Neonode, Inc. (OTC:NEON) started to climb up last week. On Friday, the progressive mode exceeded 30% and the traded volume NEON_chart.pngof NEON jumped over 3 million shares.

Is this a new bullish trend for the stock, or a temporary high move? It is just a matter of time to be seen. Though, there is a certain reason for the sudden high trade. On Jan 20, Neonode reported that it has entered into a multi-year technology license agreement with another global retail electronics company to incorporate NEON’s touch screen solution into its family of products. The announcement states the contract is considered as the largest technology license agreement Neonode has ever signed, however, the customer’s name and the product category were not revealed due to privacy issues. The news about the agreement was first published at the beginning of this month, though it was re-announced over the past week. Apparently, it influenced the stock movement and NEON was up again.

Neonode Inc. offers optical touch screen solutions, software licenses and engineering design services for hand-held and small to mid-size devices. Apart from the latest news, NEON has not provided any updates on its activities since mid-October 2010, excluding the company’s Amended and Restated Certificate of Incorporation for increasing the number of authorized shares from 700M to 850M and for increasing the number of authorized shares of common stock from 698M to 848M.[BANNER]

Neonode_logo.pngAccording to the quarterly report of Neonode, by the end of Sep. 2010 the company’s total assets were 27 times lower than its liabilities, while the accumulated deficit exceeded $105 million. Besides, the stockholders’ deficit of NEON pointed over $16 thousand, not including the net loss and the diluted loss of $0.02 per share. Neonode stated that since inception  it has incurred net operating losses and negative operating cash flows. The team claimed that due to the accumulated deficit and working capital deficit the company’s operations are subject to certain risks and uncertainties. Despite the fact that NEON has received additional $2.3 million from a warrant repricing transaction, there is no assurance it will be successful in obtaining sufficient funding.

Based on this fact, the management of Neonode states that the company may not be able to continue operations and its future remains unknown.