Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This Quarterly Report on Form 10-Q (this "Quarterly Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements that are not purely historical may be forward-looking. For example, statements in this Quarterly Report regarding our plans, strategy and focus areas are forward-looking statements. You can identify some forward-looking statements by the use of words such as "believe," "anticipate," "expect," "intend," "goal," "plan," and similar expressions. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect our future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to our history of losses since inception, our dependence on a limited number of customers, our reliance on our customers' ability to design, manufacture and sell products that incorporate our touch technology, the length of a product development and release cycle, our and our customers' reliance on component suppliers, the difficulty in verifying royalty amounts owed to us, our ability to remain competitive in response to new technologies, our dependence on key members of our management and development team, the costs to defend, as well as risks of losing, patents and intellectual property rights, our ability to obtain adequate capital to fund future operations, and general economic conditions, including inflation, or other effects related to future pandemics or epidemics, or geopolitical conflicts such as the ongoing war in Ukraine or the Gaza Strip. For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forward-looking statements, please see the discussion under "Risk Factors" and elsewhere in this Quarterly Report, our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in our publicly available filings with the Securities and Exchange Commission. Forward-looking statements reflect our analysis only as of the date of this Quarterly Report. Because actual events or results may differ materially from those discussed in or implied by forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statement. We do not undertake responsibility to update or revise any of these factors or to announce publicly any revision to forward-looking statements, whether as a result of new information, future events or otherwise.

The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report and consolidated financial statements for the year ended December 31, 2024 included in our most recent Annual Report on Form 10-K. All information in the following discussion and analysis present the results of continuing operations and exclude amounts related to discontinued operations for all periods presented unless otherwise stated.

Neonode Inc., collectively with its subsidiaries, is referred to in this Form 10-Q as "Neonode", "we", "us", "our", "registrant", or "Company".

Overview

Neonode provides advanced optical sensing solutions for touch, contactless touch, and gesture sensing. We also provide software solutions for machine perception that feature advanced machine learning algorithms to detect and track persons and objects in video streams from cameras and other types of imagers. We base our contactless touch, touch, and gesture sensing products and solutions using our zForce technology platform and our machine perception solutions on our MultiSensing technology platform. We market and sell our solutions to customers in many different markets and segments including, but not limited to, office equipment, automotive, industrial automation, medical, military and avionics.

Licensing

We license our zForce technology to Original Equipment Manufacturers ("OEMs") and automotive Tier 1 suppliers who embed our technology into products that they develop, manufacture and sell. Since 2010, our licensing customers have sold over 95 million devices that use our patented technology.

As of June 30, 2025, we had 37 valid technology license agreements with global OEMs, Original Design Manufacturers ("ODMs") and automotive Tier 1 suppliers.

Our licensing customer base is primarily in the automotive and printer segments. Ten of our licensing customers are currently shipping products that embed our technology. We anticipate current customers will continue to ship products with our technology in 2025 and in future years. We also expect to expand our customer base with a number of new customers who will be looking to ship new products incorporating our zForce and MultiSensing technologies as they complete final product development and release cycles. We typically earn our license fees on a per unit basis when our customers ship products using our technology, but in the future, we may use other business models as well.

Non-recurring Engineering Services

We also offer non-recurring engineering ("NRE") services related to application development linked to our TSMs and our zForce and MultiSensing technology platforms on a flat rate or hourly rate basis.

Typically, our licensing customers require engineering support during the development and initial manufacturing phase for their products using our technology, while our TSM customers require hardware or software modifications to our standard products or support during the development and initial manufacturing phases of their products using our technology. In both cases we can offer NRE services and earn NRE revenues.

Global Conflicts

The ongoing war in Ukraine has impacted the global economy as the United States, the UK, the EU, and other countries have imposed broad export controls and financial and economic sanctions against Russia (a large exporter of commodities), Belarus, and specific areas of Ukraine, and may continue to impose additional sanctions or other measures. Russia may impose its own counteractive measures. We do not procure materials directly from Ukraine or Russia, but the war in Ukraine may further exacerbate ongoing supply chain disruptions that are occurring across the globe. In addition, the war in Israel and Gaza and the possible expansion of such war has created political and potential economic uncertainty in the Middle East. While the precise effects on global economies from the Israel-Hamas war, the war in Ukraine and related sanctions remain uncertain, there has been significant volatility in the financial markets, fluctuations in currency exchange rates, and an increase in energy and commodity prices globally. Should the wars continue or escalate, there may be various economic and security consequences including, but not limited to, additional supply shortages of different kinds; further increases in prices of commodities; significant disruptions in logistics infrastructure and telecommunications services; and risks relating to the unavailability of information technology systems and infrastructure. The resulting impacts on the global economy, financial markets, inflation, interest rates, and unemployment, among others, could adversely impact economic and financial conditions.

