-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, If+oFCWHjoIbbLJxZQVlMbzcyMt2Zk3U6v6sboUPqfQ0WzIjzwC6payY/5mv4LD7 s6PQG5xluktWWSUWwg4SEw== 0001144204-08-046906.txt : 20080814 0001144204-08-046906.hdr.sgml : 20080814 20080814131601 ACCESSION NUMBER: 0001144204-08-046906 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080630 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080814 DATE AS OF CHANGE: 20080814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Neonode, Inc CENTRAL INDEX KEY: 0000087050 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 941517641 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-08419 FILM NUMBER: 081017117 BUSINESS ADDRESS: STREET 1: 4550 NORRIS CANYON ROAD CITY: SAN RAMON STATE: CA ZIP: 94583 BUSINESS PHONE: 925-355-2000 MAIL ADDRESS: STREET 1: 4000 EXECUTIVE PKWY STREET 2: SUITE 200 CITY: SAN RAMON STATE: CA ZIP: 94583 FORMER COMPANY: FORMER CONFORMED NAME: SBE INC DATE OF NAME CHANGE: 19920703 8-K 1 v123677_8k.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 30, 2008


NEONODE INC.
(Exact name of registrant as specified in its charter)
         
Delaware
 
0-8419
 
94-1517641
(State or other jurisdiction
 
(Commission File Number)
 
(IRS Employer Identification No.)
of incorporation)
       
     
Sweden Warfvingesv’g 45, SE-112 51 Stockholm, Sweden
USA 4000 Executive Parkway, Suite 200, San Ramon, CA.
 
 
94583
(Address of principal executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code:
+468 678 18 50 — Sweden
(925) 355-7700 — USA
 
Not Applicable
(Former name or former address, if changed since last report.)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
1.

 

ITEM 7.01. REGULATION FD DISCLOSURE
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On August 14, 2008, Neonode Inc. announced its results of operations for the three and six months ended June 30, 2008. A copy of the related press release is being furnished as Exhibit 99.1 this Current Report on Form 8-K and incorporated by reference herein.
 
7. Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibits.

(99.1) Press release issued by Neonode Inc.

EXHIBIT
NUMBER
EXHIBIT
   
99.1
Neonode Inc. Announces Second Quarter 2008 Results 
 
 
2.

 
 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
     
  NEONODE INC.
 
 
 
 
 
 
Dated: August 14, 2008 By:   /s/ David W. Brunton
 
David W. Brunton
  Chief Financial Officer and Vice President, Finance
 
 
3.

 
 
EX-99.1 2 v123677_ex99-1.htm

 
NEONODE INC. Reports Second Quarter 2008 Results


STOCKHOLM, SWEDEN, August 14, 2008 - Neonode (NASDAQ: NEON), the Swedish mobile communication company that develops touch screen technologies and designs mobile handsets, today reports the results for the three and six months ended June 30, 2008.

Per Bystedt, CEO and Chairman of the Board of Directors of Neonode Inc commented, “Since my appointment as CEO I have identified several operational and technical issues that have served as roadblocks to success and have put in place measures to correct these problems. I am happy to report that we have corrected our product related technical problems and narrowed our sales focus to better serve our customers. In addition, we have taken steps to reduce our operational cash expenses. We are also in the process of revising our strategic plan so that we are better able to capitalize on the special features of our optical touch screen technology."

“As previously mentioned in my open letter to our shareholders, our product shipments have not met expectations and as a result we are experiencing cash flow constraints. We are currently evaluating financing alternatives to provide adequate capital to fund the company’s growth. While we work on solving our short-term issues, we continue to pursue and support customers for our Neonode N2 mobile handset and are actively working on developing and enhancing our technology platform,” Bystedt continued.

Net sales for the three months ended June 30, 2008 were $401,000 compared to net sales of $226,000 in the three months ended June 30, 2007. Net loss for the three months ended June 30, 2008 amounted to $12.8 million, or $0.46 per share basic and diluted, compared to a net loss for the three months ended June 30, 2007 of $19.5 million, or $1.89 per share basic and diluted. The net loss for the three months ended June 30, 2008 includes a $7.7 million write-down for slow moving inventory and $600,000 of non-cash expense adjustments related to the fair value calculations for the beneficial conversion features of prior financings compared to $16.8 million of non-cash expense for the fair value adjustments for the three months ended June 30, 2007. Accounting regulations require that these financial instruments must be revalued each quarter as though they had an actual market value. The changes in the calculated fair value are recorded as either income or expense in the current income statement.

Net sales for the six months ended June 30, 2008 were $792,000 compared to net sales of $475,000 in the six months ended June 30, 2007. Net loss for the six months ended June 30, 2008 amounted to $24.0 million, or $0.92 per share basic and diluted, compared to a net loss for the six months ended June 30, 2007 of $22.0 million, or $2.14 per share basic and diluted. The net loss for the six months ended June 30, 2008 includes a $7.7 million write-down for slow moving inventory and $6.1 million of non-cash expense adjustments related to the fair value calculations for the beneficial conversion features of prior financings compared to $16.8 million of non-cash expense for these same fair value calculation adjustments for the six months ended June 30, 2007.

