Filed
pursuant to Rule 424(b)(5)
Registration No. 333-279252
PROSPECTUS SUPPLEMENT
(TO PROSPECTUS DATED MAY 16, 2024)
Up to $10,366,156
Shares of Common Stock
____________________
On June 3, 2024, we entered into an at the market offering agreement
(the “Sales Agreement”), with Ladenburg Thalmann & Co. Inc. (“Ladenburg”), relating to the offer and sale
of shares of our common stock, par value $0.001 per share, offered by this prospectus supplement to or through Ladenburg as agent or principal.
We may, under this prospectus supplement and accompanying prospectus, offer and sell shares of our common stock having an aggregate offering
price of up to $10,366,156 in accordance with the terms of the Sales Agreement. You should read this prospectus supplement and the accompanying
prospectus, as well as the documents incorporated or deemed to be incorporated by reference herein or therein, before you invest.
Our common stock is listed on the Nasdaq Capital
Market under the symbol “NEON.” On June 3, 2024, the last reported sale price of our common stock on the Nasdaq Capital Market
was $2.80 per share. As of June 3, 2024, the aggregate market value of our public float, calculated according to General Instructions
I.B.6. of Form S-3, is $38,728,576, based on 15,359,481 shares of common stock outstanding as of June 3, 2024, of which 11,560,769 shares
of our common stock are held by non-affiliates. We have not offered any securities pursuant to General Instruction I.B.6. of Form S-3
during the prior 12 calendar month period that ends on, and includes, the date of this prospectus supplement. Pursuant to General Instruction
I.B.6 of Form S-3, in no event will we sell our common stock in a public primary offering with a value exceeding more than one-third of
our public float in any 12-month period so long as our public float remains below $75,000,000.
Sales
of our common stock, if any, under this prospectus supplement may be made in sales deemed to be an “at the market offering”
as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, or the Securities Act), including sales made directly
on or through the Nasdaq Capital Market, the existing trading market for our common stock, sales made to or through a market maker other
than on an exchange or otherwise, directly to Ladenburg as principal, in negotiated transactions at market prices prevailing at the time
of sale or at prices related to such prevailing market prices, and/or in any other method permitted by applicable law. Ladenburg
is not required to sell any specific amount of securities, but will act as our sales agent using commercially reasonable efforts consistent
with its normal trading and sales practices. There is no arrangement for funds to be received in escrow, trust or similar arrangement.
Ladenburg will be entitled to compensation at
a commission rate of 3.0% of the gross sales price per share sold under the Sales Agreement. In connection with the sale of the common
stock on our behalf, Ladenburg will be deemed to be an “underwriter” within the meaning of the Securities Act, and the compensation
of Ladenburg will be deemed to be underwriting commissions or discounts. We have also agreed to provide indemnification and contribution
to Ladenburg with respect to certain liabilities, including liabilities under the Securities Act.
____________________
Investing in our securities involves a
high degree of risk. See “Risk Factors” on page S-6 of this prospectus supplement and the risk factors
that are incorporated by reference into this prospectus supplement and the accompanying prospectus from our filings made with the
Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) for
a discussion of the factors you should carefully consider before deciding to invest in our common stock.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal
offense.
Ladenburg Thalmann
The date of this prospectus supplement is June 4, 2024.
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS SUPPLEMENT
This prospectus supplement and the accompanying prospectus dated May
16, 2024 are part of a registration statement on Form S-3 that we have filed with the Securities and Exchange Commission (the “SEC”),
using a “shelf” registration process. Under the shelf registration statement, we may offer any combination of the securities
described in our base prospectus included in the shelf registration statement in one or more offerings, up to a total aggregate offering
price of $70,971,000. Under this prospectus supplement and the accompanying prospectus, we may offer shares of our common stock having
an aggregate offering price of up to $10,366,156 from time to time at prices and on terms to be determined by market conditions at the
time of offering pursuant to the terms of the Sales Agreement, a copy of which is incorporated by reference into this prospectus supplement.
Before buying any of the common stock that we
are offering, we urge you to carefully read this prospectus supplement and the accompanying prospectus, together with the information
incorporated by reference herein and therein as described under the heading “Incorporation of Certain Information by Reference”
in this prospectus supplement and the information in any free writing prospectus that we may authorize for use in connection with this
offering. These documents contain important information that you should consider when making your investment decision.
This prospectus supplement describes the specific
terms of the common stock we are offering and also adds to and updates information contained in the accompanying prospectus and the documents
incorporated by reference into this prospectus supplement and the accompanying prospectus. To the extent there is a conflict between
the information contained in this prospectus supplement, on the one hand, and the information contained in the accompanying prospectus
and any document incorporated by reference into this prospectus supplement or the accompanying prospectus that was filed with the SEC
before the date of this prospectus supplement, on the other hand, you should rely on the information in this prospectus supplement. If
any statement in one of these documents is inconsistent with a statement in another document having a later date — for example,
a document incorporated by reference into this prospectus supplement — the statement in the document having the later date modifies
or supersedes the earlier statement.
You should rely only on the information contained
in, or incorporated by reference into this prospectus supplement and the accompanying prospectus and in any free writing prospectus that
we may authorize for use in connection with this offering. We have not, and Ladenburg has not, authorized any other person to provide
you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. We are
not, and Ladenburg is not, making an offer to sell or soliciting an offer to buy our common stock in any jurisdiction in which an offer
or solicitation is not authorized or in which the person making that offer or solicitation is not qualified to do so or to anyone to
whom it is unlawful to make an offer or solicitation. You should assume that the information appearing in this prospectus supplement
and the accompanying prospectus, the documents incorporated by reference herein and therein, and in any free writing prospectus that
we may authorize for use in connection with this offering, is accurate only as of the date of those respective documents. Our business,
financial condition, results of operations and prospects may have changed since those dates. You should read this prospectus supplement,
the accompanying prospectus, the documents incorporated by reference herein and therein, and any free writing prospectus that we may
authorize for use in connection with this offering, in their entirety before making an investment decision. You should also read and
consider the information in the documents to which we have referred you in the sections of this prospectus supplement entitled “Where
You Can Find More Information” and “Incorporation of Certain Information by Reference.”
We are offering to sell, and seeking offers to buy, shares of common
stock only in jurisdictions where offers and sales are permitted. The distribution of this prospectus and the offering of the common stock
in certain jurisdictions may be restricted by law. Persons outside the United States who come into possession of this prospectus must
inform themselves about, and observe any restrictions relating to, the offering of the common stock and the distribution of this prospectus
outside the United States. This prospectus does not constitute, and may not be used in connection with, an offer to sell, or a solicitation
of an offer to buy, any securities offered by this prospectus by any person in any jurisdiction in which it is unlawful for such person
to make such an offer or solicitation.
Unless the context otherwise requires, “Neonode,”
“the Company,” “we,” “us,” “our” and similar terms refer to Neonode Inc.
Trademarks, service marks or trade names of any
other companies appearing in this prospectus supplement and the accompanying prospectus are the property of their respective owners.
Use or display by us of trademarks, service marks or trade names owned by others is not intended to and does not imply a relationship
between us, and/or endorsement or sponsorship by, the owners of the trademarks, service marks or trade names.
PROSPECTUS SUPPLEMENT SUMMARY
The following summary highlights information contained elsewhere
in this prospectus supplement, the accompanying prospectus or incorporated by reference herein or therein and does not contain all the
information that may be important to purchasers of our securities. You should carefully read this prospectus supplement, the accompanying
prospectus, all documents incorporated by reference herein or therein, any related free writing prospectus and the additional information
described under the caption “Where You Can Find More Information,” beginning on page S-11 before buying any
of the securities being offered.
The Company
Our company 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 touch, contactless touch, and gesture sensing products and solutions using our zForce technology platform and our machine perception
solutions on our MultiSensing technology platform. zForce (zero force) is the name for our patented optical sensing technology built
on infrared light, invisible to the human eye. Our MultiSensing platform was designed to provide advanced, safe, and scalable software
solutions to provide situational context. 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.
In 2010, we began licensing to Original Equipment
Manufacturers (“OEMs”) and automotive Tier 1 suppliers who embed our technology into products they develop, manufacture,
and sell. Since 2010, our licensing customers have sold approximately 95 million products that feature our technology. In October 2017,
we augmented our licensing business and began manufacturing and shipping touch sensor modules (“TSMs”) that incorporate our
patented technology. We sell these TSMs to OEMs, Original Design Manufacturers (“ODMs”), and systems integrators for use
in their products.
As of December 31, 2023, we had nine agreements
with value added resellers (“VARs”) for integration of our TSMs in the products they offer to global OEMs, ODMs and systems
integrators. In addition to this, we distribute our TSMs through Digi-Key Corporation, Serial Microelectronics HK Ltd., and Nexty Electronics
Corporation.
During 2023, we continued to focus our efforts
on maintaining our current licensing customers and achieving design wins for new programs both with current and future customers. In
parallel we continued to market and sell TSMs directly and indirectly through partners. We made investments enhancing the design and
improving the production yield of our TSMs in our production unit Pronode Technologies AB and improving the related firmware and configuration
tools software platforms.
On December 12, 2023, we announced a new, sharpened
strategy with full focus on the licensing business. Consequently, we will phase out the TSM product business during 2024 through licensing
of the TSM technology to strategic partners or outsourcing.
Licensing
We license our zForce technology to 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 approximately 95 million devices that use our patented technology.
As of December 31, 2023, we had 34 valid technology
license agreements with global OEMs, 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 2024 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.
Product Sales
In addition to our licensing business, we design
and manufacture TSMs that incorporate our patented technology. We sell our TSMs to OEMs, ODMs and systems integrators for use in their
products.
We utilize a robotic manufacturing process designed
specifically for our TSMs. The TSMs are commercial-off-the-shelf products based on our patent-protected zForce technology platform and
can support the development of contactless touch, touch, gesture and object sensing solutions that, paired with our technology licensing
offering, give us a full range of options to enter and compete in key markets.
We began selling our TSMs to customers in the
industrial and consumer electronics segments in 2017. We will phase out the TSM product business during 2024 through licensing of the
TSM technology to strategic partners or outsourcing.
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.
