Neonode expects $15-20 million from Samsung patent settlement

Neonode Inc. (NASDAQ: NEON) announced it expects to receive approximately $15 million to $20 million in net proceeds from a patent lawsuit settlement between Neonode Smartphone LLC and Samsung Electronics Co. Ltd.

The settlement stems from a lawsuit filed June 8, 2020, in the United States District Court for the Western District of Texas. Neonode Smartphone LLC, a subsidiary of Aequitas Technologies LLC, sued Samsung alleging infringement of patents previously assigned by Neonode to Aequitas in 2019.

Under the terms of the Assignment Agreement dated May 6, 2019, Neonode is entitled to 50% of any net proceeds from the settlement. The court dismissed the case September 2, 2025, following the settlement between the parties.

The expected proceeds are subject to deductions for brokerage fees, legal fees, taxes and other expenses. Neonode stated it will continue to evaluate tax implications and other financial considerations that may affect the final amount.

Neonode was not a party to the lawsuit but assigned the patent portfolio to Aequitas, an unrelated third party, as part of a licensing and monetization program. The company's board of directors has not yet decided how to use the settlement proceeds.

A separate patent infringement case brought by Aequitas Sub against Apple Inc. remains pending in the United States District Court for the Northern District of California.

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