Hello, everyone. Thank you for standing by, and welcome to Neonode’s Third Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks there will be a question-and-answer session with the company’s covering analysts. [Operator Instructions] At this time for opening remarks and introduction, I would like to turn the call over to David Brunton, Neonode’s Head of Corporate Investor Relations. David please go ahead and start the conference.

Welcome and thank you for joining us. On today’s call, we will review our third quarter 2020 financial results and provide a corporate update. Our update will include details of customer activities, technology developments and other items of interest. Before turning the call over to our CEO, Dr. Urban Forssell; and CFO, Maria Ek, I would like to make the following remarks concerning forward-looking statements. All statements in this conference call other than historical facts are forward-looking statements the words anticipate, believe, estimate, expect, tend, will, guide, confidence, targets, projects, and other similar expressions typically are used to identify forward-looking statements. These forward-looking statements do not guarantee the future performance that may involve or be subject to risks, uncertainties and other factors that may affect Neonode’s business financial position and other operating results which include but are not limited to the risk factors and other qualifications contained in Neonode’s annual report on 10-K quarterly reports on 10-Q, and other reports filed by Neonode with the SEC to which your attention is directed. Therefore, actual outcomes and results may differ materially from what is expected or implied by these forward-looking statements. Neonode expressly disclaims any intent or obligation to update these forward-looking statements. At this time, it is my pleasure to turn the call over to Urban. Urban, please go ahead.

Thank you, Dave, and welcome to this call. I will review with you today, some strategy and business updates. And after this, I will have turn over to Maria for some financial details about this third quarter. To start off the strategy presentation, I want to reiterate that is the beginning of this year have organized our business into three separate business areas. And we call them HMI products, HMI solutions and remote sensing solutions. And in this call, I will talk a little bit about each one of them and give you some insights to both the strategy and the current business activities that we have. HMI stands for Human Machine Interface. And those of you that have followed me or know for the last 10 or 12 years or so know that this has been the key focus for our business leading up to 2020. And it still continues to be very, very important. And that's why HMI products and HMI solutions both are focusing on these areas. In HMI products, we sell our standardized sensor modules or contactless touch, touch and gesture sensing the focus there is on customers and the elevator and interactive Kiosk segments. HMI solutions is the separate business where we focus on customized engineering solutions made for touch and gesture sensing at this point. And the focus is on customers in the military and avionics and industrial segments. Remote sensing solutions is a software business for us, where we focus on driver and in cabin monitoring. And in terms of customers, we are targeting OEM and Tier 1 distance suppliers in the automotive space in Europe, in North America and Asia respectively. And then this is an introduction, I will also reiterate that Neonode works with the two main technology platforms one of…

Thanks Urban. And you can find our third quarter earnings release and 10-Q available for available for download from the investors section of our website at neonode.com. So I'd like to start with a summary of the quarters. Revenues are up by $0.2 million compared to the same quarter 2019. This is driven by sales sensor modules were licensed for almost flat 15 years. Our operating expense are higher plan for the quarter, $3.0 million compared to $2.4 million in the same quarter 2019. However, on a performance basis, removing onetime costs, our operating expenses for the third quarter 2020 was equal cost 2019. Due to the above our operating loss was up by $3.6 million compared to the same quarter 2019. We have net revenues of $1.5 million for the third quarter of 2020 which is an increase of 14.1% from the competitive quarter last year, and almost a double compared to the second quarter this year. Revenues from our solutions business consists almost exclusively our license fees and were $1.2 million during the third quarter 2020 as well as 2019. However, revenues related to automotive have increased from $0.4 million to $0.5 million, while revenues on consumer electronics decrease from $0.8 million to $0.7 million. We see general lower license revenues due to slower sales in the global markets related to the COVID-19 pandemic. So the increase in automotive is a positive development. It's relates to customer project that was completed a couple of years ago that went into production in 2020 and is expected to be in production at least five years. In the third quarter of 2020, our customers to license our technology shift 1.7 million devices with an average life of field $0.69 and total to-date more than 77 million devices with Neonode technology has…