Intellectual Property
We rely on a combination of intellectual
property laws and contractual provisions to establish and protect the proprietary rights in our technology. The number of our issued
and pending patents and patents filed in each jurisdiction as of the date of this prospectus supplement is set forth in the
following table:
Jurisdiction | |
No. of Reg. Designs | | |
No. of Issued
Patents | | |
No. of
Patents
Pending | |
United States | |
| 5 | | |
| 49 | | |
| 9 | |
Europe | |
| - | | |
| 13 | | |
| 3 | |
Japan | |
| - | | |
| 7 | | |
| 2 | |
China | |
| - | | |
| 6 | | |
| 2 | |
South Korea | |
| - | | |
| 6 | | |
| 2 | |
Patent Convention Treaty | |
| Not Applicable | | |
| Not Applicable | | |
| 1 | |
Total: | |
| 5 | | |
| 81 | | |
| 19 | |
Our patents cover optical blocking technologies
for touchscreens and head-up displays, optical reflective technologies for contactless interaction with kiosks and elevators, as well
as machine perception solutions for driver and in-cabin monitoring.
Our software may also be protected by copyright
laws in most countries, including Sweden and the European Union, if the software is deemed new and original. Protection can be claimed
from the date of creation.
In 2023 we filed eleven new patent applications
and had eight new patent grants issued; seven patents have lapsed.
The duration of our patent protection for utility
patents is generally 20 years from the date of filing. The duration of our patent protection for design patents varies throughout the
world between 10 and 25 years from the date of grant, depending on the jurisdiction. We believe the duration of our intellectual property
rights is adequate relative to the expected lives of our products.
We also protect and promote our brand by registering
trademarks in key markets around the world. Our trademarks include: Neonode (26 registrations, 1 pending application), the Neonode logo
(8 registrations), zForce (10 registrations), and MultiSensing (3 registrations).
Risk Factor Summary
Below is a summary of material factors that make
an investment in our common stock speculative or risky. Importantly, this summary does not address all of the risks and uncertainties
that we face. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider
this summary to be a complete discussion of all potential risks or uncertainties that may substantially impact our business. Additional
discussion of the risks and uncertainties summarized in this risk factor summary, as well as other risks and certainties that we face,
are described under the heading “Risk Factors” beginning on page S-6 of this prospectus supplement, and this summary is qualified
in its entirety by that discussion. Moreover, we operate in a competitive and rapidly changing environment. New factors emerge from time
to time and it is not possible to predict the impact of all of these factors on our business, financial condition or results of operations.
You should consider carefully the risks and uncertainties described under the heading “Risk Factors” beginning on page S-6
of this prospectus supplement as part of your evaluation of an investment in our securities.
Risks
Related to This Offering
| ● | Management
will have broad discretion as to the use of the proceeds from this offering and may not use the proceeds effectively. |
| ● | You
may experience immediate and substantial dilution. |
| ● | The
actual number of shares we will issue under the Sales Agreement with Ladenburg, at any one time or in total, is uncertain. |
| ● | The
common stock offered hereby will be sold in “at the market offerings,” and investors who buy shares at different times will
likely pay different prices. |
| ● | There
is a limited trading market for our common stock, which could make it difficult to liquidate an investment in our common stock, in a
timely manner. |
| ● | You
may experience future dilution as a result of future equity offerings. |
| ● | We
do not intend to pay dividends in the foreseeable future. |
Risks
Related to Our Business
| ● | We
have had a history of losses and may require additional capital to fund our operations, which may not be available to us on commercially
attractive terms or at all. |
| ● | We
are dependent on a limited number of customers. |
| ● | We
rely on the ability of our customers to design, manufacture and sell their products that incorporate our touch technology. |
| ● | The
length of a customer’s product development and release cycle depends on many factors outside of our control and any delays could
cause us to incur significant expenses without offsetting revenues, or revenues that vary significantly from quarter to quarter. |
| ● | Our
license customers rely upon component suppliers to manufacture and sell products containing our technology and limited availability of
components may adversely affect our and our customers’ businesses. |
| ● | It
can be difficult for us to verify royalty amounts owed to us under licensing agreements, and this may cause us to lose potential revenue. |
| ● | If
we fail to develop and introduce new technology successfully, and in a cost-effective and timely manner, we will not be able to compete
effectively and our ability to generate revenues will suffer. |
| ● | Our
operating results may fluctuate significantly as a result of a variety of factors, many of which are outside of our control. |
| ● | We
must enhance our sales and technology development organizations. If we are unable to identify, hire, or retain qualified sales, marketing,
and technical personnel, our ability to achieve future revenue may be adversely affected. |
| ● | We
may make acquisitions and strategic investments that are dilutive to existing stockholders,
result in unanticipated accounting charges or otherwise adversely affect our results of operations. |
| ● | We
are dependent on the services of our key personnel. |
| ● | If
we are unable to obtain and maintain patent or other intellectual property protection for any products we develop or for our technologies,
or if the scope of the patents and other intellectual property protection obtained is not sufficiently broad, our competitors could develop
and commercialize products and technologies similar or identical to ours, and our ability to successfully commercialize any products
we may develop, and our technologies, may be harmed. |
| ● | We
may not be successful in our strategic efforts around patent monetization. |
| ● | If
third parties infringe upon our intellectual property, we may expend significant resources enforcing our rights or suffer competitive
injury. |
| ● | The
laws of certain foreign countries may not provide sufficient protection of our intellectual property rights to the same extent as the
laws of the United States, which may make it more difficult for us to protect our intellectual property. |
| ● | Security
breaches and other disruptions to our information technology infrastructure could interfere with our operations, compromise confidential
information, and expose us to liability which could materially adversely impact our business and reputation. |
| ● | Third
parties that maintain our confidential and proprietary information could experience a cybersecurity
incident. |
| ● | If
we are unable to detect material weaknesses in our internal control, our financial reporting and our business may be adversely affected. |
Risks
Related to Owning Our Stock
| ● | Future
sales of our common stock by us or our insiders could adversely affect the trading price of our common stock and dilute your investment. |
| ● | We
currently have fewer than 300 stockholders of record and, therefore, are eligible to terminate the registration of our common stock under
the Exchange Act and cease being a U.S. public company with reporting obligations. |
| ● | Our
stock price has been volatile, and your investment in our common stock could suffer a decline in value. |
| ● | A
limited number of stockholders, including directors, hold a significant number of shares
of our outstanding common stock. |
| ● | Our
certificate of incorporation and bylaws and the Delaware General Corporation Law contain provisions that could delay or prevent a change
in control. |
| ● | If securities analysts do not publish research or if securities analysts or other third parties publish
inaccurate or unfavorable research about us, the price of our common stock could decline. |
Corporate Information
Neonode Inc. was incorporated in the State of
Delaware on September 4, 1997. Our principal executive office is located Karlavägen 100, 115 26 Stockholm, Sweden, and our telephone
number is +46 (0) 70 29 58 519. Our office in the United States is located in San Jose, California. Our website address is www.neonode.com.
The information contained on, or that can be accessed through, our website is not part of this prospectus supplement or the accompanying
prospectus.
We have the following wholly owned subsidiaries:
Neonode Technologies AB (Sweden) (established in 2008 to develop and license touchscreen technology); Neonode Japan Inc. (Japan) (established
in 2013); Neonode Korea Ltd. (South Korea) (established in 2014). Neonode Korea Ltd. is currently dormant. In 2015, we established Pronode
Technologies AB, a subsidiary of Neonode Technologies AB. Since October 1, 2022, Pronode Technologies AB is a wholly owned subsidiary
of Neonode Technologies AB.
The
Offering
Common stock offered by us |
|
Shares of our common stock having an aggregate offering price of up
to $10,366,156. |
|
|
|
Common stock to be outstanding following this
offering |
|
Up to 18,453,855 shares of our common stock, assuming the sale of
3,094,374 shares of our common stock in this offering at an offering price of $3.35 per share, which was the last reported sale price
of our common stock on Nasdaq on May 29, 2024. The actual number of shares of our common stock issued will vary depending on the sale
price under this offering. |
|
|
|
Manner of offering |
|
Sales of our common stock, if any, will be made from time to time in
sales deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act to or through Ladenburg,
as agent or principal.. See “Plan of Distribution” on page S-10. |
|
|
|
Use of proceeds |
|
We intend to use the net proceeds from this offering,
if any, for working capital and general corporate purposes, which may include research and development expenses and capital expenditures.
See “Use of Proceeds” on page S-8. |
|
|
|
Risk factors |
|
Investing in our common stock involves a high degree
of risk. See “Risk Factors” and the other information included in this prospectus supplement, the accompanying prospectus,
and incorporated by reference herein or therein for a discussion of factors you should carefully consider before deciding to invest
in our common stock. These risk factors may be amended, supplemented or superseded from time to time by other reports we file with
the SEC in the future. |
|
|
|
Nasdaq Capital Market Listing |
|
Our common stock is listed on the Nasdaq Capital Market
under the symbol “NEON.” |
The number of shares of our common stock expected to be outstanding
immediately after this offering is based on 15,359,481 shares of our common stock issued and outstanding as of June 3, 2024, and excludes
691,399 shares of our common stock reserved for future issuance under our 2020 Stock Incentive Plan as of June 3, 2024.
RISK FACTORS
An investment in our common stock involves a
high degree of risk. Prior to making a decision about investing in our common stock, you should carefully consider the specific risks
described below, the risks discussed in the sections entitled “Risk Factors” contained in our most recent Annual Report on
Form 10-K or Quarterly Report on Form 10-Q, as filed with the SEC, which are incorporated in this prospectus supplement and accompanying
prospectus by reference in their entirety, as well as any amendment or updates to our risk factors reflected in subsequent filings with
the SEC, including any free writing prospectus that we may authorize for use in connection with this offering. These risks and uncertainties
are not the only risks and uncertainties we face. Additional risks and uncertainties not presently known to us, or that we currently
see as immaterial, may also impair our business. If any of the risks or uncertainties described in our SEC filings or any additional
risks and uncertainties actually occur, our business, financial condition, results of operations and cash flow could be materially and
adversely affected. In that case, the market value and/or trading price, as applicable, of our securities could decline, and you might
lose all or part of your investment.
Risks Related to This Offering
Management will have broad discretion as to the use of the proceeds
from this offering and may not use the proceeds effectively.
