Neonode Reveals Expected Financial Gains from Patent Settlement with Samsung

Neonode Anticipates Financial Gains from Patent Settlement

Neonode Inc. (NASDAQ: NEON) has recently disclosed its expectations regarding financial proceeds resulting from a patent lawsuit settlement, specifically involving a case with Samsung Electronics Co., Ltd. This development arises from a complex legal battle that has significant implications for the company.

Settlement Overview

On September 3, 2025, Neonode announced that it expects to receive between $15 million to $20 million in net proceeds as a result of the lawsuit settlement between its subsidiary, Aequitas Sub, and Samsung. Although Neonode itself was not directly involved in the lawsuit, the company stands to benefit from this financial agreement due to prior arrangements made concerning its patent rights.

The lawsuit, which was filed by Aequitas Sub against Samsung on June 8, 2020, alleged that certain patents assigned to Aequitas by Neonode were infringed upon. Under the Assignment Agreement established between Neonode and Aequitas on May 6, 2019, Neonode retains entitlement to 50% of any net proceeds derived from such settlements, making this outcome particularly beneficial for the company.

Details of the Lawsuit and Settlement

The legal action took place in the United States District Court for the Western District of Texas and was aimed at addressing alleged patent infringements by Samsung. On September 2, 2025, the case was officially dismissed following the settlement, marking the end of this chapter in a lengthy legal process. This positive outcome allows Neonode to not only recover some financial momentum but also positions it strategically in the competitive technology landscape.

While companies typically face numerous expenses during litigation, Neonode has outlined that the anticipated net proceeds will be after accounting for a brokerage fee and estimated legal expenses related to the patent assignments. The board is currently reviewing the implications and anticipated uses for the proceeds, though no formal decisions have been made as of now.

Broader Implications and Next Steps

The revenue from this settlement could have substantial implications for Neonode's ongoing operations and future innovations. It offers the company an unexpected financial influx that can significantly aid in research and development initiatives, helping to propel new technologies forward. Neonode is also evaluating various financial considerations and tax implications that will affect the final net amount they realize from this settlement.

In addition to the Samsung case, Aequitas Sub has an ongoing patent infringement litigation against Apple Inc., which remains pending in the United States District Court for the Northern District of California. The outcome of this case could further enhance Aequitas’s financial standing and, by extension, Neonode’s as well.

For interested stakeholders and analysts, Neonode's progress following this settlement is crucial to monitor, as it reflects the company's ability to navigate the intricate patent landscape and uphold its technology's value in the evolving market.

For further details on this announcement and related financial dealings, please reach out to:

- Fredrik Nihlén, Chief Financial Officer

Email:
Phone: +46 703 97 21 09

- Pierre Daniel Alexus, President and CEO

Email:
Phone: +46 767 60 29 90

As Neonode moves forward, its ability to capitalize on such settlements will be vital in ensuring sustainable growth and continued innovation within the tech industry. The roadmap ahead looks promising, and the financial windfall from the Samsung settlement is just one proof of concept for Neonode's strategic foresight and planning.