Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 03, 2023 | Jun. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | NEONODE INC. | ||
Trading Symbol | NEON | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 15,359,481 | ||
Entity Public Float | $ 50,079,949 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000087050 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-35526 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-1517641 | ||
Entity Address, Address Line One | Karlavägen 100 | ||
Entity Address, Postal Zip Code | 115 26 | ||
Entity Address, City or Town | Stockholm | ||
Entity Address, Country | SE | ||
City Area Code | +46 (0) | ||
Local Phone Number | 8 667 17 17 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Auditor Firm ID | 170 | ||
Auditor Name | KMJ Corbin & Company LLP | ||
Auditor Location | Irvine, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 14,816 | $ 17,383 |
Accounts receivable and unbilled revenues, net | 1,448 | 1,293 |
Inventory | 3,827 | 2,520 |
Prepaid expenses and other current assets | 707 | 836 |
Total current assets | 20,798 | 22,032 |
Property and equipment, net | 282 | 376 |
Operating lease right-of-use assets, net | 118 | 584 |
Total assets | 21,198 | 22,992 |
Current liabilities: | ||
Accounts payable | 334 | 776 |
Accrued payroll and employee benefits | 951 | 1,037 |
Accrued expenses | 200 | 371 |
Contract liabilities | 36 | 106 |
Current portion of finance lease obligations | 95 | 258 |
Current portion of operating lease obligations | 83 | 425 |
Total current liabilities | 1,699 | 2,973 |
Finance lease obligations, net of current portion | 46 | 65 |
Operating lease obligations, net of current portion | 35 | 117 |
Total liabilities | 1,780 | 3,155 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, 25,000,000 shares authorized, with par value of $0.001; 14,455,765 and 13,575,952 shares issued and outstanding at December 31, 2022 and 2021, respectively | 14 | 14 |
Additional paid-in capital | 227,235 | 226,880 |
Accumulated other comprehensive loss | (340) | (408) |
Accumulated deficit | (207,491) | (202,608) |
Total Neonode Inc. stockholders’ equity | 19,418 | 23,878 |
Noncontrolling interests | (4,041) | |
Total stockholders’ equity | 19,418 | 19,837 |
Total liabilities and stockholders’ equity | $ 21,198 | $ 22,992 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 14,455,765 | 13,575,952 |
Common stock, shares outstanding | 14,455,765 | 13,575,952 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | ||
License fees | $ 4,470 | $ 4,787 |
Products | 995 | 955 |
Non-recurring engineering | 205 | 94 |
Total revenues | 5,670 | 5,836 |
Cost of revenues: | ||
Products | 776 | 922 |
Non-recurring engineering | 28 | 33 |
Total cost of revenues | 804 | 955 |
Total gross margin | 4,866 | 4,881 |
Operating expenses: | ||
Research and development | 3,963 | 3,546 |
Sales and marketing | 2,034 | 2,839 |
General and administrative | 4,155 | 5,603 |
Total operating expenses | 10,152 | 11,988 |
Operating loss | (5,286) | (7,107) |
Other income (expense): | ||
Interest income (expense), net | 100 | (15) |
Other income | 21 | |
Total other income (expense) | 121 | (15) |
Loss before provision for income taxes | (5,165) | (7,122) |
Provision for income taxes | 118 | 146 |
Net loss including noncontrolling interests | (5,283) | (7,268) |
Less: net loss attributable to noncontrolling interests | 400 | 818 |
Net loss attributable to Neonode Inc. | $ (4,883) | $ (6,450) |
Loss per common share: | ||
Basic loss per share (in Dollars per share) | $ (0.36) | $ (0.54) |
Basic – weighted average number of common shares outstanding (in Shares) | 13,632 | 11,907 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Diluted loss per share (in Dollars per share) | $ (0.36) | $ (0.54) |
Diluted – weighted average number of common shares outstanding (in Shares) | 13,632 | 11,907 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss including noncontrolling interests | $ (5,283) | $ (7,268) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 68 | (4) |
Comprehensive loss | (5,215) | (7,272) |
Less: Comprehensive loss attributable to noncontrolling interests | 400 | 818 |
Comprehensive loss attributable to Neonode Inc. | $ (4,815) | $ (6,454) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Common Stock Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Neonode Inc. Stockholders’ Equity | Noncontrolling Interests | Total Stockholders’ Equity [Member] |
Balance at Dec. 31, 2020 | $ 12 | $ 211,663 | $ (404) | $ (196,158) | $ 15,113 | $ (3,223) | $ 11,890 |
Balance (in Shares) at Dec. 31, 2020 | 11,504 | ||||||
Issuance of shares for cash, net of offering costs | $ 2 | 15,060 | 15,062 | 15,062 | |||
Issuance of shares for cash, net of offering costs (in Shares) | 2,044 | ||||||
Stock-based compensation | 157 | 157 | 157 | ||||
Stock-based compensation (in Shares) | 28 | ||||||
Foreign currency translation adjustment | (4) | (4) | (4) | ||||
Net loss | (6,450) | (6,450) | (818) | (7,268) | |||
Balance at Dec. 31, 2021 | $ 14 | 226,880 | (408) | (202,608) | 23,878 | (4,041) | 19,837 |
Balance (in Shares) at Dec. 31, 2021 | 13,576 | ||||||
Issuance of shares for cash, net of offering costs | 4,686 | 4,686 | 4,686 | ||||
Issuance of shares for cash, net of offering costs (in Shares) | 886 | ||||||
Stock-based compensation | 122 | 122 | 122 | ||||
Stock-based compensation (in Shares) | 4 | ||||||
Repurchase and retirement of stock | (12) | (12) | (12) | ||||
Repurchase and retirement of stock (in Shares) | (10) | ||||||
Acquisition of remaining shares Pronode | (4,441) | (4,441) | 4,441 | ||||
Foreign currency translation adjustment | 68 | 68 | 68 | ||||
Net loss | (4,883) | (4,883) | $ (400) | (5,283) | |||
Balance at Dec. 31, 2022 | $ 14 | $ 227,235 | $ (340) | $ (207,491) | $ 19,418 | $ 19,418 | |
Balance (in Shares) at Dec. 31, 2022 | 14,456 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss (including noncontrolling interests) | $ (5,283) | $ (7,268) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 122 | 157 |
Depreciation and amortization | 120 | 632 |
Amortization of operating lease right-of-use assets | 399 | 505 |
Recoveries of bad debt | (46) | |
Changes in operating assets and liabilities: | ||
Accounts receivable and unbilled revenue, net | (136) | 434 |
Projects in process | ||
Inventory | (1,133) | (1,440) |
Prepaid expenses and other current assets | 37 | 247 |
Accounts payable and accrued expenses | (460) | (406) |
Deferred revenues | (65) | (28) |
Operating lease obligations | (363) | (511) |
Net cash used in operating activities | (6,808) | (7,678) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (52) | (67) |
Net cash used in investing activities | (52) | (67) |
Cash flow from financing activities: | ||
Proceeds from issuance of common stock, net of offering costs | 4,686 | 15,062 |
Repurchase of common stock | (12) | |
Principal payments on finance lease obligations | (165) | (487) |
Net cash provided by financing activities | 4,509 | 14,575 |
Effect of exchange rate changes on cash | (216) | 80 |
Net change in cash | (2,567) | 6,910 |
Cash at beginning of year | 17,383 | 10,473 |
Cash at end of year | 14,816 | 17,383 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 9 | 15 |
Cash paid for income taxes | 132 | 146 |
Supplemental disclosure of non-cash investing and financial activities: | ||
Right-of-use asset obtained in exchange for finance lease obligations | 24 | $ 239 |
Acquisition of Pronode shares | $ 4,441 |
Nature of the Business and Oper
Nature of the Business and Operations | 12 Months Ended |
Dec. 31, 2022 | |
Nature of the Business and Operations [Abstract] | |
Nature of the Business and Operations | 1. Nature of the Business and Operations Background and Organization Neonode Inc. (“we”, “us”, “our”, or the “Company”) was incorporated in the State of Delaware in 1997 as the parent of Neonode AB, a company founded in February 2004 and incorporated in Sweden. We have the following wholly owned subsidiaries: Neonode Technologies AB (Sweden) (established in 2008 to develop and license touchscreen technology); Neonode Japan Inc. (Japan) (established in 2013); Neonode Korea Ltd. (South Korea) (established in 2014). In 2015, we established Pronode Technologies AB, a subsidiary of Neonode Technologies AB. Since October 1, 2022, Pronode Technologies AB is a wholly owned subsidiary of Neonode Technologies AB. Operations 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 object detection and machine perception 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, gesture sensing, and object detection products and solutions based on our zForce technology platform, and our machine perception 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. Liquidity We incurred net losses of approximately $4.9 million and $6.5 million for the years ended December 31, 2022 and 2021, respectively, and had an accumulated deficit of approximately $207.5 million as of December 31, 2022. In addition, we used cash in operating activities of approximately $6.8 million and $7.7 million for the years ended December 31, 2022 and 2021, respectively. On October 21, 2021, we entered into a placement agency agreement with Pareto Securities Inc. and Pareto Securities AB pursuant to which we sold to certain Swedish and other European investors an aggregate of 1,808,000 shares of our common stock at a price of $7.75 per share in a registered direct offering that closed on October 26, 2021 (the “Offering”). We received net proceeds of approximately $13.1 million from the Offering after deducting placement agent fees and offering expenses. On May 10, 2021, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley Securities”) with respect to an “at the market” offering program (the “ATM Facility”), under which we may, from time to time, in our sole discretion, issue and sell through B. Riley Securities, acting as sales agent, up to $25 million of shares of our common stock. Pursuant to the Sale Agreement, we may sell the shares through B. Riley Securities by any method permitted that is deemed an “at the market” offering as defined in Rule 415 under the Securities Act of 1933, as amended. B. Riley Securities will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the shares from time to time, based upon instructions from us (including any price or size limits or other customary parameters or conditions we may impose). We will pay B. Riley Securities a commission of 3.0% of the gross sales price per share sold under the Sales Agreement. We are not obligated to sell any shares under the Sale Agreement. The offering of shares pursuant to the Sale Agreement will terminate upon the earlier to occur of (i) the issuance and sale, through B. Riley Securities, of all of the shares subject to the Sales Agreement and (ii) termination of the Sale Agreement in accordance with its terms. During the twelve months ended December 31, 2022, we sold an aggregate of 886,065 shares of common stock under the ATM Facility, resulting in net proceeds of approximately $4,686,000 after payment of commissions to B. Riley Securities and other expenses of $167,000. During the twelve months ended December 31, 2021, we sold an aggregate of 235,722 shares of common stock under the ATM Facility, resulting in net proceeds of approximately $1,984,000 after payment of commissions to B. Riley Securities and other expenses of $66,000. During January 2023, we sold an aggregate of 903,716 shares of our common stock under the ATM Facility with aggregate net proceeds to us of $7,868,000, after payment of commissions to B. Riley Securities and other expenses of $244,000. The consolidated financial statements included herein 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. Management evaluated the significance of the Company’s operating loss and determined that the Company’s cash position following the Offering and considering the Company’s current operating plan and other sources of potential capital, including the ATM Facility, would be sufficient to alleviate concerns about the Company’s ability to continue as a going concern. We expect our revenues from our three business areas 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. In the future, we may require sources of capital in addition to cash on hand and our ATM Facility (described below) 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. Historically, we have been able to access the capital markets through sales of common stock and warrants to generate liquidity. Our management believes it could raise capital through public or private offerings if needed to provide us with sufficient liquidity. No assurances can be given, however, that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, results of operations and financial condition. In addition, no assurance can be given that stockholders will approve an increase in the number of our authorized shares of common stock if needed. 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 that could impair our ability to engage in certain business transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting policies | 2. Summary of Significant Accounting policies Principles of Consolidation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Neonode Inc. and its wholly owned subsidiaries, as well as Pronode Technologies AB, a 51% majority owned subsidiary of Neonode Technologies AB, through September 30, 2022. On October 1, 2022, the remaining 49% of Pronode Technologies AB was acquired from Propoint AB, located in Gothenburg, Sweden. All inter-company accounts and transactions have been eliminated in consolidation. Neonode consolidates entities in which it has a controlling financial interest. We consolidate subsidiaries in which we hold, directly or indirectly, more than 50% of the voting rights. The consolidated balance sheets at December 31, 2022 and 2021 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the years ended December 31, 2022 and 2021 include our accounts and those of our wholly owned subsidiaries. Estimates 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. 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 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 shares and options issued for stock-based compensation. Cash and Cash Equivalents We have not had any liquid investments other than normal cash deposits with bank institutions to date. The Company considers all highly liquid investments with original maturities of three months of less to be cash equivalents. Concentration of Cash Balance Risks Cash balances are maintained at various banks in the U.S., Japan, Korea, Taiwan and Sweden. For deposits held with financial institutions in the U.S., the U.S. Federal Deposit Insurance Corporation, provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 100,000 Euro per customer and covers deposits in all types of accounts. The Japanese government provides insurance coverage up to 10,000,000 Yen per customer. The Korea Deposit Insurance Corporation provides insurance coverage up to 50,000,000 Won per customer. The Central Deposit Insurance Corporation in Taiwan provides insurance coverage up to 3,000,000 Taiwan Dollar per customer. At times, deposits held with financial institutions may exceed the amount of insurance provided. