Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Neonode, Inc | ' |
Entity Central Index Key | '0000087050 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 37,928,799 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $10,568 | $9,097 |
Accounts receivable | 1,085 | 2,123 |
Subscription receivable | 286 | ' |
Prepaid expenses and other current assets | 1,010 | 550 |
Total current assets | 12,949 | 11,770 |
Deposit | 69 | 68 |
Property and equipment, net | 365 | 330 |
Total assets | 13,383 | 12,168 |
Current liabilities: | ' | ' |
Accounts payable | 426 | 539 |
Accrued expenses | 896 | 804 |
Deferred revenue | 3,479 | 2,725 |
Total current liabilities | 4,801 | 4,068 |
Total liabilities | 4,801 | 4,068 |
Stockholders' equity: | ' | ' |
Common stock, 70,000,000 shares authorized with par value $0.001 per share; 34,237,513 and 33,331,182 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively | 38 | 33 |
Additional paid-in capital | 157,179 | 146,677 |
Accumulated other comprehensive income | 13 | 5 |
Accumulated deficit | -148,648 | -138,615 |
Total stockholders' equity | 8,582 | 8,100 |
Total liabilities and stockholders' equity | 13,383 | 12,168 |
Series A Preferred Stock | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, value | ' | ' |
Series B Preferred Stock | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, value | ' | ' |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 37,869,799 | 33,331,182 |
Common stock, shares outstanding | 37,869,799 | 33,331,182 |
Series A Preferred Stock | ' | ' |
Preferred stock, shares authorized | 444,541 | 444,541 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares issued | 0 | 83 |
Preferred stock, shares outstanding | 0 | 83 |
Preferred stock, liquidation preference | $0.00 | ' |
Series B Preferred Stock | ' | ' |
Preferred stock, shares authorized | 54,425 | 54,425 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares issued | 83 | 95 |
Preferred stock, shares outstanding | 83 | 95 |
Preferred stock, liquidation preference | $0.00 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statements of Operations [Abstract] | ' | ' | ' | ' |
Net revenues | $1,076 | $1,679 | $2,708 | $4,817 |
Cost of revenues | 765 | 337 | 1,443 | 1,080 |
Gross margin | 311 | 1,342 | 1,265 | 3,737 |
Operating expenses: | ' | ' | ' | ' |
Product research and development | 2,211 | 1,451 | 5,286 | 3,616 |
Sales and marketing | 406 | 920 | 2,104 | 3,437 |
General and administrative | 972 | 1,086 | 3,813 | 3,772 |
Total operating expenses | 3,589 | 3,457 | 11,203 | 10,825 |
Loss before provision for income taxes | -3,278 | -2,115 | -9,938 | -7,088 |
Provision for income taxes | 65 | 29 | 95 | 71 |
Net loss | ($3,343) | ($2,144) | ($10,033) | ($7,159) |
Loss per common share: | ' | ' | ' | ' |
Basic and diluted loss per share | ($0.09) | ($0.06) | ($0.29) | ($0.22) |
Basic and diluted - weighted average number of common shares outstanding | 35,437 | 33,021 | 34,366 | 32,934 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statements of Comprehensive Loss [Abstract] | ' | ' | ' | ' |
Net loss | ($3,343) | ($2,144) | ($10,033) | ($7,159) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustments | -46 | 67 | 8 | 39 |
Total comprehensive loss | ($3,389) | ($2,077) | ($10,025) | ($7,120) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($10,033) | ($7,159) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Stock-based compensation expense | 2,101 | 2,957 |
Depreciation and amortization | 104 | 68 |
Loss on disposal of property and equipment | 1 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 1,040 | 1,841 |
Prepaid expenses and other current assets | -458 | -135 |
Accounts payable and accrued expenses | -32 | 138 |
Deferred revenue | 748 | 688 |
Net cash used in operating activities | -6,529 | -1,602 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment | -136 | -290 |
Net cash used in investing activities | -136 | -290 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock, net of offering costs | 6,899 | ' |
Proceeds from exercise of stock options | 524 | ' |
Proceeds from exercise of warrants | 699 | 155 |
Net cash provided by financing activities | 8,122 | 155 |
Effect of exchange rate changes on cash | 14 | 43 |
Net increase (decrease) in cash | 1,471 | -1,694 |
Cash at beginning of period | 9,097 | 12,940 |
Cash at end of period | 10,568 | 11,246 |
Cash paid during the period for: | ' | ' |
Interest paid | ' | ' |
Income taxes paid | 95 | 71 |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Cashless exercise of warrants | 3 | ' |
Non Cash Stock subscription receivable | $286 | ' |
Interim_Period_Reporting
Interim Period Reporting | 9 Months Ended |
Sep. 30, 2013 | |
Interim Period Reporting [Abstract] | ' |
Interim Period Reporting | ' |
1. Interim Period Reporting | |
The unaudited interim condensed consolidated financial statements, include all adjustments, consisting of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim periods presented. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of expected results for the full 2013 fiscal year. | |
The accompanying condensed consolidated financial statements as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 have been prepared by us, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally contained in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in our annual report on Form 10-K for the fiscal year ended December 31, 2012. | |
Operations | |
Neonode Inc. (“we”, “us”, “our”, the “Company”), develops and licenses MultiSensing® user interfaces and optical multi-touch and proximity sensing solutions to Original Equipment Manufacturers (“OEMs”) and Original Design Manufacturers (“ODMs”) who embed the Neonode technology into devices that they produce and sell. The cornerstone of our offer is our patented touch technology zForce®. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||
Sep. 30, 2013 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
Summary of Significant Accounting Policies | ' | ||
2. Summary of Significant Accounting Policies | |||
Fiscal Year | |||
Our fiscal year is the calendar year. | |||
Principles of Consolidation | |||
The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of Neonode Inc. and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. | |||
The condensed consolidated statements of operations, and comprehensive loss for the three and nine months ended September 30, 2012 and consolidated statement of cash flows for the nine months ended September 30, 2012 include our accounts and those of our wholly owned subsidiary, Neonode Technologies AB (Sweden) (“NTAB”). All significant intercompany accounts and transactions have been eliminated. | |||
The condensed consolidated balance sheet at September 30, 2013 and the condensed consolidated statements of operations, and comprehensive loss for the three and nine months ended September 30, 2013 and consolidated statements of cash flows for the nine months ended September 30, 2013 include our accounts and those of our wholly owned subsidiaries, NTAB, Neonode Americas Inc. (U.S.) (“NAI”), Neonode KK (Japan) (“NJK”), NEON Technology Inc. (U.S.) (“NTI”) and Neonode UI AB (Sweden) (“NUIAB”). All significant intercompany accounts and transactions have been eliminated. | |||
Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires making estimates and assumptions 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 during the reporting periods. Actual results could differ from these estimates. Significant estimates include, but are not limited to, collectability of accounts receivable, recoverability of long-lived assets, the valuation allowance related to our deferred tax assets and the fair value of securities, such as options and warrants issued for stock-based compensation. | |||
Cash | |||
We have not had any liquid investments other than normal cash deposits with bank institutions to date. If in the future the Company purchases cash equivalents, the Company will consider all highly liquid investments with original maturities of three months of less to be cash equivalents. | |||
Concentration of Cash Balance Risks | |||
Cash balances are maintained at various banks in the U.S., Japan and Sweden. At times, deposits held with financial institutions in the United States of America may exceed the amount of insurance provided by the Federal Deposit Insurance Corporation (“FDIC”), which provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 100,000 euro per customer and covers deposits in all types of accounts. The Japanese government provides insurance coverage up to 10,000,000 Yen per customer. As of September 30, 2013, the Company has approximately $9.3 million in excess of insurance limits. | |||
Accounts Receivable and Allowance for Doubtful Accounts | |||
Our accounts receivable are stated at net realizable value. Our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make required payments. Credit limits are established through a process of reviewing the financial history and stability of each customer. Where appropriate, we obtain credit rating reports and financial statements of the customer when determining or modifying its credit limits. We regularly evaluate the collectability of our trade receivable balances based on a combination of factors. When a customer’s account balance becomes past due, we initiate dialogue with the customer to determine the cause. If it is determined that the customer will be unable to meet its financial obligation, such as in the case of a bankruptcy filing, deterioration in the customer’s operating results or financial position or other material events impacting its business, we record a specific allowance to reduce the related receivable to the amount we expect to recover. Should all efforts fail to recover the related receivable, we will write-off the account. We also record an allowance for all customers based on certain other factors including the length of time the receivables are past due and historical collection experience with customers. We determined that an allowance for doubtful accounts was not necessary at September 30, 2013 or December 31, 2012. | |||
Property and Equipment | |||
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based upon estimated useful lives of the assets ranging from three to five years as follows: | |||
Computer equipment | 3 years | ||
Furniture and fixtures | |||
5 years | |||
Equipment purchased under capital leases is amortized on a straight-line basis over the estimated useful life of the asset or the term of the lease, whichever is shorter. | |||
Upon retirement or sale of property and equipment, cost and accumulated depreciation and amortization are removed from the accounts and any gains or losses are reflected in the consolidated statement of operations. Maintenance and repairs are charged to expense as incurred. | |||
Long-lived Assets | |||
We assess any impairment by estimating the future cash flow from the associated asset in accordance with relevant accounting guidance. If the estimated undiscounted future cash flow related to these assets decreases or the useful life is shorter than originally estimated, we may incur charges for impairment of these assets. At September 30, 2013, we believe there is no impairment of our long-lived assets. There can be no assurance, however, that market conditions will not change or sufficient commercial demand for our products and services will materialize, which could result in impairment of long-lived assets in the future. | |||
Foreign Currency Translation and Transaction Gains and Losses | |||
