Neonode (NEON) 10-K 11 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 01, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Neonode, Inc
Entity Central Index Key	87,050
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 101,549,947
Entity Common Stock, Shares Outstanding		43,817,151

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$ 3,082	$ 6,129
Accounts receivable, net	1,346	1,106
Projects in process	158	200
Prepaid expenses and other current assets	747	513
Total current assets	5,333	7,948
Property and equipment, net	594	654
Total assets	5,927	8,602
Current liabilities:
Accounts payable	965	566
Accrued expenses	1,314	935
Deferred revenues	1,475	3,403
Current portion of capital lease obligations	57	61
Total current liabilities	3,811	4,965
Capital lease obligation, net of current portion	283	367
Total liabilities	$ 4,094	$ 5,332
Commitments and contingencies
Stockholders' equity
Common stock, 70,000,000 shares authorized at December 31, 2015 and 2014, respectively, with par value of $0.001; 43,805,586 and 40,455,352 shares issued and outstanding at December 31, 2015 and 2014, respectively	$ 44	$ 40
Additional paid-in capital	175,504	169,010
Accumulated other comprehensive income	46	149
Accumulated deficit	(173,749)	(165,929)
Total Neonode Inc. stockholders' equity	1,845	$ 3,270
Noncontrolling interests	(12)
Total stockholders' equity	1,833	$ 3,270
Total liabilities and stockholders' equity	$ 5,927	$ 8,602
Series B Preferred Stock
Stockholders' equity
Series B Preferred stock, 54,425 shares authorized with par value of $0.001; 83 shares issued and outstanding at December 31, 2015 and 2014, respectively. (In the event of dissolution, each share of Series B Preferred stock has a liquidation preference equal to par value of $0.001 over the shares of common stock)

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Common stock, shares authorized	70,000,000	70,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	43,805,586	40,455,352
Common stock, shares outstanding	43,805,586	40,455,352
Series B Preferred Stock
Preferred stock, shares authorized	54,425	54,425
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	83	83
Preferred stock, shares outstanding	83	83
Preferred stock, liquidation preference	$ 0.001	$ 0.001

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statements of Operations [Abstract]
Net revenues	$ 11,115	$ 4,740	$ 3,717
Cost of revenues	3,780	1,509	1,642
Gross margin	7,335	3,231	2,075
Operating expenses:
Research and development	6,279	7,373	7,235
Sales and marketing	3,753	3,250	2,732
General and administrative	4,999	6,799	5,079
Total operating expenses	15,031	17,422	15,046
Operating loss	(7,696)	(14,191)	$ (12,971)
Other expense:
Interest expense	(18)	(14)
Other expense, net	(28)	(16)
Total other expense	(46)	(30)
Loss before provision for income taxes	(7,742)	(14,221)	$ (12,971)
Provision for income taxes	93	13	109
Net loss including noncontrolling interests	(7,835)	$ (14,234)	$ (13,080)
Less: Net loss attributable to noncontrolling interests	15
Net loss attributable to Neonode Inc.	$ (7,820)	$ (14,234)	$ (13,080)
Loss per common share:
Basic and diluted loss per share	$ (0.19)	$ (0.36)	$ (0.37)
Basic and diluted - weighted average number of common shares outstanding	41,202	39,532	35,266

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statements of Comprehensive Loss [Abstract]
Net loss (including noncontrolling interests)	$ (7,835)	$ (14,234)	$ (13,080)
Other comprehensive income (loss):
Foreign currency translation adjustments	(103)	138	6
Comprehensive loss	(7,938)	$ (14,096)	$ (13,074)
Less: Comprehensive loss attributable to noncontrolling interests	(15)
Comprehensive loss attributable to Neonode Inc.	$ (7,953)	$ (14,096)	$ (13,074)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Series A Preferred Stock	Series B Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Neonode Inc. Stockholders' Equity	Noncontrolling Interests
Beginning Balances at Dec. 31, 2012	$ 8,100				$ 146,677	$ 5	$ (138,615)	$ 8,100
Beginning Balances, Shares at Dec. 31, 2012				33,331
Stock option and warrant compensation expense to employees	2,656				2,656			2,656
Proceeds from sale of common stock, net of offering costs	6,892			$ 2	6,890			6,892
Proceeds from sale of common stock, net of offering costs, shares				1,169
Common stock issued upon exercise of common stock warrants	714			$ 3	711			714
Common stock issued upon exercise of common stock warrants, shares				3,152
Common stock issued upon exercise of common stock options	1,060				$ 1,060			1,060
Common stock issued upon exercise of common stock options, shares				241
Exchange of Series A preferred stock for common stock				40
Exchange of Series B preferred stock for common stock				1
Foreign currency translation adjustment	6					$ 6		6
Net loss	(13,080)						$ (13,080)	(13,080)
Ending Balances at Dec. 31, 2013	6,348			$ 38	$ 157,994	$ 11	$ (151,695)	6,348
Ending Balances, shares at Dec. 31, 2013				37,934
Stock option and warrant compensation expense to employees, directors and vendors	1,729				1,729			1,729
Proceeds from sale of common stock, net of offering costs	$ 9,253			$ 2	9,251			9,253
Proceeds from sale of common stock, net of offering costs, shares				2,500
Common stock issued upon exercise of common stock warrants					$ 36			36
Common stock issued upon exercise of common stock warrants, shares				21
Foreign currency translation adjustment	$ 138					$ 138		138
Net loss	(14,234)						$ (14,234)	(14,234)
Ending Balances at Dec. 31, 2014	3,270			$ 40	$ 169,010	$ 149	$ (165,929)	3,270
Ending Balances, shares at Dec. 31, 2014				40,455
Stock option and warrant compensation expense to employees, directors and vendors	1,075				1,075			1,075
Proceeds from sale of common stock, net of offering costs	5,422			$ 3	$ 5,419			5,422
Proceeds from sale of common stock, net of offering costs, shares				3,200
Common stock issued upon exercise of common stock warrants	1			$ 1				1
Common stock issued upon exercise of common stock warrants, shares				151
Foreign currency translation adjustment	(103)					$ (103)		$ (103)
Noncontrolling interests Pronode - initial contribution	3								$ 3
Net loss	(7,820)						$ (7,820)	$ (7,820)	(15)
Ending Balances at Dec. 31, 2015	$ 1,845			$ 44	$ 175,504	$ 46	$ (173,749)	$ 1,845	$ (12)
Ending Balances, shares at Dec. 31, 2015			83	43,806

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss (including noncontrolling interests)	$ (7,835)	$ (14,234)	$ (13,080)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	$ 1,075	1,729	$ 2,656
Bad debt expense		167
Depreciation and amortization	$ 187	202	$ 144
Loss on disposal of property and equipment	28	16	8
Changes in operating assets and liabilities:
Accounts receivable	(239)	(304)	1,155
Projects in process	38	530	(736)
Prepaid expenses and other current assets	(263)	(60)	95
Accounts payable and accrued expenses	871	363	19
Deferred revenues	(1,925)	(233)	938
Net cash used in operating activities	(8,063)	(11,824)	(8,801)
Cash flows from investing activities:
Purchase of property and equipment	$ (198)	(115)	$ (155)
Proceeds from sale of property and equipment		7
Net cash used in investing activities	$ (198)	$ (108)	$ (155)
Cash flow from financing activities:
Proceeds from exercise of stock options			1,060
Proceeds from exercise of warrants		$ 36	714
Proceeds from issuance of common stock, net of offering costs	$ 5,422	$ 9,253	$ 6,892
Contributions from noncontrolling interests	3
Principal payments on capital lease obligations	(57)	$ (34)
Net cash provided by financing activities	5,368	9,255	$ 8,666
Effect of exchange rates on cash	(154)	(9)	8
Net decrease in cash	(3,047)	(2,686)	(282)
Cash at beginning of year	6,129	8,815	9,097
Cash at end of year	3,082	6,129	$ 8,815
Supplemental disclosure of cash flow information:
Cash paid for interest	18	14
Cash paid for income taxes	$ 93	5	$ 109
Supplemental disclosure of non-cash investing and financing activities:
Purchase of equipment with capital lease obligation		$ 530

