Neonode Inc. Segments Disclosure
| 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:
| Years ended December 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Revenues | $ | 3,108 | $ | 3,829 | ||||
| Costs and expenses(a) | ||||||||
| Cost of revenues | 116 | 12 | ||||||
| Product R&D | 151 | 116 | ||||||
| General and administrative, including rent | 1,297 | 1,480 | ||||||
| Payroll and related | 6,332 | 6,330 | ||||||
| Professional fees and IP | 1,351 | 1,117 | ||||||
| Marketing and travel | 483 | 412 | ||||||
| Total costs and expenses | 9,730 | 9,467 | ||||||
| Other segment items(b) | 75 | (99 | ) | |||||
| Other income, net | 687 | 736 | ||||||
| Loss before provision for income taxes | (5,860 | ) | (5,001 | ) | ||||
| Provision for income taxes | 15 | 115 | ||||||
| Loss from continuing operations | $ | (5,875 | ) | $ | (5,116 | ) | ||
| (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 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:
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Sweden | $ | 696 | $ | 109 | ||||
| Asia | 1 | |||||||
| Total | $ | 696 | $ | 110 | ||||
We report revenues from external customers based on the country where the customer is located. The following table presents net revenues by country:
| Years ended December 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| (in thousands) | Amount | Percentage | Amount | Percentage | ||||||||||||
| Japan | $ | 1,731 | 55.8 | % | $ | 1,476 | 38.5 | % | ||||||||
| Sweden | 365 | 11.7 | % | % | ||||||||||||
| Germany | 116 | 3.7 | % | 379 | 9.9 | % | ||||||||||
| South Korea | 97 | 3.1 | % | 501 | 13.1 | % | ||||||||||
| China | 31 | 1.0 | % | 18 | 0.5 | % | ||||||||||
| Other | 5 | 0.2 | % | 1 | % | |||||||||||
| $ | 2,345 | 75.5 | % | $ | 2,375 | 62.0 | % | |||||||||
| United States | 763 | 24.5 | % | 1,454 | 38.0 | % | ||||||||||
| $ | 3,108 | 100.0 | % | $ | 3,829 | 100.0 | % | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 21, 2025 | Showing above |
| 2023 | Feb 28, 2024 | |
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.