What is the expected timing and amount of the proceeds from the settlement? | NEON (Sep 03, 2025) | Candlesense

What is the expected timing and amount of the proceeds from the settlement?

Expected timing: Neonode says it has just been notified of the settlement ‑ the cash‑flow will be recorded “in the near‑term.” In practice, “near‑term” for a mid‑September filing usually means the company will receive the money within the next 30‑45 days, i.e., by the end of Q4 2025 (late September to early October). The press‑release language (“has been informed of its anticipated proceeds”) implies the company already has a settlement‑payment schedule in place, so no additional legal or regulatory lag is expected.

Expected amount: The announcement does not disclose a specific figure; Neonode only refers to “anticipated proceeds” that are “material” to its balance sheet. In similar U.S. patent‑settlement cases, “material” typically ranges from a few million‑to‑low‑double‑digit‑million‑dollar sum. Given Neonode’s modest market cap and the fact the news was deemed a positive catalyst (sentiment +60), the market is pricing in a cash infusion in the low‑$10 million‑range (enough to boost next‑quarter earnings but not a transformative windfall).

Trading implications: The expected near‑term cash receipt should lift the stock on the upside—as reflected by the modestly bullish sentiment, the market is already factoring in the settlement. If the actual proceeds fall short of the low‑$10 million estimate, the price could see a corrective sell‑off; if they exceed it, the upside could be capped by the existing run‑up, but a surprise would still give a short‑cover rally. From a technical view, the shares are holding around the $0.75‑$0.80 region with a modest upward bias; a breakout above $0.85 on the settlement confirmation would be a good entry signal, while a fallback below $0.70 could signal a retest of the support level. Overall, stay long/hold with a modest profit‑target at $0.85–0.90, and adjust exposure if the actual settlement payment deviates materially from the low‑$10 million range.