Neonode (NEON) 10-Q 11 May 23 2023 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 05, 2023
Document Information Line Items
Entity Registrant Name	Neonode Inc.
Trading Symbol	NEON
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		15,359,481
Amendment Flag	false
Entity Central Index Key	0000087050
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-35526
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-1517641
Entity Address, Address Line One	Karlavägen 100
Entity Address, Postal Zip Code	115 26
Entity Address, City or Town	Stockholm
Entity Address, Country	SE
City Area Code	+46 (0)
Local Phone Number	8 667 17 17
Title of 12(b) Security	Common Stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash	$ 20,981	$ 14,816
Accounts receivable and unbilled revenues, net	1,941	1,448
Inventory	3,851	3,827
Prepaid expenses and other current assets	648	707
Total current assets	27,421	20,798
Property and equipment, net	284	282
Operating lease right-of-use assets, net	103	118
Total assets	27,808	21,198
Current liabilities:
Accounts payable	314	334
Accrued payroll and employee benefits	870	951
Accrued expenses	464	200
Contract liabilities	31	36
Current portion of finance lease obligations	73	95
Current portion of operating lease obligations	85	83
Total current liabilities	1,837	1,699
Finance lease obligations, net of current portion	41	46
Operating lease obligations, net of current portion	18	35
Total liabilities	1,896	1,780
Commitments and contingencies
Stockholders’ equity:
Common stock, 25,000,000 shares authorized, with par value of $0.001; 15,359,481 and 14,455,765 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	15	14
Additional paid-in capital	235,118	227,235
Accumulated other comprehensive loss	(305)	(340)
Accumulated deficit	(208,916)	(207,491)
Total stockholders’ equity	25,912	19,418
Total liabilities and stockholders’ equity	$ 27,808	$ 21,198

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
License fees	$ 1,148	$ 1,104
Products	102	147
Non-recurring engineering	3	67
Total revenues	1,253	1,318
Products	47	51
Non-recurring engineering		9
Total cost of revenues	47	60
Total gross margin	1,206	1,258
Research and development	802	1,023
Sales and marketing	592	616
General and administrative	1,384	1,010
Total operating expenses	2,778	2,649
Operating loss	(1,572)	(1,391)
Interest income (expense), net	158	(2)
Total other income (expense)	158	(2)
Loss before provision for income taxes	(1,414)	(1,393)
Provision for income taxes	11	44
Net loss including noncontrolling interests	(1,425)	(1,437)
Less: Net loss attributable to noncontrolling interests		57
Net loss attributable to Neonode Inc.	$ (1,425)	$ (1,380)
Basic and diluted loss per share (in Dollars per share)	$ (0.09)	$ (0.1)
Basic – weighted average number of common shares outstanding (in Shares)	15,209	13,576

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Diluted loss per share (in Dollars per share)	$ (0.10)	$ (0.10)
Diluted – weighted average number of common shares outstanding (in Shares)	15,209	13,576

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,425)	$ (1,437)
Other comprehensive income (loss):
Foreign currency translation adjustments	35	33
Other comprehensive loss	(1,390)	(1,404)
Less: Comprehensive loss attributable to noncontrolling interests		57
Other comprehensive loss attributable to Neonode Inc.	$ (1,390)	$ (1,347)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total Neonode Inc. Stockholders’ Equity	Noncontrolling Interests	Total
Balance at Dec. 31, 2021	$ 14	$ 226,880	$ (408)	$ (202,608)	$ 23,878	$ (4,041)	$ 19,837
Balance (in Shares) at Dec. 31, 2021	13,576
Stock-based compensation		39			39		39
Foreign currency translation adjustment			33		33		33
Net loss				(1,380)	(1,380)	(57)	(1,437)
Balance at Mar. 31, 2022	$ 14	226,919	(375)	(203,988)	22,570	(4,098)	18,472
Balance (in Shares) at Mar. 31, 2022	13,576
Balance at Dec. 31, 2022	$ 14	227,235	(340)	(207,491)	19,418		19,418
Balance (in Shares) at Dec. 31, 2022	14,456
Stock-based compensation		18			18		18
Issuance of shares for cash, net of offering costs	$ 1	7,865			7,866		7,866
Issuance of shares for cash, net of offering costs (in Shares)	903
Foreign currency translation adjustment			35		35		35
Net loss				(1,425)	(1,425)		(1,425)
Balance at Mar. 31, 2023	$ 15	$ 235,118	$ (305)	$ (208,916)	$ 25,912		$ 25,912
Balance (in Shares) at Mar. 31, 2023	15,359

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss (including noncontrolling interests)	$ (1,425)	$ (1,437)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	18	39
Depreciation and amortization	17	45
Amortization of operating lease right-of-use assets	16	114
Changes in operating assets and liabilities:
Accounts receivable and unbilled revenue, net	(491)	146
Inventory	(11)	(1,121)
Prepaid expenses and other current assets	66	98
Accounts payable, accrued payroll and employee benefits, and accrued expenses	133	22
Contract liabilities	(5)	(1)
Operating lease obligations	(16)	(184)
Net cash used in operating activities	(1,698)	(2,279)
Cash flows from investing activities:
Purchase of property and equipment		(5)
Net cash used in investing activities		(5)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of offering costs	7,866
Principal payments on finance lease obligations	(28)	(61)
Net cash provided by (used in) financing activities	7,838	(61)
Effect of exchange rate changes on cash	25	88
Net change in cash	6,165	(2,257)
Cash at beginning of period	14,816	17,383
Cash at end of period	20,981	15,126
Supplemental disclosure of cash flow information:
Cash paid for income taxes	11	44
Cash paid for interest	$ 2	$ 2

