Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 26, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s definitive proxy statement for the registrant’s 2024 Annual Meeting of Stockholders are incorporated by reference as set forth in Part III of this Annual Report. The registrant intends to file such definitive proxy statement with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2023. | ||
Entity Information [Line Items] | |||
Entity Registrant Name | NEONODE INC. | ||
Entity Central Index Key | 0000087050 | ||
Entity File Number | 001-35526 | ||
Entity Tax Identification Number | 94-1517641 | ||
Entity Incorporation, State or Country Code | DE | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 93,411,014 | ||
Entity Contact Personnel [Line Items] | |||
Entity Address, Address Line One | Karlavägen 100 | ||
Entity Address, City or Town | Stockholm | ||
Entity Address, Country | SE | ||
Entity Address, Postal Zip Code | 115 26 | ||
Entity Phone Fax Numbers [Line Items] | |||
City Area Code | +46 (0) | ||
Local Phone Number | 70 29 58 519 | ||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | NEON | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 15,359,481 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Table] | |
Auditor Name | KMJ Corbin & Company LLP |
Auditor Firm ID | 170 |
Auditor Location | Irvine, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 16,155 | $ 14,816 |
Accounts receivable and unbilled revenues, net | 917 | 1,448 |
Inventory | 610 | 3,827 |
Prepaid expenses and other current assets | 938 | 707 |
Total current assets | 18,620 | 20,798 |
Property and equipment, net | 340 | 282 |
Operating lease right-of-use assets, net | 54 | 118 |
Total assets | 19,014 | 21,198 |
Current liabilities: | ||
Accounts payable | 440 | 334 |
Accrued payroll and employee benefits | 941 | 951 |
Accrued expenses | 354 | 200 |
Contract liabilities | 10 | 36 |
Current portion of finance lease obligations | 33 | 95 |
Current portion of operating lease obligations | 54 | 83 |
Total current liabilities | 1,832 | 1,699 |
Finance lease obligations, net of current portion | 19 | 46 |
Operating lease obligations, net of current portion | 35 | |
Total liabilities | 1,851 | 1,780 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, 25,000,000 shares authorized, with par value of $0.001; 15,359,481 and 14,455,765 shares issued and outstanding at December 31, 2023 and 2022, respectively | 15 | 14 |
Additional paid-in capital | 235,158 | 227,235 |
Accumulated other comprehensive loss | (396) | (340) |
Accumulated deficit | (217,614) | (207,491) |
Total stockholders’ equity | 17,163 | 19,418 |
Total liabilities and stockholders’ equity | $ 19,014 | $ 21,198 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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 | 15,359,481 | 14,455,765 |
Common stock, shares outstanding | 15,359,481 | 14,455,765 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues: | ||
Total revenues | $ 4,449 | $ 5,670 |
Cost of revenues: | ||
Total cost of revenues | 4,542 | 804 |
Total gross (loss) margin | (93) | 4,866 |
Operating expenses: | ||
Research and development | 3,833 | 3,963 |
Sales and marketing | 2,455 | 2,034 |
General and administrative | 4,363 | 4,155 |
Total operating expenses | 10,651 | 10,152 |
Operating loss | (10,744) | (5,286) |
Other income: | ||
Interest income, net | 730 | 100 |
Other income | 6 | 21 |
Total other income | 736 | 121 |
Loss before provision for income taxes | (10,008) | (5,165) |
Provision for income taxes | 115 | 118 |
Net loss including noncontrolling interests | (10,123) | (5,283) |
Less: net loss attributable to noncontrolling interests | 400 | |
Net loss attributable to Neonode Inc. | $ (10,123) | $ (4,883) |
Loss per common share: | ||
Basic loss per share (in Dollars per share) | $ (0.66) | $ (0.36) |
Basic – weighted average number of common shares outstanding (in Shares) | 15,322 | 13,632 |
License fees | ||
Revenues: | ||
Total revenues | $ 3,803 | $ 4,470 |
Products | ||
Revenues: | ||
Total revenues | 620 | 995 |
Cost of revenues: | ||
Total cost of revenues | 4,168 | 776 |
Non-recurring engineering | ||
Revenues: | ||
Total revenues | 26 | 205 |
Cost of revenues: | ||
Total cost of revenues | 12 | 28 |
Loss on purchase commitment | ||
Cost of revenues: | ||
Total cost of revenues | $ 362 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Diluted loss per share | $ (0.66) | $ (0.36) |
Diluted – weighted average number of common shares outstanding | 15,322 | 13,632 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss including noncontrolling interests | $ (10,123) | $ (5,283) |
Other comprehensive income: | ||
Foreign currency translation adjustments | (56) | 68 |
Other comprehensive loss | (10,179) | (5,215) |
Less: comprehensive loss attributable to noncontrolling interests | 400 | |
Comprehensive loss attributable to Neonode Inc. | $ (10,179) | $ (4,815) |
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 |
Balance beginning at Dec. 31, 2021 | $ 14 | $ 226,880 | $ (408) | $ (202,608) | $ 23,878 | $ (4,041) | $ 19,837 |
Balance beginning (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 ending at Dec. 31, 2022 | $ 14 | 227,235 | (340) | (207,491) | 19,418 | $ 19,418 | |
Balance ending (in Shares) at Dec. 31, 2022 | 14,456 | 14,455,765 | |||||
Issuance of shares for cash, net of offering costs | $ 1 | 7,865 | 7,866 | $ 7,866 | |||
Issuance of shares for cash, net of offering costs (in Shares) | 903 | ||||||
Stock-based compensation | 58 | 58 | 58 | ||||
Foreign currency translation adjustment | (56) | (56) | (56) | ||||
Net loss | (10,123) | (10,123) | (10,123) | ||||
Balance ending at Dec. 31, 2023 | $ 15 | $ 235,158 | $ (396) | $ (217,614) | $ 17,163 | $ 17,163 | |
Balance ending (in Shares) at Dec. 31, 2023 | 15,359 | 15,359,481 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss (including noncontrolling interests) | $ (10,123) | $ (5,283) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 58 | 122 |
Depreciation and amortization | 95 | 120 |
Amortization of operating lease right-of-use assets | 65 | 399 |
Inventory impairment loss | 3,572 | |
Recoveries of bad debt | (46) | |
Changes in operating assets and liabilities: | ||
Accounts receivable and unbilled revenue, net | 539 | (136) |
Inventory | (395) | (1,133) |
Prepaid expenses and other current assets | (201) | 37 |
Accounts payable, accrued payroll and employee benefits, and accrued expenses | 173 | (460) |
Contract liabilities | (26) | (65) |
Operating lease obligations | (65) | (363) |
Net cash used in operating activities | (6,308) | (6,808) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (123) | (52) |
Net cash used in investing activities | (123) | (52) |
Cash flow from financing activities: | ||
Proceeds from issuance of common stock, net of offering costs | 7,866 | 4,686 |
Repurchase of common stock | (12) | |
Principal payments on finance lease obligations | (89) | (165) |
Net cash provided by financing activities | 7,777 | 4,509 |
Effect of exchange rate changes on cash and cash equivalents | (7) | (216) |
Net increase (decrease) in cash and cash equivalents | 1,339 | (2,567) |
Cash and cash equivalents at beginning of year | 14,816 | 17,383 |
Cash and cash equivalents at end of year | 16,155 | 14,816 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 9 | 9 |
Cash paid for income taxes | 115 | 132 |
Supplemental disclosure of non-cash investing and financial activities: | ||
Right-of-use asset obtained in exchange for finance lease obligations | 24 | |
Acquisition of Pronode shares | $ 4,441 |
Nature of the Business and Oper
Nature of the Business and Operations | 12 Months Ended |
Dec. 31, 2023 | |
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). Neonode Korea Ltd. is currently dormant. 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, and gesture sensing, and object detection products and solutions based on our zForce technology platform, and our scene analysis solutions based on our MultiSensing technology platform. We offer our solutions to customers in many different markets and segments including, but not limited to, office equipment, automotive, industrial automation, medical, military and avionics. With the new, sharpened strategy, announced in December 2023, we focus solely on the licensing business. This allows customers to license our unique and advanced technology to create bespoke products and solutions that bring value to end customers. Liquidity We have incurred significant operating losses and negative cash flows from operations since our inception. The Company incurred net losses of approximately $10.1 million and $4.9 million for the years ended December 31, 2023 and 2022, respectively, and had an accumulated deficit of approximately $217.6 million as of December 31, 2023. In addition, operating activities used cash of approximately $6.3 million and $6.8 million for the years ended December 31, 2023 and 2022, respectively. 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 Sales 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 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 Sales Agreement. The offering of shares pursuant to the Sales 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 Sales Agreement in accordance with its terms. During the year ended December 31, 2023, we sold an aggregate of 903,716 shares of our common stock under the ATM Facility with aggregate net proceeds to us of $7,866,000, after payment of commissions to B. Riley Securities and other expenses of $244,000. During the year 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. 