The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona or the Japanese Yen. The translation from Swedish Krona or Japanese Yen 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. Foreign currency translation gain (loss) were $(46,000) and $67,000 for the three months ended September 30, 2013 and 2012, respectively, and were $8,000 and $39,000 for the nine months ended September 30, 2013 and 2012, respectively. Gains or losses resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Gains or (losses) resulting from foreign currency transactions are included in general and administrative expense in the accompanying condensed consolidated statements of operations. Foreign currency transaction gains (losses) were $(33,000) and $71,000 during the three months ended September 30, 2013 and 2012, respectively, and $157,000 and $82,000 during the nine months ended September 30, 2013 and 2012, respectively. | |||
Concentration of Credit and Business Risks | |||
Our accounts receivable as of September 30, 2013 was due from sixteen customers, one of which accounted for 31% of our accounts receivable as of September 30, 2013. | |||
Our accounts receivable as of December 31, 2012 was due from fifteen customers, none of which accounted for more than 10% of our accounts receivable as of December 31, 2012. | |||
Our net revenues for the three months ended September 30, 2013 were earned from fifteen customers. Our customers are located in North America, Europe and Asia. Customers who accounted for 10% or more of our net revenues during the three months ended September 30, 2013 are as follows: | |||
● | Leap Frog Enterprises Inc. - 36% | ||
● | Sony Corporation – 16% | ||
● | Pro Point – 12% | ||
Our net revenues for the nine months ended September 30, 2013 were earned from twenty-five customers. Our customers are located in North America, Europe and Asia. Customers who accounted for 10% or more of our net revenues during the nine months ended September 30, 2013 are as follows: | |||
● | Kobo Inc. - 19% | ||
● | Leap Frog Enterprises Inc. - 16% | ||
● | Sony Corporation – 15% | ||
● | Netronix Inc. – 14% | ||
Our net revenues for the three months ended September 30, 2012 was earned from nine customers. Our customers are located in North America, Europe and Asia. Customers who accounted for 10% or more of our net revenues during the three months ended September 30, 2012 are as follows: | |||
● | Amazon - 31% | ||
● | Kobo Inc. - 27% | ||
● | Sony Corporation. -18% | ||
● | Barnes & Noble – 13% | ||
Our net revenues for the nine months ended September 30, 2012 was earned from eighteen customers. Our customers are located in North America, Europe and Asia. Customers who accounted for 10% or more of our net revenues during the nine months ended September 30, 2012 are as follows: | |||
● | Amazon - 46% | ||
● | Kobo Inc. -16% | ||
● | |||
Sony Corporation – 14% | |||
Revenue Recognition | |||
Licensing Revenues: | |||
We derive revenue from the licensing of internally developed intellectual property (“IP”). We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. The IP licensing agreements generally include a nonexclusive license for the underlying IP. Fees under these agreements may include license fees relating to our IP and royalties payable 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. Neonode meets all the accounting requirements for revenue recognition as per unit royalty products are distributed or licensed by the Company’s customers. For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when: (1) we enter into a legally binding arrangement with a customer for the license of technology; (2) the customer distributes or licenses the products; (3) the customer payment is deemed fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is reasonably assured. Our customers report to us the quantities of products distributed or licensed by them after the end of the reporting period stipulated in the contract, generally 30 to 45 days after the end of the month or quarter. | |||
Explicit return rights are not offered to customers. There have been no returns through September 30, 2013. | |||
Engineering Services: | |||
We may sell engineering consulting services to our customers on a flat rate or hourly rate basis. We recognize revenue from these services when all of the following conditions are met: (1) evidence existed of an arrangement with the customer, typically consisting of a purchase order or contract; (2) our services were performed and risk of loss passed to the customer; (3) we completed all of the necessary terms of the contract; (4) the amount of revenue to which we were entitled was fixed or determinable; and (5) we believed it was probable that we would be able to collect the amount due from the customer. To the extent that one or more of these conditions has not been satisfied, we defer recognition of revenue. Generally, we recognize revenue as the engineering services stipulated under the contract are completed and accepted by our customers. | |||
Deferred Revenue | |||
From time-to-time the Company receives pre-payments from its customers related to future services or future license fee revenues. We defer the license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed or licensed by the Company’s customers and the engineering development fee revenue until such time as the engineering work has been completed and accepted by our customers. | |||
Advertising | |||
Advertising costs are expensed as incurred. Advertising costs for the three and nine months ended September 30, 2013 and 2012 amounted to approximately $31,000 and $20,000, and $160,000 and $302,000, respectively. | |||
Product Research and Development | |||
Research and development (“R&D”) costs are expensed as incurred. R&D costs consist mainly of personnel related costs in addition to some external consultancy costs such as testing, certifying and measurements. | |||
Stock-Based Compensation Expense | |||
We measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the fair value of the award on the grant date, and recognize the value as compensation expense over the period the employee is required to provide services in exchange for the award, usually the vesting period, net of estimated forfeitures. | |||
We account for equity instruments issued to non-employees at their fair value. The measurement date for the fair value for the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached, or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instruments is primarily recognized over the term of the consulting agreement. The fair value of the stock-based compensation is periodically re-measured and expense is recognized during the vesting term. | |||
When determining stock-based compensation expense involving options and warrants, we determine the estimated fair value of options and warrants using the Black-Scholes option pricing model. | |||
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 September 30, 2013 and December 31, 2012. 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 for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period. | |||
We follow the relevant accounting guidance related to uncertain tax positions, which provisions include a two-step approach to recognizing, de-recognizing and measuring uncertain tax positions. As a result, we did not recognize a liability for unrecognized tax benefits. As of September 30, 2013 and December 31, 2012, we had no unrecognized tax benefits. | |||
Net Loss Per Share | |||
Net loss per share amounts have been computed based on the weighted-average number of shares of common stock outstanding during the period. Net loss per share, assuming dilution amounts from common stock equivalents, is computed based on the weighted-average number of shares of common stock and potential common stock equivalents outstanding during the period. The weighted-average number of shares of common stock and potential common stock equivalents used in computing the net loss per share for three and nine months ended September 30, 2013 and 2012 exclude the potential common stock equivalents, as the effect would be anti-dilutive (See Note 8). | |||
Comprehensive Income (Loss) | |||
Accounting Standards Codification (“ASC”) Topic 220, Comprehensive Income, establishes standards for reporting and displaying comprehensive income (loss) and its components in the condensed consolidated financial statements. Accumulated other comprehensive income (loss) includes foreign currency translation gains or losses as a result of consolidation. | |||
Cash Flow Information | |||
Cash flows in foreign currencies have been converted to U.S. dollars at an approximate weighted-average exchange rate for the respective reporting periods. | |||
The weighted-average exchange rate for the consolidated statements of operations and comprehensive loss was 6.55 and 6.67 Swedish Krona to one U.S. Dollar for the three months ended September 30, 2013 and 2012, respectively. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 6.51 and 6.79 Swedish Krona to one U.S. Dollar for the nine months ended September 30, 2013 and 2012, respectively. The exchange rate for the condensed consolidated balance sheets was 6.43 and 6.52 Swedish Krona to one U.S. Dollar as of September 30, 2013 and December 31, 2012, respectively. The weighted-average exchange rate for the consolidated statement of operations and comprehensive loss was 98.88 and 96.63 Japanese Yen to one U.S. Dollar for the three and nine months ended September 30, 2013, respectively. The exchange rate for the consolidated balance sheet was 98.22 Japanese Yen to one U.S. Dollar as of September 30, 2013. | |||
Recent Accounting Announcements | |||
Proposed Amendments to Current Accounting Standards. The FASB is currently working on current amendments to existing accounting standards governing a number of areas including, but not limited to, revenue recognition and lease accounting. | |||
In June 2010, FASB issued an exposure draft, Revenue from Contracts with Customers, which would supersede most of the existing guidance on revenue recognition in ASC Topic 605, Revenue Recognition. In November 2011, the FASB re-Exposed this draft and it expects a final standard to be issued in the first quarter of calendar 2014. As the standard-setting is still ongoing, the Company is unable to determine the impact this proposed change in accounting will have in the Company’s condensed consolidated financial statements at this time. | |||
In August 2010, the FASB issued and exposure draft, Leases, which would result in significant changes to the accounting requirements for both leases and lessors in APC Topic 840, Leases. In May 2013, the FASB re-exposed this draft and the comment period was closed in September 2013. As the standard-setting is still ongoing, the Company is unable to determine the impact this proposed change in accounting will have in the Company’s condensed consolidated financial statements at this time. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
3. Stockholders’ Equity | |||||||||||||
On February 29, 2012, the Company filed a Certificate of Correction with the Secretary of State of Delaware effectively reducing the amount of its authorized shares from 848,000,000 shares of Common Stock and 2,000,000 shares of Preferred Stock to 70,000,000 shares of Common Stock and 1,000,000 shares of Preferred Stock. This correction reflects the new capital structure of the Company following its 1-for-25 reverse split that became effective at the close of business on March 25, 2011. | |||||||||||||
On May 1, 2012, the Company began trading its common stock on the NASDAQ Stock Market under trading symbol NEON. | |||||||||||||
Common Stock | |||||||||||||
During the nine months ended September 30, 2013, warrant holders (excluding our CEO, CFO and member of our Board of Directors) exercised warrants to purchase 1,815,369 shares of common stock using the cashless exercise provision allowed in the warrant and received 1,384,719 shares of our common stock. In addition, warrant holders exercised warrants to purchase 424,536 shares of common stock and paid a cash exercise price ranging between $1.00 and $3.13 per share for total cash proceeds of $698,538. | |||||||||||||