Because we have not designated the amount of
net proceeds from this offering to be used for any particular purpose, our management will have broad discretion as to the application
of the net proceeds from this offering and could use them for purposes other than those contemplated at the time of the offering. Our
management may use the net proceeds for corporate purposes that may not improve our financial condition or market value.
You may experience immediate and substantial dilution.
The offering prices per share in this offering
may exceed the net tangible book value per share of our common stock prior to this offering. Assuming that an aggregate of 3,094,374 shares
of our common stock are sold at a price of $3.35 per share pursuant to this prospectus supplement, which was the last reported sale price
of our common stock on the Nasdaq Capital Market on May 29, 2024, you would experience immediate dilution of $2.00 per share, representing
the difference between our as adjusted net tangible book value per share as of March 31, 2024 after giving effect to this offering and
the assumed offering price. The exercise of outstanding stock options and warrants may result in further dilution of your investment.
See the section titled “Dilution” below for a more detailed illustration of the dilution you would incur if you participate
in this offering. Because the sales of the common shares offered hereby will be made directly into the market or in negotiated transactions,
the prices at which we sell these shares will vary and these variations may be significant. Purchasers of the shares we sell, as well
as our existing shareholders, will experience significant dilution if we sell shares at prices significantly below the price at which
they invested.
The actual number of shares we will issue
under the Sales Agreement with Ladenburg, at any one time or in total, is uncertain.
Subject to certain limitations in the Sales Agreement
with Ladenburg and compliance with applicable law, we have the discretion to deliver placement notices to Ladenburg at any time throughout
the term of the Sales Agreement. The number of shares that are sold by Ladenburg after delivering a placement notice will fluctuate based
on the market price of our common stock during the sales period and limits we set with Ladenburg.
The common stock offered hereby will be
sold in “at the market offerings,” and investors who buy shares at different times will likely pay different prices.
Investors who purchase shares
of our common stock in this offering at different times will likely pay different prices, and accordingly may experience different levels
of dilution and different outcomes in their investment results. We will have discretion, subject to market demand and the terms of the
Sales Agreement, to vary the timing, prices, and number of shares of common stock sold in this offering. In addition, subject to the final
determination by our board of directors or any restrictions we may place in any applicable placement notice, there is no minimum or maximum
sales price for shares to be sold in this offering. Investors may experience a decline in the value of the shares they purchase in this
offering as a result of sales made at prices lower than the prices they paid.
There is a limited trading market for our
common stock, which could make it difficult to liquidate an investment in our common stock, in a timely manner.
Our common stock is currently traded on the Nasdaq
Capital Market. Because there is a limited public market for our common stock, investors may not be able to liquidate their investment
whenever desired. We cannot assure that there will be an active trading market for our common stock and the lack of an active public trading
market could mean that investors may be exposed to increased risk. In addition, if we failed to meet the criteria set forth in SEC regulations,
various requirements would be imposed by law on broker-dealers who sell our securities to persons other than established customers and
accredited investors. Consequently, such regulations may deter broker-dealers from recommending or selling our common stock, which may
further affect its liquidity.
You may experience future dilution as a result of future equity
offerings.
In order to raise additional capital, we may
in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common stock at
prices that may not be the same as the price per share paid by any investor in this offering. We may sell shares or other securities
in any other offering at a price per share that is less than the price per share paid by any investor in this offering, and investors
purchasing shares or other securities in the future could have rights superior to you. The price per share at which we sell additional
shares of our common stock, or securities convertible or exchangeable into common stock, in future transactions may be higher or lower
than the price per share paid by any investor in this offering.
We do not intend to pay dividends in the foreseeable future.
We have never paid cash dividends on our common
stock and currently do not plan to pay any cash dividends in the foreseeable future.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus supplement, the accompanying
prospectus, the documents that we incorporate by reference herein or therein and any free writing prospectuses that we may authorize
for use in connection with this offering contain “forward-looking statements” within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act. These forward-looking statements can generally be identified as such because the context of
the statement will include words such as “may,” “will,” “intend,” “plan,” “believe,”
“anticipate,” “expect,” “estimate,” “predict,” “potential,” “continue,”
“likely,” or “opportunity,” the negative of these words or words of similar import. Similarly, statements that
describe our future plans, strategies, intentions, expectations, objectives, goals or prospects are also forward-looking statements.
Discussions containing these forward-looking statements may be found, among other places, in the “Business” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” sections incorporated by reference from our most recent
Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the quarterly periods ended subsequent to our filing of such Annual
Report on Form 10-K, as well as any amendments thereto reflected in subsequent filings with the SEC.
These forward-looking statements are based largely
on our expectations and projections about future events and future trends affecting our business, and are subject to risks and uncertainties
that could cause actual results to differ materially from those anticipated in the forward-looking statements. The risks and uncertainties
include, among others, those noted in “Risk Factors” above and in any applicable prospectus supplement or free writing prospectus,
and those included in the documents that we incorporate by reference herein and therein.
In addition, past financial and/or operating
performance is not necessarily a reliable indicator of future performance, and you should not use our historical performance to anticipate
results or future period trends. We can give no assurances that any of the events anticipated by the forward-looking statements will
occur or, if any of them do, what impact they will have on our results of operations and financial condition. Except as required by law,
we undertake no obligation to publicly revise our forward-looking statements to reflect events or circumstances that arise after the
filing of this prospectus supplement or any supplement or free writing prospectus, or documents incorporated by reference herein and
therein, that include forward-looking statements.
USE OF PROCEEDS
We may issue and sell shares of our common stock having aggregate sales
proceeds of up to $10,366,156 from time to time. Because there is no minimum offering amount required pursuant to the Sales Agreement,
the actual total proceeds to us, if any, are not determinable at this time. Actual net proceeds will depend on the number of shares we
sell and the prices at which such sales occur. We cannot assure you that we will sell any shares under or fully utilize the Sales Agreement
as a source of financing. As a result, our management will have broad discretion in the allocation and use of the net proceeds from this
offering, and investors will be relying on the judgment of our management regarding the application of the proceeds of this offering.
We currently intend to use the net proceeds from
the sale of the securities under this prospectus supplement for general corporate purposes, including for research and development, sales
and marketing initiatives and general administrative expenses, working capital and capital expenditures. Pending our use of the net proceeds
from this offering, we plan to hold the net proceeds in cash.
DILUTION
If you purchase shares of our common stock in this offering, your ownership
interest will be diluted to the extent of the difference between the public offering price per share of our common stock and the as adjusted
net tangible book value per share of our common stock after giving effect to this offering. We calculate net tangible book value per share
by dividing the net tangible book value, which is total tangible assets less total liabilities, by the number of outstanding shares of
our common stock. Dilution represents the difference between the price per share paid by purchasers of shares in this offering and the
as adjusted net tangible book value per share of our common stock immediately after giving effect to this offering. Our net tangible book
value as of March 31, 2024 was approximately $15 million, or $0.98 per share. “Net tangible book value” is total assets minus
the sum of liabilities and intangible assets.
After giving effect to the sale of our
common stock during the term of the Sales Agreement with Ladenburg in the aggregate amount of $10,366,156 at an assumed offering
price of $3.35 per share, the last reported sale price of our common stock on the Nasdaq Capital Market on May 29, 2024 the fixed commission rate of 3.0% payable to Ladenburg and our estimated total expenses for this offering, our net
tangible book value as of March 31, 2024 would have been $24.9 million, or $1.35 per share of common stock. This represents an
immediate increase in the net tangible book value of $0.37 per share to our existing stockholders and an immediate dilution in net
tangible book value of $2.00 per share to new investors. The following table illustrates this per share dilution:
Assumed public offering price per share | |
| | | |
$ | 3.35 | |
Net tangible book value per share as of March 31, 2024 | |
$ | 0.98 | | |
| | |
Increase in net tangible book value per share attributable to this offering | |
$ | 0.37 | | |
| | |
As adjusted net tangible book value per share as of March 31, 2024, after giving effect to this offering | |
| | | |
$ | 1.35 | |
Dilution per share to new investors purchasing shares in this offering | |
| | | |
$ | 2.00 | |
The table above assumes for illustrative purposes
that an aggregate of 3,094,374 shares of our common stock are sold during the term of the Sales Agreement with Ladenburg at a price of
$3.35 per share, the last reported sale price of our common stock on the Nasdaq Capital Market on May 29, 2024, for aggregate gross proceeds
of $10,366,156. Changes in the assumed public offering price of $3.35 per share would not affect our as adjusted net tangible book value
after this offering because this offering is currently limited to $10,366,156. However, the shares subject to the Sales Agreement with
Ladenburg are being sold from time to time at various prices. An increase of $0.50 per share in the price at which the shares are sold
from the assumed offering price per share shown in the table above, to $3.85 per share, assuming all of our common stock in the aggregate
amount of $10,366,156 during the remaining term of the Sales Agreement with Ladenburg is sold at that price, would increase our adjusted
net tangible book value per share after the offering to $1.38 per share and would increase the dilution in net tangible book value per
share to new investors in this offering to $2.47 per share, after deducting commissions and estimated aggregate offering expenses payable
by us. A decrease of $0.50 per share in the price at which the shares are sold from the assumed offering price per share shown in the
table above, to $2.85 per share, assuming all of our common stock in the aggregate amount of $10,366,156 during the term of the Sales
Agreement with Ladenburg is sold at that price, would decrease our adjusted net tangible book value per share after the offering to $1.31
per share and would decrease the dilution in net tangible book value per share to new investors in this offering to $1.54 per share, after
deducting commissions and estimated aggregate offering expenses payable by us. This information is supplied for illustrative purposes
only.
The above discussion and table are based on 15,359,481 shares of our
common stock issued and outstanding as of March 31, 2024, and exclude 691,399 shares of our common stock reserved for future issuance
under our 2020 Stock Incentive Plan as of March 31, 2024.
To the extent that options or warrants outstanding
as of March 31, 2024, if any, have been or are exercised, or other shares are issued, investors purchasing shares in this offering could
experience further dilution. In addition, we may choose to raise additional capital due to market conditions or strategic considerations,
including for potential acquisition or in-licensing opportunities, even if we believe we have sufficient funds for our current or future
operating plans. To the extent that additional capital is raised through the sale of equity or convertible debt securities, the issuance
of these securities could result in further dilution to our stockholders.
