Neonode Inc. (NASDAQ:NEON) Q3 2023 Earnings Call Transcript

So, as a driver sitting down in the driver’s seat, it may be invisible to you if there’s a parking ticket, for instance, sitting on this surface. And then, you will never know if there’s a warning sign coming on that you don’t see. So, this is a very interesting application area for us. And we have good resonance with several Tier 1s offering head-up displays to OEMs and also from OEMs, especially here in Europe, and I would say also premium manufacturers of more advanced and exclusive vehicles. So probably, this is where it will start, but we see that in the future, more and more OEMs will follow the trend to move into head-up display as the main information projector, so to say, for the driver in their vehicles. And we are super excited about our opportunities here.

And we continue to work with customers in Asia, in Europe, and North America to promote this and work with them to develop different solutions. Also, we continue to be very optimistic about our chances to break in through the expanding driver monitoring market. Our solution is very generic, and it’s both the driver and in-cabin monitoring solution. And we offer a very flexible and scalable platform here that also has very efficient algorithms to do this. With our customers today that we are talking to and we are in advanced stages of negotiations with some, they may have, in some cases we know for sure that they have in sort of the first wave here, chosen other DMS solutions, but they have now refocused, and they are very interested in our flexible and scalable platform.

And we feel that we have a good chance now to come into sort of a second wave here and offer our solution to both customers that have DMS solutions in their vehicles today, and those that are new, and planning also for further features in their vehicles based on cameras inside the cabin. That could be comfort features, could be safety features, and it could also be combination features, such as special control of the augmented reality head-up display system, or there could be identification systems for fleet management and control, alcometers. It could be also automatic adjustments of seats and rear view mirrors and so on based on the head positions of the drivers and so on. So a lot of different features are being contemplated and will surely be launched in the coming years.

And our platform is ideally suited for this type of scalable architecture and also continuous feature growth, and over the air updates. So, we believe that this is the most modern and the most flexible platform there is. And it’s also very, very efficient and require very little system resources, for its implementation. In the last two years, especially this year, we have increased levels of activity in our marketing and sales. And I repeat that we continue to adjust this, and we are not happy with our sales performance to date. Hence, we work more and more focused on marketing and demand creation. And one way is through different types of events, and only in the third quarter, we joined several events, automotive events, MedTech events and also some other events shown here.

Some, we participated ourselves and some with partners. And shown in the picture here is a solution from our French customer, MZ Technologie, that we co exhibited with at the Vendtra show in Munich and met with different types of kiosk manufacturers and vending machine manufacturers. And this touchless solution for displays and buttons was very well received there, as one example. And, upcoming events, in November, December, we have a few events, and then we are also working hard now to prepare and we will join the CES show in Las Vegas in January and also the big World NRF Show in New York for the retail industry. So if you are around, please join us and visit our booths at these events. Otherwise, stay tuned for also our online content sharing from the events.

And in general, please follow us. We have a lot of exciting things in the making, and we hope that we can announce some new business win in the near future. This takes me to the end of the presentation. And now, as promised, we will go into the Q&A session.