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| Statement |
|---|
| So it's fantastic to see |
| So we are quite excited about our future potential |
| We are well positioned for future growth |
| We are actually quite happy with the outlook |
| Also, it's a better fit for Neonode given our strong licensing DNA |
| We have improved our operational efficiency |
| We have improved our Cybersecurity and in general, strengthen our IT environment in the company |
| CES was a great success |
| And this is also adding to this feeling that we are well positioned for future growth |
| And the new strategy, in addition, it taps into our licensing DNA, which is very, very strong in Neonode since actually more than 20 years |
| But of course, this is proof that we have a really good offering |
| So we are aiming at very, very high gross margins going forward, and we think that also the growth on the top line will be very interesting |
| We are, of course, working hard to grow this business, with our current market cap, it's, I think, a good investment and it could easily give a good return if you enter today or if you scale up today |
| We also have quite good hopes to recover a substantial part of that by selling these components to customers licensing technology |
| So that's very exciting for us, of course |
| So I think our margins still will be very, very good going forward |
| we are continuing to refine and massage and looking for the best way to grow our, both top line and the margins |
| And I want to underline here that in automotive, with our current touch solutions, we are around 8 million vehicles on the road with this technology, very, very good quality, very, very satisfied customers |
| So we have a strong sales pipeline, and we are working to sign new deals and also fill up the pipeline even further in automotive |
| We feel here that we have a very, very strong offering, even though we are sort of a late incumbent in this market, but we have a very, very strong technical offer and also a lot of experience with several million vehicles on the road with Neodent's technology already in them and at least 12 years legacy of working with automotive Tier 1s and manufacturers |
| And also, we feel that we have strong interest in our Head-up Display Obstruction Detection and Human Machine Interface Solutions from other automotive customers |
| This said, actually, current share price is quite attractive |
| And it continues to be a very, very interesting revenue stream from these customers |
| We have a breakthrough new design win |
| So I think that will support both the growth ambition and the improvement of the margins by simplifying our internal operations, allowing us to focus more in our marketing, in our sales and in our product development on fewer but bigger opportunities |
| So it was really, really good |
| In Q4, we announced also a breakthrough driver monitoring software award from a leading commercial vehicle manufacturer |
| This is a very, very important stepping stone for us and gives us momentum for 2024 and beyond |
| We feel that we are entering 2024 with momentum |
| And in automotive, -- those that have followed us during the last couple of years, I've noticed that we have a stronger and stronger focus on automotive and in automotive on driver and in-cabin monitoring |
| Statement |
|---|
| And the outcome and the results that we managed to achieve in terms of sales were, I would say, below expectations |
| Looking in our Products business, we admit the sales were weak, and we saw weakening demand during last year, despite investing with our partners in many cases |
| Instead, we saw that the sales volumes decreased, and we feel that, the main reason for this is simply weak demand |
| And actually, as we write in the 10-K and in our earnings release, we are disappointed about the decrease in sales revenues |
| This is due to low demand for our products |
| License revenues decreased with 15% to $3.8 million in 2023, and this has to do with surplus in inventory and volumes at our customers, the sales volumes at our customers, as Urban said before |
| And we had also a loss in purchase commitment |
| It's both that they may obstruct the image, including warning messages that you are projecting on the windshield and they may also have other technical problems with objects sitting on the top of the Head-up Display causing overheating and other types of problems in the units |
| Nevertheless, 2023 was a tough year for us |
| And we have in our P&L, taking some impairment losses and other things, which explains the bulk of the sort of negative result compared to, for instance, 2022 |
| Unfortunately, we were struggling to sell more TSMs as we have projected and as we have targeted and planned for |
| Even though we had a net loss of $10.1 million, our net cash burn, operating activities for 2023 was $6.3 million, a decrease of 7% compared to 2022 |
| Product revenues was $0.6 million, a decrease of 38% compared to 2022 |
| Anyway, that impacted the sales of new printers and hence decreased our license revenues |
| These royalty revenues fell in some cases |
| And we are all facing the same kind of pressure from the vehicle manufacturers to keep the prices low |
| They were stable during the first half, but starting to weaken in the Q3 and especially Q4 |
| That is a decrease of 22% compared to 2022 |
| But let me end this first part by saying that we are, and I am not happy with the sales revenues that we managed to achieved in 2023 |
| And as Fredrik said, regarding the impairment loss for component inventory that we have |
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