# EDGAR Filing Document

**Accession Number:** 0000087050
**File Stem:** 0001437749-26-008759
**Filing Date:** 2026-3
**Character Count:** 215220
**Document Hash:** 7888adc0aefc3e44b79327c9626d7b33
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-008759.hdr.sgml**: 20260318

**ACCESSION NUMBER**: 0001437749-26-008759

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 82

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260318

**DATE AS OF CHANGE**: 20260318

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Neonode Inc.
- **CENTRAL INDEX KEY:** 0000087050
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRONIC COMPONENTS, NEC [3679]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 941517641
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35526
- **FILM NUMBER:** 26766128

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** KARLAVAGEN 100, 115 26
- **CITY:** STOCKHOLM
- **PROVINCE COUNTRY:** V7
- **BUSINESS PHONE:** 46 0 8 667 17 17

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** KARLAVAGEN 100, 115 26
- **CITY:** STOCKHOLM
- **PROVINCE COUNTRY:** V7

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Neonode, Inc
- **DATE OF NAME CHANGE:** 20070813

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SBE INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? neon20251231_10k.htm

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2025**

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________ to _________**

Commission File No. 001-35526

![n_01.jpg](n_01.jpg)

**NEONODE INC.**

*(Exact name of Registrant as specified in its charter)*

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| | |
|:---|:---|
| Delaware | 94-1517641 |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. employer<br> identification number) |

---

---

| | |
|:---|:---|
| Karlavägen 100, 115 26 Stockholm, Sweden | N/A |
| (Address of principal executive offices and zip code) | (ZIP code) |

---

+46 (0) 70 29 58 519

(Registrant's Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol**  | **Name of each exchange on which registered** |
| Common Stock, par value $0.001 per share | NEON  | The Nasdaq Stock Market LLC |

---

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act. Yes ☐ No ☒

The aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant, based on the closing price for the registrant's common stock on June 30, 2025 (the last business day of the registrant's most recently completed second fiscal quarter) as reported on the Nasdaq Stock Market, was $334,359,366.

The number of shares of the registrant's common stock outstanding as of March 16, 2026 was 16,782,922.

**DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the registrant's definitive proxy statement for the registrant's 2026 Annual Meeting of Stockholders are incorporated by reference as set forth in Part III of this Annual Report. The registrant intends to file such definitive proxy statement with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2025.

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**NEONODE INC.**

**2025 ANNUAL REPORT ON FORM 10-K**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  | [<u>SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS</u>](#special) | [ii](#special) |
| [**PART I**](#part1) | [**PART I**](#part1) | [**PART I**](#part1) |
| Item 1. | [<u>BUSINESS</u>](#item1) | [1](#item1) |
| Item 1A. | [<u>RISK FACTORS</u>](#item1a) | [6](#item1a) |
| Item 1B. | [<u>UNRESOLVED STAFF COMMENTS</u>](#item1b) | [14](#item1b) |
| Item 1C. | [<u>CYBERSECURITY</u>](#item1c) | [14](#item1c) |
| Item 2. | [<u>PROPERTIES</u>](#item2) | [15](#item2) |
| Item 3. | [<u>LEGAL PROCEEDINGS</u>](#item3) | [15](#item3) |
| Item 4. | [<u>MINE SAFETY DISCLOSURES</u>](#item4) | [15](#item4) |
| [**PART II**](#part2) | [**PART II**](#part2) | [**PART II**](#part2) |
| Item 5. | [<u>MARKET FOR REGISTRANT</u><u>'</u><u>S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES</u>](#item5) | [16](#item5) |
| Item 6. | [<u>\[RESERVED\]</u>](#item6) | [16](#item6) |
| Item 7. | [<u>MANAGEMENT</u><u>'</u><u>S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</u>](#item7) | [16](#item7) |
| Item 7A. | [<u>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</u>](#item7a) | [23](#item7a) |
| Item 8. | [<u>FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</u>](#item8) | [F-1](#item8) |
| Item 9. | [<u>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</u>](#item9) | [24](#item9) |
| Item 9A. | [<u>CONTROLS AND PROCEDURES</u>](#item9a) | [24](#item9a) |
| Item 9B. | [<u>OTHER INFORMATION</u>](#item9b) | [25](#item9b) |
| Item 9C. | [<u>DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS</u>](#item9c) | [25](#item9c) |
| [**PART III**](#part3) | [**PART III**](#part3) | [**PART III**](#part3) |
| Item 10. | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](#item10) | [26](#item10) |
| Item 11. | [<u>EXECUTIVE COMPENSATION</u>](#item11) | [26](#item11) |
| Item 12. | [<u>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</u>](#item12) | [26](#item12) |
| Item 13. | [<u>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE</u>](#item13) | [26](#item13) |
| Item 14. | [<u>PRINCIPAL ACCOUNTANT FEES AND SERVICES</u>](#item14) | [26](#item14) |
| [**PART IV**](#part4) | [**PART IV**](#part4) | [**PART IV**](#part4) |
| Item 15. | [<u>EXHIBITS, FINANCIAL STATEMENT SCHEDULES</u>](#item15) | [27](#item15) |
| Item 16. | [<u>FORM 10-K SUMMARY</u>](#item16) | [27](#item16) |
|  | [<u>SIGNATURES</u>](#sigs) | [28](#sigs) |

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**SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS**

*This Annual Report on Form 10-K (*"*Annual Report*"*) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements that are not purely historical may be forward-looking. For example, statements in this Annual Report regarding our plans, strategy and focus areas are forward-looking statements. You can identify some forward-looking statements by the use of words such as* "*believe,*" "*anticipate,*" "*expect,*" "*intend,*" "*goal,*" "*plan,*" *and similar expressions. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect our future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to our history of losses since inception, our dependence on a limited number of customers, our reliance on our customers*' *ability to design, manufacture and sell products that incorporate our touch technology, the length of a product development and release cycle, our and our customers*' *reliance on component suppliers, the difficulty in verifying royalty amounts owed to us, our ability to remain competitive in response to new technologies, our dependence on key members of our management and development team, the costs to defend, as well as risks of losing, patents and intellectual property rights, our ability to obtain adequate capital to fund future operations, and general economic conditions, including inflation, or other effects related to future pandemics or epidemics, or geopolitical conflicts such as the ongoing war in Ukraine or the Gaza Strip. For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forward-looking statements, please see* "*Item 1A. Risk Factors*" *and elsewhere in this Annual Report, and in our publicly available filings with the Securities and Exchange Commission. Forward-looking statements reflect our analysis only as of the date of this Annual Report. Because actual events or results may differ materially from those discussed in or implied by forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statement. We do not undertake responsibility to update or revise any of these factors or to announce publicly any revision to forward-looking statements, whether as a result of new information, future events or otherwise.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ii

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**PART I**

*Neonode Inc., collectively with its subsidiaries, is referred to in this Annual Report as* "*Neonode*"*,* "*we*"*,* "*us*"*,* "*our*"*,* "*registrant*"*, or* "*Company*"*.*

*We use Neonode, our logo, zForce, MultiSensing and other marks as trademarks. This Annual Report contains references to our trademarks and service marks and to those belonging to other entities. Solely for convenience, trademarks and trade names referred to in this Annual Report, including logos, artwork and other visual displays, may appear without the*® *or*™ *symbols, but such references are not intended to indicate in any way that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensor to these trademarks and trade names.*

**ITEM 1. BUSINESS**

**About Us**

Neonode provides software solutions for machine perception that feature advanced machine learning algorithms to detect and track persons and objects in video streams from cameras and other types of imagers. We base our machine perception solutions on our MultiSensing® technology platform. We market and sell our solutions to customers mainly in the automotive market. However, our solution can also be used in many other markets, and we plan to expand our solutions into new markets in the future.

Neonode also provides advanced optical sensing solutions for touch, contactless touch, and gesture sensing using our zForce® technology platform. In 2010, we began licensing to Original Equipment Manufacturers ("OEMs") and automotive Tier 1 suppliers who embed our technology into products they develop, manufacture, and sell. Since 2010, our licensing customers have sold over 95 million products that feature our technology. In October 2017, we augmented our licensing business and began manufacturing and shipping touch sensor modules ("TSMs") that incorporate our patented technology. On December 12, 2023, we announced a new, sharpened strategy with full focus on the licensing business. Consequently, we phased out the TSM product business during 2024 through licensing of the TSM technology to strategic partners and in parallel we sold parts of the remaining TSMs. The phase out of our TSM product business meets the criteria to be reported as discontinued operations. Refer to Note 2 of Notes to the Consolidated Financial Statements for additional discussion of discontinued operations. All following information presents continuing operations. In September 2025, we made the strategic decision to transition the zForce platform into maintenance mode. We are no longer selling the zForce technology to new customers but will continue supporting existing customers in various markets and segments such as office equipment, automotive, industrial automation, medical, military, and avionics.

***Licensing***

We license our MultiSensing and zForce technology to OEMs and automotive Tier 1 suppliers who embed our technology into products that they develop, manufacture and sell. Since 2010, our licensing customers have sold over 95 million devices that use our patented technology.

As of December 31, 2025, we had 36 valid technology license agreements with global OEMs, Original Design Manufacturers ("ODMs") and automotive Tier 1 suppliers.

Our licensing customer base is primarily in the automotive and printer segments. Nine of our licensing customers are currently shipping products that embed our technology. We anticipate current customers will continue to ship products with our technology in 2026 and in future years. We also expect to expand our customer base with a number of new customers who will be looking to ship new products incorporating our MultiSensing technologies as they complete final product development and release cycles. We typically earn our license fees on a per unit basis when our customers ship products using our technology, but in the future, we may use other business models as well.

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***Non-recurring Engineering Services***

We also offer non-recurring engineering ("NRE") services related to application development linked to our technology platform on a flat rate or hourly rate basis.

Typically, our licensing customers require engineering support during the development and initial manufacturing phase for their products using our technology.

**Strategy and Focus Areas**

Our customers use machine perception technologies to grow their businesses, drive efficiencies, and seek competitive advantages. Our strategy is to deliver value-adding human-machine interaction ("HMI") and machine perception solutions that enable our customers to achieve these targets. We offer specialized NRE services related to the integration of our solutions into customer systems and products to ensure that optimal functionality and performance is achieved.

With the strategic decision in September 2025 to transition the zForce platform into maintenance mode, we are no longer selling the zForce technology to new customers. We instead aim to capture a significant share of the growing automotive driver and in-cabin monitoring market by developing our machine perception business. We are innovators in the HMI and machine perception areas and our goal is to introduce next-generation products in these areas that offer better price, performance, and architectural advantages compared to our current offers and those of our competitors. We intend to execute on this strategy through portfolio transformation, internal innovation, and co-development of products with our customers and the building of strategic partnerships with other technology companies.

**Markets**

***Automotive***

The automotive value chain consists of OEMs (vehicle manufacturers) and tiered suppliers (Tier 1 system suppliers, Tier 2 component suppliers and etc.). In this market, we mainly act as a Tier 2 technology provider to Tier 1 suppliers who license our technology and deliver different types of systems to OEMs (e.g. our driver and in-cabin monitoring solution or our touch technology). In some cases, we are also engaged directly by OEMs, following the trend that OEMs are insourcing more and more of their systems and software development.

During 2025 and 2024, our automotive customers shipped approximately 0.3 million and 0.5 million products with our technology, respectively. Accumulated, since 2014, our automotive customers have shipped approximately 8.8 million products featuring our technology.

***Printers and Office Equipment***

Multi-function printers typically feature touch displays for user interaction with feature-rich menus and settings. We have operational license agreements with three of the leading global printers and office equipment OEMs. During 2025 and 2024, our customers shipped approximately 1.7 million and 2.4 million printers using our touch technology, respectively, and since mid-2014 they have shipped approximately 58.9 million printers using our touch technology.

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***Amusement***

Following the announcement that Nexty Electronics has selected Neonode's TSM technology for sensor development and manufacturing of the next-generation slot machines for a leading manufacturer in Japan's amusement market, we see further potential to deliver our technology to companies in the Japanese amusement market as well as in other markets that desire high quality, cost-effective touch functionality on large displays and surfaces.

***Holographic Interaction***

Using our TSM technology to facilitate interaction with a hologram allows us to create immersive experiences with a "wow factor" in the infotainment sector, e.g. museums, receptions, AI avatars and etc. We also see an increasing potential for surgical planning and education, enabling virtual explorations and interactive learning.

***New Business Development***

Our strategy process ensures continuous evaluation of the market opportunities we are pursuing. During the past year we identified a new potential vertical segment to pursue, which is the automated self-service check-out systems within retail. If we see, after we complete the evaluation of the full potential, evidence of market pull, this segment may become an important new growth bet.

**Customers**

Our customers are primarily located in North America, Europe and Asia.

As of December 31, 2025, four of our customers represented approximately 95.4% of our consolidated accounts receivable and unbilled revenues.

As of December 31, 2024, four of our customers represented approximately 80.9% of our consolidated accounts receivable and unbilled revenues.

Customers who accounted for 10% or more of our revenues during the year ended December 31, 2025 are as follows.

● Seiko Epson – 34.3%

● Alps Alpine – 19.4%

● Hewlett-Packard – 19.0%

● Commercial Vehicle OEM – 14.6%

Customers who accounted for 10% or more of our revenues during the year ended December 31, 2024 are as follows.

● Seiko Epson – 27.3%

● Alps Alpine – 20.7%

● Hewlett-Packard – 20.4%

● Commercial Vehicle OEM – 11.8%

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**Customers by Market**

The following table presents our revenues by market as a percentage of total revenues:

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| | | |
|:---|:---|:---|
|  | Years ended December 31, | Years ended December 31, |
|  | 2025 | 2024 |
| Net license revenues from amusement | 6.7% | 4.8% |
| Net license revenues from automotive | 26.0% | 30.5% |
| Net license revenues from consumer electronics | 55.7% | 51.2% |
| Net non-recurring engineering services revenues | 11.6% | 13.5% |
|  | 100.0% | 100.0% |

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**Geographical Data**

The following table presents our revenues by geographic region as a percentage of total revenues:

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| | | |
|:---|:---|:---|
|  | Years ended December 31, | Years ended December 31, |
|  | 2025 | 2024 |
| Japan | 62.0% | 55.8% |
| Sweden | 14.5% | 11.7% |
| Germany | 2.0% | 3.7% |
| China | 0.8% | 3.1% |
| South Korea | -% | 1.0% |
| Other | 0.1% | 0.2% |
|  | 79.4% | 75.5% |
| United States | 20.6% | 24.5% |
| Total | 100.0% | 100.0% |

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The following table presents our total assets by geographic region (in thousands):

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| United States | $25324 | $16951 |
| Sweden | 1555 | 1406 |
| Asia | 6 | 24 |
| Total | $26885 | $18381 |

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**Competition**

There are various driver and in-cabin monitoring solutions that compete with our MultiSensing technology. Our competitors among Tier 2 software providers include SmartEye, Cipia, Xperi, Seeing Machines, PUX and Jungo.

There are various technologies for touch and gesture control solutions available that compete with our optical zForce technology. The competing technologies have differing profiles such as performance, power consumption, level of maturity and cost. For touch solutions, the main competition comes from resistive and capacitive touch solutions. For touch displays, projective capacitive technology is the prevalent standard in mobile phones and tablets and therefore an important competing technology to ours that many suppliers offer with price being a major differentiation point. For gesture control the main competition comes from other optical technologies and from both ultrasonic and radar technologies. Examples of competitors active in the area of gesture sensing include Ultraleap and suppliers of radar and ultrasonic sensor chips, for instance Texas Instruments and Acconeer. Detection range, resolution and cost are the main differentiators.

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**Intellectual Property**

We rely on a combination of intellectual property laws and contractual provisions to establish and protect the proprietary rights in our technology. The number of our issued and pending patents and patents filed in each jurisdiction as of December 31, 2025 is set forth in the following table:

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| | | | |
|:---|:---|:---|:---|
| Jurisdiction | No. of Reg. Designs | No. of Issued Patents | No. of Patents Pending |
| United States | 5 | 40 | 5 |
| Europe |  | 6 | 3 |
| Japan |  | 5 | 0 |
| China |  | 2 | 1 |
| South Korea |  | 3 | 0 |
| Patent Convention Treaty | Not Applicable | Not Applicable | 0 |
| Total: | 5 | 56 | 9 |

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Our patents cover optical blocking technologies for touchscreens and head-up displays, optical reflective technologies for contactless interaction with kiosks and elevators, as well as machine perception solutions for driver and in-cabin monitoring.

Our software may also be protected by copyright laws in most countries, including Sweden and the European Union, if the software is deemed new and original. Protection can be claimed from the date of creation.

In 2025 we filed one new patent application and had three patent grants issued; two patents lapsed, twenty-four patents and five patent applications were abandoned.

The duration of our patent protection for utility patents is generally 20 years. The duration of our patent protection for design patents varies throughout the world between 10 and 25 years, depending on the jurisdiction. We believe the duration of our intellectual property rights is adequate relative to the expected lives of our products.

We also protect and promote our brand by registering trademarks in key markets around the world. Our trademarks include: Neonode (27 registrations, 1 pending application), the Neonode logo (8 registrations), zForce (9 registrations), and MultiSensing (3 registrations).

**Research and Development** 

In fiscal years 2025 and 2024, we incurred $3.8 million and $3.4 million, respectively, on research and development activities. Our research and development is performed predominantly in-house, but may also be performed in collaboration with external partners and specialists.

**Human Capital**

We recognize that the development, attraction and retention of employees is critical to our success. For this reason, we strive to provide a positive work culture for our employees.

We focus on skills enhancement, leadership development, innovation excellence and professional growth throughout our employees' careers. Our leadership program provides leadership training to our high-potential emerging leaders.

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We provide competitive market compensation aligned with company performance. We provide a comprehensive benefits package to our employees, including healthcare and retirement plans. We work proactively against all discrimination, harassment and other abusive behavior to ensure the work environment at Neonode is good and healthy. We believe that a diverse workforce provides different viewpoints on business strategy, risk and innovation.

We have adopted a hybrid workplace and while we encourage employees to work from the office as much as possible, employees are permitted to work part time from home.