Results of Operations

A summary of our financial results is as follows:

		Three months ended June 30,								Variance in
(in thousands, except percentages)		2025				2024				Dollars				Percent
Revenues:
License fees		$	404			$	614			$	(210	)			(34.2	)%
Percentage of revenue			67.4	%			76.7	%
Non-recurring engineering		$	195			$	187			$	8				4.3	%
Percentage of revenue			32.6	%			23.3	%
Total Revenue		$	599			$	801			$	(202	)			(25.2	)%
Cost of revenues:
Non-recurring engineering		$	6			$	24			$	(18	)			(75.0	)%
Percentage of revenue			1.0	%			3.0	%
Total cost of revenues		$	6			$	24			$	(18	)			(75.0	)%
Total gross margin		$	593			$	777			$	(184	)			(23.7	)%
Operating expenses:
Research and development		$	1,074			$	975			$	99				10.2	%
Percentage of revenue			179.3	%			121.7	%
Sales and marketing			596				544				52				9.6	%
Percentage of revenue			99.5	%			67.9	%
General and administrative			1,033				1,047				(14	)			(1.3	)%
Percentage of revenue			172.5	%			130.7	%
Total operating expenses		$	2,703			$	2,566			$	137				5.3	%
Percentage of revenue			451.3	%			320.3	%
Operating loss		$	(2,110	)		$	(1,789	)		$	(321	)			17.9	%
Percentage of revenue			(352.3	)%			(223.3	)%
Other income, net			126				123				3				2.4	%
Percentage of revenue			21.0	%			15.4	%
Provision for income taxes			-				11				(11	)			(100.0	)%
Percentage of revenue			-	%			1.4	%
Loss from continuing operations		$	(1,984	)		$	(1,677	)		$	(307	)			18.3	%
Percentage of revenue			(331.2	)%			(209.4	)%
Loss per share from continuing operations - basic and diluted		$	(0.12	)		$	(0.11	)		$	(0.01	)			9.1	%

		Six months ended June 30,								Variance in
(in thousands, except percentages)		2025				2024				Dollars				Percent
Revenues:
License fees		$	901			$	1,387			$	(486	)			(35.0	)%
Percentage of revenue			81.0	%			85.9	%
Non-recurring engineering		$	211			$	228			$	(17	)			(7.5	)%
Percentage of revenue			19.0	%			14.1	%
Total Revenue		$	1,112			$	1,615			$	(503	)			(31.1	)%
Cost of revenues:
Non-recurring engineering		$	15			$	41			$	(26	)			(63.4	)%
Percentage of revenue			1.3	%			2.5	%
Total cost of revenues		$	15			$	41			$	(26	)			(63.4	)%
Total gross margin		$	1,097			$	1,574			$	(477	)			(30.3	)%
Operating expenses:
Research and development		$	2,049			$	1,870			$	179				9.6	%
Percentage of revenue			184.3	%			115.8	%
Sales and marketing			1,238				1,360				(122	)			(9.0	)%
Percentage of revenue			111.3	%			84.2	%
General and administrative			1,885				2,019				(134	)			(6.6	)%
Percentage of revenue			169.5	%			125.0	%
Total operating expenses		$	5,172			$	5,249			$	(77	)			(1.5	)%
Percentage of revenue			465.1	%			325.0	%
Operating loss		$	(4,075	)		$	(3,675	)		$	(400	)			10.9	%
Percentage of revenue			(366.5	)%			(227.6	)%
Other income, net			281				303				(22	)			(7.3	)%
Percentage of revenue			25.3	%			18.8	%
Provision for income taxes			(10	)			21				(31	)			(147.6	)%
Percentage of revenue			(0.9	)%			1.3	%
Loss from continuing operations		$	(3,784	)		$	(3,393	)		$	(391	)			11.5	%
Percentage of revenue			(340.3	)%			(210.1	)%
Loss per share from continuing operations - basic and diluted		$	(0.23	)		$	(0.22	)		$	(0.01	)			4.5	%

Revenues

All of our sales for the three and six months ended June 30, 2025 and 2024 were to customers located in the United States, Europe and Asia.

