Neonode (NEON) is a technology company specializing in optical sensing solutions for touch, gesture control, and driver/occupant monitoring systems, often licensing its core technology to other manufacturers.

• Neonode is like a specialized Mobileye for monitoring drivers and vehicle occupants inside the car.
• Neonode is like ARM Holdings for optical sensing technology, licensing its core intellectual property for touch, gesture, and in-cabin monitoring to device manufacturers and automotive companies.

• zForce Optical Sensing Technology: A proprietary optical sensing technology enabling touch, touchless interaction, gesture control, and object detection on various surfaces.
• Human Machine Interface (HMI) Solutions: Integrated hardware and software solutions providing advanced touch, touchless, and gesture control for displays and surfaces across diverse industries.
• Driver and In-Cabin Monitoring Systems (DMS/IMS): Camera-based solutions utilizing optical sensing to monitor driver attention, fatigue, and occupant presence for enhanced safety and comfort.

Daniel Alexus President and Chief Executive Officer

Prior to joining Neonode in 2025, Mr. Alexus served as Executive, Global Head of Innovation and Founder of Ericsson ONE since 2018, which is an innovation accelerator within Telefonaktiebolaget LM Ericsson (publ) (“Ericsson”). Daniel Alexus also held several other senior roles at Ericsson, where he started in 2010.

Fredrik Nihlén Chief Financial Officer

Mr. Nihlén joined Neonode in August 2021. Before Neonode, he held the position of Finance Director IFS Nordics at IFS Sverige AB since 2019. From 2018 to 2019, Mr. Nihlén was the Group Chief Financial Officer at Cinnober Financial Technology AB. Prior to that, he worked at DIBS Payment Services, serving as Head of Finance from 2016 to 2018 and Business Controller from 2013 to 2016.

Johanna Jansson Vice President Marketing & Sales Automotive

Ms. Jansson joined Neonode in 2022 and has extensive experience in key account management, business development, and strategic sales from various organizations. Before joining Neonode, she served as Key Account Manager at Stoneridge and Business Area Manager at Calix.

Kent Pålsson Vice President Engineering

Mr. Pålsson joined Neonode in 2023 as Engineering Manager for the zForce platform and took responsibility for the entire Engineering team in 2024. He brings over 20 years of experience in the automotive industry, having held numerous senior management positions in engineering, product management, and business development, including most recently as VP OEM products at Stoneridge Electronics.

Johan Swartz Vice President Marketing & Sales IT & Industrial

Mr. Swartz is the Vice President of Marketing & Sales IT & Industrial at Neonode.

The key risks to Neonode's business include financial instability and declining core business revenue, significant reliance on uncertain patent litigation, and high customer concentration coupled with intense competition.

1. Financial Instability and Declining Core Business Revenue: Neonode has a history of operational losses, with its core business revenues declining significantly. For instance, in Q3 2025, revenue from continuing operations decreased by 48.7% compared to the prior year, and total revenue for the nine months ending September 30, 2025, saw a 37.1% decline. The company continues to burn cash from operations, totaling $4.6 million for the nine months ended September 30, 2025. While a one-time patent assignment settlement with Samsung provided a temporary boost to liquidity, it did not resolve the underlying issue of declining sales and an inability to cover fixed costs with current revenue. Management has also noted that revenues from their legacy business are decreasing faster than anticipated.
2. Reliance on Uncertain Patent Litigation: A substantial portion of Neonode's perceived value and potential financial windfalls are linked to the outcomes of its patent infringement lawsuits against major technology companies like Apple and Samsung. Although Neonode has achieved some legal victories and settlements, the outcomes remain uncertain, particularly for ongoing cases such as that against Apple, which has been assessed as a 50/50 chance of success. The company's stock price and future financial standing are heavily influenced by the unpredictable nature of these legal battles and their potential settlement proceeds.
3. Customer Concentration and Intense Competition: Neonode is significantly dependent on a limited number of customers. In 2024, approximately 80.2% of its consolidated net revenues were generated from just four customers. This high customer concentration exposes the company to substantial risk if any key customer reduces or terminates its business with Neonode. Furthermore, the market for touch and gesture control solutions is highly competitive, with various alternative technologies vying for market share, posing a continuous challenge to Neonode's ability to grow and secure new partnerships.

The emergence of highly specialized competitors in the automotive in-cabin sensing market, such as Smart Eye and Cipia, poses a clear threat. These companies are securing significant design wins with major automotive OEMs globally for driver and occupant monitoring systems (DMS/OMS) using AI-based computer vision, directly competing with Neonode's Attention and Identification Technology (AIT) and potentially limiting Neonode's market share in a critical growth sector.

Major semiconductor and platform providers like Qualcomm (Snapdragon Digital Chassis) and NVIDIA (Drive platform) are increasingly offering comprehensive, integrated hardware and software solutions that include in-cabin sensing capabilities. This trend towards consolidated automotive platforms could lead OEMs to prefer single-vendor solutions that incorporate these functionalities, potentially marginalizing specialized component providers like Neonode who offer standalone sensing technologies.

Contactless Touch Solutions

Gesture Control Solutions

In-Cabin Monitoring / Machine Perception

Neonode (NEON) is focusing on a strategic shift to a licensing-only business model, moving away from its legacy Touch Sensor Module (TSM) product business. This transition underpins several expected drivers of future revenue growth over the next 2-3 years.

1. Expansion of MultiSensing AI platform in the automotive sector, particularly Driver Monitoring Systems (DMS) licensing: Neonode is prioritizing the growth of its MultiSensing AI platform within the automotive industry, with a strong emphasis on Driver Monitoring Systems (DMS) software. The company announced an award from a leading commercial vehicle OEM to supply its MultiSensing DMS software, and revenues from related non-recurring engineering (NRE) projects are anticipated to convert into significant licensing revenues once these projects enter full production.
2. Securing new technology licensing agreements across diverse markets: While facing declining revenues in legacy segments like printer and passenger car touch applications, Neonode aims to generate future revenue growth by establishing new licensing opportunities for its innovative optical sensing solutions. The company's technology for contactless touch, gesture control, and in-cabin monitoring is being targeted for new applications in various markets such as amusement machines, elevators, and self-service kiosks.
3. Strategic partnerships with major technology firms: A key driver for future revenue growth is expected to come from strategic partnerships with major technology companies. These collaborations are anticipated to enhance Neonode's revenue streams and contribute to the adoption of its advanced touch technology solutions.

Share Issuance

• In 2023, Neonode issued 903,716 shares of common stock through an At-the-Market (ATM) facility, generating aggregate net proceeds of $7,866,000, after accounting for commissions and expenses.
• In 2024, the company issued an additional 1,423,441 shares of common stock via an ATM facility, resulting in aggregate net proceeds of $5.8 million, after commissions and expenses.
• The total number of shares outstanding increased from 10.12 million at the end of 2020 to 16.783 million by November 2025.

Inbound Investments

• In Q3 2025, Neonode recognized a $19.39 million gain from a patent assignment, with a related broker fee of $3.88 million.
• The net gain from this patent assignment, after the broker fee, amounted to $15.5 million, and this amount was paid in October 2025.

Capital Expenditures

• Neonode reported trailing twelve-month capital expenditures of approximately -$91,000.
• The company's strategic shift to a software and technology licensing business model aims to reduce the high costs associated with hardware manufacturing.