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable is stated at net realizable value. Our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make the required payments. Credit limits are established through a process of reviewing the financial history and stability of each customer. Should all efforts fail to recover the related receivable, we will write off the account. We also record an allowance for all customers based on certain other factors including the length of time the receivables are past due and historical collection experience with customers. Our allowance for doubtful accounts was approximately $30,000 and $79,000 as of December 31, 2022 and 2021, respectively. Projects in Process Projects in process consist of costs incurred toward the completion of various projects for certain customers. These costs are primarily comprised of direct engineering labor costs and project-specific equipment costs. These costs are capitalized on our consolidated balance sheet as an asset and deferred until revenue for each project is recognized in accordance with our revenue recognition policy. There were no costs capitalized in projects in process as of December 31, 2022 and 2021. Inventory The Company’s inventory consists primarily of components that will be used in the manufacturing of our touch sensor modules (“TSMs”). We classify inventory for reporting purposes as raw materials, work-in-process, and finished goods. Inventory is stated at the lower of cost or net realizable value, using the first-in, first-out (“FIFO”) valuation method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Due to the low sell-through of our AirBar products, management has decided to fully reserve work-in-process for AirBar components, as well as AirBar related raw materials and finished goods. The AirBar inventory reserve was $0.3 million and $0.8 million as of December 31, 2022 and 2021, respectively. Management decided to reserve for TSM inventory related to a quality issue in production. The TSM inventory reserve was $0.2 million as of December 31, 2021. During 2022 the affected inventory was scrapped and as of December 31, 2022 the inventory reserve was zero Raw materials, work-in-process, and finished goods are as follows (in thousands): December 31, December 31, 2022 2021 Raw materials $ 3,177 $ 1,446 Work-in-process 414 10 Finished goods 236 1,064 Ending inventory $ 3,827 $ 2,520 Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based upon estimated useful lives of the assets as follows: Estimated Computer equipment 3 years Furniture and fixtures 5 years Equipment 10 years Equipment purchased under a finance lease is depreciated over the term of the lease, if that lease term is shorter than the estimated useful life. Upon retirement or sale of property and equipment, cost and accumulated depreciation and amortization are removed from the accounts and any gains or losses are reflected in the consolidated statement of operations. Maintenance and repairs are charged to expense as incurred. Right-of-Use Assets A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of operating leases for buildings. Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease. Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed. Long-Lived Assets We assess any impairment by estimating the future cash flow from the associated asset in accordance with relevant accounting guidance. If the estimated undiscounted future cash flow related to these assets decreases or the useful life is shorter than originally estimated, we may incur charges for impairment of these assets. As of December 31, 2022, we believe there was no impairment of our long-lived assets. There can be no assurance, however, that market conditions will not change or sufficient demand for our products and services will continue, which could result in impairment of long-lived assets in the future. Foreign Currency Translation and Transaction Gains and Losses The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen, the South Korean Won and the Taiwan Dollar. The translation from Swedish Krona, Japanese Yen, South Korean Won or the Taiwan Dollar to U.S. Dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted average exchange rate during the period. Gains or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $35,000 and $(66,000) during the years ended December 31, 2022 and 2021, respectively. Foreign currency translation gains (losses) were $68,000 and $(4,000) during the years ended December 31, 2022 and 2021, respectively. Concentration of Credit and Business Risks Our customers are located in the United States, Europe and Asia. As of December 31, 2022, five of our customers represented approximately 83% of our consolidated accounts receivable and unbilled revenues. As of December 31, 2021, four of our customers represented approximately 76% of our consolidated accounts receivable and unbilled revenues. Customers who accounted for 10% or more of our revenues during the year ended December 31, 2022 are as follows. ● Hewlett-Packard Company – 27% ● Seiko Epson – 19% ● LG – 12% ● Alpine Electronics – 10% Customers who accounted for 10% or more of our revenues during the year ended December 31, 2021 are as follows. ● Hewlett-Packard Company – 32% ● Seiko Epson – 18% ● LG – 13% The Company conducts business in the United States, Europe and Asia. As of December 31, 2022, the Company maintained approximately $15,535,000, $3,857,000 and $26,000 of its net assets in the United States, Europe and Asia, respectively. As of December 31, 2021, the Company maintained approximately $17,198,000, $2,611,000 and $28,000 of its net assets in the United States, Europe and Asia, respectively. Revenue Recognition We recognize revenue when control of products is transferred to our customers, and when services are completed and accepted by our customers; the amount of revenue we recognize reflects the consideration we expect to receive for those products or services. Our contracts with customers may include combinations of products and services (e.g., a contract that includes products and related engineering services). We structure our contracts such that distinct performance obligations, such as product sales or license fees, and related engineering services, are clearly defined in each contract. License fees and sales of our AirBar and TSMs are on a per-unit basis. Therefore, we generally satisfy performance obligations as units are shipped to our customers. Non-recurring engineering service performance obligations are satisfied as work is performed and accepted by our customers. We recognize revenue net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. We treat all product shipping and handling charges (regardless of when they occur) as activities to fulfill the promise to transfer goods, therefore we treat all shipping and handling charges as expenses. License Fees We earn revenue from licensing our internally developed intellectual property (“IP”). We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components in their products, with terms and conditions that vary by licensee. Fees under these agreements may include license fees relating to our IP, and royalties payable to us following the distribution by our licensees of products incorporating the licensed technology. The license for our IP has standalone value and can be used by the licensee without maintenance and support. For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when the license is made available to the customer and the customer has a right to use that license. At the end of each reporting period, we record unbilled license fees using prior royalty revenue data by customer to make estimates of those royalties. Explicit return rights are not offered to customers. There have been no returns through December 31, 2022. Product Sales We earn revenue from sales of TSM hardware products to our OEM, ODM and Tier 1 supplier customers, who embed our hardware into their products, and from sales of branded consumer products that incorporate our TSMs that are sold through distributors or directly to end users. These distributors are generally given business terms that allow them to return unsold inventory, receive credits for changes in selling prices, and participate in various cooperative marketing programs. Our sales agreements generally provide customers with limited rights of return and warranty provisions. The timing of revenue recognition related to AirBar modules depends upon how each sale is transacted - either point-of-sale or through distributors. We recognize revenue for AirBar modules sold point-of-sale (online sales and other direct sales to customers) when we provide the promised product to the customer. Because we generally use distributors to provide AirBar and TSMs to our customers, we must analyze the terms of our distributor agreements to determine when control passes from us to our distributors. For sales of AirBar and TSMs sold through distributors, we recognize revenues when our distributors obtain control over our products. Control passes to our distributors when we have a present right to payment for products sold to the distributors, the distributors have legal title to and physical possession of products purchased from us, and the distributors have significant risks and rewards of ownership of products purchased. Distributors participate in various cooperative marketing and other incentive programs, and we maintain estimated accruals and allowances for these programs. If actual credits received by distributors under these programs were to deviate significantly from our estimates, which are based on historical experience, our revenue could be adversely affected. Under U.S. GAAP, companies may make reasonable aggregations and approximations of returns data to accurately estimate returns. Our AirBar and TSM returns and warranty experience to date has enabled us to make reasonable returns estimates, which are supported by the fact that our product sales involve homogenous transactions. The reserve for future sales returns is recorded as a reduction of our accounts receivable and revenue and was $9,000 and $69,000 as of December 31, 2022 and 2021, respectively. The warranty reserve is recorded as an accrued expense and cost of sales and was $49,000 and $36,000 as of December 31, 2022 and 2021, respectively. If the actual future returns were to deviate from the historical data on which the reserve had been established, our revenue could be adversely affected. Non-Recurring Engineering For technology license or TSM contracts that require modification or customization of the underlying technology to adapt the technology to customer use, we determine whether the technology license or TSM, and required engineering consulting services represent separate performance obligations. We perform our analysis on a contract-by-contract basis. If there are separate performance obligations, we determine the standalone selling price (“SSP”) of each separate performance obligation to properly recognize revenue as each performance obligation is satisfied. We provide engineering consulting services to our customers under a signed Statement of Work (“SOW”). Deliverables and payment terms are specified in each SOW. We generally charge an hourly rate for engineering services, and we recognize revenue as engineering services specified in contracts are completed and accepted by our customers. Any upfront payments we receive for future non-recurring engineering services are recorded as unearned revenue until that revenue is earned. We believe that recognizing non-recurring engineering services revenues as progress towards completion of engineering services and customer acceptance of those services occurs best reflects the economics of those transactions, because engineering services as tracked in our systems correspond directly with the value to our customers of our performance completed to date. Hours performed for each engineering project are tracked and reflect progress made on each project and are charged at a consistent hourly rate. Revenues from non-recurring engineering contracts that are short-term in nature are recorded when those services are complete and accepted by customers. Revenues from non-recurring engineering contracts with substantive defined deliverables for which payment terms in the SOW are commensurate with the efforts required to produce such deliverables are recognized as they are completed and accepted by customers. Estimated losses on all SOW projects are recognized in full as soon as they become evident. During the years ended December 31, 2022 and 2021, we recorded no losses. The following tables present the net revenues distribution by geographical area and market for the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Amount Percentage Amount Percentage AMER Net revenues from consumer electronics $ 1,812 98.5 % $ 2,097 93.4 % Net revenues from distributors and other 27 1.5 % 149 6.6 % $ 1,839 100.0 % $ 2,246 100.0 % APAC Net revenues from automotive $ 1,295 46.9 % $ 1,330 42.9 % Net revenues from consumer electronics 1,127 40.8 % 1,088 35.0 % Net revenues from distributors and other 341 12.3 % 685 22.1 % $ 2,763 100.0 % $ 3,103 100.0 % EMEA Net revenues from automotive $ 493 46.1 % $ 313 64.3 % Net revenues from medical 398 37.3 % 73 15.0 % Net revenues from distributors and other 177 16.6 % 101 20.7 % $ 1,068 100.0 % $ 487 100.0 % Significant Judgments Our contracts with customers may include promises to transfer multiple products and services to a customer, particularly when one of our customers contracts with us for a product and related engineering services fees for customizing that product for our customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately may require significant judgment. Judgment may also be required to determine the SSP for each distinct performance obligation identified, although we generally structure our contracts such that performance obligations and pricing for each performance obligation are specifically addressed. We currently have no outstanding contracts with multiple performance obligations; however, we recently negotiated a contract that may include multiple performance obligations in the future. Judgment is also required to determine when control of products passes from us to our distributors, as well as the amounts of product that may be returned to us. Our products are sold with a right of return, and we may provide other credits or incentives to our customers, which could result in variability when determining the amount of revenue to recognize. At the end of each reporting period, we use product returns history and additional information that becomes available to estimate returns and credits. We do not recognize revenue if it is probable that a significant reversal of any incremental revenue would occur. Finally, judgment is required to determine the amount of unbilled license fees at the end of each reporting period. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when we have an unconditional right to receive future payments from customers, and we record unearned deferred revenue when we receive prepayments or upfront payments for goods or services from our customers. The following table presents accounts receivable, unbilled revenues and deferred revenues as of December 31, 2022 and 2021 (in thousands): December 31, December 31, Accounts receivable and unbilled revenues $ 1,448 $ 1,293 Contract liabilities (deferred revenues) $ 36 $ 106 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled revenues (contract assets), and customer advances and deposits or deferred revenue (contract liabilities) on the consolidated balance sheets. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets; contract assets are generally classified as current. The Company sometimes receives advances or deposits from its customers before revenue is recognized, which are reported as contract liabilities and are generally classified as current. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. We do not anticipate impairment of our contract assets related to license fee revenues, given the creditworthiness of our customers whose invoices comprise the balance in that asset account. We will continue to monitor the timeliness of receipts from those customers to assess whether the contract assets have been impaired. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Payment terms and conditions vary by the type of contract; however, payments generally occur 30-60 days after invoicing for license fees and sensor modules to our resellers and distributors. Where revenue recognition timing differs from invoice timing, we have determined that our contracts do not include a significant financing component. Our intent is to provide our customers with consistent invoicing terms for the convenience of our customers, not to receive financing from our customers. Costs to Obtain Contracts We record the incremental costs of obtaining a contract with a customer as a contract asset, if we expect the benefit of those costs to cover a period greater than one year. We currently have no incremental costs that must be capitalized. We expense as incurred costs of obtaining a contract when the amortization period of those costs would have been less than or equal to one year. Product Warranty The following table summarizes the activity related to the product warranty liability (in thousands): Years ended December 31, December 31, Balance at beginning of period $ 36 $ 25 Provisions for warranty issued 13 11 Balance at end of period $ 49 $ 36 The Company accrues for warranty costs as part of its cost of sales of TSMs based on estimated costs. The Company’s products are generally covered by a warranty for a period of 12 months from the customer receipt of the product included as a component of accrued expenses on the consolidated balance sheet. Contract Liabilities Contract liabilities (deferred revenues) consist primarily of prepayments for license fees, and other products or services that we have been paid in advance. We earn the revenue when we transfer control of the product or service. Deferred revenues may also include upfront payments for consulting services to be performed in the future, such as non-recurring engineering services. We defer license fees until we have met all accounting requirements for revenue recognition, which is when a license is made available to a customer and that customer has a right to use the license. Non-recurring engineering fee revenues are deferred until engineering services have been completed and accepted by our customers. The following table presents our deferred revenues by source (in thousands): As of 2022 2021 Deferred revenues license fees $ 20 $ 28 Deferred revenues products 9 70 Deferred non-recurring engineering 7 8 $ 36 $ 106 Deferred revenue not yet recognized was $36,000 as of December 31, 2022. We expect to recognize 100% of that revenue over the next twelve months. The Company recognized revenues of approximately $24,000 and $41,000, for 2022 and 2021, respectively, related to contract liabilities outstanding at the beginning of the year. Advertising Advertising costs are expensed as incurred. Advertising costs amounted to approximately $158,000 and $208,000 for the years ended December 31, 2022 and 2021, respectively. Research and Development Research and development (“R&D”) costs are expensed as incurred. R&D costs consist primarily of personnel related costs in addition to external consultancy costs such as testing, certifying and measurements. Stock-Based Compensation Expense We measure the cost of employee services received in exchange for an award of equity instruments, including share options, based on the estimated fair value of the award on the grant date, and recognize the value as compensation expense over the period the employee is required to provide services in exchange for the award, usually the vesting period. We account for equity instruments issued to non-employees at their estimated fair value. When determining stock-based compensation expense involving options and warrants, we determine the estimated fair value of options and warrants using the Black-Scholes option pricing model. Noncontrolling Interests We recognize any noncontrolling interest, also known as a minority interest, as a separate line item in stockholders’ equity in the consolidated financial statements. A noncontrolling interest represents the portion of equity ownership in a less-than-wholly owned subsidiary not attributable to us. Generally, any interest that holds less than 50% of the outstanding voting shares is deemed to be a noncontrolling interest; however, there are other factors, such as decision-making rights, that are considered as well. We include the amount of net income (loss) attributable to noncontrolling interests in consolidated net income (loss) on the face of the consolidated statements of operations. The Company provides either in the consolidated statement of stockholders’ equity, if presented, or in the notes to consolidated financial statements, a reconciliation at the beginning and the end of the period of the carrying amount of total equity (net assets), equity (net assets) attributable to the parent, and equity (net assets) attributable to the noncontrolling interest that separately discloses: (1) Net income or loss; (2) Transactions with owners acting in their capacity as owners, showing separately contributions from and distributions to owners; and (3) Each component of other comprehensive income or loss. Income Taxes We recognize deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the consolidated financial statements or tax returns. We estimate income taxes based on rates in effect in each of the jurisdictions in which we operate. Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The realization of deferred tax assets is based on historical tax positions and expectations about future taxable income. Valuation allowances are recorded against net deferred tax assets when, in our opinion, realization is uncertain based on the “more likely than not” criteria of the accounting guidance. Based on the uncertainty of future pre-tax income, we fully reserved our net deferred tax assets as of December 31, 2022 and 2021. In the event we were to determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase income in the period such determination was made. The provision for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period. We follow U.S. GAAP related accounting for uncertainty in income taxes, which provisions include a two-step approach to recognizing, de-recognizing and measuring uncertainty in income taxes. As a result, we did not recognize a liability for unrecognized tax benefits. As of December 31, 2022 and 2021, we had no unrecognized tax benefits. Net Loss per Share Net loss per share amounts have been computed based on the weighted average number of shares of common stock outstanding during the years ended December 31, 2022 and 2021. Net loss per share, assuming dilution amounts from common stock equivalents, is computed based on the weighted-average number of shares of common stock and potential common stock equivalents outstanding during the period. The weighted-average number of shares of common stock and potential common stock equivalents used in computing the net loss per share for years ended December 31, 2022 and 2021 exclude the potential common stock equivalents, as the effect would be anti-dilutive (see Note 14). Other Comprehensive Income (Loss) Our other comprehensive income (loss) includes foreign currency translation gains and losses. The cumulative amount of translation gains and losses are reflected as a separate component of stockholders’ equity in the consolidated balance sheets. Cash Flow Information Cash flows in foreign currencies have been converted to U.S. Dollars at an approximate weighted-average exchange rate for the respective reporting periods. The weighted-average exchange rate for the consolidated statements of operations was as follows: Years ended 2022 2021 Swedish Krona 10.12 8.58 Japanese Yen 131.72 109.82 South Korean Won 1,292.25 1,144.95 Taiwan Dollar 29.81 27.93 Exchange rates for the consolidated balance sheets were as follows: As of 2022 2021 Swedish Krona 10.43 9.03 Japanese Yen 131.12 115.12 South Korean Won 1,261.91 1,190.75 Taiwan Dollar 30.66 27.71 Fair Value of Financial Instruments We disclose the estimated fair values for all financial instruments for which it is practicable to estimate fair value. Financial instruments including cash, accounts receivable, accounts payable and accrued expenses are deemed to approximate fair value due to their short maturities. New Accounting Pronouncements In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326)-Measurement of Credit Losses on Financial Instruments Reclass of Presentation in our Consolidated Statements of Operations 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. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 3. Prepaid Expenses and Other Current Assets Prepaid expense and other current assets consist of the following (in thousands): As of 2022 2021 Prepaid insurance $ 140 $ 189 Prepaid rent 91 6 VAT receivable 297 345 Advances - 3 Advances to suppliers - 38 Other 179 255 Total prepaid expenses and other current assets $ 707 $ 836 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment, net consist of the following (in thousands): As of 2022 2021 Computers, software, furniture and fixtures $ 1,336 $ 1,484 Equipment 2,639 3,463 Less accumulated depreciation and amortization (3,693 ) (4,571 ) Property and equipment, net $ 282 $ 376 Depreciation and amortization expense was $0.1 million and $0.6 million for the years ended December 31, 2022 and 2021, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses consist of the following (in thousands): As of 2022 2021 Accrued returns and warranty $ 49 $ 36 Accrued consulting fees and other 151 335 Total accrued expenses $ 200 $ 371 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Accounting guidance defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements about fair value measurements. The accounting guidance does not mandate any new fair value measurements and is applicable to assets and liabilities that are required to be recorded at fair value under other accounting pronouncements. The three levels of the fair value hierarchy are described as follows: Level 1: Applies to assets or liabilities for which there are observable quoted prices in active markets for identical assets and liabilities. Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1. Level 3: Applies to assets or liabilities for which inputs are unobservable, and those inputs that are significant to the measurement of the fair value of the assets or liabilities. There were no assets or liabilities recorded at fair value on a recurring basis in 2022 and 2021. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | 7. Stockholders’ Equity Common Stock As of December 31, 2022 and 2021, our Restated Certificate of Incorporation, as amended (our “Certificate of Incorporation”), authorized us to issue up to 25,000,000 shares of common stock, par value $0.001 per share. On August 12, 2021, we issued 12,830 shares of our common stock to key employees pursuant to our 2020 long-term incentive program (“2020 LTIP”) (see Note 8). On December 29, 2021, we issued 14,735 shares of our common stock to key employees pursuant to our 2020 long-term incentive program (“2020 LTIP”) (see Note 8). On October 21, 2021, we entered into a placement agency agreement with Pareto Securities Inc. and Pareto Securities AB pursuant to which we sold to certain Swedish and other European investors an aggregate of 1,808,000 shares of our common stock at a price of $7.75 per share in a registered direct offering that closed on October 26, 2021 (the “Offering”). We received net proceeds of approximately $13.1 million from the Offering after deducting placement agent fees and offering expenses. During the twelve months ended December 31, 2021, we sold an aggregate of 235,722 shares of common stock under the ATM Facility, resulting in net proceeds to us of approximately $1,984,000 after payment of commissions to B. Riley and other expenses of $66,000. During the twelve months ended December 31, 2022, we sold an aggregate of 886,065 shares of common stock under the ATM Facility, resulting in net proceeds of approximately $4,686,000 after payment of commissions to B. Riley Securities and other expenses of $167,000. Warrants and Other Common Stock Activity During the year ended December 31, 2022, 431,368 warrants expired and no warrants were exercised. During the year ended December 31, 2021, no warrants expired and no warrants were exercised. A summary of all warrant activity is set forth below: Outstanding and exercisable Warrants Weighted Weighted January 1, 2021 431,368 $ 11.20 0.13 Expired/forfeited - - - December 31, 2021 431,368 $ 11.20 0.13 Issued - - - Expired/forfeited (431,368 ) (11.20 ) - Exercised - - - December 31, 2022 - $ - - We have no outstanding warrants to purchase common stock as of December 31, 2022. Preferred Stock As of December 31, 2022 and 2021, our Certificate of Incorporation authorized us to issue up to 1,000,000 shares of preferred stock, par value $0.001 per share. There were no transactions in our preferred stock during the years ended December 31, 2022 and 2021. No shares of preferred stock were issued and outstanding as of December 31, 2022. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation We have adopted equity incentive plans for which stock options and restricted stock awards are available for grants to employees, consultants and directors. Except for certain options granted to certain Swedish employees, all employee, consultant and director stock options granted under our stock option plans have an exercise price equal to the market value of the underlying common stock on the grant date. There are no vesting provisions tied to performance conditions for any options. Vesting for all outstanding option grants is based solely on continued service as an employee, consultant or director. All of our outstanding stock options and restricted stock awards are classified as equity instruments. Stock Options / Stock Awards During the year ended December 31, 2020, our stockholders approved the 2020 Plan which replaced our 2015 Stock Incentive Plan (the “2015 Plan”), which in turn replaced our Neonode Inc. 2006 Equity Incentive Plan (the “2006 Plan”). Although no new awards may be made under the 2006 Plan or 2015 Plan, the 2015 Plan is still operative for awards previously granted under such plan. There are no awards outstanding under the 2006 Plan. Under the 2020 Plan, 750,000 shares of common stock have been reserved for awards, including nonqualified stock option grants and restricted stock grants to officers, employees, non-employee directors and consultants. The terms of the awards granted under the 2020 Plan are set by our compensation committee at its discretion. In 2020, we established the 2020 LTIP to provide eligible persons with the opportunity to acquire an equity interest, or otherwise increase their equity interest, in the Company as an incentive for them to remain in the service of the Company. Through the 2020 LTIP, eligible employees of Neonode may waive between 50% to 67% of future unearned bonuses that may be awarded to them under the Company’s annual bonus arrangement in exchange for the grant of shares of the Company’s common stock. On December 29, 2020, we issued 37,288 shares of common stock to key employees pursuant to the 2020 LTIP. The shares were immediately vested but subject to a two-year lock-up period after issuance. In the event the participant’s employment with Neonode is terminated by the participant during the two-year lock-up period, the Company will repurchase the shares at a price equal to 30% of the lower of market value at issuance and termination date. Neonode has reported and paid Swedish social charges of $75,000 for the issued shares but only 30% of the stock-based compensation (totaling $77,000) was recognized immediately in the consolidated statement of operations for the year ended December 31, 2020, with the remainder to be recognized ratably over the two-year lock-up period. On August 12, 2021, we issued 12,830 shares of common stock to a key employee pursuant to the 2020 LTIP. The shares were immediately vested but subject to a two-year lock-up period after issuance. In the event the participant’s employment with the Company is terminated by the participant during the two-year lock-up period, the Company will repurchase the shares at a price equal to 30% of the lower of market value at issuance and the termination date. The Company has reported and paid Swedish social charges of $21,000 for the issued shares but only 30% of the stock-based compensation (totaling $25,000) was recognized immediately in the consolidated statements of operations