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 has evaluated the significance of the Company’s operating loss and has determined that the Company’s current operating plan and sources of potential capital (including the Company’s at-the-market facility described above) are sufficient to alleviate concerns about the Company’s ability to continue as a going concern. In the future, we may require additional sources of capital to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek equity investments or debt arrangements. No assurances can be given that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available to us on acceptable terms, or at all, we may be unable to adequately fund our business plans, which could have a negative effect on our business, results of operations and financial condition. If funds are available through the issuance of equity or debt securities, the issuance of equity securities or securities convertible into equity could dilute the value of shares of our common stock and cause the market price to fall, and the issuance of debt securities could impose restrictive covenants on us that could impair our ability to engage in certain business transactions. We expect revenues will enable us to reduce our operating losses in coming years. In addition, we intend to continue to implement various measures to improve our operational efficiencies. No assurances can be given that management will be successful in meeting its revenue targets and reducing its operating loss. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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 well as Pronode Technologies AB, a 51% majority-owned subsidiary of Neonode Technologies AB, until September 30, 2022. On October 1, 2022, the remaining 49% of Pronode Technologies AB was acquired from 2X Communication 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, 2023 and 2022 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the years ended December 31, 2023 and 2022 include our accounts and those of our wholly owned subsidiaries. Estimates and Judgements 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 capitalized project costs and long-lived assets; for leases, determining whether a contract contains a lease, allocating consideration between lease and non-lease components, determining incremental borrowing rates, and identifying reassessment events, such as modifications; the valuation allowance related to our deferred tax assets; and the fair value of options issued as stock-based compensation. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Concentration of Cash Balance Risks Cash and cash equivalents balances are maintained at various banks in the United States, Japan, Taiwan and Sweden. For deposits held with financial institutions in the United States, 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 1,050,000 Krona per customer and covers deposits in all types of accounts. For bank accounts of the category held by Neonode, the Japanese government provides full insurance coverage. 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 Credit Losses Accounts receivable is stated at net realizable value. We estimate and record a provision for expected credit losses related to our financial instruments, including our trade receivables. We consider historical collection rates, the current financial status of our customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable, we believe that the carrying value, net of expected losses, approximates fair value and therefore, we rely more on historical and current analysis of such financial instruments, including our trade receivables. Further, we consider macroeconomic factors and the status of the technology industry to estimate if there are current expected credit losses within our trade receivables based on the trends and our expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default. The accounts receivable balance on our consolidated balance sheet as of December 31, 2023 was $0.9 million, net of approximately $30,000 of allowances. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected at December 31, 2023: Balance at January 1, 2023 $ 30,000 Change in expected credit losses - Write-offs, net of recoveries - Balance at December 31, 2023 $ 30,000 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. With the new, sharpened strategy, announced in December 2023, the Company focuses solely on the licensing business. Consequently, we will phase out the TSM product business through licensing of the TSM technology to strategic partners or outsourcing. Management has decided to impair TSM related inventories which are expected to remain after production ends in 2024. The TSM inventory impairment charge was $3.6 million for the year ended December 31, 2023 and has been included as a component of cost of revenues for products. 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 as of December 31, 2022. In 2023, management decided to scrap the fully reserved AirBar inventory. Raw materials, work-in-process, and finished goods are as follows (in thousands): December 31, December 31, 2023 2022 Raw materials $ 319 $ 3,177 Work-in-process 192 414 Finished goods 99 236 Ending inventory $ 610 $ 3,827 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 Depreciation of 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 condensed 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 flows 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, 2023, 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 and 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). Foreign currency translation gains (losses) were $(56,000) and $68,000 during the years ended December 31, 2023 and 2022, respectively. Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $(5,000) and $35,000 during the years ended December 31, 2023 and 2022, respectively. Concentration of Credit and Business Risks Our customers are located in the United States, Europe, Oceania and Asia. As of December 31, 2023, four of our customers represented approximately 76.4% of our consolidated accounts receivable and unbilled revenues. As of December 31, 2022, five of our customers represented approximately 82.5% of our consolidated accounts receivable and unbilled revenues. Customers who accounted for 10% or more of our revenues during the year ended December 31, 2023 are as follows. ● Hewlett-Packard Company – 22.1% ● Seiko Epson – 17.7% ● Alpine Electronics – 16.6% Customers who accounted for 10% or more of our revenues during the year ended December 31, 2022 are as follows. ● Hewlett-Packard Company – 27.1% ● Seiko Epson – 19.4% ● LG – 12.2% ● Alpine Electronics – 10.0% The Company conducts business in the United States, Europe, Oceania and Asia. As of December 31, 2023, the Company maintained approximately $16,030,000, $1,100,000, and $33,000 of its net assets in the United States, Europe, and Asia, respectively. 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. 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 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, 2023. 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. Because we generally use distributors to provide 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 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 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 $8,000 and $9,000 as of December 31, 2023 and 2022, respectively. The warranty reserve is recorded as an accrued expense and cost of sales and was $30,000 and $49,000 as of December 31, 2023 and 2022, 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, 2023 and 2022, we recorded no losses. The following tables present the net revenues distribution by geographical area and market for the years ended December 31, 2023 and 2022 (dollars in thousands): 2023 2022 Amount Percentage Amount Percentage North America Net revenues from consumer electronics $ 1,455 90.9 % $ 1,812 98.5 % Net revenues from distributors and other 145 9.1 % 27 1.5 % $ 1,600 100.0 % $ 1,839 100.0 % Asia Pacific Net revenues from automotive $ 1,199 57.1 % $ 1,295 46.9 % Net revenues from consumer electronics 796 37.9 % 1,127 40.8 % Net revenues from distributors and other 105 5.0 % 341 12.3 % $ 2,100 100.0 % $ 2,763 100.0 % Europe, Middle East and Africa Net revenues from automotive $ 379 50.6 % $ 493 46.1 % Net revenues from medical 221 29.5 % 398 37.3 % Net revenues from distributors and other 149 19.9 % 177 16.6 % $ 749 100.0 % $ 1,068 100.0 % 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 our accounts receivable and unbilled revenues, and deferred revenues as of December 31, 2023 and 2022 (in thousands): December 31, December 31, Accounts receivable and unbilled revenues $ 917 $ 1,448 Contract liabilities (deferred revenues) $ 10 $ 36 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 credit losses 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 $ 49 $ 36 Provisions for (adjustments to) warranty issued (19 ) 13 Balance at end of period $ 30 $ 49 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 2023 2022 Deferred revenues license fees $ 2 $ 20 Deferred revenues products 8 9 Deferred revenues non-recurring engineering - 7 $ 10 $ 36 Deferred revenue not yet recognized was $10,000 as of December 31, 2023. We expect to recognize 100% of that revenue over the next twelve months. The Company recognized revenues of approximately $26,000 and $24,000, for 2023 and 2022, respectively, related to contract liabilities outstanding at the beginning of the year. Advertising Advertising costs are expensed as incurred. Advertising costs amounted to approximately $217,000 and $158,000 for the years ended December 31, 2023 and 2022, 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 Company, 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, 2023 and 2022. 