Neonode Announces Anticipated Financial Proceeds from Patent Lawsuit Settlement

Rhea-AI Summary

Neonode (NASDAQ: NEON) announced anticipated proceeds from a patent lawsuit settlement between Samsung Electronics and Neonode Smartphone LLC (Aequitas Sub). While not directly involved in the lawsuit, Neonode expects to receive net proceeds of $15-20 million based on its 50% share agreement from a 2019 patent assignment to Aequitas Technologies LLC.

The settlement stems from a June 2020 lawsuit filed by Aequitas Sub against Samsung for patent infringement. The case was dismissed on September 2, 2025, following the settlement. A separate patent infringement case against Apple Inc. remains pending. The company's Board has not yet decided on the use of the settlement proceeds.

Positive

• Expected net proceeds of $15-20 million from the Samsung patent settlement
• Company maintains 50% share in potential future patent monetization proceeds
• Ongoing potential for additional revenue from pending Apple patent litigation

Negative

• Final proceeds subject to tax implications and other financial considerations
• No clear strategy announced for use of settlement proceeds
• Company not directly involved in litigation control or decisions

News Market Reaction

-71.38% 5.5x vol

21 alerts

-71.38% News Effect

-84.6% Trough in 23 hr 9 min

-$901M Valuation Impact

$361M Market Cap

5.5x Rel. Volume

On the day this news was published, NEON declined 71.38%, reflecting a significant negative market reaction. Argus tracked a trough of -84.6% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $901M from the company's valuation, bringing the market cap to $361M at that time. Trading volume was exceptionally heavy at 5.5x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

STOCKHOLM, Sept. 3, 2025 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) (the "Company" or "Neonode") today announced that it has been informed of its anticipated proceeds from a settlement of the lawsuit between Neonode Smartphone LLC ("Aequitas Sub", a subsidiary of Aequitas Technologies LLC, an unrelated third party) and Samsung Electronics Co. Ltd. ("Samsung") (Civil Action No. 6:20-cv-00507) pertaining to the alleged infringement of certain patents assigned by Neonode to Aequitas Technologies LLC ("Aequitas") in 2019. While Neonode was not a party to the lawsuit, as discussed further below, the Company is entitled to 50 percent of any net proceeds from the settlement pursuant to the terms of the Assignment Agreement, dated May 6, 2019, between the Company and Aequitas (the "Assignment Agreement").

Based on settlement details shared with the Company and subject to assessment by third parties, Neonode expects to receive net proceeds of approximately US$15 million to US$20 million after deducting a brokerage fee payable by the Company in connection with the original assignment to Aequitas and estimated legal fees, taxes and other expenses. The Company will continue to evaluate the tax implications and other financial considerations that may affect the net amount available to the Company.

As of September 3, 2025, no decision has been made by Neonode's Board of Directors (the "Board") on the expected use of proceeds from the settlement.

Background Information

As previously disclosed in the Company's Current Report on Form 8-K filed with Securities and Exchange Commission (SEC) on May 8, 2019, the Company assigned a portfolio of patents to Aequitas, an unrelated third party. The assignment provides the Company the right to share in the potential net proceeds generated from a possible licensing and monetization program that Aequitas may enter into. Under the terms of the assignment, net proceeds mean gross proceeds less out of pocket expenses and legal fees paid by Aequitas. The Company's share would also be net of a brokerage fee payable by the Company in connection with the original assignment to Aequitas.

A lawsuit was filed on June 8, 2020 by Aequitas Sub against Samsung Electronics Co. Ltd. (Civil Action No. 6:20-cv-00507) in the United States District Court for the Western District of Texas (the "Court") alleging infringement of certain patents previously assigned by the Company to Aequitas. Aequitas Sub is a subsidiary of Aequitas Technologies LLC and is not affiliated with Neonode Inc.

The court dismissed the case on September 2, 2025 following a settlement between Aequitas Sub and Samsung.

The separate patent infringement litigation brought by Aequitas Sub against Apple Inc. (assigned docket number 3:21-cv-08872) remains pending in the United States District Court for the Northern District of California.

For more information, please contact:

CONTACT:

Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09

President and Chief Executive Officer
Pierre Daniel Alexus
E-mail: daniel.alexus@neonode.com
Phone: +46 767 60 29 90

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/neonode/r/neonode-announces-anticipated-financial-proceeds-from-patent-lawsuit-settlement,c4229257

The following files are available for download:

https://mb.cision.com/Main/17297/4229257/3648126.pdf	Neonode Announces Anticipated Financial Proceeds from Patent Lawsuit Settlement
https://news.cision.com/neonode/i/neonode-announces-anticipated-proceeds-lawsuit,c3466738	neonode-announces-anticipated-proceeds-lawsuit

SOURCE Neonode

View original content:https://www.prnewswire.com/news-releases/neonode-announces-anticipated-financial-proceeds-from-patent-lawsuit-settlement-302545756.html

SOURCE Neonode

FAQ

How much money will Neonode (NEON) receive from the Samsung patent settlement?

Neonode expects to receive net proceeds of $15-20 million after deducting brokerage fees, legal fees, taxes, and other expenses.

What was the patent lawsuit between Samsung and Neonode about?

The lawsuit was filed by Aequitas Sub (not Neonode directly) against Samsung Electronics regarding alleged infringement of patents that Neonode had previously assigned to Aequitas Technologies in 2019.

Does Neonode have any other pending patent litigation?

Yes, there is a separate patent infringement case brought by Aequitas Sub against Apple Inc. (docket number 3:21-cv-08872) pending in the United States District Court for the Northern District of California.

How will Neonode use the settlement proceeds?

As of September 3, 2025, no decision has been made by Neonode's Board of Directors regarding the expected use of the settlement proceeds.

What is Neonode's relationship with Aequitas in the patent litigation?

Neonode assigned its patent portfolio to Aequitas in 2019 with an agreement to receive 50% of net proceeds from any potential licensing and monetization programs, but is not directly involved in the litigation.