PLAN OF DISTRIBUTION
We have entered into an At
The Market Offering Agreement, or the Sales Agreement, with Ladenburg under which we may issue and sell shares of our common stock having
an aggregate gross sales price of up to $10,366,156 from time to time through or to Ladenburg acting as agent or principal.
Upon delivery of a placement
notice and subject to the terms and conditions of the Sales Agreement, Ladenburg may sell our common stock by any method permitted by
law deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act), including
sales made directly on or through the Nasdaq Capital Market, the existing trading market for our common stock, sales made to or through
a market maker other than on an exchange or otherwise, directly to Ladenburg as principal, in negotiated transactions at market prices
prevailing at the time of sale or at prices related to such prevailing market prices, and/or in any other method permitted by applicable
law. We may instruct Ladenburg not to sell common stock if the sales cannot be effected at or above the price designated by us from time
to time. We or Ladenburg may suspend the offering of common stock upon notice and subject to other conditions.
We will pay Ladenburg commissions,
in cash, for its services in acting as agent in the sale of our common stock. Ladenburg will be entitled to compensation at a fixed commission
rate of 3.0% of the gross sales price per share sold. Because there is no minimum offering amount required as a condition of this offering,
the actual total public offering amount, commissions and proceeds to us, if any, are not determinable at this time. We have also agreed
to reimburse Ladenburg for certain specified expenses, including the fees and disbursements of its legal counsel, in an amount not to
exceed $50,000. We estimate that the total expenses for the offering, excluding compensation and reimbursement payable to Ladenburg under
the terms of the Sales Agreement, will be approximately $150,500.
Settlement for sales of common
stock will occur on the first trading day following the date on which any sales are made (or any such shorter settlement cycle as may
be in effect under Exchange Act Rule 15c6-1 from time to time), or on some other date that is agreed upon by us and Ladenburg, in return
for payment of the net proceeds to us. Sales of our common stock as contemplated in this prospectus will be settled through the facilities
of The Depository Trust Company or by such other means as we and Ladenburg may agree upon. There is no arrangement for funds to be received
in an escrow, trust, or similar arrangement.
Ladenburg will use its commercially
reasonable efforts, consistent with its sales and trading practices, to solicit offers to purchase the common stock shares under the terms
and subject to the conditions set forth in the Sales Agreement. In connection with the sale of the common stock on our behalf, Ladenburg
will be deemed to be an “underwriter” within the meaning of the Securities Act and the compensation of Ladenburg will be deemed
to be underwriting commissions or discounts. We have agreed to provide indemnification and contribution to Ladenburg against certain civil
liabilities, including liabilities under the Securities Act.
The offering of our common
stock pursuant to the Sales Agreement will terminate upon the earlier of the sale of all of the shares of our common stock provided for
in this prospectus supplement or the termination of the Sales Agreement as permitted therein.
To the extent required by
Regulation M, Ladenburg will not engage in any market making activities involving our common stock while the offering is ongoing under
this prospectus in violation of Regulation M. Ladenburg and its affiliates may provide various investment banking, commercial banking,
and other financial services for us and our affiliates, for which services they may in the future receive customary fees.
The Sales Agreement will
be filed as an exhibit to a Current Report on Form 8-K on even date herewith. This prospectus supplement in electronic format may be made
available on a website maintained by Ladenburg, and Ladenburg may distribute this prospectus supplement electronically.
LEGAL MATTERS
The validity of the shares of common stock being
offered by this prospectus supplement, and certain other matters have been passed upon by Reed Smith LLP, New York, New York. Sheppard,
Mullin, Richter & Hampton LLP, New York, New York has acted as counsel to Ladenburg in connection with this offering.
EXPERTS
KMJ Corbin & Company LLP, our
independent registered public accounting firm, has audited our consolidated balance sheets as of December 31, 2023 and 2022, and the
related consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for each of the two
years in the period ended December 31, 2023, which report is incorporated by reference in this prospectus supplement and in this
registration statement. We have incorporated by reference our consolidated financial statements in this prospectus supplement and in
this registration statement in reliance on the report of KMJ Corbin & Company LLP given on their authority as experts in
accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
As permitted by SEC rules, this prospectus supplement
omits certain information that is included in the registration statement of which this prospectus supplement forms a part and its exhibits.
Since this prospectus supplement may not contain all of the information that you may find important, we urge you to review the full text
of these documents. If we have filed a contract, agreement or other document as an exhibit to the registration statement of which this
prospectus supplement forms a part, please read the exhibit for a more complete understanding of the document or matter involved. Each
statement in this prospectus supplement, including statements incorporated by reference as discussed above, regarding a contract, agreement
or other document is qualified in its entirety by reference to the actual document.
We are subject to the information reporting requirements
of the Exchange Act and, in accordance with these requirements, we file annual, quarterly and current reports, proxy statements, information
statements, and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s website
at www.sec.gov. In addition, we provide free access to these materials through our website, www.neonode.com, as soon as
reasonably practicable after they are filed with or furnished to the SEC.
INCORPORATION OF INFORMATION BY REFERENCE
The SEC allows us to “incorporate by reference”
information that we file with them. Incorporation by reference allows us to disclose important information to you by referring you to
those other documents. The information incorporated by reference is an important part of this prospectus supplement, and information
that we file later with the SEC will automatically update and supersede this information. This prospectus supplement omits certain information
contained in the registration statement, as permitted by the SEC. You should refer to the registration statement and any prospectus supplement
filed hereafter pertaining to the securities offered hereby, including the exhibits, for further information about us and the securities
we may offer pursuant to this prospectus supplement. Statements in this prospectus supplement regarding the provisions of certain documents
filed with, or incorporated by reference in, the registration statement are not necessarily complete and each statement is qualified
in all respects by that reference. The documents we are incorporating by reference are:
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our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 28, 2024; |
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our Proxy Statement on DEF 14A filed with the SEC on April 26, 2024, as supplemented on April 26, 2024; |
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our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024 filed with the SEC on May 8, 2024; |
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our Current Report on Form 8-K filed on April 10, 2024, as amended by Form 8-K/A on April 16, 2024; and |
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the description of the Company’s Common Stock contained in the Company’ Registration Statement on Form 8-A (File No. 001-35526) filed on April 26, 2012, including any amendment or report filed for the purpose of updating such description. |
In addition, all documents that the Company files
pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, subsequent to the filing of this Registration Statement and prior
to the filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by reference into this Registration Statement and to be a part hereof
from the date of filing of such documents, except as to any document or portion of any document that is deemed furnished and not filed.
Pursuant to Rule 412 under the Securities Act,
any statement contained in the documents incorporated or deemed to be incorporated by reference in this Registration Statement shall
be deemed to be modified, superseded or replaced for purposes of this Registration Statement to the extent that a statement contained
herein or in any other subsequently filed document which also is incorporated or deemed to be incorporated by reference in this Registration
Statement modifies, supersedes or replaces such statement. Any such statement so modified, superseded or replaced shall not be deemed,
except as so modified, superseded or replaced, to constitute a part of this Registration Statement.
Upon written or oral request made to us at the
address or telephone number below, we will, at no cost to the requester, provide to each person, including any beneficial owner, to whom
this prospectus supplement is delivered, a copy of any or all of the information that has been incorporated by reference into this prospectus
supplement (other than an exhibit to a filing, unless that exhibit is specifically incorporated by reference into that filing), but not
delivered with this prospectus supplement:
Neonode Inc.
Karlavägen 100, 115 26 Stockholm, Sweden
+46 (0) 70 29 58 519
PROSPECTUS
NEONODE INC.
$70,971,000
COMMON STOCK
PREFERRED STOCK
DEBT SECURITIES
WARRANTS
RIGHTS
UNITS
This prospectus will allow us to issue, from time
to time at prices and on terms to be determined at or prior to the time of the offering, up to $70,971,000 of any combination of the securities
described in this prospectus, either individually or in units. We may also offer common stock or preferred stock upon conversion of or
exchange for the debt securities; and common stock or preferred stock or debt securities upon the exercise of warrants or rights.
This prospectus describes the general terms of
these securities and the general manner in which these securities will be offered. We will provide you with the specific terms of any
offering in one or more supplements to this prospectus. The prospectus supplements will also describe the specific manner in which these
securities will be offered and may also supplement, update or amend information contained in this document. You should read this prospectus
and any prospectus supplement, as well as any documents incorporated by reference into this prospectus or any prospectus supplement, carefully
before you invest.
Our securities may be sold directly by us to you,
through agents designated from time to time or to or through underwriters or dealers. For additional information on the methods of sale,
you should refer to the section entitled “Plan of Distribution” in this prospectus and in the applicable prospectus supplement.
If any underwriters or agents are involved in the sale of our securities with respect to which this prospectus is being delivered, the
names of such underwriters or agents and any applicable fees, commissions or discounts and over-allotment options will be set forth in
a prospectus supplement. The price to the public of such securities and the net proceeds that we expect to receive from such sale will
also be set forth in a prospectus supplement.
Our common stock is listed on the Nasdaq Capital
Market, under the symbol “NEON.” On May 8, 2024, the last reported sale price of our common stock on the Nasdaq Capital
Market was $2.42 per share. As of May 9, 2024, the aggregate market value of our public float, calculated according to General Instructions
I.B.6. of Form S-3, is $28,092,668, based on 15,359,481 shares of common stock outstanding as of May 8, 2024, of which 11,560,769
shares of our common stock are held by non-affiliates. We have not offered any securities pursuant to General Instruction I.B.6. of Form
S-3 during the prior 12 calendar month period that ends on, and includes, the date of this prospectus. Pursuant to General Instruction
I.B.6 of Form S-3, in no event will we sell our common stock in a public primary offering with a value exceeding more than one-third of
our public float in any 12-month period so long as our public float remains below $75,000,000.
Investing in our securities involves a
high degree of risk. Before deciding whether to invest in our securities, you should consider carefully the risks that we have
described on page 4 of this prospectus under the caption “Risk Factors.” We may include specific risk factors in
supplements to this prospectus under the caption “Risk Factors.” This prospectus may not be used to sell our securities
unless accompanied by a prospectus supplement.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.
