Neonode expects to receive proceeds of $15M-$20M from patent settlement

Neonode (NEON) has been informed of its anticipated proceeds from a settlement of the lawsuit between Neonode Smartphone – Aequitas Sub, a subsidiary of Aequitas Technologies , an unrelated third party – and Samsung Electronics pertaining to the alleged infringement of certain patents assigned by Neonode to Aequitas Technologies in 2019. While Neonode was not a party to the lawsuit, the company is entitled to 50% of any net proceeds from the settlement pursuant to the Assignment Agreement, dated May 6, 2019, between the company and Aequitas. Subject to assessment by third parties, Neonode expects to receive net proceeds of approximately $15M-$20M after deducting a brokerage fee payable by the company in connection with the original assignment to Aequitas and estimated legal fees, taxes and other expenses. As of September 3, no decision has been made by Neonode’s Board on the expected use of proceeds from the settlement.