Nature of the Business and Oper

Nature of the Business and Operations	12 Months Ended
	Dec. 31, 2015
Nature of the Business and Operations [Abstract]
Nature of the Business and Operations	1. Nature of the Business and Operations Background and Organization Neonode Inc. (“we”, “us”, “our”, or the “Company”) was incorporated in the State of Delaware in 1997 as the parent of Neonode AB, a company founded in February 2004 and incorporated in Sweden. On December 29, 2008, we entered into a share exchange agreement with AB Cypressen nr 9683 (renamed Neonode Technologies AB), a Swedish engineering company, and Neonode Technologies AB became our wholly owned subsidiary. In 2013, we established additional wholly owned subsidiaries: Neonode Japan Inc. (Japan); Neno User Interface Solutions AB (Sweden); NEON Technology Inc. (U.S.); and Neonode Americas Inc. (U.S.). In 2014, we established one additional wholly owned subsidiary: Neonode Korea Ltd. (South Korea). In 2015, we established one additional wholly owned subsidiary: Neonode Taiwan Ltd. (Taiwan). In 2015 we established Pronode Technologies AB, a majority-owned subsidiary of Neonode Technologies AB. Operations Neonode Inc., collectively with its subsidiaries, is referred to as “Neonode”, develops and licenses user interfaces and optical touch technology to Original Equipment Manufacturers (“OEMs”) and Original Design Manufacturers (“ODMs”) who embed the Neonode technology into devices that they produce and sell. Reclassifications Interest expense for the year ended December 31, 2014 is now reported under its own caption, separate from other expense, in the accompanying consolidated statement of operations, in order to conform to the current period presentation. Liquidity We incurred net losses of approximately $7.8 million, $14.2 million and $13.1 million for the years ended December 31, 2015, 2014 and 2013, respectively and had an accumulated deficit of approximately $173.7 million as of December 31, 2015. In addition, we used cash in operating activities of approximately $8.1 million, $11.8 million and $8.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. In June 2014, we filed a shelf registration statement with the SEC that became effective on June 12, 2014. We may from time to time issue shares of our common stock under our shelf registration in amounts, at prices, and on terms to be announced when and if the securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in a prospectus supplement and any other offering materials, at the time of the offering. Our shelf registration statement will expire on June 12, 2017. On October 13, 2015, we issued 3,200,000 shares of our common stock from our shelf registration statement to investors in connection with an equity financing transaction. We sold the stock at $1.90 per share and raised approximately $6.1 million gross and received approximately $5.4 million in cash, net of direct offering costs including underwriting discounts and legal, audit and other regulatory costs of approximately $0.7 million. As of December 31, 2015, there were 1,800,000 shares remaining for issuance under our existing shelf registration statement. We believe that, based upon our current operating plan, our existing cash and cash provided by operations will be sufficient to meet our anticipated cash needs for at least the next twelve months. We expect that our revenues from license fees and non-recurring engineering fees will enable us to reduce, or eliminate, our operating losses in 2016. We also have undertaken steps to reduce operating expenses, including (i) termination of consulting contracts associated with our research and development operations, and (ii) improving overall cost efficiency of our operations. Depending on our cash flow, we intend to continue to implement various measures to improve our financial condition, such as reducing further expenses to conserve cash and pursuing strategic transactions and relationships with third parties. While there is no assurance that the Company can meet its projected cash flows, management anticipates that it can continue operations for at least the next twelve months. In the future, we may require sources of capital in addition to cash on hand to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek credit line facilities from financial institutions, equity investments or debt arrangements. No assurances can be given that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, results of operations and financial condition. In addition, if funds are available, the issuance of equity securities or securities convertible into equity could dilute the value of shares of our common stock and cause the market price to fall, and the issuance of debt securities could impose restrictive covenants that could impair our ability to engage in certain business transactions.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting policies	2. Summary of Significant Accounting policies Principles of Consolidation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Neonode Inc. and its wholly owned subsidiaries, as well as Pronode Technologies AB, a 51% majority owned subsidiary of Neonode Technologies AB. The remaining 49% of Pronode Technologies AB is owned by Propoint AB, located in Gothenburg, Sweden. Pronode Technologies AB was organized to sell engineering services within the automotive markets. All inter-company accounts and transactions have been eliminated in consolidation. The consolidated statements of operations, comprehensive loss and cash flows for the year ended December 31, 2013 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.) and Neno User Interface Solutions AB (Sweden). The consolidated balance sheet at December 31, 2014 and the consolidated statements of operations, comprehensive loss and cash flows for the year ended December 31, 2014 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.), Neno User Interface Solutions AB (Sweden) and Neonode Korea Ltd. (South Korea). The consolidated balance sheet at December 31, 2015 and the consolidated statements of operations, comprehensive loss and cash flows for the year ended December 31, 2015 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.), Neno User Interface Solutions AB (Sweden), Neonode Korea Ltd. (South Korea) and Neonode Taiwan Ltd. (Taiwan), and the majority-owned subsidiary of Neonode Technologies AB, Pronode Technologies AB. Estimates The preparation of financial statements in conformity with U.S. GAAP 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. Actual results could differ from these estimates. Significant estimates include, but are not limited to, collectability of accounts receivable, the achievement of substantive milestones and vendor-specific objective evidence (“VSOE”) of fair value for purposes of revenue recognition (or deferral of revenue), recoverability of capitalized project costs and long-lived assets, the valuation allowance related to our deferred tax assets, and the fair value of 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. The Company considers 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, Korea, Taiwan and Sweden. For deposits held with financial institutions in the U.S. the U.S. Federal Deposit Insurance Corporation, provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 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. The Korea Deposit Insurance Corporation provides insurance coverage up to 50,000,000 Won per customer. The Central Deposit Insurance Corporation in Taiwan provides insurance coverage up to 3,000,000 Taiwan Dollar per customer. At times, deposits held with financial institutions may exceed the amount of insurance provided. 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. Our allowance for doubtful accounts was approximately $167,000 as of December 31, 2015 and 2014. Projects in Process Projects in process consist of costs incurred toward the completion of various projects for certain customers. These costs are primarily comprised of direct engineering labor costs and project-specific equipment costs. These costs are capitalized on our balance sheet as an asset and deferred until revenue for each project is recognized in accordance with our revenue recognition policy. Costs capitalized in projects in process were $158,000 and $200,000 as of December 31, 2015 and 2014, respectively. 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 as follows: Estimated useful lives Computer equipment 3 years Furniture and fixtures 5 years Equipment 7 years Equipment purchased under a capital lease is recognized over the term of the lease, if that lease term is shorter than the estimated useful life. 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. As of December 31, 2015, we believe there was no impairment of our long-lived assets. There can be no assurance, however, that market conditions will not change or sufficient demand for our products and services will continue, 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, the Japanese Yen, the South Korean Won and the Taiwan Dollar. The translation from Swedish Krona, Japanese Yen, South-Korean Won or the Taiwan Dollar to U.S. Dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted average exchange rate during the period. Gains or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $62,000, ($37,000) and ($155,000) during the years ended December 31, 2015, 2014 and 2013, respectively. Foreign currency translation gains or (losses) were ($103,000), $138,000 and $6,000 during the years ended December 31, 2015, 2014 and 2013, respectively. Concentration of Credit and Business Risks Our customers are located in U.S., Europe and Asia. As of December 31, 2015, three customers represented approximately 78% of our consolidated accounts receivable. As of December 31, 2014, three customers represented approximately 87% of our consolidated accounts receivable. Our net revenues for the year ended December 31, 2015 were earned from thirty-five customers. Customers who accounted for 10% or more of our net revenues during the year ended December 31, 2015 are as follows. ● Hewlett-Packard Company – 25% ● Autoliv – 21% ● Amazon – 14% Our net revenues for the year ended December 31, 2014 were earned from thirty-two customers. Customers who accounted for 10% or more of our net revenues during the year ended December 31, 2014 are as follows. ● Hewlett-Packard Company – 24% ● KOBO Inc. – 10% ● Leap Frog Enterprises Inc. – 11% ● Sony Corporation – 10% Our revenues for the year ended December 31, 2013 were earned from twenty-nine customers. Customers who accounted for 10% or more of our net revenues during the year ended December 31, 2013 are as follows. ● KOBO Inc. – 28% ● Netronix Inc. – 18% ● Leap Frog Enterprises Inc. – 12% ● Sony Corporation – 11% The Company conducts business in the U.S., Europe and Asia. At December 31, 2015, the Company maintained approximately $2,533,000, ($909,000) and $209,000 of its net assets (liabilities) in the U.S., Europe and Asia, respectively. At December 31, 2014, the Company maintained approximately $3,713,000, ($461,000) and $18,000 of its net assets (liabilities) in the U.S., Europe and Asia, respectively. 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. 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. We follow U.S. GAAP for revenue recognition as per unit royalty products are distributed or licensed by our 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. We recognize licensing revenue in the period in which royalty reports are received, rather than the period in which the products are distributed or to which the license relates. Explicit return rights are not offered to customers. There have been no returns through December 31, 2015. 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. Engineering services are performed under a signed Statement of Work (“SOW”) with a customer. The deliverables and payment terms stipulated under the SOW provide guidance on the project revenue recognition. Revenues from contracts that are short-term in nature and related costs that are difficult to estimate are accounted for under the completed contract method. Revenues from contracts with substantive defined milestones that we have determined are reasonable, relevant to all the deliverables and payment terms in the SOW that are commensurate with the efforts required to achieve the milestones are recognized under the milestone recognition method. Estimated losses on all SOW projects are recognized in full as soon as they become evident. In the year ended December 31, 2015, $165,000 was recorded as cost of sales due to expected losses related to two SOW projects. In the years ended December 31, 2014 and 2013 no losses related to SOW projects were recorded. Deferred Revenues We defer license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed and royalty reports are received. Engineering development fee revenues are deferred until such time as the engineering work has been completed and accepted by our customers. As of December 31, 2015 and 2014, we have $1.1 million and $3.0 million, respectively, of deferred license fee revenue related to prepayments for future license fees from two and four customers, respectively and a total of $0.4 million and $0.4 million, respectively, of deferred engineering development fees from one and five customers, respectively. Advertising Advertising costs are expensed as incurred. Advertising costs amounted to approximately $328,000, $172,000 and $141,000 for the years ended December 31, 2015, 2014 and 2013, respectively. 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 share options, based on the estimated 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 estimated fair value. The measurement date for the estimated fair value for the equity instruments issued is determined at the earlier of (1) the date at which a commitment for performance by the consultant or vendor is reached, or (2) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the estimated fair value of the equity instruments is primarily recognized over the term of the consulting agreement. The estimated fair value of the stock-based compensation is periodically re-measured and income or 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. Noncontrolling Interests The Company recognizes noncontrolling interests as equity in the consolidated financial statements separate from the parent company’s equity. Noncontrolling interests’ partners have less than 50% share of voting rights at any one of the subsidiary level companies. The amount of net income (loss) attributable to noncontrolling interests is included in consolidated net income (loss) on the face of the consolidated statements of operations. Changes in a parent entity’s ownership interest in a subsidiary that do not result in deconsolidation are treated as equity transactions if the parent entity retains its controlling financial interest. The Company recognizes a gain or loss in net income (loss) when a subsidiary is deconsolidated. Such gain or loss is measured using the fair value of the noncontrolling equity investment on the deconsolidation date. Additionally, operating losses are allocated to noncontrolling interests even when such allocation creates a deficit balance for the noncontrolling interest partner. The Company provides either in the consolidated statement of stockholders’ equity, if presented, or in the notes to consolidated financial statements, a reconciliation at the beginning and the end of the period of the carrying amount of total equity (net assets), equity (net assets) attributable to the parent, and equity (net assets) attributable to the noncontrolling interest that separately discloses: (1) Net income or loss (2) Transactions with owners acting in their capacity as owners, showing separately contributions from and distributions to owners. (3) Each component of other comprehensive income or loss Income Taxes We recognize deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the consolidated financial statements or tax returns. We estimate income taxes based on rates in effect in each of the jurisdictions in which we operate. Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The realization of deferred tax assets is based on historical tax positions and expectations about future taxable income. Valuation allowances are recorded against net deferred tax assets when, in our opinion, realization is uncertain based on the “more likely than not” criteria of the accounting guidance. Based on the uncertainty of future pre-tax income, we fully reserved our net deferred tax assets as of December 31, 2015 and 2014. 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 payable for the current period. We follow U.S. GAAP 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 December 31, 2015 and 2014, 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 years ended December 31, 2015, 2014 and 2013. 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 years ended December 31, 2015, 2014 and 2013 exclude the potential common stock equivalents, as the effect would be anti-dilutive (see Note 14). Other Comprehensive Income (Loss) Our comprehensive loss includes foreign currency translation gains and losses. The cumulative amount of translation gains and losses are reflected as a separate component of stockholders’ equity in the consolidated balance sheets, as accumulated other comprehensive income. 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 was as follows: Years ended December 31, 2015 2014 2013 Swedish Krona 8.43 6.86 6.51 Japanese Yen 121.03 105.84 97.58 South Korean Won 1,130.22 1,050.63 - Taiwan Dollar 31.73 - - Exchange rate for the consolidated balance sheets was as follows: Years ended December 31, 2015 2014 Swedish Krona 8.42 7.80 Japanese Yen 120.36 119.93 South Korean Won 1,174.67 1,096.73 Taiwan Dollar 32.84 - Fair Value of Financial Instruments We disclose the estimated fair values for all financial instruments for which it is practicable to estimate fair value. Financial instruments including cash, accounts receivable, accounts payable and accrued expenses and are deemed to approximate fair value due to their short maturities. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606)” In August 2014, the FASB issued ASU No. 2014-15, “ Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In November 2015, FASB issued ASU 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Dec. 31, 2015
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid Expenses and Other Current Assets	3. Prepaid Expenses and Other Current Assets Prepaid expense and other current assets consist of the following (in thousands): As of December 31, 2015 2014 Prepaid insurance $ 119 $ 122 Prepaid rent 52 39 VAT receivable 337 137 Other 239 215 Total prepaid expenses and other current assets $ 747 $ 513

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Property and Equipment [Abstract]
Property and Equipment	4. Property and Equipment Property and equipment consist of the following (in thousands): As of December 31, 2015 2014 Computers, software, furniture and fixtures $ 637 $ 546 Equipment under capital lease 428 458 Less accumulated depreciation and amortization (471 ) (350 ) Property and equipment, net $ 594 $ 654 Depreciation and amortization expense was $187,000, $202,000 and $144,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2015
Accrued Expenses [Abstract]
Accrued Expenses	5. Accrued Expenses Accrued expenses consist of the following (in thousands): As of December 31, 2015 2014 Salaries, payroll taxes, vacation and benefits $ 932 $ 686 Accrued consulting fees and other 382 249 Total accrued expenses $ 1,314 $ 935

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	6. Fair Value Measurements Accounting guidance defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements about fair value measurements. The accounting guidance does not mandate any new fair value measurements and is applicable to assets and liabilities that are required to be recorded at fair value under other accounting pronouncements. There were no assets or liabilities recorded at fair value on a recurring basis in 2015 and 2014. The three levels of the fair value hierarchy are described as follows: Level 1: Applies to assets or liabilities for which there are quoted prices (unadjusted) in active markets for identical assets and liabilities. We had no Level 1 assets or liabilities. Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices that are included in Level 1 observable, either directly or indirectly. We had no Level 2 assets or liabilities. Level 3: Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. We had no Level 3 assets or liabilities.

Deferred Revenues

Deferred Revenues	12 Months Ended
	Dec. 31, 2015
Deferred Revenues [Abstract]
Deferred Revenues	7. Deferred Revenue We defer the license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed and royalty reports are received. Engineering development fee revenues are deferred until such time as the engineering work has been completed and accepted by our customers. As of December 31, 2015 and 2014, we had $1.1 million and $3.0 million, respectively, of deferred license fee revenue related to prepayments for future license fees from two and four customers and a total of $0.4 million and $0.4 million, respectively, of deferred engineering development fees from one and five customers, respectively.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	8. Stockholders’ Equity Common Stock During the year ended December 31, 2015, we issued 3,200,000 shares of our common stock to investors in connection with an equity financing transaction. These shares of common stock were a portion of the 5,000,000 shares previously registered in 2014 under a shelf registration statement. We issued the stock at $1.90 per share and raised approximately $6.1 million gross and received approximately $5.4 million in cash, net of direct offering costs including underwriting discounts and legal, audit and other regulatory costs of approximately $0.7 million. Per Bystedt (Chairman of our Board of Directors), Thomas Eriksson (our Chief Executive Officer and a member of our Board of Directors), and Mats Dahlin (a member of our Board of Directors) purchased an aggregate of 157,893 shares of common stock in the offering at the public offering price per share for an aggregate purchase price of approximately $300,000. In addition, warrant holders exercised warrants to purchase 280,000 shares of common stock using the cashless net exercise provision allowed in the warrant and received 150,234 shares of our common stock. During the year ended December 31, 2014, we sold 2,500,000 shares of our common stock at a price of $4.00 per share to an accredited institutional investor for an aggregate purchase price of $10,000,000 in gross proceeds and net proceeds of approximately $9.3 million after expenses and fees, including a $600,000 placement agent fee. In addition, we issued a warrant to purchase up to an aggregate of 2,500,000 shares of our common stock at an exercise price of $5.09 per share (see Note 9) that expired on November 15, 2015. In addition, we issued to the placement agent a warrant to acquire up to an aggregate of 75,000 shares of our common stock. The agent warrant is subject to the same terms and provisions of the investor warrant described above. During the year ended December 31, 2014, warrant holders exercised warrants to purchase 17,000 shares of common stock using the cashless net exercise provision allowed in the warrant and received 10,053 shares of our common stock. In addition, warrant holders exercised warrants to purchase 11,500 shares of common stock at an exercise price of $3.13 per share for total cash proceeds of approximately $36,000. During the year ended December 31, 2013, warrant holders exercised warrants to purchase 1,815,368 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 429,536 shares of common stock and paid a cash exercise price ranging between $1.00 and $3.13 per share for total cash proceeds of approximately $714,000. On February 26, 2013, David Brunton, our former Chief Financial Officer, 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 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 estimated fair value of the warrant was $166,000 on the date of grant, using the Black-Scholes option pricing model, which was expensed during the year ended December 31, 2013. The warrant holder exercised the warrant on April 4, 2013 and the Company received cash proceeds of $40,000 (see Note 9). On August 12, 2013, Thomas Eriksson, our Chief Executive Officer, exercised warrants to purchase 400,000 shares of common stock using the cashless net 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, 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 net 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 net 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 net 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 commissions, 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 B Preferred stock are as follows: Dividends and Distributions 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 In the event of any liquidation, dissolution, or winding up of our operations, either voluntary or involuntary, subject to the rights of the Series B Preferred stock and Senior 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 B Preferred stock have one vote for each share of Series B Preferred stock held by them. Conversion Initially, each share of Series B Preferred stock was convertible into one share of our common stock. On March 31, 2009, our stockholders approved a resolution to increase the authorized share capital, and to increase the conversion ratio to 132.07 shares of our common stock for each share of Series B Preferred stock. Conversion of Preferred Stock Issued to Common Stock The following table summarizes the amounts as of December 31, 2015: Shares of Preferred Stock Not Exchanged as of December 31, 2015 Conversion Ratio Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at December 31, 2015 Series B Preferred Stock 83 132.07 10,962

