Slide 1: Q4 and FY 2022 Earnings Call
Q4 and FY 2022 Earnings Call March 9, 2023 2023 - 03 - 09 1 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON)
Slide 2: Today's Presenters
T od a y ’ s Presenters 2023 - 03 - 09 2 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) • Urban Forssell, CEO • Fredrik Nihlén, CFO
Slide 3: Legal Disclaimer
Legal Disclaimer 2023 - 03 - 09 3 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) This presentation contains, and related oral and written statements of Neonode Inc. (the “Company”) and its management may contain, forward - looking statements within the meaning of the Private Securities Liti
Slide 4: Agenda
Agenda 2023 - 03 - 09 4 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) 1. Brief Strategy and Business Update 2. Q4 and FY 2022 Financial Results 3. Financing 4. Current Status and Plan Going Forward 5. Patent Litigations v. Apple, Samsung 6. Concluding Remarks 7. Q&A Neonode Inc. Q4 and FY
Slide 5: Business Strategy: Technology Licensing and Product Sales
Business Strategy: Technology Licensing and Product Sales INTERACTIVE KIOSKS ELEVATORS PRINTER AUTOMOTIVE TARGET SEGMENTS CUSTOMER OFFERINGS BUSINESS MODELS ZFORCE MULTISENSING TOUCH SENSOR MODULES (ZFORCE) SALES OF NRE SERVICES + TECHNOLOGY LICENSING SALES OF NRE SERVICES + PRODUCT SALES 2023 - 03
Slide 6: Key Application Areas
Key Application Areas In Our Licensing Business: • HUD Obstruction Detection • Interior Controls • (Rugged) Touch • Gesture Sensing • Driver and In - cabin Monitoring In Our Products Business: • Contactless Touch • Touchless Touch on displays, keyboards, keypads, buttons • Holographic Touch • (Rugge
Slide 7: Website Reflecting Strategy
Website Reflecting Strategy www.neonode.com 2023 - 03 - 09 7 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON)
Slide 8: Step Approach for Growth
3 - step Approach for Growth 3 Focused marketing and sales work to establish “beachheads” in key segments and markets POC and demo projects to show value of technology Scale TSM business in key markets Reinvigorate licensing business with additional customer projects Leverage existing customer relat
Slide 9: Events Q4 2022
Events Q4 2022 Tech AD, Detroit November 2022 2023 - 03 - 09 9 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) AutoTech Europe Munich November 2022 Auto HUD Tech Forum Shuzhou/Virtual November 2022 Japan Build Tokyo December 2022
Slide 10: Retail Tech 2023, Japan
Retail Tech 2023, Japan 2023 - 03 - 09 10 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON)
Slide 11: Agenda
Agenda 2023 - 03 - 09 11 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) 1. Brief Strategy and Business Update 2. Q4 and FY 2022 Financial Results 3. Financing 4. Current Status and Plan Going Forward 5. Patent Litigations v. Apple, Samsung 6. Concluding Remarks 7. Q&A Neonode Inc. Q4 and FY
Slide 12: Q4/'22 Financial Results – Revenues
$5.7 million Revenue Total 2022 ź 3% YoY $1.0 million Revenue Products 2022 Ÿ 4% YoY 1,400 1,200 1,000 800 600 400 200 0 - 200 AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APAC EMEA AMER APA
Slide 13: Q4/'22 Financial Results – Gross Profit/Margin
Q4/’22 Financial Results – Gross Profit/Margin 51% Adjusted Gross Margin TSMs* Ÿ 13pp YoY 22% Gross Margin Products 2022 Ÿ 19pp YoY - 250% - 200% - 150% - 100% - 50% 0% 50% 100% - 200 - 100 - 150 200 150 100 50 0 - 50 Q1 - 20 Q2 - 20 Q3 - 20 Q4 - 20 Q1 - 21 Q2 - 21 Q3 - 21 Q4 - 21 Q1 - 22 Q2 - 22 Q3
Slide 14: Q4/'22 Financial Results – Operating Expenses
Q4/’22 Financial Results – Operating Expenses $10.2 million Operating Expenses 2022 ź 15% YoY - 3,000 - 3,500 2023 - 03 - 09 14 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) - 2,500 - 2,000 - 1,500 - 1,000 - 500 0 Q4 - 21 Q1 - 22 Q2 - 22 Q3 - 22 Q4 - 22 Thousands Operating Expenses Q1 - 20
Slide 15: Q4/'22 Financial Results – P&L
Q4/’22 Financial Results – P&L - $4.9 million Net Loss 2022 Ÿ 24% YoY kUSD 2022 2021 2020 Revenues 5 670 5 836 5 984 Cost of revenues 804 955 1 078 Gross margin 4 866 4 881 4 906 Operating expenses 10 152 11 988 11 097 Operating loss - 5 286 - 7 107 - 6 191 Other income (expense) 121 - 15 - 32 Loss
Slide 16: Q4/'22 Financial Results – Cash
Q4/’22 Financial Results – Cash $16.3 million Cash and Accounts Receivables Dec. 31, 2022 ź 2.4 Million Dec. 31,2021 - 3,000 - 3,500 2023 - 03 - 09 16 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) - 2,500 - 2,000 - 1,500 - 1,000 - 500 0 Q1 - 20 Q2 - 20 Thousands Net cash used in operating
Slide 17: Agenda
Agenda 2023 - 03 - 09 17 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) 1. Brief Strategy and Business Update 2. Q4 and FY 2022 Financial Results 3. Financing 4. Current Status and Plan Going Forward 5. Patent Litigations v. Apple, Samsung 6. Concluding Remarks 7. Q&A Neonode Inc. Q4 and FY
Slide 18: At-The-Market Financing
At - The - Market Financing • We used our ATM facility during October 2022 to January 2023 2023 - 03 - 09 18 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) • Net proceeds of $12.6 million • Average price per share was $7.24 • Common stock outstanding as of Mar. 3, 2023 were 15,359,481 • The
Slide 19: Agenda
Agenda 2023 - 03 - 09 19 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) 1. Brief Strategy and Business Update 2. Q4 and FY 2022 Financial Results 3. Financing 4. Current Status and Plan Going Forward 5. Patent Litigations v. Apple, Samsung 6. Concluding Remarks 7. Q&A Neonode Inc. Q4 and FY