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, 2023 and 2022, 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, 2023 and 2022. 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, 2023 and 2022 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 as accumulated other comprehensive income (loss) in the accompanying 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 rates for the consolidated statements of operations were as follows: Years ended 2023 2022 Swedish Krona 10.61 10.12 Japanese Yen 140.51 131.72 South Korean Won 1,306.69 1,292.25 Taiwan Dollar 31.16 29.81 Exchange rates for the consolidated balance sheets were as follows: As of 2023 2022 Swedish Krona 10.07 10.43 Japanese Yen 141.03 131.12 South Korean Won 1,294.53 1,261.91 Taiwan Dollar 30.68 30.66 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 and cash equivalents, accounts receivable, accounts payable and accrued expenses, are deemed to approximate fair value due to their short maturities. Recent 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 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 3. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): As of 2023 2022 Prepaid insurance $ 114 $ 140 Prepaid rent 108 91 VAT receivable 410 297 Other 306 179 Total prepaid expenses and other current assets $ 938 $ 707 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment, net consist of the following (in thousands): As of 2023 2022 Computers, software, furniture and fixtures $ 1,513 $ 1,336 Equipment 2,732 2,639 Less accumulated depreciation and amortization (3,905 ) (3,693 ) Property and equipment, net $ 340 $ 282 Depreciation and amortization expense was $0.1 million for each of the years ended December 31, 2023 and 2022. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses consist of the following (in thousands): As of 2023 2022 Accrued returns and warranty $ 30 $ 49 Accrued consulting fees and other 324 151 Total accrued expenses $ 354 $ 200 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 and 2022. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders’ Equity [Abstract] | |
Stockholders’ Equity | 7. Stockholders’ Equity Common Stock As of December 31, 2023 and 2022, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 25,000,000 shares of common stock, par value $0.001 per share. On May 20, 2022, we issued 4,000 shares of our common stock to a director pursuant to the Neonode Inc. 2020 Stock Incentive Plan (the “2020 Plan”) (see Note 8). 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 Long-Term Incentive Program (“2020 LTIP”). During the year 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 year ended December 31, 2023, we sold an aggregate of 903,716 shares of our common stock under the ATM Facility with aggregate net proceeds of $7,866,000, after payment of commissions to B. Riley Securities and other expenses of $244,000. Preferred Stock As of December 31, 2023 and 2022, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 1,000,000 shares of preferred stock, par value $0.001 per share. There were no No Warrants As of December 31, 2023 and 2022, the Company had no outstanding warrants to purchase common stock. During the year ended December 31, 2022, 431,368 warrants expired, and no warrants were exercised. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
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 and Long-Term Incentive Plan 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, 2023 and 2022, we recognized $58,000 and $122,000, 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, 2023: 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, 2022 9,500 $ 26.19 0.54 $ - Options granted - - - Options exercised - - - Options cancelled or expired (7,000 ) 30.40 - Options outstanding – December 31, 2022 2,500 $ 14.40 0.59 - Options granted - - - Options exercised - - - Options cancelled or expired (2,500 ) 14.40 - Options outstanding and vested – December 31, 2023 - $ - - $ - No stock options were granted during the years ended December 31, 2023 and 2022. During the years ended December 31, 2023 and 2022, 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, 2015 and 2020 Plans are exercisable over a maximum term of 10 years from the date of grant, vest in various installments over a one to four-year period and have exercise prices reflecting the market value of the shares of common stock on the date of grant. Stock-Based Compensation The stock-based compensation expense for the years ended December 31, 2023 and 2022 reflects the estimated fair value of the vested portion of common stock granted to directors and employees (in thousands): Years ended 2023 2022 Sales and marketing $ 8 $ 8 General and administrative 50 114 Stock-based compensation expense $ 58 $ 122 There is no remaining unrecognized compensation expense related to stock options as of December 31, 2023. Unrecognized compensation expense related to the 2020 Plan as of December 31, 2023 was $2,000, which will be recognized during 2024. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Legal The Company is subject to legal proceedings and claims that may arise in the ordinary course of business. The Company is not aware of any pending or threatened litigation matters at this time that would have a material impact on the operations of the Company. 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, 2023 and 2022. 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, 2023 and 2022. Patent Assignment On May 6, 2019, the Company assigned a portfolio of patents to Aequitas Technologies LLC ("Aequitas"), an unrelated third party. The assignment provides the Company the right to share the potential net proceeds to Aequitas generated from possible licensing and monetization program that Aequitas may enter into. Under the terms of the assignment, net proceeds means gross proceeds less out of pocket expenses and legal fees paid by Aequitas. The Company’s share would also be net of the Company’s own fees and expenses, including a brokerage fee payable by the Company in connection with the original assignment to Aequitas. On June 8, 2020, Neonode Smartphone LLC, an unrelated third party that is a subsidiary of Aequitas (“Aequitas Sub"), 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. In December 2022, the Patent Trial and Appeal Board invalidated one of the two patents, which Aequitas Sub is appealing. On August 2, 2023, the United States District Court for the Western District of Texas entered judgment in favor of Samsung. Aequitas Sub has filed an appeal to change this decision to the Federal Circuit. The case against Apple is still pending in the United States District Court for the Northern District of California. 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, 2023, we had made no payments to TI under the NN1002 Agreement. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
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 nine months to two years, and includes an option to annually extend. These 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 consolidated 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 for our manufacturing equipment. 