If $Neonode chooses to go to court and the jury rules in their favor, and if they are awarded $2.00 per unit in licensing fees with 3x punitive damages applied, the total judgment could reach $9 billion.
If they receive $1.50 per unit and only 1x (no punitive damages), the total amount would be $2.25 billion.
If Neonode receives a gross settlement of $3 to $4 billion and 50% of that goes to Aequitas, which covers all legal costs, Neonode would retain $1.5 to $2 billion. After applying an estimated 21% U.S. corporate tax on Neonode’s share, the net proceeds would be approximately $1.185 billion in the case of a $3 billion settlement, and $1.58 billion in the case of a $4 billion settlement.
With 16.5 million shares outstanding, this would translate to a net value of approximately $71.82 to $95.76 per share. These figures reflect the after-tax value of Neonode’s portion of the settlement, assuming no other significant deductions or obligations.
If the final settlement ends up being between $1 billion and $2 billion, and 50% of that goes to Aequitas (who covers all legal costs), Neonode would retain between $500 million and $1 billion. After applying an estimated 21% corporate tax, the net amount to Neonode would be approximately $395 million to $790 million.
With 16.5 million shares outstanding, this would result in a net value of approximately $23.94 to $47.88 per share.
If the licensing value is estimated at $4 per unit, then a settlement in the range of $1 to $2 billion would be unreasonably low relative to the potential damages.
For example, if Samsung used the technology in 1.5 billion devices, the actual damages based on $4 per unit would amount to $6 billion. If a jury were to apply 3x punitive damage, which is common in cases of willful infringement,
the total judgment could reach $18 billion.
Neonode can clearly prove that its technology was used in a massive number of Samsung devices , likely in the billions. Given prior licensing history, Samsung cannot deny awareness, which makes the risk of willful infringement and triple damages very real. With court exposure potentially reaching tens of billions, a multi-billion dollar settlement is not only likely!
NEON's definitely in a position of strength, which the settlement should reflect -- though it's important to keep in mind a jury trial's often more art/human psychology than science, ie the award won't necessarily be formulaic but rather awarded at the jury's discretion. Also, there's the inevitable appeal process. A negotiated settlement needs to make sense for both parties, eg 'too high' and Samsung might as well take their chances in court.
The beautiful thing for (us) NEON s'holders is there are so few shs outstanding (~17mn) that any large numerator will yield a relatively high number per share
Thanks for posting this! I'm also a big fan of NEON and added to my position this week. Curious what you think of ParkerVision? Also been holding that one in hopes of a settlement in 2025
Thank you for the nice words, much appreciated! ParkerVision's def interesting, though I don't know the case well enough to give an informed opinion -- perhaps it could be the subject of a future write-up :) Meanwhile, might be worth checking out Burford Capital, particularly in light of yesterday's price action
If $Neonode chooses to go to court and the jury rules in their favor, and if they are awarded $2.00 per unit in licensing fees with 3x punitive damages applied, the total judgment could reach $9 billion.
If they receive $1.50 per unit and only 1x (no punitive damages), the total amount would be $2.25 billion.
If Neonode receives a gross settlement of $3 to $4 billion and 50% of that goes to Aequitas, which covers all legal costs, Neonode would retain $1.5 to $2 billion. After applying an estimated 21% U.S. corporate tax on Neonode’s share, the net proceeds would be approximately $1.185 billion in the case of a $3 billion settlement, and $1.58 billion in the case of a $4 billion settlement.
With 16.5 million shares outstanding, this would translate to a net value of approximately $71.82 to $95.76 per share. These figures reflect the after-tax value of Neonode’s portion of the settlement, assuming no other significant deductions or obligations.
If the final settlement ends up being between $1 billion and $2 billion, and 50% of that goes to Aequitas (who covers all legal costs), Neonode would retain between $500 million and $1 billion. After applying an estimated 21% corporate tax, the net amount to Neonode would be approximately $395 million to $790 million.
With 16.5 million shares outstanding, this would result in a net value of approximately $23.94 to $47.88 per share.
If the licensing value is estimated at $4 per unit, then a settlement in the range of $1 to $2 billion would be unreasonably low relative to the potential damages.
For example, if Samsung used the technology in 1.5 billion devices, the actual damages based on $4 per unit would amount to $6 billion. If a jury were to apply 3x punitive damage, which is common in cases of willful infringement,
the total judgment could reach $18 billion.
Neonode can clearly prove that its technology was used in a massive number of Samsung devices , likely in the billions. Given prior licensing history, Samsung cannot deny awareness, which makes the risk of willful infringement and triple damages very real. With court exposure potentially reaching tens of billions, a multi-billion dollar settlement is not only likely!
it’s the smart move for Samsung.
NEON's definitely in a position of strength, which the settlement should reflect -- though it's important to keep in mind a jury trial's often more art/human psychology than science, ie the award won't necessarily be formulaic but rather awarded at the jury's discretion. Also, there's the inevitable appeal process. A negotiated settlement needs to make sense for both parties, eg 'too high' and Samsung might as well take their chances in court.
The beautiful thing for (us) NEON s'holders is there are so few shs outstanding (~17mn) that any large numerator will yield a relatively high number per share
Thanks for posting this! I'm also a big fan of NEON and added to my position this week. Curious what you think of ParkerVision? Also been holding that one in hopes of a settlement in 2025
Thank you for the nice words, much appreciated! ParkerVision's def interesting, though I don't know the case well enough to give an informed opinion -- perhaps it could be the subject of a future write-up :) Meanwhile, might be worth checking out Burford Capital, particularly in light of yesterday's price action