Neonode Inc. · NASDAQ:NEON
Neonode — Q2 2020 Earnings Presentation
25 slides from Neonode's earnings presentation, Aug 14, 2020
Slide 1: Neonode Inc. Second Quarter 2020 Presentation
Neonode Inc. Second Quarter 2020 Presentation Ms. Maria Ek, CFO Mr. David Brunton, Investor Relations August 14, 2020 Dr. Urban Forssell, CEO
Slide 2: Disclaimer
2 Disclaimer This presentation contains, and related oral and written statements of Neonode Inc. (“Neonode” or the “Company”) and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . Forward - looking statements include i
Slide 3: Business and Strategy Update
3 Business and Strategy Update
Slide 4: Company history timeline
4 Listed on Neonode Legacy 2001 2004 2010 2012 2014 2015 2016 2 017 2018 2019 2020 The World’s First Gesture Based Mobile Phone Volvo XC90 S hips with Neonode HMI Launch of B2C Touchscreen Sensor AirBar 75 Million Systems Sold First B2B OEM Customer for Technology Licensing, Sony 25 Million Systems
Slide 5: Contactless Touch – The New Normal Post COVID
5 Contactless Touch – The New Normal Post COVID - 19 TRANSITIONING TO NEONODE 3.0
Slide 6: Neonode Today
6 Neonode Today • Proven contactless touch technology deployed in more than 75 million products • Extensive technical expertise and knowhow • Technology protected by more than 120 patents and patents pending worldwide • Scalable product and technology platforms that are easy to integrate and allows
Slide 7: Neonode's Optical zForce Technology
7 Neonode’s Optical zForce ® Technology Neonode’s patented , IR - based zForce ® technology supports: • Contactless Touch Applications • Together with displays • On other surfaces • In air with holographic displays • Gesture Sensing Applications • Gesture control • Proximity detection
Slide 8: Neonode zForce Unique Selling Points
8 Neonode zForce ® Unique Selling Points • Safer – no requirements to physically touch the display or touch surface • Robust operation – ideal for demanding environments and use cases • Flexible – supports a wide range of applications • High performance – low latency and high scanning speed • Optima
Slide 9: Application Examples
9 Application Examples Interaction without physical contact. Add touch functionality to holographic displays. Contactless, In - Air Touch • Allows for advanced multi - finger touch interactions. • Works with gloved hands (independent of thickness). • Support touch interaction with stylus pens and ot
Slide 10: Neonode Business
10 Neonode Business Legacy Neonode Business • Legacy licensing business does $5 - 7 million revenue a year • Applications include printers, eReaders , and vehicle infotainment systems through B2B licensing agreements • Customers include Hewlett Packard, Canon, and Epson among others Neonode Growth a
Slide 11: Pipeline Opportunities – Self Checkout Kiosks
11 Pipeline Opportunities – Self Checkout Kiosks • Potential Customer – Top 5 kiosk manufacturer in the world • Application – Touchless display intended for self - checkout kiosks • Background – Customer reached out post COVID and quickly initiated a 6 - 8 week pilot trial • Current Status – Pilot p
Slide 12: Pipeline Opportunities – Touchless ATMs
12 Pipeline Opportunities – Touchless ATMs Self Checkout Kiosk Success Enables ATM Penetration • Neonode’s self checkout kiosk partner in its pilot program is also a leading ATM manufacturer • A succesfull self checkout kiosk pilot is an entry point into the ATM installed base • Main drivers: • Dema
Slide 13: Pipeline Opportunities – Elevators
13 Pipeline Opportunities – Elevators Elevators – A Huge Opportunity For Neonode’s Technology • Contactless touch in air through Neonode’s parallel plane approach or using holographic displays • Reduces the spread of pathogens due to elevator button contact • Incredibly deep market potential through
Slide 14: Pipeline Opportunities – Airport Kiosks
14 Pipeline Opportunities – Airport Kiosks Asian Airport – A Model For Future Expansion • Passenger safety in a post - COVID world is a top priority for airports and airlines worldwide • Asian Airport, consistently the top ranked airport in the world, chose Neonode contactless touch solutions for th
Slide 15: Pipeline Opportunities – zForce Technology Licensing
15 Pipeline Opportunities – zForce ® Technology Licensing • Typical customers are OEMs developing, producing and selling products featuring touch - enabled displays. Examples include: • Military/Avionics Displays • Industrial Control Systems • Office Equipment and Household Appliances • Have entered
Slide 16: Pipeline Opportunities – MultiSensing Software Licensing
16 Pipeline Opportunities – MultiSensing ® Software Licensing • Neonode’s software platform MultiSensing ® a ddresses the need for robust, cost - effective driver and cabin monitoring systems • Compliant with the new EU general safety regulations (GSR) and meets the Euro NCAP guidelines, applicable
Slide 17: Private Placement Closed August
17 Private Placement Closed August 7 • On August 7, 2020, the company completed a private placement transaction consisting of common and preferred stock receiving cash proceeds totaling $13.1 million, net of offering expenses. • The company also converted $1.0 million short - term working capital lo
Slide 18: Patent Agreement with Aequitas Technologies
18 Patent Agreement with Aequitas Technologies • Neonode has an embedded call option associated with its patent agreement with Aequitas Technologies LLC. • In May 2019, Neonode assigned two patent families related to old smartphone technology to Aequitas in exchange for 50% of the net proceeds if Ae
Slide 19: Financial Update Second Quarter 2020
19 Financial Update Second Quarter 2020
Slide 20: Q2 2020 Summary
20 Q2 2020 Summary • Revenues of $0.7M compared to $1.7M in Q2 2019 • Low estimations of license revenues due to COVID - 19 effects, $0.7 compared to $1.2 previous quarter • Operating expenses of $2.4M compared to $3.0M in Q2 2019 • Subsidized staff taxes and less travelling • Operating loss $1.8M c
Slide 21: Q2 2020 Revenues
21 Q2 2020 Revenues • Estimated license fees in business area HMI Solutions low in Q2 2020 due to COVID - 19 • A rebound is expected but dependent on the development of the pandemic • License customers shipped 0.7 million products during Q2 2020, accumulated >76 million since 2011 • Product sales st
Slide 22: Q2 Operating Expenses and Result
22 Q2 Operating Expenses and Result • Operating expenses decreased by 19% compared to Q2 2019 • New employees to strengthen management • Swedish government support program • Reduced payroll taxes • Subsidized reduced working hours • In total lower staff expenses , professional fees and travelling th
Slide 23: Cash
23 Cash • Completed a $13.1 million, net of selling expenses, private placement • Sufficient cash to execute the business plan • Cash used by operations approximately $1.0 million a quarter -1600 -1400 -1200 -1000 -800 -600 -400 -200 0 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Net
Slide 24: Highlights
24 Highlights • Through the private placement closed on August 7 we have adequate cash resources needed to accelerate growth and capitalize on current and future opportunities • Our zForce ® technology – patent protected – is an enabling technology ideally positioned to solve for a lifestyle shift t
Slide 25: Thank You
Thank You info@neonode.com neonode.com Thank You info@neonode.com neonode.com