Total revenues were $0.6 million and $1.1 million for the three and six months ended June 30 2025, respectively, compared to $0.8 million and $1.6 million for the same periods in 2024, respectively. The decrease in total revenues of 25.2% for the three months ended June 30, 2025, as compared to the same period in 2024, is explained by lower license fees. The decrease in total revenues of 31.1% for the six months ended June 30, 2025, as compared to the same period in 2024, is explained by lower license fees and non-recurring revenues.

License Fees

Revenues from license fees were $0.4 million and $0.9 million for the three and six months ended June 30, 2025, respectively, compared to $0.6 million and $1.4 million for the same periods in 2024, respectively. The decrease of 34.2% for the three months ended June 30, 2025, as compared to the same period in 2024, was mainly due to lower demand for our legacy customers' products within printer and passenger car touch applications. The decrease of 35.0% for the six months ended June 30, 2025, as compared to the same period in 2024, was mainly due to lower demand for our legacy customers' products within printer and passenger car touch applications.

Non-recurring Engineering

Revenues from non-recurring engineering were $0.2 million and $0.2 million for the three and six months ended June 30, 2025, respectively, compared to $0.2 million and $0.2 million for the same periods in 2024, respectively. Most of our non-recurring engineering revenues are related to application development and proof-of-concept projects related to our zForce and MultiSensing technology platforms. The increase of 4.3% for the three months ended June 30, 2025, as compared to the same period in 2024, was the result of delivery in the Commercial OEM DMS project. The decrease of 7.5% for the six months ended June 30, 2025, as compared to the same period in 2024, was the result of fewer projects.

The following tables presents the net revenues by market and revenue stream:

		Three months ended June 30,
		2025								2024
(in thousands)		Amount				Percentage				Amount				Percentage
Automotive
License fees		$	143				44.3	%		$	255				59.6	%
Non-recurring engineering			180				55.7	%			173				40.4	%
		$	323				100.0	%		$	428				100.0	%
IT & Industrial
License fees		$	261				94.6	%		$	359				96.2	%
Non-recurring engineering			15				5.4	%			14				3.8	%
		$	276				100.0	%		$	373				100.0	%

		Six months ended June 30,
		2025								2024
(in thousands)		Amount				Percentage				Amount				Percentage
Automotive
License fees		$	321				63.1	%		$	592				77.4	%
Non-recurring engineering			188				36.9	%			173				22.6	%
		$	509				100.0	%		$	765				100.0	%
IT & Industrial
License fees		$	580				96.2	%		$	795				93.5	%
Non-recurring engineering			23				3.8	%			55				6.5	%
		$	603				100.0	%		$	850				100.0	%

Gross Margin

Our gross margin was 99.0% and 98.7% for the three and six months ended June 30, 2025, respectively, compared to 97.0% and 97.5% for the same periods in 2024, respectively.

Our cost of revenues includes the direct cost of production of certain customer prototypes, costs of engineering personnel, engineering consultants to complete the engineering design contracts.

Research and Development

Research and development ("R&D") expenses were $1.1 million and $2.0 million for the three and six months ended June 30, 2025, respectively, compared to $1.0 million and $1.9 million for the same periods in 2024, respectively. The increase of 10.2% for the three months ended June 30, 2025 compared to the same period in 2024 was primarily related to higher payroll and related costs. The increase of 9.6% for the six months ended June 30, 2025 compared to the same period in 2024 was primarily related to higher payroll and related costs.

R&D expenses primarily consist of personnel-related costs in addition to external consultancy costs, such as testing, certifying and measurements, along with costs related to developing and building new product prototypes.

Sales and Marketing

Sales and marketing expenses were $0.6 million and $1.2 million for the three and six months ended June 30, 2025, respectively, compared to $0.5 million and $1.4 million for the same periods in 2024, respectively. The increase of 9.6% for the three months ended June 30, 2025 compared to the same period in 2024 was primarily related to higher payroll and related costs. The decrease of 9.0% for the six months ended June 30, 2025 compared to the same period in 2024 was primarily related to lower payroll and related costs and lower spend in marketing.

Our sales and marketing activities focus on OEM, ODM and Tier 1 customers who will license our technology.

