Neonode Expects $15M–$20M In Proceeds From Samsung Patent Settlement Pertaining To The Alleged Infringement Of Certain Patents Assigned By Neonode To Aequitas Technologies

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.