The date of this prospectus is May 16, 2024
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement
that we filed with the Securities and Exchange Commission, or SEC, utilizing a “shelf” registration process. Under this shelf
registration process, we may offer shares of our common stock, preferred stock, various series of debt securities and/or warrants or rights
to purchase any of such securities, either individually or in units, in one or more offerings, with a total value of up to $70,971,000.
This prospectus provides you with a general description of the securities we may offer. Each time we offer a type or series of securities
under this prospectus, we will provide a prospectus supplement that will contain specific information about the terms of that offering.
This prospectus does not contain all of the information
included in the registration statement. For a more complete understanding of the offering of the securities, you should refer to the registration
statement, including its exhibits. The prospectus supplement may also add, update or change information contained or incorporated by reference
in this prospectus. However, no prospectus supplement will offer a security that is not registered and described in this prospectus at
the time of its effectiveness. This prospectus, together with the applicable prospectus supplements and the documents incorporated by
reference into this prospectus, includes all material information relating to the offering of securities under this prospectus. You should
carefully read this prospectus, the applicable prospectus supplement, the information and documents incorporated herein by reference and
the additional information under the heading “Where You Can Find More Information” before making an investment decision.
You should rely only on the information we have
provided or incorporated by reference in this prospectus or any prospectus supplement. We have not authorized anyone to provide you with
information different from that contained or incorporated by reference in this prospectus. No dealer, salesperson or other person is authorized
to give any information or to represent anything not contained or incorporated by reference in this prospectus. You must not rely on any
unauthorized information or representation. This prospectus is an offer to sell only the securities offered hereby, but only under circumstances
and in jurisdictions where it is lawful to do so. You should assume that the information in this prospectus or any prospectus supplement
is accurate only as of the date on the front of the document and that any information we have incorporated herein by reference is accurate
only as of the date of the document incorporated by reference, regardless of the time of delivery of this prospectus or any sale of a
security.
We further note that the representations, warranties
and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference in the accompanying
prospectus were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating
risk among the parties to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such
representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and
covenants should not be relied on as accurately representing the current state of our affairs.
This prospectus may not be used to consummate
sales of our securities, unless it is accompanied by a prospectus supplement. To the extent there are inconsistencies between any prospectus
supplement, this prospectus and any documents incorporated by reference, the document with the most recent date will control.
Unless the context otherwise requires, “Neonode,”
“the Company,” “we,” “us,” “our” and similar terms refer to Neonode Inc.
PROSPECTUS SUMMARY
The following is a summary of what we believe
to be the most important aspects of our business and the offering of our securities under this prospectus. We urge you to read this entire
prospectus, including the more detailed consolidated financial statements, notes to the consolidated financial statements and other information
incorporated by reference from our other filings with the SEC or included in any applicable prospectus supplement. Investing in our securities
involves risks. Therefore, carefully consider the risk factors set forth in any prospectus supplements and in our most recent annual and
quarterly filings with the SEC, as well as other information in this prospectus and any prospectus supplements and the documents incorporated
by reference herein or therein, before purchasing our securities. Each of the risk factors could adversely affect our business, operating
results and financial condition, as well as adversely affect the value of an investment in our securities.
The Company
Our company 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 touch, contactless touch, and gesture sensing products and solutions using our zForce technology platform and our machine perception
solutions on our MultiSensing technology platform. zForce (zero force) is the name for our patented optical sensing technology built on
infrared light, invisible to the human eye. Our MultiSensing platform was designed to provide advanced, safe, and scalable software solutions
to provide situational context. 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.
In 2010, we began licensing to Original Equipment
Manufacturers (“OEMs”) and automotive Tier 1 suppliers who embed our technology into products they develop, manufacture, and
sell. Since 2010, our licensing customers have sold approximately 95 million products that feature our technology. In October 2017, we
augmented our licensing business and began manufacturing and shipping touch sensor modules (“TSMs”) that incorporate our patented
technology. We sell these TSMs to OEMs, Original Design Manufacturers (“ODMs”), and systems integrators for use in their products.
As of December 31, 2023, we had nine agreements
with value added resellers (“VARs”) for integration of our TSMs in the products they offer to global OEMs, ODMs and systems
integrators. In addition to this, we distribute our TSMs through Digi-Key Corporation, Serial Microelectronics HK Ltd., and Nexty Electronics
Corporation.
During 2023, we continued to focus our efforts
on maintaining our current licensing customers and achieving design wins for new programs both with current and future customers. In parallel
we continued to market and sell TSMs directly and indirectly through partners. We made investments enhancing the design and improving
the production yield of our TSMs in our production unit Pronode Technologies AB and improving the related firmware and configuration tools
software platforms.
On December 12, 2023, we announced a new, sharpened
strategy with full focus on the licensing business. Consequently, we will phase out the TSM product business during 2024 through licensing
of the TSM technology to strategic partners or outsourcing.
Licensing
We license our zForce technology to 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 approximately 95 million devices that use our patented technology.
As of December 31, 2023, we had 34 valid technology
license agreements with global OEMs, 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 2024 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.
Product Sales
In addition to our licensing business, we design
and manufacture TSMs that incorporate our patented technology. We sell our TSMs to OEMs, ODMs and systems integrators for use in their
products.
We utilize a robotic manufacturing process designed
specifically for our TSMs. The TSMs are commercial-off-the-shelf products based on our patent-protected zForce technology platform and
can support the development of contactless touch, touch, gesture and object sensing solutions that, paired with our technology licensing
offering, give us a full range of options to enter and compete in key markets.
We began selling our TSMs to customers in the industrial
and consumer electronics segments in 2017. We have begun phasing out the TSM product business during 2024 and will begin to focus solely
on licensing of the TSM technology to strategic partners or outsourcing.
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.
Corporate Information
Neonode Inc. was incorporated in the State of
Delaware on September 4, 1997. Our principal executive office is located Karlavägen 100, 115 26 Stockholm, Sweden, and our telephone
number is +46 (0) 70 29 58 519. Our office in the United States is located in San Jose, California. Our website address is www.neonode.com.
The information contained on, or that can be accessed through, our website is not part of this prospectus.
We have the following wholly owned subsidiaries:
Neonode Technologies AB (Sweden) (established in 2008 to develop and license touchscreen technology); Neonode Japan Inc. (Japan) (established
in 2013); Neonode Korea Ltd. (South Korea) (established in 2014). Neonode Korea Ltd. is currently dormant. In 2015, we established Pronode
Technologies AB, a subsidiary of Neonode Technologies AB. Since October 1, 2022, Pronode Technologies AB is a wholly owned subsidiary
of Neonode Technologies AB.
Offerings Under This Prospectus
Under this prospectus, we may offer shares of
our common stock, preferred stock, various series of debt securities and/or warrants or rights to purchase any of such securities, either
individually or in units, with a total value of up to $70,971,000, from time to time at prices and on terms to be determined by market
conditions at the time of the offering. This prospectus provides you with a general description of the securities we may offer. Each time
we offer a type or series of securities under this prospectus, we will provide a prospectus supplement that will describe the specific
amounts, prices and other important terms of the securities.
The prospectus supplement also may add, update
or change information contained in this prospectus or in documents we have incorporated by reference into this prospectus. However, no
prospectus supplement will fundamentally change the terms that are set forth in this prospectus or offer a security that is not registered
and described in this prospectus at the time of its effectiveness.
We may sell the securities directly to investors
or to or through agents, underwriters or dealers. We, and our agents or underwriters, reserve the right to accept or reject all or part
of any proposed purchase of securities. If we offer securities through agents or underwriters, we will include in the applicable prospectus
supplement:
| ● | the
names of those agents or underwriters; |
| ● | applicable
fees, discounts and commissions to be paid to them; |
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● |
details regarding over-allotment options, if any; and |
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the net proceeds to us. |
RISK FACTORS
Please carefully consider the risk factors described
in our periodic reports filed with the SEC, which are incorporated by reference in this prospectus. Before making an investment decision,
you should carefully consider these risks as well as other information we include or incorporate by reference in this prospectus or include
in any applicable prospectus supplement. Additional risks and uncertainties not presently known to us or that we deem currently immaterial
may also impair our business operations or adversely affect our results of operations or financial condition.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus, the documents that we incorporate
by reference and any free writing prospectuses that we may authorize for use in connection with this offering contain “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E
of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These forward-looking statements can generally be identified
as such because the context of the statement will include words such as “may,” “will,” “intend,” “plan,”
“believe,” “anticipate,” “expect,” “estimate,” “predict,” “potential,”
“continue,” “likely,” or “opportunity,” the negative of these words or words of similar import. Similarly,
statements that describe our future plans, strategies, intentions, expectations, objectives, goals or prospects are also forward-looking
statements. Discussions containing these forward-looking statements may be found, among other places, in the “Business” and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections incorporated by reference
from our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the quarterly periods ended subsequent to our
filing of such Annual Report on Form 10-K, as well as any amendments thereto reflected in subsequent filings with the SEC.
These forward-looking statements are based largely
on our expectations and projections about future events and future trends affecting our business, and are subject to risks and uncertainties
that could cause actual results to differ materially from those anticipated in the forward-looking statements. The risks and uncertainties
include, among others, those noted in “Risk Factors” above and in any applicable prospectus supplement or free writing prospectus,
and those included in the documents that we incorporate by reference herein and therein.
In addition, past financial and/or operating performance
is not necessarily a reliable indicator of future performance, and you should not use our historical performance to anticipate results
or future period trends. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or,
if any of them do, what impact they will have on our results of operations and financial condition. Except as required by law, we undertake
no obligation to publicly revise our forward-looking statements to reflect events or circumstances that arise after the filing of this
prospectus or any applicable prospectus supplement or free writing prospectus, or documents incorporated by reference herein and therein,
that include forward-looking statements.
USE OF PROCEEDS
We cannot assure you that we will receive any
proceeds in connection with securities that may be offered pursuant to this prospectus. Unless otherwise indicated in the applicable prospectus
supplement, we intend to use any net proceeds from the sale of securities under this prospectus for our operations and for other general
corporate purposes, including, but not limited to, capital expenditures, general working capital and possible future acquisitions. We
have not determined the amounts we plan to spend on any of the areas listed above or the timing of these expenditures. As a result, our
management will have broad discretion to allocate the net proceeds, if any, we receive in connection with securities offered pursuant
to this prospectus for any purpose. Pending application of the net proceeds as described above, we may initially invest the net proceeds
in short-term, investment-grade, interest-bearing securities or apply them to the reduction of short-term indebtedness.
