Neonode Inc.

And welcome to Neonode's Q2 2022 earnings call. Today, we'll start with the company presentation, which is then followed by questions and answer sessions led by me and the other covering analysts. And the analysts are welcome to dial in after the company presentation to ask questions. And with that said, I'll leave over to the CEO of Neonode. Welcome, Ovan Forssell.

Thank you, Jesper. And welcome to this second quarter 2022 earnest call, also from my side. I'm sorry for a slight delay that we have in this call. It was due to a minor technical issue. It's normally sold, hopefully, so you can all follow this with good quality. Today, Joining me in this presentation is our CFO, Fredrik Nylén, and I will just in a minute give the word to Fredrik. But before we go into the main part of the presentation, I would like you to take a moment and read the following legal disclaimer. This presentation contains and the related oral and written statements of the company and its management may contain forward-looking statements. Forward-looking statements include information about current expectations, strategy plans, potential financial performance, or future events. They also may include statements about market opportunity and sales growth, financial results, use of cash, product development and introduction, regulatory matters, and sales efforts. Forward-looking statements are based on assumptions, expectations, and information available to the company and its management and involve a number of known and unknown risk uncertainties and other factors that may cause the company's actual results, levels of activity, performance, or achievements to be materially different from any expressed or implied by these forward-looking statements. I also refer all viewers of this call to see our official filings with the SEC that are available through neonode.com. Prospective investors are advised to carefully consider these various risks, uncertainties, and other factors. Any forward-looking statements, including this presentation, are made as of today's date. The company and its management undertake no duty to update or revise forward-looking statements. This presentation has been prepared by the company based on its own information as well as information from public sources. Certain of the information contained herein may be derived from information provided by industry sources. The company believes such information is accurate and that the sources from which it has obtained this information are reliable. However, the company has not independently verified such information and cannot guarantee the accuracy of such information. Thank you. And with this, we move on to the main part of the presentation. And we have a short agenda today. And Fredrik, please come up and present Q2 2022 financial results.

Thank you, Urban. I will summarize the financial results for Q2 2022. You can find the details on our webpage, neo.com, under the investor section and in our 10Q. Revenues, total revenues for the Q2 2022 was 1.3 million. That is a decrease of 26% year over year. License revenues decreased this quarter due to mainly that our customers has component shortages and cannot produce products with our technology, and hence we get lower revenues. Our product revenues was 0.2 million in Q2 2022. That is a decrease of 39% year over year. During 2021, we saw an increase in demand for products or TSMs, and they were included in retrofit solutions. During 2022, we still are impacted by the lockdowns due to COVID-19. And we can also see that product developments, new product developments take longer time, sometimes up to 18 months or longer. that impacts our products revenues negatively. Our gross margin is 56% in Q2 2022, and that is an increase of 70 percentage point year over year. And if we look at the adjusted margin for TSM's, we can see an increase and a positive trend. The 56% are based on low volumes and we expect that we will have some push down when the larger volumes will come. Our operating expenses was 2.8 million in Q2 2022. That is a decrease of 14% year over year. It's mainly due to lower staff expenses, but also lower depreciation and amortization costs. This gives us a result for Q2 net loss of 1.5 million US dollars compared to 1.7 million US dollars for the same period last year. Coming to cash, we had a net cash burn of 2.9 million in Q2 2022. That is an increase quarter of a quarter of 29%. For the first half of 2022, we invested in our inventory to secure production of our TSM's. We don't expect to have any more large investment in inventory during the rest of the year. That gives us a cash and accounts receivable balance of 13.5 million as of June 30, 2022. And with that, I will leave it over to you again, Urban.