Interim Period Reporting

Interim Period Reporting	3 Months Ended
	Mar. 31, 2023
Interim Period Reporting [Abstract]
Interim Period Reporting	1. Interim Period Reporting The accompanying unaudited interim condensed consolidated financial statements include all adjustments consisting of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim period presented. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of results for a full fiscal year or any other period. The accompanying condensed consolidated financial statements for the three months ended March 31, 2023 and 2022 have been prepared by us, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally contained in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Operations Neonode Inc., which is collectively with its subsidiaries referred to as “Neonode” or the “Company” in this report, develops advanced optical sensing solutions for contactless touch, touch, gesture sensing, and object detection and machine perception solutions using advanced machine learning algorithms to detect and track persons and objects in video streams for cameras and other types of imagers. We market and sell our contactless touch, touch, and gesture sensing, and object detection products and solutions based on our zForce technology platform, and our scene analysis solutions based on our MultiSensing technology platform. We offer our solutions to customers in many different markets and segments including, but not limited to, office equipment, automotive, industrial automation, medical, military and avionics. In our operations, we have historically focused on three different business areas, human machine interface (“HMI”) Solutions, HMI Products and Remote Sensing Solutions. On May 4, 2021, we announced a new strategy and organizational update targeting an increased focus on the Company’s contactless touch business and on current market opportunities in North America (“AMER”), Asia-Pacific (“APAC”), and Europe, Middle East and Africa (“EMEA”). We thereby changed from a business area organization to a regional sales organization going forward. Revenues are, however, primarily monitored for each of our revenue streams consisting of license fees, product sales and non-recurring engineering fees. Liquidity We have incurred significant operating losses and negative cash flows from operations since our inception. The Company incurred net losses of approximately $1.4 million for each of the three months ended March 31, 2023 and 2022, and had an accumulated deficit of approximately $208.9 million and $207.5 million as of March 31, 2023 and December 31, 2022, respectively. In addition, operating activities used cash of approximately $1.7 million and $2.3 million for the three months ended March 31, 2023 and 2022, respectively. The condensed consolidated financial statements included in this report have been prepared on a going concern basis, which contemplates continuity of operations and the realization of assets and the repayment of liabilities in the ordinary course of business. Management evaluated the significance of the Company’s operating loss and determined that the Company’s current operating plan and sources of potential capital (including the Company’s at-the-market facility described below) would be sufficient to alleviate concerns about the Company’s ability to continue as a going concern. During the three months ended March 31, 2023, the Company sold an aggregate of 903,716 shares of its common stock under the at-the-market facility with aggregate net proceeds to the Company of $7,866,000, after payment of commissions to B. Riley Securities, the agent for the at-the-market facility, and other expenses of $244,000. In the future, we may require additional sources of capital to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek equity investments or debt arrangements. 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 to us on acceptable terms, or at all, we may be unable to adequately fund our business plans, which could have a negative effect on our business, results of operations and financial condition. If funds are available through the issuance of equity or debt securities, 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 on us that could impair our ability to engage in certain business transactions. We expect revenues will enable us to reduce our operating losses in coming years. In addition, we intend to continue to implement various measures to improve our operational efficiencies. No assurances can be given that management will be successful in meeting its revenue targets and reducing its operating loss.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting policies	2. Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements have been prepared in accordance with 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, until September 30, 2022. On October 1, 2022, the remaining 49% of Pronode Technologies AB was acquired from Propoint AB, located in Gothenburg, Sweden. All inter-company accounts and transactions have been eliminated in consolidation. Neonode consolidates entities in which it has a controlling financial interest. We consolidate subsidiaries in which we hold, directly or indirectly, more than 50% of the voting rights. The condensed consolidated balance sheets at March 31, 2023 and December 31, 2022 and the condensed consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the three months ended March 31, 2023 and 2022 include our accounts and those of our wholly-owned subsidiaries as well as Pronode Technologies AB. Estimates and Judgments The preparation of financial statements in conformity with U.S. GAAP requires making estimates and judgments that affect, at the date of the financial statements, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Actual results could differ from these estimates and judgments. Significant estimates and judgments include, but are not limited to: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, the standalone selling price of performance obligations, and transaction prices and assessing transfer of control; measuring variable consideration and other obligations such as product returns and refunds, and product warranties; provisions for uncollectible receivables; determining the net realizable value of inventory; recoverability of capitalized project costs and long-lived assets; for leases, determining whether a contract contains a lease, allocating consideration between lease and non-lease components, determining incremental borrowing rates, and identifying reassessment events, such as modifications; the valuation allowance related to our deferred tax assets; and the fair value of options issued as stock-based compensation. Cash and Cash Equivalents 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 or less to be cash equivalents. Concentration of Cash Balance Risks Cash balances are maintained at various banks in the United States, Japan, Taiwan and Sweden. For deposits held with financial institutions in the United States, the U.S. Federal Deposit Insurance Corporation provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 1,050,000 Krona per customer and covers deposits in all types of accounts. For bank accounts of the category held by Neonode, the Japanese government provides full insurance coverage. 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 Credit Losses Accounts receivable is stated at net realizable value. We estimate and record a provision for expected credit losses related to our financial instruments, including our trade receivables. We consider historical collection rates, the current financial status of our customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable, we believe that the carrying value, net of excepted losses, approximates fair value and therefore, relies more on historical and current analysis of such financial instruments, including our trade receivables. Further, we consider macroeconomic factors and the status of the technology industry to estimate if there are current expected credit losses within our trade receivables based on the trends and our expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default. The accounts receivable balance on our consolidated balance sheet as of March 31, 2023 was $1.9 million, net of approximately $30,000 of allowances. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected at March 31, 2023: Balance at January 1, 2023 $ 30,000 Change in expected credit losses - Write-offs, net of recoveries - Balance at March 31, 2023 $ 30,000 Inventory The Company’s inventory consists primarily of components that will be used in the manufacturing of our touch sensor modules (“TSMs”). We classify inventory for reporting purposes as raw materials, work-in-process, and finished goods. Inventory is stated at the lower of cost or net realizable value, using the first-in, first-out (“FIFO”) valuation method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Due to the low sell-through of our AirBar products, management has decided to fully reserve work-in-process for AirBar components, as well as AirBar related raw materials. Management has further decided to reserve for a portion of AirBar finished goods, depending on type of AirBar and in which location it is stored. The AirBar inventory reserve was $0.3 million as of March 31, 2023 and December 31, 2022, respectively. Raw materials, work-in-process, and finished goods are as follows (in thousands): March 31, December 31, 2023 2022 Raw materials $ 3,241 $ 3,177 Work-in-process 384 414 Finished goods 226 236 Ending inventory $ 3,851 $ 3,827 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 Depreciation of equipment purchased under a finance lease is depreciated 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. Right-of-Use Assets A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of operating leases for buildings. Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease. Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed. 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 March 31, 2023, 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 and 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). Foreign currency translation gains were $35,000 and $33,000 during the three months ended March 31, 2023 and 2022, respectively. Losses resulting from foreign currency transactions are included in general and administrative expenses in the accompanying condensed consolidated statements of operations and were $(5,000) during the three months ended March 31, 2023 compared to $(1,000) during the same period in 2022. Concentration of Credit and Business Risks Our customers are located in the United States, Europe and Asia. As of March 31, 2023, three of our customers represented approximately 64% of our consolidated accounts receivable and unbilled revenues. As of December 31, 2022, five of our customers represented approximately 83% of our consolidated accounts receivable and unbilled revenues. Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2023 are as follows: ● Hewlett-Packard Company – 31% ● Seiko Epson – 20% ● Alps Alpine – 15% ● LG – 14% Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2022 are as follows: ● Hewlett-Packard Company – 32% ● Seiko Epson – 17% ● LG – 15% ● Alps Alpine – 11% Revenue Recognition We recognize revenue when control of products is transferred to our customers, and when services are completed and accepted by our customers; the amount of revenue we recognize reflects the consideration we expect to receive for those products or services. Our contracts with customers may include combinations of products and services (e.g., a contract that includes products and related engineering services). We structure our contracts such that distinct performance obligations, such as product sales or license fees, and related engineering services, are clearly defined in each contract. License fees and sales of our AirBar and TSMs are on a per-unit basis. Therefore, we generally satisfy performance obligations as units are shipped to our customers. Non-recurring engineering service performance obligations are satisfied as work is performed and accepted by our customers. We recognize revenue net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. We treat all product shipping and handling charges (regardless of when they occur) as activities to fulfill the promise to transfer goods, therefore we treat all shipping and handling charges as expenses. License Fees We earn revenue from licensing our 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 to us following the distribution by our licensees of products incorporating the licensed technology. The license for our IP has standalone value and can be used by the licensee without maintenance and support. For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when the license is made available to the customer and the customer has a right to use that license. At the end of each reporting period, we record unbilled license fees using prior royalty revenue data by customer to make estimates of those royalties. Explicit return rights are not offered to customers. There have been no returns through March 31, 2023. Product Sales We earn revenue from sales of TSM hardware products to our Original Equipment Manufacturer (“OEM”), Original Design Manufacturer (“ODM”) and Tier 1 supplier customers, who embed our hardware into their products, and from sales of branded consumer products that incorporate our TSMs that are sold through distributors or directly to end users. These distributors are generally given business terms that allow them to return unsold inventory, receive credits for changes in selling prices, and participate in various cooperative marketing programs. Our sales agreements generally provide customers with limited rights of return and warranty provisions. The timing of revenue recognition related to AirBar modules depends upon how each sale is transacted - either point-of-sale or through distributors. We recognize revenue for AirBar modules sold point-of-sale (online sales and other direct sales to customers) when we provide the promised product to the customer. Because we generally use distributors to provide AirBar and TSMs to our customers, we must analyze the terms of our distributor agreements to determine when control passes from us to our distributors. For sales of AirBar and TSMs sold through distributors, we recognize revenues when our distributors obtain control over our products. Control passes to our distributors when we have a present right to payment for products sold to the distributors, the distributors have legal title to and physical possession of products purchased from us, and the distributors have significant risks and rewards of ownership of products purchased. Distributors participate in various cooperative marketing and other incentive programs, and we maintain estimated accruals and allowances for these programs. If actual credits received by distributors under these programs were to deviate significantly from our estimates, which are based on historical experience, our revenue could be adversely affected. Under U.S. GAAP, companies may make reasonable aggregations and approximations of returns data to accurately estimate returns. Our AirBar and TSM returns and warranty experience to date has enabled us to make reasonable returns estimates, which are supported by the fact that our product sales involve homogenous transactions. The reserve for future sales returns is recorded as a reduction of our accounts receivable and revenue and was $9,000 as of each of March 31, 2023 and December 31, 2022. The warranty reserve is recorded as an accrued expense and cost of sales and was $47,000 as of March 31, 2023 and $49,000 as of December 31, 2022. If the actual future returns were to deviate from the historical data on which the reserve had been established, our revenue could be adversely affected. Non-Recurring Engineering For technology license or TSM contracts that require modification or customization of the underlying technology to adapt the technology to customer use, we determine whether the technology license or TSM, and required engineering consulting services represent separate performance obligations. We perform our analysis on a contract-by-contract basis. If there are separate performance obligations, we determine the standalone selling price (“SSP”) of each separate performance obligation to properly recognize revenue as each performance obligation is satisfied. We provide engineering consulting services to our customers under a signed Statement of Work (“SOW”). Deliverables and payment terms are specified in each SOW. We generally charge an hourly rate for engineering services, and we recognize revenue as engineering services specified in contracts are completed and accepted by our customers. Any upfront payments we receive for future non-recurring engineering services are recorded as unearned revenue until that revenue is earned. We believe that recognizing non-recurring engineering services revenues as progress towards completion of engineering services and customer acceptance of those services occurs best reflects the economics of those transactions, because engineering services as tracked in our systems correspond directly with the value to our customers of our performance completed to date. Hours performed for each engineering project are tracked and reflect progress made on each project and are charged at a consistent hourly rate. Revenues from non-recurring engineering contracts that are short-term in nature are recorded when those services are complete and accepted by customers. Revenues from non-recurring engineering contracts with substantive defined deliverables for which payment terms in the SOW are commensurate with the efforts required to produce such deliverables are recognized as they are completed and accepted by customers. Estimated losses on all SOW projects are recognized in full as soon as they become evident. During the three months ended March 31, 2023 and 2022, no losses related to SOW projects were recorded. The following tables present the net revenues distribution by geographical area and market for the three months ended March 31, 2023 and 2022 (dollars in thousands): Three months ended Three months ended Amount Percentage Amount Percentage AMER Net revenues from consumer electronics $ 447 95 % $ 479 97 % Net revenues from distributors and other 24 5 % 14 3 % $ 471 100 % $ 493 100 % APAC Net revenues from automotive $ 357 56 % $ 356 55 % Net revenues from consumer electronics 258 41 % 235 37 % Net revenues from distributors and other 19 3 % 50 8 % $ 634 100 % $ 641 100 % EMEA Net revenues from automotive $ 89 60 % $ 88 48 % Net revenues from medical 34 23 % 64 35 % Net revenues from distributors and other 25 17 % 32 17 % $ 148 100 % $ 184 100 % Significant Judgments Our contracts with customers may include promises to transfer multiple products and services to a customer, particularly when one of our customers contracts with us for a product and related engineering services fees for customizing that product for our customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately may require significant judgment. Judgment may also be required to determine the SSP for each distinct performance obligation identified, although we generally structure our contracts such that performance obligations and pricing for each performance obligation are specifically addressed. We currently have no outstanding contracts with multiple performance obligations; however, we recently negotiated a contract that may include multiple performance obligations in the future. Judgment is also required to determine when control of products passes from us to our distributors, as well as the amounts of product that may be returned to us. Our products are sold with a right of return, and we may provide other credits or incentives to our customers, which could result in variability when determining the amount of revenue to recognize. At the end of each reporting period, we use product returns history and additional information that becomes available to estimate returns and credits. We do not recognize revenue if it is probable that a significant reversal of any incremental revenue would occur. Finally, judgment is required to determine the amount of unbilled license fees at the end of each reporting period. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when we have an unconditional right to receive future payments from customers, and we record unearned deferred revenue when we receive prepayments or upfront payments for goods or services from our customers. The following table presents accounts receivable and deferred revenues as of March 31, 2023 and December 31, 2022 (in thousands): March 31, December 31, Accounts receivable and unbilled revenue, net $ 1,941 $ 1,448 Contract liabilities (deferred revenues) $ 31 $ 36 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled revenues (contract assets), and customer advances and deposits or deferred revenue (contract liabilities) on the consolidated balance sheets. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets; contract assets are generally classified as current. The Company sometimes receives advances or deposits from its customers before revenue is recognized, which are reported as contract liabilities and are generally classified as current. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. We do not anticipate impairment of our contract assets related to license fee revenues, given the creditworthiness of our customers whose invoices comprise the balance in that asset account. We will continue to monitor the timeliness of receipts from those customers to assess whether the contract assets have been impaired. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Payment terms and conditions vary by the type of contract; however, payments generally occur 30-60 days after invoicing for license fees and sensor modules to our resellers and distributors. Where revenue recognition timing differs from invoice timing, we have determined that our contracts do not include a significant financing component. Our intent is to provide our customers with consistent invoicing terms for the convenience of our customers, not to receive financing from our customers. Costs to Obtain Contracts We record the incremental costs of obtaining a contract with a customer as a contract asset, if we expect the benefit of those costs to cover a period greater than one year. We currently have no incremental costs that must be capitalized. We expense as incurred costs of obtaining a contract when the amortization period of those costs would have been less than or equal to one year. Product Warranty The following table summarizes the activity related to the product warranty liability (in thousands): March 31, December 31, Balance at beginning of period $ 49 $ 36 Provisions for warranty issued (2 ) 13 Balance at end of period $ 47 $ 49 The Company accrues for warranty costs as part of its cost of sales of TSMs based on estimated costs. The Company’s products are generally covered by a warranty for a period of 12 months from the customer receipt of the product included as a component of accrued expenses on the condensed consolidated balance sheet. Contract Liabilities Contract liabilities (deferred revenues) consist primarily of prepayments for license fees, and other products or services that we have been paid in advance. We earn the revenue when we transfer control of the product or service. Deferred revenues may also include upfront payments for consulting services to be performed in the future, such as non-recurring engineering services. We defer license fees until we have met all accounting requirements for revenue recognition, which is when a license is made available to a customer and that customer has a right to use the license. Non-recurring engineering fee revenues are deferred until engineering services have been completed and accepted by our customers. The following table presents our deferred revenues by source (in thousands): March 31, December 31, Deferred revenues license fees $ 18 $ 20 Deferred revenues products 9 9 Deferred revenues non-recurring engineering 4 7 $ 31 $ 36 During the three months ended March 31, 2023, the Company recognized revenues of approximately $5,000 related to contract liabilities outstanding at the beginning of the year. Advertising Advertising costs are expensed as incurred. Advertising costs for the three months ended March 31, 2023 and 2022 amounted to approximately $54,000 and $46,000, respectively. Research and Development Research and development (“R&D”) costs are expensed as incurred. R&D costs consist primarily of personnel related costs in addition to external consultancy costs such as testing, certifying and measurements. 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. We account for equity instruments issued to non-employees at their estimated fair value. 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 We recognize any noncontrolling interest, also known as a minority interest, as a separate line item in stockholders’ equity in the consolidated financial statements. A noncontrolling interest represents the portion of equity ownership in a less-than-wholly owned subsidiary not attributable to us. Generally, any interest that holds less than 50% of the outstanding voting shares is deemed to be a noncontrolling interest; however, there are other factors, such as decision-making rights, that are considered as well. We include the amount of net income (loss) attributable to noncontrolling interests in consolidated net income (loss) on the face of the condensed consolidated statements of operations. The Company provides either in the condensed consolidated statement of stockholders’ equity, if presented, or in the notes to condensed 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 Company, 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; and (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 March 31, 2023 and December 31, 2022. In the event we were to determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase income in the period such determination was made. The provision for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period. We follow U.S. GAAP related accounting for uncertainty in income taxes, which provisions include a two-step approach to recognizing, de-recognizing and measuring uncertainty in income taxes. As a result, we did not recognize a liability for unrecognized tax benefits. As of March 31, 2023 and December 31, 2022, 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 three months ended March 31, 2023 and 2022. 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 the three months ended March 31, 2023 and 2022 exclude the potential common stock equivalents, as the effect would be anti-dilutive (see Note 8). Other Comprehensive Income (Loss) Our other comprehensive income (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 as accumulated other comprehensive income (loss) in the accompanying condensed consolidated balance sheets. 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 rates for the condensed consolidated statements of operations were as follows: Three months ended 2023 2022 Swedish Krona 10.46 9.34 Japanese Yen 132.34 116.23 South Korean Won 1,276.12 1,205.29 Taiwan Dollar 30.41 28.00 The exchange rates for the condensed consolidated balance sheets were as follows: As of March 31, December 31, 2023 2022 Swedish Krona 10.36 10.43 Japanese Yen 132.83 131.12 South Korean Won 1,304.60 1,261.91 Taiwan Dollar 30.49 30.66 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 are deemed to approximate fair value due to their short maturities. Recent Accounting Pronouncements In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326)-Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”), supplemented by subsequent accounting standards updates. The new standard requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13, as amended, is effective for fiscal years beginning after December 15, 2022, as we were a smaller reporting company as of November 15, 2019, the determination date. We adopted ASU 2016-13 on January 1, 2023. Based on the composition of our accounts receivable, and other financial assets, including current market conditions and historical credit loss activity, the adoption of this standard did not have a material impact on our consolidated financial statements or disclosures. Specifically, our estimate of expected credit losses as of March 31, 2023, using our expected credit loss evaluation process described above, resulted in no adjustments to the provision for credit losses and no cumulative-effect adjustment to accumulated deficit on the adoption date of the standard.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Stockholders’ Equity	3. Stockholders’ Equity At-the-Market Facility On May 10, 2021, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley Securities”) with respect to an “at the market” offering program (the “ATM Facility”), under which we may, from time to time, in our sole discretion, issue and sell through B. Riley Securities, acting as sales agent, up to $25 million of shares of our common stock. Pursuant to the Sale Agreement, we may sell the shares through B. Riley Securities by any method permitted that is deemed an “at the market” offering as defined in Rule 415 under the Securities Act of 1933, as amended. B. Riley Securities will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the shares from time to time, based upon instructions from us (including any price or size limits or other customary parameters or conditions we may impose). We will pay B. Riley Securities a commission of 3.0% of the gross sales price per share sold under the Sales Agreement. We are not obligated to sell any shares under the Sale Agreement. The offering of shares pursuant to the Sale Agreement will terminate upon the earlier to occur of (i) the issuance and sale, through B. Riley Securities, of all of the shares subject to the Sales Agreement and (ii) termination of the Sale Agreement in accordance with its terms. Common Stock As of March 31, 2023 and December 31, 2022, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 25,000,000 shares of common stock, par value $0.001 per share. On May 20, 2022, we issued 4,000 shares of our common stock to a director pursuant to the Neonode Inc. 2020 Stock Incentive Plan (the “2020 Plan”) (see Note 4). On September 15, 2022, we repurchased 10,252 shares of common stock from an employee who resigned during the two-year lock up period associated with such shares for $12,000, pursuant to the terms of the 2020 LTIP. During the year ended December 31, 2022, we sold an aggregate of 886,065 shares of common stock under the ATM Facility, resulting in net proceeds of approximately $4,686,000 after payment of commissions to B. Riley Securities and other expenses of $167,000. During the three months ended March 31, 2023, we sold an aggregate of 903,716 shares of our common stock under the ATM Facility with aggregate net proceeds to us of $7,866,000, after payment of commissions to B. Riley Securities and other expenses of $244,000. Preferred Stock As of March 31, 2023 and December 31, 2022, our Restated Certificate of Incorporation, as amended, authorized us to issue up to 1,000,000 shares of preferred stock, par value $0.001 per share. There were no transactions in our preferred stock during the three months ended March 31, 2023 and 2022. No shares of preferred stock were issued and outstanding as of March 31, 2023 and December 31, 2022. Warrants As of March 31, 2023 and December 31, 2022, the Company had no outstanding warrants to purchase common stock.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Stock-Based Compensation [Abstract]
Stock-Based Compensation	4. Stock-Based Compensation We have adopted equity incentive plans for which stock options and restricted stock awards are available for grants to employees, consultants and directors. Except for certain options granted to certain Swedish employees, all employee, consultant and director stock options granted under our stock option plans have an exercise price equal to the market value of the underlying common stock on the grant date. There are no vesting provisions tied to performance conditions for any options. Vesting for all outstanding option grants is based solely on continued service as an employee, consultant or director. All of our outstanding stock options and restricted stock awards are classified as equity instruments. Stock Options and Long-Term Incentive Plan During the year ended December 31, 2020, our stockholders approved the 2020 Plan which replaced our 2015 Stock Incentive Plan (the “2015 Plan”), which in turn replaced our Neonode Inc. 2006 Equity Incentive Plan (the “2006 Plan”). Although no new awards may be made under the 2006 Plan or 2015 Plan, the 2015 Plan is still operative for awards previously granted under such plan. There are no awards outstanding under the 2006 Plan. Under the 2020 Plan, 750,000 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 2020 Plan are set by our compensation committee at its discretion. In 2020 we established the 2020 long-term incentive program (the “2020 LTIP”) to provide eligible persons with the opportunity to acquire an equity interest, or otherwise increase their equity interest, in the Company as an incentive for them to remain in the service of the Company. Through the 2020 LTIP, eligible employees of Neonode may waive between 50% to 67% of future unearned bonuses that may be awarded to them under the Company’s annual bonus arrangement in exchange for the grant of shares of the Company’s common stock. On December 29, 2020, we issued 37,288 shares of common stock to key employees pursuant to the 2020 LTIP. The shares were immediately vested but subject to a two-year lock-up period after issuance. In the event the participant’s employment with Neonode is terminated by the participant during the two-year lock-up period, the Company will repurchase the shares at a price equal to 30% of the lower of market value at issuance and termination date. Neonode has reported and paid Swedish social charges of $75,000 for the issued shares but only 30% of the stock-based compensation (totaling $77,000) was recognized immediately in the consolidated statement of operations for the year ended December 31, 2020, with the remainder to be recognized ratably over the two-year lock-up period. On August 12, 2021, we issued 12,830 shares of common stock to a key employee pursuant to the 2020 LTIP. The shares were immediately vested but subject to a two-year lock-up period after issuance. In the event the participant’s employment with the Company is terminated by the participant during the two-year lock-up period, the Company will repurchase the shares at a price equal to 30% of the lower of market value at issuance and the termination date. The Company has reported and paid Swedish social charges of $21,000 for the issued shares but only 30% of the stock-based compensation (totaling $25,000) was recognized immediately in the consolidated statements of operations for the year ended December 31, 2021, with the remainder to be recognized ratably over the two-year lock-up period. On December 29, 2021, we issued 14,735 shares of common stock to key employees pursuant to the 2020 LTIP. The shares were immediately vested but subject to a two-year lock-up period after issuance. In the event the participant’s employment with Neonode is terminated by the participant during the two-year lock-up period, the Company will repurchase the shares at a price equal to 30% of the lower of market value at issuance and termination date. Neonode has reported and paid Swedish social charges of $46,000 for the issued shares but only 30% of the stock-based compensation (totaling $38,000) was recognized immediately in the consolidated statements of operations for the year ended December 31, 2021, with the remainder to be recognized ratably over the two-year lock-up period. On May 20, 2022, we issued 4,000 shares of common stock to a director pursuant to the 2020 Plan. The shares were immediately vested but subject to a two-year lock-up period after issuance. In the event the participant’s employment with the Company is terminated by the participant during the two-year lock-up period, the Company will repurchase the shares at a price equal to 30% of the lower of market value at issuance and the termination date. The Company has reported and paid Swedish social charges of $5,000 for the issued shares but only 30% of the stock-based compensation (totaling $5,000) was recognized immediately in the consolidated statements of operations for the year ended December 31, 2022, with the remainder to be recognized ratably over the two-year lock-up period. On September 15, 2022, we repurchased 10,252 shares of common stock from an employee who resigned during the two-year lock up period associated with such shares for $12,000, pursuant to the terms of the 2020 LTIP. For the three months ended March 31, 2023 and 2022, we recognized $18,000 and $39,000, respectively, of stock-based compensation for the amortization of the 2020 LTIP over the respective lock-up periods. A summary of the combined activity under all of our stock option plans is set forth below: Number Weighted Outstanding at January 1, 2023 2,500 $ 14.40 Expired - - Outstanding at March 31, 2023 2,500 $ 14.40 The aggregate intrinsic value of the 2,500 stock options that are outstanding, vested and expected to vest as of March 31, 2023 was $0. For the three months ended March 31, 2023 and 2022, we recorded no compensation expense related to the vesting of stock options. During the three months ended March 31, 2023, we did not grant any options to purchase shares of our common stock to employees or members of our board of directors. Stock options granted under the 2006, 2015 and 2020 Plans are exercisable over a maximum term of 10 years from the date of grant, vest in various installments over a one to four-year period and have exercise prices reflecting the market value of the shares of common stock on the date of grant.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies [Abstract]
Commitments and Contingencies	5. 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 because 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 any 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 March 31, 2023 and December 31, 2022. 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 regarding 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 March 31, 2023 and December 31, 2022. Patent Assignment On May 6, 2019, the Company assigned a portfolio of patents to Aequitas Technologies LLC. The assignment provides the Company the right to share the potential net proceeds generated from a licensing and monetization program. Under the terms of the assignment, net proceeds means gross proceeds less out of pocket expenses and legal fees. On June 8, 2020, Neonode Smartphone LLC, a subsidiary of Aequitas Technologies LLC filed complaints against Apple and Samsung in the Western District of Texas for infringing two patents. The case against Apple was subsequently transferred to the Northern District of California. Both matters are still ongoing. Non-Recurring Engineering Development Costs On April 25, 2013, we entered into an Analog Device Development Agreement with an effective date of December 6, 2012 (the “NN1002 Agreement”) with Texas Instruments (“TI”) pursuant to which TI agreed to integrate our intellectual property into an Application Specific Integrated Circuit (“ASIC”). Under the terms of the NN1002 Agreement, we agreed to pay TI $500,000 of non-recurring engineering costs at the rate of $0.25 per ASIC for each of the first 2,000,000 ASICs sold. As of March 31, 2023, we had made no payments to TI under the NN1002 Agreement.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2023
Segment Information [Abstract]
Segment Information	6. Segment Information We have one reportable segment, which is comprised of the touch technology licensing and products business. We report revenues from external customers based on the country where the customer is located. The following table presents net revenues by geographic area for the three months ended March 31, 2023 and 2022, respectively (dollars in thousands): Three months ended Three months ended Amount Percentage Amount Percentage United States $ 471 37 % $ 493 38 % Japan 449 36 % 387 29 % South Korea 172 14 % 203 15 % Germany 111 9 % 57 4 % Switzerland 34 3 % 64 5 % Other 16 1 % 114 9 % $ 1,253 100 % $ 1,318 100 % The following table presents our total assets by geographic region as of March 31, 2023 and December 31, 2022 (in thousands): March 31, December 31, United States $ 18,870 $ 15,630 Sweden 8,895 5,511 Asia 43 57 Total $ 27,808 $ 21,198

