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
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https://mb.cision.com/Main/17297/4229257/3648126.pdf | Neonode Announces Anticipated Financial Proceeds from Patent Lawsuit Settlement |
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SOURCE Neonode
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