PLAN OF DISTRIBUTION
General Plan of Distribution
We may offer and sell the securities described
in this prospectus from time to time pursuant to underwritten public offerings, “at the market” offerings, negotiated transactions,
block trades, or a combination of these methods. We may sell the securities (1) to or through underwriters or dealers, (2) through agents,
or (3) directly to one or more purchasers, or through a combination of such methods. We may distribute the securities from time to time
in one or more transactions at:
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fixed price or prices, which may be changed from time to time; |
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prices prevailing at the time of sale; |
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related to the prevailing market prices; or |
We may offer and sell the securities described
in this prospectus directly to or through agents we designate from time to time. We will name any agent involved in the offer and sale
of our securities and describe any commissions payable to such agent in the prospectus supplement describing such offering. Unless the
prospectus supplement states otherwise, our agent will act on a best-efforts basis for the period of its appointment.
If we utilize a dealer in the sale of the securities
being offered by this prospectus, we will sell the securities to the dealer, as principal. The dealer may then resell the securities to
the public at varying prices to be determined by the dealer at the time of resale.
If we utilize an underwriter in the sale of the
securities being offered by this prospectus, we will execute an underwriting agreement with the underwriter at the time of sale, and we
will provide the name of any underwriter in the prospectus supplement, which the underwriter will use to make re-sales of the securities
to the public. In connection with the sale of the securities, we, or the purchasers of the securities for whom the underwriter may act
as agent, may compensate the underwriter in the form of underwriting discounts or commissions. The underwriter may sell the securities
to or through dealers, and the underwriter may compensate those dealers in the form of discounts, concessions or commissions.
With respect to underwritten public offerings,
negotiated transactions and block trades, we will provide in the applicable prospectus supplement information regarding any compensation
we pay to underwriters, dealers or agents in connection with the offering of the securities, and any discounts, concessions or commissions
allowed by underwriters to participating dealers. Underwriters, dealers and agents participating in the distribution of the securities
may be deemed to be underwriters within the meaning of the Securities Act, and any discounts and commissions received by them and any
profit realized by them on resale of the securities may be deemed to be underwriting discounts and commissions. We may enter into agreements
to indemnify underwriters, dealers and agents against civil liabilities, including liabilities under the Securities Act, or to contribute
to payments they may be required to make in respect thereof.
If so indicated in the applicable prospectus supplement,
we will authorize underwriters or other persons acting as our agents to solicit offers by certain institutions to purchase securities
from us pursuant to delayed delivery contracts providing for payment and delivery on the date stated in the prospectus supplement. Each
contract will be for an amount not less than, and the aggregate amount of securities sold pursuant to such contracts shall not be less
nor more than, the respective amounts stated in the prospectus supplement. Institutions with whom the contracts, when authorized, may
be made include commercial and savings banks, insurance companies, pension funds, investment companies, educational and charitable institutions
and other institutions, but shall in all cases be subject to our approval. Delayed delivery contracts will not be subject to any conditions
except that:
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the purchase by an institution of the securities covered under that contract shall not at the time of delivery be prohibited under the laws of the jurisdiction to which that institution is subject; and |
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if the securities are also being sold to underwriters acting as principals for their own account, the underwriters shall have purchased such securities not sold for delayed delivery. The underwriters and other persons acting as our agents will not have any responsibility in respect of the validity or performance of delayed delivery contracts. |
Shares of our common stock sold pursuant to the
registration statement of which this prospectus is a part will be authorized for quotation and trading on the Nasdaq Capital Market. The
applicable prospectus supplement will contain information, where applicable, as to any other listing, if any, on the Nasdaq Capital Market
or any securities market or other securities exchange of the securities covered by the prospectus supplement. We can make no assurance
as to the liquidity of or the existence of trading markets for any of the securities.
In order to facilitate the offering of the securities,
certain persons participating in the offering may engage in transactions that stabilize, maintain or otherwise affect the price of the
securities. This may include over-allotments or short sales of the securities, which involve the sale by persons participating in the
offering of more securities than we sold to them. In these circumstances, these persons would cover such over-allotments or short positions
by making purchases in the open market or by exercising their over-allotment option. In addition, these persons may stabilize or maintain
the price of the securities by bidding for or purchasing the applicable security in the open market or by imposing penalty bids, whereby
selling concessions allowed to dealers participating in the offering may be reclaimed if the securities sold by them are repurchased in
connection with stabilization transactions. The effect of these transactions may be to stabilize or maintain the market price of the securities
at a level above that which might otherwise prevail in the open market. These transactions may be discontinued at any time.
The underwriters, dealers and agents may engage
in other transactions with us, or perform other services for us, in the ordinary course of their business.
DESCRIPTION OF CAPITAL STOCK
General
The following description of our capital stock
and certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws are summaries and are
qualified by reference to our amended and restated certificate of incorporation and our amended and restated bylaws.
Our authorized capital stock consists of 26,000,000
shares, all with a par value of $0.001 per share, 25,000,000 of which are designated as common stock and 1,000,000 of which are designated
as preferred stock.
As of May 9, 2024, we had 55 holders of record
of our common stock, which excludes stockholders whose shares were held in nominee or street name by brokers. The actual number of common
stockholders is greater than the number of record holders and includes stockholders who are beneficial owners, but whose shares are held
in street name by brokers and other nominees. This number of holders of record also does not include stockholders whose shares may be
held in trust by other entities.
Common Stock
The holders of common stock are entitled to one
vote per share on all matters to be voted upon by the stockholders. Subject to preferences that may be applicable to any outstanding preferred
stock, the holders of common stock will be entitled to receive ratably such dividends, if any, as may be declared from time to time by
the board of directors out of funds legally available therefor. See “Dividend Policy.” In the event of our liquidation, dissolution
or winding up, the holders of our common stock will be entitled to share ratably in all assets remaining after payment of liabilities,
subject to prior distribution rights of preferred stock, if any, then outstanding. The holders of our common stock will have no preemptive
or conversion rights or other subscription rights. There will be no redemption or sinking fund provisions applicable to our common stock.
As of May 8, 2024, we had 15,359,481 shares
of our common stock outstanding.
Preferred Stock
Pursuant to the terms of our restated certificate
of incorporation, our board of directors has the authority to issue preferred stock in one or more series and to fix the designations,
powers, preferences and rights, and the qualifications, limitations or restrictions thereof, including dividend rights, conversion right,
voting rights, terms of redemption, liquidation preferences and the number of shares constituting any class or series, without further
vote or action by the stockholders.
The issuance of shares of preferred stock, or
the issuance of rights to purchase such shares, may decrease the amount of earnings and assets available for distribution to the holders
of common stock, could adversely affect the rights and powers, including voting rights, of the common stock, and could have the effect
of delaying, deterring or preventing a change of control of us or an unsolicited acquisition proposal.
As of May 8, 2024, there were no shares of preferred
stock outstanding.
Stock Options
As of May 8, 2024, there were no options outstanding.
Warrants
As of May 8, 2024, there were no warrants outstanding.
Anti-Takeover Effects of Delaware Law and Our Amended and Restated
Certificate of Incorporation and Amended and Restated Bylaws
The provisions of Delaware law and our restated
certificate of incorporation and bylaws could discourage or make it more difficult to accomplish a proxy contest or other change in our
management or the acquisition of control by a holder of a substantial amount of our voting stock. It is possible that these provisions
could make it more difficult to accomplish, or could deter, transactions that stockholders may otherwise consider to be in their best
interests or in our best interests. These provisions are intended to enhance the likelihood of continuity and stability in the composition
of our board of directors and in the policies formulated by the board of directors and to discourage certain types of transactions that
may involve an actual or threatened change of our control. These provisions are designed to reduce our vulnerability to an unsolicited
acquisition proposal and to discourage certain tactics that may be used in proxy fights. Such provisions also may have the effect of preventing
changes in our management.
Delaware Statutory Business Combinations Provision.
We are subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law, or the DGCL. Section 203 of the
DGCL prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder”
for a period of three years after the date of the transaction in which the person became an interested stockholder, unless the business
combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed manner or another
prescribed exception applies. For purposes of Section 203, a “business combination” is defined broadly to include a merger,
asset sale or other transaction resulting in a financial benefit to the interested stockholder, and, subject to certain exceptions, an
“interested stockholder” is a person who, together with his or her affiliates and associates, owns, or within three years
prior, did own, 15% or more of the corporation’s voting stock.
Staggered Board; Removal of Directors and Vacancies.
Our restated certificate of incorporation and our bylaws divide our board of directors into three classes with staggered three-year terms.
In addition, a director may only be removed for cause and only by the affirmative vote of the holders of 66-2/3% of the voting power of
all the then-outstanding shares of our voting stock entitled to vote at an election of directors. Any vacancy on the board of directors
resulting from death, resignation, disqualification, removal or other causes and any newly created directorships resulting from any increase
in the number of directors, will unless the board of directors determines by resolution that any such vacancies or newly created directorships
will be filled by stockholders, be filled only by the affirmative vote of a majority of the directors then in office, even though less
than a quorum of the board of directors. The classification of our board of directors and the limitations on the removal of directors
and filling of vacancies could make it more difficult for a third party to acquire, or discourage a third party from seeking to acquire,
control of our company.
Advance Notice Provisions for Stockholder Proposals
and Stockholder Nominations of Directors. Our amended and restated bylaws provide that, for nominations to the board of directors
or for other business to be properly brought by a stockholder before a meeting of stockholders, the stockholder must first have given
timely notice of the proposal in writing to our Secretary. For an annual meeting, a stockholder’s notice generally must be delivered
not less than 60 days or more than 90 days prior to the anniversary of the previous year’s annual meeting; provided, however,
that in the event that no annual meeting was held in the previous year or the date of the annual meeting has been changed by more than
30 days from the date contemplated at the time of the previous year’s proxy statement, notice by the stockholder to be timely must
be so received not earlier than the close of business on the 90th day prior to such annual meeting and not later than the close of business
on the later of the 60th day prior to such annual meeting or, in the event public announcement of the date of such annual meeting is first
made by us fewer than 70 days prior to the date of such annual meeting, the close of business on the 10th day following the day on which
we first make public announcement of the date of such meeting.