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 2023 2022 Operating lease cost (1) $ 528 $ 596 Finance lease cost: Amortization of leased assets $ 39 $ 66 Interest on lease liabilities 7 8 Total finance lease cost $ 46 $ 74 (1) Includes short term lease costs of $458,000 and $180,000 for the years ended December 31, 2023 and 2022, respectively. Supplemental cash flow information related to leases was as follows (in thousands): Years ended 2023 2022 Cash paid for amounts included in leases: Operating cash flows from operating leases $ (65 ) $ (399 ) Operating cash flows from finance leases (7 ) (8 ) Financing cash flows from finance leases (89 ) (165 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases - - Finance leases - 24 Supplemental consolidated balance sheet information related to leases was as follows (in thousands): As of 2023 2022 Operating leases Operating lease right-of-use assets, net $ 54 $ 118 Current portion of operating lease obligations $ 54 $ 83 Operating lease liabilities, net of current portion - 35 Total operating lease liabilities $ 54 $ 118 Finance leases Property and equipment, at cost $ 2,714 $ 2,622 Accumulated depreciation (2,523 ) (2,418 ) Property and equipment, net $ 191 $ 204 Current portion of finance lease obligations $ 33 $ 95 Finance lease liabilities, net of current portion 19 46 Total finance lease liabilities $ 52 $ 141 Years ended 2023 2022 Weighted-Average Remaining Lease Term Operating leases 0.8 years 1.8 years Finance leases 1.3 years 1.5 years Weighted-Average Discount Rate Operating leases (2) 5.0 % 5.0 % Finance leases 2.6 % 2.5 % (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, 2023 is as follows (in thousands): Years ending December 31, Total 2024 $ 55 Total minimum payments required: 55 Less imputed interest (1 ) Total lease liabilities 54 Less current portion (54 ) $ - The following is a schedule of minimum future rentals on the non-cancelable finance leases as of December 31, 2023 (in thousands): Year ending December 31, Total 2024 $ 34 2025 20 Total minimum payments required: 54 Less amount representing interest: (2 ) Present value of net minimum lease payments: 52 Less current portion (33 ) $ 19 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Segment Information | 11. Segment Information We have one reportable segment, which is comprised of the touch technology licensing and products business. We report revenues from external customers based on the country where the customer is located. The following table presents net revenues by geographic area for the years ended December 31, 2023 and 2022 (dollars in thousands): 2023 2022 Amount Percentage Amount Percentage United States $ 1,599 35.8 % $ 1,839 32.5 % Japan 1,489 33.5 % 1,742 30.7 % South Korea 501 11.3 % 861 15.2 % Germany 401 9.0 % 298 5.3 % Switzerland 221 5.0 % 398 7.0 % China 79 1.8 % 130 2.3 % France 68 1.5 % 193 3.4 % Sweden 52 1.2 % 155 2.7 % Other 39 0.9 % 54 0.9 % Total $ 4,449 100.0 % $ 5,670 100.0 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes Loss before provision for income taxes was distributed geographically for the years ended December 31, 2023 and 2022 as follows (in thousands): 2023 2022 Domestic $ (5,221 ) $ (4,453 ) Foreign (4,787 ) (712 ) Total $ (10,008 ) $ (5,165 ) The provision (benefit) for income taxes is as follows for the years ended December 31, 2023 and 2022 (in thousands): 2023 2022 Current Federal $ - $ - State - - Foreign 115 118 Total current expense 115 118 Deferred Federal (1,054 ) (186 ) State - (3 ) Foreign (2,094 ) (3,517 ) Change in valuation allowance 3,148 3,706 Total deferred expense - - Total provision for income taxes $ 115 $ 118 The differences between our effective income tax rate and the U.S. federal statutory federal income tax rate for the years ended December 31, 2023 and 2022, are as follows: 2023 2022 Amounts at statutory tax rates 21 % 21 % Foreign losses taxed at different rates (10 )% (1 )% Stock-based compensation - % (1 )% GILTI inclusion - % (16 )% Other (2 )% (2 )% Total 9 % 1 % Valuation allowance (10 )% (3 )% Effective tax rate (1 )% (2 )% Significant components of the deferred tax asset balances at December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Deferred tax assets: Accruals $ 3 $ (13 ) Stock compensation - 4 Net operating losses 28,744 25,608 Total deferred tax assets 28,747 25,599 Valuation allowance (28,747 ) (25,599 ) 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, 2023, we had federal, state and foreign net operating losses of $80.8 million, $20.1 million and $50.0 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, 2023, 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, 2023 and 2022. 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, 2023 and 2022 we did not recognize any interest or penalties related to unrecognized tax benefits. As of December 31, 2023, 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 2022 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, 2023 | |
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, 2023 and 2022 were $510,000 and $546,000, 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, 2023 and 2022 were $6,000 and $6,000, 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, 2023 and 2022 were $3,000 and $4,000, respectively. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Net Loss Per Share [Abstract] | |
Net Loss per Share | 14. Net Loss Per Share Basic net loss per common share for the years ended December 31, 2023 and 2022 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, 2023 or 2022. Years ended (In thousands, except per share amounts) 2023 2022 BASIC AND DILUTED Weighted average number of common shares outstanding 15,322 13,632 Net loss attributable to Neonode Inc. $ (10,123 ) $ (4,883 ) Net loss per share - basic and diluted $ (0.66 ) $ (0.36 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events No subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (10,123) | $ (4,883) |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 well as Pronode Technologies AB, a 51% majority-owned subsidiary of Neonode Technologies AB, until September 30, 2022. On October 1, 2022, the remaining 49% of Pronode Technologies AB was acquired from 2X Communication 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, 2023 and 2022 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the years ended December 31, 2023 and 2022 include our accounts and those of our wholly owned subsidiaries. |
Estimates and Judgments | Estimates and Judgements 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 capitalized project costs and long-lived assets; for leases, determining whether a contract contains a lease, allocating consideration between lease and non-lease components, determining incremental borrowing rates, and identifying reassessment events, such as modifications; the valuation allowance related to our deferred tax assets; and the fair value of options issued as stock-based compensation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. |
Concentration of Cash Balance Risks | Concentration of Cash Balance Risks Cash and cash equivalents balances are maintained at various banks in the United States, Japan, Taiwan and Sweden. For deposits held with financial institutions in the United States, 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 1,050,000 Krona per customer and covers deposits in all types of accounts. For bank accounts of the category held by Neonode, the Japanese government provides full insurance coverage. 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 Credit Losses | Accounts Receivable and Credit Losses Accounts receivable is stated at net realizable value. We estimate and record a provision for expected credit losses related to our financial instruments, including our trade receivables. We consider historical collection rates, the current financial status of our customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable, we believe that the carrying value, net of expected losses, approximates fair value and therefore, we rely more on historical and current analysis of such financial instruments, including our trade receivables. Further, we consider macroeconomic factors and the status of the technology industry to estimate if there are current expected credit losses within our trade receivables based on the trends and our expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default. The accounts receivable balance on our consolidated balance sheet as of December 31, 2023 was $0.9 million, net of approximately $30,000 of allowances. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected at December 31, 2023: Balance at January 1, 2023 $ 30,000 Change in expected credit losses - Write-offs, net of recoveries - Balance at December 31, 2023 $ 30,000 |
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. With the new, sharpened strategy, announced in December 2023, the Company focuses solely on the licensing business. Consequently, we will phase out the TSM product business through licensing of the TSM technology to strategic partners or outsourcing. Management has decided to impair TSM related inventories which are expected to remain after production ends in 2024. The TSM inventory impairment charge was $3.6 million for the year ended December 31, 2023 and has been included as a component of cost of revenues for products. 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 as of December 31, 2022. In 2023, management decided to scrap the fully reserved AirBar inventory. Raw materials, work-in-process, and finished goods are as follows (in thousands): December 31, December 31, 2023 2022 Raw materials $ 319 $ 3,177 Work-in-process 192 414 Finished goods 99 236 Ending inventory $ 610 $ 3,827 |
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 Depreciation of 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 condensed 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 flows 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, 2023, 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 and 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). Foreign currency translation gains (losses) were $(56,000) and $68,000 during the years ended December 31, 2023 and 2022, respectively. Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $(5,000) and $35,000 during the years ended December 31, 2023 and 2022, respectively. |
