Neonode Inc. reported financial results for the third quarter ended September 30, 2024, reflecting its ongoing strategic shift to a pure licensing business. Revenues from continuing operations totaled $0.8 million, a 0.2% decrease compared to the same period in 2023. License revenues decreased by 12.6% to $0.7 million, primarily due to lower demand for legacy products in printer and passenger car touch applications, partially offset by new licensing customers.
Non-recurring engineering (NRE) revenues saw a substantial increase of 2,575.0% to $0.1 million for the quarter, mainly driven by the driver monitoring system (DMS) project with a commercial vehicle OEM announced in late 2023. Operating expenses from continuing operations decreased by 2.7% compared to the prior year, primarily due to lower payroll costs. The net loss from continuing operations was $1.0 million, or $0.07 per share, a slight improvement from a $1.1 million loss in Q3 2023.
Cash used by operations decreased to $1.3 million in Q3 2024 from $1.8 million in the prior year, largely due to the absence of component purchases following the phaseout of TSM manufacturing. Fredrik Nihlén, interim President and CEO, expressed optimism regarding new projects in driver and in-cabin monitoring solutions, noting growing market interest in their cost-effective touch interaction solutions. The company's cash and accounts receivable stood at $18.6 million, with working capital at $17.7 million, providing stability for strategy execution.
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