for the year ended December 31, 2021, with the remainder to be recognized ratably over the two-year lock-up period. On December 29, 2021, we issued 14,735 shares of common stock to key employees pursuant to the 2020 LTIP. The shares were immediately vested but subject to a two-year lock-up period after issuance. In the event the participant’s employment with Neonode is terminated by the participant during the two-year lock-up period, the Company will repurchase the shares at a price equal to 30% of the lower of market value at issuance and termination date. Neonode has reported and paid Swedish social charges of $46,000 for the issued shares but only 30% of the stock-based compensation (totaling $38,000) was recognized immediately in the consolidated statements of operations for the year ended December 31, 2021, with the remainder to be recognized ratably over the two-year lock-up period. On May 20, 2022, we issued 4,000 shares of common stock to a director pursuant to the 2020 Plan. The shares were immediately vested but subject to a two-year lock-up period after issuance. In the event the participant’s employment with the Company is terminated by the participant during the two-year lock-up period, the Company will repurchase the shares at a price equal to 30% of the lower of market value at issuance and the termination date. The Company has reported and paid Swedish social charges of $5,000 for the issued shares but only 30% of the stock-based compensation (totaling $5,000) was recognized immediately in the consolidated statements of operations for the year ended December 31, 2022, with the remainder to be recognized ratably over the two-year lock-up period. On September 15, 2022, we repurchased 10,252 shares of common stock from an employee who resigned during the two-year lock up period associated with such shares for $12,000, pursuant to the terms of the 2020 LTIP. During the years ended December 31, 2022 and 2021, we recognized $122,000 and $157,000, respectively, of stock-based compensation for the amortization of the LTIP over the respective lock-up periods. The following table summarizes information with respect to all options to purchase shares of common stock outstanding under the 2006 Plan, the 2015 Plan and the 2020 Plan at December 31, 2022: Options Outstanding Range of Exercise Price Number Weighted Weighted $ 0 - $ 15.00 2,500 0.59 $ 14.40 2,500 0.59 $ 14.40 A summary of the combined activity under all of the stock option plans is set forth below: Options Outstanding Weighted- Average Weighted- Remaining Average Contractual Aggregate Number of Exercise Life Intrinsic Shares Price (in years) Value Options outstanding – January 1, 2021 10,500 $ 29.61 1.40 $ - Options granted - - - Options exercised - - - Options cancelled or expired (1,000 ) 62.10 - Options outstanding – December 31, 2021 9,500 $ 26.19 0.54 - Options granted - - - Options exercised - - - Options cancelled or expired (7,000 ) 30.40 - Options outstanding and vested – December 31, 2022 2,500 $ 14.40 0.59 $ - No stock options were granted during the years ended December 31, 2022 and 2021, respectively. During the years ended December 31, 2022 and 2021, we recorded no stock-based compensation expense related to the vesting of stock options. The estimated fair value of the stock options will be calculated using the Black-Scholes option pricing model as of the grant date of the stock option. Stock options granted under the 2006 and 2015 Plans are exercisable over a maximum term of ten 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. Stock-Based Compensation The stock-based compensation expense for the years ended December 31, 2022 and 2021 reflects the estimated fair value of the vested portion of common stock granted to directors and employees (in thousands): Years ended 2022 2021 (In thousands) Sales and marketing $ 8 $ 50 General and administrative 114 107 Stock-based compensation expense $ 122 $ 157 There is no remaining unrecognized compensation expense related to stock options as of December 31, 2022. Unrecognized compensation expense related to the 2020 LTIP as of December 31, 2022 was $60,000, which will be recognized over two years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Litigation On September 2, 2020, a putative stockholder of Neonode filed a purported class action lawsuit (Case No. 1:20-cv-01174-UNA) in the United States District Court for the District of Delaware against Neonode, the Board of Directors of Neonode, and the Chief Executive Officer of Neonode for alleged violation of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended, in connection with disclosure of information concerning Proposal 5 and Proposal 6 in the proxy statement filed with the SEC by Neonode on August 20, 2020 for the 2020 Annual Meeting of Stockholders of Neonode (the “Proxy Statement”). These proposals for shareholder approval related to the Private Placement by Neonode on August 5, 2020 in which two directors and the chief executive officer of Neonode participated. The relief sought by the plaintiff included a preliminary injunction to enjoin the stockholder votes on Proposal 5 and Proposal 6. On October 20, 2020, the plaintiff voluntarily dismissed the lawsuit in the United States District Court. However, on February 11, 2021, the plaintiff’s counsel informed Neonode that they would file a fee petition as a result of Neonode filing the definitive additional materials to the Proxy Statement on September 18, 2020. On September 9, 2021, the plaintiff’s counsel filed a complaint in the Supreme Court of the State of New York, County of Nassau, to recover plaintiff’s attorneys’ fees and expenses in the amount of $400,000 incurred in connection with the Proceeding. On November 3, 2021, the Company entered into a settlement agreement with plaintiff’s counsel, which was accrued for as of September 30, 2021. On November 4, 2021, the case was dismissed with prejudice. Operating expenses for the year ended December 31, 2021 include costs in relation to the above-referenced lawsuits. Indemnities and Guarantees Our bylaws require that we indemnify each of our executive officers and directors for certain events or occurrences arising because of the officer or director serving in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. However, we have a directors’ and officers’ liability insurance policy that should enable us to recover a portion of any future amounts paid. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal and we have no liabilities recorded for these agreements as of December 31, 2022 and December 31, 2021. We enter into indemnification provisions under our agreements with other companies in the ordinary course of business, typically with business partners, contractors, customers and landlords. Under these provisions we generally indemnify and hold harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of our activities or, in some cases, as a result of the indemnified party’s activities under the agreement. These indemnification provisions often include indemnifications relating to representations made by us regarding intellectual property rights. These indemnification provisions generally survive termination of the underlying agreement. The maximum potential amount of future payments we could be required to make under these indemnification provisions is unlimited. We have not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the estimated fair value of these agreements is minimal. Accordingly, we have no liabilities recorded for these indemnification provisions as of December 31, 2022 and December 31, 2021. One of our manufacturing partners has previously purchased material for the final assembly of AirBars. To protect the manufacturer from losses in relation to AirBar production, we agreed to secure the value of the inventory in a bank guarantee. In December 2021, the bank guarantee was cancelled. Patent Assignment On May 6, 2019, the Company assigned a portfolio of patents to Aequitas Technologies LLC. The assignment provides the Company the right to share the potential net proceeds generated from a licensing and monetization program. Net proceeds shall here be understood as gross proceeds less out of pocket expenses and legal fees. On June 8, 2020, Neonode Smartphone LLC, a subsidiary of Aequitas Technologies LLC filed complaints against Apple and Samsung in the Western District of Texas for infringing two patents. The case against Apple was subsequently transferred to the Northern District of California. Both matters are still ongoing. Non-Recurring Engineering Development Costs 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 Application Specific Integrated Circuit (“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. As of December 31, 2022, we had made no payments to TI under the NN1002 Agreement. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 10. Leases We have operating leases for our corporate offices and our manufacturing facility, and finance leases for equipment. Our leases have remaining lease terms of one month to three 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. Future renewal options that are not likely to be executed as of the balance sheet date are excluded from right-of-use assets and related lease liabilities. Our operating leases represent building leases for our Stockholm corporate offices and our Kungsbacka manufacturing facility. 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. We report operating lease right-of-use assets, as well as current and noncurrent operating lease obligations on our consolidated balance sheets for the right to use those buildings in our business. Our finance leases represent manufacturing equipment; we report the manufacturing equipment, as well as current and noncurrent finance lease obligations on our consolidated balance sheets. Generally, interest rates are stated in our leases for equipment. When no interest rate is stated in a lease, however, we review the interest rates implicit in our recent finance leases to estimate our incremental borrowing rate. We determine the rate implicit in a lease by using the most recent finance lease rate, or other method we think most closely represents our incremental borrowing rate. The components of lease expense were as follows (in thousands): Years ended 2022 2021 Operating lease cost (1) $ 596 $ 662 Finance lease cost: Amortization of leased assets $ 66 $ 585 Interest on lease liabilities 8 14 Total finance lease cost $ 74 $ 599 (1) Includes short term lease costs of $180,000 and $127,000 for the years ended December 31, 2022 and 2021. Supplemental cash flow information related to leases was as follows (in thousands): Years ended 2022 2021 Cash paid for amounts included in leases: Operating cash flows from operating leases $ (399 ) $ (505 ) Operating cash flows from finance leases (8 ) (14 ) Financing cash flows from finance leases (165 ) (487 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases - 239 Finance leases 24 - Supplemental balance sheet information related to leases was as follows (in thousands): As of 2022 2021 Operating leases Operating lease right-of-use assets, net $ 118 $ 584 Current portion of operating lease obligations $ 83 $ 425 Operating lease liabilities, net of current portion 35 117 Total operating lease liabilities $ 118 $ 542 Finance leases Property and equipment, at cost $ 2,622 $ 3,463 Accumulated depreciation (2,418 ) (3,199 ) Property and equipment, net $ 204 $ 264 Current portion of finance lease obligations $ 95 $ 258 Finance lease liabilities, net of current portion 46 65 Total finance lease liabilities $ 141 $ 323 Year ended Weighted-Average Remaining Lease Term Operating leases 1.8 years Finance leases 1.5 years Weighted-Average Discount Rate Operating leases (2) 5 % Finance leases 2 % (2) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. A summary of future minimum payments under non-cancellable operating lease commitments as of December 31, 2022 is as follows (in thousands): Years ending December 31, Total 2023 $ 71 2024 53 Total minimum payments required: 124 Less imputed interest (6 ) Total lease liabilities 118 Less current portion (83 ) $ 35 The following is a schedule of minimum future rentals on the non-cancelable finance leases as of December 31, 2022 (in thousands): Year ending December 31, Total 2023 $ 98 2024 28 2025 19 Total minimum payments required: 145 Less amount representing interest: (4 ) Present value of net minimum lease payments: 141 Less current portion (95 ) $ 46 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information [Abstract] | |
Segment Information | 11. Segment Information Our Company has one reportable segment, which is comprised of the touch technology licensing and sensor module business. We report revenues from external customers based on the country where the customer is located. The following table presents revenues by geographic region for the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Amount Percentage Amount Percentage United States $ 1,839 33 % $ 2,241 39 % Japan 1,742 31 % 1,894 33 % South Korea 861 15 % 894 15 % Switzerland 398 7 % 73 1 % Germany 298 5 % 303 5 % France 193 3 % 7 - % Sweden 155 3 % 22 - % China 130 2 % 311 5 % Other 54 1 % 91 2 % Total $ 5,670 100 % $ 5,836 100 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Loss before provision for income taxes was distributed geographically for the years ended December 31, as follows (in thousands): 2022 2021 Domestic $ (4,453 ) $ (5,570 ) Foreign (712 ) (1,552 ) Total $ (5,165 ) $ (7,122 ) The provision (benefit) for income taxes is as follows for the years ended December 31 (in thousands): 2022 2021 Current Federal $ - $ - State - - Foreign 118 146 Change in deferred Federal (186 ) (1,177 ) Federal valuation allowance 186 1,177 State (3 ) - State valuation allowance 3 - Foreign (3,517 ) (1,842 ) Foreign valuation allowance 3,517 1,842 Total current $ 118 $ 146 The differences between our effective income tax rate and the U.S. federal statutory federal income tax rate for the years ended December 31, are as follows: 2022 2021 Amounts at statutory tax rates 21 % 21 % Foreign losses taxed at different rates (1 )% (1 )% Stock-based compensation (1 )% (1 )% GILTI inclusion (16 )% - % Other (2 )% (1 )% Total 1 % 18 % Valuation allowance (3 )% (20 )% Effective tax rate (2 )% (2 )% Significant components of the deferred tax asset balances at December 31 are as follows (in thousands): 2022 2021 Deferred tax assets: Accruals $ (13 ) $ (87 ) Stock compensation 4 38 Net operating losses 25,608 21,943 Total deferred tax assets 25,599 21,894 Valuation allowance (25,599 ) (21,894 ) Total net deferred tax assets $ - $ - Valuation allowances are recorded to offset certain deferred tax assets due to management’s uncertainty of realizing the benefits of these items. Management applies a full valuation allowance for the accumulated losses of Neonode Inc. and its subsidiaries, since it is not determinable using the “more likely than not” criteria that there will be any future benefit of our deferred tax assets. This is mainly due to our history of operating losses. As of December 31, 2022, we had federal, state and foreign net operating losses of $75.6 million, $20.1 million and $40.4 million, respectively. The federal loss carryforward begins to expire in 2028, and the California loss carryforward begins to expire in 2030. The foreign loss carryforward, which is generated in Sweden, does not expire. Utilization of the net operating loss and tax credit carryforwards is subject to an annual limitation due to the ownership percentage change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. The annual limitation may result in the expiration of the net operating losses and tax credit carryforwards before utilization. As of December 31, 2022, we had not completed the determination of the amount to be limited under the provision. We follow the provisions of accounting guidance which includes a two-step approach to recognizing, derecognizing and measuring uncertain tax positions. There were no unrecognized tax benefits for the years ended December 31, 2022 and 2021. We follow the policy to classify accrued interest and penalties as part of the accrued tax liability in the provision for income taxes. For the years ended December 31, 2022 and 2021 we did not recognize any interest or penalties related to unrecognized tax benefits. As of December 31, 2022, we had no uncertain tax positions that would be reduced as a result of a lapse of the applicable statute of limitations. We file income tax returns in the U.S. federal jurisdiction, California, Sweden, and Japan. The 2008 through 2021 tax years are open and may be subject to potential examination in one or more jurisdictions. We are not currently under any federal, state or foreign income tax examinations. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 13. Employee Benefit Plans We participate in a number of individual defined contribution pension plans for our employees in Sweden. We contribute between 4.5% and 30% of the employee’s annual salary to these pension plans depending on age and salary level. Contributions relating to these defined contribution plans for the years ended December 31, 2022 and 2021 were $555,000 and $587,000, respectively. We match U.S. employee contributions to a 401(K) retirement plan up to a maximum of six percent (6%) of an employee’s annual salary. Contributions relating to the matching 401(K) contributions for the years ended December 31, 2022 and 2021 were $6,000 and $10,000, respectively. In Taiwan, we contribute six percent (6%) of the employee’s annual salary to a pension fund which agrees with Taiwan’s Labor Pension Act. Contributions relating to the Taiwanese pension fund for the years ended December 31, 2022 and 2021 were $4,000 and $2,000, respectively. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 14. Net Loss Per Share Basic net loss per common share for the years ended December 31, 2022 and 2021 was computed by dividing the net loss attributable to common shareholders of Neonode Inc. for the relevant period by the weighted average number of shares of common stock outstanding during the year. Diluted loss per common share is computed by dividing net loss attributable to common shareholders of Neonode Inc. for the relevant period by the weighted average number of shares of common stock and common stock equivalents outstanding during the year. The Company had no potential common stock equivalents as of December 31, 2022 or 2021. Years ended (In thousands, except per share amounts) 2022 2021 BASIC AND DILUTED Weighted average number of common shares outstanding 13,632 11,907 Net loss attributable to common shareholders of Neonode Inc. $ (4,883 ) $ (6,450 ) Net loss per share basic and diluted $ (0.36 ) $ (0.54 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events During January 2023, we sold an aggregate of 903,716 shares of our common stock under the ATM Facility with aggregate net proceeds to us of $7,868,000, after payment of commissions to B. Riley Securities and other expenses of $244,000. No other subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto other than as discussed elsewhere in the accompanying notes. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Neonode Inc. and its wholly owned subsidiaries, as well as Pronode Technologies AB, a 51% majority owned subsidiary of Neonode Technologies AB, through September 30, 2022. On October 1, 2022, the remaining 49% of Pronode Technologies AB was acquired from Propoint AB, located in Gothenburg, Sweden. All inter-company accounts and transactions have been eliminated in consolidation. Neonode consolidates entities in which it has a controlling financial interest. We consolidate subsidiaries in which we hold, directly or indirectly, more than 50% of the voting rights. The consolidated balance sheets at December 31, 2022 and 2021 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the years ended December 31, 2022 and 2021 include our accounts and those of our wholly owned subsidiaries. |
Estimates | Estimates 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. 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 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 shares and options issued for stock-based compensation. |
Cash and Cash Equivalents | Cash and Cash Equivalents We have not had any liquid investments other than normal cash deposits with bank institutions to date. The Company considers all highly liquid investments with original maturities of three months of less to be cash equivalents. |
Concentration of Cash Balance Risks | Concentration of Cash Balance Risks Cash balances are maintained at various banks in the U.S., Japan, Korea, Taiwan and Sweden. For deposits held with financial institutions in the U.S., the U.S. Federal Deposit Insurance Corporation, provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 100,000 Euro per customer and covers deposits in all types of accounts. The Japanese government provides insurance coverage up to 10,000,000 Yen per customer. The Korea Deposit Insurance Corporation provides insurance coverage up to 50,000,000 Won per customer. The Central Deposit Insurance Corporation in Taiwan provides insurance coverage up to 3,000,000 Taiwan Dollar per customer. At times, deposits held with financial institutions may exceed the amount of insurance provided. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable is stated at net realizable value. Our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make the required payments. Credit limits are established through a process of reviewing the financial history and stability of each customer. Should all efforts fail to recover the related receivable, we will write off the account. We also record an allowance for all customers based on certain other factors including the length of time the receivables are past due and historical collection experience with customers. Our allowance for doubtful accounts was approximately $30,000 and $79,000 as of December 31, 2022 and 2021, respectively. |
Projects in Process | Projects in Process Projects in process consist of costs incurred toward the completion of various projects for certain customers. These costs are primarily comprised of direct engineering labor costs and project-specific equipment costs. These costs are capitalized on our consolidated balance sheet as an asset and deferred until revenue for each project is recognized in accordance with our revenue recognition policy. There were no costs capitalized in projects in process as of December 31, 2022 and 2021. |
Inventory | Inventory The Company’s inventory consists primarily of components that will be used in the manufacturing of our touch sensor modules (“TSMs”). We classify inventory for reporting purposes as raw materials, work-in-process, and finished goods. Inventory is stated at the lower of cost or net realizable value, using the first-in, first-out (“FIFO”) valuation method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Due to the low sell-through of our AirBar products, management has decided to fully reserve work-in-process for AirBar components, as well as AirBar related raw materials and finished goods. The AirBar inventory reserve was $0.3 million and $0.8 million as of December 31, 2022 and 2021, respectively. Management decided to reserve for TSM inventory related to a quality issue in production. The TSM inventory reserve was $0.2 million as of December 31, 2021. During 2022 the affected inventory was scrapped and as of December 31, 2022 the inventory reserve was zero Raw materials, work-in-process, and finished goods are as follows (in thousands): December 31, December 31, 2022 2021 Raw materials $ 3,177 $ 1,446 Work-in-process 414 10 Finished goods 236 1,064 Ending inventory $ 3,827 $ 2,520 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based upon estimated useful lives of the assets as follows: Estimated Computer equipment 3 years Furniture and fixtures 5 years Equipment 10 years Equipment purchased under a finance lease is depreciated over the term of the lease, if that lease term is shorter than the estimated useful life. Upon retirement or sale of property and equipment, cost and accumulated depreciation and amortization are removed from the accounts and any gains or losses are reflected in the consolidated statement of operations. Maintenance and repairs are charged to expense as incurred. |
Right-of-Use Assets | Right-of-Use Assets A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of operating leases for buildings. Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease. Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed. |
Long-lived Assets | Long-Lived Assets We assess any impairment by estimating the future cash flow from the associated asset in accordance with relevant accounting guidance. If the estimated undiscounted future cash flow related to these assets decreases or the useful life is shorter than originally estimated, we may incur charges for impairment of these assets. As of December 31, 2022, we believe there was no impairment of our long-lived assets. There can be no assurance, however, that market conditions will not change or sufficient demand for our products and services will continue, which could result in impairment of long-lived assets in the future. |
Foreign Currency Translation and Transaction Gains and Losses | Foreign Currency Translation and Transaction Gains and Losses The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen, the South Korean Won and the Taiwan Dollar. The translation from Swedish Krona, Japanese Yen, South Korean Won or the Taiwan Dollar to U.S. Dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted average exchange rate during the period. Gains or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $35,000 and $(66,000) during the years ended December 31, 2022 and 2021, respectively. Foreign currency translation gains (losses) were $68,000 and $(4,000) during the years ended December 31, 2022 and 2021, respectively. |
Concentration of Credit and Business Risks | Concentration of Credit and Business Risks Our customers are located in the United States, Europe and Asia. As of December 31, 2022, five of our customers represented approximately 83% of our consolidated accounts receivable and unbilled revenues. As of December 31, 2021, four of our customers represented approximately 76% of our consolidated accounts receivable and unbilled revenues. Customers who accounted for 10% or more of our revenues during the year ended December 31, 2022 are as follows. ● Hewlett-Packard Company – 27% ● Seiko Epson – 19% ● LG – 12% ● Alpine Electronics – 10% Customers who accounted for 10% or more of our revenues during the year ended December 31, 2021 are as follows. ● Hewlett-Packard Company – 32% ● Seiko Epson – 18% ● LG – 13% The Company conducts business in the United States, Europe and Asia. As of December 31, 2022, the Company maintained approximately $15,535,000, $3,857,000 and $26,000 of its net assets in the United States, Europe and Asia, respectively. As of December 31, 2021, the Company maintained approximately $17,198,000, $2,611,000 and $28,000 of its net assets in the United States, Europe and Asia, respectively. |
Revenue Recognition | Revenue Recognition We recognize revenue when control of products is transferred to our customers, and when services are completed and accepted by our customers; the amount of revenue we recognize reflects the consideration we expect to receive for those products or services. Our contracts with customers may include combinations of products and services (e.g., a contract that includes products and related engineering services). We structure our contracts such that distinct performance obligations, such as product sales or license fees, and related engineering services, are clearly defined in each contract. License fees and sales of our AirBar and TSMs are on a per-unit basis. Therefore, we generally satisfy performance obligations as units are shipped to our customers. Non-recurring engineering service performance obligations are satisfied as work is performed and accepted by our customers. We recognize revenue net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. We treat all product shipping and handling charges (regardless of when they occur) as activities to fulfill the promise to transfer goods, therefore we treat all shipping and handling charges as expenses. License Fees We earn revenue from licensing our internally developed intellectual property (“IP”). We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components in their products, with terms and conditions that vary by licensee. Fees under these agreements may include license fees relating to our IP, and royalties payable to us following the distribution by our licensees of products incorporating the licensed technology. The license for our IP has standalone value and can be used by the licensee without maintenance and support. For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when the license is made available to the customer and the customer has a right to use that license. At the end of each reporting period, we record unbilled license fees using prior royalty revenue data by customer to make estimates of those royalties. Explicit return rights are not offered to customers. There have been no returns through December 31, 2022. Product Sales We earn revenue from sales of TSM hardware products to our OEM, ODM and Tier 1 supplier customers, who embed our hardware into their products, and from sales of branded consumer products that incorporate our TSMs that are sold through distributors or directly to end users. These distributors are generally given business terms that allow them to return unsold inventory, receive credits for changes in selling prices, and participate in various cooperative marketing programs. Our sales agreements generally provide customers with limited rights of return and warranty provisions. The timing of revenue recognition related to AirBar modules depends upon how each sale is transacted - either point-of-sale or through distributors. We recognize revenue for AirBar modules sold point-of-sale (online sales and other direct sales to customers) when we provide the promised product to the customer. Because we generally use distributors to provide AirBar and TSMs to our customers, we must analyze the terms of our distributor agreements to determine when control passes from us to our distributors. For sales of AirBar and TSMs sold through distributors, we recognize revenues when our distributors obtain control over our products. Control passes to our distributors when we have a present right to payment for products sold to the distributors, the distributors have legal title to and physical possession of products purchased from us, and the distributors have significant risks and rewards of ownership of products purchased. Distributors participate in various cooperative marketing and other incentive programs, and we maintain estimated accruals and allowances for these programs. If actual credits received by distributors under these programs were to deviate significantly from our estimates, which are based on historical experience, our revenue could be adversely affected. Under U.S. GAAP, companies may make reasonable aggregations and approximations of returns data to accurately estimate returns. Our AirBar and TSM returns and warranty experience to date has enabled us to make reasonable returns estimates, which are supported by the fact that our product sales involve homogenous transactions. The reserve for future sales returns is recorded as a reduction of our accounts receivable and revenue and was $9,000 and $69,000 as of December 31, 2022 and 2021, respectively. The warranty reserve is recorded as an accrued expense and cost of sales and was $49,000 and $36,000 as of December 31, 2022 and 2021, respectively. If the actual future returns were to deviate from the historical data on which the reserve had been established, our revenue could be adversely affected. Non-Recurring Engineering For technology license or TSM contracts that require