Concentration of Credit and Business Risks | Concentration of Credit and Business Risks Our customers are located in the United States, Europe, Oceania and Asia. As of December 31, 2023, four of our customers represented approximately 76.4% of our consolidated accounts receivable and unbilled revenues. As of December 31, 2022, five of our customers represented approximately 82.5% of our consolidated accounts receivable and unbilled revenues. Customers who accounted for 10% or more of our revenues during the year ended December 31, 2023 are as follows. ● Hewlett-Packard Company – 22.1% ● Seiko Epson – 17.7% ● Alpine Electronics – 16.6% Customers who accounted for 10% or more of our revenues during the year ended December 31, 2022 are as follows. ● Hewlett-Packard Company – 27.1% ● Seiko Epson – 19.4% ● LG – 12.2% ● Alpine Electronics – 10.0% The Company conducts business in the United States, Europe, Oceania and Asia. As of December 31, 2023, the Company maintained approximately $16,030,000, $1,100,000, and $33,000 of its net assets in the United States, Europe, and Asia, respectively. 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. |
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 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, 2023. 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. Because we generally use distributors to provide 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 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 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 $8,000 and $9,000 as of December 31, 2023 and 2022, respectively. The warranty reserve is recorded as an accrued expense and cost of sales and was $30,000 and $49,000 as of December 31, 2023 and 2022, 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, 2023 and 2022, we recorded no losses. The following tables present the net revenues distribution by geographical area and market for the years ended December 31, 2023 and 2022 (dollars in thousands): 2023 2022 Amount Percentage Amount Percentage North America Net revenues from consumer electronics $ 1,455 90.9 % $ 1,812 98.5 % Net revenues from distributors and other 145 9.1 % 27 1.5 % $ 1,600 100.0 % $ 1,839 100.0 % Asia Pacific Net revenues from automotive $ 1,199 57.1 % $ 1,295 46.9 % Net revenues from consumer electronics 796 37.9 % 1,127 40.8 % Net revenues from distributors and other 105 5.0 % 341 12.3 % $ 2,100 100.0 % $ 2,763 100.0 % Europe, Middle East and Africa Net revenues from automotive $ 379 50.6 % $ 493 46.1 % Net revenues from medical 221 29.5 % 398 37.3 % Net revenues from distributors and other 149 19.9 % 177 16.6 % $ 749 100.0 % $ 1,068 100.0 % |
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 our accounts receivable and unbilled revenues, and deferred revenues as of December 31, 2023 and 2022 (in thousands): December 31, December 31, Accounts receivable and unbilled revenues $ 917 $ 1,448 Contract liabilities (deferred revenues) $ 10 $ 36 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 credit losses 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 $ 49 $ 36 Provisions for (adjustments to) warranty issued (19 ) 13 Balance at end of period $ 30 $ 49 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 2023 2022 Deferred revenues license fees $ 2 $ 20 Deferred revenues products 8 9 Deferred revenues non-recurring engineering - 7 $ 10 $ 36 Deferred revenue not yet recognized was $10,000 as of December 31, 2023. We expect to recognize 100% of that revenue over the next twelve months. The Company recognized revenues of approximately $26,000 and $24,000, for 2023 and 2022, 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 $217,000 and $158,000 for the years ended December 31, 2023 and 2022, 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 Company, 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, 2023 and 2022. 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, 2023 and 2022, 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, 2023 and 2022. 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, 2023 and 2022 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 as accumulated other comprehensive income (loss) in the accompanying 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 rates for the consolidated statements of operations were as follows: Years ended 2023 2022 Swedish Krona 10.61 10.12 Japanese Yen 140.51 131.72 South Korean Won 1,306.69 1,292.25 Taiwan Dollar 31.16 29.81 Exchange rates for the consolidated balance sheets were as follows: As of 2023 2022 Swedish Krona 10.07 10.43 Japanese Yen 141.03 131.12 South Korean Won 1,294.53 1,261.91 Taiwan Dollar 30.68 30.66 |
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 and cash equivalents, accounts receivable, accounts payable and accrued expenses, are deemed to approximate fair value due to their short maturities. |
Recent Accounting Pronouncements | Recent 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 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Accounts Receivable | The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected at December 31, 2023: Balance at January 1, 2023 $ 30,000 Change in expected credit losses - Write-offs, net of recoveries - Balance at December 31, 2023 $ 30,000 |
Schedule of Inventory | Raw materials, work-in-process, and finished goods are as follows (in thousands): December 31, December 31, 2023 2022 Raw materials $ 319 $ 3,177 Work-in-process 192 414 Finished goods 99 236 Ending inventory $ 610 $ 3,827 |
Schedule of Straight-Line Method Based Upon Estimated Useful Lives | 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 |
Schedule of Net Revenues Distribution | The following tables present the net revenues distribution by geographical area and market for the years ended December 31, 2023 and 2022 (dollars in thousands): 2023 2022 Amount Percentage Amount Percentage North America Net revenues from consumer electronics $ 1,455 90.9 % $ 1,812 98.5 % Net revenues from distributors and other 145 9.1 % 27 1.5 % $ 1,600 100.0 % $ 1,839 100.0 % Asia Pacific Net revenues from automotive $ 1,199 57.1 % $ 1,295 46.9 % Net revenues from consumer electronics 796 37.9 % 1,127 40.8 % Net revenues from distributors and other 105 5.0 % 341 12.3 % $ 2,100 100.0 % $ 2,763 100.0 % Europe, Middle East and Africa Net revenues from automotive $ 379 50.6 % $ 493 46.1 % Net revenues from medical 221 29.5 % 398 37.3 % Net revenues from distributors and other 149 19.9 % 177 16.6 % $ 749 100.0 % $ 1,068 100.0 % |
Schedule of Accounts Receivable and Deferred Revenues | The following table presents our accounts receivable and unbilled revenues, and deferred revenues as of December 31, 2023 and 2022 (in thousands): December 31, December 31, Accounts receivable and unbilled revenues $ 917 $ 1,448 Contract liabilities (deferred revenues) $ 10 $ 36 |
Schedule of Activity Related to the Product Warranty Liability | 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 $ 49 $ 36 Provisions for (adjustments to) warranty issued (19 ) 13 Balance at end of period $ 30 $ 49 |
Schedule of Deferred Revenues | The following table presents our deferred revenues by source (in thousands): As of 2023 2022 Deferred revenues license fees $ 2 $ 20 Deferred revenues products 8 9 Deferred revenues non-recurring engineering - 7 $ 10 $ 36 |
Schedule of Weighted-Average Exchange Rates for the Consolidated Statements of Operations | The weighted-average exchange rates for the consolidated statements of operations were as follows: Years ended 2023 2022 Swedish Krona 10.61 10.12 Japanese Yen 140.51 131.72 South Korean Won 1,306.69 1,292.25 Taiwan Dollar 31.16 29.81 |
Schedule of Exchange Rates for the Consolidated Balance Sheets | Exchange rates for the consolidated balance sheets were as follows: As of 2023 2022 Swedish Krona 10.07 10.43 Japanese Yen 141.03 131.12 South Korean Won 1,294.53 1,261.91 Taiwan Dollar 30.68 30.66 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): As of 2023 2022 Prepaid insurance $ 114 $ 140 Prepaid rent 108 91 VAT receivable 410 297 Other 306 179 Total prepaid expenses and other current assets $ 938 $ 707 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consist of the following (in thousands): As of 2023 2022 Computers, software, furniture and fixtures $ 1,513 $ 1,336 Equipment 2,732 2,639 Less accumulated depreciation and amortization (3,905 ) (3,693 ) Property and equipment, net $ 340 $ 282 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): As of 2023 2022 Accrued returns and warranty $ 30 $ 49 Accrued consulting fees and other 324 151 Total accrued expenses $ 354 $ 200 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock Option Plans | 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, 2022 9,500 $ 26.19 0.54 $ - Options granted - - - Options exercised - - - Options cancelled or expired (7,000 ) 30.40 - Options outstanding – December 31, 2022 2,500 $ 14.40 0.59 - Options granted - - - Options exercised - - - Options cancelled or expired (2,500 ) 14.40 - Options outstanding and vested – December 31, 2023 - $ - - $ - |