Blank-Check Preferred Stock. Our board
of directors is authorized to issue, without stockholder approval, preferred stock, the rights of which will be determined at the discretion
of the board of directors and that, if issued, could operate as a “poison pill” to dilute the stock ownership of a potential
hostile acquirer to prevent an acquisition that our board of directors does not approve.
Transfer Agent and Registrar
The transfer agent and registrar for our common
stock is Equiniti Trust Company LLC.
Stock Market Listing
Our common stock is listed on The Nasdaq Capital
Market under the symbol “NEON.”
DESCRIPTION OF DEBT SECURITIES
The following description, together with the additional
information we include in any applicable prospectus supplements, summarizes the material terms and provisions of the debt securities that
we may offer under this prospectus. While the terms we have summarized below will apply generally to any future debt securities we may
offer pursuant to this prospectus, we will describe the particular terms of any debt securities that we may offer in more detail in the
applicable prospectus supplement. If we so indicate in a prospectus supplement, the terms of any debt securities offered under such prospectus
supplement may differ from the terms we describe below, and to the extent the terms set forth in a prospectus supplement differ from the
terms described below, the terms set forth in the prospectus supplement shall control.
We may sell from time to time, in one or more
offerings under this prospectus, debt securities, which may be senior or subordinated. We will issue any such senior debt securities under
a senior indenture that we will enter into with a trustee to be named in the senior indenture. We will issue any such subordinated debt
securities under a subordinated indenture, which we will enter into with a trustee to be named in the subordinated indenture. We use the
term “indentures” to refer to either the senior indenture or the subordinated indenture, as applicable. The indentures will
be qualified under the Trust Indenture Act of 1939, as in effect on the date of the indenture. We use the term “debenture trustee”
to refer to either the trustee under the senior indenture or the trustee under the subordinated indenture, as applicable.
The following summaries of material provisions
of the senior debt securities, the subordinated debt securities and the indentures are subject to, and qualified in their entirety by
reference to, all the provisions of the indenture applicable to a particular series of debt securities.
General
Each indenture will provide that debt securities
may be issued from time to time in one or more series and may be denominated and payable in foreign currencies or units based on or relating
to foreign currencies. Neither indenture will limit the amount of debt securities that may be issued thereunder, and each indenture will
provide that the specific terms of any series of debt securities shall be set forth in, or determined pursuant to, an authorizing resolution
and/or a supplemental indenture, if any, relating to such series.
We will describe in each prospectus supplement
the following terms relating to a series of debt securities:
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the title or designation; |
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the aggregate principal amount and any limit on the amount that may be issued; |
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the currency or units based on or relating to currencies in which debt securities of such series are denominated and the currency or units in which principal or interest or both will or may be payable; |
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whether we will issue the series of debt securities in global form, the terms of any global securities and who the depositary will be; |
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the maturity date and the date or dates on which principal will be payable; |
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the interest rate, which may be fixed or variable, or the method for determining the rate and the date interest will begin to accrue, the date or dates interest will be payable and the record dates for interest payment dates or the method for determining such dates; |
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whether or not the debt securities will be secured or unsecured, and the terms of any secured debt; |
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the terms of the subordination of any series of subordinated debt; |
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the place or places where payments will be payable; |
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our right, if any, to defer payment of interest and the maximum length of any such deferral period; |
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the date, if any, after which, and the price at which, we may, at our option, redeem the series of debt securities pursuant to any optional redemption provisions; |
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the date, if any, on which, and the price at which we are obligated, pursuant to any mandatory sinking fund provisions or otherwise, to redeem, or at the holder’s option to purchase, the series of debt securities; |
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whether the indenture will restrict our ability to pay dividends, or will require us to maintain any asset ratios or reserves |
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whether we will be restricted from incurring any additional indebtedness; |
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a discussion on any material or special U.S. federal income tax considerations applicable to a series of debt securities; |
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the denominations in which we will issue the series of debt securities, if other than denominations of $1,000 and any integral multiple thereof; and |
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any other specific terms, preferences, rights or limitations of, or restrictions on, the debt securities. |
We may issue debt securities that provide for
an amount less than their stated principal amount to be due and payable upon declaration of acceleration of their maturity pursuant to
the terms of the indenture. We will provide you with information on the federal income tax considerations and other special considerations
applicable to any of these debt securities in the applicable prospectus supplement.
Conversion or Exchange Rights
We will set forth in the prospectus supplement
the terms, if any, on which a series of debt securities may be convertible into or exchangeable for our common stock or our other securities.
We will include provisions as to whether conversion or exchange is mandatory, at the option of the holder or at our option. We may include
provisions pursuant to which the number of shares of our common stock or our other securities that the holders of the series of debt securities
receive would be subject to adjustment.
Information Concerning the Debenture Trustee
The debenture trustee, other than during the occurrence
and continuance of an event of default under the applicable indenture, undertakes to perform only those duties as are specifically set
forth in the applicable indenture. Upon an event of default under an indenture, the debenture trustee under such indenture must use the
same degree of care as a prudent person would exercise or use in the conduct of his or her own affairs. Subject to this provision, the
debenture trustee is under no obligation to exercise any of the powers given it by the indentures at the request of any holder of debt
securities unless it is offered reasonable security and indemnity against the costs, expenses and liabilities that it might incur.
Payment and Paying Agents
Unless we otherwise indicate in the applicable
prospectus supplement, we will make payment of the interest on any debt securities on any interest payment date to the person in whose
name the debt securities, or one or more predecessor securities, are registered at the close of business on the regular record date for
the interest.
We will pay principal of and any premium and interest
on the debt securities of a particular series at the office of the paying agents designated by us, except that unless we otherwise indicate
in the applicable prospectus supplement, we will make interest payments by check which we will mail to the holder. Unless we otherwise
indicate in a prospectus supplement, we will designate the corporate trust office of the debenture trustee in the City of New York as
our sole paying agent for payments with respect to debt securities of each series. We will name in the applicable prospectus supplement
any other paying agents that we initially designate for the debt securities of a particular series. We will maintain a paying agent in
each place of payment for the debt securities of a particular series.
All money we pay to a paying agent or the debenture
trustee for the payment of the principal of or any premium or interest on any debt securities which remains unclaimed at the end of two
years after such principal, premium or interest has become due and payable will be repaid to us, and the holder of the security thereafter
may look only to us for payment thereof.
Governing Law
The indentures and the debt securities will be
governed by and construed in accordance with the laws of the State of New York, except to the extent that the Trust Indenture Act is applicable.
Subordination of Subordinated Debt Securities
Our obligations pursuant to any subordinated debt
securities will be unsecured and will be subordinate and junior in priority of payment to certain of our other indebtedness to the extent
described in a prospectus supplement. The subordinated indenture does not limit the amount of senior indebtedness we may incur. It also
does not limit us from issuing any other secured or unsecured debt.
DESCRIPTION OF WARRANTS
General
We may issue warrants to our stockholders to purchase
shares of our common stock, preferred stock and/or debt securities. We may offer warrants separately or together with one or more additional
warrants, debt securities, common stock, preferred stock, rights or purchase contracts, or any combination of those securities in the
form of units, as described in the applicable prospectus supplement. Each series of warrants will be issued under a separate warrant agreement
to be entered into between us and a bank or trust company, as warrant agent. The warrant agent will act solely as our agent in connection
with the certificates relating to the rights of the series of certificates and will not assume any obligation or relationship of agency
or trust for or with any holders of rights certificates or beneficial owners of rights. The following description sets forth certain general
terms and provisions of the rights to which any prospectus supplement may relate. The particular terms of the warrant to which any prospectus
supplement may relate and the extent, if any, to which the general provisions may apply to the rights so offered will be described in
the applicable prospectus supplement. To the extent that any particular terms of the warrant, warrant agreement or warrant certificates
described in a prospectus supplement differ from any of the terms described below, then the terms described below will be deemed to have
been superseded by that prospectus supplement. We encourage you to read the applicable warrant agreement and warrant certificate for additional
information before you decide whether to purchase any of our rights.
We will provide in a prospectus supplement the
following terms of the warrants being issued:
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the specific designation and aggregate number of, and the price at which we will issue, the warrants; |
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the currency or currency units in which the offering price, if any, and the exercise price are payable; |
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the designation, amount and terms of the securities purchasable upon exercise of the warrants; |
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if applicable, the exercise price for shares of our common stock and the number of shares of common stock to be received upon exercise of the warrants; |
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if applicable, the exercise price for shares of our preferred stock, the number of shares of preferred stock to be received upon exercise, and a description of that series of our preferred stock; |
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if applicable, the exercise price for our debt securities, the amount of debt securities to be received upon exercise, and a description of that series of debt securities; |
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the date on which the right to exercise the warrants will begin and the date on which that right will expire or, if you may not continuously exercise the warrants throughout that period, the specific date or dates on which you may exercise the warrants; |
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whether the warrants will be issued in fully registered form or bearer form, in definitive or global form or in any combination of these forms, although, in any case, the form of a warrant included in a unit will correspond to the form of the unit and of any security included in that unit; |
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any applicable material U.S. federal income tax consequences; |
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the identity of the warrant agent for the warrants and of any other depositaries, execution or paying agents, transfer agents, registrars or other agents; |
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the proposed listing, if any, of the warrants or any securities purchasable upon exercise of the warrants on any securities exchange; |
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if applicable, the date from and after which the warrants and the common stock, preferred stock and/or debt securities will be separately transferable; |
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if applicable, the minimum or maximum amount of the warrants that may be exercised at any one time; |
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information with respect to book-entry procedures, if any; |
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the anti-dilution provisions of the warrants, if any; |
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any redemption or call provisions; |
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whether the warrants may be sold separately or with other securities as parts of units; and |
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any additional terms of the warrants, including terms, procedures and limitations relating to the exchange and exercise of the warrants. |
Each warrant will entitle the holder of rights
to purchase for cash the principal amount of shares of common stock or other securities at the exercise price provided in the applicable
prospectus supplement. Warrants may be exercised at any time up to the close of business on the expiration date for the rights provided
in the applicable prospectus supplement.