On February 26, 2013, David Brunton, our CFO, exercised warrants to purchase 320,000 shares of common stock using the cashless exercise provision allowed in the warrant and received 266,228 shares of our common stock. | |||||||||||||
On August 12, 2013, Thomas Eriksson, our CEO, exercised warrants to purchase 400,000 shares of common stock using the cashless exercise provision allowed in the warrant and received 326,608 shares of our common stock. | |||||||||||||
On August 12, 2013, Per Bystedt, the Chairman of our Board of Directors (“Board”), exercised warrants to purchase 387,773 shares of common stock using the cashless exercise provision allowed in the warrant and received 316,624 shares of our common stock. | |||||||||||||
On August 12, 2013, Phenning Holdings Ltd, a company controlled by Per Bystedt, the Chairman of our Board, exercised warrants to purchase 227,661 shares of common stock using the cashless exercise provision allowed in the warrant and received 185,890 shares of our common stock. | |||||||||||||
On August 12, 2013, Davisa Ltd, a company controlled by Mats Dahlin, a member of our Board, exercised warrants to purchase 215,724 shares of common stock using the cashless exercise provision allowed in the warrant and received 176,143 shares of our common stock. | |||||||||||||
On August 12, 2013, John Reardon, a member of our Board, exercised warrants to purchase 80,000 shares of common stock using the cashless exercise provision allowed in the warrant and received 65,322 shares of our common stock. | |||||||||||||
On September 16, 2013, we issued 1,168,939 shares of our common stock to investors in connection with an equity financing transaction in which we raised approximately $7.7 million and received approximately $6.9 million in cash, net of direct offering costs including legal, audit and other regulatory costs of approximately $0.8 million. | |||||||||||||
Preferred Stock | |||||||||||||
On March 21, 2013, Series A Preferred stockholders exchanged 83 shares of Series A Preferred stock for 39,790 shares of our common stock, eliminating all Series A Preferred shares outstanding. | |||||||||||||
On February 27, 2013, Series B Preferred stockholders exchanged 4 shares of Series B Preferred stock for 528 shares of our common stock. | |||||||||||||
On March 21, 2013, Series B Preferred stockholders exchanged 8 shares of Series B Preferred stock for 929 shares of our common stock. | |||||||||||||
The terms of the Series A and Series B Preferred stock are as follows: | |||||||||||||
● | Dividends and Distributions. | ||||||||||||
Series A Preferred: | The holders of shares of Series A Preferred stock are entitled to participate with the holders of our common stock with respect to any dividends declared on the common stock in proportion to the number of shares of common stock issuable upon conversion of the shares of Series A Preferred stock held by them. | ||||||||||||
Series B Preferred: | The holders of shares of Series B Preferred stock are entitled to participate with the holders of our common stock with respect to any dividends declared on the common stock in proportion to the number of shares of common stock issuable upon conversion of the shares of Series B Preferred stock held by them. | ||||||||||||
● | Liquidation Preference. | ||||||||||||
Series A Preferred: | In the event of any liquidation, dissolution, or winding up of our operations, either voluntary or involuntary, subject to the rights of any other series of Preferred stock to be established by the Board of Directors (the “Senior Preferred Stock”), the holders of Series A Preferred stock shall be entitled to receive, after any distribution to the holders of Senior Preferred Stock and prior to and in preference to any distribution to the holders of common stock, $0.001 for each share of Series A Preferred stock then outstanding. | ||||||||||||
Series B Preferred: | In the event of any liquidation, dissolution, or winding up of our operations, either voluntary or involuntary, subject to the rights of the Series A Preferred stock and Senior Preferred Stock, the holders of Series B Preferred stock shall be entitled to receive, after any distribution to the holders of Senior Preferred Stock and prior to and in preference to any distribution to the holders of common stock, $0.001 for each share of Series B Preferred stock then outstanding. | ||||||||||||
● | Voting. | ||||||||||||
The holders of shares of Series A Preferred stock and Series B Preferred stock shall have one vote for each share of Series A Preferred stock and Series B Preferred stock held by them. | |||||||||||||
● | Conversion. | ||||||||||||
Initially, each share of Series A Preferred stock and each share of Series B Preferred stock was convertible into one share of our common stock. Any modification to the conversion rate requires shareholder approval (see below). On March 31, 2009, our shareholders approved a resolution to increase the authorized share capital, and to increase the conversion ratio to 480.63 shares of common stock for each share of Series A Preferred stock and to 132.07 shares of our common stock for each shares of Series B Preferred stock, thus completing the restructuring begun in December 2008. | |||||||||||||
Conversion of Preferred Stock Issued to Common Stock | |||||||||||||
On April 24, 2009, we initiated the process of allowing the shareholders of our preferred stock to convert the Series A and B Preferred stock to shares of our common stock. In order to convert the preferred stock to common stock each preferred stock shareholder is required to submit the preferred stock certificate to our transfer agent and request conversion to common stock. The conversion to common stock is not mandatory and shareholders who own preferred stock may choose not to convert their preferred stock to shares of our common stock. The following table summarizes the Preferred stock not yet converted as of September 30, 2013. | |||||||||||||
Shares of Preferred Stock Not Exchanged as of September 30, 2013 | Conversion Ratio | Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at September 30, 2013 | |||||||||||
Series B Preferred stock | 83 | 132.07 | 10,962 |
Deferred_Revenue
Deferred Revenue | 9 Months Ended |
Sep. 30, 2013 | |
Deferred Revenue [Abstract] | ' |
Deferred Revenue | ' |
4. Deferred Revenue | |
As of September 30, 2013 and December 31, 2012, we have $2.5 million and $2.1 million, respectively, of deferred license fee revenue related to prepayments for future license fees from three customers and a total of $1.0 million and $0.6 million, respectively, of deferred engineering development fees from seventeen and thirteen customers, respectively. We defer the license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed or licensed by the Company’s customers and the engineering development fee revenue until such time as the engineering work has been completed and accepted by our customers. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
5. Stock-Based Compensation | |||||||||||||||||
We have three approved stock option plans for which stock options and restricted stock awards are available to grant to employees, consultants and directors. All employee 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 are no vesting provisions tied to performance conditions for any options, as vesting for all outstanding option grants was based only on continued service as an employee, consultant or director. All of our outstanding stock options and restricted stock awards are classified as equity instruments. | |||||||||||||||||
Stock Options | |||||||||||||||||
As of September 30, 2013, we had two equity incentive plans: | |||||||||||||||||
● | The 1998 Non-Officer Stock Option Plan (the 1998 Plan), which expired in June 2008 ; | ||||||||||||||||
● | The 2006 Equity Incentive Plan (the 2006 Plan). | ||||||||||||||||
We also had one non-employee director stock option plan as of September 30, 2013: | |||||||||||||||||
● | The 2001 Non-Employee Director Stock Option Plan (the Director Plan), which expired in March 2011. | ||||||||||||||||
A summary of the combined activity under all of the stock option plans is set forth below: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Options | Average | ||||||||||||||||
Outstanding | Exercise | ||||||||||||||||
Price | |||||||||||||||||
Outstanding at January 1, 2013 | 1,715,200 | $ | 5.04 | ||||||||||||||
Granted | 130,000 | 6.12 | |||||||||||||||
Cancelled or expired | (18,256 | ) | 5.57 | ||||||||||||||
Exercised | (182,361 | ) | 4.44 | ||||||||||||||
Outstanding at September 30, 2013 | 1,644,583 | $ | 5.18 | ||||||||||||||
On May 6, 2013, the Company’s shareholders approved an increase of the number of common stock authorized for issuance as incentive stock options under the 2006 Plan by 2 million shares. | |||||||||||||||||
The aggregate intrinsic value of the 1,644,583 stock options that are outstanding, vested and expected to vest at September 30, 2013 is $3.2 million. | |||||||||||||||||
During the nine months ended September 30, 2013, the Company received an aggregate of $524,000 from four employees in connection with the exercise of stock options into 120,011 shares of common stock. During the nine months ended September 30, 2013, four option holders provided the Company with notice to exercise 62,350 stock options. The Company recorded a stock subscription receivable of $286,000 as of September 30, 2013 related to the net proceeds in consideration for the exercise of the 62,350 stock options. The proceeds were received in October 2013. The intrinsic value of the options exercised was $409,000 on the date of exercise. | |||||||||||||||||
We granted options to purchase 130,000 shares of our common stock to three employees during the nine months ended September 30, 2013 with an aggregate grant date fair value of $682,500 computed using the Black-Scholes option pricing model. The options have a 7-year life and 1/3 of the options are vested on the one year anniversary date of grant with the remaining to vest monthly over the remaining 24-months. | |||||||||||||||||
During the three and nine months ended September 30, 2012, we granted 45,000 and 1,145,000 options to purchase shares of our common stock to employees and 0 and 360,000 options to purchase shares of our common stock to members of our Board. The options have a 7-year life and 1/3 of the options are vested on the date of grant with the remaining to vest monthly over the remaining 24-months. | |||||||||||||||||
For the three and nine months ended September 30, 2013, the Company recorded $0.7 million and $1.9 million, respectively, of compensation expense related to the vesting of stock options. For the three and nine months ended September 30, 2012, the Company recorded $0.6 million and $2.9 million, respectively, of compensation expense related to the vesting of stock options. The fair value of the stock-based compensation was calculated using the Black-Scholes option pricing model as of the date of grant of the stock option. | |||||||||||||||||
See below for assumptions used in the valuation of stock options: | |||||||||||||||||
For the Nine | |||||||||||||||||
Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Annual dividend yield | -- | ||||||||||||||||
Expected life (years) | 4.3 | ||||||||||||||||
Risk-free interest rate | 0.65% - 1.33% | ||||||||||||||||
Expected volatility | 135% - 154% | ||||||||||||||||
For the Nine | |||||||||||||||||
Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2012 | |||||||||||||||||
Annual dividend yield | -- | ||||||||||||||||
Expected life (years) | 3.85 | ||||||||||||||||
Risk-free interest rate | 0.43% - 0.58% | ||||||||||||||||
Expected volatility | 177% - 186% | ||||||||||||||||
The 1998 Plan terminated effective June 15, 2008 and the Director Plan terminated effective March 2011. Although we can no longer issue stock options out of the plans, the outstanding options at the date of termination will remain outstanding and vest in accordance with their terms. Options granted under the Director Plan vested over a one to four-year period, expire five to seven years after the date of grant and have exercise prices reflecting market value of the shares of our common stock on the date of grant. Stock options granted under the 1998 and 2006 Plans are exercisable over a maximum term of ten 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. | |||||||||||||||||