Schedule of Stock-Based Compensation Expense | The stock-based compensation expense for the years ended December 31, 2023 and 2022 reflects the estimated fair value of the vested portion of common stock granted to directors and employees (in thousands): Years ended 2023 2022 Sales and marketing $ 8 $ 8 General and administrative 50 114 Stock-based compensation expense $ 58 $ 122 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Components of Lease Expense [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows (in thousands): Years ended 2023 2022 Operating lease cost (1) $ 528 $ 596 Finance lease cost: Amortization of leased assets $ 39 $ 66 Interest on lease liabilities 7 8 Total finance lease cost $ 46 $ 74 (1) Includes short term lease costs of $458,000 and $180,000 for the years ended December 31, 2023 and 2022, respectively. |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Years ended 2023 2022 Cash paid for amounts included in leases: Operating cash flows from operating leases $ (65 ) $ (399 ) Operating cash flows from finance leases (7 ) (8 ) Financing cash flows from finance leases (89 ) (165 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases - - Finance leases - 24 |
Schedule of Supplemental Balance Sheet Information | Supplemental consolidated balance sheet information related to leases was as follows (in thousands): As of 2023 2022 Operating leases Operating lease right-of-use assets, net $ 54 $ 118 Current portion of operating lease obligations $ 54 $ 83 Operating lease liabilities, net of current portion - 35 Total operating lease liabilities $ 54 $ 118 Finance leases Property and equipment, at cost $ 2,714 $ 2,622 Accumulated depreciation (2,523 ) (2,418 ) Property and equipment, net $ 191 $ 204 Current portion of finance lease obligations $ 33 $ 95 Finance lease liabilities, net of current portion 19 46 Total finance lease liabilities $ 52 $ 141 Years ended 2023 2022 Weighted-Average Remaining Lease Term Operating leases 0.8 years 1.8 years Finance leases 1.3 years 1.5 years Weighted-Average Discount Rate Operating leases (2) 5.0 % 5.0 % Finance leases 2.6 % 2.5 % (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 | A summary of future minimum payments under non-cancellable operating lease commitments as of December 31, 2023 is as follows (in thousands): Years ending December 31, Total 2024 $ 55 Total minimum payments required: 55 Less imputed interest (1 ) Total lease liabilities 54 Less current portion (54 ) $ - |
Schedule of Minimum Future Rentals on the Non-Cancellable Finance Leases | The following is a schedule of minimum future rentals on the non-cancelable finance leases as of December 31, 2023 (in thousands): Year ending December 31, Total 2024 $ 34 2025 20 Total minimum payments required: 54 Less amount representing interest: (2 ) Present value of net minimum lease payments: 52 Less current portion (33 ) $ 19 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Schedule of Net Revenues by Geographic Area | The following table presents net revenues by geographic area for the years ended December 31, 2023 and 2022 (dollars in thousands): 2023 2022 Amount Percentage Amount Percentage United States $ 1,599 35.8 % $ 1,839 32.5 % Japan 1,489 33.5 % 1,742 30.7 % South Korea 501 11.3 % 861 15.2 % Germany 401 9.0 % 298 5.3 % Switzerland 221 5.0 % 398 7.0 % China 79 1.8 % 130 2.3 % France 68 1.5 % 193 3.4 % Sweden 52 1.2 % 155 2.7 % Other 39 0.9 % 54 0.9 % Total $ 4,449 100.0 % $ 5,670 100.0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Loss Before Income Taxes by Geographically | Loss before provision for income taxes was distributed geographically for the years ended December 31, 2023 and 2022 as follows (in thousands): 2023 2022 Domestic $ (5,221 ) $ (4,453 ) Foreign (4,787 ) (712 ) Total $ (10,008 ) $ (5,165 ) |
Schedule of Provision for Income Taxes | The provision (benefit) for income taxes is as follows for the years ended December 31, 2023 and 2022 (in thousands): 2023 2022 Current Federal $ - $ - State - - Foreign 115 118 Total current expense 115 118 Deferred Federal (1,054 ) (186 ) State - (3 ) Foreign (2,094 ) (3,517 ) Change in valuation allowance 3,148 3,706 Total deferred expense - - Total provision for income taxes $ 115 $ 118 |
Schedule of Effective Income Tax Rate | The differences between our effective income tax rate and the U.S. federal statutory federal income tax rate for the years ended December 31, 2023 and 2022, are as follows: 2023 2022 Amounts at statutory tax rates 21 % 21 % Foreign losses taxed at different rates (10 )% (1 )% Stock-based compensation - % (1 )% GILTI inclusion - % (16 )% Other (2 )% (2 )% Total 9 % 1 % Valuation allowance (10 )% (3 )% Effective tax rate (1 )% (2 )% |
Schedule of Deferred Tax Asset Balances | Significant components of the deferred tax asset balances at December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Deferred tax assets: Accruals $ 3 $ (13 ) Stock compensation - 4 Net operating losses 28,744 25,608 Total deferred tax assets 28,747 25,599 Valuation allowance (28,747 ) (25,599 ) Total net deferred tax assets $ - $ - |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net Loss Per Share [Abstract] | |
Schedule of No Potential Common Stock Equivalents | The Company had no potential common stock equivalents as of December 31, 2023 or 2022. Years ended (In thousands, except per share amounts) 2023 2022 BASIC AND DILUTED Weighted average number of common shares outstanding 15,322 13,632 Net loss attributable to Neonode Inc. $ (10,123 ) $ (4,883 ) Net loss per share - basic and diluted $ (0.66 ) $ (0.36 ) |
Nature of the Business and Op_2
Nature of the Business and Operations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | May 10, 2021 | |
Nature of the Business and Operations [Line Items] | |||
Net losses | $ (10,123,000) | $ (4,883,000) | |
Accumulated deficit | (217,614,000) | (207,491,000) | |
Cash used in operating activities | (6,308,000) | (6,808,000) | |
Common stock value | $ 15,000 | 14,000 | $ 25,000,000 |
Commission of gross sales price percentage | 3% | ||
Aggregate net proceeds | $ 7,866,000 | $ 4,686,000 | |
ATM Facility [Member] | |||
Nature of the Business and Operations [Line Items] | |||
Aggregate shares of common stock (in Shares) | 903,716 | 886,065 | |
Aggregate net proceeds | $ 7,866,000 | $ 4,686,000 | |
Other expenses | $ 244,000 | $ 167,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 SEK (kr) | Dec. 31, 2023 TWD ($) | Sep. 30, 2023 | Oct. 01, 2022 | |
Summary of Significant Accounting Policies [Line items] | ||||||
Voting rights percentage | 50% | |||||
Insurance coverage | $ 250,000 | |||||
Inventory reserve amount | 3,600,000 | |||||
Foreign currency translation gains (losses) | (56,000) | $ 68,000 | ||||
General and administrative expenses | 50,000 | 114,000 | ||||
Reduction of our accounts receivable and revenue | 8,000 | 9,000 | ||||
Warranty reserve as accrued expense and cost of sales | 30,000 | 49,000 | ||||
Deferred revenue | $ 10,000 | |||||
Percentage of revenue recognized | 100% | |||||
Revenue related to contract liabilities | $ 26,000 | 24,000 | ||||
Advertising costs | $ 217,000 | 158,000 | ||||
Outstanding voting shares percentage | 50% | |||||
Neonode Technologies AB [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Majority owned subsidiary | 51% | 49% | ||||
Revenue Benchmark [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Accounts receivable balance on our consolidated balance sheet | $ 900,000 | |||||
Accounts receivable balance on our consolidated balance sheet | 30,000 | |||||
Krona [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Insurance coverage | kr | kr 1,050,000 | |||||
Taiwan [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Insurance coverage | $ 3,000,000 | |||||
US [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Net assets | 16,030,000 | 15,535,000 | ||||
Europe [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Net assets | 1,100,000 | 3,857,000 | ||||
Asia [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Net assets | $ 33,000 | 26,000 | ||||
AirBar Sales [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Inventory reserve amount | $ 300,000 | |||||
Customers [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Concentration of credit and business risks percentage | 76.40% | 82.50% | ||||
Customers [Member] | Hewlett Packard Company [Member] | Credit Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Concentration of credit and business risks percentage | 22.10% | 27.10% | ||||
Customers [Member] | Seiko Epson [Member] | Credit Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Concentration of credit and business risks percentage | 17.70% | 19.40% | ||||
Customers [Member] | Alpine Electronics, Inc [Member] | Credit Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Concentration of credit and business risks percentage | 16.60% | 10% | ||||
Customers [Member] | LG [Member] | Credit Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
Concentration of credit and business risks percentage | 12.20% | |||||
Foreign Currency Gain (Loss) [Member] | ||||||
Summary of Significant Accounting Policies [Line items] | ||||||
General and administrative expenses | $ 5,000 | $ 35,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Schedule of accounts receivable [Abstract] | |
Balance beginning | $ 30,000 |
Change in expected credit losses | |
Write-offs, net of recoveries | |
Balance ending | $ 30,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Inventory - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of inventory [Abstract] | ||
Raw materials | $ 319 | $ 3,177 |
Work-in-process | 192 | 414 |
Finished goods | 99 | 236 |
Ending inventory | $ 610 | $ 3,827 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Straight-Line Method Based Upon Estimated Useful Lives | Dec. 31, 2023 |
Computer equipment [Member] | |
