Wed, May 14, 1:22 PM (30 days ago)
**Neonode Inc. (NEON) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $513,000 (down 37.0% YoY) from license fees ($497,000) and non-recurring engineering ($16,000). - **Gross Margin:** 98.2% (up from 97.9% YoY). - **Operating Loss:** $1,965,000 (up 4.2% YoY). - **Net Loss:** $1,733,000 (down 16.8% YoY). - **Cash Flow:** Negative $1,360,000 from operations (improved from -$1,915,000 YoY). **Profit Margins & Earnings:** - **Operating Margin:** -383.0% (down from -231.7% YoY). - **Net Margin:** -337.8% (improved from -256.0% YoY). - **Earnings per Share (EPS):** -$0.10 (improved from -$0.14 YoY). **Trends & Uncertainties:** - **Revenue Decline:** Driven by lower license fees and non-recurring engineering revenues. - **Operating Expenses:** Increased R&D (8.9% YoY) and decreased sales & marketing (21.3% YoY) and G&A (12.3% YoY) expenses. - **Cash Position:** $15,000,000 as of Q1 2025 (down from $16,400,000 in Q4 2024). - **Customer Concentration:** Top four customers represent 94.0% of accounts receivable. - **Geopolitical Risks:** Ongoing wars in Ukraine and Gaza may impact global economy and supply chains. - **Legal Proceedings:** Patent disputes with Apple and Samsung ongoing. **Future Operations Impact:** - **Liquidity:** Management believes current cash position is sufficient for the next year. - **Funding:** May require additional capital if operations do not become cash flow positive. - **Market Risks:** Foreign currency exchange rate fluctuations may impact financial results. **Quarterly Performance Discussion:** - **Revenue Streams:** License fees and non-recurring engineering services are primary revenue sources. - **Operating Expenses:** R&D, sales & marketing, and G&A are main expense categories. - **Cash Flow:** Negative cash flow from operations, with minimal investing and financing activities. **Ticker:** NEON