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2015
Stock-Based Compensation [Abstract]
Stock-Based Compensation	9. Stock-Based Compensation We have adopted equity incentive 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 During the year ended 2015, our shareholders approved the Neonode Inc. 2015 Stock Incentive Plan (the “2015 Plan”) which replaces our 2006 Equity Incentive Plan (the “2006 Plan”). Under the 2015 Plan, 2,100,000 shares of common stock have been reserved for awards, including nonqualified stock option grants and restricted stock grants to officers, employees, non-employee directors and consultants. The terms of the awards granted under the 2015 Plan are set by our compensation committee at its discretion. During the year ended December 31 2015, 605,000 stock options were granted under the 2015 Plan. Accordingly, as of December 31, 2015, we had two equity incentive plans: ● The 2006 Equity Incentive Plan (the “2006 Plan”). ● The 2015 Equity Incentive Plan (the “2015 Plan”). We also had one non-employee director stock option plan as of December 31, 2015: ● The 2001 Non-Employee Director Stock Option Plan (the “Director Plan”), which expired in March 2011. The following table summarizes information with respect to all options to purchase shares of common stock outstanding under the 2006 Plan, the 2015 Plan and the Director Plan at December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding at 12/31/15 Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Number Exercisable at 12/31/15 Weighted Average Exercise Price $ 2.08 - $ 3.50 296,450 6.10 $ 2.98 62,717 $ 2.95 $ 3.51 - $ 5.00 1,516,000 3.16 $ 4.22 1,501,000 $ 4.23 $ 5.01 - $ 6.50 201,667 4.53 $ 5.84 161,385 $ 5.81 $ 6.51 - $ 8.21 170,000 2.80 $ 7.83 163,334 $ 7.84 2,184,117 3.65 $ 4.48 1,888,436 $ 4.63 A summary of the combined activity under all of the stock option plans is set forth below: Options Outstanding Weighted- Average Weighted- Remaining Average Contractual Aggregate Number of Exercise Life Intrinsic Shares Price (in years) Value Options outstanding – January 1, 2013 1,715,200 $ 5.04 Options granted 145,000 6.06 Options exercised (241,361 ) 4.39 Options cancelled or expired (18,256 ) 5.57 Options outstanding – December 31, 2013 1,600,583 $ 5.22 Options granted 405,200 6.31 Options exercised - - Options cancelled or expired (296,383 ) 5.46 Options outstanding – December 31, 2014 1,709,400 4.92 Options granted 605,000 3.57 Options exercised - - Options cancelled or expired (130,283 ) 6.03 Options outstanding – December 31, 2015 2,184,117 $ 4.48 3.65 $ 10,740 Options exercisable and expected to vest – December 31, 2015 1,888,436 $ 4.63 3.30 $ 4,006 The assumptions used to value stock options granted to directors, employees and consultants during the years ended December 31, 2015, 2014 and 2013 are as follows: For the year ended December 31, 2015 Annual dividend yield - Expected life (years) 2.97 Risk-free interest rate 0.47% - 1.41 % Expected volatility 60.07% - 72.33 % For the year ended December 31, 2014 Annual dividend yield - Expected life (years) 3.5 Risk-free interest rate 0.28% - 1.47 % Expected volatility 60.68% - 108.75 % For the year ended December 31, 2013 Annual dividend yield - Expected life (years) 4.3 Risk-free interest rate 0.65% - 2.15 % Expected volatility 117% - 154 % During the years ended December 31, 2015, 2014 and 2013, we recorded $1.1 million, $1.7 million and $2.7 million, respectively, of compensation expense related to the vesting of stock options. The estimated fair value of the stock-based compensation was calculated using the Black-Scholes option pricing model as of the grant date of the stock option. The 1998 Plan terminated effective June 15, 2008. The last stock options from the 1998 Plan were exercised during the year ended December 31, 2015. Options granted under the Director Plan vest 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 2006 and 2015 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. During the year ended December 31, 2015, we granted options to purchase 515,000 shares of our common stock to employees and an option to purchase 90,000 shares of our common stock to four members of our board of directors with total grant date estimated fair value of $0.8 million computed using the Black-Scholes option pricing model. The weighted-average grant date fair value of the options granted during year ended December 31, 2015 was $1.24 per share. During the year ended December 31, 2014, we granted options to purchase 395,200 shares of our common stock to employees and an option to purchase 10,000 shares of our common stock to a former member of our board of directors with total grant date estimated fair value of $1.3 million computed using the Black-Scholes option pricing model. The weighted-average grant date fair value of the options granted during year ended December 31, 2015 was $3.14 per share. During the year ended December 31, 2013, we received an aggregate of $1.1 million from five employees in connection with the exercise of stock options into 241,361 shares of common stock. The intrinsic value of the options exercised was $502,000 on the date of exercise. We granted options to purchase 145,000 shares of our common stock to three employees during the year ended December 31, 2013 with an aggregate grant date fair value of approximately $748,000 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 next 24-months. Warrants During the year ended December 31, 2015 and 2014, certain warrant holders exercised their warrants under the cash and cashless exercise provisions, as defined in the agreements. See Note 8 for details of such exercises and number of common stock shares issued. We issued 20,000 three-year stock purchase warrants at an exercise price of $3.90 per share with a vesting period over 24 months to an employee during the year ended December 31, 2011. The unvested warrant granted to an employee had an estimated fair value on the date of grant of $75,000. This amount was expensed over the vesting period and $26,000 of expense related to this warrant is included in research and development expense for the year ended December 31, 2013. The estimated 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. The stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013 reflects the estimated fair value of the vested portion of options and warrants granted to directors, employees and non-employees. (In thousands) Years ended December 31, 2015 2014 2013 Research and development $ 484 $ 510 $ 267 Sales and marketing 296 353 909 General and administrative 295 866 1,480 Stock compensation expense $ 1,075 $ 1,729 $ 2,656 (In thousands) Remaining unrecognized expense at Stock-based compensation $ 520 The remaining unrecognized expense related to stock options and warrants will be recognized on a straight line basis monthly as compensation expense over the remaining vesting period which approximates 1.6 years. A summary of all warrant activity is set forth below: Outstanding and exercisable Warrants Weighted Average Exercise Price Weighted Average January 1, 2013 4,704,636 $ 1.61 1.41 Issued - - - Expired/forfeited - - - Exercised (3,876,063 ) 1.45 - December 31, 2013 828,573 2.39 2.06 Issued 2,575,000 5.09 - Expired/forfeited (40,000 ) 3.98 - Exercised (28,500 ) 2.85 - December 31, 2014 3,335,073 4.45 0.93 Issued - - - Expired/forfeited (2,591,000 ) 5.06 - Exercised (280,000 ) 1.30 - Outstanding and exercisable, December 31, 2015 464,073 $ 3.02 0.19 The estimated fair value of stock-based awards 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 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 and warrants. 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. Outstanding Warrants to Purchase Common Stock as of December 31, 2015: Description Issue Date Exercise Price Shares Expiration Date February 2011 Legal Advisor Warrant 2/22/2011 $ 2.50 80,000 2/22/2016 March 2011 Investor Warrants 3/9/2011 $ 3.13 349,973 3/9/2016 March 2011 Investor Warrants 4/7/2011 $ 3.13 34,100 4/7/2016 Total Warrants Outstanding 464,073

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Indemnities and Guarantees Our bylaws require that we indemnify each of our executive officers and directors for certain events or occurrences arising as a result of the officer or director serving in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. However, we have a directors’ and officers’ liability insurance policy that should enable us to recover a portion of future amounts paid. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal and we have no liabilities recorded for these agreements as of December 31, 2015 and 2014. We enter into indemnification provisions under our agreements with other companies in the ordinary course of business, typically with business partners, contractors, customers and landlords. Under these provisions we generally indemnify and hold harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of our activities or, in some cases, as a result of the indemnified party’s activities under the agreement. These indemnification provisions often include indemnifications relating to representations made by us with regard to intellectual property rights. These indemnification provisions generally survive termination of the underlying agreement. The maximum potential amount of future payments we could be required to make under these indemnification provisions is unlimited. We have not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the estimated fair value of these agreements is minimal. Accordingly, we have no liabilities recorded for these indemnification provisions as of December 31, 2015 and 2014. Non-Recurring Engineering Development Costs On February 4, 2011, we entered into an Analog Device Development Agreement with an effective date of January 24, 2010 (the “NN1001 Agreement”) with Texas Instruments pursuant to which Texas Instruments integrated Neonode’s intellectual property into an Application Specific Integrated Circuit (“ASIC”). The NN1001 ASIC only can be sold by Texas Instruments exclusively to licensees of Neonode. Under the terms of the NN1001 Agreement, we have reimbursed Texas Instruments $500,000 of non-recurring engineering development costs based on shipments of the NN1001. Under the terms of the NN1001 Agreement, we have reimbursed Texas Instruments a non-recurring engineering fee of $0.08 per unit for each of the first one million units sold and $0.05 for the next eight million units sold. During the years ended December 31, 2015 and 2014, approximately $20,000 and $93,000, respectively of non-recurring engineering expense related to the NN1001 Agreement is included in research and development in the consolidated statements of operations. As of December 31, 2015, all payments under the NN1001 Agreement have been made. On April 25, 2013, we entered into an additional Analog Device Development Agreement with an effective date of December 6, 2012 (the “NN1002 Agreement”) with Texas Instruments pursuant to which Texas Instruments will integrate Neonode’s intellectual property into an ASIC. The NN1002 ASIC only can be sold by Texas Instruments exclusively to licensees of Neonode. Under the terms of the NN1002 Agreement, we will reimburse Texas Instruments up to $500,000 of non-recurring engineering costs based on shipments of the NN1002. Under the terms of the NN1002 Agreement we will reimburse Texas Instruments a non-recurring engineering fee of $0.25 per unit for each of the first two million units sold. The NN1002 began sampling to customers in May 2014. As of December 31, 2015, we had made no payments under the NN1002 Agreement. On December 4, 2014, we entered into an additional Analog Device Development Agreement (the “NN1003 Agreement”) with STMicroelectronics International N.V pursuant to which STMicroelectronics will integrate Neonode’s intellectual property into an ASIC. The NN1003 ASIC only can be sold by STMicroelectronics exclusively to licensees of Neonode. Under the terms of the NN1003 Agreement, we will reimburse STMicroelectronics up to $885,000 of non-recurring engineering costs as follows: ● $235,000 at the feasibility review and contract signature (paid on January 20, 2015) ● $300,000 on completion of tape-out (paid on October 31, 2015) ● $300,000 on completion on product validation (not completed) Under the terms of the NN1003 Agreement, we also will reimburse STMicroelectronics a non-recurring engineering fee of $5.00 per each of the first 10,000 units sold. As of December 31, 2015, we had made no payments under the NN1003 Agreement. Operating Leases We lease 6,508 square feet of office space located at 2674 North First Street, San Jose, CA 95134 USA. The annual payment for this space equates to approximately $160,000 per year. The lease is valid through July 31, 2018. Our subsidiary Neonode Technologies AB leases 7,007 square feet of office space located at Storgatan 23C, Stockholm, Sweden. The annual payment for this space equates to approximately $431,000 per year including property tax (excluding VAT). The lease is valid through November 30, 2017. The lease can be extended on a yearly basis. Our subsidiary Neonode Japan Inc. leases 430 square feet of office space located at 608 Bureau Shinagawa, 4-1-6 Konan, Minato-ku, 108-0075 Tokyo, Japan. The annual expense for this space is approximately $28,000 per year. The lease is valid through October 31, 2016. Our subsidiary Neonode Korea Ltd. leases 112 square feet located at B-1807, Daesung D-Polis. 543-1, Seoul, South Korea. The annual expense for this space is approximately $22,000 per year. The lease is valid through February 13, 2017. Our subsidiary Neonode Taiwan Ltd leases office space located at Rm. 2406, International Trade Building, Keelung Rd., Sec.1, Taipei 11012, Taiwan. The annual expense for this space is approximately $31,000 per year. The lease can be terminated with a three months’ notice. Neonode Technologies AB’s majority-owned subsidiary Pronode Technologies AB entered leases agreement 9,040 square feet of workshop located at Faktorvägen 17, Kungsbacka, Sweden for approximately $95,000 per year. The lease is valid through December 9, 2017. For the years ended December 31, 2015, 2014 and 2013, we recorded approximately $641,000, $633,000 and $556,000, respectively, for rent expense. We believe our existing facilities are in good condition and suitable for the conduct of our business. A summary of future minimum payments under non-cancellable operating lease commitments as of December 31, 2015 is as follows (in thousands): Years ending December 31, Total 2016 $ 741 2017 646 2018 93 $ 1,480 Equipment Subject to Capital Lease In April 2014, we entered into a lease for certain specialized milling equipment. Under the terms of the lease agreement we are obligated to purchase the equipment at the end of the original 6 year lease term for 10% of the original purchase price of the equipment. In accordance with relevant accounting guidance the lease is classified as a capital lease. The lease payments and depreciation period began on July 1, 2014 when the equipment went into service. The equipment is being amortized to research and development expense on a straight line basis over 6 years at the rate of approximately $16,000 per quarter. The interest rate of the lease is 4% per annum. The following is a schedule of minimum future rentals on the non-cancelable capital lease as of December 31, 2015 (in thousands): Year ending December 31, Total 2016 $ 72 2017 72 2018 72 2019 72 2020 94 Total minimum payments required: 382 Less amount representing interest: (42 ) Present value of net minimum lease payments: 340 Less current portion (57 ) $ 283 Equipment under capital lease $ 427 Less: accumulated depreciation (95 ) Net book value $ 332