modification or customization of the underlying technology to adapt the technology to customer use, we determine whether the technology license or TSM, and required engineering consulting services represent separate performance obligations. We perform our analysis on a contract-by-contract basis. If there are separate performance obligations, we determine the standalone selling price (“SSP”) of each separate performance obligation to properly recognize revenue as each performance obligation is satisfied. We provide engineering consulting services to our customers under a signed Statement of Work (“SOW”). Deliverables and payment terms are specified in each SOW. We generally charge an hourly rate for engineering services, and we recognize revenue as engineering services specified in contracts are completed and accepted by our customers. Any upfront payments we receive for future non-recurring engineering services are recorded as unearned revenue until that revenue is earned. We believe that recognizing non-recurring engineering services revenues as progress towards completion of engineering services and customer acceptance of those services occurs best reflects the economics of those transactions, because engineering services as tracked in our systems correspond directly with the value to our customers of our performance completed to date. Hours performed for each engineering project are tracked and reflect progress made on each project and are charged at a consistent hourly rate. Revenues from non-recurring engineering contracts that are short-term in nature are recorded when those services are complete and accepted by customers. Revenues from non-recurring engineering contracts with substantive defined deliverables for which payment terms in the SOW are commensurate with the efforts required to produce such deliverables are recognized as they are completed and accepted by customers. Estimated losses on all SOW projects are recognized in full as soon as they become evident. During the years ended December 31, 2022 and 2021, we recorded no losses. The following tables present the net revenues distribution by geographical area and market for the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Amount Percentage Amount Percentage AMER Net revenues from consumer electronics $ 1,812 98.5 % $ 2,097 93.4 % Net revenues from distributors and other 27 1.5 % 149 6.6 % $ 1,839 100.0 % $ 2,246 100.0 % APAC Net revenues from automotive $ 1,295 46.9 % $ 1,330 42.9 % Net revenues from consumer electronics 1,127 40.8 % 1,088 35.0 % Net revenues from distributors and other 341 12.3 % 685 22.1 % $ 2,763 100.0 % $ 3,103 100.0 % EMEA Net revenues from automotive $ 493 46.1 % $ 313 64.3 % Net revenues from medical 398 37.3 % 73 15.0 % Net revenues from distributors and other 177 16.6 % 101 20.7 % $ 1,068 100.0 % $ 487 100.0 % |
Significant Judgments | Significant Judgments Our contracts with customers may include promises to transfer multiple products and services to a customer, particularly when one of our customers contracts with us for a product and related engineering services fees for customizing that product for our customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately may require significant judgment. Judgment may also be required to determine the SSP for each distinct performance obligation identified, although we generally structure our contracts such that performance obligations and pricing for each performance obligation are specifically addressed. We currently have no outstanding contracts with multiple performance obligations; however, we recently negotiated a contract that may include multiple performance obligations in the future. Judgment is also required to determine when control of products passes from us to our distributors, as well as the amounts of product that may be returned to us. Our products are sold with a right of return, and we may provide other credits or incentives to our customers, which could result in variability when determining the amount of revenue to recognize. At the end of each reporting period, we use product returns history and additional information that becomes available to estimate returns and credits. We do not recognize revenue if it is probable that a significant reversal of any incremental revenue would occur. Finally, judgment is required to determine the amount of unbilled license fees at the end of each reporting period. |
Contract Balances | Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when we have an unconditional right to receive future payments from customers, and we record unearned deferred revenue when we receive prepayments or upfront payments for goods or services from our customers. The following table presents accounts receivable, unbilled revenues and deferred revenues as of December 31, 2022 and 2021 (in thousands): December 31, December 31, Accounts receivable and unbilled revenues $ 1,448 $ 1,293 Contract liabilities (deferred revenues) $ 36 $ 106 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled revenues (contract assets), and customer advances and deposits or deferred revenue (contract liabilities) on the consolidated balance sheets. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets; contract assets are generally classified as current. The Company sometimes receives advances or deposits from its customers before revenue is recognized, which are reported as contract liabilities and are generally classified as current. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. We do not anticipate impairment of our contract assets related to license fee revenues, given the creditworthiness of our customers whose invoices comprise the balance in that asset account. We will continue to monitor the timeliness of receipts from those customers to assess whether the contract assets have been impaired. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Payment terms and conditions vary by the type of contract; however, payments generally occur 30-60 days after invoicing for license fees and sensor modules to our resellers and distributors. Where revenue recognition timing differs from invoice timing, we have determined that our contracts do not include a significant financing component. Our intent is to provide our customers with consistent invoicing terms for the convenience of our customers, not to receive financing from our customers. |
Costs to Obtain Contracts | Costs to Obtain Contracts We record the incremental costs of obtaining a contract with a customer as a contract asset, if we expect the benefit of those costs to cover a period greater than one year. We currently have no incremental costs that must be capitalized. We expense as incurred costs of obtaining a contract when the amortization period of those costs would have been less than or equal to one year. |
Product Warranty | Product Warranty The following table summarizes the activity related to the product warranty liability (in thousands): Years ended December 31, December 31, Balance at beginning of period $ 36 $ 25 Provisions for warranty issued 13 11 Balance at end of period $ 49 $ 36 The Company accrues for warranty costs as part of its cost of sales of TSMs based on estimated costs. The Company’s products are generally covered by a warranty for a period of 12 months from the customer receipt of the product included as a component of accrued expenses on the consolidated balance sheet. |
Contract Liabilities | Contract Liabilities Contract liabilities (deferred revenues) consist primarily of prepayments for license fees, and other products or services that we have been paid in advance. We earn the revenue when we transfer control of the product or service. Deferred revenues may also include upfront payments for consulting services to be performed in the future, such as non-recurring engineering services. We defer license fees until we have met all accounting requirements for revenue recognition, which is when a license is made available to a customer and that customer has a right to use the license. Non-recurring engineering fee revenues are deferred until engineering services have been completed and accepted by our customers. The following table presents our deferred revenues by source (in thousands): As of 2022 2021 Deferred revenues license fees $ 20 $ 28 Deferred revenues products 9 70 Deferred non-recurring engineering 7 8 $ 36 $ 106 Deferred revenue not yet recognized was $36,000 as of December 31, 2022. We expect to recognize 100% of that revenue over the next twelve months. The Company recognized revenues of approximately $24,000 and $41,000, for 2022 and 2021, respectively, related to contract liabilities outstanding at the beginning of the year. |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising costs amounted to approximately $158,000 and $208,000 for the years ended December 31, 2022 and 2021, respectively. |
Research and Development | Research and Development Research and development (“R&D”) costs are expensed as incurred. R&D costs consist primarily of personnel related costs in addition to external consultancy costs such as testing, certifying and measurements. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense We measure the cost of employee services received in exchange for an award of equity instruments, including share options, based on the estimated fair value of the award on the grant date, and recognize the value as compensation expense over the period the employee is required to provide services in exchange for the award, usually the vesting period. We account for equity instruments issued to non-employees at their estimated fair value. When determining stock-based compensation expense involving options and warrants, we determine the estimated fair value of options and warrants using the Black-Scholes option pricing model. |
Noncontrolling Interests | Noncontrolling Interests We recognize any noncontrolling interest, also known as a minority interest, as a separate line item in stockholders’ equity in the consolidated financial statements. A noncontrolling interest represents the portion of equity ownership in a less-than-wholly owned subsidiary not attributable to us. Generally, any interest that holds less than 50% of the outstanding voting shares is deemed to be a noncontrolling interest; however, there are other factors, such as decision-making rights, that are considered as well. We include the amount of net income (loss) attributable to noncontrolling interests in consolidated net income (loss) on the face of the consolidated statements of operations. The Company provides either in the consolidated statement of stockholders’ equity, if presented, or in the notes to consolidated financial statements, a reconciliation at the beginning and the end of the period of the carrying amount of total equity (net assets), equity (net assets) attributable to the parent, and equity (net assets) attributable to the noncontrolling interest that separately discloses: (1) Net income or loss; (2) Transactions with owners acting in their capacity as owners, showing separately contributions from and distributions to owners; and (3) Each component of other comprehensive income or loss. |
Income Taxes | Income Taxes We recognize deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the consolidated financial statements or tax returns. We estimate income taxes based on rates in effect in each of the jurisdictions in which we operate. Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The realization of deferred tax assets is based on historical tax positions and expectations about future taxable income. Valuation allowances are recorded against net deferred tax assets when, in our opinion, realization is uncertain based on the “more likely than not” criteria of the accounting guidance. Based on the uncertainty of future pre-tax income, we fully reserved our net deferred tax assets as of December 31, 2022 and 2021. In the event we were to determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase income in the period such determination was made. The provision for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period. We follow U.S. GAAP related accounting for uncertainty in income taxes, which provisions include a two-step approach to recognizing, de-recognizing and measuring uncertainty in income taxes. As a result, we did not recognize a liability for unrecognized tax benefits. As of December 31, 2022 and 2021, we had no unrecognized tax benefits. |
Net Loss per Share | Net Loss per Share Net loss per share amounts have been computed based on the weighted average number of shares of common stock outstanding during the years ended December 31, 2022 and 2021. Net loss per share, assuming dilution amounts from common stock equivalents, is computed based on the weighted-average number of shares of common stock and potential common stock equivalents outstanding during the period. The weighted-average number of shares of common stock and potential common stock equivalents used in computing the net loss per share for years ended December 31, 2022 and 2021 exclude the potential common stock equivalents, as the effect would be anti-dilutive (see Note 14). |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Our other comprehensive income (loss) includes foreign currency translation gains and losses. The cumulative amount of translation gains and losses are reflected as a separate component of stockholders’ equity in the consolidated balance sheets. |
Cash Flow Information | Cash Flow Information Cash flows in foreign currencies have been converted to U.S. Dollars at an approximate weighted-average exchange rate for the respective reporting periods. The weighted-average exchange rate for the consolidated statements of operations was as follows: Years ended 2022 2021 Swedish Krona 10.12 8.58 Japanese Yen 131.72 109.82 South Korean Won 1,292.25 1,144.95 Taiwan Dollar 29.81 27.93 Exchange rates for the consolidated balance sheets were as follows: As of 2022 2021 Swedish Krona 10.43 9.03 Japanese Yen 131.12 115.12 South Korean Won 1,261.91 1,190.75 Taiwan Dollar 30.66 27.71 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We disclose the estimated fair values for all financial instruments for which it is practicable to estimate fair value. Financial instruments including cash, accounts receivable, accounts payable and accrued expenses are deemed to approximate fair value due to their short maturities. |
New Accounting Pronouncements | New Accounting Pronouncements In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326)-Measurement of Credit Losses on Financial Instruments |
Reclass of presentation in our consolidated statements of operations | Reclass of Presentation in our Consolidated Statements of Operations 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of inventory | December 31, December 31, 2022 2021 Raw materials $ 3,177 $ 1,446 Work-in-process 414 10 Finished goods 236 1,064 Ending inventory $ 3,827 $ 2,520 |
Schedule of straight-line method based upon estimated useful lives | Estimated Computer equipment 3 years Furniture and fixtures 5 years Equipment 10 years |
Schedule of disaggregated revenues | 2022 2021 Amount Percentage Amount Percentage AMER Net revenues from consumer electronics $ 1,812 98.5 % $ 2,097 93.4 % Net revenues from distributors and other 27 1.5 % 149 6.6 % $ 1,839 100.0 % $ 2,246 100.0 % APAC Net revenues from automotive $ 1,295 46.9 % $ 1,330 42.9 % Net revenues from consumer electronics 1,127 40.8 % 1,088 35.0 % Net revenues from distributors and other 341 12.3 % 685 22.1 % $ 2,763 100.0 % $ 3,103 100.0 % EMEA Net revenues from automotive $ 493 46.1 % $ 313 64.3 % Net revenues from medical 398 37.3 % 73 15.0 % Net revenues from distributors and other 177 16.6 % 101 20.7 % $ 1,068 100.0 % $ 487 100.0 % |
Schedule of accounts receivable and deferred revenues | December 31, December 31, Accounts receivable and unbilled revenues $ 1,448 $ 1,293 Contract liabilities (deferred revenues) $ 36 $ 106 |
