Neonode Reports Second Quarter Ended June 30, 2020 Financial Results

STOCKHOLM, Aug. 14, 2020 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON), today reported financial results for the three and six months ended June 30, 2020.

FINANCIAL SUMMARY SECOND QUARTER 2020

• Net sales totaled $0.8 million compared to $1.7 million for the same period last year.
• Net loss totaled $1.6 million compared to a net loss of $1.3 million for the same period last year.
• Loss per share totaled $0.18 compared to a loss per share of $0.14 for the same period last year.
• Net cash used in operating activities totaled $1.0 million and $1.0 million for the three months ended June 30, 2020 and 2019, respectively.

BUSINESS HIGHLIGHTS DURING THE QUARTER

• Strengthened commercial leadership through recruitment of Mr. Jonas Waern and Mr. Johan Swartz who joined in April and May, respectively.
• Advanced discussions regarding several new development projects around zForce touch solutions with existing and new customers, for example in the avionics and industrial control systems segments.
• Growing interest in the company's contactless touch solutions and increased sales of touch sensor modules and evaluation kits.
• Expansion of partner network and increased focus on marketing activities to further drive sales of touch sensor modules.
• Continued development and marketing of MultiSensing platform for driver and cabin monitoring in automotive applications. Interest from several OEM and Tier 1 customers; shortlisted for sourcing process for 2024+ platform design win with a premium OEM.

BUSINESS HIGHLIGHTS SINCE THE END OF THE QUARTER

• Continued trend of growing interest in the company's contactless touch solutions and increased sales of touch sensor modules and evaluation kits.

PRIVATE PLACEMENT TRANSACTION AND DEBT CONVERSION COMPLETED

• On August 7, 2020, the company completed a $13.9 million private placement transaction consisting of Common and Convertible Preferred Stock receiving cash proceeds totaling $13.1 million, net of offering expenses. Management and members of the Board participated in the transaction investing a total of $3.1million in cash.
• In addition, as part of the financing transaction, the company converted a $1.0 million short-term working capital loan provided by members of the Board into shares of Convertible Preferred Stock.

THE CEO'S COMMENTS