As of December 31, 2025, we had 39 employees (including 35 full-time employees) and 6 consultants. We have employees and/or consultants located in the United States, Sweden, Japan and Taiwan. None of our employees are represented by a labor union. We have experienced no work stoppages. We believe our employee relations are positive.

**Additional Information**

We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and we file or furnish reports, proxy statements, and other information with the Securities and Exchange Commission ("SEC"). The reports and other information filed by us with the SEC are available free of charge on the SEC's website at www.sec.gov.

Our website is *www.neonode.com*. We make available free of charge through our website all of our filings with the SEC, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K as well as Form 3, Form 4, and Form 5 reports for our directors, officers, and principal stockholders, together with amendments to those reports filed or furnished pursuant to Sections 13(a), 15(d), or 16 under the Exchange Act. These reports are available as soon as reasonably practicable after their electronic filing or furnishing with the SEC. Our website also includes corporate governance information, such as our Code of Business Conduct (including a Code of Ethics for the Chief Executive Officer and Senior Financial Officers) and our Board of Directors' Committee Charters. The information contained on our website is not a part of, nor is it incorporated by reference into, this Annual Report.

**ITEM 1A. RISK FACTORS**

*An investment in our common stock involves a high degree of risk. Before deciding to purchase, hold, or sell our common stock, you should consider carefully the risks described below in addition to the cautionary statements and risks described elsewhere in this Annual Report and in our other filings with the SEC, including subsequent reports on Forms 10-Q and 8-K. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations. If any of these known or unknown risks or uncertainties actually occur, our business, financial condition, results of operations or cash flows could be seriously harmed. This could cause the trading price of our common stock to decline, resulting in a loss of all or part of your investment.*

**Risks Related to Our Business**

***We have had a history of losses and may require additional capital to fund our operations, which may not be available to us on commercially attractive terms or at all.***

We have experienced substantial net losses in each fiscal period since our inception, except for fiscal year 2025, in which we recorded a gain related to a patent assignment. These net losses have resulted from a lack of substantial revenues and the significant costs incurred in the development and commercial acceptance of our technologies. Our ability to continue as a going concern is dependent on our ability to implement our business plan. If our operations do not become cash flow positive, we may be forced to seek sources of capital to continue operations. No assurances can be given that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available when needed on acceptable terms, or at all, we may be unable to adequately fund our business plan, which could have a negative effect on our business, results of operations, and financial condition.

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We may, in the short and long-term, seek to raise capital through the issuance of equity securities or through other financing sources. To the extent that we raise additional funds by issuing equity securities, our stockholders may experience significant dilution. Any debt financing, if available, may include financial and other covenants that could restrict our use of the proceeds from such financing or impose other business and financial restrictions on us. In addition, we may consider alternative approaches such as licensing, joint ventures, or partnership arrangements to provide long-term capital.

***We are dependent on a limited number of customers.***

Our licensing revenues for the year ended December 31, 2025 were earned from eight OEM, ODM and Tier 1 customers. We generated NRE revenues from two customers for the year ended December 31, 2025. During the year ended December 31, 2025, four customers represented approximately 95.4% of our consolidated net revenues. Our customer concentration may change significantly from period-to-period depending on a customer's product cycle and changes in our industry. The loss of a major customer, a reduction in net revenues of a major customer for any reason, or a failure of a major customer to fulfill its financial or other obligations due to us could have a material adverse effect on our business, financial condition, and future revenue stream. The new business strategy with 100% focus on technology and software licensing that we launched in December 2023 is likely to trigger changes in our customer composition and an overall reduction of the number of customers we have active engagements with.

***We rely on the ability of our customers to design, manufacture and sell their products that incorporate our touch technology.***

We have historically generated revenue through technology licensing agreements with companies that design, manufacture, and sell their own products incorporating our touch technology. The majority of our license fees earned in 2025 and 2024 were from customer shipments of printer products and automotive infotainment systems. We continue to rely on licensing revenues from current and new customers whose products are still in the development cycle. If our customers are not able to design, manufacture and sell their products, or are delayed in producing and selling their products, our revenues, profitability, and liquidity, as well as our brand image, may be adversely affected.

***The length of a customer***'***s product development and release cycle depends on many factors outside of our control and any delays could cause us to incur significant expenses without offsetting revenues, or revenues that vary significantly from quarter to quarter.***

The development and release cycle for customer products is lengthy and unpredictable. Our customers often undertake significant evaluation and design in the qualification of our solutions, which contributes to a lengthy product release cycle. The typical product development and release cycle is 18 to 36 months. The development and release cycle may be longer in some cases, particularly for automotive vehicle products. There is no assurance that a customer will adopt our technology after the evaluation or design phase, in which case we would not be entitled to any revenues from the customer moving forward. The lengthy and variable development and release cycle for products may also have a negative impact on the timing of our revenues, causing our revenues and results of operations to vary significantly from quarter to quarter.

***Our license customers rely upon component suppliers to manufacture and sell products containing our technology and limited availability of components may adversely affect our and our customers***' ***businesses.***

Under our licensing model, OEMs, ODMs and Tier 1 suppliers manufacture or contract to manufacture products that include Neonode's special Application Specific Integrated Circuits ("ASICs") that incorporate our patented technology. The Neonode ASICs are manufactured by Texas Instruments and ST Microelectronics. Texas Instruments manufactures two ASIC components that are purchased by our license customers. As part of their product development process, our customers must qualify these components for use in their products, thus making the components difficult to replace.

Our dependence on third parties to supply core components that incorporate our patented technology exposes us to a number of risks including the risk that these suppliers will not be able to obtain an adequate supply of raw materials or components, the risk that these suppliers will not be able to meet our customer requirements, and the risk that these suppliers will not be able to remain in business or adjust to market conditions. If our customers are unable to obtain ASICs that incorporate our patented technology, we may not be able to meet the demand, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

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***It can be difficult for us to verify royalty amounts owed to us under licensing agreements, and this may cause us to lose potential revenue.***

Our license agreements typically require our licensees to document the sale of licensed products and report this data to us on a quarterly basis. Although our standard license terms give us the right to audit books and records of our licensees to verify this information, audits can be expensive, time-consuming, incomplete, and subject to dispute. From time to time, we audit certain of our licensees to verify independently the accuracy of the information contained in their royalty reports in an effort to decrease the likelihood that we will not receive the royalty revenues to which we are entitled under the terms of our license agreements, but we can give no assurances that these audits will be effective.

***If we fail to develop and introduce new technology successfully, and in a cost-effective and timely manner, we will not be able to compete effectively and our ability to generate revenues will suffer****.*

We operate in a highly competitive, rapidly evolving environment, and our success depends on our ability to develop and introduce new technology that our customers and end users choose to buy. If we are unsuccessful at developing new technologies that are appealing to our customers and end users, with acceptable functionality, quality, prices, and terms, we will not be able to compete effectively and our ability to generate revenues will suffer. The development of new technology is very difficult and requires high levels of innovation and competence. The development process is typically also very lengthy and costly. If we fail to anticipate our end users' needs or technological trends accurately or if we are unable to complete development in a cost effective and timely fashion, we will be unable to introduce new technology into the market or successfully compete with other providers. As we introduce new or enhanced technology or integrate new technology into new or existing customer products, we face risks including, among other things, disruption in customers' ordering patterns, inability to deliver new technology to meet customers' demand, possible product and technology defects, and potentially unfamiliar sales and support environments. Premature announcements or leaks of new products, features, or technologies may exacerbate some of these risks. Our failure to manage the transition to newer technology or the integration of newer technology into new or existing customer products could adversely affect our business, results of operations, and financial condition.

***Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside of our control.***

As a result of the unpredictability of our customer product development and the nature of the markets in which we compete, it is very difficult for us to forecast accurately. We base our current and future expense estimates largely on our investment plans and estimates of future needs, although some of our expenses are, to a large extent, fixed. We may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall. Accordingly, any significant shortfall in revenues relative to our planned expenditures would have an immediate adverse effect on our business, results of operations and financial condition.

In addition, the following factors, among others, may negatively affect and cause fluctuations in our operating results:

● the announcement or introduction of new products or technologies by our competitors;

● our ability to upgrade and develop our infrastructure to accommodate growth;

● our ability to attract and retain key personnel in a timely and cost-effective manner;

● technical difficulties;

● the amount and timing of operating costs and capital expenditures relating to the expansion of our business, operations, and infrastructure;

● economic conditions specific to the industries and segments where we are active, for instance printers, automotive, elevators, and interactive kiosks; and

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● general economic conditions including as a result of pandemics or epidemics, or geopolitical conflicts such as the ongoing war in Ukraine or the Israel-Palestine conflict.

Further, as a strategic response to changes in the competitive environment, we may from time to time make certain pricing, service, or marketing decisions that could have a material and adverse effect on our business, results of operations, and financial condition. Due to the foregoing factors, our revenues and operating results are and will remain difficult to forecast.

***We must enhance our sales and technology development organizations. If we are unable to identify, hire, or retain qualified sales, marketing, and technical personnel, our ability to achieve future revenue may be adversely affected.***

We continually monitor and enhance the effectiveness and breadth of our sales efforts in order to increase market awareness and sales of our technology, especially as we expand into new market areas. Competition for qualified sales personnel is intense, and we may not be able to hire the kind and number of sales personnel we are targeting. Likewise, our efforts to improve and refine our technology require skilled engineers and programmers. Competition for professionals capable of expanding our research and development efforts is intense due to the limited number of people available with the necessary technical skills. If we are unable to identify, hire, or retain qualified sales, marketing, and technical personnel, our ability to achieve future revenue may be adversely affected.

***We may make acquisitions and strategic investments that are dilutive to existing stockholders, result in unanticipated accounting charges or otherwise adversely affect our results of operations.***

We may decide to grow our business through business combinations or other acquisitions of businesses, products or technologies that allow us to complement our existing technology offerings, expand our market coverage, increase our workforce, or enhance our technological capabilities. If we make any future acquisitions, we could issue stock that would dilute our stockholders' percentage ownership, or we may incur substantial debt, reduce our cash reserves and/or assume contingent liabilities. Further, acquisitions and strategic investments may result in material charges, adverse tax consequences, substantial depreciation, deferred compensation charges, in-process research and development charges, and the amortization of amounts related to deferred compensation and identifiable purchased intangible assets or impairment of goodwill. Any of these could negatively impact our results of operations.

***We are dependent on the services of our key personnel.***

We are highly dependent on our senior management team, including Pierre Daniel Alexus, our Chief Executive Officer, and Fredrik Nihlén, our Chief Financial Officer. Changes in our senior management team or the unplanned loss of the services of either member of our senior management team could have a material adverse effect on our operations and future prospects.

***If we are unable to obtain and maintain patent or other intellectual property protection for any products we develop or for our technologies, or if the scope of the patents and other intellectual property protection obtained is not sufficiently broad, our competitors could develop and commercialize products and technologies similar or identical to ours, and our ability to successfully commercialize any products we may develop, and our technologies, may be harmed.***

Our success depends in large part on our proprietary technology and other intellectual property rights. We rely on a combination of patents, copyrights, trademarks and trade secrets, confidentiality provisions, and licensing arrangements to establish and protect our proprietary rights. Our intellectual property, particularly our patents, may not provide us with a significant competitive advantage. If we fail to protect or to enforce our intellectual property rights successfully, our competitive position could suffer, which could harm our results of operations. Our pending patent applications for registration may not be allowed, or others may challenge the validity or scope of our patents. Even if our patent registrations are issued and maintained, these patents may not be of adequate scope or benefit to us or may be held invalid and unenforceable against third parties. We may need to expend significant resources to secure and protect our intellectual property. The loss of intellectual property rights may adversely impact our ability to generate revenues and expand our business.

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***We may not be successful in our strategic efforts around patent monetization.***

Our success depends in part on our ability to effectively utilize our intellectual property. Our policy is to always try to protect our innovations using patents. Our patent portfolio is an important prerequisite for our licensing business and also protects our investments in product development. From time to time, we also explore opportunities to monetize our patents per se. As an example of this, on May 6, 2019, we assigned a portfolio of patents to Aequitas Technologies LLC to license or otherwise monetize those patents. In the future we may enter into additional alternative patent monetization strategies, including the sale of patents. Our patent monetization strategies may negatively impact our financial condition, revenues, and results of operations. No assurance can be given that we will enter into agreements related to our patent portfolio or that we will be successful in any strategic efforts around patent monetization.

***If third parties infringe upon our intellectual property, we may expend significant resources enforcing our rights or suffer competitive injury.***

Existing laws, contractual provisions and remedies afford only limited protection for our intellectual property. We may be required to spend significant resources to monitor and police our intellectual property rights. Effective policing of the unauthorized use of our technology or intellectual property is difficult, and litigation may be necessary in the future to enforce our intellectual property rights. Intellectual property litigation is not only expensive, but time-consuming, regardless of the merits of any claim, and could divert attention of our management from operating the business. Intellectual property lawsuits are subject to inherent uncertainties due to, among other things, the complexity of the technical issues involved, and we cannot assure you that we will be successful in asserting our intellectual property rights. Attempts may be made to copy or reverse engineer aspects of our technology or to obtain and use information that we regard as proprietary. We may not be able to detect infringement and may lose competitive position in the market as a result. In addition, competitors may design around our technology or develop competing technologies. We cannot assure you that we will be able to protect our proprietary rights against unauthorized third party copying or use. The unauthorized use of our technology or of our proprietary information by competitors could have an adverse effect on our ability to sell our technology.

***The laws of certain foreign countries may not provide sufficient protection of our intellectual property rights to the same extent as the laws of the United States, which may make it more difficult for us to protect our intellectual property.***

As part of our business strategy, we target customers and relationships with suppliers and OEMs in countries with large populations and propensities for adopting new technologies. However, many of these countries do not address misappropriation of intellectual property nor deter others from developing similar, competing technologies or intellectual property. Effective protection of patents, copyrights, trademarks, trade secrets and other intellectual property may be unavailable or limited in some foreign countries. In particular, the laws of some foreign countries in which we do business may not protect our intellectual property rights to the same extent as the laws of the United States. As a result, we may not be able to effectively prevent competitors in these regions from infringing our intellectual property rights, which could reduce our competitive advantage and ability to compete in those regions and negatively impact our business.

***We have an international presence in countries and must manage currency risks.***

A significant portion of our business is conducted in currencies other than the U.S. dollar (the currency in which our consolidated financial statements are reported), primarily the Swedish Krona and, to a lesser extent, the Euro, Japanese Yen and Korean Won. For the year ended December 31, 2025, our revenues from Asia, North America and Europe were 20.6%, 62.8%, and 16.6%, respectively. We incur a significant portion of our expenses in Swedish Krona, including a significant portion of our research and development expenses and a substantial portion of our general and administrative expenses. As a result, appreciation of the value of the Swedish Krona relative to the other currencies, particularly the U.S. dollar, could adversely affect operating results. We do not currently undertake hedging transactions to cover our currency exposure, but we may choose to hedge a portion of our currency exposure in the future as we deem appropriate.

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***We have concentration of cash balance at various banks in the United States, Japan and Sweden.***

Cash and cash equivalents balances are maintained at various banks in the United States, Japan and Sweden. For deposits held with financial institutions in the United States, the U.S. Federal Deposit Insurance Corporation provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 1,050,000 Krona per customer and covers deposits in all types of accounts. For bank accounts of the category held by Neonode, the Japanese government provides full insurance coverage. At times, deposits held with financial institutions may exceed the amount of insurance provided.

***Security breaches and other disruptions to our information technology infrastructure could interfere with our operations, compromise confidential information, and expose us to liability which could materially adversely impact our business and reputation.***

In the normal course of business, we rely on information technology networks and systems to process, transmit, and store electronic information, and to manage or support a variety of business processes and activities. Additionally, we collect and store certain data, including proprietary business information and customer and employee data, and may have access to confidential or personal information in certain of our businesses that is subject to privacy and security laws, regulations, and customer-imposed controls. Despite our cybersecurity measures, our information technology networks, and infrastructure may be vulnerable to damage, disruptions, or shutdowns due to attacks by hackers or breaches, employee error or malfeasance, power outages, computer viruses, telecommunication or utility failures, systems failures, natural disasters, or other catastrophic events. Any such events could result in legal claims or proceedings, liability or penalties under privacy laws, disruption in operations, and damage to our reputation, which could materially adversely affect our business.

***Third parties that maintain our confidential and proprietary information could experience a cybersecurity incident.***

We rely on third parties to provide or maintain some of our information technology and related services. We do not exercise direct control over these systems. Despite the implementation of security measures at third party locations, these services are also vulnerable to security breaches or other disruptions. Despite assurances from third parties to protect this information and, where we believe appropriate, our monitoring of the protections employed by these third parties, there is a risk that the confidentiality of the data held by these third parties on our behalf may be compromised and expose us to liability for any security breach or disruption.

***While we have identified material weaknesses in our internal control, if we are unable to detect additional material weaknesses in our internal control, our financial reporting and our business may be adversely affected.***

Section 404 of the Sarbanes-Oxley Act of 2002 requires us to evaluate the effectiveness of our internal controls over financial reporting as of the end of each fiscal year, and to include a management report assessing the effectiveness of our internal controls over financial reporting in our annual report on Form 10-K for that fiscal year. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud involving a company have been, or will be, detected. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and we cannot assure you that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become ineffective because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. As described below, we have identified material weaknesses in our internal control over financial reporting. As a result of the material weaknesses, our management concluded that our internal control over financial reporting was not effective based on criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission. Consequently, we may experience a loss of public confidence, which could have an adverse effect on our business and on the market price of our common stock. We cannot assure you that we or our independent registered public accounting firm will not identify an additional material weakness in our internal controls in the future.

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***We have identified material weaknesses in our internal control over financial reporting. If we are unable to remediate these material weaknesses, or if we identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, we may not be able to accurately or timely report our financial condition or results of operations.***

Our management is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended.

In the course of our assessment of the effectiveness of our internal control over financial reporting as of December 31, 2025, our management identified material weaknesses in our internal control over financial reporting. The material weaknesses are discussed in more detail in this Annual Report under "Item 9A. Controls and Procedures."