General and Administrative

General and administrative expenses were $1.0 million and $1.9 million for the three and six months ended June 30, 2025, respectively, compared to $1.0 million and $2.0 million for the same periods in 2024, respectively. The decrease of 1.3% for the three months ended June 30, 2025, compared to the same period in 2024, was primarily related to lower professional fees offset by higher payroll and related costs. The decrease of 6.6% for the six months ended June 30, 2025, compared to the same period in 2024, was primarily related to lower overall costs.

Other Income

Other income was $0.1 million and $0.3 million for the three and six months ended June 30, 2025, respectively, compared to $0.1 million and $0.3 million for the same periods in 2024, respectively. The other income for the period was mainly related to interest income earned.

Income Taxes

Our effective tax rate was zero and 0.3% for the three and six months ended June 30, 2025, respectively, compared to (0.7)% and (0.6)% for the same periods in 2024, respectively. The tax rate is due to global intangible low-taxed income and change in valuation allowance.

Net Loss

As a result of the factors discussed above, we recorded a loss from continuing operations of $1.9 million and $3.7 million for the three and six months ended June 30, 2025, respectively, and $1.7 million and $3.4 million for the same periods in 2024, respectively.

Liquidity and Capital Resources

Our liquidity is dependent on many factors, including sales volume, operating profit and the efficiency of asset use and turnover. Our future liquidity will be affected by, among other things:

	●	licensing of our technology;
	●	operating expenses;
	●	timing of our OEM customer product shipments;
	●	timing of payment for our technology licensing agreements;
	●	gross profit margin; and
	●	ability to raise additional capital, if necessary.

As of June 30, 2025, we had cash and cash equivalents of $13.2 million, as compared to $16.4 million as of December 31, 2024. Based on our current cash position, and assuming currently planned expenditures and level of operations, we believe we have sufficient capital to fund operations for the twelve-month period subsequent to the date of this Report.

Working capital (current assets less current liabilities) was $12.1 million as of June 30, 2025, compared to $16.1 million as of December 31, 2024.

Net cash used in operating activities for combined continuing and discontinued operations for the six months ended June 30, 2025, was $3.1 million and was primarily the result of a net loss of $3.6 million and approximately $0.1 million in non-cash operating expenses, comprised of depreciation and amortization and amortization of operating lease right-of-use assets and changes in operating assets and liabilities of $0.4 million. Net cash used in operating activities for combined continuing and discontinued operations for the six months ended June 30, 2024, was $3.1 million and was primarily the result of a net loss of $3.8 million and approximately $0.4 million in non-cash operating expenses, comprised of stock-based compensation expense, depreciation and amortization, amortization of operating lease right-of-use assets and inventory impairment loss and changes in operating assets and liabilities of $0.2 million.

Net cash used in investing activities for the six months ended June 30, 2025, was approximately $15,000 and was primarily the result of purchase of property and equipment. Net cash provided by investing activities for the six months ended June 30, 2024, was approximately $153,000 and was primarily proceeds from sale of property and equipment offset by purchase of property and equipment.

Net cash used in financing activities for the six months ended June 30, 2025 and 2024, was approximately $5,000 and $13,000, respectively, and was primarily the result of principal payments on finance leases.

We have incurred significant operating losses and negative cash flows from operations since our inception. The Company incurred net losses for combined continuing and discontinued operations of approximately $1.9 million and $3.6 million for the three and six months ended June 30, 2025, respectively, compared to $1.7 million and $3.8 million for the same periods in 2024, respectively, and had an accumulated deficit of approximately $227.7 million and $224.1 million as of June 30, 2025 and December 31, 2024, respectively. In addition, operating activities used cash of approximately $3.1 million and $3.1 million for the six months ended June 30, 2025 and 2024, respectively.

The condensed consolidated financial statements included herein have been prepared on a going concern basis, which contemplates continuity of operations and the realization of assets and the repayment of liabilities in the ordinary course of business. Management evaluated the significance of the Company's operating loss and negative cash flows from operations and determined that the Company's current operating plan and sources of liquidity would be sufficient to alleviate concerns about the Company's ability to continue as a going concern. Management has prepared an operating plan and believes that the Company has sufficient cash to meet its obligations as they come due for a year from the date the financial statements were issued.

In the future, we may require sources of capital in addition to cash on hand and our Ladenburg ATM Facility to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek equity investments or debt arrangements. Historically, we have been able to access the capital markets through sales of common stock and warrants to generate liquidity. Our management believes it could raise capital through public or private offerings if needed to provide us with sufficient liquidity.