Conference Call Information
The company recently published an open letter to all shareholders and also invited all shareholders to attend a shareholder’s meeting on August 5 either in persons or via conference call. At the shareholder meeting the CEO gave a company update and responded to questions. The shareholder letter and a recording of the shareholder meeting are available on the company’s web site. Because of these recent communications, the company will not host an investor conference call. Investors are encouraged to visit the company’s investor relations site; http://investor.neonode.com for more information and to direct any inquiry to the company by filling in the request information form on the site noted above to ask questions.

 
 

 
 
For more information:

David Brunton, Chief Financial Officer
Neonode Inc
Tel: (925) 355-7700

Karin Lehmann Nilsson, Information Manager
Neonode
Tel: +46 8 678 18 50
 
 
About Neonode Inc. 
Neonode Inc specializes in optical finger based touch screen technology.  Neonode’s mission is to enhance user experience related to any consumer or industrial device that can benefit from a finger based touch screen solution. Neonode Inc. is a publicly traded company (NASDAQ: NEON) with offices in Stockholm, Sweden and San Ramon, USA. For more information, visit www.neonode.com.
 
Forward-Looking Statements
This news release contains certain forward-looking statements that involve risks and uncertainties, including statements regarding future products and technology developments. Such statements are only predictions and the company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to, the ability of Neonode to develop and sell new products and technologies. These factors and others are more fully discussed in the documents the company files from time to time with the Securities and Exchange Commission, particularly, the company's most recent Form 10-K and Form 10-Q. Neonode and the Neonode logo are registered trademarks of Neonode Inc. All other brand or product names are trademarks or registered trademarks of their respective holders.


- Tables Follow --

 
 

 

NEONODE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
   
Three months ended June 30,
 
Six months ended June 30,
 
   
2008
 
2007
 
2008
 
2007
 
                   
Total net sales
 
$
401
 
$
226
 
$
792
 
$
475
 
Cost of sales
   
8,382
   
1
   
9,023
   
3
 
                           
Gross margin (loss)
   
(7,981
)
 
225
   
(8,231
)
 
472
 
                           
Operating expenses:
                         
Product research and development
   
1,173
   
1,039
   
2,665
   
2,084
 
Sales and marketing
   
1,136
   
484
   
2,966
   
970
 
General and administrative
   
1,645
   
1,371
   
4,158
   
2,489
 
                           
Total operating expenses
   
3,954
   
2,894
   
9,789
   
5,543
 
                           
Operating loss
   
(11,935
)
 
(2,669
)
 
(18,020
)
 
(5,071
)
                           
Other income (expense, net):
                         
Interest and other income, net
   
21
   
87
   
186
   
181
 
Interest expense
   
(84
)
 
(92
)
 
(93
)
 
(325
)
Non-cash items related to debt discounts and
                         
deferred financing fees and the valuation of
                         
conversion features and warrants
   
(600
)
 
(16,804
)
 
(6,110
)
 
(16,804
)
                           
Total other income (expense), net
   
(663
)
 
(16,809
)
 
(6,017
)
 
(16,948
)
                           
Net loss
 
$
(12,598
)
$
(19,478
)
$
(24,037
)
$
(22,019
)
                           
Loss per common share:
                         
Basic and diluted loss per share
 
$
(0.45
)
$
(1.89
)
$
(0.92
)
$
(2.14
)
                           
Basic and diluted - weighted average
                         
shares used in per share computations
   
27,807
   
10,282
   
26,115
   
10,282
 
 
 
 

 
 
NEONODE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
   
June 30, 2008 
 
December 31, 2007
 
           
ASSETS
           
Current assets:
           
Cash and cash equivalents
 
$
2,096
 
$
1,147
 
Restricted cash
   
168
   
5,702
 
Trade accounts receivable, net of allowance for doubtful accounts
             
of $2,140 and $4,264 at June 30, 2008 and December 31, 2007
   
89
   
868
 
Inventory
   
6,036
   
6,610
 
Prepaid expense
   
535
   
1,081
 
Other
   
222
   
2
 
Total current assets
   
9,146
   
15,410
 
               
Property, plant and equipment, net
   
463
   
375
 
Patents, net
   
66
   
95
 
Other long term assets
   
177
   
395
 
Total assets
 
$
9,852
 
$
16,275
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
             
Current liabilities:
             
Current portion of convertible long term debt (face amount $3,003
             
and $2,895 at June 30, 2008 and December 31, 2007)
 
$
643
 
$
132
 
Accounts payable
   
7,130
   
4,417
 
Accrued expenses
   
965
   
1,391
 
Deferred revenues
   
2,609
   
2,979
 
Embedded derivatives of convertible debt and warrants
   
18,636
   
9,507
 
Other liabilities
   
1,695
   
674
 
Total current liabilities
   
31,678
   
19,100
 
Long term convertible debt (face amount $3,053 and $3,109 at
             
June 30, 2008 and December 31, 2007)
   
77
   
60
 
               
Total liabilities
   
31,755
   
19,160
 
               
Stockholders' deficit:
             
Common stock
   
30
   
24
 
Additional paid in capital
   
60,461
   
55,405
 
Accumulated other comprehensive income
   
311
   
354
 
Accumulated deficit
   
(82,705
)
 
(58,668
)
Total stockholders' deficit
   
(21,903
)
 
(2,885
)
Total liabilities and stockholders' deficit
 
$
9,852
 
$
16,275
 
 
###
 
 
 

 
 
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