A material weakness is defined as a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

Our management is actively engaged in developing a remediation plan designed to address these material weaknesses. We cannot assure you that any measures we may take in the near future will be sufficient to remediate these material weaknesses or avoid potential future material weaknesses. In addition, we may suffer adverse regulatory or other consequences, as well as negative market reaction, as a result of any material weaknesses, and we will incur additional costs as we seek to remediate these material weaknesses.

If we are unable to successfully remediate our existing or any future material weaknesses in our internal control over financial reporting, or identify any additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, the accuracy and timing of our financial reporting may be negatively impacted, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our financial reporting, and our stock price may decline as a result.

**Risks Related to Owning Our Stock**

***Future sales of our common stock by us or our insiders could adversely affect the trading price of our common stock and dilute your investment.***

Our long-term success is dependent on us obtaining sufficient capital to fund our operations, develop our technology and bring our technology to the worldwide market in order to generate sufficient sales volume to be profitable. We may sell securities in the public or private equity markets if and when conditions are favorable, even if we do not have an immediate need for additional capital at that time. We may also issue additional common stock in future financing transactions or as incentive compensation for our executive management and other key personnel, consultants, and advisors.

Sales of substantial amounts of common stock by us or by our insiders or large stockholders, or the perception that such sales could occur, could adversely affect the prevailing market price of our common stock and our ability to raise capital. Issuing equity securities would also be dilutive to the equity interests represented by our then-outstanding shares of common stock. The market price for our common stock could decrease as the market takes into account the dilutive effect of any of these issuances. Furthermore, we may enter into financing transactions at prices that represent a substantial discount to the market price of our common stock. A negative reaction by investors and securities analysts to any discounted sale of our equity securities could result in a decline in the trading price of our common stock.

***We currently have fewer than 300 stockholders of record and, therefore, are eligible to terminate the registration of our common stock under the Exchange Act and cease being a U.S. public company with reporting obligations.***

Section 12(g)(4) of the Exchange Act allows for the registration of any class of securities to be terminated after a company files a certification with the SEC that the number of holders of record of such class of security is fewer than 300 persons. As of January 26, 2026, there were 53 stockholders of record of our common stock. This does not include the number of shareholders that hold shares in "street name" through banks, brokers and other financial institutions. Accordingly, we are eligible to deregister our common stock and suspend our reporting obligations under the Exchange Act. If we were to terminate our registration and suspend our reporting obligations under the Exchange Act, we would no longer be required to comply with U.S. public company disclosure requirements under the Exchange Act, including, but not limited to, annual and quarterly report filings, proxy statement filings and filings by insiders to disclose the acquisition and disposition of our securities.

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***Our stock price has been volatile, and your investment in our common stock could suffer a decline in value.***

There has been significant volatility in the market price and trading volume of equity securities, which is unrelated to the financial performance of the companies issuing the securities. These broad market fluctuations may negatively affect the market price of our common stock. You may not be able to resell your shares at or above the price you pay for those shares due to fluctuations in the market price of our common stock caused by changes in our operating performance or prospects, and other factors.

Some factors that may have a significant effect on our common stock market price include:

● actual or anticipated fluctuations in our operating results or future prospects;

● our announcements or our competitors' announcements of new technology;

● the public's reaction to our press releases, our other public announcements, and our filings with the SEC;

● strategic actions by us or our competitors, such as acquisitions or restructurings;

● new laws or regulations or new interpretations of existing laws or regulations applicable to our business;

● changes in accounting standards, policies, guidance, interpretations, or principles;

● changes in our growth rates or our competitors' growth rates;

● developments regarding our patents or proprietary rights or those of our competitors;

● the public's reaction to news concerning Aequitas Technologies LLC's patent litigations against Apple and Samsung;

● our inability to raise additional capital as needed;

● concern as to the efficacy of our technology;

● changes in financial markets or general economic conditions, including as a result of war, terrorism, pandemics or other catastrophes;

● sales of common stock by us or members of our management team; and

● changes in stock market analyst recommendations or earnings estimates regarding our common stock, other comparable companies, or our industry generally.

***A limited number of stockholders, including directors, hold a significant number of shares of our outstanding common stock.***

Our two largest stockholders, who both are members of our Board of Directors, hold approximately one-fifth of the shares of our outstanding voting stock. This concentration of ownership could impact the outcome of stockholder votes, including votes concerning the election of directors, the adoption or amendment of provisions in our certificate of incorporation and our bylaws, and the approval of mergers and other significant corporate transactions. These factors may also have the effect of delaying or preventing a change in our management or our voting control.

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***Our certificate of incorporation and bylaws and the Delaware General Corporation Law contain provisions that could delay or prevent a change in control.***

Our Board of Directors has the authority to issue up to 1,000,000 shares of preferred stock and to determine the price, rights, preferences, and privileges of those shares without any further vote or action by the stockholders. The rights of the holders of common stock will be subject to, and may be materially adversely affected by, the rights of the holders of any preferred stock that may be issued in the future. The issuance of preferred stock could have the effect of making it more difficult for a third party to acquire a majority of our outstanding voting stock. Furthermore, certain other provisions of our certificate of incorporation and bylaws may have the effect of delaying or preventing changes in control or management, which could adversely affect the market price of our common stock. In addition, we are subject to the provisions of Section 203 of the Delaware General Corporation Law, an anti-takeover law.

***If securities analysts do not publish research or if securities analysts or other third parties publish inaccurate or unfavorable research about us, the price of our common stock could decline.***

The trading market for our common stock may rely in part on the research and reports that securities analysts and other third parties choose to publish about us. We do not control these analysts or other third parties. The price of our common stock could be negatively impacted by insufficient analyst coverage or if one or more analysts or other third parties publish inaccurate or unfavorable research about us.

**ITEM 1B. UNRESOLVED STAFF COMMENTS**

None.

**ITEM *1C.* CYBERSECURITY**

We maintain a structured and risk-based process for identifying, assessing, and managing material risks arising from cybersecurity threats as part of our broader enterprise risk management framework. Our cybersecurity risk management activities are integrated into the Company's overall risk management processes and are designed to address prevention, detection, response, and recovery. We monitor security industry developments and global threat trends on an ongoing basis. Cybersecurity risk management and mitigation are overseen by dedicated privacy, safety, and security professionals, including our Information Security & Quality Manager, who has primary responsibility for overseeing cybersecurity operations. Our cybersecurity program is supported by both internal resources and external service providers with relevant expertise across multiple industries. Executive management is responsible for the Company's enterprise risk management program and regularly considers cybersecurity risks alongside other operational, financial, and strategic risks. Cybersecurity risks are assessed for potential materiality and are incorporated into management decision-making where appropriate.

As part of our cybersecurity risk management program, we track, log, and manage privacy and security incidents across Neonode, as well as incidents involving vendors and other third-party service providers. Reported incidents are evaluated in accordance with established procedures to determine severity, potential impact, and required remediation. Significant incidents are reviewed by a cross-functional team, and any incident assessed as potentially material, or potentially becoming material, is escalated promptly to senior management for further evaluation. Where appropriate, we consult external advisors, including legal counsel, to support materiality assessments, regulatory considerations, and disclosure obligations. Senior management is responsible for making final determinations regarding materiality and related disclosure or compliance actions.

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The Board of Directors has oversight responsibility for cybersecurity risks, including oversight of material cybersecurity incidents, compliance with applicable disclosure requirements, and the potential impact of cybersecurity risks on the Company's financial condition, results of operations, and business strategy. Senior management provides updates to the Board of Directors regarding cybersecurity risks, trends, and, if applicable, material incidents.

To date, our business strategy, results of operations, and financial condition have not been materially affected by risks arising from cybersecurity threats, including as a result of previously identified cybersecurity incidents. However, cybersecurity risks continue to evolve, and we cannot provide assurance that future incidents or emerging threats will not have a material adverse effect. For additional information regarding cybersecurity-related risks, see Item 1A – Risk Factors of this Annual Report on Form 10-K.

**ITEM 2. PROPERTIES**

As of December 31, 2025, we leased office facilities of approximately 6,700 square feet for our corporate headquarters in Stockholm.

We believe our facilities are adequate and suitable for our current needs and that suitable additional or alternative space will be available to accommodate our operations if needed.

**ITEM 3. LEGAL PROCEEDINGS**

We are not a party to any pending legal proceedings. From time to time, we may become subject to legal proceedings, claims, and litigation arising in the ordinary course of business, including, but not limited to, employee, customer and vendor disputes.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

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**PART II**

**ITEM 5. MARKET FOR THE REGISTRANT**'**S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES**

**Market Information**

Our common stock is quoted on the Nasdaq Stock Market under the symbol "NEON."

**Holders**

As of January 26, 2026, there were 53 stockholders of record of our common stock. This does not include the number of stockholders that hold shares in "street name" through banks, brokers, and other financial institutions.

**Securities Authorized for Issuance Under Equity Compensation Plans**

See Part III, Item 12. "Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters" for information relating to our equity compensation plans.

**Recent Sale of Unregistered Securities and Use of Proceeds**

None.

**Purchases of Equity Securities by the Issuer and Affiliated Purchasers**

None.

**ITEM 6. [RESERVED]**

**ITEM 7. MANAGEMENT**'**S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes thereto included elsewhere in this Annual Report. All information in the following discussion and analysis presents the results of continuing operations and excludes amounts related to discontinued operations for all periods presented unless otherwise stated.

**Overview**

Neonode provides software solutions for machine perception that feature advanced machine learning algorithms to detect and track persons and objects in video streams from cameras and other types of imagers. We base our machine perception solutions on our MultiSensing® technology platform. We market and sell our solutions to customers mainly in the automotive market. However, our solution can also be used in many other markets, and we plan to expand our solutions into new markets in the future.

Neonode also provides advanced optical sensing solutions for touch, contactless touch, and gesture sensing using our zForce® technology platform. In September 2025, we made the strategic decision to transition the zForce platform into maintenance mode. We are no longer selling zForce technology to new customers but will continue supporting existing customers in various markets and segments such as office equipment, automotive, industrial automation, medical, military, and avionics.

**Recent Accounting Pronouncements**

The information set forth under Note 1 to the consolidated financial statements is incorporated herein by reference.

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**Critical Accounting Estimates** 

Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which requires us to make certain estimates, judgments and assumptions that can affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure. Critical accounting estimates are those estimates that involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. To the extent that there are differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected. We have not identified any critical accounting estimate. Refer to Note 1 of our consolidated financial statements for more discussion of our significant accounting policies.

**Results of Operations**

The following table provides our consolidated results (in thousands, except percentages):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Years ended December 31, | Years ended December 31, | Variance in | Variance in |
|  | 2025 | 2024 | Dollars | Percent |
| Revenues: |  |  |  |  |
| License fees | $1822 | $2687 | $(865) | (32.2) |
| *Percentage of revenue* | *88.4 %* | *86.5 %* |  |  |
| Non-recurring engineering | 240 | 421 | (181) | (43.0) |
| *Percentage of revenue* | *11.6 %* | *13.5 %* |  |  |
| Total revenues | $2062 | $3108 | $(1046) | (33.7) |
| Cost of revenues: |  |  |  |  |
| Non-recurring engineering | 26 | 116 | (90) | (77.6) |
| *Percentage of revenue* | *1.3 %* | *3.7 %* |  |  |
| Total cost of revenues | $26 | $116 | $(90) | (77.6) |
| Gross margin | $2036 | $2992 | $(956) | (32.0) |
| Operating expenses: |  |  |  |  |
| Research and development | $3779 | $3444 | $335 | 9.7 |
| *Percentage of revenue* | *183.3 %* | *110.8 %* |  |  |
| Sales and marketing | 2274 | 2328 | (54) | (2.3) |
| *Percentage of revenue* | *110.3 %* | *74.9 %* |  |  |
| General and administrative | 4123 | 3767 | 356 | 9.5 |
| *Percentage of revenue* | *200.0 %* | *121.2 %* |  |  |
| Total operating expenses | $10176 | $9539 | $637 | 6.7 |
| *Percentage of revenue* | *493.5 %* | *306.9 %* |  |  |
| Gain from patent assignment | $19389 | $- | $19389 |  |
| *Percentage of revenue* | *940.3 %* | *- %* |  |  |
| Broker fee from patent assignment | (3878) |  | (3878) |  |
| *Percentage of revenue* | *(188.1)%* | *- %* |  |  |
| Operating income (loss) | $7371 | $(6547) | $13918 | (212.6) |
| *Percentage of revenue* | *357.5 %* | *(210.6)%* |  |  |
| Other income, net | 657 | 687 | (30) | (4.4) |
| *Percentage of revenue* | *31.9 %* | *22.1 %* |  |  |
| Provision (benefit) for income taxes | (9) | 15 | (24) | (160.0) |
| *Percentage of revenue* | *(0.4)%* | *0.5 %* |  |  |
| Income (loss) from continuing operations | $8037 | $(5875) | $13912 | (236.8) |
| *Percentage of revenue* | *389.8 %* | *(189.0)%* |  |  |
| Basic and diluted income (loss) per share from continuing operations | $0.48 | $(0.37) | $0.85 | (229.7) |

---

***Revenues***

All of our sales for the years ended December 31, 2025 and 2024 were to customers located in the United States, Europe and Asia.

Total net revenues were $2.1 million and $3.1 million for the years ended December 31, 2025 and 2024, respectively. The decrease in total net revenues by 33.7% for the year ended December 31, 2025 as compared to 2024 was caused by lower revenues from both license revenues and non-recurring engineering.

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The following table presents the net revenues distribution by business area and revenue stream (in thousands, except percentages):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Years ended December 31, | Years ended December 31, | Years ended December 31, | Years ended December 31, |
|  | 2025 | 2025 | 2024 | 2024 |
|  | Amount | Percentage | Amount | Percentage |
| **Automotive:** |  |  |  |  |
| License fees | $537 | 72.9% | $949 | 77.9% |
| Non-recurring engineering | 200 | 27.1% | 270 | 22.1% |
|  | $737 | 100.0% | $1219 | 100.0% |
| **IT & Industrial:** |  |  |  |  |
| License fees | $1285 | 97.0% | $1738 | 92.0% |
| Non-recurring engineering | 40 | 3.0% | 151 | 8.0% |
|  | $1325 | 100.0% | $1889 | 100.0% |

---

The following table presents disaggregated revenues by revenue stream (in thousands, except percentages):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Years ended December 31, | Years ended December 31, | Years ended December 31, | Years ended December 31, |
|  | 2025 | 2025 | 2024 | 2024 |
|  | Amount | Percentage | Amount | Percentage |
| Net license revenues from amusement | $138 | 6.7% | $150 | 4.8% |
| Net license revenues from automotive | $537 | 26.0% | 948 | 30.5% |
| Net license revenues from consumer electronics | $1147 | 55.7% | 1589 | 51.2% |
| Net non-recurring engineering services revenues | 240 | 11.6% | 421 | 13.5% |
|  | $2062 | 100.0% | $3108 | 100.0% |

---

Revenues from license fees were $1.8 million and $2.7 million for the years ended December 31, 2025 and 2024, respectively. The decrease of 32.2% in 2025 as compared to 2024 was mainly due to lower demand for our legacy customers products within printer and passenger car touch applications offset by revenues from new licensing customers.

Revenues from non-recurring engineering revenues were $0.2 million and $0.4 million for the years ended December 31, 2025 and 2024. Our non-recurring engineering revenues are related to application development and proof-of-concept projects related to our zForce and MultiSensing technology platforms. The decrease of 43.0% in 2025 compared to 2024 was the result of decreased delivery in projects.

***Gross Margin***

Our gross margin was 98.7% in 2025 compared to 96.3% in 2024. The increase in 2025 compared to 2024 were due to decrease in NRE revenues.

Our cost of revenues includes the direct cost of production of certain customer prototypes, costs of engineering personnel, engineering consultants to complete the engineering design contracts.

***Research and Development***

R&D expenses for 2025 and 2024 were $3.8 million and $3.4 million, respectively. R&D expenses primarily consist of personnel-related costs in addition to external consultancy costs, such as testing, certifying and measurements, along with costs related to developing and building new product prototypes. The increase of 9.7% in 2025 compared to 2024 was primarily related to unfavorable exchange rate development and lower NRE revenues causing less costs to be allocated to cost of sales.

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***Sales and Marketing***

Sales and marketing expenses for 2025 and 2024 were $2.3 million and $2.3 million, respectively. Sales and marketing expenses in 2025 decreased 2.3% compared to 2024, despite unfavorable exchange rate development, primarily due to lower costs for marketing and lower legal fees.

Our sales and marketing activities focus on OEM, ODM and Tier 1 customers who will license our technology.

***General and Administrative***

General and administrative ("G&A") expenses for 2025 and 2024 were $4.1 million and $3.8 million, respectively. The increase of 9.5% compared to 2024 was primarily due to unfavorable exchange rate development and higher professional fees. There is no non-cash stock-based compensation included in G&A expenses for the year ended December 31, 2025 compared to $3,000 for the year ended December 31, 2024.

***Gain from Patent Assignment and Broker Fee from Patent Assignment***

Gain from the patent assignment to Aequitas Technologies LLC ("Aequitas") was $19.4 million for the year ended December 31, 2025. The Company recognized a brokerage fee from the patent assignment of $3.8 million for the year ended December 31, 2025. The amount represents the final outcome from the legal proceedings between Neonode Smartphone LLC, an unrelated third party that is a subsidiary of Aequitas ("Aequitas Sub"), and Samsung Electronics Co., Ltd. and Samsung Electronics America, Inc. (collectively, "Samsung"), excluding any potential tax recoveries.

***Other Income***

Other income for the year ended December 31, 2025 was $0.7 million compared to $0.7 million for the year ended December 31, 2024. The other income for 2025 and 2024 was mainly related to interest income earned.

***Income Taxes***

Our effective tax rate was (0.1)% for the year ended December 31, 2025 and (0.3)% for the year ended December 31, 2024. We recorded valuation allowances in 2025 and 2024 for deferred tax assets related to net operating losses due to the uncertainty of realization.

