY2022Q1 neon Finance Lease Property And Equipment Net
FinanceLeasePropertyAndEquipmentNet
235000 usd
CY2021Q4 neon Finance Lease Property And Equipment Net
FinanceLeasePropertyAndEquipmentNet
264000 usd
CY2022Q1 neon Finance Lease Obligations Current
FinanceLeaseObligationsCurrent
150000 usd
CY2021Q4 neon Finance Lease Obligations Current
FinanceLeaseObligationsCurrent
258000 usd
CY2022Q1 neon Finance Lease Liabilities Non Current
FinanceLeaseLiabilitiesNonCurrent
101000 usd
CY2021Q4 neon Finance Lease Liabilities Non Current
FinanceLeaseLiabilitiesNonCurrent
65000 usd
CY2022Q1 us-gaap Finance Lease Liability
FinanceLeaseLiability
251000 usd
CY2021Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
323000 usd
CY2022Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y6M
CY2021Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y6M
CY2022Q1 us-gaap Finance Lease Weighted Average Remaining Lease Term1
FinanceLeaseWeightedAverageRemainingLeaseTerm1
P2Y
CY2021Q1 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.02 pure
CY2021Q4 neon Lessee Operating Lease Liability Payment Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentDueNextTwelveMonths
219000 usd
CY2021Q4 neon Operating Leases Future Minimum Payment Due Current
OperatingLeasesFutureMinimumPaymentDueCurrent
79000 usd
CY2021Q4 neon Lessee Operating Lease Liability Payment Due Three Year
LesseeOperatingLeaseLiabilityPaymentDueThreeYear
59000 usd
CY2021Q4 neon Operating Leases Future Minimum Payment Due
OperatingLeasesFutureMinimumPaymentDue
357000 usd
CY2021Q4 us-gaap Receivable With Imputed Interest Net Amount
ReceivableWithImputedInterestNetAmount
17000 usd
CY2021Q4 neon Total Lease Liabilities
TotalLeaseLiabilities
340000 usd
CY2021Q4 neon Less Current Portion
LessCurrentPortion
-245000 usd
CY2021Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
95000 usd
CY2021Q4 neon Capital Leases Future Minimum Payment Due In Three Years
CapitalLeasesFutureMinimumPaymentDueInThreeYears
30000 usd
CY2021Q4 neon Capital Leases Future Minimum Payment Due In Four Years
CapitalLeasesFutureMinimumPaymentDueInFourYears
11000 usd
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13576 shares
CY2021Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
11504 shares
CY2022Q1 neon Net Loss Attributable To Neonode Inc
NetLossAttributableToNeonodeInc
-1380000 usd
CY2021Q1 neon Net Loss Attributable To Neonode Inc
NetLossAttributableToNeonodeInc
-1568000 usd
CY2022Q1 us-gaap Net Income Loss Per Outstanding Limited Partnership And General Partnership Unit Basic And Diluted
NetIncomeLossPerOutstandingLimitedPartnershipAndGeneralPartnershipUnitBasicAndDiluted
-0.1
CY2021Q1 us-gaap Net Income Loss Per Outstanding Limited Partnership And General Partnership Unit Basic And Diluted
NetIncomeLossPerOutstandingLimitedPartnershipAndGeneralPartnershipUnitBasicAndDiluted
-0.14
CY2022Q1 us-gaap Inventory Work In Process
InventoryWorkInProcess
usd
CY2022Q1 dei Amendment Flag
AmendmentFlag
false
CY2022Q1 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2022Q1 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q1
CY2022Q1 dei Entity Central Index Key
EntityCentralIndexKey
0000087050

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