Warrants | |||||||||||||||||
During the nine months ended September 30, 2013, certain warrant holders exercised their warrants under the cash and cashless exercise provisions, as defined in the agreements. See Note 3 for details of such exercises and number of common stock shares issued. | |||||||||||||||||
On December 3, 2010, we issued 120,000 warrants at an exercise price of $1.63 per share to an employee. The fair value of the warrants was $198,000 on the date of grant, using the Black-Scholes option pricing model, which has been amortized to expense over 24 months. During the nine months ended September 30, 2012, we recorded $25,000 of stock based compensation expense related to vesting of such warrants. | |||||||||||||||||
On September 12, 2011, we issued 20,000 three-year stock purchase warrants to an employee at an exercise price of $3.90 per share with a vesting period over 24 months. The warrant granted to an employee had a fair value on the date of grant of $75,000. This amount is expensed over the vesting period of which $6,000 and $25,000 and $9,000 and $28,000 of expense related to this warrant is included in product research and development expense for the three and nine months ended September 30, 2013 and 2012, respectively. The fair value of stock-based compensation related to the issuance of warrants is calculated using the Black-Scholes option pricing model as of the grant date of the underlying warrant. | |||||||||||||||||
On April 4, 2013, we extended a 40,000 stock purchase warrant with an exercise price of $1.00 per share that expired on January 28, 2013 that was issued to an investor in a previous convertible debt financing. The fair value of the warrant was $166,000 on the date of grant, using the Black-Scholes option pricing model, which has been expensed during the nine months ended September 30, 2013. The warrant holder exercised the warrant on April 4, 2013 and the Company received cash proceeds of $40,000 (see Note 3). | |||||||||||||||||
The stock-based compensation expense for the three and nine months ended September 30, 2013 and 2012 reflects the fair value of the vested portion of options and warrants granted to directors, employees and non-employees. Stock-based compensation expense in the accompanying consolidated statements of operations is as follows (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Product research and development | $ | 69 | $ | 73 | $ | 187 | $ | 260 | |||||||||
Sales and marketing | $ | 364 | 250 | 749 | 1,200 | ||||||||||||
General and administrative | $ | 329 | 284 | 1,165 | 1,497 | ||||||||||||
Stock compensation expense | $ | 762 | $ | 607 | $ | 2,101 | $ | 2,957 | |||||||||
Remaining unamortized | |||||||||||||||||
expense at | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Stock-based compensation | $ | 2,242 | |||||||||||||||
The remaining unamortized expense related to stock options will be recognized on a straight line basis monthly as compensation expense over the remaining vesting period which approximates 1.6 years. | |||||||||||||||||
The fair value of stock-based awards to employees is calculated using the Black-Scholes option pricing model, even though this model was developed to estimate the fair value of freely tradable, fully transferable options without vesting restrictions, which differ significantly from our stock options. The Black-Scholes option pricing model also requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term and forfeiture rate of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior, as well as expected behavior on outstanding options. The risk-free rate is based on the U.S. Treasury rates in effect during the corresponding period of grant. The expected volatility is based on the historical volatility of our stock price. These factors could change in the future, which would affect fair values of stock options granted in such future periods, and could cause volatility in the total amount of the stock-based compensation expense reported in future periods. | |||||||||||||||||
A summary of all warrant activity is set forth below: | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Outstanding and exercisable | Warrants | Weighted | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual | |||||||||||||||||
Life | |||||||||||||||||
1-Jan-13 | 4,704,636 | $ | 1.61 | 1.41 | |||||||||||||
Issued | -- | -- | -- | ||||||||||||||
Expired/forfeited | -- | -- | -- | ||||||||||||||
Exercised | (3,871,063 | ) | 1.45 | -- | |||||||||||||
Outstanding and exercisable, September 30, 2013 | 833,573 | $ | 2.4 | 2.31 | |||||||||||||
Below is a summary of Outstanding Warrants to Purchase | |||||||||||||||||
Common Stock as of September 30, 2013: | |||||||||||||||||
Description | Issue | Exercise | Shares | Expiration | |||||||||||||
Date | Price | Date | |||||||||||||||
August 2009 Employee Warrants | 8/25/09 | $ | 0.5 | 80,000 | 8/25/16 | ||||||||||||
2007 Debt Extension Warrants | 9/22/10 | $ | 1 | 16,000 | 9/22/15 | ||||||||||||
December 2010 Employee Warrants | 12/3/10 | $ | 1.63 | 200,000 | 12/3/15 | ||||||||||||
January 2011 Employee Warrant | 1/21/11 | $ | 2 | 7,000 | 1/21/14 | ||||||||||||
February 2011 Legal Advisor Warrant | 2/22/11 | $ | 2.5 | 80,000 | 2/22/16 | ||||||||||||
March 2011 Investor Warrants | 3/9/11 | $ | 3.13 | 376,473 | 3/9/16 | ||||||||||||
March 2011 Investor Warrants | 4/7/11 | $ | 3.13 | 34,100 | 4/7/16 | ||||||||||||
May 2011 Consultant Warrant | 5/17/11 | $ | 4.05 | 20,000 | 5/17/14 | ||||||||||||
September 2011 Employee Warrant | 9/12/11 | $ | 3.9 | 20,000 | 9/12/14 | ||||||||||||
Total Warrants Outstanding | 833,573 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
6. Commitments and Contingencies | |||||
Non-Recurring Engineering Development Costs | |||||
Neonode and Texas Instruments Inc. (“TI”) entered into an Analog Device Development Agreement (“2010 TI Agreement”) on January 24, 2010 where TI integrated Neonode’s intellectual property into an Application Specific Integrated Circuit (“ASIC”) developed by TI. The TI ASIC is designated as NN1001 and can be sold by TI exclusively to licensees of Neonode. Under the terms of the 2010 TI Agreement, Neonode is obligated to contribute $500,000 of non-recurring engineering development costs (“NRE”) to TI based on shipments of the NN1001. Neonode will contribute to TI the NRE as follows: | |||||
For each of the first one million units sold: $0.08 per unit. | |||||
For the next eight million units sold: $0.05 per unit. | |||||
In the three and nine months ended September 30, 2013, $74,000 and $344,000, respectively, of NRE expense related to this agreement is included in product research and development in the condensed consolidated statement of operations. Through September 30, 2013, the Company has made total payments of $344,000 under the 2010 TI Agreement. No amounts were recorded in the three and nine months ended September 30, 2012 as no shipments of NN1001 took place. | |||||
Neonode and TI entered into an additional Analog Device Development Agreement (“2013 TI Agreement”) on April 25, 2013 where TI will integrate Neonode’s intellectual property into an ASIC developed by TI. The TI ASIC is designated as NN1002 and can be sold by TI exclusively to licensees of Neonode. Under the terms of the 2013 TI Agreement, Neonode is obligated to contribute $500,000 of NRE to TI based on shipments of the NN1002. The NN1002 is currently in development and has not been released to mass production. | |||||
When the NN1002 is released in the future to mass production, Neonode will contribute to TI the NRE fee of $0.25 per unit for each of the first two million units sold. | |||||
Operating Leases | |||||
NTAB has a lease with Vasakronan Fastigheter AB for 2,723 square feet of office space located at Linnegatan 89D, Stockholm, Sweden for approximately $8,000 per month including property tax (excluding VAT). The annual payment for this space equates to approximately $93,000 per year including property tax (excluding VAT). This lease is valid thru December 31, 2014, with a nine month notice period. On September 12, 2013, the Company entered into a sublease agreement with Goo Technologies AB (“Goo”) for this office space. Goo will pay monthly sublease payment of approximately $9,700 to the Company until December 31, 2014. | |||||
On April 15, 2012, NTAB entered into a lease with No Picnic for 2,853 square feet of office space located at Storgatan 23C, Stockholm, Sweden for approximately $14,000 per month including property tax (excluding VAT). The annual payment for this space equates to approximately $174,000 per year including property tax (excluding VAT). This lease was valid through April 15, 2013. On April 16, 2013, this lease was extended for one year until April 15, 2014 under the same terms and conditions. Rent remained at approximately $14,000 per month including property tax (excluding VAT). This lease was terminated on July 1, 2013. | |||||
On March 22, 2012, we entered into a three year lease with 2350 Mission Investors LLC for 3,185 square feet of office space located at 2350 Mission College Blvd, Suite 190, Santa Clara, CA 95054 USA. The initial lease payment is $7,007 per month, increasing to $7,657 per month over the term of the lease. This lease is valid through July 31, 2015. The annual payment for this space equates to approximately $86,000 per year. | |||||
On October 12, 2012, we entered into a two year lease with Space Design Inc., Meiko Building 3F, 1-18-2 Shimbashi, Minato-ku, 105-0004 Tokyo for office space located at 608 Bureau Shinagawa, 4-1-6 Konan, Minato-ku, 108-0075 Tokyo, Japan. The lease payment is approximately $3,000 per month. This lease is valid through October 12, 2014. The annual payment for this space equates to approximately $36,000 per year. | |||||
On July 1, 2013, NTAB entered into a lease with No Picnic for 5,480 square feet of office space located at Storgatan 23C, Stockholm, Sweden for approximately $38,000 per month including property tax (excluding VAT). The annual payment for this space equates to approximately $458,000 per year including property tax (excluding VAT). This lease is valid through June 30, 2014. The lease can be extended on a yearly basis with three months written notice. | |||||
For the nine months ended September 30, 2013 and 2012, the Company recorded approximately $399,000 and $235,000, respectively, for rent expense. | |||||
A summary of future minimum payments under non-cancellable operating lease commitments as of September 30, 2013 is as follows (in thousands): | |||||
Year ending December 31, | Total | ||||
2013 (remaining three months) | $ | 140 | |||
2014 | 319 | ||||
2015 | 53 | ||||
$ | 512 |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
7. Segment Information | |||||||||||||||||
The Company has one reportable segment, which is comprised of the touchscreen technology licensing business. All of our sales for the three and nine months ended September 30, 2013 and 2012 were to customers located in the North America, Europe and Asia. | |||||||||||||||||
The following table presents net revenues by geographic region for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||
Net revenues from customers in North America | $ | 459 | 43 | % | $ | 877 | 52 | % | |||||||||
Net revenues from customers in Asia | 420 | 39 | % | 802 | 48 | % | |||||||||||
Net revenues from customers in Europe | 197 | 18 | % | -- | -- | ||||||||||||
$ | 1,076 | 100 | % | $ | 1,679 | 100 | % | ||||||||||
Nine months ended | Nine months ended | ||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||
Net revenues from customers in North America | $ | 1,208 | 45 | % | $ | 2,809 | 58 | % | |||||||||