***Net Loss***

As a result of the factors discussed above, we recorded a net income of $8.0 million for the year ended December 31, 2025, compared to a net loss of $5.9 million for the year ended December 31, 2024.

***Liquidity and Capital Resources***

Our liquidity is dependent on many factors, including sales volume, operating profit and the efficiency of asset use and turnover. Our future liquidity will be affected by, among other things:

● licensing of our technology;

● operating expenses;

● timing of our OEM customer product shipments;

● timing of payment for our technology licensing agreements;

● gross profit margin; and

● ability to raise additional capital, if necessary.

As of December 31, 2025, we had cash and cash equivalents of $25.4 million, as compared to $16.4 million as of December 31, 2024. Based on our current cash position, and assuming currently planned expenditures and level of operations, we believe we have sufficient capital to fund operations for the twelve-month period subsequent to the date of this Annual Report.

Working capital (current assets less current liabilities) was $24.1 million as of December 31, 2025, compared to working capital of $16.1 million as of December 31, 2024.

Net cash used in operating activities for combined continuing and discontinued operations for the year ended December 31, 2025 was $10.3 million and was primarily the result of a net income of $8.5 million and approximately $19.2 million in adjustments to reconcile net loss to net cash used in operating activities, comprised of recoveries of bad debt, gain from patent assignment, loss on disposal of assets, depreciation and amortization and amortization of operating lease right-of-use assets, and changes in operating assets and liabilities of $444,000. Net cash used in operating activities for the year ended December 31, 2024 was $5.6 million and was primarily the result of a net loss of $6.5 million and approximately $687,000 in non-cash operating expenses, comprised of stock-based compensation expense, bad debt expense, loss on disposal of assets, depreciation and amortization, amortization of operating lease right-of-use assets, and inventory impairment loss and changes in operating assets and liabilities of $187,000.

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Accounts receivable and unbilled revenues for combined continuing and discontinued operations decreased by approximately $300,000 as of December 31, 2025 compared to December 31, 2024, due to lower revenues. Prepaid expenses and other current assets for combined continuing and discontinued operations increased by approximately $20,000, mainly due to increased tax receivables. Accounts payable, accrued payroll and employee benefits, and accrued expenses for combined continuing and discontinued operations increased approximately $395,000 as of December 31, 2025 compared to December 31, 2024.

Net cash provided by investing activities for the year ended December 31, 2025 was $19.3 million and consisted primarily of the proceeds from the patent assignment.

We have incurred significant operating losses and negative cash flows from operations since our inception. The Company incurred net income for combined continuing and discontinued operations of approximately $8.5 million for the year ended December 31, 2025 and net loss of $6.5 million for the year ended December 31, 2024, and had an accumulated deficit of approximately $215.6 million and $224.1 million as of December 31, 2025 and 2024, respectively. In addition, operating activities used cash of approximately $10.3 million and $5.6 million for the years ended December 31, 2025 and 2024, respectively.

The consolidated financial statements included herein have been prepared on a going concern basis, which contemplates continuity of operations and the realization of assets and the repayment of liabilities in the ordinary course of business. Management evaluated the significance of the Company's operating loss and negative cash flows from operations and determined that the Company's current operating plan and sources of liquidity would be sufficient to alleviate concerns about the Company's ability to continue as a going concern. Management has prepared an operating plan and believes that the Company has sufficient cash to meet its obligations as they come due for a year from the date the financial statements were issued. During the year ended December 31, 2024, we sold an aggregate of 1,423,441 of our common stock under the Ladenburg ATM Facility (as defined below) with aggregate net proceeds to us of $5.8 million, after payment of commissions to Ladenburg Thalmann & Co. Inc. ("Ladenburg") and other expenses of $0.2 million. During the year ended December 31, 2025, no shares were sold under the Ladenburg ATM Facility.

In the future, we may require sources of capital in addition to cash on hand and our Ladenburg ATM Facility to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek equity investments or debt arrangements. Historically, we have been able to access the capital markets through sales of common stock and warrants to generate liquidity. Our management believes it could raise capital through public or private offerings if needed to provide us with sufficient liquidity.

No assurances can be given, however, that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, results of operations and financial condition. In addition, no assurance can be given that stockholders will approve an increase in the number of our authorized shares of common stock if needed. The issuance of equity securities or securities convertible into equity could dilute the value of shares of our common stock and cause the market price to fall, and the issuance of debt securities could impose restrictive covenants that could impair our ability to engage in certain business transactions.

The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen and the South Korean Won. They are subject to foreign currency exchange rate risk. Any increase or decrease in the exchange rate of the U.S. Dollar compared to the Swedish Krona, Japanese Yen or South Korean Won will impact our future operating results.

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***Contractual Obligation and Off-Balance Sheet Arrangements***

We do not have any transactions, arrangements, or other relationships with unconsolidated entities that are reasonably likely to affect our liquidity or capital resources other than the operating leases incurred in the normal course of business.

We have no special purpose or limited purpose entities that provide off-balance sheet financing, liquidity, or market or credit risk support. We do not engage in leasing, hedging, research and development services, or other relationships that expose us to liability that is not reflected on the face of the consolidated financial statements.

***Operating Leases***

Neonode Inc. operates solely through a virtual office in California.

On December 1, 2020, Neonode Technologies AB entered into a lease for 6,684 square feet of office space located at Karlavägen 100, Stockholm, Sweden. The lease agreement has been extended and is valid through January 2027. It is extended on a yearly basis unless written notice is provided nine months prior to the expiration date.

For the years ended December 31, 2025 and 2024, we recorded approximately $455,000 and $449,000, respectively, for rent expense in continuing operations.

***Equipment Subject to Finance Leases***

In 2025, we entered into a lease for a Volkswagen ID Buzz to be used as a demo car for our technology. Under the terms of the agreement, the lease will be renewed within two years of the original three-year lease term. In accordance with relevant accounting guidance the lease is classified as a finance lease. The lease payments and depreciation periods began in March 2025 when the equipment went into service. The implicit interest rate of the lease is currently approximately 3.47% per annum.

***Non-Recurring Engineering Development Costs***

On April 25, 2013, we entered into an Analog Device Development Agreement with an effective date of December 6, 2012 (the "NN1002 Agreement") with Texas Instruments ("TI") pursuant to which TI agreed to integrate our intellectual property into an Application Specific Integrated Circuit ("ASIC"). Under the terms of the NN1002 Agreement, we agreed to pay TI $500,000 of non-recurring engineering costs at the rate of $0.25 per ASIC for each of the first 2,000,000 ASICs sold. As of December 31, 2025, we had made no payments to TI under the NN1002 Agreement.

***At-the-Market Offering Program***

On May 10, 2021, we entered into an At Market Issuance Sales Agreement (the "B. Riley Sales Agreement") with B. Riley Securities, Inc. ("B. Riley Securities") with respect to an "at the market" offering program (the "B. Riley ATM Facility"), under which we may, from time to time, in our sole discretion, issue and sell through B. Riley Securities, acting as sales agent, up to $25 million of shares of our common stock, in any method permitted that is deemed an "at the market" offering as defined in Rule 415 under the Securities Act of 1933, as amended. On May 29, 2024, we terminated the B. Riley Sales Agreement with B. Riley Securities.

On June 4, 2024, we entered into an At The Market Offering Agreement (the "Ladenburg Sales Agreement") with Ladenburg Thalmann & Co. Inc. ("Ladenburg") with respect to an "at the market" offering program (the "Ladenburg ATM Facility"), under which we may, from time to time, in our sole discretion, issue and sell through Ladenburg, acting as agent or principal, up to approximately $10 million of shares of our common stock.

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Pursuant to the Ladenburg Sales Agreement, we may sell the shares through Ladenburg by any method permitted that is deemed an "at the market" offering as defined in Rule 415 under the Securities Act of 1933, as amended. Ladenburg will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the shares from time to time, based upon instructions from us (including any price or size limits or other customary parameters or conditions we may impose). We will pay Ladenburg a commission of 3.0% of the gross sales price per share sold under the Ladenburg Sales Agreement.

We are not obligated to sell any shares under the Ladenburg Sales Agreement. The offering of shares pursuant to the Ladenburg Sales Agreement will terminate upon the earlier to occur of (i) the issuance and sale, through Ladenburg, of all of the shares of our common stock subject to the Ladenburg Sales Agreement and (ii) termination of the Ladenburg Sales Agreement in accordance with its terms.

During the year ended December 31, 2025, we sold no shares under the Ladenburg ATM Facility.

During the year ended December 31, 2024, we sold an aggregate of 1,423,441 shares of our common stock under the Ladenburg ATM Facility with aggregate net proceeds to us of $5.8 million, after payment of commissions to Ladenburg and other expenses of $0.2 million.

***Future Sources of Liquidity***

In the future, we may require sources of capital in addition to cash on hand and our Ladenburg ATM Facility to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek equity investments or debt arrangements. Historically, we have been able to access the capital markets through sales of common stock and warrants to generate liquidity. Our management believes it could raise capital through public or private offerings if needed to provide us with sufficient liquidity.

No assurances can be given, however, that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, results of operations and financial condition. In addition, no assurance can be given that stockholders will approve an increase in the number of our authorized shares of common stock if needed. The issuance of equity securities or securities convertible into equity could dilute the value of shares of our common stock and cause the market price to fall, and the issuance of debt securities could impose restrictive covenants that could impair our ability to engage in certain business transactions.

The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen and the South Korean Won. They are subject to foreign currency exchange rate risk. Any increase or decrease in the exchange rate of the U.S. Dollar compared to the Swedish Krona, Japanese Yen or South Korean Won will impact our future operating results.

***Patent Assignment***

On May 6, 2019, the Company assigned a portfolio of patents to Aequitas Technologies LLC ("Aequitas"), an unrelated third party. The assignment provides the Company the right to share the potential net proceeds generated from possible licensing and monetization program that Aequitas may enter into. Under the terms of the assignment, net proceeds mean gross proceeds less out of pocket expenses and legal fees paid by Aequitas. The Company's share would also be net of the Company's own fees and expenses, including a brokerage fee payable by the Company in connection with the original assignment to Aequitas.

As reflected in publicly available court filings, on June 8, 2020, Aequitas Sub, filed complaints against Apple Inc. ("Apple") (assigned docket number 6:20-cv-00505-ADA), and Samsung Electronics Co., Ltd., and Samsung Electronics America, Inc. (collectively, "Samsung") (assigned docket number 6:20-cv -00507-ADA; see also 6:23-cv-00204-ADA), in the Western District of Texas alleging infringement of two patents, U.S. Patent Nos. 8,095,879 and 8,812,993.

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*U.S. Patent No. 8,095,879*

In November 2020, Samsung and Apple filed a petition for inter partes review of certain challenged claims in U.S. Patent No. 8,095,879, assigned proceeding number IPR2021-00144. As reflected in publicly available records, the U.S. Patent and Trademark Office Patent Trial and Appeal Board ("PTAB") denied the petition in June 2021. Apple and Samsung filed a request for rehearing, which was ultimately granted on December 3, 2021, and inter partes review was instituted. The court case against Apple was subsequently transferred to the Northern District of California in November 2021 and assigned docket number 3:21-cv-08872, which was subsequently stayed pending the PTAB's decision. The case against Samsung in the Western District of Texas was likewise stayed pending PTAB ruling.

Meanwhile, in June 2021, Google LLC ("Google") filed a separate petition with the PTAB seeking inter partes review of certain challenged claims in U.S. Patent No. 8,095,879, assigned proceeding number IPR2021-01041. As reflected in publicly available records, the PTAB granted the petition in January 2022.

The PTAB found in favor of Aequitas Sub and against Apple and Samsung in December 2022 in connection with the inter partes review proceedings, ruling that none of the challenged claims were unpatentable. The PTAB similarly held in favor of Aequitas Sub and against Google in January 2023. Apple and Samsung appealed to the United States Court of Appeals for the Federal Circuit (the "Federal Circuit") in February 2023 (assigned docket number 23-1464, and Google filed its appeal in the Federal Circuit in March 2023 (assigned docket number 23-1638. On July 18, 2024, the Federal Circuit affirmed the PTAB's rulings, found in favor of Aequitas Sub and against Google and Apple/Samsung, and held that none of the challenged claims in U.S. Patent No. 8,095,879 are unpatentable.

As reflected in publicly available court records, on July 14, 2023, the United States District Court for the Western District of Texas entered its final claim constructions in the Samsung case (docket number 6:20-cv-507), and based on those claim constructions, entered judgment in favor of Samsung and against Aequitas Sub. Aequitas Sub filed an appeal with the Federal Circuit in August 2023 (assigned docket number 23-2304), and oral argument was held on June 6, 2024 As reflected on the public court docket, on August 20, 2024, the Federal Circuit issued its written opinion, reversing and remanding the case to the Western District of Texas for further proceedings. Specifically, the Federal Circuit held that claim 1 of the '879 patent was not indefinite. Mandate issued returning the case to the Western District of Texas on September 26, 2024. On November 5, 2024, Samsung filed its Answer to the Complaint. On June 13, 2025, the parties submitted a joint motion to stay all deadlines for thirty (30) days as the parties had reached a "settlement in principle." On June 20, 2025, the Court granted the motion to stay and ordered that all deadlines be stayed until July 21, 2025. On July 17, 2025, the parties submitted a joint motion to extend the stay for an additional thirty days "so that the settlement agreement can be finalized and appropriate dismissal papers submitted." On August 5, 2025, the Court granted the parties request to extend the stay until August 20, 2025. On August 29, 2025, following a settlement between Aequitas Sub and Samsung, the parties submitted a joint motion to vacate the claim construction order and to dismiss the matter with prejudice. On September 2, 2025, the Court granted the motion. As of September 2, 2025, the case in the Western District of Texas is now closed. For additional information regarding the settlement, see "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Gain from Patent Assignment and Broker Fee from Patent Assignment."

The case against Apple remains pending in the United States District Court for the Northern District of California (docket number 21-cv-8872). On November 13, 2024, the Court granted the parties' motion to continue the stay pending resolution of the Samsung case pending in the Western District of Texas (case number 20-cv-00507-ADA) by settlement or final judgment. On September 15, 2025 the Court lifted the stay upon stipulation of the parties. On October 27, 2025, the parties submitted a stipulated scheduling order for the remainder of the case. On December 15, 2025, the Court entered a modified order for scheduling. Among other dates, the Court ordered (i) a close of fact discovery on July 31, 2026, (ii) mediation by December 8, 2026, and (iii) trial by February 22, 2027. The Court also ordered claim construction briefing beginning March 27, 2026 and concluding April 17, 2026. Further, on February 10, 2026, the case was referred to private alternative dispute resolution to be completed by December 8, 2026.

.

*U.S. Patent No. 8,812,993*

Based on information in public records, in November 2020, Samsung and Apple collectively sought inter partes review of certain claims in U.S. Patent No. 8,812,993 (assigned proceeding number IPR2021-00145). In June 2022, the PTAB invalidated U.S. Patent No. 8,812,993, which Aequitas Sub appealed to the Federal Circuit in August 2022 (assigned docket number 22-2134). The Federal Circuit affirmed the PTAB's decision on June 11, 2024.

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Not applicable.

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**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

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| | |
|:---|:---|
| Index to the Consolidated Financial Statements | Page |
| [<u>Report of Independent Registered Public Accounting Firm (PCAOB ID: 173)</u>](#report1) | [F-2](#report1) |
| [<u>Consolidated Balance Sheets as of December 31, 2025 and 2024</u>](#balance) | [F-3](#balance) |
| [<u>Consolidated Statements of Operations for the years ended December 31, 2025 and 2024</u>](#operations) | [F-4](#operations) |
| [<u>Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025 and 2024</u>](#loss) | [F-5](#loss) |
| [<u>Consolidated Statements of Stockholders</u><u>'</u> <u>Equity for the years ended December 31, 2025 and 2024</u>](#equity) | [F-6](#equity) |
| [<u>Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024</u>](#cash) | [F-7](#cash) |
| [<u>Notes to the Consolidated Financial Statements</u>](#notes) | [F-8](#notes) |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Shareholders and the Board of Directors of Neonode Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Neonode Inc. (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Crowe LLP<br>

We have served as the Company's auditor since 2024.

New York, New York

March 18, 2026

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**NEONODE INC.**

**CONSOLIDATED BALANCE SHEETS**

*(In thousands, except share and per share amounts)*

---

| | | |
|:---|:---|:---|
|  | *December 31, 2025* | *December 31, 2024* |
| **ASSETS** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $25358 | $16427 |
| Accounts receivable and unbilled revenues, net | 391 | 732 |
| Contract asset |  | 51 |
| Prepaid expenses and other current assets | 495 | 475 |
| Current assets of discontinued operations | 41 |  |
| Total current assets | 26285 | 17685 |
| Non-current assets: |  |  |
| Property and equipment, net | 145 | 62 |
| Operating lease right-of-use assets, net | 455 | 634 |
| Total non-current assets | 600 | 696 |
| Total assets | $26885 | $18381 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $464 | $229 |
| Accrued payroll and employee benefits | 865 | 760 |
| Accrued expenses | 459 | 404 |
| Contract liabilities | 37 |  |
| Current portion of finance lease obligations | 12 | 2 |
| Current portion of operating lease obligations | 344 | 225 |
| Total current liabilities | 2181 | 1620 |
| Non-current liabilities: |  |  |
| Finance lease obligations, net of current portion | 15 |  |
| Operating lease obligations, net of current portion |  | 319 |
| Total non-current liabilities | 15 | 319 |
| Total liabilities | 2196 | 1939 |
| Commitments and contingencies (Note 8) |  |  |
| Stockholders' equity: |  |  |
| Preferred stock, 1,000,000 shares authorized, with par value of $0.001; no shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively. |  |  |
| Common stock, 25,000,000 shares authorized, with par value of $0.001; 16,782,922 and 16,782,922 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively. | 17 | 17 |
| Additional paid-in capital | 240955 | 240955 |
| Accumulated other comprehensive loss | (696) | (450) |
| Accumulated deficit | (215587) | (224080) |
| Total stockholders' equity | 24689 | 16442 |
| Total liabilities and stockholders' equity | $26885 | $18381 |

---

The accompanying notes are an integral part of these consolidated financial statements.

