Neonode Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a slight decline in revenue and continued net losses. For the three months ended September 30, 2024, total revenues were $838,000, a marginal decrease from $840,000 in the same period of 2023. License fees fell to $731,000, down 12.6% from $836,000, while non-recurring engineering revenues surged to $107,000, compared to just $4,000 in the prior year.
For the nine months ended September 30, 2024, total revenues decreased by 21.0% to $2.5 million from $3.1 million in 2023. License fees for this period dropped significantly by 31.2% to $2.1 million, while non-recurring engineering revenues increased to $335,000 from $29,000, marking a substantial rise of 1,055.2%.
Operating expenses for the third quarter were $2.04 million, down from $2.1 million in the same quarter of 2023, resulting in an operating loss of $1.23 million, slightly improved from a loss of $1.26 million in the prior year. The net loss for the third quarter was $1.09 million, compared to $1.27 million in 2023. For the nine-month period, the net loss increased to $4.87 million from $4.20 million in 2023.
As of September 30, 2024, Neonode's cash and cash equivalents rose to $17.6 million from $16.2 million at the end of 2023. The company reported total current assets of $19.6 million, up from $18.6 million, while total assets increased to $19.6 million from $19.0 million. Total stockholders' equity also improved to $18 million from $17.2 million.
Strategically, Neonode has been transitioning away from its product business, with the phase-out of TSM manufacturing completed by September 30, 2024. The company plans to merge Pronode Technologies AB into Neonode Technologies AB, pending regulatory approval. Additionally, during the third quarter, Neonode sold 1,423,441 shares under its At The Market (ATM) Facility, generating net proceeds of $5.8 million.
The company continues to focus on its licensing model, with 37 valid technology license agreements in place. However, management has indicated that additional capital may be necessary in the future to sustain operations and implement its strategy, particularly if cash flows do not turn positive.
About Neonode Inc.
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