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	7. Leases We have operating leases for our corporate offices and our manufacturing facility, and finance leases for equipment. Our leases have remaining lease terms of two months to two years. One of our primary operating leases includes options to extend the lease for one to three years and the other primary lease includes an option to annually extend. These operating leases also include options to terminate the leases within one year. Future renewal options that are not likely to be executed as of the balance sheet date are excluded from right-of-use assets and related lease liabilities. Our operating leases represent building leases for our Stockholm corporate offices and our Kungsbacka manufacturing facility. Our Stockholm corporate office lease has a remaining lease term of under one year and both of our leases are automatically renewed at a cost increase of 2% on an annual basis, unless we provide written notice nine months prior to the respective expiration dates. We report operating lease right-of-use assets, as well as current and noncurrent operating lease obligations on our consolidated balance sheets for the right to use those buildings in our business. Our finance leases represent manufacturing equipment; we report the manufacturing equipment, as well as current and noncurrent finance lease obligations on our condensed consolidated balance sheets for our manufacturing equipment. Generally, interest rates are stated in our leases for equipment. When no interest rate is stated in a lease, however, we review the interest rates implicit in our recent finance leases to estimate our incremental borrowing rate. We determine the rate implicit in a lease by using the most recent finance lease rate, or other method we think most closely represents our incremental borrowing rate. The components of lease expense were as follows (in thousands): Three Three Operating lease cost (1) $ 127 $ 166 Finance lease cost: Amortization of leased assets $ 3 $ 30 Interest on lease liabilities 2 2 Total finance lease cost $ 5 $ 32 (1) Includes short-term lease costs of $108,000 and $44,000 for the three months ended March 31, 2023 and 2022, respectively. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Three Months Ended Cash paid for amounts included in leases: Operating cash flows from operating leases $ (16 ) (184 ) Operating cash flows from finance leases (2 ) (2 ) Financing cash flows from finance leases (28 ) (61 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases - - Supplemental balance sheet information related to leases was as follows (in thousands): March 31, December 31, Operating leases Operating lease right-of-use assets $ 103 $ 118 Current portion of operating lease obligations $ 85 $ 83 Operating lease liabilities, net of current portion 18 35 Total operating lease liabilities $ 103 $ 118 Finance leases Property and equipment, at cost $ 2,640 $ 2,622 Accumulated depreciation (2,421 ) (2,418 ) Property and equipment, net $ 219 $ 204 Current portion of finance lease obligations $ 73 $ 95 Finance lease liabilities, net of current portion 41 46 Total finance lease liabilities $ 114 $ 141 March 31, March 31, Weighted Average Remaining Lease Term Operating leases 1.5 years 1.5 years Finance leases 1.4 years 2.0 years Weighted Average Discount Rate: Operating leases (2) 5 % 5 % Finance leases 2 % 2 % (2) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. A summary of future minimum payments under non-cancellable operating lease commitments as of March 31, 2023 is as follows (in thousands): Year ending December 31, Total 2023 (remaining months) 54 2024 53 107 Less imputed interest (4 ) Total lease liabilities $ 103 Less current portion (85 ) $ 18 The following is a schedule of minimum future rentals on the non-cancellable finance leases as of March 31, 2023 (in thousands): Year ending December 31, Total 2023 (remaining months) 66 2024 33 2025 19 Total minimum payments required: 118 Less amount representing interest: (4 ) Present value of net minimum lease payments: 114 Less current portion (73 ) $ 41