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2015
Segment Information [Abstract]
Segment Information	11. Segment Information Our Company has one reportable segment, which is comprised of the touch technology licensing business. All of our sales for the years ended December 31, 2015, 2014 and 2013 were to customers located in the U.S., Europe and Asia. The following table presents net revenues by geographic region for the years ended December 31, 2015, 2014 and 2013 (dollars in thousands): 2015 Amount Percentage Net revenues from customers in the U.S. $ 6,177 56 % Net revenue from customers in Europe 2,987 27 % Net revenues from customers in Asia 1,951 17 % Total $ 11,115 100 % 2014 Amount Percentage Net revenues from customers in the U.S. $ 2,833 60 % Net revenues from customers in Europe 228 5 % Net revenues from customers in Asia 1,679 35 % Total $ 4,740 100 % 2013 Amount Percentage Net revenues from customers in the U.S. $ 1,896 51 % Net revenues from customers in Europe 308 9 % Net revenues from customers in Asia 1,513 40 % Total $ 3,717 100 %

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Income Taxes	12. Income Taxes Loss before income taxes was distributed geographically for the years ended December 31, as follows (in thousands): 2015 2014 2013 Domestic $ (7,783 ) $ (13,993 ) $ (12,877 ) Foreign 41 (228 ) (94 ) Total $ (7,742 ) $ (14,221 ) $ (12,971 ) The provision for income taxes is as follows for the years ended December 31 (in thousands): 2015 2014 2013 Current Federal $ - $ - $ - State 2 3 2 Foreign 91 10 107 Change in deferred Federal (2,466 ) (4,213 ) (3,794 ) Federal valuation allowance 2,466 4,213 3,794 State (252 ) (460 ) 129 State valuation allowance 252 460 (129 ) Foreign 6 64 111 Foreign valuation allowance (6 ) (64 ) (111 ) Total current $ 93 $ 13 $ 109 The differences between our effective income tax rate and the U.S. federal statutory federal income tax rate for the years ended December 31, are: 2015 2014 2013 Amounts at statutory tax rates 34 % 34 % 34 % Foreign losses taxed at different rates - % (1 )% - Stock-based compensation (1 )% (2 )% (3 )% Other (1 )% (1 )% (1 )% Total 32 % 30 % 30 % Valuation allowance (33 )% (31 )% (31 )% Effective tax rate (1 )% (1 )% (1 )% Significant components of the deferred tax asset balances at December 31 are as follows (in thousands): 2015 2014 Deferred tax assets: Accruals $ 1,109 $ 1,053 Stock compensation 1,352 1,210 Net operating losses 17,190 14,681 Basis difference in fixed assets 7 2 Total deferred tax assets $ 19,658 $ 16,946 Valuation allowance (19,658 ) (16,946 ) Total net deferred tax assets $ - $ - Valuation allowances are recorded to offset certain deferred tax assets due to management’s uncertainty of realizing the benefits of these items. Management applies a full valuation allowance for the accumulated losses of Neonode Inc., and its subsidiaries, since it is not determinable using the “more likely than not” criteria that there will be any future benefit of our deferred tax assets. This is mainly due to our history of operating losses. As of December 31, 2015, we had federal, state and foreign net operating losses of $48.6 million, $19.8 million and $0, respectively. The federal loss carryforward begins to expire in 2028, the California loss carryforward begins to expire in 2030 and the foreign loss carryforward is indefinite. Utilization of the net operating loss and tax credit carryforwards is subject to an annual limitation due to the ownership percentage change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. The annual limitation may result in the expiration of the net operating losses and tax credit carryforwards before utilization. As of December 31, 2015, we had not completed the determination of the amount to be limited under the provision. As of December 31, 2015, we did not recognize $547,000 and $28,000 of federal and state deferred tax assets relating to excess tax benefits for stock-based compensation deductions. Unrecognized deferred tax benefits will be accounted for as a credit to additional paid-in capital when realized through a reduction in income taxes payable. We follow the provisions of accounting guidance which includes a two-step approach to recognizing, de-recognizing and measuring uncertain tax positions. There were no unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013. We follow the policy to classify accrued interest and penalties as part of the accrued tax liability in the provision for income taxes. For the years ended December 31, 2015, 2014 and 2013 we did not recognize any interest or penalties related to unrecognized tax benefits. Our continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of December 31, 2015 and 2014, we had no accrued interest and penalties related to uncertain tax matters. As of December 31, 2015, we had no uncertain tax positions that would be reduced as a result of a lapse of the applicable statute of limitations. Payments related to the license agreement with Sony Corporation are net of 10% income tax withholding as required by the Japanese government under the Sweden and Japan international tax treaty. The amounts withheld may be used to offset future payables for income tax in Sweden. In the year ended December 31, 2015, $80,000 was withheld. In the years ended December 31, 2015, 2014 and 2013, $0, $0 and $42,000 were withheld, respectively. We file income tax returns in the U.S. federal jurisdiction, California, Sweden, Japan, South Korea and Taiwan. The 1999 through 2014 tax years are open and may be subject to potential examination in one or more jurisdictions. We are not currently under any federal, state or foreign income tax examinations.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2015
Employee Benefit Plans [Abstract]
Employee Benefit Plans	13. Employee Benefit Plans We participate in a number of individual defined contribution pension plans for our employees in Sweden. We contribute five percent (5%) of the employee’s annual salary to these pension plans. For the Swedish Management we contribute up to fifteen percent (15%) of the employee’s annual salary. Contributions relating to these defined contribution plans for the years ended December 31, 2015, 2014 and 2013 were $306,000, $249,000 and $184,000, respectively. We match U.S. employee contributions to a 401k retirement plan up to a maximum of six percent (6%) of an employee’s annual salary. Contributions relating to the matching 401k contributions for the years ended December 31, 2015, 2014 and 2013 were $89,000, $81,000 and $66,000, respectively. In Taiwan, we contribute six percent (6%) of the employee’s annual salary to a pension fund which agrees with Taiwan’s newly made Labor Pension Act. Contributions relating to the Taiwanese pension fund for the year ended December 31, 2015, were $10,000.

Net Loss Per Share

Net Loss Per Share	12 Months Ended
	Dec. 31, 2015
Net Loss Per Share [Abstract]
Net Loss Per Share	14. Net Loss per Share Basic net loss per common share for the years ended December 31, 2015, 2014 and 2013 was computed by dividing the net loss attributable to Neonode Inc. for the relevant period by the weighted average number of shares of common stock outstanding during the year. Diluted loss per common share is computed by dividing net loss attributable to Neonode Inc. for the relevant period by the weighted average number of shares of common stock and common stock equivalents outstanding during the year. Potential common stock equivalents of approximately 13,000, 0.3 million and 0.8 million outstanding stock warrants, 11,000, 11,000 and 11,000 shares issuable upon conversion of preferred stock, 7,000, 24,000 and 1.6 million stock options are excluded from the diluted earnings per share calculation for the years ended December 31, 2015, 2014 and 2013, respectively, due to their anti-dilutive effect. (In thousands, except per share amounts) Years ended December 31, 2015 2014 2013 BASIC AND DILUTED Weighted average number of common shares outstanding 41,202 39,532 35,266 Net loss attributable to Neonode Inc. $ (7,820 ) $ (14,234 ) $ (13,080 ) Net loss per shares basic and diluted $ (0.19 ) $ (0.36 ) $ (0.37 )

Quarterly Financial Information

Quarterly Financial Information	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information [Abstract]
Quarterly Financial Information	15. Quarterly Financial Information For the Quarter Ended March 31, June 30, September 30, December 31, (unaudited, in thousands except per share amounts) 2015 Net Revenues $ 2,263 $ 2,776 $ 3,113 $ 2,963 Cost of revenues 338 737 909 1,796 Gross margin 1,925 2,039 2,204 1,167 Net loss attributable to Neonode Inc. (2,072 ) (1,792 ) (1,368 ) (2,588 ) Net loss per basic and diluted common share $ (0.05 ) $ (0.04 ) $ (0.03 ) $ (0.06 ) 2014 Net Revenues $ 1,014 $ 865 $ 1,126 $ 1,735 Cost of revenues 166 452 422 469 Gross margin 848 413 704 1,266 Net loss attributable to Neonode Inc. (4,008 ) (3,874 ) (3,245 ) (3,107 ) Net loss per basic and diluted common share $ (0.11 ) $ (0.10 ) $ (0.08 ) $ (0.08 ) 2013 Net Revenues $ 548 $ 1,084 $ 1,076 $ 1,009 Cost of revenues 16 662 765 199 Gross margin 532 422 311 810 Net loss attributable to Neonode Inc. (3,570 ) (3,120 ) (3,343 ) (3,047 ) Net loss per basic and diluted common share $ (0.11 ) $ (0.09 ) $ (0.09 ) $ (0.08 ) Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with the per share amounts for the year.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2015
Schedule II - Valuation and Qualifying Accounts [Abstract]
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (All dollar amounts expressed in thousands of U.S. dollars) Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year Year ended December 31, 2015 Allowance for doubtful accounts $ 167 $ - $ - $ 167 Deferred tax asset valuation allowance $ (16,946 ) $ - $ (2,712 ) $ (19,658 ) Year ended December 31, 2014 Allowance for doubtful accounts $ - $ 167 $ - $ 167 Deferred tax asset valuation allowance $ (12,335 ) $ - $ (4,611 ) $ (16,946 ) Year ended December 31, 2013 Deferred tax asset valuation allowance $ (8,302 ) $ - $ (4,033 ) $ (12,335 )