No assurances can be given, however, that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, results of operations and financial condition. In addition, no assurance can be given that stockholders will approve an increase in the number of our authorized shares of common stock if needed. The issuance of equity securities or securities convertible into equity could dilute the value of shares of our common stock and cause the market price to fall, and the issuance of debt securities could impose restrictive covenants that could impair our ability to engage in certain business transactions.

The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen, the South Korean Won and the Taiwan Dollar. They are subject to foreign currency exchange rate risk. Any increase or decrease in the exchange rate of the U.S. Dollar compared to the Swedish Krona, Japanese Yen, South Korean Won or Taiwan Dollar will impact our future operating results.

Contractual Obligations and Off-Balance Sheet Arrangements

We do not have any transactions, arrangements, or other relationships with unconsolidated entities that are reasonably likely to affect our liquidity or capital resources other than the operating leases incurred in the normal course of business.

We have no special purpose or limited purpose entities that provide off-balance sheet financing, liquidity, or market or credit risk support. We do not engage in leasing, hedging, research and development services, or other relationships that expose us to liability that is not reflected on the face of the consolidated financial statements.

Operating Leases

Neonode Inc. operates solely through a virtual office in California.

On December 1, 2020, Neonode Technologies AB entered into a lease for 6,684 square feet of office space located at Karlavägen 100, Stockholm, Sweden. The lease agreement has been extended and is valid through November 2026. It is extended on a yearly basis unless written notice is provided nine months prior to the expiration date.

For total rent expense for combined continuing and discontinued operations, we recorded $115,000 and $219,000 for the three and six months ended June 30, 2025, respectively, compared to $123,000 and $249,000 for the same periods in 2024.

Non-Recurring Engineering Development Costs

On April 25, 2013, we entered into an Analog Device Development Agreement with an effective date of December 6, 2012 (the "NN1002 Agreement") with Texas Instruments ("TI") pursuant to which TI agreed to integrate our intellectual property into an ASIC, which is used in our licensed technology. Under the terms of the NN1002 Agreement, we agreed to pay TI $500,000 of non-recurring engineering costs at the rate of $0.25 per ASIC for each of the first 2 million ASICs sold. As of June 30, 2025, we had made no payments to TI under the NN1002 Agreement.

At-the-Market Offering Program

On May 10, 2021, we entered into an At Market Issuance Sales Agreement (the "B. Riley Sales Agreement") with B. Riley Securities, Inc. ("B. Riley Securities") with respect to an "at the market" offering program (the "B. Riley ATM Facility"), under which we may, from time to time, in our sole discretion, issue and sell through B. Riley Securities, acting as sales agent, up to $25 million of shares of our common stock, in any method permitted that is deemed an "at the market" offering as defined in Rule 415 under the Securities Act. On May 29, 2024, we terminated the B. Riley Sales Agreement with B. Riley Securities.

On June 4, 2024, we entered into an At The Market Offering Agreement (the "Ladenburg Sales Agreement") with Ladenburg Thalmann & Co. Inc. ("Ladenburg") with respect to an "at the market" offering program (the "Ladenburg ATM Facility"), under which we may, from time to time, in our sole discretion, issue and sell through Ladenburg, acting as agent or principal, up to approximately $10 million of shares of our common stock.

Pursuant to the Ladenburg Sales Agreement, we may sell the shares through Ladenburg by any method permitted that is deemed an "at the market" offering as defined in Rule 415 under the Securities Act. Ladenburg will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the shares from time to time, based upon instructions from us (including any price or size limits or other customary parameters or conditions we may impose). We will pay Ladenburg a commission of 3.0% of the gross sales price per share sold under the Ladenburg Sales Agreement.

We are not obligated to sell any shares under the Ladenburg Sales Agreement. The offering of shares pursuant to the Ladenburg Sales Agreement will terminate upon the earlier to occur of (i) the issuance and sale, through Ladenburg, of all of the shares of our common stock subject to the Ladenburg Sales Agreement and (ii) termination of the Ladenburg Sales Agreement in accordance with its terms.

During the three and six months ended June 30, 2025 and 2024, no shares were sold under the Ladenburg ATM Facility.

Patent Assignment

On May 6, 2019, the Company assigned a portfolio of patents to Aequitas Technologies LLC ("Aequitas"), an unrelated third party. The assignment provides the Company the right to share the potential net proceeds generated from 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 the Company's own fees and expenses, including a brokerage fee payable by the Company in connection with the original assignment to Aequitas.