Net revenues from customers in Asia | 1,193 | 44 | % | 2,008 | 42 | % | |||||||||||
Net revenues from customers in Europe | 307 | 11 | % | -- | -- | ||||||||||||
$ | 2,708 | 100 | % | $ | 4,817 | 100 | % | ||||||||||
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Net Loss Per Share [Abstract] | ' | ||||||||
Net Loss Per Share | ' | ||||||||
8. Net Loss Per Share | |||||||||
Basic net loss per common share for the three and nine months ended September 30, 2013 and 2012 was computed by dividing the net loss for the relevant period by the weighted average number of shares of common stock outstanding. Diluted earnings per common share is computed by dividing net loss by the weighted average number of shares of common stock and common stock equivalents outstanding. | |||||||||
Potential common stock equivalents of 413,000 and 103,000 stock options outstanding under the treasury stock method, 0.5 million and 3.2 million outstanding stock warrants under the treasury stock method and 11,000 and 52,000 shares issuable upon conversion of preferred stock are excluded from the diluted earnings per share calculation for the nine months ended September 30, 2013 and 2012, respectively, due to their anti-dilutive effect. | |||||||||
Three Months ended | |||||||||
(in thousands, except per share amounts) | September 30, | ||||||||
2013 | 2012 | ||||||||
BASIC AND DILUTED | |||||||||
Weighted average number of common shares outstanding | 35,437 | 33,021 | |||||||
Number of shares for computation of net loss per share | 35,437 | 33,021 | |||||||
Net loss | $ | (3,343 | ) | $ | (2,144 | ) | |||
Net loss per share - basic and diluted | $ | (0.09 | ) | $ | (0.06 | ) | |||
Nine Months ended | |||||||||
(in thousands, except per share amounts) | September 30, | ||||||||
2013 | 2012 | ||||||||
BASIC AND DILUTED | |||||||||
Weighted average number of common shares outstanding | 34,366 | 32,934 | |||||||
Number of shares for computation of net loss per share | 34,366 | 32,934 | |||||||
Net loss | $ | (10,033 | ) | $ | (7,159 | ) | |||
Net loss per share - basic and diluted | $ | (0.29 | ) | $ | (0.22 | ) |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
9. Subsequent Events | |
We have evaluated subsequent events through the filing date of this Form 10-Q, and have determined that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes thereto. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
Fiscal Year | ' | ||
Fiscal Year | |||
Our fiscal year is the calendar year. | |||
Principles of Consolidation | ' | ||
Principles of Consolidation | |||
The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of Neonode Inc. and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. | |||
The condensed consolidated statements of operations, and comprehensive loss for the three and nine months ended September 30, 2012 and consolidated statement of cash flows for the nine months ended September 30, 2012 include our accounts and those of our wholly owned subsidiary, Neonode Technologies AB (Sweden) (“NTAB”). All significant intercompany accounts and transactions have been eliminated. | |||
The condensed consolidated balance sheet at September 30, 2013 and the condensed consolidated statements of operations, and comprehensive loss for the three and nine months ended September 30, 2013 and consolidated statements of cash flows for the nine months ended September 30, 2013 include our accounts and those of our wholly owned subsidiaries, NTAB, Neonode Americas Inc. (U.S.) (“NAI”), Neonode KK (Japan) (“NJK”), NEON Technology Inc. (U.S.) (“NTI”) and Neonode UI AB (Sweden) (“NUIAB”). All significant intercompany accounts and transactions have been eliminated. | |||
Estimates | ' | ||
Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires making estimates and assumptions 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 during the reporting periods. Actual results could differ from these estimates. Significant estimates include, but are not limited to, collectability of accounts receivable, recoverability of long-lived assets, the valuation allowance related to our deferred tax assets and the fair value of securities, such as options and warrants issued for stock-based compensation. | |||
Cash | ' | ||
Cash | |||
We have not had any liquid investments other than normal cash deposits with bank institutions to date. If in the future the Company purchases cash equivalents, the Company will consider all highly liquid investments with original maturities of three months of less to be cash equivalents. | |||
Concentration of Cash Balance Risks | ' | ||
Concentration of Cash Balance Risks | |||
Cash balances are maintained at various banks in the U.S., Japan and Sweden. At times, deposits held with financial institutions in the United States of America may exceed the amount of insurance provided by the Federal Deposit Insurance Corporation (“FDIC”), which provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 100,000 euro per customer and covers deposits in all types of accounts. The Japanese government provides insurance coverage up to 10,000,000 Yen per customer. As of September 30, 2013, the Company has approximately $9.3 million in excess of insurance limits. | |||
Accounts Receivable and Allowance for Doubtful Accounts | ' | ||
Accounts Receivable and Allowance for Doubtful Accounts | |||
Our accounts receivable are stated at net realizable value. Our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make required payments. Credit limits are established through a process of reviewing the financial history and stability of each customer. Where appropriate, we obtain credit rating reports and financial statements of the customer when determining or modifying its credit limits. We regularly evaluate the collectability of our trade receivable balances based on a combination of factors. When a customer’s account balance becomes past due, we initiate dialogue with the customer to determine the cause. If it is determined that the customer will be unable to meet its financial obligation, such as in the case of a bankruptcy filing, deterioration in the customer’s operating results or financial position or other material events impacting its business, we record a specific allowance to reduce the related receivable to the amount we expect to recover. Should all efforts fail to recover the related receivable, we will write-off the account. We also record an allowance for all customers based on certain other factors including the length of time the receivables are past due and historical collection experience with customers. We determined that an allowance for doubtful accounts was not necessary at September 30, 2013 or December 31, 2012. | |||
Property and Equipment | ' | ||
Property and Equipment | |||
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based upon estimated useful lives of the assets ranging from three to five years as follows: | |||
Computer equipment | 3 years | ||
Furniture and fixtures | 5 years | ||
Equipment purchased under capital leases is amortized on a straight-line basis over the estimated useful life of the asset or the term of the lease, whichever is shorter. | |||
Upon retirement or sale of property and equipment, cost and accumulated depreciation and amortization are removed from the accounts and any gains or losses are reflected in the consolidated statement of operations. Maintenance and repairs are charged to expense as incurred. | |||
Long-lived Assets | ' | ||
Long-lived Assets | |||
We assess any impairment by estimating the future cash flow from the associated asset in accordance with relevant accounting guidance. If the estimated undiscounted future cash flow related to these assets decreases or the useful life is shorter than originally estimated, we may incur charges for impairment of these assets. At September 30, 2013, we believe there is no impairment of our long-lived assets. There can be no assurance, however, that market conditions will not change or sufficient commercial demand for our products and services will materialize, which could result in impairment of long-lived assets in the future. | |||
Foreign Currency Translation and Transaction Gains and Losses | ' | ||
Foreign Currency Translation and Transaction Gains and Losses | |||
The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona or the Japanese Yen. The translation from Swedish Krona or Japanese Yen 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. Foreign currency translation gain (loss) were $(46,000) and $67,000 for the three months ended September 30, 2013 and 2012, respectively, and were $8,000 and $39,000 for the nine months ended September 30, 2013 and 2012, respectively. Gains or losses resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Gains or (losses) resulting from foreign currency transactions are included in general and administrative expense in the accompanying condensed consolidated statements of operations. Foreign currency transaction gains (losses) were $(33,000) and $71,000 during the three months ended September 30, 2013 and 2012, respectively, and $157,000 and $82,000 during the nine months ended September 30, 2013 and 2012, respectively. | |||
Concentration of Credit and Business Risks | ' | ||
Concentration of Credit and Business Risks | |||
Our accounts receivable as of September 30, 2013 was due from sixteen customers, one of which accounted for 31% of our accounts receivable as of September 30, 2013. | |||
Our accounts receivable as of December 31, 2012 was due from fifteen customers, none of which accounted for more than 10% of our accounts receivable as of December 31, 2012. | |||
Our net revenues for the three months ended September 30, 2013 were earned from fifteen customers. Our customers are located in North America, Europe and Asia. Customers who accounted for 10% or more of our net revenues during the three months ended September 30, 2013 are as follows: | |||
● | Leap Frog Enterprises Inc. - 36% | ||
● | Sony Corporation – 16% | ||
● | Pro Point – 12% | ||
Our net revenues for the nine months ended September 30, 2013 were earned from twenty-five customers. Our customers are located in North America, Europe and Asia. Customers who accounted for 10% or more of our net revenues during the nine months ended September 30, 2013 are as follows: | |||
● | Kobo Inc. - 19% | ||
● | Leap Frog Enterprises Inc. - 16% | ||
● | Sony Corporation – 15% | ||
● | Netronix Inc. – 14% | ||
Our net revenues for the three months ended September 30, 2012 was earned from nine customers. Our customers are located in North America, Europe and Asia. Customers who accounted for 10% or more of our net revenues during the three months ended September 30, 2012 are as follows: | |||
● | Amazon - 31% | ||
● | Kobo Inc. - 27% | ||
● | Sony Corporation. -18% | ||
● | Barnes & Noble – 13% | ||
Our net revenues for the nine months ended September 30, 2012 was earned from eighteen customers. Our customers are located in North America, Europe and Asia. Customers who accounted for 10% or more of our net revenues during the nine months ended September 30, 2012 are as follows: | |||
● | Amazon - 46% | ||
● | Kobo Inc. -16% | ||
● | Sony Corporation – 14% | ||
Revenue Recognition | ' | ||
Revenue Recognition | |||
Licensing Revenues: | |||
We derive revenue from the licensing of internally developed intellectual property (“IP”). We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. The IP licensing agreements generally include a nonexclusive license for the underlying IP. Fees under these agreements may include license fees relating to our IP and royalties payable 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. Neonode meets all the accounting requirements for revenue recognition as per unit royalty products are distributed or licensed by the Company’s customers. For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when: (1) we enter into a legally binding arrangement with a customer for the license of technology; (2) the customer distributes or licenses the products; (3) the customer payment is deemed fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is reasonably assured. Our customers report to us the quantities of products distributed or licensed by them after the end of the reporting period stipulated in the contract, generally 30 to 45 days after the end of the month or quarter. | |||