Thank you Maria. And in closing this presentation, I would love to highlight a few points here. First of all our zForce technology, which Neonode has been developing from mid-2000 and on and that is very well patent protected by us given that enabling technology. Ideally it's positioned to solve for our lifestyle shifts to contactless touch solutions brought on by COVID-19. In comparison to other companies that now try to exploit the surge in demand for contactless solutions, actually we have existing improvement and ready technology. We are ramping up our production. You're seeing the increase in demand that you are seeing at. We see that, and we still believe that there's an enormous market opportunity for this both in new retrofit equipment. We are focusing on the two very large segments, interactive kiosks and elevators. We have a global reach and we are talking to customers both North America, Europe and Asia. And we'll continue to do so in the coming quarters and years. So, this is a very exciting time for us and we continue to build orders for these products. At the same time, we are also pleased to see that we have a significant interest for our zForce and multiple sensing technologies from customers in the avionics and industrial control system industries and automotive system, automotive industry respectively. So, in sum, we think that we have a good play and a good future in all three business areas. We also have by the private placements, we completed in August adequate cash resources to grow and accelerate. And the focus for us now and becoming 12 to 18 months or so is clearly on execution. On the growing stage and growing the top line and by this we are expecting also to be able to present you in coming calls and improved bottom line or improve earnings. By this, we have come to the end of for our presentation and we will now open up for questions from our analysts. And I will ask you Dave dumped into moderators. Thank you.

Okay. So, Christy you want to open it up for questions.

[Operator Instructions] You have a question from Viktor Westman of Redeye.

You've been doing quite a rebuild of the organization around them. And I just wanted to ask here, how long time you think it will take before we see some effects from this transformation and the changes and what are the first effects we will see?

Yes, we are actually rebuilding Neonode from outside in and inside out. So we are doing quite massive overhaul. But of course we do it tried to do it in a sensible way and step by step. So during the second quarter, two strong additions to our team represented Mr. Johan Swartz and Mr. Jonas Waern and they head up our business units, HMI products and HMI solutions respectively. They have really made, starting to make an impact on our business and our strategy and what I present here. And also they are working to expand our own sales force and the pattern network that I mentioned. So here we see examples of results already. Yes, the other week, Mr. Atsushi Ishii joined us a new VP of Engineering. It's too early for him to make a strong impact on what he present here obviously. But I expect that he together with Johan and Jonas and as the rest of our team here will have a stronger and stronger and more clear and more clear impact on our business and our strategy. So we are quite excited about these new additions. Recently, we also, I can, I mentioned, we hired a two senior sales persons one in the U.S. that will focused on the military and avionics markets, and one in Europe, that is focused more on the industrial and elevator segments. Both of them have more than 20 years in sales and sales management positions in very, very relevant industries and actually working for competitors of ours. So this is a step by step and gradually are regaling the team and strengthening the team. So I think we will continue. On my personal agenda, I have some more things I want to do before I say that we are done. On the other hand, in companies like this, you are never done. So it will be more of a continuous development as we go forward. And we always try to be agile, and we are prepared to change our plans and adjust. And what we discussed with the team here last week was one example is that in January, February, I could not see that the COVID-19 pandemic would hit us so hard, and that we will see this increase in demand for contactless touch, but I think we have responded well and adjusted in a very good agile way. And this is the approach that we will take regarding our organization and recruitment and how we use our resources going forward.

And then, you mentioned military market there. And it seems military, the military market is moving really, really fast compared to automotive. So can you say is, I mean in other words really slow, can you say something about it's possible to speed up the process arrived quicker after substantial sales in this segment?

It's right that we have -- we still work with automotive customer, we work now also try to target military customers. And we also have other customers that work in industries where typically, the sales cycles are quite long, and the development cycles are also long. And we have been quite open and clear about this, we think from actually beginning this year. That's the transformation that we’re trying to achieve in Neonode will take some time, maybe a couple years. But of course, we try to shorten this time and also use say -- our scalable platforms and reuse a lot of the designs are developments. And this is to help our customers to have a shorter time to market. And this is a, I think of valuing our offering to these customers that we can actually speed up things compared to their normal development. And this is thanks to our good technology platforms and also our know how from 15 years working on touch gesture sensing applications for printers, e-readers, automotive and medical for instance.