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-3

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**NEONODE INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

(*In thousands, except per share amounts*)

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Revenues: |  |  |
| License fees | $1822 | $2687 |
| Non-recurring engineering | 240 | 421 |
| Total revenues | 2062 | 3108 |
| Cost of revenues: |  |  |
| Non-recurring engineering | 26 | 116 |
| Total cost of revenues | 26 | 116 |
| Gross margin | 2036 | 2992 |
| Operating expenses: |  |  |
| Research and development | 3779 | 3444 |
| Sales and marketing | 2274 | 2328 |
| General and administrative | 4123 | 3767 |
| Total operating expenses | 10176 | 9539 |
| Gain from patent assignment | 19389 |  |
| Broker fee from patent assignment | (3878) |  |
| Operating income (loss) | 7371 | (6547) |
| Other income, net | 657 | 687 |
| Income (loss) before provision (benefit) for income taxes | 8028 | (5860) |
| Provision (benefit) for income taxes | (9) | 15 |
| Income (loss) from continuing operations | 8037 | (5875) |
| Income (loss) from discontinued operations | 456 | (591) |
| Net income (loss) | $8493 | $(6466) |
| *Income (loss) per common share:* |  |  |
| Basic and diluted income (loss) per share from continuing operations | $0.48 | $(0.37) |
| Basic and diluted income (loss) per share from discontinued operations | 0.03 | (0.04) |
| Basic and diluted net income (loss) per share | $0.51 | $(0.41) |
| Basic and diluted – weighted average number of common shares outstanding | 16783 | 15873 |

---

The accompanying notes are an integral part of these consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-4

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**NEONODE INC.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

(*In thousands*)

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Net income (loss) | $8493 | $(6466) |
| Other comprehensive loss: |  |  |
| Foreign currency translation adjustments | (246) | (54) |
| Total other comprehensive loss | (246) | (54) |
| Comprehensive income (loss) | $8247 | $(6520) |

---

The accompanying notes are an integral part of these consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-5

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**NEONODE INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS**' **EQUITY**

(*In thousands*)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | *Common Stock Shares Issued* | *Common Stock Amount* | *Additional Paid-in Capital* | *Accumulated Other Comprehensive Income (Loss)* | *Accumulated Deficit* | *Total Stockholders' Equity* |
| Balances, January 1, 2024 | 15359 | $15 | $235158 | $(396) | $(217614) | $17163 |
| Issuance of shares for cash, net of offering costs | 1424 | 2 | 5794 |  |  | 5796 |
| Stock-based compensation | *-* |  | 3 |  |  | 3 |
| Foreign currency translation adjustment | *-* |  |  | (54) |  | (54) |
| Net loss | *-* |  |  |  | (6466) | (6466) |
| Balances, December 31, 2024 | 16783 | $17 | $240955 | $(450) | $(224080) | $16442 |
| Foreign currency translation adjustment | *-* |  |  | (246) |  | (246) |
| Net income | *-* |  |  |  | 8493 | 8493 |
| Balances, December 31, 2025 | 16783 | $17 | $240955 | $(696) | $(215587) | $24689 |

---

The accompanying notes are an integral part of these consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-6

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**NEONODE INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(*In thousands*)

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Cash flows from operating activities: |  |  |
| Net income (loss) | $8493 | $(6466) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Stock-based compensation expense |  | 3 |
| Bad debt expense |  | 172 |
| Recoveries of bad debt | (140) |  |
| Gain from patent assignment | (19389) |  |
| Loss on disposal of assets | 2 | 18 |
| Depreciation and amortization | 50 | 58 |
| Amortization of operating lease right-of-use assets | 286 | 79 |
| Inventory impairment loss |  | 357 |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable and unbilled revenues | 494 | (51) |
| Inventory |  | 223 |
| Prepaid expenses and other current assets | 44 | 382 |
| Accounts payable, accrued payroll and employee benefits, and accrued expenses | 157 | (213) |
| Contract liabilities | 37 | (10) |
| Operating lease obligations | (288) | (144) |
| Net cash used in operating activities | (10254) | (5592) |
| Cash flows from investing activities: |  |  |
| Purchase of property and equipment | (91) | (37) |
| Proceeds from patent assignment | 19389 |  |
| Proceeds from sale of property and equipment |  | 189 |
| Net cash provided by investing activities | 19298 | 152 |
| Cash flows from financing activities: |  |  |
| Proceeds from issuance of common stock, net of offering costs |  | 5796 |
| Principal payments on finance lease obligations | (11) | (17) |
| Net cash provided by (used in) financing activities | (11) | 5779 |
| Effect of exchange rate changes on cash and cash equivalents | (102) | (67) |
| Net change in cash and cash equivalents | 8931 | 272 |
| Cash and cash equivalents at beginning of period | 16427 | 16155 |
| Cash and cash equivalents at end of period | $25358 | $16427 |
| *Supplemental disclosure of cash flow information:* |  |  |
| Cash paid for interest | $- | $1 |
| Cash paid (received) for income taxes | $(9) | $15 |
| *Supplemental disclosure of non-cash activities:* |  |  |
| Property and equipment obtained in exchange for finance lease obligations | $35 | $- |
| Right-of-use asset obtained in exchange for lease obligations | $- | $668 |

---

The accompanying notes are an integral part of these consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-7

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**NEONODE INC.**

**Notes to the Consolidated Financial Statements**

***1.* Organization and Summary of Significant Accounting Policies**

***Basis of Presentation and Preparation***

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include the accounts of Neonode Inc. and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires making estimates and judgments that affect, at the date of the financial statements, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Significant estimates and judgments include, but are *not* limited to: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, the standalone selling price of performance obligations, and transaction prices and assessing transfer of control; provisions for uncollectible receivables; for leases, determining whether a contract contains a lease, allocating consideration between lease and non-lease components, determining incremental borrowing rates, and identifying reassessment events, such as modifications; the valuation allowance related to our deferred tax assets; and the fair value of options issued for stock-based compensation. Actual results could differ from these estimates and judgments.

***Recently Issued Accounting Pronouncement Adopted***

In *December 2023,* the Financial Accounting Standards Board ("FASB") issued ASU *2023*-*09, Income Taxes (Topic *740*): Improvements to Income Tax Disclosures* ("ASU *2023*-*09"*), which updates several disclosures regarding the accounting for income taxes. ASU *2023*-*09* is effective for public business entities for fiscal years beginning after *December 15, 2024,* with early adoption permitted. We have adopted ASU *2023*-*09* for the fiscal year ended *December 31, 2025,* using a prospective approach. Prior period disclosures have *not* been adjusted to reflect the new disclosure requirements. The adoption did *not* have a material impact on our consolidated financial statements. See [Note *11* Income Taxes](#Income_Taxes) in the accompanying notes to the consolidated financial statements for further detail.

***Recently Issued Accounting Pronouncements Pending Adoption***

In *December 2025,* the FASB issued ASU *2025*-*12, Codification Improvements* ("ASU *2025*-*12"*). ASU *2025*-*12* makes incremental improvements to the Accounting Standards Codification and U.S. GAAP. This guidance is effective for annual reporting periods beginning after *December 15, 2026* and interim reporting periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

In *December 2025,* the FASB issued ASU *2025*-*11, Interim Reporting (Topic *270*): Narrow-Scope Improvements* ("ASU *2025*-*11"*). The amendments clarify and reorganize existing interim reporting guidance, including the scope of Topic *270* and interim disclosure requirements, and introduce a disclosure principle requiring entities to disclose material events or changes occurring since the most recent annual reporting period. ASU *2025*-*11* is effective for interim reporting periods within annual reporting periods beginning after *December 15, 2027.* Early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

In *September 2025,* the FASB issued ASU *2025*-*06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic *350*-*40*): Targeted Improvements to the Accounting for Internal-Use Software* ("ASU *2025*-*06"*), which aims to modernize financial reporting by updating how entities recognize and disclose costs incurred for software developed for internal use. ASU *2025*-*06* is effective for fiscal years beginning after *December 15, 2027,* including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

In *July 2025,* the FASB issued ASU *2025*-*05, Financial Instruments – Credit Losses (Topic *326*): Measurement of Credit Losses for Accounts Receivable and Contract Assets* ("ASU *2025*-*05"*), which amends ASC *326*-*20* to provide a practical expedient for all entities when estimating expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC *606.* The practical expedient assumes that current conditions as of the balance sheet date do *not* change for the remaining life of the asset. ASU *2025*-*05* is effective for fiscal years beginning after *December 15, 2025* and interim periods within those fiscal years, with early adoption permitted, and should be applied on a prospective basis. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

In *November 2024,* the FASB issued ASU *2024*-*03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic *220*-*40*): Disaggregation of Income Statement Expenses*, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU *2024*-*03* is effective for fiscal years beginning after *December 15, 2026,* and for interim periods beginning after *December 15, 2027,* with early adoption permitted. We are currently evaluating the impact of adopting ASU *2024*-*03.*

***Foreign Currency Translation and Transaction Gains and Losses***

The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen and the South Korean Won. The translation from Swedish Krona, Japanese Yen or South Korean Won to U.S. Dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted-average exchange rate during the period. Gains or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Foreign currency translation gains (losses) were $(246,000) and $(54,000) during the years ended *December 31, 2025* and *2024*, respectively. Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $67,000 and $(1,000) during the years ended *December 31, 2025* and *2024*, respectively.

***Liquidity***

We have incurred significant operating losses and negative cash flows from operations since our inception. The Company incurred net income for combined continuing and discontinued operations of approximately $8.5 million for the year ended *December 31, 2025* and net loss of approximately $6.5 million for the year ended *December 31, 2024*, and had an accumulated deficit of approximately $215.6 million and $224.1 million as of *December 31, 2025* and *2024*, respectively. In addition, operating activities used cash of approximately $10.3 million and $5.6 million for the years ended *December 31, 2025* and *2024*, respectively.

The consolidated financial statements have been prepared on a going concern basis, which contemplates continuity of operations and the realization of assets and the repayment of liabilities in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *8*

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Management has prepared an operating plan and believes that the Company has sufficient cash to meet its obligations as they come due for a year from the date the consolidated financial statements were issued.

***Accounts Receivable and Credit Losses***

Accounts receivable is stated at net realizable value. We estimate and record a provision for expected credit losses related to our financial instruments, including our trade receivables. We consider historical collection rates, the current financial status of our customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses.

Further, we consider macroeconomic factors and the status of the technology industry to estimate if there are current expected credit losses within our trade receivables based on the trends and our expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default.

The accounts receivable balance on our consolidated balance sheet as of *December 31, 2025* was $0.4 million, and did not include any allowances. The accounts receivable balance on our consolidated balance sheet as of *December 31, 2024* was $0.7 million, and did not include any allowances.

**Concentration of Credit and Business Risks**

Our customers are primarily located in North America, Europe and Asia.

As of *December 31, 2025*, four of our customers represented approximately 95.4% of our consolidated accounts receivable and unbilled revenues.

As of *December 31, 2024*, four of our customers represented approximately 80.9% of our consolidated accounts receivable and unbilled revenues.

Customers who accounted for *10%* or more of our revenues during the year ended *December 31, 2025* are as follows.

● Seiko Epson – 34.3%

● Alps Alpine – 19.4%

● Hewlett-Packard – 19.0%

● Commercial Vehicle OEM – 14.6%

Customers who accounted for *10%* or more of our revenues during the year ended *December 31, 2024* are as follows.

● Seiko Epson – 27.3%

● Alps Alpine – 20.7%

● Hewlett-Packard – 20.4%

● Commercial Vehicle OEM – 11.8%

F- *9*

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***Cash and Cash Equivalents***

The Company considers all highly liquid investments with original maturities of *three* months or less to be cash equivalents.

***Property and Equipment***

Property and equipment are stated at cost less accumulated depreciation. Depreciation on property and equipment is recognized on a straight-line basis.

***Research and Development***

Research and development ("R&D") costs are expensed as incurred. R&D costs consist primarily of personnel related costs in addition to external consultancy costs such as testing, certifying and measurements.

***Income Taxes***

We recognize deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the consolidated financial statements or tax returns. We estimate income taxes based on rates in effect in each of the jurisdictions in which we operate. Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The realization of deferred tax assets is based on historical tax positions and expectations about future taxable income. Valuation allowances are recorded against net deferred tax assets when, in our opinion, realization is uncertain based on the "more likely than *not"* criteria of the accounting guidance.

Based on the uncertainty of future pre-tax income, we fully reserved our net deferred tax assets as of *December 31, 2025* and *2024*. In the event we were to determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase income in the period such determination was made. The provision (benefit) for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period.

We follow U.S. GAAP related to accounting for uncertainty in income taxes, which prescribes a model for the recognition, measurement and presentation of uncertainty in income taxes. As a result, we did *not* recognize a liability for unrecognized tax benefits. As of *December 31, 2025* and *2024*, we had no unrecognized tax benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *10*

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***Fair Value of Financial Instruments***

We disclose the estimated fair values for all financial instruments for which it is practicable to estimate fair value. The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable are deemed to approximate fair value due to their short maturities.

Accounting guidance defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements.

The *three* levels of the fair value hierarchy are described as follows:

Level *1:* Applies to assets or liabilities for which there are observable quoted prices in active markets for identical assets and liabilities.

Level *2:* Applies to assets or liabilities for which there are inputs other than quoted prices included in Level *1* that are directly or indirectly observable.

Level *3:* Applies to assets or liabilities for which inputs are unobservable, and those inputs that are significant to the measurement of the fair value of the assets or liabilities.

There were no assets or liabilities recorded at fair value on a recurring basis for the years ended *December 31, 2025* and *2024*.

***Revenue***

We earn revenues from licensing of our intellectual property, licensing of our software and by performing engineering services. The timing of revenue recognition and the amount of revenue actually recognized in each case depends upon a variety of factors, including the specific terms of each arrangement and the nature of our performance obligations.

*License Fees*

We earn revenue from licensing our internally developed intellectual property ("IP") and licensing of our internally developed software. We enter into IP licensing agreements that generally provide licensees with the right to incorporate our IP components in their products, with terms and conditions that vary by licensee. Fees under these agreements *may* include technology access fees payable upfront and royalties payable to us following the distribution by our licensees of products incorporating the licensed technology. The license for our IP has standalone value and can be used by the licensee without maintenance and support.

For technology license arrangements that do *not* require significant modification or customization of the underlying technology, we recognize technology license revenue when the license is made available to the customer, and the customer has a right to use that license. We recognize royalties following the distribution by our licensees of products incorporating the licensed technology. At the end of each reporting period, we record unbilled license fees, using prior royalty revenue data by customer to make estimates of those royalties.

We also earn license fee revenue by providing our customers with development licenses for our software tools related to the MultiSensing platform. We recognize revenue ratably over the contract term beginning on the commencement date of each contract, which is the date we make the software available to our customers. Our development license contracts with customers typically include a fixed amount of consideration and are generally non-cancellable and without any refund-type provisions. We typically invoice our customers annually in advance for our development licenses upon execution of the initial contract or subsequent renewal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *11*

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*Non-Recurring Engineering*

For technology license that require modification or customization of the underlying technology to adapt the technology to customer use, we determine whether the technology license and required engineering consulting services represent separate performance obligations. We perform our analysis on a contract-by-contract basis. If there are separate performance obligations, we determine the standalone selling price ("SSP") of each separate performance obligation to properly recognize revenue as each performance obligation is satisfied. We provide engineering consulting services to our customers under a signed Statement of Work ("SOW"). Deliverables and payment terms are specified in each SOW. We charge an hourly rate or a fixed fee for engineering services. We recognize revenues for hourly rate services as engineering services specified in contracts are completed and accepted by our customers. Revenues for fixed price services are generally recognized over time applying input methods to estimate progress to completion. We believe that recognizing non-recurring engineering services revenues as progress towards completion of engineering services and customer acceptance of those services occurs best reflects the economics of those transactions, because engineering services as tracked in our systems correspond directly with the value to our customers of our performance completed to date. Hours performed for each engineering project are tracked and reflect progress made on each project and are charged at a consistent hourly rate. Any upfront payments we receive for future non-recurring engineering services are recorded as unearned revenue until that revenue is earned.

Revenues from non-recurring engineering contracts that are short-term in nature are recorded when those services are complete and accepted by customers.

The following tables present the net revenues distribution by geographical area and market (in thousands, except percentages):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2025* | *2024* | *2024* |
|  | *Amount* | *Percentage* | *Amount* | *Percentage* |
| **North America:** |  |  |  |  |
| Net revenues from IT & Industrial | $425 | 100.0% | $763 | 100.0% |
|  | $425 | 100.0% | $763 | 100.0% |
| **Asia Pacific:** |  |  |  |  |
| Net revenues from Automotive | $394 | 30.4% | $732 | 39.4% |
| Net revenues from IT & Industrial | 900 | 69.6% | 1127 | 60.6% |
|  | $1294 | 100.0% | $1859 | 100.0% |
| **Europe, Middle East and Africa:** |  |  |  |  |
| Net revenues from Automotive | $343 | 100.0% | $486 | 100.0% |
|  | $343 | 100.0% | $486 | 100.0% |

---

*Contract Balances*

Timing of revenue recognition *may* differ from the timing of invoice and receipt of consideration. We record a receivable or unbilled revenue when we have an unconditional right to receive consideration from customers. Contract assets represent revenue recognized for performance to date when the right to consideration is conditional on something other than the passage of time. We record contract liabilities when we receive prepayments or upfront payments ahead of performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *12*

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The following table presents our accounts receivable, net, contract assets, and contract liabilities (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | *December 31,* | *December 31,* | *December 31,* |
|  | *2025* | *2024* | *2023* |
| Accounts receivable and unbilled revenues, net | $391 | $732 | $652 |
| Contract assets |  | 51 |  |
| Contract liabilities (deferred revenues) | 37 |  | 2 |

---

Payment terms and conditions vary by the type of contract; however, payments generally occur *30*-*60* days after invoicing for license fees. Where revenue recognition timing differs from invoice timing, we have determined that our contracts do *not* include a significant financing component. Applying the practical expedient in Topic *606,* the Company does *not* assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is *one* year or less. Our intent is to provide our customers with consistent invoicing terms for the convenience of our customers, *not* to provide financing to our customers.