Schedule of Straight-Line Method Based Upon Estimated Useful Lives [Line Items] | |
Estimated useful lives | 3 years |
Furniture and fixtures [Member] | |
Schedule of Straight-Line Method Based Upon Estimated Useful Lives [Line Items] | |
Estimated useful lives | 5 years |
Equipment [Member] | |
Schedule of Straight-Line Method Based Upon Estimated Useful Lives [Line Items] | |
Estimated useful lives | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Net Revenues Distribution - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
North America [Member] | ||
North America | ||
Net revenues | $ 1,600 | $ 1,839 |
Percentage of net revenues | 100% | 100% |
Asia Pacific [Member] | ||
North America | ||
Net revenues | $ 2,100 | $ 2,763 |
Percentage of net revenues | 100% | 100% |
Europe, Middle East and Africa [Member] | ||
North America | ||
Net revenues | $ 749 | $ 1,068 |
Percentage of net revenues | 100% | 100% |
Net revenues from consumer electronics [Member] | North America [Member] | ||
North America | ||
Net revenues | $ 1,455 | $ 1,812 |
Percentage of net revenues | 90.90% | 98.50% |
Net revenues from consumer electronics [Member] | Asia Pacific [Member] | ||
North America | ||
Net revenues | $ 796 | $ 1,127 |
Percentage of net revenues | 37.90% | 40.80% |
Net revenues from distributors and other [Member] | North America [Member] | ||
North America | ||
Net revenues | $ 145 | $ 27 |
Percentage of net revenues | 9.10% | 1.50% |
Net revenues from distributors and other [Member] | Asia Pacific [Member] | ||
North America | ||
Net revenues | $ 105 | $ 341 |
Percentage of net revenues | 5% | 12.30% |
Net revenues from distributors and other [Member] | Europe, Middle East and Africa [Member] | ||
North America | ||
Net revenues | $ 149 | $ 177 |
Percentage of net revenues | 19.90% | 16.60% |
Net revenues from automotive [Member] | Asia Pacific [Member] | ||
North America | ||
Net revenues | $ 1,199 | $ 1,295 |
Percentage of net revenues | 57.10% | 46.90% |
Net revenues from automotive [Member] | Europe, Middle East and Africa [Member] | ||
North America | ||
Net revenues | $ 379 | $ 493 |
Percentage of net revenues | 50.60% | 46.10% |
Net revenues from medical [Medical] | Europe, Middle East and Africa [Member] | ||
North America | ||
Net revenues | $ 221 | $ 398 |
Percentage of net revenues | 29.50% | 37.30% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of Accounts Receivable and Deferred Revenues - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accounts Receivable And Deferred Revenues [Abstract] | ||
Accounts receivable and unbilled revenues | $ 917 | $ 1,448 |
Contract liabilities (deferred revenues) | $ 10 | $ 36 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of Activity Related to the Product Warranty Liability - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of activity related to the product warranty liability [Abstract] | ||
Balance at beginning of period | $ 49 | $ 36 |
Provisions for (adjustments to) warranty issued | (19) | 13 |
Balance at end of period | $ 30 | $ 49 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details) - Schedule of Deferred Revenues - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of deferred revenues [Line Items] | ||
Deferred revenues | $ 10 | $ 36 |
Deferred revenues license fees [Member] | ||
Schedule of deferred revenues [Line Items] | ||
Deferred revenues | 2 | 20 |
Deferred revenues products [Member] | ||
Schedule of deferred revenues [Line Items] | ||
Deferred revenues | 8 | 9 |
Deferred revenues non-recurring engineering [Member] | ||
Schedule of deferred revenues [Line Items] | ||
Deferred revenues | $ 7 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Details) - Schedule of Weighted-Average Exchange Rates for the Consolidated Statements of Operations | Dec. 31, 2023 | Dec. 31, 2022 |
Swedish Krona [Member] | ||
Schedule of Weighted-Average Exchange Rates for the Consolidated Statements of Operations [Line Items] | ||
Weighted-average exchange rate for statements of operations | 10.61 | 10.12 |
Japanese Yen [Member] | ||
Schedule of Weighted-Average Exchange Rates for the Consolidated Statements of Operations [Line Items] | ||
Weighted-average exchange rate for statements of operations | 140.51 | 131.72 |
South Korean Won [Member] | ||
Schedule of Weighted-Average Exchange Rates for the Consolidated Statements of Operations [Line Items] | ||
Weighted-average exchange rate for statements of operations | 1,306.69 | 1,292.25 |
Taiwan Dollar [Member] | ||
Schedule of Weighted-Average Exchange Rates for the Consolidated Statements of Operations [Line Items] | ||
Weighted-average exchange rate for statements of operations | 31.16 | 29.81 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Details) - Schedule of Exchange Rates for the Consolidated Balance Sheets - Foreign Currency Exchange Rates Member] | Dec. 31, 2023 | Dec. 31, 2022 |
Swedish Krona [Member] | ||
Schedule of Exchange Rates for the Consolidated Balance Sheets [Line Items] | ||
Exchange rate | 10.07 | 10.43 |
Japanese Yen [Member] | ||
Schedule of Exchange Rates for the Consolidated Balance Sheets [Line Items] | ||
Exchange rate | 141.03 | 131.12 |
South Korean Won [Member] | ||
Schedule of Exchange Rates for the Consolidated Balance Sheets [Line Items] | ||
Exchange rate | 1,294.53 | 1,261.91 |
Taiwan Dollar [Member] | ||
Schedule of Exchange Rates for the Consolidated Balance Sheets [Line Items] | ||
Exchange rate | 30.68 | 30.66 |
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, 2023 | Dec. 31, 2022 |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Prepaid insurance | $ 114 | $ 140 |
Prepaid rent | 108 | 91 |
VAT receivable | 410 | 297 |
Other | 306 | 179 |
Total prepaid expenses and other current assets | $ 938 | $ 707 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 0.1 | $ 0.1 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (3,905) | $ (3,693) |
Property and equipment, net | 340 | 282 |
Computers, software, furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,513 | 1,336 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,732 | $ 2,639 |
Accrued Expenses (Details) - Sc
Accrued Expenses (Details) - Schedule of Accrued Expenses - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accrued Expenses [Abstract] | ||
Accrued returns and warranty | $ 30 | $ 49 |
Accrued consulting fees and other | 324 | 151 |
Total accrued expenses | $ 354 | $ 200 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 15, 2022 | May 20, 2022 | |
Stockholders Equity [Line Items] | |||||
Common stock authorized | 25,000,000 | 25,000,000 | 25,000,000 | ||
Common stock, par value per share (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Shares issued | 4,000 | ||||
Aggregate net proceeds (in Dollars) | $ 7,866,000 | $ 4,686,000 | |||
Preferred stock shares authorized | 1,000,000 | 1,000,000 | |||
Preferred stock, par value per share (in Dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock value (in Dollars) | |||||
Preferred stock issued | |||||
Preferred stock outstanding | |||||
Warrants expire shares | 431,368 | ||||
ATM Facility [Member] | |||||
Stockholders Equity [Line Items] | |||||
Aggregate shares | 903,716 | 886,065 | |||
Aggregate net proceeds (in Dollars) | $ 7,866,000 | $ 4,686,000 | |||
Other expenses (in Dollars) | $ 244,000 | $ 167,000 | |||
2020 LTIP [Member] | |||||
Stockholders Equity [Line Items] | |||||
Employee resigned shares (in Dollars) | $ 12,000 | ||||
Two Year Lock Up Period [Member] | |||||
Stockholders Equity [Line Items] | |||||
Repurchased shares | 10,252 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | ||||||||
Sep. 15, 2022 | May 20, 2022 | Dec. 29, 2021 | Aug. 12, 2021 | Dec. 29, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation (Details) [Line Items] | |||||||||
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 | ||||||
Stock-based compensation amortization | $ 58,000 | $ 122,000 | |||||||
Term of stock options, description | Stock options granted under the 2006, 2015 and 2020 Plans are exercisable over a maximum term of 10 years from the date of grant, vest in various installments over a one to four-year period and have exercise prices reflecting the market value of the shares of common stock on the date of grant. | ||||||||
Unrecognized compensation expense | $ 2,000 | ||||||||
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 Year Lock Up Period [Member] | |||||||||
Stock-Based Compensation (Details) [Line Items] | |||||||||
Market value, percentage | 30% | 30% | 30% | 30% | |||||
Shares repurchased (in Shares) | 10,252 | ||||||||
Two Thousand Twenty Plan [Member] | |||||||||
Stock-Based Compensation (Details) [Line Items] | |||||||||
Common stock shares issued (in Shares) | 4,000 | 750,000 | |||||||
Two Thousand Twenty Long-Term Incentive Program [Member] | |||||||||
Stock-Based Compensation (Details) [Line Items] | |||||||||
Common stock shares issued (in Shares) | 14,735 | 12,830 | 37,288 | ||||||
Stock Repurchased | $ 12,000 | ||||||||
Two Thousand Twenty Long-Term Incentive Program [Member] | Minimum [Member] | |||||||||
Stock-Based Compensation (Details) [Line Items] | |||||||||
Future unearned bonus, percentage | 50% | ||||||||
Two Thousand Twenty Long-Term Incentive Program [Member] | Maximum [Member] | |||||||||
Stock-Based Compensation (Details) [Line Items] | |||||||||