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Neonode Inc. and its wholly owned subsidiaries, as well as Pronode Technologies AB, a 51% majority owned subsidiary of Neonode Technologies AB. The remaining 49% of Pronode Technologies AB is owned by Propoint AB, located in Gothenburg, Sweden. Pronode Technologies AB was organized to sell engineering services within the automotive markets. All inter-company accounts and transactions have been eliminated in consolidation. The consolidated statements of operations, comprehensive loss and cash flows for the year ended December 31, 2013 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.) and Neno User Interface Solutions AB (Sweden). The consolidated balance sheet at December 31, 2014 and the consolidated statements of operations, comprehensive loss and cash flows for the year ended December 31, 2014 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.), Neno User Interface Solutions AB (Sweden) and Neonode Korea Ltd. (South Korea). The consolidated balance sheet at December 31, 2015 and the consolidated statements of operations, comprehensive loss and cash flows for the year ended December 31, 2015 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.), Neno User Interface Solutions AB (Sweden), Neonode Korea Ltd. (South Korea) and Neonode Taiwan Ltd. (Taiwan), and the majority-owned subsidiary of Neonode Technologies AB, Pronode Technologies AB.
Estimates	Estimates The preparation of financial statements in conformity with U.S. GAAP 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. Actual results could differ from these estimates. Significant estimates include, but are not limited to, collectability of accounts receivable, the achievement of substantive milestones and vendor-specific objective evidence (“VSOE”) of fair value for purposes of revenue recognition (or deferral of revenue), recoverability of capitalized project costs and long-lived assets, the valuation allowance related to our deferred tax assets, and the fair value of 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. The Company considers 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, Korea, Taiwan and Sweden. For deposits held with financial institutions in the U.S. the U.S. Federal Deposit Insurance Corporation, provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 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. The Korea Deposit Insurance Corporation provides insurance coverage up to 50,000,000 Won per customer. The Central Deposit Insurance Corporation in Taiwan provides insurance coverage up to 3,000,000 Taiwan Dollar per customer. At times, deposits held with financial institutions may exceed the amount of insurance provided.
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. Our allowance for doubtful accounts was approximately $167,000 as of December 31, 2015 and 2014.
Projects in Process	Projects in Process Projects in process consist of costs incurred toward the completion of various projects for certain customers. These costs are primarily comprised of direct engineering labor costs and project-specific equipment costs. These costs are capitalized on our balance sheet as an asset and deferred until revenue for each project is recognized in accordance with our revenue recognition policy. Costs capitalized in projects in process were $158,000 and $200,000 as of December 31, 2015 and 2014, respectively.
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 as follows: Estimated useful lives Computer equipment 3 years Furniture and fixtures 5 years Equipment 7 years Equipment purchased under a capital lease is recognized over the term of the lease, if that lease term is shorter than the estimated useful life. 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. As of December 31, 2015, we believe there was no impairment of our long-lived assets. There can be no assurance, however, that market conditions will not change or sufficient demand for our products and services will continue, 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, the Japanese Yen, the South Korean Won and the Taiwan Dollar. The translation from Swedish Krona, Japanese Yen, South-Korean Won or the Taiwan Dollar to U.S. Dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted average exchange rate during the period. Gains or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $62,000, ($37,000) and ($155,000) during the years ended December 31, 2015, 2014 and 2013, respectively. Foreign currency translation gains or (losses) were ($103,000), $138,000 and $6,000 during the years ended December 31, 2015, 2014 and 2013, respectively.
Concentration of Credit and Business Risks	Concentration of Credit and Business Risks Our customers are located in U.S., Europe and Asia. As of December 31, 2015, three customers represented approximately 78% of our consolidated accounts receivable. As of December 31, 2014, three customers represented approximately 87% of our consolidated accounts receivable. Our net revenues for the year ended December 31, 2015 were earned from thirty-five customers. Customers who accounted for 10% or more of our net revenues during the year ended December 31, 2015 are as follows. ● Hewlett-Packard Company – 25% ● Autoliv – 21% ● Amazon – 14% Our net revenues for the year ended December 31, 2014 were earned from thirty-two customers. Customers who accounted for 10% or more of our net revenues during the year ended December 31, 2014 are as follows. ● Hewlett-Packard Company – 24% ● KOBO Inc. – 10% ● Leap Frog Enterprises Inc. – 11% ● Sony Corporation – 10% Our revenues for the year ended December 31, 2013 were earned from twenty-nine customers. Customers who accounted for 10% or more of our net revenues during the year ended December 31, 2013 are as follows. ● KOBO Inc. – 28% ● Netronix Inc. – 18% ● Leap Frog Enterprises Inc. – 12% ● Sony Corporation – 11% The Company conducts business in the U.S., Europe and Asia. At December 31, 2015, the Company maintained approximately $2,533,000, ($909,000) and $209,000 of its net assets (liabilities) in the U.S., Europe and Asia, respectively. At December 31, 2014, the Company maintained approximately $3,713,000, ($461,000) and $18,000 of its net assets (liabilities) in the U.S., Europe and Asia, respectively.
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. 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. We follow U.S. GAAP for revenue recognition as per unit royalty products are distributed or licensed by our 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. We recognize licensing revenue in the period in which royalty reports are received, rather than the period in which the products are distributed or to which the license relates. Explicit return rights are not offered to customers. There have been no returns through December 31, 2015. 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. Engineering services are performed under a signed Statement of Work (“SOW”) with a customer. The deliverables and payment terms stipulated under the SOW provide guidance on the project revenue recognition. Revenues from contracts that are short-term in nature and related costs that are difficult to estimate are accounted for under the completed contract method. Revenues from contracts with substantive defined milestones that we have determined are reasonable, relevant to all the deliverables and payment terms in the SOW that are commensurate with the efforts required to achieve the milestones are recognized under the milestone recognition method. Estimated losses on all SOW projects are recognized in full as soon as they become evident. In the year ended December 31, 2015, $165,000 was recorded as cost of sales due to expected losses related to two SOW projects. In the years ended December 31, 2014 and 2013 no losses related to SOW projects were recorded.
Deferred Revenues	Deferred Revenues We defer license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed and royalty reports are received. Engineering development fee revenues are deferred until such time as the engineering work has been completed and accepted by our customers. As of December 31, 2015 and 2014, we have $1.1 million and $3.0 million, respectively, of deferred license fee revenue related to prepayments for future license fees from two and four customers, respectively and a total of $0.4 million and $0.4 million, respectively, of deferred engineering development fees from one and five customers, respectively.
Advertising	Advertising Advertising costs are expensed as incurred. Advertising costs amounted to approximately $328,000, $172,000 and $141,000 for the years ended December 31, 2015, 2014 and 2013, respectively.
Research and Development	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 share options, based on the estimated 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 estimated fair value. The measurement date for the estimated fair value for the equity instruments issued is determined at the earlier of (1) the date at which a commitment for performance by the consultant or vendor is reached, or (2) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the estimated fair value of the equity instruments is primarily recognized over the term of the consulting agreement. The estimated fair value of the stock-based compensation is periodically re-measured and income or 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.
Noncontrolling Interests	Noncontrolling Interests The Company recognizes noncontrolling interests as equity in the consolidated financial statements separate from the parent company’s equity. Noncontrolling interests’ partners have less than 50% share of voting rights at any one of the subsidiary level companies. The amount of net income (loss) attributable to noncontrolling interests is included in consolidated net income (loss) on the face of the consolidated statements of operations. Changes in a parent entity’s ownership interest in a subsidiary that do not result in deconsolidation are treated as equity transactions if the parent entity retains its controlling financial interest. The Company recognizes a gain or loss in net income (loss) when a subsidiary is deconsolidated. Such gain or loss is measured using the fair value of the noncontrolling equity investment on the deconsolidation date. Additionally, operating losses are allocated to noncontrolling interests even when such allocation creates a deficit balance for the noncontrolling interest partner. The Company provides either in the consolidated statement of stockholders’ equity, if presented, or in the notes to consolidated financial statements, a reconciliation at the beginning and the end of the period of the carrying amount of total equity (net assets), equity (net assets) attributable to the parent, and equity (net assets) attributable to the noncontrolling interest that separately discloses: (1) Net income or loss (2) Transactions with owners acting in their capacity as owners, showing separately contributions from and distributions to owners. (3) Each component of other comprehensive income or loss
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 December 31, 2015 and 2014. 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 payable for the current period. We follow U.S. GAAP 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 December 31, 2015 and 2014, 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 years ended December 31, 2015, 2014 and 2013. 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 years ended December 31, 2015, 2014 and 2013 exclude the potential common stock equivalents, as the effect would be anti-dilutive (see Note 14).
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss) Our comprehensive loss includes foreign currency translation gains and losses. The cumulative amount of translation gains and losses are reflected as a separate component of stockholders’ equity in the consolidated balance sheets, as accumulated other comprehensive income.
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 was as follows: Years ended December 31, 2015 2014 2013 Swedish Krona 8.43 6.86 6.51 Japanese Yen 121.03 105.84 97.58 South Korean Won 1,130.22 1,050.63 - Taiwan Dollar 31.73 - - Exchange rate for the consolidated balance sheets was as follows: Years ended December 31, 2015 2014 Swedish Krona 8.42 7.80 Japanese Yen 120.36 119.93 South Korean Won 1,174.67 1,096.73 Taiwan Dollar 32.84 -
Fair Value of Financial Instruments	Fair Value of Financial Instruments We disclose the estimated fair values for all financial instruments for which it is practicable to estimate fair value. Financial instruments including cash, accounts receivable, accounts payable and accrued expenses and are deemed to approximate fair value due to their short maturities.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606)” In August 2014, the FASB issued ASU No. 2014-15, “ Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In November 2015, FASB issued ASU 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Schedule of estimated useful lives of property and equipment	Estimated useful lives Computer equipment 3 years Furniture and fixtures 5 years Equipment 7 years
Schedule of weighted average exchange rate for consolidated statements of operations	Years ended December 31, 2015 2014 2013 Swedish Krona 8.43 6.86 6.51 Japanese Yen 121.03 105.84 97.58 South Korean Won 1,130.22 1,050.63 - Taiwan Dollar 31.73 - -
Schedule of exchange rate for consolidated balance sheets	Years ended December 31, 2015 2014 Swedish Krona 8.42 7.80 Japanese Yen 120.36 119.93 South Korean Won 1,174.67 1,096.73 Taiwan Dollar 32.84 -

Prepaid Expenses and Other Cu26

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Prepaid Expenses and Other Current Assets [Abstract]
Schedule of prepaid expense and other current assets	As of December 31, 2015 2014 Prepaid insurance $ 119 $ 122 Prepaid rent 52 39 VAT receivable 337 137 Other 239 215 Total prepaid expenses and other current assets $ 747 $ 513

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property and Equipment [Abstract]
Schedule of property and equipment	As of December 31, 2015 2014 Computers, software, furniture and fixtures $ 637 $ 546 Equipment under capital lease 428 458 Less accumulated depreciation and amortization (471 ) (350 ) Property and equipment, net $ 594 $ 654

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2015
Accrued Expenses [Abstract]
Schedule of accrued expenses	As of December 31, 2015 2014 Salaries, payroll taxes, vacation and benefits $ 932 $ 686 Accrued consulting fees and other 382 249 Total accrued expenses $ 1,314 $ 935

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity [Abstract]
Schedule of conversion of preferred stock issued to common stock	Shares of Preferred Stock Not Exchanged as of December 31, 2015 Conversion Ratio Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at December 31, 2015 Series B Preferred Stock 83 132.07 10,962

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of options outstanding by exercise price range	Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding at 12/31/15 Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Number Exercisable at 12/31/15 Weighted Average Exercise Price $ 2.08 - $ 3.50 296,450 6.10 $ 2.98 62,717 $ 2.95 $ 3.51 - $ 5.00 1,516,000 3.16 $ 4.22 1,501,000 $ 4.23 $ 5.01 - $ 6.50 201,667 4.53 $ 5.84 161,385 $ 5.81 $ 6.51 - $ 8.21 170,000 2.80 $ 7.83 163,334 $ 7.84 2,184,117 3.65 $ 4.48 1,888,436 $ 4.63
Summary of assumptions used to value stock options granted to employees and directors	For the year ended December 31, 2015 Annual dividend yield - Expected life (years) 2.97 Risk-free interest rate 0.47% - 1.41 % Expected volatility 60.07% - 72.33 % For the year ended December 31, 2014 Annual dividend yield - Expected life (years) 3.5 Risk-free interest rate 0.28% - 1.47 % Expected volatility 60.68% - 108.75 % For the year ended December 31, 2013 Annual dividend yield - Expected life (years) 4.3 Risk-free interest rate 0.65% - 2.15 % Expected volatility 117% - 154 %
Summary of stock-based compensation expense	Years ended December 31, 2015 2014 2013 Research and development $ 484 $ 510 $ 267 Sales and marketing 296 353 909 General and administrative 295 866 1,480 Stock compensation expense $ 1,075 $ 1,729 $ 2,656 (In thousands) Remaining unrecognized expense at Stock-based compensation $ 520
Summary of all warrant activity	Outstanding and exercisable Warrants Weighted Average Exercise Price Weighted Average January 1, 2013 4,704,636 $ 1.61 1.41 Issued - - - Expired/forfeited - - - Exercised (3,876,063 ) 1.45 - December 31, 2013 828,573 2.39 2.06 Issued 2,575,000 5.09 - Expired/forfeited (40,000 ) 3.98 - Exercised (28,500 ) 2.85 - December 31, 2014 3,335,073 4.45 0.93 Issued - - - Expired/forfeited (2,591,000 ) 5.06 - Exercised (280,000 ) 1.30 - Outstanding and exercisable, December 31, 2015 464,073 $ 3.02 0.19
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of all stock option plans / warrant activity	Options Outstanding Weighted- Average Weighted- Remaining Average Contractual Aggregate Number of Exercise Life Intrinsic Shares Price (in years) Value Options outstanding – January 1, 2013 1,715,200 $ 5.04 Options granted 145,000 6.06 Options exercised (241,361 ) 4.39 Options cancelled or expired (18,256 ) 5.57 Options outstanding – December 31, 2013 1,600,583 $ 5.22 Options granted 405,200 6.31 Options exercised - - Options cancelled or expired (296,383 ) 5.46 Options outstanding – December 31, 2014 1,709,400 4.92 Options granted 605,000 3.57 Options exercised - - Options cancelled or expired (130,283 ) 6.03 Options outstanding – December 31, 2015 2,184,117 $ 4.48 3.65 $ 10,740 Options exercisable and expected to vest – December 31, 2015 1,888,436 $ 4.63 3.30 $ 4,006
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of all stock option plans / warrant activity	Issue Date Exercise Price Shares Expiration Date February 2011 Legal Advisor Warrant 2/22/2011 $ 2.50 80,000 2/22/2016 March 2011 Investor Warrants 3/9/2011 $ 3.13 349,973 3/9/2016 March 2011 Investor Warrants 4/7/2011 $ 3.13 34,100 4/7/2016 Total Warrants Outstanding 464,073

