10.

Segment Information

 

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

 

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

 

  

Years ended December 31,

 
  

2025

  

2024

 

Revenues

 $2,062  $3,108 
         

Costs and expenses(a):

        

Cost of revenues

  26   116 

Product R&D

  195   151 

General and administrative, including rent

  1,138   1,297 

Payroll and related

  6,736   6,332 

Professional fees and IP

  1,651   1,351 

Marketing and travel

  429   483 

Total costs and expenses

  10,175   9,730 

Other segment items(b)

  15,484   75 

Other income, net

  657   687 

Income (loss) before provision (benefit) for income taxes

  8,028   (5,860)

Provision (benefit) for income taxes

  (9)  15 

Income (loss) from continuing operations

 $8,037  $(5,875)

 

(a)

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

(b)

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

 

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

 

  December 31, 
  

2025

  

2024

 

United States

 $72  $- 

Sweden

  528   696 

Total

 $600  $696 

 

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

 

  

Years ended December 31,

 
  

2025

  

2024

 
  

Amount

  

Percentage

  

Amount

  

Percentage

 

Japan

 $1,276   62.0% $1,731   55.8%

Sweden

  300   14.5%  365   11.7%

Germany

  42   2.0%  116   3.7%

China

  16   0.8%  97   3.1%

South Korea

  1   -%  31   1.0%

Other

  2   0.1%  5   0.2%
  $1,637   79.4% $2,345   75.5%

United States

  425   20.6%  763   24.5%

Total

 $2,062   100.0% $3,108   100.0%

 

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Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Mar 21, 2025
2023Feb 28, 2024
2022Mar 9, 2023
2021Mar 10, 2022
2020Mar 10, 2021
2019Mar 11, 2020
2018Mar 7, 2019
2017Mar 8, 2018
2016Mar 15, 2017
2015Mar 11, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.