Slide 20: Sales Results 2022 & Outlook
Sales Results 2022 & Outlook • Our 2022 sales revenues were on par with our 2021 sales revenues. • We remain optimistic about our ability to significantly grow our business and have several very promising opportunities in our sales funnel. 2023 - 03 - 09 20 © Neonode 2001 - 2023 · www.neonode.com ·
Slide 21: Plan Going Forward
Plan Going Forward • We believe our strategy and strong finances make us well positioned to significantly grow our business this and the coming years. • We are adding resources to our global sales team to support growth in key sectors and markets. • We are also expanding our network of distributors,
Slide 22: Driver and In-cabin Monitoring
Driver and In - cabin Monitoring 2023 - 03 - 09 22 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) Ongoing discussions with OEMs and tier 1 suppliers for mass production of driver and in - cabin monitoring solutions. MultiSensing Licensing Solutions
Slide 23: HUD Obstruction Detection
HUD Obstruction Detection 2023 - 03 - 09 23 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) Ongoing discussions with OEMs and tier 1 suppliers for mass production of obstruction detection solutions. zForce Licensing Solutions
Slide 24: Interior Controls & Driver Monitoring
Interior Controls & Driver Monitoring 2023 - 03 - 09 24 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) Neonode and EPICNPOC sign a Memorandum of Understanding to develop and deliver features for a multimodal HMI development platform for automotive OEMs and tier 1 suppliers. zForce L a i n c
Slide 25: CES 2023, Las Vegas
CES 2023, Las Vegas 2023 - 03 - 09 25 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON)
Slide 26: TSM Applications: Elevator Control Panels
TSM Applications 2023 - 03 - 09 26 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) Elevator Control Panels Contactless touch solutions for elevator control panels, both for new installs and retrofit. Touchless touch and holographic touch solutions. Illustration to the right: Typical touchles
Slide 27: TSM Applications: Interactive Kiosks
Interactive Kiosks 2023 - 03 - 09 27 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) Contactless touch solutions for interactive kiosks, both for new installs and retrofit. Touchless touch and holographic touch solutions. Illustration to the right: Maxell Aqua Park in Tokyo deploys holograph
Slide 28: TSM Applications: Medtech Systems
Medtech Systems 2023 - 03 - 09 28 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) Elix Systems delivers retrofit display frames with Neonode TSMs that realize a robust, high - performance touch feature on displays in ultrasound systems adding a lot of value for the customer and for the end u
Slide 29: Neonode Medical Solutions
Medtech • Contactless touch solutions for medtech equipment and interactive kiosks in hospitals • Robust and accurate touch features, even with surgical gloves or wet hands • Touch on germ - eliminating materials such as silver or copper • Object and proximity detection for interference - free opera
Slide 30: Agenda
Agenda 2023 - 03 - 09 30 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) 1. Brief Strategy and Business Update 2. Q4 and FY 2022 Financial Results 3. Financing 4. Current Status and Plan Going Forward 5. Patent Litigations v. Apple, Samsung 6. Concluding Remarks 7. Q&A Neonode Inc. Q4 and FY
Slide 31: Patent Agreement with Aequitas
Patent Agreement with Aequitias In May 2019, Neonode assigned two patent families related to old smartphone technology to Aequitas Technologies LLC in exchange for 50% of the net proceeds if Aequitas succeeds in monetizing the patents. Net proceeds should here be understood as gross proceeds less ou
Slide 32: Agenda
Agenda 2023 - 03 - 09 32 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) 1. Brief Strategy and Business Update 2. Q4 and FY 2022 Financial Results 3. Financing 4. Current Status and Plan Going Forward 5. Patent Litigations v. Apple, Samsung 6. Concluding Remarks 7. Q&A Neonode Inc. Q4 and FY
Slide 33: Concluding Remarks
Concluding Remarks 2023 - 03 - 09 33 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) • Sales revenues 2022 were $5.7 million (2021 $5.8 million). • Net loss 2022 was $4.9 million (2021 $6.5 million). • Net cash used in operating activities 2022 was $6.8 million (2021 $7.7 million). • We cont
Slide 34: Agenda
Agenda 2023 - 03 - 09 34 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON) 1. Brief Strategy and Business Update 2. Q4 and FY 2022 Financial Results 3. Financing 4. Current Status and Plan Going Forward 5. Patent Litigations v. Apple, Samsung 6. Concluding Remarks 7. Q&A Neonode Inc. Q4 and FY
Slide 35: Thank you
info@neonode.com neonode.com Subscribe to Neonode newsletter Thank you. 2023 - 03 - 09 35 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) 2023 - 03 - 09 35 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON)
Slide 36: Appendix
Appendix 2023 - 03 - 09 36 © Neonode 2001 - 2023 · www.neonode.com · Nasdaq (NEON)
Slide 37: Non-GAAP Financial Measures
Non - GAAP Financial Measures In addition to presenting our financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), we use adjusted gross margin to measure our financial performance. We define adjusted gross margin as gross margin excluding AirBar