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies [Abstract]
Summary of future minimum payments under operating lease commitments	Years ending December 31, Total 2016 $ 741 2017 646 2018 93 $ 1,480
Schedule of minimum future rentals on the non-cancelable capital lease	Year ending December 31, Total 2016 $ 72 2017 72 2018 72 2019 72 2020 94 Total minimum payments required: 382 Less amount representing interest: (42 ) Present value of net minimum lease payments: 340 Less current portion (57 ) $ 283
Schedule of equipment under capital lease	Equipment under capital lease $ 427 Less: accumulated depreciation (95 ) Net book value $ 332

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Information [Abstract]
Summary of net revenues by geographic region	2015 Amount Percentage Net revenues from customers in the U.S. $ 6,177 56 % Net revenue from customers in Europe 2,987 27 % Net revenues from customers in Asia 1,951 17 % Total $ 11,115 100 % 2014 Amount Percentage Net revenues from customers in the U.S. $ 2,833 60 % Net revenues from customers in Europe 228 5 % Net revenues from customers in Asia 1,679 35 % Total $ 4,740 100 % 2013 Amount Percentage Net revenues from customers in the U.S. $ 1,896 51 % Net revenues from customers in Europe 308 9 % Net revenues from customers in Asia 1,513 40 % Total $ 3,717 100 %

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Summary of income (loss) before income taxes by geographically	2015 2014 2013 Domestic $ (7,783 ) $ (13,993 ) $ (12,877 ) Foreign 41 (228 ) (94 ) Total $ (7,742 ) $ (14,221 ) $ (12,971 )
Summary of provision for income taxes	2015 2014 2013 Current Federal $ - $ - $ - State 2 3 2 Foreign 91 10 107 Change in deferred Federal (2,466 ) (4,213 ) (3,794 ) Federal valuation allowance 2,466 4,213 3,794 State (252 ) (460 ) 129 State valuation allowance 252 460 (129 ) Foreign 6 64 111 Foreign valuation allowance (6 ) (64 ) (111 ) Total current $ 93 $ 13 $ 109
Summary of reconciliation of effective income tax rate and statutory federal income tax rate	2015 2014 2013 Amounts at statutory tax rates 34 % 34 % 34 % Foreign losses taxed at different rates - % (1 )% - Stock-based compensation (1 )% (2 )% (3 )% Other (1 )% (1 )% (1 )% Total 32 % 30 % 30 % Valuation allowance (33 )% (31 )% (31 )% Effective tax rate (1 )% (1 )% (1 )%
Summary of significant components of the deferred tax	2015 2014 Deferred tax assets: Accruals $ 1,109 $ 1,053 Stock compensation 1,352 1,210 Net operating losses 17,190 14,681 Basis difference in fixed assets 7 2 Total deferred tax assets $ 19,658 $ 16,946 Valuation allowance (19,658 ) (16,946 ) Total net deferred tax assets $ - $ -

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Net Loss Per Share [Abstract]
Basic and diluted for net loss per share	(In thousands, except per share amounts) Years ended December 31, 2015 2014 2013 BASIC AND DILUTED Weighted average number of common shares outstanding 41,202 39,532 35,266 Net loss attributable to Neonode Inc. $ (7,820 ) $ (14,234 ) $ (13,080 ) Net loss per shares basic and diluted $ (0.19 ) $ (0.36 ) $ (0.37 )

Quarterly Financial Informati35

Quarterly Financial Information (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information [Abstract]
Summary of selected quarterly financial information	For the Quarter Ended March 31, June 30, September 30, December 31, (unaudited, in thousands except per share amounts) 2015 Net Revenues $ 2,263 $ 2,776 $ 3,113 $ 2,963 Cost of revenues 338 737 909 1,796 Gross margin 1,925 2,039 2,204 1,167 Net loss attributable to Neonode Inc. (2,072 ) (1,792 ) (1,368 ) (2,588 ) Net loss per basic and diluted common share $ (0.05 ) $ (0.04 ) $ (0.03 ) $ (0.06 ) 2014 Net Revenues $ 1,014 $ 865 $ 1,126 $ 1,735 Cost of revenues 166 452 422 469 Gross margin 848 413 704 1,266 Net loss attributable to Neonode Inc. (4,008 ) (3,874 ) (3,245 ) (3,107 ) Net loss per basic and diluted common share $ (0.11 ) $ (0.10 ) $ (0.08 ) $ (0.08 ) 2013 Net Revenues $ 548 $ 1,084 $ 1,076 $ 1,009 Cost of revenues 16 662 765 199 Gross margin 532 422 311 810 Net loss attributable to Neonode Inc. (3,570 ) (3,120 ) (3,343 ) (3,047 ) Net loss per basic and diluted common share $ (0.11 ) $ (0.09 ) $ (0.09 ) $ (0.08 )

Nature of the Business and Op36

Nature of the Business and Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 13, 2015	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Nature of the Business and Operations [Line Items]
Net loss (including noncontrolling interests)		$ (2,588)	$ (1,368)	$ (1,792)	$ (2,072)	$ (3,107)	$ (3,245)	$ (3,874)	$ (4,008)	$ (3,047)	$ (3,343)	$ (3,120)	$ (3,570)	$ (7,820)	$ (14,234)	$ (13,080)
Accumulated deficit		$ (173,749)				$ (165,929)								(173,749)	(165,929)
Net cash used in operating activities														$ (8,063)	$ (11,824)	$ (8,801)
Issuance of common stock	3,200,000	1,800,000
Price per share	$ 1.90
Stock issued for cash	$ 6,100
Cash	5,400
Direct offering cost	$ 700

Summary of Significant Accoun37

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2015
Computer equipment [Member]
Estimated useful lives of property and equipment
Estimated useful lives	P3Y
Furniture and fixtures [Member]
Estimated useful lives of property and equipment
Estimated useful lives	P5Y
Equipment [Member]
Estimated useful lives of property and equipment
Estimated useful lives	P7Y

Summary of Significant Accoun38

Summary of Significant Accounting Policies (Details 1)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Swedish Krona
Weighted average exchange rate for consolidated statements of operations
Weighted-average exchange rate for consolidated statements of operations	8.43	6.86	6.51
Japanese Yen
Weighted average exchange rate for consolidated statements of operations
Weighted-average exchange rate for consolidated statements of operations	121.03	105.84	97.58
South Korean Won
Weighted average exchange rate for consolidated statements of operations
Weighted-average exchange rate for consolidated statements of operations	1,130.22	1,050.63
Taiwan Dollar
Weighted average exchange rate for consolidated statements of operations
Weighted-average exchange rate for consolidated statements of operations	31.73

Summary of Significant Accoun39

Summary of Significant Accounting Policies (Details 2)	Dec. 31, 2015	Dec. 31, 2014
Swedish Krona
Exchange Rate for Consolidated Balance Sheets
Exchange rate for the consolidated balance sheets	8.42	7.80
Japanese Yen
Exchange Rate for Consolidated Balance Sheets
Exchange rate for the consolidated balance sheets	120.36	119.93
South Korean Won
Exchange Rate for Consolidated Balance Sheets
Exchange rate for the consolidated balance sheets	1,174.67	1,096.73
Taiwan Dollar
Exchange Rate for Consolidated Balance Sheets
Exchange rate for the consolidated balance sheets	32.84

Summary of Significant Accoun40

Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)Customers	Dec. 31, 2014USD ($)Customers	Dec. 31, 2013USD ($)Customers	Dec. 31, 2015SEK	Dec. 31, 2015TWD	Dec. 31, 2015KRW (₩)	Dec. 31, 2015JPY (¥)
Summary of Significant Accounting Policies (Textual)
Noncontrolling interest owned by Pronode Technologies AB	51.00%			51.00%	51.00%	51.00%	51.00%
Noncontrolling interest owned by Propoint AB	49.00%			49.00%	49.00%	49.00%	49.00%
Basic deposit coverage limits per owner and customer	$ 250,000			SEK 100,000	TWD 3,000,000	₩ 50,000,000	¥ 10,000,000
Allowance for doubtful accounts	167,000	$ 167,000
Environmental Costs Recognized, Capitalized in Period	158,000	200,000
Foreign currency translation included in general and administrative expense	62,000	(37,000)	$ (155,000)
Foreign currency translation adjustments	(103,000)	$ 138,000	$ 6,000
Cost of sales	165,000
Advertising costs	$ 328,000	$ 172,000	$ 141,000
Noncontrolling interest, Description	Noncontrolling interests' partners have less than 50% share of voting rights at any one of the subsidiary level companies.
Number of customers | Customers	35	29	32
Accounts Receivable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage	78.00%	87.00%
Number of customers | Customers	3	3
Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage	10.00%	10.00%	10.00%
Hewlett Packard [Member] | Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage	25.00%	24.00%
KOBO Inc [Member] | Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage		10.00%	28.00%
Leap Frog Enterprises Inc [Member] | Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage		11.00%	12.00%
Netronix Inc [Member] | Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage			18.00%
Sony Corporation [Member] | Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage		10.00%	11.00%
Amazon Inc [Member] | Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage	14.00%
Autoliv [Member] | Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage	21.00%
Two customer [Member]
Summary of Significant Accounting Policies (Textual)
Deferred license fee	$ 1,100,000
Number of customers | Customers	2
Four customer [Member]
Summary of Significant Accounting Policies (Textual)
Deferred license fee		$ 3,000
Number of customers | Customers		4
One customer [Member]
Summary of Significant Accounting Policies (Textual)
Deferred license fee	$ 400
Number of customers | Customers	1
Five customer [Member]
Summary of Significant Accounting Policies (Textual)
Deferred license fee		$ 400
Number of customers | Customers		5
U.S. [Member]
Summary of Significant Accounting Policies (Textual)
Net assets (liabilities)	$ 2,533,000	$ 3,713,000
Europe [Member]
Summary of Significant Accounting Policies (Textual)
Net assets (liabilities)	(909,000)	(461,000)
Asia [Member]
Summary of Significant Accounting Policies (Textual)
Net assets (liabilities)	$ 209,000	$ 18,000

Prepaid Expenses and Other Cu41

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of prepaid expense and other current assets
Prepaid insurance	$ 119	$ 122
Prepaid rent	52	39
VAT receivable	337	137
Other	239	215
Total prepaid expenses and other current assets	$ 747	$ 513

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of property and equipment
Equipment under capital lease	$ 428	$ 458
Less accumulated depreciation and amortization	(471)	(350)
Property and equipment, net	594	654
Computers, software, furniture and fixtures [Member]
Schedule of property and equipment
Computers, software, furniture and fixtures	$ 637	$ 546

Property and Equipment (Detai43

Property and Equipment (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property and Equipment [Abstract]
Depreciation and amortization expense	$ 187	$ 202	$ 144

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of accrued expenses
Salaries, payroll taxes, vacation and benefits	$ 932	$ 686
Accrued consulting fees and other	382	249
Total accrued expenses	$ 1,314	$ 935

Deferred Revenues (Details)

Deferred Revenues (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)Customers	Dec. 31, 2014USD ($)Customers
Deferred Revenues (Textual)
Deferred license fee revenue	$ 1,475	$ 3,403
Prepayments from Future License Fees [Member]
Deferred Revenues (Textual)
Deferred license fee revenue	$ 1,100	$ 3,000
Number of customer | Customers	2	4
Deferred Engineering Development Fees [Member]
Deferred Revenues (Textual)
Deferred license fee revenue	$ 400	$ 400
Number of customer | Customers	1	5

Stockholders' Equity (Details)

Stockholders' Equity (Details) - Series B Preferred Stock [Member]	Mar. 21, 2013shares	Feb. 27, 2013shares	Dec. 31, 2015shares
Schedule of conversion of preferred stock issued to common stock
Shares of Preferred Stock Not Exchanged			83
Conversion Ratio			132.07
Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged	8	4	10,962