Schedule of activity related to the product warranty liability | Years ended December 31, December 31, Balance at beginning of period $ 36 $ 25 Provisions for warranty issued 13 11 Balance at end of period $ 49 $ 36 |
Schedule of deferred revenues | As of 2022 2021 Deferred revenues license fees $ 20 $ 28 Deferred revenues products 9 70 Deferred non-recurring engineering 7 8 $ 36 $ 106 |
Schedule of weighted-average exchange rates for the consolidated statements of operations | Years ended 2022 2021 Swedish Krona 10.12 8.58 Japanese Yen 131.72 109.82 South Korean Won 1,292.25 1,144.95 Taiwan Dollar 29.81 27.93 |
Schedule of exchange rates for the consolidated balance sheets | As of 2022 2021 Swedish Krona 10.43 9.03 Japanese Yen 131.12 115.12 South Korean Won 1,261.91 1,190.75 Taiwan Dollar 30.66 27.71 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of prepaid expense and other current assets | As of 2022 2021 Prepaid insurance $ 140 $ 189 Prepaid rent 91 6 VAT receivable 297 345 Advances - 3 Advances to suppliers - 38 Other 179 255 Total prepaid expenses and other current assets $ 707 $ 836 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | As of 2022 2021 Computers, software, furniture and fixtures $ 1,336 $ 1,484 Equipment 2,639 3,463 Less accumulated depreciation and amortization (3,693 ) (4,571 ) Property and equipment, net $ 282 $ 376 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses [Abstract] | |
Schedule of accrued expenses | As of 2022 2021 Accrued returns and warranty $ 49 $ 36 Accrued consulting fees and other 151 335 Total accrued expenses $ 200 $ 371 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrant activity | Outstanding and exercisable Warrants Weighted Weighted January 1, 2021 431,368 $ 11.20 0.13 Expired/forfeited - - - December 31, 2021 431,368 $ 11.20 0.13 Issued - - - Expired/forfeited (431,368 ) (11.20 ) - Exercised - - - December 31, 2022 - $ - - |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Schedule of options outstanding by exercise price range | Options Outstanding Range of Exercise Price Number Weighted Weighted $ 0 - $ 15.00 2,500 0.59 $ 14.40 2,500 0.59 $ 14.40 |
Schedule of all stock option plans | Options Outstanding Weighted- Average Weighted- Remaining Average Contractual Aggregate Number of Exercise Life Intrinsic Shares Price (in years) Value Options outstanding – January 1, 2021 10,500 $ 29.61 1.40 $ - Options granted - - - Options exercised - - - Options cancelled or expired (1,000 ) 62.10 - Options outstanding – December 31, 2021 9,500 $ 26.19 0.54 - Options granted - - - Options exercised - - - Options cancelled or expired (7,000 ) 30.40 - Options outstanding and vested – December 31, 2022 2,500 $ 14.40 0.59 $ - |
Schedule of stock-based compensation expense | Years ended 2022 2021 (In thousands) Sales and marketing $ 8 $ 50 General and administrative 114 107 Stock-based compensation expense $ 122 $ 157 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of components of lease expense | Years ended 2022 2021 Operating lease cost (1) $ 596 $ 662 Finance lease cost: Amortization of leased assets $ 66 $ 585 Interest on lease liabilities 8 14 Total finance lease cost $ 74 $ 599 (1) Includes short term lease costs of $180,000 and $127,000 for the years ended December 31, 2022 and 2021. |
Schedule of supplemental cash flow information related to leases | Years ended 2022 2021 Cash paid for amounts included in leases: Operating cash flows from operating leases $ (399 ) $ (505 ) Operating cash flows from finance leases (8 ) (14 ) Financing cash flows from finance leases (165 ) (487 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases - 239 Finance leases 24 - |
Schedule of supplemental balance sheet information | As of 2022 2021 Operating leases Operating lease right-of-use assets, net $ 118 $ 584 Current portion of operating lease obligations $ 83 $ 425 Operating lease liabilities, net of current portion 35 117 Total operating lease liabilities $ 118 $ 542 Finance leases Property and equipment, at cost $ 2,622 $ 3,463 Accumulated depreciation (2,418 ) (3,199 ) Property and equipment, net $ 204 $ 264 Current portion of finance lease obligations $ 95 $ 258 Finance lease liabilities, net of current portion 46 65 Total finance lease liabilities $ 141 $ 323 Year ended Weighted-Average Remaining Lease Term Operating leases 1.8 years Finance leases 1.5 years Weighted-Average Discount Rate Operating leases (2) 5 % Finance leases 2 % (2) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
Schedule of future minimum payments under non-cancellable operating lease commitments | Years ending December 31, Total 2023 $ 71 2024 53 Total minimum payments required: 124 Less imputed interest (6 ) Total lease liabilities 118 Less current portion (83 ) $ 35 |
Schedule of minimum future rentals on the non-cancellable finance leases | Year ending December 31, Total 2023 $ 98 2024 28 2025 19 Total minimum payments required: 145 Less amount representing interest: (4 ) Present value of net minimum lease payments: 141 Less current portion (95 ) $ 46 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information [Abstract] | |
Schedule of revenues by geographic region | 2022 2021 Amount Percentage Amount Percentage United States $ 1,839 33 % $ 2,241 39 % Japan 1,742 31 % 1,894 33 % South Korea 861 15 % 894 15 % Switzerland 398 7 % 73 1 % Germany 298 5 % 303 5 % France 193 3 % 7 - % Sweden 155 3 % 22 - % China 130 2 % 311 5 % Other 54 1 % 91 2 % Total $ 5,670 100 % $ 5,836 100 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of loss before income taxes by geographically | 2022 2021 Domestic $ (4,453 ) $ (5,570 ) Foreign (712 ) (1,552 ) Total $ (5,165 ) $ (7,122 ) |
Schedule of provision for income taxes | 2022 2021 Current Federal $ - $ - State - - Foreign 118 146 Change in deferred Federal (186 ) (1,177 ) Federal valuation allowance 186 1,177 State (3 ) - State valuation allowance 3 - Foreign (3,517 ) (1,842 ) Foreign valuation allowance 3,517 1,842 Total current $ 118 $ 146 |
Schedule of effective income tax rate and the U.S. federal statutory federal income tax rate | 2022 2021 Amounts at statutory tax rates 21 % 21 % Foreign losses taxed at different rates (1 )% (1 )% Stock-based compensation (1 )% (1 )% GILTI inclusion (16 )% - % Other (2 )% (1 )% Total 1 % 18 % Valuation allowance (3 )% (20 )% Effective tax rate (2 )% (2 )% |
Schedule of significant components of the deferred tax asset | 2022 2021 Deferred tax assets: Accruals $ (13 ) $ (87 ) Stock compensation 4 38 Net operating losses 25,608 21,943 Total deferred tax assets 25,599 21,894 Valuation allowance (25,599 ) (21,894 ) Total net deferred tax assets $ - $ - |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of potentially dilutive common stock | Years ended (In thousands, except per share amounts) 2022 2021 BASIC AND DILUTED Weighted average number of common shares outstanding 13,632 11,907 Net loss attributable to common shareholders of Neonode Inc. $ (4,883 ) $ (6,450 ) Net loss per share basic and diluted $ (0.36 ) $ (0.54 ) |
Nature of the Business and Op_2
Nature of the Business and Operations (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 21, 2021 | Jan. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 10, 2021 | |
Nature of the Business and Operations (Details) [Line Items] | |||||
Net losses | $ 4,900,000 | $ 6,500,000 | |||
Accumulated deficit | 207,500,000 | ||||
Cash used in operating activities | $ 6,800,000 | $ 7,700,000 | |||
Aggregate common stock (in Shares) | 1,808,000 | 886,065 | 235,722 | ||
Price per share (in Dollars per share) | $ 7.75 | ||||
Net proceeds | $ 13,100,000 | $ 4,686,000 | |||
Sales agent | $ 25,000,000 | ||||
Sales of agreement percentage | 3% | ||||
Other expenses | $ 167,000 | $ 66,000 | |||
Net proceeds | $ 4,686,000 | $ 1,984,000 | |||
Subsequent Event [Member] | |||||
Nature of the Business and Operations (Details) [Line Items] | |||||
Aggregate common stock (in Shares) | 903,716 | ||||
Other expenses | $ 244,000 | ||||
Net proceeds | $ 7,868,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Investment Owned, at Cost | $ 51 | |
Voting rights percentage | 50% | |
Insurance coverage, description | For deposits held with financial institutions in the U.S., the U.S. Federal Deposit Insurance Corporation, provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 100,000 Euro per customer and covers deposits in all types of accounts. The Japanese government provides insurance coverage up to 10,000,000 Yen per customer. The Korea Deposit Insurance Corporation provides insurance coverage up to 50,000,000 Won per customer. The Central Deposit Insurance Corporation in Taiwan provides insurance coverage up to 3,000,000 Taiwan Dollar per customer. At times, deposits held with financial institutions may exceed the amount of insurance provided. | |
Insurance coverage per customer (in Shares) | shares | 10,000,000 | |
Inventory reserve amount | $ 200,000 | |
General and administrative expenses | 35,000 | |
Foreign currency translation gains (losses) | $ 68,000 | $ (4,000) |
Number of customers | 5 | 4 |
Accounts receivable percentage | 83% | 76% |
Revenues percentage | 10% | 10% |
Reduction of our accounts receivable and revenue | $ 9,000 | $ 69,000 |
Accrued expense and cost of sales | 49,000 | 36,000 |
Contracted revenue not yet recognized | $ 36,000 | |
Recognized revenues percent | 100% | |
Recognized revenues | $ 41,000 | 41,000 |
Advertising costs | $ 158,000 | 208,000 |
Outstanding voting shares percentage | 50% | |
Neonode Technologies AB [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Remaining percentage | 49% | |
Accounts Receivable [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Allowance for doubtful accounts | $ 30,000 | 79,000 |
United States [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Net assets | 15,535,000 | 17,198,000 |
Europe [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Net assets | 3,857,000 | 2,611,000 |
Asia [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Net assets | 26,000 | 28,000 |
AirBar [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Inventory reserve amount | $ 300,000 | $ 800,000 |
Hewlett Packard Company [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenues percentage | 27% | 32% |
Seiko Epson [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenues percentage | 19% | 18% |
LG [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenues percentage | 12% | 13% |
Alpine Electronics [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenues percentage | 10% | |
Korea Deposit Insurance Corporation [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Insurance coverage per customer (in Shares) | shares | 50,000,000 | |
Foreign Currency Gain (Loss) [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
General and administrative expenses | $ 66,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of inventory - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Inventory Abstract | ||
Raw materials | $ 3,177 | $ 1,446 |
Work-in-process | 414 | 10 |
Finished goods | 236 | 1,064 |
Ending inventory | $ 3,827 | $ 2,520 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of straight-line method based upon estimated useful lives | 12 Months Ended |
Dec. 31, 2022 | |
Computer equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of straight-line method based upon estimated useful lives [Line Items] | |
Estimated useful lives | 3 years |
Furniture and fixtures [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of straight-line method based upon estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of straight-line method based upon estimated useful lives [Line Items] | |
Estimated useful lives | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated revenues - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AMER [Member] | ||
AMER | ||
Amount of net revenues | $ 1,839 | $ 2,246 |
Percentage of net revenues | 100% | 100% |
APAC [Member] | ||
AMER | ||
Amount of net revenues | $ 2,763 | $ 3,103 |
Percentage of net revenues | 100% | 100% |
EMEA [Member] | ||
AMER | ||
Amount of net revenues | $ 1,068 | $ 487 |
Percentage of net revenues | 100% | 100% |
Consumer Electronics [Member] | AMER [Member] | ||
AMER | ||
Amount of net revenues | $ 1,812 | $ 2,097 |
Percentage of net revenues | 98.50% | 93.40% |
Consumer Electronics [Member] | APAC [Member] | ||
AMER | ||
Amount of net revenues | $ 1,127 | $ 1,088 |
Percentage of net revenues | 40.80% | 35% |
Distributors and Other [Member] | AMER [Member] | ||
AMER | ||
Amount of net revenues | $ 27 | $ 149 |
Percentage of net revenues | 1.50% | 6.60% |
Distributors and Other [Member] | APAC [Member] | ||
AMER | ||
Amount of net revenues | $ 341 | $ 685 |
Percentage of net revenues | 12.30% | 22.10% |
Distributors and Other [Member] | EMEA [Member] | ||
AMER | ||
Amount of net revenues | $ 177 | $ 101 |
Percentage of net revenues | 16.60% | 20.70% |
Automotive [Member] | APAC [Member] | ||
AMER | ||
Amount of net revenues | $ 1,295 | $ 1,330 |
Percentage of net revenues | 46.90% | 42.90% |
Automotive [Member] | EMEA [Member] | ||
AMER | ||
Amount of net revenues | $ 493 | $ 313 |
Percentage of net revenues | 46.10% | 64.30% |
Medical [Member] | EMEA [Member] | ||
AMER | ||
Amount of net revenues | $ 398 | $ 73 |
Percentage of net revenues | 37.30% | 15% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable and deferred revenues - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Accounts Receivable And Deferred Revenues Abstract | ||
Accounts receivable and unbilled revenues | $ 1,448 | $ 1,293 |
Contract liabilities (deferred revenues) | $ 36 | $ 106 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of activity related to the product warranty liability - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Activity Related To The Product Warranty Liability Abstract | ||
Balance at beginning of period | $ 36 | $ 25 |
Provisions for warranty issued | 13 | 11 |
Balance at end of period | $ 49 | $ 36 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues [Line Items] | ||
Deferred revenues | $ 36 | $ 106 |
Deferred revenues license fees [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues [Line Items] | ||
Deferred revenues | 20 | 28 |
Deferred revenues products [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues [Line Items] | ||
Deferred revenues | 9 | 70 |
Deferred non-recurring engineering [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues [Line Items] | ||
Deferred revenues | $ 7 | $ 8 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Swedish Krona [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations [Line Items] | ||
Weighted-average exchange rate for statements of operations | 10.12 | 8.58 |
Japanese Yen [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations [Line Items] | ||
Weighted-average exchange rate for statements of operations | 131.72 | 109.82 |
South Korean Won [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations [Line Items] | ||
Weighted-average exchange rate for statements of operations | 1,292.25 | 1,144.95 |
Taiwan Dollar [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations [Line Items] | ||
Weighted-average exchange rate for statements of operations | 29.81 | 27.93 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets | Dec. 31, 2022 | Dec. 31, 2021 |
Swedish Krona [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets [Line Items] | ||
Exchange rate | 10.43 | 9.03 |
Japanese Yen [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets [Line Items] | ||
Exchange rate | 131.12 | 115.12 |
South Korean Won [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets [Line Items] | ||
Exchange rate | 1,261.91 | 1,190.75 |
Taiwan Dollar [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets [Line Items] | ||
Exchange rate | 30.66 | 27.71 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expense and other current assets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Prepaid Expense and Other Current Assets [Abstract] | ||
Prepaid insurance | $ 140 | $ 189 |
Prepaid rent | 91 | 6 |
VAT receivable | 297 | 345 |
Advances | 3 | |
Advances to suppliers | 38 | |
Other | 179 | 255 |