*Contract Liabilities*

Contract liabilities (deferred revenues) consist primarily of prepayments for license fees, and other services that we have been paid in advance. We earn the revenue when we transfer control of the service. Deferred revenues *may* also include upfront payments for consulting services to be performed in the future, such as non-recurring engineering services.

The following table presents our deferred revenues by source:

---

| | | | |
|:---|:---|:---|:---|
|  | *December 31,* | *December 31,* | *December 31,* |
|  | *2025* | *2024* | *2023* |
| Deferred revenues license fees | $- | $- | $2 |
| Deferred revenues non-recurring engineering | 37 |  |  |
|  | $37 | $- | $2 |

---

Deferred revenues were $37,000 as of *December 31, 2025*. The Company recognized revenues of approximately zero and $2,000, for the years ended *December 31, 2025* and *2024*, respectively, related to contract liabilities outstanding at the beginning of the year.

*Costs to Obtain Contracts*

We record the incremental costs of obtaining a contract with a customer as a contract asset if we expect the benefit of those costs to cover a period greater than *one* year. We currently have *no* incremental costs that must be capitalized.

We expense as incurred costs of obtaining a contract when the amortization period of those costs would have been less than or equal to *one* year.

***2.*** **Discontinued Operations**

During the *fourth* quarter of *2023* the Company decided to phase out the product business and as a consequence terminate production at the Pronode Technologies AB facilities in Kungsbacka, Sweden. Subsequently, we commenced the phase out of our TSM product business during the *first* quarter of *2024* through licensing of the TSM technology to strategic partners or outsourcing. In *May 2024,* we stopped producing TSMs and started to shut down the factory. The facility lease terminated as of *September 30, 2024* and was *not* renewed.

The Company concluded that the termination of TSM manufacturing met the criteria for discontinued operations. As a result, this business has been reclassified to discontinued operations in these consolidated financial statements for all periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *13*

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**Assets and Liabilities of Discontinued Operations**

Assets and liabilities of discontinued operations are presented separately in the consolidated balance sheets for all periods presented. On *December 31, 2025* and *December 31, 2024*, these balances consisted of assets and liabilities of the Company's Products business.

The following table presents a reconciliation of the carrying amounts of the major classes of these assets and liabilities to the assets and liabilities of discontinued operations as presented on the Company's consolidated balance sheets (in thousands):

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| **ASSETS OF DISCONTINUED OPERATIONS** |  |  |
| Current assets of discontinued operations: |  |  |
| Accounts receivable and unbilled revenues, net | $41 | $- |
| Total current assets of discontinued operations | 41 |  |
| Total assets of discontinued operations | $41 | $- |

---

**Loss from Discontinued Operations**

Discontinued operations for the years ended *December 31, 2025* and *2024*, respectively, consist of results from the Company's products business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *14*

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The following table provides details about the major classes of line items constituting "Income (loss) from discontinued operations" as presented on the Company's consolidated statements of operations (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Revenues: |  |  |
| Products | $361 | $1171 |
| Total revenues | 361 | 1171 |
| Cost of revenues: |  |  |
| Products | 48 | 989 |
| Total cost of revenues | 48 | 989 |
| Gross margin | 313 | 182 |
| Operating expenses: |  |  |
| Sales and marketing | (143) | 165 |
| General and administrative |  | 590 |
| Total operating expenses | (143) | 755 |
| Operating income (loss) | 456 | (573) |
| Other income (expense), net |  | (18) |
| Loss before provision for income taxes | 456 | (591) |
| Income (loss) from discontinued operations | $456 | $(591) |

---

**Cash Flows Information**

The following table presents cash flow information for discontinued operations:

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Depreciation and amortization | $- | $19 |
| Amortization of operating lease ROU assets |  | 52 |
| Inventory impairment loss |  | 357 |
| Bad debt expense |  | 172 |
| Proceeds from sale of property and equipment |  | 190 |

---

***3.*** **Prepaid Expenses and Other Current Assets**

Prepaid expenses and other current assets consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Prepaid insurance | $89 | $93 |
| Prepaid rent | 7 |  |
| VAT receivable | 218 | 172 |
| Other | 181 | 210 |
| Prepaid expenses and other current assets | $495 | $475 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *15*

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***4.*** **Property and Equipment**

Property and equipment, net consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Computers, software, furniture and fixtures | $286 | $277 |
| Equipment and vehicles | 129 | 21 |
| Less accumulated depreciation and amortization | (270) | (236) |
| Property and equipment, net | $145 | $62 |

---

Depreciation and amortization expense was $50,000 and $39,000 for the years ended *December 31, 2025* and *2024*, respectively.

***5.*** **Accrued Expenses**

Accrued expenses consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Accrued audit fees | $6 | $74 |
| Accrued other compensations | 205 | 107 |
| Accrued bonus costs | 136 | 172 |
| Accrued consulting fees and other | 112 | 51 |
| Total accrued expenses | $459 | $404 |

---

***6.*** **Stockholders**' **Equity** 

***Preferred Stock***

As of *December 31, 2025* and *2024*, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 1,000,000 shares of preferred stock, par value $0.001 per share.

There were *no* transactions in our preferred stock during the years ended *December 31, 2025* and *2024*. No shares of preferred stock were issued and outstanding as of *December 31, 2025* and *2024*.

***Common Stock***

As of *December 31, 2025* and *2024*, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 25,000,000 shares of common stock, par value $0.001 per share.

During the year ended *December 31, 2025*, we sold no shares under the Ladenburg ATM Facility. During the year ended *December 31, 2024*, we sold an aggregate of 1,423,441 shares of our common stock under the Ladenburg ATM Facility with aggregate net proceeds to us of $5.8 million, after payment of commissions to Ladenburg and other expenses of $0.2 million.

***7.*** **Stock-Based Compensation** 

We have adopted equity incentive plans for which stock options and restricted stock awards are available for grants to employees, consultants and directors. Except for certain options granted to certain Swedish employees, all employee, consultant and director stock options granted under our stock option plans have an exercise price equal to the market value of the underlying common stock on the grant date. There is *no* vesting provisions tied to performance conditions for any options. Vesting for all outstanding option grants is based solely on continued service as an employee, consultant or director. All of our outstanding stock options and restricted stock awards are classified as equity instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *16*

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***Stock Options and Long-Term Incentive Plan***

During the year ended *December 31, 2020,* our stockholders approved the *2020* Plan which replaced our *2015* Stock Incentive Plan (the *"2015* Plan"), which in turn replaced our Neonode Inc. *2006* Equity Incentive Plan (the *"2006* Plan"). There are no awards outstanding under the *2006* Plan and *2015* Plan. Under the *2020* Plan, 750,000 shares of common stock have been reserved for awards, including non-qualified stock option grants and restricted stock grants to officers, employees, non-employee directors and consultants. The terms of the awards granted under the *2020* Plan are set by our compensation committee at its discretion.

In *2020,* we established the *2020* LTIP to provide eligible persons with the opportunity to acquire an equity interest, or otherwise increase their equity interest, in the Company as an incentive for them to remain in the service of the Company. Through the *2020* LTIP, eligible employees of Neonode *may* waive between 50% to 67% of future unearned bonuses that *may* be awarded to them under the Company's annual bonus arrangement in exchange for the grant of shares of the Company's common stock.

As of *December 31, 2025* and *2024* no awards were outstanding under either of the plans.

There has been no activity under the stock option plans during the years ended *December 31, 2025* and *2024*.

Stock options granted under the *2006, 2015* and *2020* Plans are exercisable over a maximum term of 10 years from the date of grant, vest in various installments over a one to four-year period and have exercise prices reflecting the market value of the shares of common stock on the date of grant.

***8.*** **Commitments and Contingencies**

***Legal***

The Company is subject to legal proceedings and claims that *may* arise in the ordinary course of business. The Company is *not* aware of any pending or threatened litigation matters at this time that would have a material impact on the operations of the Company.

***9.*** **Leases**

The Company has leases mainly consisting of the corporate office. The lease had an original lease term of two years and is extended on a yearly basis unless written notice is provided nine months prior to the expiration date. Future renewal options that are *not* likely to be executed as of the consolidated balance sheet date are excluded from right-of-use assets and related lease liabilities. The lease is automatically renewed at a cost increase of 2% on an annual basis, unless we provide written notice nine months prior to the respective expiration dates.

Operating lease right of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has entered into various short-term operating leases with an initial term of *twelve* months or less. These leases are *not* recorded on the Company's Consolidated Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term. Because the rate implicit in each lease is *not* readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. For finance leases, the implicit rate is used, since it is readily available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *17*

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The components of lease expense were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Finance lease cost: |  |  |
| Amortization of leased assets | $19 | $6 |
| Interest on leased liabilities | 1 | 1 |
| Operating lease cost | 400 | 31 |
| Short-term lease cost | 83 | 418 |
| Total lease cost | $503 | $456 |

---

The Company made cash payments regarding operating leases of $385,000 and $27,000 for the years ended *December 31, 2025* and *2024*, respectively. The Company made cash payments regarding finance leases of $25,000 and $18,000 for the years ended *December 31, 2025* and *2024*, respectively.

The following table shows right-of-use assets and lease liabilities (in thousands):

---

| | | |
|:---|:---|:---|
|  | *December 31,* | *December 31,* |
|  | *2025* | *2024* |
| Right-of-use assets: |  |  |
| Operating leases | $455 | $634 |
| Finance leases | 54 | 21 |
| Total right-of-use assets | $509 | $655 |
| Lease liabilities: |  |  |
| Current portion of operating lease obligations | $344 | $225 |
| Operating lease obligations, net of current portion |  | 319 |
| Current portion of finance lease obligations | 12 | 2 |
| Finance lease obligations, net of current portion | 15 |  |
| Total lease liabilities | $371 | $546 |

---

Lease liability maturities are as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | *Operating Leases* | *Finance Leases* | *Total* |
| 2026 | $354 | $13 | $367 |
| 2027 |  | 13 | 13 |
| 2028 |  | 2 | 2 |
| Total | $354 | $28 | $382 |
| Less: Imputed interest | (10) | (1) | (11) |
| Total lease liabilities | $344 | $27 | $371 |
| Lease liabilities, current | $344 | $12 | $356 |
| Lease liabilities, non-current |  | 15 | 15 |
| Total lease liabilities | $344 | $27 | $371 |

---

The weighted-average remaining lease term related to the Company's operating lease liabilities as of *December 31, 2025* and *December 31, 2024* was 1.0 years and 1.9 years, respectively. The discount rate related to the Company's operating lease liabilities as of *December 31, 2025* and *December 31, 2024* was 5.0% for each of the years.

The weighted-average remaining lease term related to the Company's finance lease liabilities as of *December 31, 2025* and *December 31, 2024* was 2.2 years and 0.2 years, respectively. The discount rate related to the Company's operating lease liabilities as of *December 31, 2025* and *December 31, 2024* was 3.5% and 3.0%, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *18*

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***10.*** **Segment Information**

The Company operates as one operating segment. Our chief operating decision maker ("CODM") is our Chief Executive Officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated operating loss and net loss to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the allocation of budget between cost of revenues, research and development, sales and marketing, and general and administrative expenses.

The following table presents key financial information with respect to the Company's single operating segment (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Revenues | $2062 | $3108 |
| Costs and expenses<sup>(a)</sup>: |  |  |
| Cost of revenues | 26 | 116 |
| Product R&D | 195 | 151 |
| General and administrative, including rent | 1138 | 1297 |
| Payroll and related | 6736 | 6332 |
| Professional fees and IP | 1651 | 1351 |
| Marketing and travel | 429 | 483 |
| Total costs and expenses | 10175 | 9730 |
| Other segment items<sup>(b)</sup> | 15484 | 75 |
| Other income, net | 657 | 687 |
| Income (loss) before provision (benefit) for income taxes | 8028 | (5860) |
| Provision (benefit) for income taxes | (9) | 15 |
| Income (loss) from continuing operations | $8037 | $(5875) |

---

*(a)* *The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision-maker.*

*(b)* *Other segment items primarily include net proceeds from patent settlement, depreciation and amortization, payroll and related - re-allocated to cost of revenues, and stock options expense.*

The following table presents the long-lived assets property and equipment and right-of-use assets by geographic area (in thousands):

---

| | | |
|:---|:---|:---|
|  | *December 31,* | *December 31,* |
|  | *2025* | *2024* |
| United States | $72 | $- |
| Sweden | 528 | 696 |
| Total | $600 | $696 |

---

We report revenues from external customers based on the country where the customer is located. The following table presents net revenues by country (in thousands, except percentages):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2025* | *2024* | *2024* |
|  | *Amount* | *Percentage* | *Amount* | *Percentage* |
| Japan | $1276 | 62.0% | $1731 | 55.8% |
| Sweden | 300 | 14.5% | 365 | 11.7% |
| Germany | 42 | 2.0% | 116 | 3.7% |
| China | 16 | 0.8% | 97 | 3.1% |
| South Korea | 1 | -% | 31 | 1.0% |
| Other | 2 | 0.1% | 5 | 0.2% |
|  | $1637 | 79.4% | $2345 | 75.5% |
| United States | 425 | 20.6% | 763 | 24.5% |
| Total | $2062 | 100.0% | $3108 | 100.0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *19*

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***11.*** **Income Taxes**

Income (loss) from continuing operations before provision (benefit) for income taxes was distributed geographically as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Domestic | $8263 | $(5888) |
| Foreign | (235) | 28 |
| Total | $8028 | $(5860) |

---

The provision (benefit) for income taxes from continuing operations is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Current |  |  |
| Federal | $- | $- |
| State |  |  |
| Foreign | (9) | 15 |
| Total current expense (benefit) | (9) | 15 |
| Deferred |  |  |
| Federal | 2393 | (784) |
| State |  | 99 |
| Foreign | (623) | 23 |
| Change in valuation allowance | (1770) | 662 |
| Total deferred expense |  |  |
| Total provision (benefit) for income taxes | $(9) | $15 |

---

Pursuant to the disclosure requirements of ASU *2023*-*09,* the differences between our effective income tax rate from continuing operations and the U.S. federal statutory income tax rate for the year ended *December 31, 2025,* are as follows (in thousands, except percentages):

---

| | | |
|:---|:---|:---|
|  | *Year ended December 31,* | *Year ended December 31,* |
|  | *2025* | *2025* |
|  | *Dollars* | *Percent* |
| US federal statutory tax rate | $1686 | 21.0% |
| State & local income taxes, net of federal effect<sup>(a)</sup> |  | -% |
| Foreign tax effects |  |  |
| &nbsp;&nbsp;&nbsp; Sweden |  |  |
| Return to provision adjustment | (572) | (7.1)% |
| Changes in valuation allowance | 529 | 6.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 6 | 0.1% |
| &nbsp;&nbsp;&nbsp; Other Jurisdictions | (17) | (0.2)% |
| Changes in tax laws or rates in current period |  | -% |
| Cross border tax laws |  |  |
| &nbsp;&nbsp;&nbsp; Global Intangible Low-Taxed Income | 640 | 8.0% |
| Tax credits |  | -% |
| Changes in valuation allowance | (2298) | (28.6)% |
| Nontaxable or nondeductible items | 17 | 0.2% |
| Changes in unrecognized tax benefits |  | -% |
| Effective tax rate | $(9) | (0.1)% |

---

*(a)* *The state that makes up the majority of the state & local income taxes category is California.*

The differences between our effective income tax rate and the U.S. federal statutory income tax rate for continuing operations for the year ended *December 31, 2024,* are as follows:

---

| | |
|:---|:---|
|  | Year ended December 31, |
|  | 2024 |
| Amounts at statutory tax rates | 21.0% |
| Foreign losses taxed at different rates | (2.0)% |
| Stock-based compensation | -% |
| GILTI inclusion | (8.0)% |
| Other | -% |
| Total | 11.0% |
| Valuation allowance | (11.0)% |
| Effective tax rate | -% |

---

Significant components of the deferred tax asset balances are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
|  | *2025* | *2024* |
| Deferred tax assets: |  |  |
| Accruals | $- | $- |
| Net operating losses | 20274 | 22124 |
| Gross deferred tax assets | 20274 | 22124 |
| Valuation allowance | (20244) | (22108) |
| Total deferred tax assets | 30 | 16 |
| Deferred tax liabilities: |  |  |
| Basis difference in fixed assets | (15) |  |
| Accruals | (15) | (16) |
| Net deferred tax assets | $- | $- |

---

Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU *2023*-*09* for the year ended *December 31, 2025* is as follows (in thousands):

---

| | |
|:---|:---|
|  | *Year ended December 31,* |
|  | *2025* |
| Federal | $- |
| State |  |
| Foreign |  |
| Germany | (10) |
| Other | 1 |
| Cash paid (received) for income taxes, net of refunds received | $(9) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *20*

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Valuation allowances are recorded to offset certain deferred tax assets due to management's uncertainty of realizing the benefits of these items. Management applies a full valuation allowance for the accumulated losses of Neonode Inc., and its subsidiaries, since it is *not* determinable using the "more likely than *not"* criteria that there will be any future benefit of our deferred tax assets. This is mainly due to our history of operating losses. As of *December 31, 2025,* we had federal, state and foreign net operating losses of $73.2 million, $18.7 million and $17.5 million, respectively. Of the total federal loss carryforward, approximately $47.0 million will begin to expire in *2031* and the remainder do *not* expire. The California loss carryforward will begin to expire in *2030.* The foreign loss carryforward, which is generated in Sweden, does *not* expire.

Utilization of the net operating loss and tax credit carryforwards is subject to an annual limitation due to the ownership percentage change limitations provided by Section *382* of the Internal Revenue Code and similar state provisions. The annual limitation *may* result in the expiration of the net operating losses and tax credit carryforwards before utilization.