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual)	Oct. 13, 2015USD ($)$ / sharesshares	Sep. 16, 2013USD ($)shares	Apr. 04, 2013USD ($)$ / sharesshares	Mar. 21, 2013shares	Feb. 27, 2013shares	Feb. 26, 2013shares	Dec. 31, 2011USD ($)shares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)$ / sharesshares	Aug. 12, 2013shares	Jun. 30, 2014shares
Stockholders Equity (Textual)
Issuance of common stock | $		$ 7,700,000							$ 10,000,000
Issuance of common stock, shares		1,168,939							2,500,000
Shares price per share | $ / shares									$ 4
Proceeds from sale of stock after expenses and fees | $		$ 6,900,000							$ 9,300,000
Placement agent fee | $									$ 600,000
Warrants issued to purchase shares of common stock									2,500,000
Direct offering cost | $	$ 700,000
Cash | $	$ 5,400,000
Common Stock, Capital Shares Reserved for Future Issuance												5,000,000
Price per share | $ / shares	$ 1.90
Stock issued for cash | $	$ 6,100,000
Exercise price | $ / shares			$ 1						$ 5.09
Warrants issued to placement agent									75,000
Stock purchase warrant			40,000
Estimated fair value of the warrants | $			$ 166,000
Proceeds from issuance of warrants | $			$ 40,000
Issuance costs | $		$ 800,000							$ 700,000
Series B Preferred Stock [Member]
Stockholders Equity (Textual)
Preferred stock conversion ratio per share of common stock								132.07
Preferred stock, liquidation preference | $ / shares								$ 0.001	$ 0.001
Conversion of shares				8	4			10,962
Conversion of stock, shares issued				929	528
Preferred stock voting rights description									The holders of shares of Series B Preferred stock have one vote for each share of Series B Preferred stock held by them.
Preferred stock conversion description									Each share of Series B Preferred stock was convertible into one share of our common stock.
Series A Preferred Stock [Member]
Stockholders Equity (Textual)
Conversion of shares				83
Conversion of stock, shares issued				39,790
Thomas Eriksson [Member]
Stockholders Equity (Textual)
Aggregate shares of common stock, shares	157,893							157,893
Aggregate purchase price of common stock, value | $	$ 300,000							$ 300,000
Per Bystedt [Member]
Stockholders Equity (Textual)
Aggregate shares of common stock, shares	157,893							157,893
Aggregate purchase price of common stock, value | $	$ 300,000							$ 300,000
Mats Dahlin [Member]
Stockholders Equity (Textual)
Aggregate shares of common stock, shares								157,893
Aggregate purchase price of common stock, value | $								$ 300,000
Maximum [Member]
Stockholders Equity (Textual)
Exercise price | $ / shares										$ 3.13
Minimum [Member]
Stockholders Equity (Textual)
Exercise price | $ / shares										$ 1
Common Stock [Member]
Stockholders Equity (Textual)
Issuance of common stock, shares								3,200,000
Warrants issued to purchase shares of common stock								280,000
Cash | $								$ 5,400,000
Common Stock, Capital Shares Reserved for Future Issuance									5,000,000
Price per share | $ / shares								$ 1.90
Stock issued for cash | $								$ 6,100,000
Common stock purchased by exercise of warrants								150,234
Warrant [Member]
Stockholders Equity (Textual)
Warrants issued to purchase shares of common stock									17,000	1,815,368
Additional warrants issued to purchase shares of common stock									11,500	429,536
Exercise price | $ / shares									$ 3.13
Common stock purchased by exercise of warrants							20,000		10,053	1,384,719
Estimated fair value of the warrants | $							$ 75,000
Proceeds from issuance of warrants | $									$ 36,000	$ 714,000
Warrant [Member] | Phenning Holdings Ltd [Member]
Stockholders Equity (Textual)
Warrants issued to purchase shares of common stock											227,661
Common stock purchased by exercise of warrants											185,890
Warrant [Member] | David Brunton [Member]
Stockholders Equity (Textual)
Warrants issued to purchase shares of common stock						320,000
Common stock purchased by exercise of warrants						266,228
Warrant [Member] | Thomas Eriksson [Member]
Stockholders Equity (Textual)
Warrants issued to purchase shares of common stock											400,000
Common stock purchased by exercise of warrants											326,608
Warrant [Member] | Per Bystedt [Member]
Stockholders Equity (Textual)
Warrants issued to purchase shares of common stock											387,773
Common stock purchased by exercise of warrants											316,624
Warrant [Member] | Mats Dahlin [Member]
Stockholders Equity (Textual)
Warrants issued to purchase shares of common stock											215,724
Common stock purchased by exercise of warrants											176,143
Warrant [Member] | John Reardon [Member]
Stockholders Equity (Textual)
Warrants issued to purchase shares of common stock											80,000
Common stock purchased by exercise of warrants											65,322

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Summary of options outstanding by exercise price range
Options Exercisable, Weighted Average Exercise Price	$ 1.24	$ 3.14
Stock Options [Member]
Summary of options outstanding by exercise price range
Options Outstanding, Number Outstanding at 12/31/15	2,184,117
Options Outstanding, Weighted Average Remaining Contractual Life (years)	3 years 7 months 24 days
Options Outstanding, Weighted Average Exercise Price	$ 4.48
Options Exercisable, Number Exercisable at 12/31/15	1,888,436
Options Exercisable, Weighted Average Exercise Price	$ 4.63
Stock Options [Member] | Range one [Member]
Summary of options outstanding by exercise price range
Range of Exercise Price, Lower Range Limit	2.08
Range of Exercise Price, Upper Range Limit	$ 3.50
Options Outstanding, Number Outstanding at 12/31/15	296,450
Options Outstanding, Weighted Average Remaining Contractual Life (years)	6 years 1 month 6 days
Options Outstanding, Weighted Average Exercise Price	$ 2.98
Options Exercisable, Number Exercisable at 12/31/15	62,717
Options Exercisable, Weighted Average Exercise Price	$ 2.95
Stock Options [Member] | Range two [Member]
Summary of options outstanding by exercise price range
Range of Exercise Price, Lower Range Limit	3.51
Range of Exercise Price, Upper Range Limit	$ 5
Options Outstanding, Number Outstanding at 12/31/15	1,516,000
Options Outstanding, Weighted Average Remaining Contractual Life (years)	3 years 1 month 28 days
Options Outstanding, Weighted Average Exercise Price	$ 4.22
Options Exercisable, Number Exercisable at 12/31/15	1,501,000
Options Exercisable, Weighted Average Exercise Price	$ 4.23
Stock Options [Member] | Range three [Member]
Summary of options outstanding by exercise price range
Range of Exercise Price, Lower Range Limit	5.01
Range of Exercise Price, Upper Range Limit	$ 6.50
Options Outstanding, Number Outstanding at 12/31/15	201,667
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 6 months 11 days
Options Outstanding, Weighted Average Exercise Price	$ 5.84
Options Exercisable, Number Exercisable at 12/31/15	161,385
Options Exercisable, Weighted Average Exercise Price	$ 5.81
Stock Options [Member] | Range four [Member]
Summary of options outstanding by exercise price range
Range of Exercise Price, Lower Range Limit	6.51
Range of Exercise Price, Upper Range Limit	$ 8.21
Options Outstanding, Number Outstanding at 12/31/15	170,000
Options Outstanding, Weighted Average Remaining Contractual Life (years)	2 years 9 months 18 days
Options Outstanding, Weighted Average Exercise Price	$ 7.83
Options Exercisable, Number Exercisable at 12/31/15	163,334
Options Exercisable, Weighted Average Exercise Price	$ 7.84

Stock-Based Compensation (Det49

Stock-Based Compensation (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary of all stock option plans / warrant activity
Number of Shares/Warrants, Options Outstanding, Beginning Balance	1,709,400
Number of Shares/Warrants, Options Outstanding, Ending Balance		1,709,400
Stock Options [Member]
Summary of all stock option plans / warrant activity
Number of Shares/Warrants, Options Outstanding, Beginning Balance	1,709,400	1,600,583	1,715,200
Number of Shares, Options Granted	605,000	405,200	145,000
Number of Shares, Options Exercised			(241,361)
Number of Shares, Options Cancelled or expired	(130,283)	(296,383)	(18,256)
Number of Shares/Warrants, Options Outstanding, Ending Balance	2,184,117	1,709,400	1,600,583
Weighted Average Exercise Price, Options Outstanding, Beginning Balance	$ 4.92	$ 5.22	$ 5.04
Weighted Average Exercise Price, Options Granted	$ 3.57	$ 6.31	6.06
Weighted Average Exercise Price, Options Exercised			4.39
Weighted Average Exercise Price,Options Cancelled or expired	$ 6.03	$ 5.46	5.57
Weighted Average Exercise Price, Options Outstanding, Ending Balance	$ 4.48	$ 4.92	$ 5.22
Options Outstanding, Weighted Average Remaining Contractual Life (years)	3 years 7 months 24 days
Options exercisable and expected to vest, Weighted Average Remaining Contractual Life (years)	3 years 3 months 18 days
Options outstanding, Aggregate intrinsic value	$ 10,740
Options exercisable and expected to vest, Aggregate intrinsic value	$ 4,006
Number of Shares/Warrants, Options exercisable and expected to vest, Ending Balance	1,888,436
Weighted Average Exercise Price, Options exercisable and expected to vest, Ending balance	$ 4.63

Stock-Based Compensation (Det50

Stock-Based Compensation (Details 2)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary of assumptions used to value stock options granted to employees,directors and consultants
Annual dividend yield
Expected life (years)	2 years 11 months 19 days	3 years 6 months	4 years 3 months 18 days
Minimum [Member]
Summary of assumptions used to value stock options granted to employees,directors and consultants
Risk-free interest rate	0.47%	0.28%	0.65%
Expected volatility	60.07%	60.68%	117.00%
Maximum [Member]
Summary of assumptions used to value stock options granted to employees,directors and consultants
Risk-free interest rate	1.41%	1.47%	2.15%
Expected volatility	72.33%	108.75%	154.00%

Stock-Based Compensation (Det51

Stock-Based Compensation (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary of stock-based compensation expense
Stock compensation expense	$ 1,075	$ 1,729	$ 2,656
Remaining unamortized expense of stock-based compensation	520
Research and Development [Member]
Summary of stock-based compensation expense
Stock compensation expense	484	510	267
Sales and Marketing [Member]
Summary of stock-based compensation expense
Stock compensation expense	296	353	909
General and Administrative [Member]
Summary of stock-based compensation expense
Stock compensation expense	$ 295	$ 866	$ 1,480

Stock-Based Compensation (Det52

Stock-Based Compensation (Details 4) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Summary of all stock option plans
Number of Shares/Warrants, Options Outstanding, Beginning Balance	1,709,400
Number of Shares/Warrants, Options Outstanding, Ending Balance		1,709,400
Warrant [Member]
Summary of all stock option plans
Number of Shares/Warrants, Options Outstanding, Beginning Balance	3,335,073	828,573	4,704,636	5,405,606
Warrants, Issued		2,575,000
Warrants, Expired/cancelled	(2,591,000)	(40,000)
Number of Shares, Options Exercised	(280,000)	(28,500)	(3,876,063)
Number of Shares/Warrants, Options Outstanding, Ending Balance	464,073	3,335,073	828,573	4,704,636
Weighted Average Exercise Price, Options Outstanding, Beginning Balance	$ 4.45	$ 2.39	$ 1.61
Weighted Average Exercise Price, Granted		5.09
Weighted Average Exercise Price,Options Cancelled or expired	$ 5.06	3.98
Weighted Average Exercise Price, Options Exercised	1.30	2.85	$ 1.45
Weighted Average Exercise Price, Options Outstanding, Ending Balance	$ 3.02	$ 4.45	$ 2.39	$ 1.61
Weighted Average Remaining Contractual Life, Outstanding and exercisable	2 months 9 days	11 months 5 days	2 years 22 days	1 year 4 months 28 days

Stock-Based Compensation (Det53

Stock-Based Compensation (Details 5)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Summary of outstanding warrants to purchase common stock
Shares	464,073
February 2011 Legal Advisor Warrant [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	Feb. 22, 2011
Exercise Price | $ / shares	$ 2.50
Shares	80,000
Expiration Date	Feb. 22, 2016
March 2011 Investor Warrants [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	Mar. 9, 2011
Exercise Price | $ / shares	$ 3.13
Shares	349,973
Expiration Date	Mar. 9, 2016
April 2011 Investor Warrants [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	Apr. 7, 2011
Exercise Price | $ / shares	$ 3.13
Shares	34,100
Expiration Date	Apr. 7, 2016