Explicit return rights are not offered to customers. There have been no returns through September 30, 2013. | |||
Engineering Services: | |||
We may sell engineering consulting services to our customers on a flat rate or hourly rate basis. We recognize revenue from these services when all of the following conditions are met: (1) evidence existed of an arrangement with the customer, typically consisting of a purchase order or contract; (2) our services were performed and risk of loss passed to the customer; (3) we completed all of the necessary terms of the contract; (4) the amount of revenue to which we were entitled was fixed or determinable; and (5) we believed it was probable that we would be able to collect the amount due from the customer. To the extent that one or more of these conditions has not been satisfied, we defer recognition of revenue. Generally, we recognize revenue as the engineering services stipulated under the contract are completed and accepted by our customers. | |||
Deferred Revenue | ' | ||
Deferred Revenue | |||
From time-to-time the Company receives pre-payments from its customers related to future services or future license fee revenues. We defer the license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed or licensed by the Company’s customers and the engineering development fee revenue until such time as the engineering work has been completed and accepted by our customers. | |||
Advertising | ' | ||
Advertising | |||
Advertising costs are expensed as incurred. Advertising costs for the three and nine months ended September 30, 2013 and 2012 amounted to approximately $31,000 and $20,000, and $160,000 and $302,000, respectively. | |||
Product Research and Development | ' | ||
Product Research and Development | |||
Research and development (“R&D”) costs are expensed as incurred. R&D costs consist mainly of personnel related costs in addition to some external consultancy costs such as testing, certifying and measurements. | |||
Stock-Based Compensation Expense | ' | ||
Stock-Based Compensation Expense | |||
We measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the fair value of the award on the grant date, and recognize the value as compensation expense over the period the employee is required to provide services in exchange for the award, usually the vesting period, net of estimated forfeitures. | |||
We account for equity instruments issued to non-employees at their fair value. The measurement date for the fair value for the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached, or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instruments is primarily recognized over the term of the consulting agreement. The fair value of the stock-based compensation is periodically re-measured and expense is recognized during the vesting term. | |||
When determining stock-based compensation expense involving options and warrants, we determine the estimated fair value of options and warrants using the Black-Scholes option pricing model. | |||
Income Taxes | ' | ||
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 September 30, 2013 and December 31, 2012. 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 for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period. | |||
We follow the relevant accounting guidance related to uncertain tax positions, which provisions include a two-step approach to recognizing, de-recognizing and measuring uncertain tax positions. As a result, we did not recognize a liability for unrecognized tax benefits. As of September 30, 2013 and December 31, 2012, we had no unrecognized tax benefits. | |||
Net Loss Per Share | ' | ||
Net Loss Per Share | |||
Net loss per share amounts have been computed based on the weighted-average number of shares of common stock outstanding during the period. Net loss per share, assuming dilution amounts from common stock equivalents, is computed based on the weighted-average number of shares of common stock and potential common stock equivalents outstanding during the period. The weighted-average number of shares of common stock and potential common stock equivalents used in computing the net loss per share for three and nine months ended September 30, 2013 and 2012 exclude the potential common stock equivalents, as the effect would be anti-dilutive (See Note 8). | |||
Comprehensive Income (Loss) | ' | ||
Comprehensive Income (Loss) | |||
Accounting Standards Codification (“ASC”) Topic 220, Comprehensive Income, establishes standards for reporting and displaying comprehensive income (loss) and its components in the condensed consolidated financial statements. Accumulated other comprehensive income (loss) includes foreign currency translation gains or losses as a result of consolidation. | |||
Cash Flow Information | ' | ||
Cash Flow Information | |||
Cash flows in foreign currencies have been converted to U.S. dollars at an approximate weighted-average exchange rate for the respective reporting periods. | |||
The weighted-average exchange rate for the consolidated statements of operations and comprehensive loss was 6.55 and 6.67 Swedish Krona to one U.S. Dollar for the three months ended September 30, 2013 and 2012, respectively. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 6.51 and 6.79 Swedish Krona to one U.S. Dollar for the nine months ended September 30, 2013 and 2012, respectively. The exchange rate for the condensed consolidated balance sheets was 6.43 and 6.52 Swedish Krona to one U.S. Dollar as of September 30, 2013 and December 31, 2012, respectively. The weighted-average exchange rate for the consolidated statement of operations and comprehensive loss was 98.88 and 96.63 Japanese Yen to one U.S. Dollar for the three and nine months ended September 30, 2013, respectively. The exchange rate for the consolidated balance sheet was 98.22 Japanese Yen to one U.S. Dollar as of September 30, 2013. | |||
Recent Accounting Announcements | ' | ||
Recent Accounting Announcements | |||
Proposed Amendments to Current Accounting Standards. The FASB is currently working on current amendments to existing accounting standards governing a number of areas including, but not limited to, revenue recognition and lease accounting. | |||
In June 2010, FASB issued an exposure draft, Revenue from Contracts with Customers, which would supersede most of the existing guidance on revenue recognition in ASC Topic 605, Revenue Recognition. In November 2011, the FASB re-Exposed this draft and it expects a final standard to be issued in the first quarter of calendar 2014. As the standard-setting is still ongoing, the Company is unable to determine the impact this proposed change in accounting will have in the Company’s condensed consolidated financial statements at this time. | |||
In August 2010, the FASB issued and exposure draft, Leases, which would result in significant changes to the accounting requirements for both leases and lessors in APC Topic 840, Leases. In May 2013, the FASB re-exposed this draft and the comment period was closed in September 2013. As the standard-setting is still ongoing, the Company is unable to determine the impact this proposed change in accounting will have in the Company’s condensed consolidated financial statements at this time. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |
Sep. 30, 2013 | ||
Summary of Significant Accounting Policies [Abstract] | ' | |
Estimated useful lives of property and equipment | ' | |
Computer equipment | 3 years | |
Furniture and fixtures | 5 years | |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||
Schedule of conversion of preferred stock issued to common stock | ' | ||||||||||||
Shares of Preferred Stock Not Exchanged as of September 30, 2013 | Conversion Ratio | Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at September 30, 2013 | |||||||||||
Series B Preferred stock | 83 | 132.07 | 10,962 | ||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Summary of assumptions used to value stock options granted to employees and directors | ' | ||||||||||||||||
For the Nine | |||||||||||||||||
Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Annual dividend yield | -- | ||||||||||||||||
Expected life (years) | 4.3 | ||||||||||||||||
Risk-free interest rate | 0.65% - 1.33% | ||||||||||||||||
Expected volatility | 135% - 1.54% | ||||||||||||||||
For the Nine | |||||||||||||||||
Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2012 | |||||||||||||||||
Annual dividend yield | -- | ||||||||||||||||
Expected life (years) | 3.85 | ||||||||||||||||
Risk-free interest rate | 0.43% - 0.58% | ||||||||||||||||
Expected volatility | 177% - 186% | ||||||||||||||||
Summary of stock-based compensation expense | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Product research and development | $ | 69 | $ | 73 | $ | 187 | $ | 260 | |||||||||
Sales and marketing | $ | 364 | 250 | 749 | 1,200 | ||||||||||||
General and administrative | $ | 329 | 284 | 1,165 | 1,497 | ||||||||||||
Stock compensation expense | $ | 762 | $ | 607 | $ | 2,101 | $ | 2,957 | |||||||||
Remaining unamortized | |||||||||||||||||
expense at | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Stock-based compensation | $ | 2,242 | |||||||||||||||
Summary of all warrant activity | ' | ||||||||||||||||
30-Sep-13 | |||||||||||||||||
Outstanding and exercisable | Warrants | Weighted | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual | |||||||||||||||||
Life | |||||||||||||||||
1-Jan-13 | 4,704,636 | $ | 1.61 | 1.41 | |||||||||||||
Issued | -- | -- | -- | ||||||||||||||
Expired/forfeited | -- | -- | -- | ||||||||||||||
Exercised | (3,871,063 | ) | 1.45 | -- | |||||||||||||
Outstanding and exercisable, September 30, 2013 | 833,573 | $ | 2.4 | 2.31 | |||||||||||||
Summary of outstanding warrants to purchase common stock | ' | ||||||||||||||||
Description | Issue | Exercise | Shares | Expiration | |||||||||||||
Date | Price | Date | |||||||||||||||
August 2009 Employee Warrants | 8/25/09 | $ | 0.5 | 80,000 | 8/25/16 | ||||||||||||
2007 Debt Extension Warrants | 9/22/10 | $ | 1 | 16,000 | 9/22/15 | ||||||||||||
December 2010 Employee Warrants | 12/3/10 | $ | 1.63 | 200,000 | 12/3/15 | ||||||||||||
January 2011 Employee Warrant | 1/21/11 | $ | 2 | 7,000 | 1/21/14 | ||||||||||||
February 2011 Legal Advisor Warrant | 2/22/11 | $ | 2.5 | 80,000 | 2/22/16 | ||||||||||||
March 2011 Investor Warrants | 3/9/11 | $ | 3.13 | 376,473 | 3/9/16 | ||||||||||||
March 2011 Investor Warrants | 4/7/11 | $ | 3.13 | 34,100 | 4/7/16 | ||||||||||||
May 2011 Consultant Warrant | 5/17/11 | $ | 4.05 | 20,000 | 5/17/14 | ||||||||||||
September 2011 Employee Warrant | 9/12/11 | $ | 3.9 | 20,000 | 9/12/14 | ||||||||||||
Total Warrants Outstanding | 833,573 | ||||||||||||||||
Stock Options [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Summary of all stock option plans / warrant activity | ' | ||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average | ||||||||||||||||
Options | Exercise | ||||||||||||||||
Outstanding | Price | ||||||||||||||||
Outstanding at January 1, 2013 | 1,715,200 | $ | 5.04 | ||||||||||||||
Granted | 130,000 | 6.12 | |||||||||||||||
Cancelled or expired | (18,256 | ) | 5.57 | ||||||||||||||
Exercised | (182,361 | ) | 4.44 | ||||||||||||||
Outstanding at September 30, 2013 | 1,644,583 | $ | 5.18 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Summary of future minimum payments under non-cancellable operating lease commitments | ' | ||||
Year ending December 31, | Total | ||||
2013 (remaining three months) | $ | 140 | |||
2014 | 319 | ||||
2015 | 53 | ||||