We follow the provisions of accounting guidance which includes a *two*-step approach to recognizing, derecognizing and measuring uncertain tax positions. There were no unrecognized tax benefits for the years ended *December 31, 2025* and *2024.*

We follow the policy to classify accrued interest and penalties as part of the accrued tax liability in the provision for income taxes. For the years ended *December 31, 2025* and *2024* we did not recognize any interest or penalties related to unrecognized tax benefits.

As of *December 31, 2025,* we had no uncertain tax positions that would be reduced as a result of a lapse of the applicable statute of limitations.

We file income tax returns in the U.S. federal jurisdiction, California, Sweden, and Japan. The 2008 through *2024* tax years are open and *may* be subject to potential examination in *one* or more jurisdictions. We are *not* currently under any federal, state or foreign income tax examinations.

***12.*** **Employee Benefit Plans** 

We participate in a number of individual defined contribution pension plans for our employees in Sweden. We contribute between 4.5% and 30% of the employee's annual salary to these pension plans depending on age and salary level. Contributions relating to these defined contribution plans for the years ended *December 31, 2025* and *2024* were $533,000 and $542,000, respectively. We match U.S. employee contributions to a *401*(K) retirement plan up to a maximum of *six* percent (6%) of an employee's annual salary. Contributions relating to the matching *401*(K) contributions for the years ended *December 31, 2025* and *2024* were $6,000 and $6,000, respectively. In Taiwan, we contribute *six* percent (6%) of the employee's annual salary to a pension fund which agrees with Taiwan's Labor Pension Act. Contributions relating to the Taiwanese pension fund for the years ended *December 31, 2025* and *2024* were $3,000 and $3,000, respectively.

***13.*** **Net Loss Per Share**

Basic net loss per common share for the years ended *December 31, 2025* and *2024* was computed by dividing the net loss attributable to common shareholders of Neonode Inc. for the relevant period by the weighted average number of shares of common stock outstanding during the year. Diluted loss per common share is computed by dividing net loss attributable to common shareholders of Neonode Inc. for the relevant period by the weighted average number of shares of common stock and common stock equivalents outstanding during the year.

The Company had no potential common stock equivalents as of *December 31, 2025* or *2024*.

---

| | | |
|:---|:---|:---|
|  | *Years ended December 31,* | *Years ended December 31,* |
| *(in thousands, except per share amounts)* | *2025* | *2024* |
| **BASIC AND DILUTED** |  |  |
| Weighted average number of common shares outstanding | 16783 | 15873 |
| Income (loss) from continuing operations | $8037 | $(5875) |
| Income (loss) from discontinued operations | 456 | (591) |
| Net income (loss) | $8493 | $(6466) |
| Income (loss) per share from continuing operations - basic and diluted | $0.48 | $(0.37) |
| Income (loss) per share from discontinued operations - basic and diluted | 0.03 | (0.04) |
| Net income (loss) per share - basic and diluted | $0.51 | $(0.41) |

---

***14.*** **Subsequent Events**

*No* subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *21*

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**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

None.

**ITEM 9A. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

Under the supervision of and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2025. Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were not effective at the reasonable assurance level as of December 31, 2025 due to material weaknesses in our internal control over financing reporting described below.

***Material Weaknesses***

We identified material weaknesses in the design and operation of our internal controls over financial reporting in the "Control Activities" component of the Committee of Sponsoring Organizations (COSO) framework:

We did not maintain information technology general controls, including user access, change management, and computer operation controls, to support the effective operation of financially significant systems.

We identified system limitations that do not facilitate proper segregation of duties within multiple systems and a lack of mitigating business process level controls to address the risk of management override of controls over the preparation and review of manual journal entries and in key accounting processes.

There are lack of sufficient controls to prevent the risk of material misstatements in the income tax calculations and related disclosures.

While neither of the deficiencies resulted in any material misstatements of our consolidated interim or annual financial statements, they do represent material weaknesses in our internal control over financial reporting.

***Remediation Efforts to Address the Material Weaknesses***

We are committed to maintaining a strong internal control environment and will implement corrective actions to support the remediation of the material weaknesses noted above. This includes, but is not limited to, providing training to process and control owners, enhancing relevant policies, procedures, guidelines and documentation templates, implementing new controls and improving documentation supporting existing controls, and enhancing segregation of duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24

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We will not be able to fully remediate these material weaknesses until the applicable controls operate for a sufficient period of time and can be tested and concluded by management to be designed and operating effectively. Our management will continue to monitor the effectiveness of our remediation plans in future periods and will make changes we determine to be appropriate.

In designing and evaluating disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

**Changes in Internal Control over Financial Reporting**

Except for the identification of the material weaknesses described above, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter ended December 31, 2025 that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

**Management**'**s Annual Report on Internal Control over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our Company have been detected.

Under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making their assessment, our management used criteria established in the framework on *Internal Control* – *Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based upon that assessment, our management concluded that our internal control over financial reporting was not effective as of December 31, 2025, due to the material weaknesses described above.

This report does not include an attestation report of our independent registered public accounting firm regarding our internal control over financial reporting in accordance with applicable SEC rules that permit us to provide only management´s report in this report.

**ITEM *9B.* OTHER INFORMATION**

None

**ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25

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**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

The information required by this Item will be included in our definitive proxy statement for the 2026 Annual Meeting of Stockholders and is incorporated herein by reference.

**Insider Trading Policy and Procedures**

We have adopted an insider trading policy governing the purchase, sale, and/or other dispositions of our securities by our directors, officers and employees and other covered persons. We believe these policies and procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations and applicable listing standards. A copy of our Insider Trading Policy is filed as Exhibit 19.1 to this Annual Report on Form *10*-K.

**ITEM *11***. **EXECUTIVE COMPENSATION**

The information required by this Item will be included in our definitive proxy statement for the 2026 Annual Meeting of Stockholders and is incorporated herein by reference.

**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

The information required by this Item will be included in our definitive proxy statement for the 2026 Annual Meeting of Stockholders and is incorporated herein by reference.

**ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

The information required by this Item will be included in our definitive proxy statement for the 2026 Annual Meeting of Stockholders and is incorporated herein by reference.

**ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The information required by this Item will be included in our definitive proxy statement for the 2026 Annual Meeting of Stockholders and is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26

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**PART IV**

**ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES**

**Financial Statements**

The consolidated financial statements of the registrant are listed in the index to the consolidated financial statements and filed under Item 8 of this Annual Report.

**Financial Statement Schedules**

Not Applicable.

**Exhibits**

---

| | |
|:---|:---|
| Number | Description |
| 3.1 | [Restated Certificate of Incorporation of Neonode Inc., (*incorporated by reference to Exhibit 3.1 of the registrant*'*s current report on Form 8-K filed on December 11, 2020)*](http://www.sec.gov/Archives/edgar/data/87050/000121390020042269/ea131431ex3-1_neonode.htm) |
| 3.2 | [Amended and Restated Bylaws (*incorporated by reference to Exhibit 3.1 of the registrant*'*s current report on Form 8-K filed on March 10, 2023*)](http://www.sec.gov/Archives/edgar/data/87050/000121390023019201/ea174922ex3-1_neonode.htm) |
| 4.1 | [Description of registrant's Common Stock *(incorporated by reference to Exhibit 4.1 to the registrant*'*s Form S-3 (No. 333-255964), filed on May 10, 2021)*](http://www.sec.gov/Archives/edgar/data/87050/000121390021025380/ea140386ex4-1_neonodeinc.htm) |
| 4.2 | [Form of Senior Indenture *(incorporated by reference to Exhibit 4.5 to the registrant*'*s Form S-3 (No. 333-279252), filed on May 9, 2024)*](http://www.sec.gov/Archives/edgar/data/87050/000121390024041289/ea020550501ex4-5_neonode.htm) |
| 4.3 | [Form of Subordinated Indenture *(incorporated by reference to Exhibit 4.6 to the registrant*'*s Form S-3 (No. 333-279252), filed on May 9, 2024)*](http://www.sec.gov/Archives/edgar/data/87050/000121390024041289/ea020550501ex4-6_neonode.htm) |
| 10.1 | [Assignment Agreement with Aequitas Technologies LLC, dated May 6, 2019 (*incorporated by reference to Exhibit 10.1 of the registrant*'*s current report on Form 8-K filed May 8, 2019*)](http://www.sec.gov/Archives/edgar/data/87050/000121390019008018/f8k050619ex10-1_neonodeinc.htm) |
| 10.2 | [Form of Purchase Warrant (*incorporated by reference to Exhibit 4.1 of the registrant*'*s current report on Form 8-K filed on August 16, 2016*)](http://www.sec.gov/Archives/edgar/data/87050/000121390016016119/f8k081116ex4i_neonodeinc.htm) |
| 10.3 | [Form of Warrant, dated as of August 8, 2017 *(incorporated by reference to Exhibit 4.1 of the registrant*'*s current report on Form 8-K, filed on August 8, 2017)*](http://www.sec.gov/Archives/edgar/data/87050/000121390017008334/f8k080217ex4i_neonodeinc.htm) |
| 10.4+ | [Employment Agreement of Fredrik Nihlén, dated March 30, 2021 *(incorporated by reference to Exhibit 10.1 of the registrant*'*s current report on Form 8-K, filed on March 31, 2021)*](http://www.sec.gov/Archives/edgar/data/87050/000121390021018992/ea138748ex10-1_neonodeinc.htm) |
| 10.5 | [Neonode Inc. 2015 Stock Incentive Plan (*incorporated by reference to Exhibit 10.4 of the registrant*'*s annual report on Form 10-K filed on March 11, 2016*)](http://www.sec.gov/Archives/edgar/data/87050/000121390016011504/f10k2015ex10iv_neonode.htm) |
| 10.6 | [Form of Notice of Grant of Stock Option used in connection with the 2015 Stock Incentive Plan (*incorporated by reference to Exhibit 10.5 of the registrant*'*s annual report on Form 10-K filed on March 11, 2016*)](http://www.sec.gov/Archives/edgar/data/87050/000121390016011504/f10k2015ex10v_neonode.htm) |
| 10.7 | [Form of Notice of Grant of Restricted Stock used in connection with the 2015 Stock Incentive Plan (*incorporated by reference to Exhibit 10.6 of the registrant*'*s annual report on Form 10-K filed on March 11, 2016*)](http://www.sec.gov/Archives/edgar/data/87050/000121390016011504/f10k2015ex10vi_neonode.htm) |
| 10.8 | [Form of Notice of Grant of Restricted Stock Units used in connection with the 2015 Stock Incentive Plan (*incorporated by reference to Exhibit 10.7 of the registrant*'*s annual report on Form 10-K filed on March 11, 2016*)](http://www.sec.gov/Archives/edgar/data/87050/000121390016011504/f10k2015ex10vii_neonode.htm) |
| 10.9 | [Form of Notice of Grant of Stock Option to Swedish residents used in connection with the 2015 Stock Incentive Plan (*incorporated by reference to Exhibit 10.8 of the registrant*'*s annual report on Form 10-K filed on March 11, 2016*)](http://www.sec.gov/Archives/edgar/data/87050/000121390016011504/f10k2015ex10viii_neonode.htm) |
| 10.10 | [Neonode Inc. 2020 Stock Incentive Plan (*incorporated by reference to Exhibit 99.1 to the registration statement on Form S-8 (No. 333-249806) filed on November 2, 2020).*](http://www.sec.gov/Archives/edgar/data/87050/000121390020034587/ea129240ex99-1_neonodeinc.htm) |
| 10.11 | [Placement Agency Agreement, dated October 21, 2021, by and among the registrant and Pareto Securities Inc. and Pareto Securities AB *(incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed on October 21, 2021).*](http://www.sec.gov/Archives/edgar/data/87050/000121390021054035/ea149188ex10-1_neonode.htm) |
| 10.12+ | [Termination Agreement, dated April 10, 2024, by and among Dr. Urban Forssell, the Company, and Neonode Technologies AB *(incorporated by reference to Exhibit 10.1 of the registrant*'*s current report on Form 8-K, filed on April 16, 2024)*](http://www.sec.gov/Archives/edgar/data/87050/000121390024033457/ea020401001ex10-1_neon.htm) |
| 10.13 | [At The Market Offering Agreement, dated June 3, 2024, by and between Neonode Inc. and Ladenburg Thalmann & Co. Inc. *(incorporated by reference to Exhibit 10.1 of the registrant*'*s current report on Form 8-K, filed on June 4, 2024)*](http://www.sec.gov/Archives/edgar/data/87050/000121390024049351/ea020715001ex10-1_neonode.htm) |
| 10.14+ | [<u>Employment Agreement, Dated March 21, 2025, by and between Neonode Technologies AB and Daniel Alexus</u> *<u>(incorporated by reference to Exhibit 10.1 of the registrant</u>*<u>'</u>*<u>s current report on Form 8-K, filed on March 24, 2025)</u>*<u>.</u>](http://www.sec.gov/Archives/edgar/data/87050/000101376225001268/ea023524301ex10-1_neonode.htm) |
| 16.1 | [Letter from KMJ Corbin & Company LLP, dated June 24, 2024 *(incorporated by reference to Exhibit 16.1 of the registrant*'*s current report on Form 8-K, filed on June 24, 2024)*](http://www.sec.gov/Archives/edgar/data/87050/000121390024055218/ea020813501ex16-1_neonode.htm) |
| 19.1 | [Neonode Inc. Insider Trading Policy](ex_892210.htm) |
| 21 | [Subsidiaries of the registrant](ex_892211.htm) |
| 23.1 | [Consent of Crowe LLP, Independent Registered Public Accounting Firm](ex_892212.htm) |
| 31.1 | [Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002](ex_892214.htm) |
| 31.2 | [Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002](ex_892215.htm) |
| 32 | [Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex_892216.htm) |
| 97.1 | [Clawback Policy *(incorporated by reference to Exhibit 97.1 of the registrant*'*s annual report on Form 10-K filed on February 28, 2024)*](http://www.sec.gov/Archives/edgar/data/87050/000121390024017782/f10k2023ex97-1_neonode.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

---

| | |
|:---|:---|
| + | Management contract or compensatory plan or arrangement |

---

**ITEM 16. FORM 10-K SUMMARY**

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27

------

[**Table of Contents**](#toc)

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | NEONODE INC.<br> (Registrant) | NEONODE INC.<br> (Registrant) |
| Date: March 18, 2026 | By: | /s/ Fredrik Nihlén |
|  |  | Fredrik Nihlén |
|  |  | Chief Financial Officer |

---

Pursuant to the requirements for the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacity and dates indicated.

---

| | | |
|:---|:---|:---|
| Name | Title | Date |
| /s/ Pierre Daniel Alexus | President and Chief Executive Officer | March 18, 2026 |
| Pierre Daniel Alexus | *(Principal Executive Officer*) |  |
| /s/ Fredrik Nihlén | Chief Financial Officer | March 18, 2026 |
| Fredrik Nihlén | *(Principal Financial and Accounting Officer)* |  |
| /s/ Ulf Rosberg | Chairman of the Board of Directors | March 18, 2026 |
| Ulf Rosberg |  |  |
| /s/ Per Löfgren | Director | March 18, 2026 |
| Per Löfgren |  |  |
| /s/ Peter Lindell | Director | March 18, 2026 |
| Peter Lindell |  |  |
| /s/ Didier Schreiber | Director | March 18, 2026 |
| Didier Schreiber |  |  |
| /s/ Peter Kruk | Director | March 18, 2026 |
| Peter Kruk |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28

## Exhibit 19.1

**Exhibit 19.1**

![neonodelogo.jpg](neonodelogo.jpg)

**Policy Against Insider Trading and Securities Fraud**

---

| | |
|:---|:---|
| **1** | **Guidelines with Respect to Certain Transactions in Company Securities** |

---

This Policy describes the standards of Neonode Inc. and its subsidiaries (collectively, the "Company") on trading, and causing the trading of, the Company's securities or securities of certain other publicly traded companies while in possession of Material Nonpublic Information (as defined below).

---

| | |
|:---|:---|
| **2** | **Applicability of Policy** |

---

This Policy applies to all transactions in the Company's securities, including common stock, options for common stock and any other securities the Company may issue from time to time, such as preferred stock, warrants, notes and debentures, as well as to derivative securities relating to the Company's securities, whether or not issued by the Company, such as exchange-traded options. It applies to all employees of the Company, all officers of the Company, all members of the Company's Board of Directors, and all consultants and contractors to the Company who receive or have access to Material Nonpublic Information regarding the Company. This group of people and their family members are sometimes referred to in this Policy as "Insiders". Family members of any person include family residing with such person, any other person in such person's household, any other family member whose transactions in Company securities are directed by such person or subject to such person's influence or control, and any controlled affiliate of such person.

This policy is intended to prevent even the appearance of improper trading on the part of anyone employed by or associated with the Company. Accordingly, any person who possesses Material Nonpublic Information regarding the Company is an Insider for so long as the information is not publicly known.

---

| | |
|:---|:---|
| **3** | **Statement of Policy** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **General Policy** 

It is the policy of the Company to oppose the unauthorized disclosure of any nonpublic information and the misuse of Material Nonpublic Information in securities trading.

---

| | | |
|:---|:---|:---|
| **Neonode Inc.** | **Visiting Address** | **Contact Information** |
| Box 24071 | Karlavägen 100 | info@neonode.com |
| SE-115 26 Stockholm | SE-115 26 Stockholm | www.neonode.com |
| Sweden | Sweden | linkedin.com/company/neonode |

---

------

![neonodelogo.jpg](neonodelogo.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2** **Specific Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.1** **Trading on the Basis of Material Nonpublic Information** 

No director, officer or employee of, or designated consultant or contractor to, the Company, or any of their respective family members, shall engage in any transaction involving the Company's securities, including any offer to purchase or offer to sell, during any period commencing on the date that he or she becomes aware of Material Nonpublic Information concerning the Company, and ending at the close of business on the first Trading Day following the date of public disclosure of that information, or at such time as such nonpublic information is no longer material unless the transaction is completed pursuant to a written pre-determined trading program that (a) meets the requirements of Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended; (b) is adopted and/or amended when he or she did not possess Material Nonpublic Information or was not otherwise restricted from trading; and (c) is promptly filed upon initiation and/or amendment with the Company's Chief Financial Officer (hereinafter referred to as a "Rule 10b5-1 Trading Plan"). It is the current policy of the Company, unless otherwise approved in advance by the Company's Chief Financial Officer, that Rule 10b5-1 Trading Plans may not be adopted or amended during the first month of each fiscal quarter.