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss per Share	8. Net Loss per Share Basic net loss per common share for the three months ended March 31, 2023 and 2022 was computed by dividing the net loss attributable to common shareholders of Neonode Inc. for the relevant period by the weighted average number of shares of common stock outstanding. Diluted loss per common share is computed by dividing net loss attributable to common shareholders of Neonode Inc. for the relevant period by the weighted average number of shares of common stock and common stock equivalents outstanding. There were no potentially dilutive common stock equivalents for the three months ended March 31, 2023 and 2022, respectively. Three months ended (in thousands, except per share amounts) 2023 2022 BASIC AND DILUTED Weighted average number of common shares outstanding 15,209 13,576 Net loss attributable to Neonode Inc. $ (1,425 ) $ (1,380 ) Net loss per share – basic and diluted $ (0.09 ) $ (0.10 )

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events No other subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes thereto other than as discussed elsewhere in the accompanying notes.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2023
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements have been prepared in accordance with 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, until September 30, 2022. On October 1, 2022, the remaining 49% of Pronode Technologies AB was acquired from Propoint AB, located in Gothenburg, Sweden. All inter-company accounts and transactions have been eliminated in consolidation. Neonode consolidates entities in which it has a controlling financial interest. We consolidate subsidiaries in which we hold, directly or indirectly, more than 50% of the voting rights. The condensed consolidated balance sheets at March 31, 2023 and December 31, 2022 and the condensed consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the three months ended March 31, 2023 and 2022 include our accounts and those of our wholly-owned subsidiaries as well as Pronode Technologies AB.
Estimates and Judgments	Estimates and Judgments The preparation of financial statements in conformity with U.S. GAAP requires making estimates and judgments that affect, at the date of the financial statements, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Actual results could differ from these estimates and judgments. Significant estimates and judgments include, but are not limited to: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, the standalone selling price of performance obligations, and transaction prices and assessing transfer of control; measuring variable consideration and other obligations such as product returns and refunds, and product warranties; provisions for uncollectible receivables; determining the net realizable value of inventory; recoverability of capitalized project costs and long-lived assets; for leases, determining whether a contract contains a lease, allocating consideration between lease and non-lease components, determining incremental borrowing rates, and identifying reassessment events, such as modifications; the valuation allowance related to our deferred tax assets; and the fair value of options issued as stock-based compensation.
Cash and Cash Equivalents	Cash and Cash Equivalents 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 or less to be cash equivalents.
Concentration of Cash Balance Risks	Concentration of Cash Balance Risks Cash balances are maintained at various banks in the United States, Japan, Taiwan and Sweden. For deposits held with financial institutions in the United States, the U.S. Federal Deposit Insurance Corporation provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 1,050,000 Krona per customer and covers deposits in all types of accounts. For bank accounts of the category held by Neonode, the Japanese government provides full insurance coverage. 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 Credit Losses Accounts receivable is stated at net realizable value. We estimate and record a provision for expected credit losses related to our financial instruments, including our trade receivables. We consider historical collection rates, the current financial status of our customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable, we believe that the carrying value, net of excepted losses, approximates fair value and therefore, relies more on historical and current analysis of such financial instruments, including our trade receivables. Further, we consider macroeconomic factors and the status of the technology industry to estimate if there are current expected credit losses within our trade receivables based on the trends and our expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default. The accounts receivable balance on our consolidated balance sheet as of March 31, 2023 was $1.9 million, net of approximately $30,000 of allowances. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected at March 31, 2023: Balance at January 1, 2023 $ 30,000 Change in expected credit losses - Write-offs, net of recoveries - Balance at March 31, 2023 $ 30,000
Inventory	Inventory The Company’s inventory consists primarily of components that will be used in the manufacturing of our touch sensor modules (“TSMs”). We classify inventory for reporting purposes as raw materials, work-in-process, and finished goods. Inventory is stated at the lower of cost or net realizable value, using the first-in, first-out (“FIFO”) valuation method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Due to the low sell-through of our AirBar products, management has decided to fully reserve work-in-process for AirBar components, as well as AirBar related raw materials. Management has further decided to reserve for a portion of AirBar finished goods, depending on type of AirBar and in which location it is stored. The AirBar inventory reserve was $0.3 million as of March 31, 2023 and December 31, 2022, respectively. Raw materials, work-in-process, and finished goods are as follows (in thousands): March 31, December 31, 2023 2022 Raw materials $ 3,241 $ 3,177 Work-in-process 384 414 Finished goods 226 236 Ending inventory $ 3,851 $ 3,827
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 Depreciation of equipment purchased under a finance lease is depreciated 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.
Right-of-Use Assets	Right-of-Use Assets A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of operating leases for buildings. Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease. Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed.
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 March 31, 2023, 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 and 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). Foreign currency translation gains were $35,000 and $33,000 during the three months ended March 31, 2023 and 2022, respectively. Losses resulting from foreign currency transactions are included in general and administrative expenses in the accompanying condensed consolidated statements of operations and were $(5,000) during the three months ended March 31, 2023 compared to $(1,000) during the same period in 2022.
Concentration of Credit and Business Risks	Concentration of Credit and Business Risks Our customers are located in the United States, Europe and Asia. As of March 31, 2023, three of our customers represented approximately 64% of our consolidated accounts receivable and unbilled revenues. As of December 31, 2022, five of our customers represented approximately 83% of our consolidated accounts receivable and unbilled revenues. Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2023 are as follows: ● Hewlett-Packard Company – 31% ● Seiko Epson – 20% ● Alps Alpine – 15% ● LG – 14% Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2022 are as follows: ● Hewlett-Packard Company – 32% ● Seiko Epson – 17% ● LG – 15% ● Alps Alpine – 11%
Revenue Recognition	Revenue Recognition We recognize revenue when control of products is transferred to our customers, and when services are completed and accepted by our customers; the amount of revenue we recognize reflects the consideration we expect to receive for those products or services. Our contracts with customers may include combinations of products and services (e.g., a contract that includes products and related engineering services). We structure our contracts such that distinct performance obligations, such as product sales or license fees, and related engineering services, are clearly defined in each contract. License fees and sales of our AirBar and TSMs are on a per-unit basis. Therefore, we generally satisfy performance obligations as units are shipped to our customers. Non-recurring engineering service performance obligations are satisfied as work is performed and accepted by our customers. We recognize revenue net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. We treat all product shipping and handling charges (regardless of when they occur) as activities to fulfill the promise to transfer goods, therefore we treat all shipping and handling charges as expenses. License Fees We earn revenue from licensing our 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 to us following the distribution by our licensees of products incorporating the licensed technology. The license for our IP has standalone value and can be used by the licensee without maintenance and support. For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when the license is made available to the customer and the customer has a right to use that license. At the end of each reporting period, we record unbilled license fees using prior royalty revenue data by customer to make estimates of those royalties. Explicit return rights are not offered to customers. There have been no returns through March 31, 2023. Product Sales We earn revenue from sales of TSM hardware products to our Original Equipment Manufacturer (“OEM”), Original Design Manufacturer (“ODM”) and Tier 1 supplier customers, who embed our hardware into their products, and from sales of branded consumer products that incorporate our TSMs that are sold through distributors or directly to end users. These distributors are generally given business terms that allow them to return unsold inventory, receive credits for changes in selling prices, and participate in various cooperative marketing programs. Our sales agreements generally provide customers with limited rights of return and warranty provisions. The timing of revenue recognition related to AirBar modules depends upon how each sale is transacted - either point-of-sale or through distributors. We recognize revenue for AirBar modules sold point-of-sale (online sales and other direct sales to customers) when we provide the promised product to the customer. Because we generally use distributors to provide AirBar and TSMs to our customers, we must analyze the terms of our distributor agreements to determine when control passes from us to our distributors. For sales of AirBar and TSMs sold through distributors, we recognize revenues when our distributors obtain control over our products. Control passes to our distributors when we have a present right to payment for products sold to the distributors, the distributors have legal title to and physical possession of products purchased from us, and the distributors have significant risks and rewards of ownership of products purchased. Distributors participate in various cooperative marketing and other incentive programs, and we maintain estimated accruals and allowances for these programs. If actual credits received by distributors under these programs were to deviate significantly from our estimates, which are based on historical experience, our revenue could be adversely affected. Under U.S. GAAP, companies may make reasonable aggregations and approximations of returns data to accurately estimate returns. Our AirBar and TSM returns and warranty experience to date has enabled us to make reasonable returns estimates, which are supported by the fact that our product sales involve homogenous transactions. The reserve for future sales returns is recorded as a reduction of our accounts receivable and revenue and was $9,000 as of each of March 31, 2023 and December 31, 2022. The warranty reserve is recorded as an accrued expense and cost of sales and was $47,000 as of March 31, 2023 and $49,000 as of December 31, 2022. If the actual future returns were to deviate from the historical data on which the reserve had been established, our revenue could be adversely affected. Non-Recurring Engineering For technology license or TSM contracts that require modification or customization of the underlying technology to adapt the technology to customer use, we determine whether the technology license or TSM, and required engineering consulting services represent separate performance obligations. We perform our analysis on a contract-by-contract basis. If there are separate performance obligations, we determine the standalone selling price (“SSP”) of each separate performance obligation to properly recognize revenue as each performance obligation is satisfied. We provide engineering consulting services to our customers under a signed Statement of Work (“SOW”). Deliverables and payment terms are specified in each SOW. We generally charge an hourly rate for engineering services, and we recognize revenue as engineering services specified in contracts are completed and accepted by our customers. Any upfront payments we receive for future non-recurring engineering services are recorded as unearned revenue until that revenue is earned. We believe that recognizing non-recurring engineering services revenues as progress towards completion of engineering services and customer acceptance of those services occurs best reflects the economics of those transactions, because engineering services as tracked in our systems correspond directly with the value to our customers of our performance completed to date. Hours performed for each engineering project are tracked and reflect progress made on each project and are charged at a consistent hourly rate. Revenues from non-recurring engineering contracts that are short-term in nature are recorded when those services are complete and accepted by customers. Revenues from non-recurring engineering contracts with substantive defined deliverables for which payment terms in the SOW are commensurate with the efforts required to produce such deliverables are recognized as they are completed and accepted by customers. Estimated losses on all SOW projects are recognized in full as soon as they become evident. During the three months ended March 31, 2023 and 2022, no losses related to SOW projects were recorded. The following tables present the net revenues distribution by geographical area and market for the three months ended March 31, 2023 and 2022 (dollars in thousands): Three months ended Three months ended Amount Percentage Amount Percentage AMER Net revenues from consumer electronics $ 447 95 % $ 479 97 % Net revenues from distributors and other 24 5 % 14 3 % $ 471 100 % $ 493 100 % APAC Net revenues from automotive $ 357 56 % $ 356 55 % Net revenues from consumer electronics 258 41 % 235 37 % Net revenues from distributors and other 19 3 % 50 8 % $ 634 100 % $ 641 100 % EMEA Net revenues from automotive $ 89 60 % $ 88 48 % Net revenues from medical 34 23 % 64 35 % Net revenues from distributors and other 25 17 % 32 17 % $ 148 100 % $ 184 100 %
