Segment Information

6 Months Ended

Jun. 30, 2025

6. 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:

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2025			2024			2025			2024
Revenues	$	599		$	801		$	1,112		$	1,615

Costs and expenses^(a)
Cost of revenues		5			24			14			41
Product R&D		44			29			85			68
General and administrative, including rent		350			359			546			723
Payroll and related		1,917			1,706			3,620			3,428
Professional fees and IP		290			406			659			733
Marketing and travel		94			82			254			317
Total costs and expenses		2,700			2,606			5,178			5,310
Other segment items^(b)		(9	)		17			(9	)		20
Other income, net		126			122			281			303
Loss before provision for income taxes		(1,984	)		(1,666	)		(3,794	)		(3,372	)
Provision for income taxes		-			11			(10	)		21
Loss from continuing operations	$	(1,984	)	$	(1,677	)	$	(3,784	)	$	(3,393	)

(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:

	June 30,		December 31,
	2025		2024
Sweden	$	653	$	696
Total	$	653	$	696

We report revenues from external customers based on the country where the customer is located. The following table presents net revenues by country:

	Three months ended June 30,
	2025					2024
(in thousands)	Amount		Percentage			Amount		Percentage
Japan	$	262		43.7	%	$	403		50.3	%
Sweden		204		34.1	%		198		24.7	%
Germany		13		2.2	%		23		2.9	%
China		4		0.7	%		1		0.1	%
South Korea		1		0.2	%		21		2.6	%
Other				-	%		-		-	%
	$	484		80.8	%	$	646		80.6	%
United States		115		19.2	%		155		19.4	%
	$	599		100.0	%	$	801		100.0	%

	Six months ended June 30,
	2025					2024
(in thousands)	Amount		Percentage			Amount		Percentage
Japan	$	612		55.0	%	$	789		48.9	%
Sweden		237		21.3	%		223		13.8	%
Germany		23		2.1	%		87		5.4	%
China		10		0.9	%		7		0.4	%
South Korea		1		0.1	%		83		5.1	%
Other		1		0.1	%		-		-	%
	$	884		79.5	%	$	1,189		73.6	%
United States		228		20.5	%		426		26.4	%
	$	1,112		100.0	%	$	1,615		100.0	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Neonode Inc. 10-Q