As reflected in publicly available court filings, on June 8, 2020, Neonode Smartphone LLC, an unrelated third party that is a subsidiary of Aequitas ("Aequitas Sub"), filed complaints against Apple Inc. ("Apple") (assigned docket number 6:20-cv-00505-ADA), and Samsung Electronics Co., Ltd., and Samsung Electronics America, Inc. (collectively, "Samsung") (assigned docket number 6:20-cv -00507-ADA; see also 6:23-cv-00204-ADA), in the Western District of Texas alleging infringement of two patents, U.S. Patent Nos. 8,095,879 and 8,812,993.

U.S. Patent No. 8,095,879

In November 2020, Samsung and Apple filed a petition for inter partes review of certain challenged claims in U.S. Patent No. 8,095,879, assigned proceeding number IPR2021-00144. As reflected in publicly available records, the U.S. Patent and Trademark Office Patent Trial and Appeal Board ("PTAB") denied the petition in June 2021. Apple and Samsung filed a request for rehearing, which was ultimately granted on December 3, 2021, and inter partes review was instituted. The court case against Apple was subsequently transferred to the Northern District of California in November 2021 and assigned docket number 3:21-cv-08872, which was subsequently stayed pending the PTAB's decision. The case against Samsung in the Western District of Texas was likewise stayed pending PTAB ruling.

Meanwhile, in June 2021, Google LLC ("Google") filed a separate petition with the PTAB seeking inter partes review of certain challenged claims in U.S. Patent No. 8,095,879, assigned proceeding number IPR2021-01041. As reflected in publicly available records, the PTAB granted the petition in January 2022

The PTAB found in favor of Aequitas Sub and against Apple and Samsung in December 2022 in connection with the inter partes review proceedings, ruling that none of the challenged claims were unpatentable. The PTAB similarly held in favor of Aequitas Sub and against Google in January 2023. Apple and Samsung appealed to the United States Court of Appeals for the Federal Circuit (the "Federal Circuit") in February 2023 (assigned docket number 23-1464, and Google filed its appeal in the Federal Circuit in March 2023 (assigned docket number 23-1638. On July 18, 2024, the Federal Circuit affirmed the PTAB's rulings, found in favor of Aequitas Sub and against Google and Apple/Samsung, and held that none of the challenged claims in U.S. Patent No. 8,095,879 are unpatentable.

As reflected in publicly available court records, on July 14, 2023, the United States District Court for the Western District of Texas entered its final claim constructions in the Samsung case (docket number 6:20-cv-507), and based on those claim constructions, entered judgment in favor of Samsung and against Aequitas Sub. Aequitas Sub filed an appeal with the Federal Circuit in August 2023 (assigned docket number 23-2304), and oral argument was held on June 6, 2024 As reflected on the public court docket, on August 20, 2024, the Federal Circuit issued its written opinion, reversing and remanding the case to the Western District of Texas for further proceedings. Specifically, the Federal Circuit held that claim 1 of the '879 patent was not indefinite. Mandate issued returning the case to the Western District of Texas on September 26, 2024. On November 5, 2024, Samsung filed its Answer to the Complaint. On June 13, 2025, the parties submitted a joint motion to stay all deadlines for thirty (30) days as the parties had reached a "settlement in principle." On June 20, 2025, the Court granted the motion to stay and ordered that all deadlines be stayed until July 21, 2025. On July 17, 2025, the parties submitted a joint motion to extend the stay for an additional thirty days "so that the settlement agreement can be finalized and appropriate dismissal papers submitted." On August 5, 2025, the Court granted the parties request to extend the stay until August 20, 2025.

The case against Apple remains pending in the United States District Court for the Northern District of California (docket number 21-cv-8872). On November 13, 2024, the Court granted the parties' motion to continue the stay pending resolution of the Samsung case pending in the Western District of Texas (case number 20-cv-00507-ADA) by settlement or final judgment.

U.S. Patent No. 8,812,993

Based on information in public records, in November 2020, Samsung and Apple collectively sought inter partes review of certain claims in U.S. Patent No. 8,812,993 (assigned proceeding number IPR2021-00145). In June 2022, the PTAB invalidated U.S. Patent No. 8,812,993, which Aequitas Sub appealed to the Federal Circuit in August 2022 (assigned docket number 22-2134). The Federal Circuit affirmed the PTAB's decision on June 11, 2024.