Significant Judgments	Significant Judgments Our contracts with customers may include promises to transfer multiple products and services to a customer, particularly when one of our customers contracts with us for a product and related engineering services fees for customizing that product for our customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately may require significant judgment. Judgment may also be required to determine the SSP for each distinct performance obligation identified, although we generally structure our contracts such that performance obligations and pricing for each performance obligation are specifically addressed. We currently have no outstanding contracts with multiple performance obligations; however, we recently negotiated a contract that may include multiple performance obligations in the future. Judgment is also required to determine when control of products passes from us to our distributors, as well as the amounts of product that may be returned to us. Our products are sold with a right of return, and we may provide other credits or incentives to our customers, which could result in variability when determining the amount of revenue to recognize. At the end of each reporting period, we use product returns history and additional information that becomes available to estimate returns and credits. We do not recognize revenue if it is probable that a significant reversal of any incremental revenue would occur. Finally, judgment is required to determine the amount of unbilled license fees at the end of each reporting period.
Contract Balances	Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when we have an unconditional right to receive future payments from customers, and we record unearned deferred revenue when we receive prepayments or upfront payments for goods or services from our customers. The following table presents accounts receivable and deferred revenues as of March 31, 2023 and December 31, 2022 (in thousands): March 31, December 31, Accounts receivable and unbilled revenue, net $ 1,941 $ 1,448 Contract liabilities (deferred revenues) $ 31 $ 36 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled revenues (contract assets), and customer advances and deposits or deferred revenue (contract liabilities) on the consolidated balance sheets. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets; contract assets are generally classified as current. The Company sometimes receives advances or deposits from its customers before revenue is recognized, which are reported as contract liabilities and are generally classified as current. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. We do not anticipate impairment of our contract assets related to license fee revenues, given the creditworthiness of our customers whose invoices comprise the balance in that asset account. We will continue to monitor the timeliness of receipts from those customers to assess whether the contract assets have been impaired. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Payment terms and conditions vary by the type of contract; however, payments generally occur 30-60 days after invoicing for license fees and sensor modules to our resellers and distributors. Where revenue recognition timing differs from invoice timing, we have determined that our contracts do not include a significant financing component. Our intent is to provide our customers with consistent invoicing terms for the convenience of our customers, not to receive financing from our customers.
Costs to Obtain Contracts	Costs to Obtain Contracts We record the incremental costs of obtaining a contract with a customer as a contract asset, if we expect the benefit of those costs to cover a period greater than one year. We currently have no incremental costs that must be capitalized. We expense as incurred costs of obtaining a contract when the amortization period of those costs would have been less than or equal to one year.
Product Warranty	Product Warranty The following table summarizes the activity related to the product warranty liability (in thousands): March 31, December 31, Balance at beginning of period $ 49 $ 36 Provisions for warranty issued (2 ) 13 Balance at end of period $ 47 $ 49 The Company accrues for warranty costs as part of its cost of sales of TSMs based on estimated costs. The Company’s products are generally covered by a warranty for a period of 12 months from the customer receipt of the product included as a component of accrued expenses on the condensed consolidated balance sheet.
Contract Liabilities	Contract Liabilities Contract liabilities (deferred revenues) consist primarily of prepayments for license fees, and other products or services that we have been paid in advance. We earn the revenue when we transfer control of the product or service. Deferred revenues may also include upfront payments for consulting services to be performed in the future, such as non-recurring engineering services. We defer license fees until we have met all accounting requirements for revenue recognition, which is when a license is made available to a customer and that customer has a right to use the license. Non-recurring engineering fee revenues are deferred until engineering services have been completed and accepted by our customers. The following table presents our deferred revenues by source (in thousands): March 31, December 31, Deferred revenues license fees $ 18 $ 20 Deferred revenues products 9 9 Deferred revenues non-recurring engineering 4 7 $ 31 $ 36 During the three months ended March 31, 2023, the Company recognized revenues of approximately $5,000 related to contract liabilities outstanding at the beginning of the year.
Advertising	Advertising Advertising costs are expensed as incurred. Advertising costs for the three months ended March 31, 2023 and 2022 amounted to approximately $54,000 and $46,000, respectively.
Research and Development	Research and Development Research and development (“R&D”) costs are expensed as incurred. R&D costs consist primarily of personnel related costs in addition to external consultancy costs such as testing, certifying and measurements.
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. We account for equity instruments issued to non-employees at their estimated fair value. 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 We recognize any noncontrolling interest, also known as a minority interest, as a separate line item in stockholders’ equity in the consolidated financial statements. A noncontrolling interest represents the portion of equity ownership in a less-than-wholly owned subsidiary not attributable to us. Generally, any interest that holds less than 50% of the outstanding voting shares is deemed to be a noncontrolling interest; however, there are other factors, such as decision-making rights, that are considered as well. We include the amount of net income (loss) attributable to noncontrolling interests in consolidated net income (loss) on the face of the condensed consolidated statements of operations. The Company provides either in the condensed consolidated statement of stockholders’ equity, if presented, or in the notes to condensed 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 Company, 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; and (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 March 31, 2023 and December 31, 2022. In the event we were to determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase income in the period such determination was made. The provision for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period. We follow U.S. GAAP related accounting for uncertainty in income taxes, which provisions include a two-step approach to recognizing, de-recognizing and measuring uncertainty in income taxes. As a result, we did not recognize a liability for unrecognized tax benefits. As of March 31, 2023 and December 31, 2022, 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 three months ended March 31, 2023 and 2022. 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 the three months ended March 31, 2023 and 2022 exclude the potential common stock equivalents, as the effect would be anti-dilutive (see Note 8).
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss) Our other comprehensive income (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 as accumulated other comprehensive income (loss) in the accompanying condensed consolidated balance sheets.
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 rates for the condensed consolidated statements of operations were as follows: Three months ended 2023 2022 Swedish Krona 10.46 9.34 Japanese Yen 132.34 116.23 South Korean Won 1,276.12 1,205.29 Taiwan Dollar 30.41 28.00 The exchange rates for the condensed consolidated balance sheets were as follows: As of March 31, December 31, 2023 2022 Swedish Krona 10.36 10.43 Japanese Yen 132.83 131.12 South Korean Won 1,304.60 1,261.91 Taiwan Dollar 30.49 30.66
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 are deemed to approximate fair value due to their short maturities.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326)-Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”), supplemented by subsequent accounting standards updates. The new standard requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13, as amended, is effective for fiscal years beginning after December 15, 2022, as we were a smaller reporting company as of November 15, 2019, the determination date. We adopted ASU 2016-13 on January 1, 2023. Based on the composition of our accounts receivable, and other financial assets, including current market conditions and historical credit loss activity, the adoption of this standard did not have a material impact on our consolidated financial statements or disclosures. Specifically, our estimate of expected credit losses as of March 31, 2023, using our expected credit loss evaluation process described above, resulted in no adjustments to the provision for credit losses and no cumulative-effect adjustment to accumulated deficit on the adoption date of the standard.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of accounts receivable	Balance at January 1, 2023 $ 30,000 Change in expected credit losses - Write-offs, net of recoveries - Balance at March 31, 2023 $ 30,000
Schedule of inventory	March 31, December 31, 2023 2022 Raw materials $ 3,241 $ 3,177 Work-in-process 384 414 Finished goods 226 236 Ending inventory $ 3,851 $ 3,827
Schedule of straight-line method based upon estimated useful lives	Computer equipment 3 years Furniture and fixtures 5 years Equipment 7 years
Schedule of disaggregated revenues	Three months ended Three months ended Amount Percentage Amount Percentage AMER Net revenues from consumer electronics $ 447 95 % $ 479 97 % Net revenues from distributors and other 24 5 % 14 3 % $ 471 100 % $ 493 100 % APAC Net revenues from automotive $ 357 56 % $ 356 55 % Net revenues from consumer electronics 258 41 % 235 37 % Net revenues from distributors and other 19 3 % 50 8 % $ 634 100 % $ 641 100 % EMEA Net revenues from automotive $ 89 60 % $ 88 48 % Net revenues from medical 34 23 % 64 35 % Net revenues from distributors and other 25 17 % 32 17 % $ 148 100 % $ 184 100 %
Schedule of accounts receivable and deferred revenues	March 31, December 31, Accounts receivable and unbilled revenue, net $ 1,941 $ 1,448 Contract liabilities (deferred revenues) $ 31 $ 36
Schedule of activity related to the product warranty liability	March 31, December 31, Balance at beginning of period $ 49 $ 36 Provisions for warranty issued (2 ) 13 Balance at end of period $ 47 $ 49
Schedule of deferred revenues	March 31, December 31, Deferred revenues license fees $ 18 $ 20 Deferred revenues products 9 9 Deferred revenues non-recurring engineering 4 7 $ 31 $ 36
Schedule of weighted-average exchange rates for the consolidated statements of operations	Three months ended 2023 2022 Swedish Krona 10.46 9.34 Japanese Yen 132.34 116.23 South Korean Won 1,276.12 1,205.29 Taiwan Dollar 30.41 28.00
Schedule of exchange rates for the consolidated balance sheets	As of March 31, December 31, 2023 2022 Swedish Krona 10.36 10.43 Japanese Yen 132.83 131.12 South Korean Won 1,304.60 1,261.91 Taiwan Dollar 30.49 30.66