$ | 512 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Summary of net revenues by geographic region | ' | ||||||||||||||||
The following table presents net revenues by geographic region for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||
Net revenues from customers in North America | $ | 459 | 43 | % | $ | 877 | 52 | % | |||||||||
Net revenues from customers in Asia | 420 | 39 | % | 802 | 48 | % | |||||||||||
Net revenues from customers in Europe | 197 | 18 | % | -- | -- | ||||||||||||
$ | 1,076 | 100 | % | $ | 1,679 | 100 | % | ||||||||||
Nine months ended | Nine months ended | ||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||
Net revenues from customers in North America | $ | 1,208 | 45 | % | $ | 2,809 | 58 | % | |||||||||
Net revenues from customers in Asia | 1,193 | 44 | % | 2,008 | 42 | % | |||||||||||
Net revenues from customers in Europe | 307 | 11 | % | -- | -- | ||||||||||||
$ | 2,708 | 100 | % | $ | 4,817 | 100 | % |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Net Loss Per Share [Abstract] | ' | ||||||||
Basic and diluted for net loss per share | ' | ||||||||
Three Months ended | |||||||||
(in thousands, except per share amounts) | September 30, | ||||||||
2013 | 2012 | ||||||||
BASIC AND DILUTED | |||||||||
Weighted average number of common shares outstanding | 35,437 | 33,021 | |||||||
Number of shares for computation of net loss per share | 35,437 | 33,021 | |||||||
Net loss | $ | (3,343 | ) | $ | (2,144 | ) | |||
Net loss per share - basic and diluted | $ | (0.09 | ) | $ | (0.06 | ) | |||
Nine Months ended | |||||||||
(in thousands, except per share amounts) | September 30, | ||||||||
2013 | 2012 | ||||||||
BASIC AND DILUTED | |||||||||
Weighted average number of common shares outstanding | 34,366 | 32,934 | |||||||
Number of shares for computation of net loss per share | 34,366 | 32,934 | |||||||
Net loss | $ | (10,033 | ) | $ | (7,159 | ) | |||
Net loss per share - basic and diluted | $ | (0.29 | ) | $ | (0.22 | ) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Computer equipment [Member] | ' |
Estimated useful lives of property and equipment | ' |
Estimated useful lives | '3 years |
Furniture and fixtures [Member] | ' |
Estimated useful lives of property and equipment | ' |
Estimated useful lives | '5 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Customers | Leap Frog Enterprises Inc [Member] | Leap Frog Enterprises Inc [Member] | Amazon [Member] | Amazon [Member] | Kobo Inc [Member] | Kobo Inc [Member] | Kobo Inc [Member] | Sony Corporation [Member] | Sony Corporation [Member] | Sony Corporation [Member] | Sony Corporation [Member] | Netronix Inc [Member] | BYD Precision Manufacture Company Limited [Member] | Pro Point [Member] | Minimum [Member] | Maximum [Member] | US [Member] | Sweden [Member] | Japan [Member] | |
Customers | Customers | Customers | Customers | USD ($) | EUR (€) | JPY (¥) | ||||||||||||||||||
Summary of Significant Accounting Policies (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic deposit coverage limits per owner and customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | € 100,000 | ¥ 10,000,000 |
Entity-Wide Revenue, Major Customer, Percentage | ' | ' | ' | ' | ' | 36.00% | 16.00% | 31.00% | 46.00% | 27.00% | 19.00% | 16.00% | 16.00% | 18.00% | 15.00% | 14.00% | 14.00% | 13.00% | 12.00% | ' | ' | ' | ' | ' |
Percentage of net revenues earned from major customers | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Days of reporting period stipulated in the contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '45 days | ' | ' | ' |
Excess of insurance limits | 9,300,000 | ' | 9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains or (losses) resulting from foreign currency transactions | -33,000 | 71,000 | 157,000 | 82,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation gain (loss) | -46,000 | 67,000 | 8,000 | 39,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, Number of major customer | ' | ' | 16 | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue earned, Number of customers | 15 | 9 | 25 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable due by three major customers | 54.00% | ' | 54.00% | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | $31,000 | $20,000 | $302,000 | $160,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average exchange rate for consolidated statements of operations (Swedish Krona to one U.S. Dollar) | 6.51 | 6.79 | 6.43 | 6.52 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange rate for the consolidated balance sheets (Swedish Krona to one U.S. Dollar) | 6.7 | ' | 6.7 | ' | 6.52 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average exchange rate for consolidated statements of operations (Japanese Yen to one U.S. Dollar) | 98.88 | ' | 96.63 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange rate for the consolidated balance sheets (Japanese Yen to one U.S. Dollar) | 98.22 | ' | 98.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) | 0 Months Ended | 9 Months Ended | |
Mar. 21, 2013 | Feb. 27, 2013 | Sep. 30, 2013 | |
Series A Preferred Stock [Member] | ' | ' | ' |
Schedule of conversion of preferred stock issued to common stock | ' | ' | ' |
Conversion Ratio | ' | ' | 480.63 |
Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at June 30, 2013 | 83 | 8 | ' |
Series B Preferred Stock [Member] | ' | ' | ' |
Schedule of conversion of preferred stock issued to common stock | ' | ' | ' |
Shares of Preferred Stock Not Exchanged as of June 30, 2013 | ' | ' | 83 |
Conversion Ratio | ' | ' | 132.07 |
Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at June 30, 2013 | ' | 4 | 10,962 |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||||
Sep. 16, 2013 | Mar. 21, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 26, 2013 | Aug. 12, 2013 | Aug. 12, 2013 | Aug. 12, 2013 | Aug. 12, 2013 | Mar. 21, 2013 | Feb. 27, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 27, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 21, 2013 | Feb. 27, 2013 | Aug. 12, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
David Brunton [Member] | Thomas Eriksson [Member] | Per Bystedt [Member] | John Reardon [Member] | Mats Dahlin [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock | Common Stock | Common Stock | Warrant [Member] | Warrant [Member] | ||||||||
Per Bystedt [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||
Stockholders Equity (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of Stock, Shares Issued | ' | 39,790 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 929 | 528 | ' | ' | ' |
Conversion of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83 | 8 | ' | ' | 4 | 10,962 | ' | ' | ' | ' | ' | ' |
Preferred stock, liquidation preference | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' |
Preferred stock conversion ratio per share of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 480.63 | ' | ' | 132.07 | ' | ' | ' | ' | ' | ' |
Common Stock, Value | ' | ' | $38,000 | ' | $33,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'One vote for each share | ' | ' | 'One vote for each share | ' | ' | ' | ' | ' | ' |
Conversion of warrant into common stock, shares converted | ' | ' | 1,384,719 | ' | ' | ' | ' | 266,228 | 326,608 | 316,624 | 65,322 | 176,143 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 185,890 | ' | ' |
Value of warrants | ' | ' | 698,538 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 3.13 |
Common stock issuable upon exercise of warrants | ' | ' | 1,815,369 | ' | ' | ' | ' | 320,000 | 400,000 | 387,773 | 80,000 | 215,724 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 227,661 | ' | ' |
Common stock issuable upon exercise of additional warrants | ' | ' | 424,536 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | 70,000,000 | ' | 70,000,000 | 70,000,000 | 848,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | ' | 1,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | 444,541 | 444,541 | ' | 54,425 | 54,425 | ' | ' | ' | ' | ' |
Stockholders' equity, reverse stock split | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1-for-25 | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock, net of offering costs | 6,900,000 | ' | 6,899,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with equity financing transaction | 7,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with equity financing transaction, Shares | 1,168,939 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock offering costs | $800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred_Revenue_Details
Deferred Revenue (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Customers | Customers | |
Deferred Revenue (Textual) | ' | ' |
Deferred fees | $3,479 | $2,725 |
Prepayments from future license fees [Member] | ' | ' |
Deferred Revenue (Textual) | ' | ' |
Deferred fees | 2,500 | 2,100 |
Number of customer | 3 | ' |
Deferred engineering development fees [Member] | ' | ' |
Deferred Revenue (Textual) | ' | ' |
Deferred fees | $1,000 | $600 |
Number of customer | 17 | 13 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (Stock Options [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Options [Member] | ' |
Summary of all stock option plans / warrant activity | ' |
Number of Options/Warrants Outstanding, Beginning Balance | 1,715,200 |
Number of Options/Warrants Outstanding, Granted | 130,000 |
Number of Options/Warrants Outstanding, Cancelled or expired | -18,256 |
Number of Options/Warrants Outstanding, Exercised | -182,361 |
Number of Options/Warrants Outstanding, Ending Balance | 1,644,583 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $5.04 |
Weighted Average Exercise Price, Granted | $6.12 |
Weighted Average Exercise Price, Expired | $5.57 |
Weighted Average Exercise Price, Exercised | $4.44 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $5.18 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Summary of assumptions used to value stock options granted to employees | ' | ' |
Annual dividend yield | ' | ' |
Expected life (years) | '4 years 3 months 18 days | '3 years 10 months 6 days |
Minimum [Member] | ' | ' |
Summary of assumptions used to value stock options granted to employees | ' | ' |
Risk-free interest rate | 0.65% | 0.43% |
Expected volatility | 135.00% | 177.00% |
Maximum [Member] | ' | ' |
Summary of assumptions used to value stock options granted to employees | ' | ' |
Risk-free interest rate | 1.33% | 0.58% |
Expected volatility | 154.00% | 186.00% |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Summary of stock-based compensation expense | ' | ' | ' | ' |
Share-based compensation expense | $762 | $607 | $2,101 | $2,957 |
Remaining unamortized expense of stock-based compensation | 2,242 | ' | 2,242 | ' |
Product research and development [Member] | ' | ' | ' | ' |
Summary of stock-based compensation expense | ' | ' | ' | ' |
Share-based compensation expense | 187 | 73 | 69 | 260 |
Sales and marketing [Member] | ' | ' | ' | ' |
Summary of stock-based compensation expense | ' | ' | ' | ' |
Share-based compensation expense | 749 | 250 | 364 | 1,200 |
General and administrative [Member] | ' | ' | ' | ' |
Summary of stock-based compensation expense | ' | ' | ' | ' |
Share-based compensation expense | $1,165 | $284 | $329 | $1,497 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) (Warrant [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Warrant [Member] | ' |
Summary of all stock option plans / warrant activity | ' |
Number of Options/Warrants Outstanding, Beginning Balance | 4,704,636 |
Warrants, Issued | ' |
Warrants, Expired/forfeited | ' |
Number of Options/Warrants Outstanding, Exercised | -3,871,063 |
Number of Options/Warrants Outstanding, Ending Balance | 833,573 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $1.61 |
Weighted Average Exercise Price, Issued | ' |
Weighted Average Exercise Price, Expired/forfeited | ' |
Weighted Average Exercise Price, Exercised | $1.45 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $2.40 |