As used herein, the term "Trading Day" shall mean a day on which the Nasdaq Stock Market ("NASDAQ") is open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.2** **Tipping** 

No Insider shall disclose ("tip") Material Nonpublic Information to any other person (including family members) where such information may be used by such person to his or her profit by trading or in recommending or advising others to trade in the securities of the Company, nor shall such Insider or other person make recommendations or express opinions on the basis of Material Nonpublic Information as to trading in the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.3** **Confidentiality of Nonpublic Information** 

Nonpublic information relating to the Company is the property of the Company and the unauthorized disclosure of such information is forbidden. Directors, officers, employees, consultants, and contractors should not discuss internal Company matters or developments with anyone outside the Company, except as required in the performance of their regular employment, service or assignment duties, nor should Company matters be discussed in public or quasi-public areas where conversations may be overheard. This prohibition also applies to inquiries about the Company, which may be made by the financial press, investment analysts or others in the financial community. It is important that all such communications on behalf of the Company be made only through designated authorized individuals. If directors, officers, employees, consultants, or contractors receive inquiries of this nature they should decline comments and refer the inquirer directly to the appropriate officer (i.e., the Chief Executive Officer or the Chief Financial Officer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.4** **Certain Exceptions** 

The exercise of stock options for cash under any Company equity incentive plan and the purchase of any shares under any stock purchase plan are exempt from this Policy, since the other party to the transaction is the Company itself and the price does not vary with the market but is fixed by the terms of the option agreement or plan. The Policy does apply, however, to any sale of stock acquired upon the exercise of any such option or pursuant to a stock purchase plan, including, any sale as part of a broker-assisted cashless exercise of an option, or any other market sale for the purpose of generating the cash needed to pay the exercise price of an option. The mandatory automatic sale of the Company's common stock by an officer or employee of, or consultant or contractor to, the Company, to cover taxes due as a result of the vesting of restricted stock units (hereinafter "Automatic Sales") and any transactions made pursuant to a Rule 10b5-1 Trading Plan (a "Rule 10b5-1 Transaction") shall be exempt from this Policy.

---

| | | |
|:---|:---|:---|
| **Neonode Inc.** | **Visiting Address** | **Contact Information** |
| Box 24071 | Karlavägen 100 | info@neonode.com |
| SE-115 26 Stockholm | SE-115 26 Stockholm | www.neonode.com |
| Sweden | Sweden | linkedin.com/company/neonode |

---

------

![neonodelogo.jpg](neonodelogo.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.5** **Mandatory Pre-notification Procedure; Section 16 Reporting Requirements** 

Directors and certain designated executive officers ("Section 16 Officers") are subject to additional restrictions and reporting requirements under U.S. federal securities law. Any transactions in the Company's securities by directors and Section 16 Officers, together with their family members, must be reported to the U.S. Securities and Exchange Commission (the "SEC") within two business days of the transaction date in accordance with Section 16(a) of the Securities Exchange Act of 1934, as amended.

In connection with these requirements, the Company has implemented a mandatory pre-notification procedure. No director or Section 16 Officer, together with their family members, may engage in any transaction involving the Company's securities (including a purchase or sale, a stock plan transaction such as an option exercise, a gift, a loan or pledge or hedge, a contribution to a trust, or any other transfer) without first notifying the Company at least two days in advance of the proposed transaction. This notification should be made by e-mail or in writing to the Chief Financial Officer and should include the details of all transactions involving the Company's securities the same day of effecting the transaction (in the case of a purchase or sale, the trade date, not the settlement date) so that the necessary report can be filed with the SEC by the deadline. Although these reports are the personal responsibility of the reporting person and are not the responsibility of the Company; the Company will assist with making the necessary filings on behalf of the reporting person, if authorized by the reporting person, so long as the necessary information is provided to the Company within the required timeframe and in the manner as set forth above.

---

| | |
|:---|:---|
| **4** | **Potential Criminal and Civil Liability and/or Disciplinary Action** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Liability for Insider Trading** 

Insiders who enter into transactions on the basis of Material Nonpublic Information may be subject under United States Federal law to a number of significant penalties, including: a civil penalty of up to three times the profit gained or loss avoided; a criminal fine of up to $5,000,000 (no matter how small the profit); and a jail term of up to twenty years. Additionally, supervisory personnel, if they fail to take appropriate steps to prevent illegal insider trading, are subject to a civil penalty of up to $1,000,000 or, if greater, three times the profit gained or loss avoided as a result of the violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **Liability for Tipping** 

Insiders may also be liable for improper transactions by any person (commonly referred to as a "tippee") to whom they have disclosed Material Nonpublic Information regarding the Company or to whom they have made recommendations or expressed opinions on the basis of such information as to trading in the Company's securities. Large penalties have been imposed upon persons who have disclosed such information to others, even when the disclosing person did not profit from the trading. The SEC, the stock exchanges and the Financial Industry Regulatory Authority (FINRA) use sophisticated surveillance techniques to uncover insider trading.

---

| | | |
|:---|:---|:---|
| **Neonode Inc.** | **Visiting Address** | **Contact Information** |
| Box 24071 | Karlavägen 100 | info@neonode.com |
| SE-115 26 Stockholm | SE-115 26 Stockholm | www.neonode.com |
| Sweden | Sweden | linkedin.com/company/neonode |

---

------

![neonodelogo.jpg](neonodelogo.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Possible Disciplinary Actions** 

Employees of the Company (including officers) who violate this Policy may be subject to disciplinary action by the Company, which may include i termination of employment for cause. Consultants and contractors who violate this Policy may have their relationship with the Company terminated.

---

| | |
|:---|:---|
| **5** | **Guidelines** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **Trading Window for Directors, Officers and Certain Designated Employees** 

The period beginning after the 15th day of the last month of a fiscal quarter and ending at the close of business on the Trading Day following the date of public disclosure of the financial results for that quarter, is a particularly sensitive period of time for engaging in transactions in the Company's securities from a securities law perspective. This sensitivity is due to the fact that officers, directors and certain other employees of the Company will, during that period, often possess Material Nonpublic Information about the expected financial results for the quarter. Accordingly, to ensure compliance with this Policy and applicable United States federal and state securities laws, all directors, officers and certain designated employees, listed on a separate appendix to this Policy (which may be amended from time to time by the Chief Executive Officer and Chief Financial Officer of the Company in their sole discretion), having access to the Company's internal financial statements or other Material Nonpublic Information relating to the Company's financial results ("Covered Persons"), and their respective family members, must refrain from conducting transactions in the Company's securities during this period, except for Automatic Sales and Rule 10b5-1 Transactions, unless otherwise approved in advance by the Company's Chief Financial Officer. Covered Persons must limit their purchases and sales of the Company's securities to the period commencing at the close of business on the first Trading Day following the date of public disclosure of the financial results for a particular fiscal quarter or year and continuing until the end of the 15th day of the last month of the fiscal quarter (or, if such day is not a Trading Day, the end of the last Trading Day preceding such day) (the "Trading Window"). The purpose behind the "Trading Window" guideline is to help establish a diligent effort to avoid any improper transaction (or even the appearance of an improper transaction).

From time to time, the Company may also recommend that Covered Persons and other designated persons suspend trading (other than Automatic Sales and Rule 10b5-1 Transactions, except under limited circumstances) because of material developments known to the Company and not yet disclosed to the public. In such event, such persons are advised not to engage in any transaction (except for Automatic Sales and Rule 10b5-1 Transactions, unless otherwise instructed) involving the purchase or sale of the Company's securities during such period and should not disclose to others the fact of such suspension of trading.

It should be noted, however, that even during a Trading Window, any Insider possessing Material Nonpublic Information concerning the Company should not engage in any transaction, except for Automatic Sales or Rule 10b5-1 Transactions, in the Company's securities until such information has been known publicly for at least one Trading Day, whether or not the Company has recommended a suspension of trading to that person. Trading in the Company's securities during the Trading Window should not be considered to be within a "safe harbor," and all Insiders should use good judgment at all times.

---

| | | |
|:---|:---|:---|
| **Neonode Inc.** | **Visiting Address** | **Contact Information** |
| Box 24071 | Karlavägen 100 | info@neonode.com |
| SE-115 26 Stockholm | SE-115 26 Stockholm | www.neonode.com |
| Sweden | Sweden | linkedin.com/company/neonode |

---

------

![neonodelogo.jpg](neonodelogo.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2** **Preclearance of Trades by Covered Persons** 

The Company has determined that all Covered Persons, together with their family members, should refrain from entering into any transaction in the Company's securities, except for Automatic Sales and other Rule 10b5-1 Transactions, even during a Trading Window, without first complying with the Company's "preclearance" process. Each Covered Person should contact the Chief Financial Officer prior to engaging in any trade in the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3** **Individual Responsibility** 

The guidelines set forth in this Policy are guidelines only, and appropriate judgment should be exercised in connection with any trade in the Company's securities. An Insider may, from time to time, have to forego a proposed transaction, except for Automatic Sales and other Rule 10b5-1 Transactions, in the Company's securities even if he or she planned to make the transaction before learning of the Material Nonpublic Information and even though the Insider believes he or she may suffer an economic loss or forego anticipated profit by waiting.

---

| | |
|:---|:---|
| **6** | **Applicability of Policy to Inside Information Regarding Other Companies** |

---

This Policy and the guidelines described herein also apply to Material Nonpublic Information (i) relating to other companies, including the Company's customers, vendors or suppliers ("business partners"), or (ii) relating to the Company if there is a reasonable likelihood that it would be considered important to an investor in making an investment decision to purchase, sell or hold stock of other companies, including business partners, in each case when that information is obtained in the course of employment with, or other services performed on behalf of, the Company. Civil and criminal penalties, and termination of employment, may result from trading on inside information regarding the Company's business partners. All Insiders should treat Material Nonpublic Information about the Company's business partners with the same care required with respect to information related directly to the Company.

---

| | |
|:---|:---|
| **7** | **Definition of Material Nonpublic Information** |

---

It is not possible to define all categories of material information. However, information should be regarded as material if there is a reasonable likelihood that it would be considered important to an investor in making an investment decision to purchase, sell or hold the Company's securities. Insiders should assume that any information, positive or negative, is material if it might affect the Company's stock price or otherwise be of significance to an investor in determining whether to purchase, sell or hold the Company's stock.

---

| | | |
|:---|:---|:---|
| **Neonode Inc.** | **Visiting Address** | **Contact Information** |
| Box 24071 | Karlavägen 100 | info@neonode.com |
| SE-115 26 Stockholm | SE-115 26 Stockholm | www.neonode.com |
| Sweden | Sweden | linkedin.com/company/neonode |

---

------

![neonodelogo.jpg](neonodelogo.jpg)

While it may be difficult under this standard to determine whether particular information is material, there are various categories of information that are particularly sensitive and, as a general rule, should always be considered material. Examples of such information may include:

● Financial results

● Projections of future earnings or losses or changes in such projections

● Actual changes in earnings

● Results of product development

● News of a pending or proposed merger, acquisition, joint venture or tender offer

● News of the disposition of a subsidiary or of material assets

● Impending bankruptcy or financial liquidity problems

● Gain or loss of a substantial customer or supplier

● Changes in dividend policy

● New product announcements of a significant nature

● Significant product defects or modifications

● Significant increases or decreases in customers

● Significant changes in net and gross adds in customers

● Significant pricing changes

● Stock splits

● Calls, redemptions, or purchases of the company's securities by the Company

● New equity or debt offerings

● Significant litigation exposure due to actual or threatened litigation

● Changes in senior management or other major personnel changes.

● Nonpublic information is Information that has not been previously disclosed to the general public and is otherwise not available to the general public.

---

| | |
|:---|:---|
| **8** | **Additional Prohibited Transactions** |

---

The Company considers it improper and inappropriate for any director, officer or employee to engage in short-term or speculative transactions in the Company's securities. It therefore is the Company's policy that directors, officers and employees, and their respective family members, may not engage in any of the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Short Sales** 

Short sales of the Company's securities evidence an expectation on the part of the seller that the securities will decline in value, and may signal to the market that the seller has no confidence in the Company or its short-term prospects. In addition, short sales may reduce the seller's incentive to improve the Company's performance. For these reasons, short sales of the Company's securities are prohibited by this Policy. In addition, Section 16(c) of the Exchange Act prohibits officers and directors from engaging in short sales.

---

| | | |
|:---|:---|:---|
| **Neonode Inc.** | **Visiting Address** | **Contact Information** |
| Box 24071 | Karlavägen 100 | info@neonode.com |
| SE-115 26 Stockholm | SE-115 26 Stockholm | www.neonode.com |
| Sweden | Sweden | linkedin.com/company/neonode |

---

------

![neonodelogo.jpg](neonodelogo.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2** **Publicly Traded Option** 

A transaction in options is, in effect, a bet on the short-term movement of the Company's stock and therefore creates the appearance that the director, officer or employee is trading based on Material Nonpublic Information. Transactions in options also may focus the director's, officer's or employee's attention on short-term performance at the expense of the Company's long-term objectives. Accordingly, transactions in puts, calls or other derivative securities, on an exchange or in any other organized market, are prohibited by this Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3** **Hedging Transactions** 

Certain forms of hedging or monetization transactions, such as zero-cost collars and forward sale contracts, allow a person to lock in much of the value of his or her stock holdings, often in exchange for all or part of the potential for upside appreciation in the stock. These transactions allow the person to continue to own the covered securities, but without the full risks and rewards of ownership. When that occurs, the person may no longer have the same objectives as the Company's other shareholders. Therefore, all directors, officers and employees of the Company are prohibited from engaging in such transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4** **Margin Accounts and Pledges** 

Securities held in a margin account may be sold by the broker without the customer's consent if the customer fails to meet a margin call. Similarly, securities pledged (or hypothecated) as collateral for a loan may be sold in foreclosure if the borrower defaults on the loan. Because a margin sale or foreclosure sale may occur at a time when the pledgor is aware of Material Nonpublic Information or otherwise is not permitted to trade in Company securities, directors, officers and employees are prohibited from holding Company securities in a margin account or pledging Company securities as collateral for a loan. An exception to this prohibition may be granted where a person wishes to pledge Company securities as collateral for a loan (not including margin debt) and clearly demonstrates the financial capacity to repay the loan without resort to the pledged securities. Any person who wishes to pledge Company securities as collateral for a loan must submit a request for approval to the Company's General Counsel at least two weeks prior to the proposed execution of documents evidencing the proposed pledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5** **Post-Termination Transactions** 

Any person in possession of Material Nonpublic Information when their employment or assignment terminates, may not trade in Company securities until that Information has become public or is no longer material.

---

| | |
|:---|:---|
| **9** | **Section 16** "**Short-Swing**" **Profit Rules** – **Directors and Officers** |

---

Directors and Section 16 Officers of the Company are also subject to the "short-swing" profit rules set forth in Section 16(b) of the Securities Exchange Act of 1934, as amended. The practical effect of these provisions is that directors and Section 16 Officers who purchase and then sell or sell and then purchase the Company's securities within a six-month period must disgorge all profits to the Company whether or not they had knowledge of any Material Nonpublic Information. Under these provisions, and so long as certain other criteria are met, neither the receipt of an option under the Company's option plans, nor the exercise of that option, nor the receipt of stock under an employee stock purchase plan is deemed a purchase under Section 16; however, the sale of any such shares is a sale under Section 16(b).

---

| | |
|:---|:---|
| **10** | **Policy Subject to Revision** |

---

The Company may change or otherwise revise the terms of this Policy from time to time to respond to developments in law and practice. The Company will take steps to inform all affected persons of any material changes or revisions to this Policy.

---

| | |
|:---|:---|
| **11** | **Inquiries** |

---

Please direct your questions as to any of the matters discussed in this Policy to the Chief Financial Officer

---

| | | |
|:---|:---|:---|
| **Neonode Inc.** | **Visiting Address** | **Contact Information** |
| Box 24071 | Karlavägen 100 | info@neonode.com |
| SE-115 26 Stockholm | SE-115 26 Stockholm | www.neonode.com |
| Sweden | Sweden | linkedin.com/company/neonode |

---

## Ex-21

**Exhibit 21**

**SUBSIDIARIES OF THE REGISTRANT**

---

| | |
|:---|:---|
| Name | Jurisdiction |
| Neonode Technologies AB | Sweden |
| Neonode Japan Inc. | Japan |
| Neonode Korea Ltd. | South Korea |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in Registration Statement No. 333-249806 on Form S-8 and Registration Statement Nos. 333-279252 and 333-248614 on Form S-3 of Neonode Inc. of our report dated March 18, 2026 relating to the consolidated financial statements of Neonode Inc., appearing in this Annual Report on Form 10-K.

/s/ Crowe LLP<br>

New York, New York

March 18, 2026

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Pierre Daniel Alexus, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of Neonode Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 18, 2026

---

| |
|:---|
| /s/ Pierre Daniel Alexus |
| Pierre Daniel Alexus |
| President and Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Fredrik Nihlén, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of Neonode Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 18, 2026

---

| |
|:---|
| /s/ Fredrik Nihlén |
| Fredrik Nihlén |
| Chief Financial Officer |

---

## Ex-32

**Exhibit 32**

**CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the annual report of Neonode Inc. (the "Company") on Form 10-K for the fiscal year ended December 31, 2025 as filed with the Securities and Exchange Commission (the "Report"), the undersigned principal executive officer and principal financial officer of the Company, each hereby certify, solely for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

---

| | |
|:---|:---|
| /s/ Pierre Daniel Alexus | /s/ Fredrik Nihlén |
| Pierre Daniel Alexus | Fredrik Nihlén |
| President and Chief Executive Officer<br> March 18, 2026 | Chief Financial Officer<br> March 18, 2026 |

---

*This certification is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Act of 1934, as amended, whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing.*