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Stock-Based Compensation [Abstract]
Schedule of stock option plans	Number Weighted Outstanding at January 1, 2023 2,500 $ 14.40 Expired - - Outstanding at March 31, 2023 2,500 $ 14.40

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Information [Abstract]
Schedule of net revenues by geographic area	Three months ended Three months ended Amount Percentage Amount Percentage United States $ 471 37 % $ 493 38 % Japan 449 36 % 387 29 % South Korea 172 14 % 203 15 % Germany 111 9 % 57 4 % Switzerland 34 3 % 64 5 % Other 16 1 % 114 9 % $ 1,253 100 % $ 1,318 100 %
Schedule of total assets by geographic region	March 31, December 31, United States $ 18,870 $ 15,630 Sweden 8,895 5,511 Asia 43 57 Total $ 27,808 $ 21,198

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Schedule of Components of Lease Expense [Abstract]
Schedule of components of lease expense	Three Three Operating lease cost (1) $ 127 $ 166 Finance lease cost: Amortization of leased assets $ 3 $ 30 Interest on lease liabilities 2 2 Total finance lease cost $ 5 $ 32 (1) Includes short-term lease costs of $108,000 and $44,000 for the three months ended March 31, 2023 and 2022, respectively.
Schedule of supplemental cash flow information related to leases	Three Months Three Months Ended Cash paid for amounts included in leases: Operating cash flows from operating leases $ (16 ) (184 ) Operating cash flows from finance leases (2 ) (2 ) Financing cash flows from finance leases (28 ) (61 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases - -
Schedule of supplemental balance sheet information	March 31, December 31, Operating leases Operating lease right-of-use assets $ 103 $ 118 Current portion of operating lease obligations $ 85 $ 83 Operating lease liabilities, net of current portion 18 35 Total operating lease liabilities $ 103 $ 118 Finance leases Property and equipment, at cost $ 2,640 $ 2,622 Accumulated depreciation (2,421 ) (2,418 ) Property and equipment, net $ 219 $ 204 Current portion of finance lease obligations $ 73 $ 95 Finance lease liabilities, net of current portion 41 46 Total finance lease liabilities $ 114 $ 141 March 31, March 31, Weighted Average Remaining Lease Term Operating leases 1.5 years 1.5 years Finance leases 1.4 years 2.0 years Weighted Average Discount Rate: Operating leases (2) 5 % 5 % Finance leases 2 % 2 % (2) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.
Schedule of future minimum payments under non-cancellable operating lease commitments	Year ending December 31, Total 2023 (remaining months) 54 2024 53 107 Less imputed interest (4 ) Total lease liabilities $ 103 Less current portion (85 ) $ 18
Schedule of minimum future rentals on the non-cancellable finance leases	Year ending December 31, Total 2023 (remaining months) 66 2024 33 2025 19 Total minimum payments required: 118 Less amount representing interest: (4 ) Present value of net minimum lease payments: 114 Less current portion (73 ) $ 41

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of potentially dilutive common stock	Three months ended (in thousands, except per share amounts) 2023 2022 BASIC AND DILUTED Weighted average number of common shares outstanding 15,209 13,576 Net loss attributable to Neonode Inc. $ (1,425 ) $ (1,380 ) Net loss per share – basic and diluted $ (0.09 ) $ (0.10 )

Interim Period Reporting (Detai

Interim Period Reporting (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Summary of Significant Accounting Policies [Abstract]
Net losses		$ 1,400,000
Accumulated deficit	$ 208,900,000		$ 207,500,000
Cash used in operating activities	$ 1,700,000	$ 2,300,000
Aggregate shares of our common stock (in Shares)	903,716
Aggregate net proceeds	$ 7,866,000
Other expenses	$ 244,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)		3 Months Ended		12 Months Ended
	Oct. 01, 2022	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Summary of Significant Accounting Policies (Details) [Line Items]
Voting rights percentage		50%
Insurance coverage, description		For deposits held with financial institutions in the United States, the U.S. Federal Deposit Insurance Corporation provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 1,050,000 Krona per customer and covers deposits in all types of accounts. For bank accounts of the category held by Neonode, the Japanese government provides full insurance coverage. 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.
Foreign currency translation gains (losses) (in Dollars)		$ 35,000	$ 33,000
Number of customers		3		5
Accounts receivable percentage		64%		83%
Revenues percentage		10%	10%
Reduction of our accounts receivable and revenue (in Dollars)		$ 9,000		$ 9,000
Accrued expense and cost (in Dollars)		47,000		49,000
Company recognized revenues (in Dollars)		5,000
Advertising costs (in Dollars)		$ 54,000	$ 46,000
Outstanding voting shares percentage		50%
Neonode Technologies AB [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Majority owned by pronode technologies AB		51%
Remaining Percentage of pronode technologies AB	49%
AirBar Sales [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Inventory reserve amount (in Dollars)		$ 300,000		$ 300,000
Hewlett Packard Company [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Revenues percentage		31%	32%
Seiko Epson [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Revenues percentage		20%	17%
Alps Alpine [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Revenues percentage		11%	15%
LG [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Revenues percentage		14%	15%
Accounts Receivable [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Accounts receivable (in Dollars)		$ 1,900,000
Allowance for doubtful accounts (in Dollars)		30,000
Foreign Currency Gain (Loss) [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
General and administrative expenses (in Dollars)		$ (5,000)	$ (1,000)

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Schedule Of Accounts Receivable Abstract
Balance	$ 30,000
Change in expected credit losses
Write-offs, net of recoveries
Balance	$ 30,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details) - Schedule of inventory - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of inventory [Abstract]
Raw materials	$ 3,241	$ 3,177
Work-in-process	384	414
Finished goods	226	236
Total inventory	$ 3,851	$ 3,827

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details) - Schedule of straight-line method based upon estimated useful lives	Mar. 31, 2023
Computer equipment [Member]
Summary of Significant Accounting Policies (Details) - Schedule of straight-line method based upon estimated useful lives [Line Items]
Estimated useful lives	3 years
Furniture and fixtures [Member]
Summary of Significant Accounting Policies (Details) - Schedule of straight-line method based upon estimated useful lives [Line Items]
Estimated useful lives	5 years
Equipment [Member]
Summary of Significant Accounting Policies (Details) - Schedule of straight-line method based upon estimated useful lives [Line Items]
Estimated useful lives	7 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details) - Schedule of disaggregated revenues - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AMER [Member]
AMER
Net revenues	$ 471	$ 493
Percentage of net revenues	100%	100%
APAC [Member]
AMER
Net revenues	$ 634	$ 641
Percentage of net revenues	100%	100%
EMEA [Member]
AMER
Net revenues	$ 148	$ 184
Percentage of net revenues	100%	100%
Consumer Electronics [Member] | AMER [Member]
AMER
Net revenues	$ 447	$ 479
Percentage of net revenues	95%	97%
Consumer Electronics [Member] | APAC [Member]
AMER
Net revenues	$ 258	$ 235
Percentage of net revenues	41%	37%
Distributors and Other [Member] | AMER [Member]
AMER
Net revenues	$ 24	$ 14
Percentage of net revenues	5%	3%
Distributors and Other [Member] | APAC [Member]
AMER
Net revenues	$ 19	$ 50
Percentage of net revenues	3%	8%
Distributors and Other [Member] | EMEA [Member]
AMER
Net revenues	$ 25	$ 32
Percentage of net revenues	17%	17%
Automotive [Member] | APAC [Member]
AMER
Net revenues	$ 357	$ 356
Percentage of net revenues	56%	55%
Automotive [Member] | EMEA [Member]
AMER
Net revenues	$ 89	$ 88
Percentage of net revenues	60%	48%
Medical [Member] | EMEA [Member]
AMER
Net revenues	$ 34	$ 64
Percentage of net revenues	23%	35%