Stock Based Compensation (Detai

Stock Based Compensation (Details Textual) - USD ($)	Apr. 04, 2013	Dec. 31, 2011	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock-Based Compensation (Textual)
Share-based compensation expense			$ 1,075,000	$ 1,729,000	$ 2,656,000
Weighted average grant date fair value			$ 1.24	$ 3.14
Options granted to purchase of common stock to employee			90,000	10,000
Options granted to purchase of common stock to board members			515,000	395,200	145,000
Stock based compensation options granted to purchase of common stock to employee fair value			$ 800,000	$ 1,300,000	$ 748,000
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 next 24-months.
Estimated fair value of the warrants	$ 166,000
Number of Options Outstanding				1,709,400
Stock Options [Member]
Stock-Based Compensation (Textual)
Share-based compensation expense			$ 1,100,000	$ 1,700,000	$ 2,700,000
Weighted average grant date fair value			$ 4.63
Vesting period			1 year 7 months 6 days
Number of Options Outstanding			2,184,117	1,709,400	1,600,583	1,715,200
Number of Shares, Options Granted			605,000	405,200	145,000
Two thousand fifteen Plan [Member] | Stock Options [Member]
Stock-Based Compensation (Textual)
Number of Shares, Options Granted			605,000
Aggregate shares of common stock, shares			2,100,000
Warrant [Member]
Stock-Based Compensation (Textual)
Share-based compensation expense					$ 26,000
Vesting period		24 months	1 year 7 months 6 days
Common stock issuable upon exercise of warrants		20,000		10,053	1,384,719
Exercise price of warrants per share		$ 3.90
Estimated fair value of the warrants		$ 75,000
Number of Options Outstanding		5,405,606	464,073	3,335,073	828,573	4,704,636
Number of Shares, Options Granted				2,575,000

Commitments and Contingencies55

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2015USD ($)
Commitments and Contingencies [Abstract]
2,016	$ 741
2,017	646
2,018	93
Total	$ 1,480

Commitments and Contingencies56

Commitments and Contingencies (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies [Abstract]
2,016	$ 72
2,017	72
2,018	72
2,019	72
2,020	94
Total minimum payments required:	382
Less amount representing interest:	(42)
Present value of net minimum lease payments:	340
Less current portion	57	$ 61
Capital lease noncurrent portion	$ 283	$ 367

Commitments and Contingencies57

Commitments and Contingencies (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies [Abstract]
Equipment under capital lease	$ 428	$ 458
Less accumulated depreciation and amortization	(95)
Net book value	$ 332

Commitments and Contingencies58

Commitments and Contingencies (Details Textual)	Dec. 04, 2014USD ($)$ / shares	Dec. 06, 2012USD ($)$ / shares	Jan. 24, 2010USD ($)$ / shares	Apr. 30, 2014USD ($)	Dec. 31, 2015USD ($)ft²	Dec. 31, 2014USD ($)ft²	Dec. 31, 2013USD ($)
Commitments and Contingencies (Textual)
Non-recurring engineering development costs contributed to TI		$ 500,000	$ 500,000
Description of NRE cost contributed to TI		Under the terms of the NN1002 Agreement we will reimburse TI an NRE fee of $0.25 per unit for each of the first two million units sold.	Under the terms of the NN1001 Agreement, we will reimburse TI an NRE fee of $0.08 per unit for each of the first one million units sold and $0.05 for the next eight million units sold.
NRE cost contributed for each of first one million unit sold, Per unit | $ / shares			$ 0.08
NRE cost contributed for next eight million unit sold, Per unit | $ / shares			$ 0.05
NRE fee contributed for each of first two million unit sold, Per unit | $ / shares		$ 0.25
Non recurring expense included in product research and development					$ 20,000	$ 93,000
Annual lease payment					$ 160,000
Capital lease term				6 years
Capital lease payment description				Under the terms of the lease agreement we are obligated to purchase the equipment at the end of the original 6 year lease term for 10% of the original purchase price of the equipment.
Capital lease amortization expense				$ 16,000
Capital lease interest rate				4.00%
Area of leased space (in square feet) | ft²					6,508
Lease expiration date					Jul. 31, 2018	Jul. 31, 2015
Rent expense					$ 641,000	$ 633,000	$ 556,000
Neonode Technologies AB [Member]
Commitments and Contingencies (Textual)
Annual lease payment					$ 431,000
Area of leased space (in square feet) | ft²					7,007
Lease expiration date					Nov. 30, 2017	Nov. 30, 2017
Neonode Japan Inc [Member]
Commitments and Contingencies (Textual)
Annual lease payment						$ 28,000
Area of leased space (in square feet) | ft²						430
Lease expiration date						Oct. 31, 2016
Neonode Korea Ltd [Member]
Commitments and Contingencies (Textual)
Annual lease payment					$ 22,000
Lease expiration date					Feb. 13, 2017
Neonode Taiwan [Member]
Commitments and Contingencies (Textual)
Annual lease payment					$ 31,000
Pronode Technologies AB [Member]
Commitments and Contingencies (Textual)
Area of leased space (in square feet) | ft²					9,040
Lease expiration date					Dec. 9, 2017
Annual lease agreement					$ 95,000
Stmicroelectronics [Member]
Commitments and Contingencies (Textual)
Non-recurring engineering development costs contributed to TI	$ 885,000
Non recurring engineering costs description	● $235,000 at the feasibility review and contract signature (paid on January 20, 2015) ● $300,000 on completion of tape-out (paid on October 31, 2015) ● $300,000 on completion on product validation (not completed)
Non recurring engineering fee of first ten thousands units sold, Per unit | $ / shares	$ 5

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary of net revenues by geographic region
Net revenues	$ 2,963	$ 3,113	$ 2,776	$ 2,263	$ 1,735	$ 1,126	$ 865	$ 1,014	$ 1,009	$ 1,076	$ 1,084	$ 548	$ 11,115	$ 4,740	$ 3,717
Revenues percentage													100.00%	100.00%	100.00%
U.S. [Member]
Summary of net revenues by geographic region
Net revenues													$ 6,177	$ 2,833	$ 1,896
Revenues percentage													56.00%	60.00%	51.00%
Europe [Member]
Summary of net revenues by geographic region
Net revenues													$ 2,987	$ 228	$ 308
Revenues percentage													27.00%	5.00%	9.00%
Asia [Member]
Summary of net revenues by geographic region
Net revenues													$ 1,951	$ 1,679	$ 1,513
Revenues percentage													17.00%	35.00%	40.00%

Segment Information (Details Te

Segment Information (Details Textual)	12 Months Ended
	Dec. 31, 2015Segment
Segment Information (Textual)
Number of reportable segments	1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary of income (loss) before income taxes by geographically
Domestic	$ (7,783)	$ (13,993)	$ (12,877)
Foreign	41	(228)	(94)
Total	$ (7,742)	$ (14,221)	$ (12,971)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current
Federal
State	$ 2	$ 3	$ 2
Foreign	91	10	107
Change in deferred
Federal	(2,466)	(4,213)	(3,794)
Federal valuation allowance	2,466	4,213	3,794
State	(252)	(460)	129
State valuation allowance	252	460	(129)
Foreign	6	64	111
Foreign valuation allowance	(6)	(64)	(111)
Total current	$ 93	$ 13	$ 109

Income Taxes (Details 2)

Income Taxes (Details 2)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary of reconciliation of Effective income tax rate and statutory federal income tax rate
Amounts at statutory tax rates	34.00%	34.00%	34.00%
Foreign losses taxed at different rates		(1.00%)
Stock-based compensation	(1.00%)	(2.00%)	(3.00%)
Other	(1.00%)	(1.00%)	(1.00%)
Total	32.00%	30.00%	30.00%
Valuation allowance	(33.00%)	(31.00%)	(31.00%)
Effective tax rate	(1.00%)	(1.00%)	(1.00%)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Accruals	$ 1,109	$ 1,053
Stock compensation	1,352	1,210
Net operating losses	17,190	14,681
Basis difference in fixed assets	7	2
Total deferred tax assets	19,658	16,946
Valuation allowance	$ (19,658)	$ (16,946)
Total net deferred tax assets

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax (Textual)
Interest or penalties related to unrecognized tax benefits	$ 0	$ 0	$ 0
Accrued interest and penalties related to uncertain tax	0	0
Uncertain tax positions	$ 80,000
Description of income tax withholding	Payments related to the license agreement with Sony Corporation are net of 10% income tax withholding as required by the Japanese government under the Sweden and Japan international tax treaty.
Amount withheld to offset future tax income tax payable	$ 0	$ 0	$ 42,000
Open tax years	1999 through 2014
Federal [Member]
Income Tax (Textual)
Operating loss carryforwards	$ 48,600,000
Operating loss carryforwards, expiration date	Dec. 31, 2028
Deferred tax assets related to excess tax benefits for stock based compensation	$ 547,000
State [Member]
Income Tax (Textual)
Operating loss carryforwards	$ 19,800,000
Operating loss carryforwards, expiration date	Dec. 31, 2030
Deferred tax assets related to excess tax benefits for stock based compensation	$ 28,000
Foreign [Member]
Income Tax (Textual)
Operating loss carryforwards	$ 0

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Pension plans for Swedish employees [Member]
Employee Benefit Plans (Textual)
Defined benefit plan contribution, Amount	$ 306,000	$ 249,000	$ 184,000
Pension plans for Swedish employees [Member] | Minimum [Member]
Employee Benefit Plans (Textual)
Defined benefit plan contribution, Percentage	5.00%	5.00%	5.00%
Pension plans for Swedish employees [Member] | Maximum [Member]
Employee Benefit Plans (Textual)
Defined benefit plan contribution, Percentage	15.00%	15.00%	15.00%
U.S. Employee 401K Pension Plan [Member]
Employee Benefit Plans (Textual)
Defined benefit plan contribution, Amount	$ 89,000	$ 81,000	$ 66,000
Matching contributions by employer	6.00%	6.00%	6.00%
Pension Plans for Taiwan Employees [Member]
Employee Benefit Plans (Textual)
Defined benefit plan contribution, Amount	$ 10,000
Defined benefit plan contribution, Percentage	6.00%

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
BASIC AND DILUTED
Weighted average number of common shares outstanding													41,202	39,532	35,266
Net loss (including noncontrolling interests)	$ (2,588)	$ (1,368)	$ (1,792)	$ (2,072)	$ (3,107)	$ (3,245)	$ (3,874)	$ (4,008)	$ (3,047)	$ (3,343)	$ (3,120)	$ (3,570)	$ (7,820)	$ (14,234)	$ (13,080)
Net loss per shares basic and diluted	$ (0.06)	$ (0.03)	$ (0.04)	$ (0.05)	$ (0.08)	$ (0.08)	$ (0.10)	$ (0.11)	$ (0.08)	$ (0.09)	$ (0.09)	$ (0.11)	$ (0.19)	$ (0.36)	$ (0.37)

Net Loss Per Share (Details Tex

Net Loss Per Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Option [Member]
Net Loss Per Share (Textual)
Antidilutive securities excluded from computation of earnings per share	7,000	24,000	1,600,000
Warrant [Member]
Net Loss Per Share (Textual)
Antidilutive securities excluded from computation of earnings per share	13,000	300,000	800,000
Convertible Preferred Stock [Member]
Net Loss Per Share (Textual)
Antidilutive securities excluded from computation of earnings per share	11,000	11,000	11,000

Quarterly Financial Informati69

Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary of selected quarterly financial information
Net revenues	$ 2,963	$ 3,113	$ 2,776	$ 2,263	$ 1,735	$ 1,126	$ 865	$ 1,014	$ 1,009	$ 1,076	$ 1,084	$ 548	$ 11,115	$ 4,740	$ 3,717
Cost of revenues	1,796	909	737	338	469	422	452	166	199	765	662	16	3,780	1,509	1,642
Gross margin	1,167	2,204	2,039	1,925	1,266	704	413	848	810	311	422	532	7,335	3,231	2,075
Net loss attributable to Neonode Inc.	$ (2,588)	$ (1,368)	$ (1,792)	$ (2,072)	$ (3,107)	$ (3,245)	$ (3,874)	$ (4,008)	$ (3,047)	$ (3,343)	$ (3,120)	$ (3,570)	$ (7,820)	$ (14,234)	$ (13,080)
Net loss per basic and diluted common share	$ (0.06)	$ (0.03)	$ (0.04)	$ (0.05)	$ (0.08)	$ (0.08)	$ (0.10)	$ (0.11)	$ (0.08)	$ (0.09)	$ (0.09)	$ (0.11)	$ (0.19)	$ (0.36)	$ (0.37)

Valuation and Qualifying Acco70

Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	$ 167
Charged to Costs and Expenses		$ 167
Deductions
Balance at End of Year	$ 167	$ 167
Deferred tax asset valuation allowance [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	$ (16,946)	$ (12,335)	$ (8,302)
Charged to Costs and Expenses
Deductions	$ (2,712)	$ (4,611)	$ (4,033)
Balance at End of Year	$ (19,658)	$ (16,946)	$ (12,335)