Future unearned bonus, percentage | 67% |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of Stock Option Plans - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule Of Stock Option Plans [Abstract] | |||
Number of Shares, Options outstanding, Ending Balance | 9,500 | 2,500 | |
Weighted-Average Exercise Price, Options outstanding, Ending Balance | $ 26.19 | $ 14.4 | |
Weighted-Average Remaining Contractual Life (in years), Options outstanding, Ending Balance | 6 months 14 days | 7 months 2 days | |
Aggregate Intrinsic Value, Options outstanding, Ending 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 exercisd | |||
Aggregate Intrinsic Value, Options exercised | |||
Number of Shares, Options cancelled or expired | (2,500) | (7,000) | |
Weighted-Average Exercise Price, Options cancelled or expired | $ 14.4 | $ 30.4 | |
Aggregate Intrinsic Value, Options cancelled or expired |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details) - Schedule of Stock-Based Compensation Expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Stock-Based Compensation Expense [Abstract] | ||
Sales and marketing | $ 8 | $ 8 |
General and administrative | 50 | 114 |
Stock-based compensation expense | $ 58 | $ 122 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Apr. 25, 2013 USD ($) $ / shares shares |
Commitments and Contingencies [Line Items] | |
Agreed to pay TI | $ | $ 500,000 |
Non-recurring engineering costs | $ / shares | $ 0.25 |
Non-recurring engineering sold | shares | 2,000,000 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Lease cost increase percentage | 2% | |
Short term lease costs | $ 458,000 | $ 180,000 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Components of Lease Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Schedule of Components of Lease Expense [Abstract] | |||
Operating lease cost | [1] | $ 528 | $ 596 |
Finance lease cost: | |||
Amortization of leased assets | 39 | 66 | |
Interest on lease liabilities | 7 | 8 | |
Total finance lease cost | $ 46 | $ 74 | |
[1] Includes short term lease costs of $458,000 and $180,000 for the years ended December 31, 2023 and 2022, respectively. |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Supplemental Cash Flow Information Related to Leases - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in leases: | ||
Operating cash flows from operating leases | $ (65) | $ (399) |
Operating cash flows from finance leases | (7) | (8) |
Financing cash flows from finance leases | (89) | (165) |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | ||
Finance leases | $ 24 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Supplemental Balance Sheet Information - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Operating leases | |||
Operating lease right-of-use assets, net | $ 54 | $ 118 | |
Current portion of operating lease obligations | 54 | 83 | |
Operating lease liabilities, net of current portion | 35 | ||
Total operating lease liabilities | 54 | 118 | |
Finance leases | |||
Property and equipment, at cost | 2,714 | 2,622 | |
Accumulated depreciation | (2,523) | (2,418) | |
Property and equipment, net | 191 | 204 | |
Current portion of finance lease obligations | 33 | 95 | |
Finance lease liabilities, net of current portion | 19 | 46 | |
Total finance lease liabilities | $ 52 | $ 141 | |
Weighted-Average Remaining Lease Term | |||
Operating leases | 9 months 18 days | 1 year 9 months 18 days | |
Finance leases | 1 year 3 months 18 days | 1 year 6 months | |
Weighted-Average Discount Rate | |||
Operating leases | 5% | [1] | 5% |
Finance leases | 2.60% | 2.50% | |
[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 - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Future Minimum Payments Under Non-Cancellable Operating Lease Commitments [Abstract] | ||
2024 | $ 55 | |
Total minimum payments required: | 55 | |
Less imputed interest | (1) | |
Total lease liabilities | 54 | $ 118 |
Less current portion | (54) | (83) |
Total | $ 35 |
Leases (Details) - Schedule o_5
Leases (Details) - Schedule of Minimum Future Rentals on the Non-Cancellable Finance Leases - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Minimum Future Rentals on the Non-Cancellable Finance Leases [Abstract] | ||
2024 | $ 34 | |
2025 | 20 | |
Total minimum payments required: | 54 | |
Less amount representing interest: | (2) | |
Present value of net minimum lease payments: | 52 | $ 141 |
Less current portion | (33) | (95) |
Total | $ 19 | $ 46 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |
Number of reportable segment | 1 |
Segment Information (Details) -
Segment Information (Details) - Schedule of Net Revenues by Geographic Area - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 4,449 | $ 5,670 |
Revenues percentage | 100% | 100% |
United States [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 1,599 | $ 1,839 |
Revenues percentage | 35.80% | 32.50% |
Japan [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 1,489 | $ 1,742 |
Revenues percentage | 33.50% | 30.70% |
South Korea [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 501 | $ 861 |
Revenues percentage | 11.30% | 15.20% |
Germany [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 401 | $ 298 |
Revenues percentage | 9% | 5.30% |
Switzerland [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 221 | $ 398 |
Revenues percentage | 5% | 7% |
China [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 79 | $ 130 |
Revenues percentage | 1.80% | 2.30% |
France [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 68 | $ 193 |
Revenues percentage | 1.50% | 3.40% |
Sweden [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 52 | $ 155 |
Revenues percentage | 1.20% | 2.70% |
Other [Member] | ||
Schedule of Net Revenues by Geographic Area [Abstract] | ||
Total revenues | $ 39 | $ 54 |
Revenues percentage | 0.90% | 0.90% |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Income Taxes [Line Items] | |
Open tax years | The 2008 through 2022 tax years are open and may be subject to potential examination in one or more jurisdictions. |
Federal [Member] | |
Income Taxes [Line Items] | |
Operating loss carryforwards | $ 80.8 |
State [Member] | |
Income Taxes [Line Items] | |
Operating loss carryforwards | 20.1 |
Foreign [Member] | |
Income Taxes [Line Items] | |
Operating loss carryforwards | $ 50 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Loss Before Income Taxes by Geographically - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Loss before Income Taxes by Geographically [Abstract] | ||
Domestic | $ (5,221) | $ (4,453) |
Foreign | (4,787) | (712) |
Total | $ (10,008) | $ (5,165) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Provision for Income Taxes - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current | ||
Federal | ||
State | ||
Foreign | 115 | 118 |
Total current expense | 115 | 118 |
Deferred | ||
Federal | (1,054) | (186) |
State valuation allowance | (3) | |
Foreign | (2,094) | (3,517) |
Change in valuation allowance | 3,148 | 3,706 |
Total provision for income taxes | $ 115 | $ 118 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Effective Income Tax Rate | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Effective Income Tax Rate [Abstract] | ||
Amounts at statutory tax rates | 21% | 21% |
Foreign losses taxed at different rates | (10.00%) | (1.00%) |
Stock-based compensation | (1.00%) | |
GILTI inclusion | (16.00%) | |
Other | (2.00%) | (2.00%) |
Total | 9% | 1% |
Valuation allowance | (10.00%) | (3.00%) |
Effective tax rate | (1.00%) | (2.00%) |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of Deferred Tax Asset Balances - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accruals | $ 3 | $ (13) |
Stock compensation | 4 | |
Net operating losses | 28,744 | 25,608 |
Total deferred tax assets | 28,747 | 25,599 |
Valuation allowance | (28,747) | (25,599) |
Total net deferred tax assets |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Sweden Employees Pension Plans [Member] | ||
Employee Benefit Plans [Line Items] | ||
Employer matching contribution | 4.50% | |
Employer matching contribution, percent of annual salary | 30% | |
Defined benefit plan contribution, amount | $ 510,000 | $ 546,000 |
U.S. Employee 401K Pension Plan [Member] | ||
Employee Benefit Plans [Line Items] | ||
Defined benefit plan contribution, amount | $ 6,000 | 6,000 |
Defined benefit plan contribution, percentage | 6% | |
Taiwan Employees Pension Plans [Member] | ||
Employee Benefit Plans [Line Items] | ||
Defined benefit plan contribution, amount | $ 3,000 | $ 4,000 |
Defined benefit plan contribution, percentage | 6% |
Net Loss Per Share (Details) -
Net Loss Per Share (Details) - Schedule of No Potential Common Stock Equivalents - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
BASIC AND DILUTED | ||
Weighted average number of common shares outstanding, basic | 15,322 | 13,632 |
Net loss attributable to Neonode Inc. | $ (10,123) | $ (4,883) |
Net loss per share - basic | $ (0.66) | $ (0.36) |
Net Loss Per Share (Details) _2
Net Loss Per Share (Details) - Schedule of No Potential Common Stock Equivalents (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Potentially Dilutive Common Stock [Abstract] | ||
Weighted average number of common shares outstanding, diluted | 15,322 | 13,632 |
Net loss per share - diluted | $ (0.66) | $ (0.36) |