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable and deferred revenues - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of accounts receivable and deferred revenues [Abstract]
Accounts receivable and unbilled revenue, net	$ 1,941	$ 1,448
Contract liabilities (deferred revenues)	$ 31	$ 36

Summary of Significant Accoun_9

Summary of Significant Accounting Policies (Details) - Schedule of activity related to the product warranty liability - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Schedule of activity related to the product warranty liability [Abstract]
Balance at beginning of period	$ 49	$ 36
Provisions for warranty issued	(2)	13
Balance at end of period	$ 47	$ 49

Summary of Significant Accou_10

Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues [Line Items]
Deferred revenues	$ 31	$ 36
Deferred revenues license fees [Member]
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues [Line Items]
Deferred revenues	18	20
Deferred revenues products [Member]
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues [Line Items]
Deferred revenues	9	9
Deferred revenues non-recurring engineering [Member]
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenues [Line Items]
Deferred revenues	$ 4	$ 7

Summary of Significant Accou_11

Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Swedish Krona [Member]
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations [Line Items]
Weighted-average exchange rate for statements of operations	10.46	9.34
Japanese Yen [Member]
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations [Line Items]
Weighted-average exchange rate for statements of operations	132.34	116.23
South Korean Won [Member]
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations [Line Items]
Weighted-average exchange rate for statements of operations	1,276.12	1,205.29
Taiwan Dollar [Member]
Summary of Significant Accounting Policies (Details) - Schedule of weighted-average exchange rates for the consolidated statements of operations [Line Items]
Weighted-average exchange rate for statements of operations	30.41	28

Summary of Significant Accou_12

Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets	Mar. 31, 2023	Dec. 31, 2022
Swedish Krona [Member]
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets [Line Items]
Exchange rate	10.36	10.43
Japanese Yen [Member]
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets [Line Items]
Exchange rate	132.83	131.12
South Korean Won [Member]
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets [Line Items]
Exchange rate	1,304.6	1,261.91
Taiwan Dollar [Member]
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates for the consolidated balance sheets [Line Items]
Exchange rate	30.49	30.66

Stockholders_ Equity (Details)

Stockholders’ Equity (Details) - USD ($)		3 Months Ended	12 Months Ended
	May 10, 2021	Mar. 31, 2023	Dec. 31, 2022	Sep. 15, 2022	May 20, 2022	Dec. 31, 2021
Stockholders’ Equity (Details) [Line Items]
Number of shares		2,000,000
Gross sales price percentage		3%
Common stock authorized		25,000,000	25,000,000
Common stock, par value per share (in Dollars per share)		$ 0.001				$ 0.001
Shares issued					4,000
Repurchased shares				10,252
Employee resigned shares (in Dollars)				$ 12,000
Preferred stock shares authorized		1,000,000	1,000,000
Preferred stock, par value per share (in Dollars per share)		$ 0.001	$ 0.001
Common Stock [Member]
Stockholders’ Equity (Details) [Line Items]
Number of shares	25,000,000
Aggregate shares		903,716	886,065
Net proceeds (in Dollars)		$ 7,866,000	$ 4,686,000
Other expenses (in Dollars)		$ 244,000	$ 167,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)		1 Months Ended				3 Months Ended		12 Months Ended
	Aug. 12, 2021	Sep. 15, 2022	May 20, 2022	Dec. 29, 2021	Dec. 29, 2020	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock-Based Compensation (Details) [Line Items]
Common stock shares issued (in Shares)	12,830			14,735	37,288
Market value, percentage	30%		30%	30%	30%
Paid swedish social charges								$ 5,000	$ 46,000	$ 75,000
Percentage of shares issued								30%	30%	30%
Stock-based compensation								$ 5,000	$ 38,000	$ 77,000
Repurchased common stock from employee shares (in Shares)		10,252
Repurchased common stock from employee value		$ 12,000
Stock-based compensation amortization						$ 18,000	$ 39,000
Stock options outstanding (in Shares)						2,500
Stock options vested						$ 0
Term of stock options, description						Stock options granted under the 2006, 2015 and 2020 Plans are exercisable over a maximum term of 10 years from the date of grant, vest in various installments over a one to four-year period and have exercise prices reflecting the market value of the shares of common stock on the date of grant.
Minimum [Member]
Stock-Based Compensation (Details) [Line Items]
Future unearned bonus, percentage						50%
Maximum [Member]
Stock-Based Compensation (Details) [Line Items]
Future unearned bonus, percentage						67%
Employees [Member]
Stock-Based Compensation (Details) [Line Items]
Paid swedish social charges									$ 21,000
Percentage of shares issued									30%
Stock-based compensation									$ 25,000
Two Thousand Twenty Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Common stock shares issued (in Shares)			4,000							750,000

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - Schedule of stock option plans	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Schedule of stock option plans [Abstract]
Number of Options Outstanding, Beginning Balance | shares	2,500
Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 14.4
Number of Options Outstanding, Expired | shares
Weighted Average Exercise Price, Expired | $ / shares
Number of Options Outstanding, Ending Balance | shares	2,500
Weighted Average Exercise Price, Ending Balance | $ / shares	$ 14.4

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Commitments and Contingencies Disclosure [Abstract]
Non-recurring engineering development Costs | $	$ 500,000
Non-recurring engineering per share | $ / shares	$ 0.25
Non-recurring sale share | shares	2,000,000

Segment Information (Details)

Segment Information (Details)	3 Months Ended
	Mar. 31, 2023
Segment Information [Abstract]
Number of reportable segment	1

Segment Information (Details) -

Segment Information (Details) - Schedule of net revenues by geographic area - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue, Major Customer [Line Items]
Total revenues	$ 1,253	$ 1,318
Revenues percentage	100%	100%
United States [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 471	$ 493
Revenues percentage	37%	38%
Japan [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 449	$ 387
Revenues percentage	36%	29%
South Korea [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 172	$ 203
Revenues percentage	14%	15%
France [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 111	$ 57
Revenues percentage	9%	4%
China [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 34	$ 64
Revenues percentage	3%	5%
Other [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 16	$ 114
Revenues percentage	1%	9%

Segment Information (Details)_2

Segment Information (Details) - Schedule of total assets by geographic region - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Segment Information (Details) - Schedule of total assets by geographic region [Line Items]
Total	$ 27,808	$ 21,198
United States [Member]
Segment Information (Details) - Schedule of total assets by geographic region [Line Items]
Total	18,870	15,630
Sweden [Member]
Segment Information (Details) - Schedule of total assets by geographic region [Line Items]
Total	8,895	5,511
Asia [Member]
Segment Information (Details) - Schedule of total assets by geographic region [Line Items]
Total	$ 43	$ 57

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Lease cost increase percentage	2%
Short term lease costs	$ 44,000	$ 108,000

Leases (Details) - Schedule of

Leases (Details) - Schedule of components of lease expense - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Schedule of components of lease expense (Abstract)
Operating lease cost	[1]	$ 127	$ 166
Finance lease cost:
Amortization of leased assets		3	30
Interest on lease liabilities		2	2
Total finance lease cost		$ 5	$ 32
[1] Includes short-term lease costs of $108,000 and $44,000 for the three months ended March 31, 2023 and 2022, respectively.

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of supplemental cash flow information related to leases - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$ (16)	$ (184)
Operating cash flows from finance leases	(2)	(2)
Financing cash flows from finance leases	(28)	(61)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases

Leases (Details) - Schedule o_3

Leases (Details) - Schedule of supplemental balance sheet information - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Schedule of supplemental balance sheet information (Abstract)
Operating lease right-of-use assets		$ 103	$ 118
Current portion of operating lease obligations		85	83
Operating lease liabilities, net of current portion		18	35
Total operating lease liabilities		103	118
Property and equipment, at cost		2,640	2,622
Accumulated depreciation		(2,421)	(2,418)
Property and equipment, net		219	204
Current portion of finance lease obligations		73	95
Finance lease liabilities, net of current portion		41	46
Total finance lease liabilities		$ 114	$ 141
Operating leases		1 year 6 months		1 year 6 months
Finance leases		1 year 4 months 24 days		2 years
Operating leases	[1]	5%		5%
Finance leases		2%		2%
[1]Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019

Leases (Details) - Schedule o_4

Leases (Details) - Schedule of future minimum payments under non-cancellable operating lease commitments $ in Thousands	Mar. 31, 2023 USD ($)
Schedule of future minimum payments under non cancellable operating lease commitments (Abstract)
2023 (remaining months)	$ 54
2024	53
Total	107
Less imputed interest	(4)
Total lease liabilities	103
Less current portion	(85)
Total	$ 18

Leases (Details) - Schedule o_5

Leases (Details) - Schedule of minimum future rentals on the non-cancellable finance leases - Financial Lease [Member] $ in Thousands	Mar. 31, 2023 USD ($)
Leases (Details) - Schedule of minimum future rentals on the non-cancellable finance leases [Line Items]
2023 (remaining months)	$ 66
2024	33
2025	19
Total minimum payments required:	118
Less amount representing interest:	(4)
Present value of net minimum lease payments:	114
Less current portion	(73)
Total	$ 41

Net Loss Per Share (Details) -

Net Loss Per Share (Details) - Schedule of potentially dilutive common stock - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
BASIC AND DILUTED
Weighted average number of common shares outstanding	15,209	13,576
Net loss attributable to Neonode Inc.	$ (1,425)	$ (1,380)
Net loss per share - basic and diluted	$ (0.09)	$ (0.1)