NEON

Do not be fooled by the headline: NEON's FY2025 net income of $8.49M (net margin 411.9%) and operating income of $7.37M (operating margin 357.5%) are entirely manufactured by a one-time item. The MD&A is explicit — a $19,389K 'Gain from patent assignment' (940% of revenue), less a $3,878K broker fee, is the whole story. Strip it out and operations lost roughly $8M: revenue of $2.06M against $10.18M of operating expenses (R&D alone is 183% of revenue, G&A 200%). This is a chronically unprofitable business — net losses every year FY2021–FY2024 and a -$216M accumulated deficit — that just sold its intellectual property. Operating cash flow was -$10.3M, so the company is burning cash fast, not generating it.

The core business is shrinking and narrowing. Total revenue fell 33.7% YoY, with license fees down 32.2% and NRE down 43.0%, weakness across both automotive and IT/industrial. Management put the zForce optical-sensing platform into 'maintenance mode' in September 2025 — no new customers — betting the future on the unproven MultiSensing machine-perception platform aimed mainly at automotive. There is no revenue traction shown for that pivot yet; it is a story, not a number.