10:03 ET Neonode Reports Quarter Ended September 30, 2025 Financial Results

THE CEO'S COMMENTS

"The third quarter of this year continued to reflect a decline in revenues from our legacy business, as demand in the printer and automotive infotainment segments remained subdued. While we anticipate these headwinds will persist until new customers transition from deployment to full production, we are proactively broadening our business opportunities and advancing our product roadmap. These initiatives are designed to support long-term, sustainable growth and we believe they will offset the downward trend in our legacy business," said Daniel Alexus, President & CEO of Neonode.

"For MultiSensing®, we're reinforcing our leadership in fully synthetic, data-driven HMI solutions, where our execution speed continues to differentiate us. We're delivering on existing projects, expanding strategic partnerships in the automotive market, and exploring new verticals where our technology can address narrow-vision challenges and scale quickly."

"In the third quarter, we made the strategic decision to transition the zForce® platform into maintenance mode, focusing on serving existing customers through the remainder of its product lifecycle. This decision was driven by market dynamics that have significantly narrowed the addressable market for the solution. Moving forward, we are aligning the company around future-proofing our MultiSensing AI computer vision platform for expanded deployment in the automotive sector and exploring additional application areas where MultiSensing can deliver meaningful value by solving real-world customer challenges," Mr. Alexus continued.

"In summary, revenues from our legacy business are declining faster than anticipated, and we continue to focus on securing new partnerships in our target market – automotive – to secure future growth and a pathway to long-term profitability," concluded Mr. Alexus.

FINANCIAL OVERVIEW FOR THE QUARTER ENDED SEPTEMBER 30, 2025

Revenues from continuing operations for the three months ended September 30, 2025 were $0.4 million, a decrease of 48.7% compared to the same period in 2024. License revenues were $0.4 million, a decrease of 44.5% compared to the same period in 2024. The decrease was mainly due to lower demand for our legacy customers' products within printer and passenger car touch applications. Revenues from non-recurring engineering for the three months ended September 30, 2025 were $24,000, a decrease of 77.6% compared to the same period in 2024.

Operating expenses from continuing operations for the three months ended September 30, 2025 were $2.1 million, an increase of 4.0% compared to the same period in 2024.

Gain from the patent assignment to Aequitas, including a brokerage fee payable by the Company in connection with the original assignment, were $15.5 million.

Income from continuing operations for the three months ended September 30, 2025 was $13.9 million, or $0.83 per share, compared to a loss from continuing operations of $1.0 million, or $0.07 per share for the same period in 2024.

Cash used by operations was $1.5 million in the third quarter of 2025 compared to $1.3 million for the same period in 2024. The increase was primarily due to a higher net loss, excluding the gain from the patent assignment.

Cash and accounts receivable totaled $12.2 million and working capital for continuing operations was $26.2 million as of September 30, 2025, compared to $17.2 million and $16.1 million as of December 31, 2024, respectively. Our financial position and liquidity provide stability and enable us to execute our strategy to secure more licensing opportunities for our innovative technologies.

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