Total prepaid expenses and other current assets | $ 707 | $ 836 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 0.1 | $ 0.6 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Property And Equipment Abstract | ||
Computers, software, furniture and fixtures | $ 1,336 | $ 1,484 |
Equipment | 2,639 | 3,463 |
Less accumulated depreciation and amortization | (3,693) | (4,571) |
Property and equipment, net | $ 282 | $ 376 |
Accrued Expenses (Details) - Sc
Accrued Expenses (Details) - Schedule of accrued expenses - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Accrued Expenses [Abstract] | ||
Accrued returns and warranty | $ 49 | $ 36 |
Accrued consulting fees and other | 151 | 335 |
Total accrued expenses | $ 200 | $ 371 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | 12 Months Ended | ||||
Oct. 21, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 29, 2021 | Aug. 12, 2021 | |
Stockholders’ Equity (Details) [Line Items] | |||||
Authorized shares | 25,000,000 | ||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||
Shares issued | 14,735 | ||||
Net proceeds (in Dollars) | $ 4,686,000 | $ 1,984,000 | |||
Aggregate shares | 1,808,000 | 886,065 | 235,722 | ||
Other expenses (in Dollars) | $ 167,000 | $ 66,000 | |||
Preferred stock shares authorized | 1,000,000 | 1,000,000 | |||
Preferred stock, par value per share (in Dollars per share) | $ 0.001 | $ 0.001 | |||
Common Stock [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Shares issued | 12,830 | ||||
Warrant [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Shares issued | 431,368 | ||||
Common Stock [Member] | Private Placement [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Number of shares | 1,808,000 | ||||
Shares price (in Dollars per share) | $ 7.75 | ||||
Net proceeds (in Dollars) | $ 13,100,000 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - Schedule of warrant activity - Warrant [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||
Number of Warrants, Outstanding and exercisable, Beginning Balance | 431,368 | 431,368 |
Weighted Average Exercise Price, Outstanding and exercisable, Beginning Balance | $ 11.2 | $ 11.2 |
Weighted Average Remaining Contractual Life, Outstanding and exercisable, Beginning Balance | 1 month 17 days | |
Warrants, Issued | ||
Weighted Average Exercise Price, Issued | ||
Weighted Average Remaining Contractual Life, Issued | ||
Number of Warrants, Outstanding and exercisable, Expired/forfeited | (431,368) | |
Weighted Average Exercise Price, Outstanding and exercisable, Expired/forfeited | $ (11.2) | |
Weighted Average Remaining Contractual Life, Expired/forfeited | ||
Warrants, Exercised | ||
Weighted Average Exercise Price, Exercised | ||
Weighted Average Remaining Contractual Life, Exercised | ||
Number of Warrants, Outstanding and exercisable, Ending Balance | 431,368 | |
Weighted Average Exercise Price, Outstanding and exercisable, Ending Balance | $ 11.2 | |
Weighted Average Remaining Contractual Life, Outstanding and exercisable, Ending Balance | 1 month 17 days |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Aug. 12, 2021 | Sep. 15, 2022 | May 20, 2022 | Dec. 29, 2021 | Dec. 29, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation (Details) [Line Items] | ||||||||
Common stock shares issued (in Shares) | 12,830 | 14,735 | 37,288 | |||||
Market value, percentage | 30% | 30% | 30% | 30% | ||||
Paid swedish social charges | $ 5,000 | $ 46,000 | $ 75,000 | |||||
Percentage of shares issued | 30% | 30% | 30% | |||||
Stock-based compensation | $ 5,000 | $ 38,000 | $ 77,000 | |||||
Repurchased common stock from employee shares (in Shares) | 10,252 | |||||||
Repurchased common stock from employee value | $ 12,000 | |||||||
Stock-based compensation | $ 122,000 | 157,000 | ||||||
Term of stock options, description | Stock options granted under the 2006 and 2015 Plans are exercisable over a maximum term of ten 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. | |||||||
Unrecognized compensation expense | $ 60,000 | |||||||
Minimum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Future unearned bonus, percentage | 50% | |||||||
Maximum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Future unearned bonus, percentage | 67% | |||||||
Employees [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Paid swedish social charges | $ 21,000 | |||||||
Percentage of shares issued | 30% | |||||||
Stock-based compensation | $ 25,000 | |||||||
Two Thousand Twenty Plan [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Common stock shares issued (in Shares) | 4,000 | 750,000 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of options outstanding by exercise price range | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding and exercisable at 12/31/22 (in Shares) | shares | 2,500 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 7 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $ 14.4 |
$ 0 - $ 15.00 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding and exercisable at 12/31/22 (in Shares) | shares | 2,500 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 7 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $ 14.4 |
$ 0 - $ 15.00 [Member] | Minimum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Lower Range Limit | 0 |
$ 0 - $ 15.00 [Member] | Maximum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Upper Range Limit | $ 15 |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details) - Schedule of all stock option plans - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of All Stock Option Plans Abstract | ||
Number of Shares, Options outstanding, Beginning Balance | 9,500 | 10,500 |
Weighted-Average Exercise Price, Options outstanding, Beginning Balance | $ 26.19 | $ 29.61 |
Weighted-Average Remaining Contractual Life (in years), Options outstanding, Beginning Balance | 1 year 4 months 24 days | |
Aggregate Intrinsic Value, Options outstanding, Beginning Balance | ||
Number of Shares, Options granted | ||
Weighted-Average Exercise Price, Options granted | ||
Aggregate Intrinsic Value, Options granted | ||
Number of Shares, Options exercised | ||
Weighted-Average Exercise Price, Options exercised | ||
Aggregate Intrinsic Value, Options exercised | ||
Number of Shares, Options cancelled or expired | (7,000) | (1,000) |
Weighted-Average Exercise Price, Options cancelled or expired | $ 30.4 | $ 62.1 |
Aggregate Intrinsic Value,Options cancelled or expired | ||
Number of Shares, Options outstanding, Ending Balance | 2,500 | 9,500 |
Weighted-Average Exercise Price, Options outstanding, Ending Balance | $ 14.4 | $ 26.19 |
Weighted-Average Remaining Contractual Life (in years), Options outstanding, Ending Balance | 7 months 2 days | 6 months 14 days |
Aggregate Intrinsic Value, Options outstanding, Ending Balance |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items] | ||
Stock-based compensation expense | $ 122 | $ 157 |
Sales and marketing [Member] | ||
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items] | ||
Stock-based compensation expense | 8 | 50 |
General and administrative [Member] | ||
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items] | ||
Stock-based compensation expense | $ 114 | $ 107 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | |
Sep. 09, 2021 | Apr. 25, 2013 | |
Commitments and Contingencies [Abstract] | ||
Plaintiffs attorneys fees and expenses | $ 400,000 | |
Non-recurring engineering costs, description | 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 Application Specific Integrated Circuit (“ASIC”). Under the terms of the NN1002 Agreement, we agreed to pay TI $500,000 of non-recurring engineering costs at the rate of $0.25 per ASIC for each of the first 2,000,000 ASICs sold. As of December 31, 2022, we had made no payments to TI under the NN1002 Agreement. |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Lease cost increase percentage | 2% | |
Short term lease costs | $ 180,000 | $ 127,000 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of components of lease expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule Of Components Of Lease Expense Abstract | |||
Operating lease cost | [1] | $ 596 | $ 662 |
Finance lease cost: | |||
Amortization of leased assets | 66 | 585 | |
Interest on lease liabilities | 8 | 14 | |
Total finance lease cost | $ 74 | $ 599 | |
[1] Includes short term lease costs of $180,000 and $127,000 for the years ended December 31, 2022 and 2021. |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of supplemental cash flow information related to leases - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Supplemental Cash Flow Information Related To Leases Abstract | ||
Operating cash flows from operating leases | $ (399) | $ (505) |
Operating cash flows from finance leases | (8) | (14) |
Financing cash flows from finance leases | (165) | (487) |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 239 | |
Finance leases | $ 24 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of supplemental balance sheet information - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating leases | |||
Operating lease right-of-use assets, net | $ 118 | $ 584 | |
Current portion of operating lease obligations | 83 | 425 | |
Operating lease liabilities, net of current portion | 35 | 117 | |
Total operating lease liabilities | 118 | 542 | |
Finance leases | |||
Property and equipment, at cost | 2,622 | 3,463 | |
Accumulated depreciation | (2,418) | (3,199) | |
Property and equipment, net | 204 | 264 | |
Current portion of finance lease obligations | 95 | 258 | |
Finance lease liabilities, net of current portion | 46 | 65 | |
Total finance lease liabilities | $ 141 | $ 323 | |
Weighted-Average Remaining Lease Term | |||
Operating leases | 1 year 9 months 18 days | ||
Finance leases | 1 year 6 months | ||
Weighted-Average Discount Rate | |||
Operating leases | [1] | 5% | |
Finance leases | 2% | ||
[1] Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of future minimum payments under non-cancellable operating lease commitments $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule Of Future Minimum Payments Under Non Cancellable Operating Lease Commitments Abstract | |
2023 | $ 71 |
2024 | 53 |
Total minimum payments required: | 124 |
Less imputed interest | (6) |
Total lease liabilities | 118 |
Less current portion | (83) |
Total | $ 35 |
Leases (Details) - Schedule o_5
Leases (Details) - Schedule of minimum future rentals on the non-cancellable finance leases - Financial Lease [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Leases (Details) - Schedule of minimum future rentals on the non-cancellable finance leases [Line Items] | |
2023 | $ 98 |
2024 | 28 |
2025 | 19 |
Total minimum payments required: | 145 |
Less amount representing interest: | (4) |
Present value of net minimum lease payments: | 141 |
Less current portion | (95) |
Total | $ 46 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information [Abstract] | |
Number of segment | 1 |
Segment Information (Details) -
Segment Information (Details) - Schedule of revenues by geographic region - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 5,670 | $ 5,836 |
Revenues percentage | 100% | 100% |
United States [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 1,839 | $ 2,241 |
Revenues percentage | 33% | 39% |
Japan [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 1,742 | $ 1,894 |
Revenues percentage | 31% | 33% |
South Korea [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 861 | $ 894 |
Revenues percentage | 15% | 15% |
Switzerland [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 398 | $ 73 |
Revenues percentage | 7% | 1% |
Germany [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 298 | $ 303 |
Revenues percentage | 5% | 5% |
France [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 193 | $ 7 |
Revenues percentage | 3% | |
Sweden [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 155 | 22 |
Revenues percentage | 3% | |
China [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 130 | $ 311 |
Revenues percentage | 2% | 5% |
Other [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 54 | $ 91 |
Revenues percentage | 1% | 2% |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Taxes (Details) [Line Items] | |
Open tax years | The 2008 through 2021 tax years are open and may be subject to potential examination in one or more jurisdictions. |
Federal [Member] | |
Income Taxes (Details) [Line Items] | |
Operating loss carryforwards | $ 75.6 |
State [Member] | |
Income Taxes (Details) [Line Items] | |
Operating loss carryforwards | 20.1 |
Foreign [Member] | |
Income Taxes (Details) [Line Items] | |
Operating loss carryforwards | $ 40.4 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of loss before income taxes by geographically - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Loss Before Income Taxes By Geographically Abstract | ||
Domestic | $ (4,453) | $ (5,570) |
Foreign | (712) | (1,552) |
Total | $ (5,165) | $ (7,122) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of provision for income taxes - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||
Federal | ||
State | ||
Foreign | 118 | 146 |
Change in deferred | ||
Federal | (186) | (1,177) |
Federal valuation allowance | 186 | 1,177 |
State | (3) | |
State valuation allowance | 3 | |
Foreign | (3,517) | (1,842) |
Foreign valuation allowance | 3,517 | 1,842 |
Total current | $ 118 | $ 146 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of effective income tax rate and the U.S. federal statutory federal income tax rate | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Effective Income Tax Rate And The USFederal Statutory Federal Income Tax Rate Abstract | ||
Amounts at statutory tax rates | 21% | 21% |
Foreign losses taxed at different rates | (1.00%) | (1.00%) |
Stock-based compensation | (1.00%) | (1.00%) |
GILTI inclusion | (16.00%) | |
Other | (2.00%) | (1.00%) |
Total | 1% | 18% |
Valuation allowance | (3.00%) | (20.00%) |
Effective tax rate | (2.00%) | (2.00%) |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of significant components of the deferred tax asset - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Accruals | $ (13) | $ (87) |
Stock compensation | 4 | 38 |
Net operating losses | 25,608 | 21,943 |
Total deferred tax assets | 25,599 | 21,894 |
Valuation allowance | (25,599) | (21,894) |
Total net deferred tax assets |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Plans (Details) [Line Items] | ||
Employee’s annual salary percentage | 30% | |
Defined benefit plan contribution, percentage | 6% | |
Pension Plans [Member] | ||
Employee Benefit Plans (Details) [Line Items] | ||
Employee’s annual salary percentage | 4.50% | |
Pension Plans for Swedish Employees [Member] | ||
Employee Benefit Plans (Details) [Line Items] | ||
Defined benefit plan contribution, amount | $ 555,000 | $ 587,000 |
U.S. Employee 401K Pension Plan [Member] | ||
Employee Benefit Plans (Details) [Line Items] | ||
Defined benefit plan contribution, amount | $ 6,000 | 10,000 |
Defined benefit plan contribution, percentage | 6% | |
Pension Plans for Taiwan Employees [Member] | ||
Employee Benefit Plans (Details) [Line Items] | ||
Defined benefit plan contribution, amount | $ 4,000 | $ 2,000 |
Net Loss Per Share (Details) -
Net Loss Per Share (Details) - Schedule of potentially dilutive common stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
BASIC AND DILUTED | ||
Weighted average number of common shares outstanding | 13,632 | 11,907 |
Net loss attributable to common shareholders of Neonode Inc. | $ (4,883) | $ (6,450) |
Net loss per share basic | $ (0.36) | $ (0.54) |
Net Loss Per Share (Details) _2
Net Loss Per Share (Details) - Schedule of potentially dilutive common stock (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Potentially Dilutive Common Stock Abstract | ||
Weighted average number of common shares outstanding | 13,632 | 11,907 |
Net loss per share diluted | $ (0.36) | $ (0.54) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 1 Months Ended |
Jan. 31, 2023 USD ($) shares | |
Subsequent Events (Details) [Line Items] | |
Aggregate shares | shares | 903,716 |
Aggregate net proceeds | $ | $ 7,868,000 |