We have updated our Neonode research following its Q4 report and increased our valuation. The turnaround has turned credible, in our view, due to the new ownership. We see a limited downside as there are underlying values in Neonode's highly profitable base of recurring license revenue that could be unlocked if the business does not turn. We include a SOTP to highlight the stock market's excessively pessimistic view of the new module business.