And I think military and avionics is quite clear. But you what you mean, but what do you refer to in the industrial segments? Is that the dirty very rugged in the sales? Can you give some examples on the sweet spot here?

Yes, I think there are actually two sweet spots, but in these but in these rugged industrial applications and that could be in sort of, if you have actually factory environments, it could be production hall or something where you have -- you can have both moisture in terms of water oil in the air. You could have a dust. You can have also outdoor applications that should work in the wintertime, and hot and cold and similar. So rugged is what we have in mind in the first place. But speaking about synergies between our HMI products, this is HMI solutions. I think also in kiosks and elevators, what we will see is that especially large OEM customers in those segments, they will, I think to a larger and larger degree, ask us for more bespoke solutions that are specific to and adapted to their products. And here we are still Neonode. And we will definitely try to capitalize on such opportunities as well in HMI solutions. So there are, these two sweet spots, if you would say mix up.

And can you give us a short update on the pilot for the fixed retailers with the big self service kiosk manufacturer. They had a quite an aggressive rollout plan. If I recall, you can say something about that?

Yes or no. Our customer in this case, it is a leading player in the interactive kiosk market. We have a worldwide reach and a very large organization. They are quite committed still, they are pushing ahead with their own quite aggressive plans. We know that they have right now, it seems very positive resonance from a big retail chain operating in South America. They are still working with a few chains in North America and in different parts of Asia-Pacific. But I don't have any more substantial news that I can share at this point. But it's still looking promising and solutions are -- have passed some different internal approval stages at our customers. So we are quite optimistic about this, how it will play out. But I can say personally, I think that the growth anyway will be like, step by step or this is a very big company that we are dealing with. And they are many customers, but of course each customer will make their own decision. And they will come one by one I expect. So I don't expect like 1 of December, for instance, that it will come an explosion of 15 new programs with this customization will come one by one over the next quarters. But we are still optimistic and it's looking good. And we have encouraging feedback from our customers, but they also think that this will fly in a very good way going forward.

Last question is if I may. On the competition -- on the competing technologies for elevators and kiosks. What are the typical alternative technologies to be used there? You see a lot of radar or time of flight sensors in the market. So it's something else.

I would say personally for a kiosk kiosks and ATMs. I personally regard mobile phone apps as one serious competitor in terms of an alternative technology or alternative way of solving this problem. But it will be, it's a fragmented market so some will use capacitive sensors and boost up power in those so that they will react actually a few millimeters out. But compared to capacitive solution, we think actually our solution is much more straightforward and better. But there are also some companies doing like with cameras, and there can be more 3D gesture sensing. And I'm sure that also applications that radars are being used, plus voice controls. Actually, if you look at this whole market, there's everything from mobile phone apps, to camera-based gesture sensing, voice control, and then we work in a portion where infrared is more directly competing pick-up solutions. Overall, I think we have a very strong compelling offer is simple intuitive. And it doesn't interfere with if there is an underlying display or a keypad. So it works perfectly for retrofits and very easy to use. And it can also be integrated very nicely new product. In elevators. I know some elevator OEMs are promoting their own mobile phone apps. But if you think of it, how intuitive is it if I'm going into an office building or apartment building, that I have to pull up my mobile phone, and in this building, they happen to have like a OTIS, elevator as a download the OTIS app. That's annoying, we have a much more straightforward solution. And it works perfectly with the traditional type of control panels and touch buttons that you have in elevators. And for instance, the very nice solution developed by FineTech and some other companies that we work with in North America. They look magnificent. They look actually very stylish, and they work excellent. So they're in elevators as a mobile phone apps and other advanced solutions, they are not so intuitive and easy to use as our so we have a very strong offering there.

Okay, thank you, sir. And thank you everyone for joining. We will publish the slide deck from this presentation on our website later today on neonode.com. And I will also mention here in closing that in the slide deck, we have an appendix with some reference to market data that we have used to build up the diagrams and the pie charts that we showed during this presentation. So if you're interested, look at neonode.com later today, and you can see that slide deck from this presentation. Thank you very much. And join us again for our fourth quarter call beginning next year. Thank you.

Thank you. This does conclude today's conference call. You may now disconnect.