Weighted Average Remaining Contractual Life, Outstanding and exercisable | '1 year 4 months 28 days |
Weighted Average Remaining Contractual Life, Issued | ' |
Weighted Average Remaining Contractual Life, Expired/forfeited | ' |
Weighted Average Remaining Contractual Life, Exercised | '2 years 3 months 22 days |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 4) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of outstanding warrants to purchase common stock | ' |
Shares | 833,573 |
August 2009 Employee Warrants [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 25-Aug-09 |
Exercise Price | $0.50 |
Shares | 80,000 |
Expiration Date | 25-Aug-16 |
2007 Debt Extension Warrants [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 22-Sep-10 |
Exercise Price | $1 |
Shares | 16,000 |
Expiration Date | 22-Sep-15 |
December 2010 Employee Warrants [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 3-Dec-10 |
Exercise Price | $1.63 |
Shares | 200,000 |
Expiration Date | 3-Dec-15 |
January 2011 Employee Warrant [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 21-Jan-11 |
Exercise Price | $2 |
Shares | 7,000 |
Expiration Date | 21-Jan-14 |
February 2011 Legal Advisor Warrant [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 22-Feb-11 |
Exercise Price | $2.50 |
Shares | 80,000 |
Expiration Date | 22-Feb-16 |
March 2011 Investor Warrants One [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 7-Apr-11 |
Exercise Price | $3.13 |
Shares | 34,100 |
Expiration Date | 7-Apr-16 |
March 2011 Investor Warrants [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 9-Mar-11 |
Exercise Price | $3.13 |
Shares | 376,473 |
Expiration Date | 9-Mar-16 |
May 2011 Consultant Warrant [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 17-May-11 |
Exercise Price | $4.05 |
Shares | 20,000 |
Expiration Date | 17-May-14 |
September 2011 Employee Warrant [Member] | ' |
Summary of outstanding warrants to purchase common stock | ' |
Issue Date | 12-Sep-11 |
Exercise Price | $3.90 |
Shares | 20,000 |
Expiration Date | 9-Dec-14 |
StockBased_Compensation_Detail5
Stock-Based Compensation (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | 6-May-13 | Sep. 30, 2013 | Apr. 04, 2013 | Dec. 03, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 12, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Plans | Board Member [Member] | Board Member [Member] | Employees [Member] | Employees [Member] | Stock Options [Member] | Stock Options [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | 1998 Non-Officer Stock Option Plan [Member] | 1998 Non-Officer Stock Option Plan [Member] | 1998 Non-Officer Stock Option Plan [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | 2001 Non-Employee Director Stock Option Plan [Member] | 2001 Non-Employee Director Stock Option Plan [Member] | 2001 Non-Employee Director Stock Option Plan [Member] | Three Year Stock Purchase Warrants [Member] | Three Year Stock Purchase Warrants [Member] | Three Year Stock Purchase Warrants [Member] | Three Year Stock Purchase Warrants [Member] | Three Year Stock Purchase Warrants [Member] | |||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||||||||||
Stock-Based Compensation (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'June 2008 | ' | ' | ' | ' | ' | 'March 2011 | ' | ' | ' | ' | ' | ' | ' |
Options outstanding, vested and expected to vest, outstanding, number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,644,583 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding, vested and expected to vest, aggregate intrinsic value | $524,000 | ' | $524,000 | ' | ' | ' | ' | ' | ' | ' | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional common stock authorized for issuance as incentive stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued upon exercise of warrants, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 409,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued upon exercise of warrants, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -182,361 | ' | ' | -3,871,063 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option vesting period | ' | ' | '7 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '4 years | ' | '1 year | '4 years | ' | '1 year | '4 years | ' | ' | ' | ' | ' |
Stock option expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | '10 years | ' | ' | ' | '5 years | '7 years | ' | ' | ' | ' | ' |
Warrant issued in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' |
Exercise price of warrants per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.63 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.90 | ' | ' | ' | ' |
Fair value of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 198,000 | 166,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' |
Amortized period of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' |
Compensation expense related to the vesting of stock options | 700,000 | 690,000 | 1,900,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants granted included in product research and development expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | 9,000 | 25,000 | 28,000 |
Additional cash exercise price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of warrants | ' | ' | 699,000 | 155,000 | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subscription receivable | 286,000 | ' | 286,000 | ' | ' | ' | ' | ' | ' | ' | 286,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options vesting period description | ' | ' | 'The options have a 7-year life and 1/3 of the options are vested on the one year anniversary date of grant with the remaining to vest monthly over the remaining 24-months | 'The options have a 7-year life and 1/3 of the options are vested on the one year anniversary date of grant with the remaining to vest monthly over the remaining 24-months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equity incentive plans | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of non-employee director stock option plan | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted to purchase of common stock to employee | ' | ' | 130,000 | ' | ' | 0 | 360,000 | 45,000 | 1,145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, grant date fair value | ' | ' | $682,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognition period of unamortized expense related to stock options and warrants | ' | ' | '1 year 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options exercise | 62,350 | ' | 62,350 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Summary of future minimum payments under non-cancellable operating lease commitments | ' |
2013 (remaining six months) | $140 |
2014 | 319 |
2015 | 53 |
Total | $512 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||
Sep. 12, 2013 | Apr. 25, 2013 | Jan. 24, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 16, 2013 | Apr. 15, 2012 | Jul. 02, 2013 | Jul. 02, 2013 | Apr. 15, 2012 | Jul. 02, 2013 | Apr. 15, 2012 | Mar. 22, 2012 | Mar. 22, 2012 | Mar. 22, 2012 | Oct. 12, 2012 | Oct. 12, 2012 | Oct. 12, 2012 | |
Vasakronan Fastigheter AB, Linnegatan 89D [Member] | Vasakronan Fastigheter AB, Linnegatan 89D [Member] | Vasakronan Fastigheter AB, Linnegatan 89D [Member] | No Picnic [Member] | No Picnic [Member] | No Picnic [Member] | No Picnic [Member] | No Picnic [Member] | No Picnic [Member] | No Picnic [Member] | 2350 Mission Investors LLC [Member] | 2350 Mission Investors LLC [Member] | 2350 Mission Investors LLC [Member] | Space Design Inc. [Member] | Space Design Inc. [Member] | Space Design Inc. [Member] | |||||||
sqft | Month [Member] | Annual [Member] | sqft | sqft | Month [Member] | Month [Member] | Annual [Member] | Annual [Member] | sqft | Month [Member] | Annual [Member] | Month [Member] | Annual [Member] | |||||||||
Commitments and Contingencies (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-recurring engineering development costs contributed to TI | ' | $500,000 | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of NRE cost contributed to TI | ' | 'When the NN1002 is released in the future to mass production, Neonode will contribute to TI the NRE fee of $0.25 per unit for each of the first two million units sold. | 'Neonode will contribute to TI the NRE as follows: For each of the first one million units sold: $0.08 per unit For the next eight million units sold: $0.05 per unit. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NRE cost contributed for each of first one million unit sold, Per unit | ' | ' | $0.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NRE cost contributed for next eight million unit sold, Per unit | ' | ' | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NRE fee contributed for each of first two million unit sold, Per unit | ' | ' | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non recurring expense included in product research and development | ' | ' | ' | 74,000 | 344,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of leased space (in square feet) | ' | ' | ' | ' | ' | ' | 2,723 | ' | ' | ' | 2,853 | 5,480 | ' | ' | ' | ' | 3,185 | ' | ' | ' | ' | ' |
Initial lease payment (including property tax and excluding VAT) | ' | ' | ' | ' | ' | ' | ' | 8,000 | 93,000 | ' | ' | ' | 38,000 | 14,000 | 458,000 | 174,000 | ' | 7,007 | 86,000 | ' | 3,000 | 36,000 |
Lease payment including property tax (excluding VAT), net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000 | ' | ' | ' | ' | ' | ' | ' | 7,657 | ' | ' | ' | ' |
Operating lease notice period | ' | ' | ' | ' | ' | ' | '9 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease expiration date | ' | ' | ' | ' | ' | ' | 31-Dec-14 | ' | ' | ' | 15-Apr-13 | ' | ' | ' | ' | ' | 31-Jul-15 | ' | ' | 12-Oct-14 | ' | ' |
Operating leases period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '2 years | ' | ' |
Extended lease period under same terms and conditions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Apr-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sub lease payment | 9,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expenses | ' | ' | ' | ' | $399,000 | $235,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Summary of net revenues by geographic region | ' | ' | ' | ' |
Net revenues | $1,076,000 | $1,679,000 | $2,708,000 | $4,817,000 |
Revenues percentage | 100.00% | 100.00% | 100.00% | 100.00% |
North America [Member] | ' | ' | ' | ' |
Summary of net revenues by geographic region | ' | ' | ' | ' |
Net revenues | 459 | 877 | 1,208 | 2,809 |
Revenues percentage | 43.00% | 52.00% | 45.00% | 58.00% |
Asia [Member] | ' | ' | ' | ' |
Summary of net revenues by geographic region | ' | ' | ' | ' |
Net revenues | 420 | 802 | 1,193 | 2,008 |
Revenues percentage | 39.00% | 48.00% | 44.00% | 42.00% |
Europe [Member] | ' | ' | ' | ' |
Summary of net revenues by geographic region | ' | ' | ' | ' |
Net revenues | $197 | ' | $607 | ' |
Revenues percentage | 18.00% | ' | 11.00% | ' |
Segment_Information_Details_Te
Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2013 | |
Segments | |
Segment Information (Textual) | ' |
Number of reportable segments | 1 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
BASIC AND DILUTED | ' | ' | ' | ' |
Weighted average number of common shares outstanding | 35,437 | 33,021 | 34,366 | 32,934 |
Number of shares for computation of net loss per share | 35,437 | 33,021 | 34,366 | 32,934 |
Net loss | ($3,343) | ($2,144) | ($10,033) | ($7,159) |
Net loss per share - basic and diluted | ($0.09) | ($0.06) | ($0.29) | ($0.22) |
Net_Loss_Per_Share_Details_Tex
Net Loss Per Share (Details Textual) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Option [Member] | ' | ' |
Net Loss Per Share (Textual) | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 413,000 | 103,000 |
Warrant [Member] | ' | ' |
Net Loss Per Share (Textual) | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 3,200,000 | 500,000 |
Convertible Preferred Stock [Member] | ' | ' |
Net Loss Per Share (Textual) | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 52,000 | 11,000 |