Holders may exercise warrants as described in
the applicable prospectus supplement. Upon receipt of payment and the warrant certificate properly completed and duly executed at the
corporate trust office of the rights agent or any other office indicated in the prospectus supplement, we will, as soon as practicable,
forward the shares of common stock or other securities, as applicable, purchasable upon exercise of the rights. If less than all of the
warrants issued in any rights offering are exercised, we may offer any unsubscribed securities directly to persons other than stockholders,
to or through agents, underwriters or dealers or through a combination of such methods, including pursuant to standby arrangements, as
described in the applicable prospectus supplement.
Warrant Agent
The warrant agent for any warrants we offer will
be set forth in the applicable prospectus supplement.
DESCRIPTION OF RIGHTS
General
We may issue rights to our stockholders to purchase
shares of our common stock, preferred stock, and/or debt securities described in this prospectus. We may offer rights separately or together
with one or more additional rights, debt securities, common stock, warrants or purchase contracts, or any combination of those securities
in the form of units, as described in the applicable prospectus supplement. Each series of rights will be issued under a separate rights
agreement to be entered into between us and a bank or trust company, as rights agent. The rights agent will act solely as our agent in
connection with the certificates relating to the rights of the series of certificates and will not assume any obligation or relationship
of agency or trust for or with any holders of rights certificates or beneficial owners of rights. The following description sets forth
certain general terms and provisions of the rights to which any prospectus supplement may relate. The particular terms of the rights to
which any prospectus supplement may relate and the extent, if any, to which the general provisions may apply to the rights so offered
will be described in the applicable prospectus supplement. To the extent that any particular terms of the rights, rights agreement or
rights certificates described in a prospectus supplement differ from any of the terms described below, then the terms described below
will be deemed to have been superseded by that prospectus supplement. We encourage you to read the applicable rights agreement and rights
certificate for additional information before you decide whether to purchase any of our rights.
We will provide in a prospectus supplement the
following terms of the rights being issued:
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the date of determining the stockholders entitled to the rights distribution; |
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the aggregate number of shares of common stock or other securities purchasable upon exercise of the rights; |
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the exercise price; |
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the aggregate number of rights issued; |
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whether the rights are transferrable and the date, if any, on and after which the rights may be separately transferred; |
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the date on which the right to exercise the rights will commence, and the date on which the right to exercise the rights will expire; |
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the method by which holders of rights will be entitled to exercise; |
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the conditions to the completion of the offering, if any; |
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the withdrawal, termination and cancellation rights, if any; |
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whether there are any backstop or standby purchaser or purchasers and the terms of their commitment, if any; |
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whether stockholders are entitled to oversubscription rights, if any; |
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any applicable U.S. federal income tax considerations; and |
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any other terms of the rights, including terms, procedures and limitations relating to the distribution, exchange and exercise of the rights, as applicable. |
Each right will entitle the holder of rights to
purchase for cash the principal amount of shares of common stock or other securities at the exercise price provided in the applicable
prospectus supplement. Rights may be exercised at any time up to the close of business on the expiration date for the rights provided
in the applicable prospectus supplement.
Holders may exercise rights as described in the
applicable prospectus supplement. Upon receipt of payment and the rights certificate properly completed and duly executed at the corporate
trust office of the rights agent or any other office indicated in the prospectus supplement, we will, as soon as practicable, forward
the shares of common stock or other securities, as applicable, purchasable upon exercise of the rights. If less than all of the rights
issued in any rights offering are exercised, we may offer any unsubscribed securities directly to persons other than stockholders, to
or through agents, underwriters or dealers or through a combination of such methods, including pursuant to standby arrangements, as described
in the applicable prospectus supplement.
Rights Agent
The rights agent for any rights we offer will
be set forth in the applicable prospectus supplement.
DESCRIPTION OF UNITS
The following description, together with the additional
information that we include in any applicable prospectus supplements summarizes the material terms and provisions of the units that we
may offer under this prospectus. While the terms we have summarized below will apply generally to any units that we may offer under this
prospectus, we will describe the particular terms of any series of units in more detail in the applicable prospectus supplement. The terms
of any units offered under a prospectus supplement may differ from the terms described below.
We will incorporate by reference from reports
that we file with the SEC, the form of unit agreement that describes the terms of the series of units we are offering, and any supplemental
agreements, before the issuance of the related series of units. The following summaries of material terms and provisions of the units
are subject to, and qualified in their entirety by reference to, all the provisions of the unit agreement and any supplemental agreements
applicable to a particular series of units. We urge you to read the applicable prospectus supplements related to the particular series
of units that we may offer under this prospectus, as well as any related free writing prospectuses and the complete unit agreement and
any supplemental agreements that contain the terms of the units.
General
We may issue units consisting of common stock,
preferred stock, one or more debt securities, warrants, rights or purchase contacts for the purchase of common stock, preferred stock
and/or debt securities in one or more series, in any combination. Each unit will be issued so that the holder of the unit is also the
holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a holder of each security
included in the unit. The unit agreement under which a unit is issued may provide that the securities included in the unit may not be
held or transferred separately, at any time or at any time before a specified date.
We will describe in the applicable prospectus
supplement the terms of the series of units being offered, including:
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the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately; |
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any provisions of the governing unit agreement that differ from those described below; and |
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any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units. |
The provisions described in this section, as well
as those set forth in any prospectus supplement or as described under “Description of Capital Stock,” “Description of
Debt Securities,” “Description of Warrants,” and “Description of Rights” will apply to each unit, as applicable,
and to any common stock, debt security, warrant or right included in each unit, as applicable.
Unit Agent
The name and address of the unit agent for any
units we offer will be set forth in the applicable prospectus supplement.
Issuance in Series
We may issue units in such amounts and in such
numerous distinct series as we determine.
Enforceability of Rights by Holders of Units
Each unit agent will act solely as our agent under
the applicable unit agreement and will not assume any obligation or relationship of agency or trust with any holder of any unit. A single
bank or trust company may act as unit agent for more than one series of units. A unit agent will have no duty or responsibility in case
of any default by us under the applicable unit agreement or unit, including any duty or responsibility to initiate any proceedings at
law or otherwise, or to make any demand upon us. Any holder of a unit may, without the consent of the related unit agent or the holder
of any other unit, enforce by appropriate legal action its rights as holder under any security included in the unit.
LEGAL MATTERS
Reed Smith LLP, New York, New York, will pass
upon the validity of the issuance of the securities to be offered by this prospectus.
EXPERTS
KMJ Corbin & Company LLP, our independent
registered public accounting firm, has audited our consolidated balance sheets as of December 31, 2023 and 2022, and the related consolidated
statements of operations, comprehensive loss, stockholders’ equity and cash flows for each of the two years in the period ended
December 31, 2023, which report is incorporated by reference in this prospectus. We have incorporated by reference our consolidated financial
statements in this prospectus and in this registration statement in reliance on the report of KMJ Corbin & Company LLP given on their
authority as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
As permitted by SEC rules, this prospectus omits
certain information that is included in the registration statement of which this prospectus forms a part and its exhibits. Since this
prospectus may not contain all of the information that you may find important, we urge you to review the full text of these documents.
If we have filed a contract, agreement or other document as an exhibit to the registration statement of which this prospectus forms a
part, please read the exhibit for a more complete understanding of the document or matter involved. Each statement in this prospectus,
including statements incorporated by reference as discussed above, regarding a contract, agreement or other document is qualified in its
entirety by reference to the actual document.
We are subject to the information reporting requirements
of the Exchange Act and, in accordance with these requirements, we file annual, quarterly and current reports, proxy statements, information
statements, and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s website
at www.sec.gov. In addition, we provide free access to these materials through our website, www.ritterpharmaceuticals.com,
as soon as reasonably practicable after they are filed with or furnished to the SEC.
INCORPORATION OF INFORMATION BY REFERENCE
The SEC allows us to “incorporate by reference”
information that we file with them. Incorporation by reference allows us to disclose important information to you by referring you to
those other documents. The information incorporated by reference is an important part of this prospectus, and information that we file
later with the SEC will automatically update and supersede this information. This prospectus omits certain information contained in the
registration statement, as permitted by the SEC. You should refer to the registration statement and any prospectus supplement filed hereafter,
including the exhibits, for further information about us and the securities we may offer pursuant to this prospectus. Statements in this
prospectus regarding the provisions of certain documents filed with, or incorporated by reference in, the registration statement are not
necessarily complete and each statement is qualified in all respects by that reference. The documents we are incorporating by reference
are:
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our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 28, 2024; |
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our Definitive Proxy Statement on Form DEF 14A filed with the SEC on April 26, 2024, as supplemented on April 26, 2024; |
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our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024 filed with the SEC on May 8, 2024; |
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our Current Report on Form 8-K filed on April 10, 2024, as amended by Form 8-K/A on April 16, 2024; and |
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the description of the Company’s Common Stock contained in the Company’ Registration Statement on Form 8-A (File No. 001-35526) filed on April 26, 2012, including any amendment or report filed for the purpose of updating such description. |
In addition, all documents that the Company files
pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, subsequent to the filing of this Registration Statement and prior
to the filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by reference into this Registration Statement and to be a part hereof
from the date of filing of such documents, except as to any document or portion of any document that is deemed furnished and not filed.
Pursuant to Rule 412 under the Securities Act,
any statement contained in the documents incorporated or deemed to be incorporated by reference in this Registration Statement shall be
deemed to be modified, superseded or replaced for purposes of this Registration Statement to the extent that a statement contained herein
or in any other subsequently filed document which also is incorporated or deemed to be incorporated by reference in this Registration
Statement modifies, supersedes or replaces such statement. Any such statement so modified, superseded or replaced shall not be deemed,
except as so modified, superseded or replaced, to constitute a part of this Registration Statement.
Upon written or oral request made to us at the
address or telephone number below, we will, at no cost to the requester, provide to each person, including any beneficial owner, to whom
this prospectus is delivered, a copy of any or all of the information that has been incorporated by reference into this prospectus (other
than an exhibit to a filing, unless that exhibit is specifically incorporated by reference into that filing), but not delivered with this
prospectus:
Neonode Inc.
Karlavägen 100, 115 26 Stockholm, Sweden
+46 (0) 8 667 17 17
Up to $10,366,156 Shares of Common Stock
PROSPECTUS SUPPLEMENT
Ladenburg Thalmann
June 4, 2024
Neonode (NASDAQ:NEON)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Neonode (NASDAQ:NEON)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024