Research Frontiers Reports Second Quarter 2018 Financial Results
August 13 2018 - 4:04PM
Management to Host Conference Call at 4:30
p.m.
Research Frontiers Inc. (Nasdaq: REFR) announced its financial
results for its second quarter ended June 30, 2018. Management will
host a conference call today at 4:30 p.m. Eastern Time to discuss
its financial and operating results as well as recent developments.
- Who: Joseph M. Harary, President & CEO,
Seth Van Voorhees, CFO
- Date/Time: August 13, 2018, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Tuesday, August 14, 2018
for 90 days at www.SmartGlass-IR.com
Key Second Quarter 2018 Comments:
1) The Company’s
fee income from licensing activities for the three months ended
June 30, 2018 was $324,853 as compared to $348,179 for the three
months ended June 30, 2017 representing a $23,326 decrease between
these two periods.
a. This
decrease in revenues was principally the result of the adoption of
ASC 606 revenue recognition standard beginning with the first
quarter of 2018, the adoption of which changed the timing of when
we recognize revenues for our contracts with customers. We would
have reported $365,048 of fee income, representing a $16,869
increase in the reported fee income for the period ending June 30,
2018 had we continued to use the accounting guidance used prior to
the adoption of ASC 606.
2) Fee income was
down $108,416 in the second quarter of 2018 as compared to the
prior first quarter of 2018 in all sectors other than the display
and architectural sectors.
a. Most of
this sequential period decline was due to the recognition of all
fee income associated with the Grant of Use performance obligation
under our license agreements in the first quarter of 2018.
3) The Company’s
fee income from licensing activities for the six months ended June
30, 2018 was $758,122 as compared to $741,295 for the six months
ended June 30, 2017 representing a $16,827 increase in fee income
between these two periods.
a. This
increase in revenues was principally the result of higher revenues
in the architectural and display sectors partial offset by slightly
lower revenues recorded in the aircraft and automotive sectors due
to seasonality. b. We would have
reported $753,697 of fee income, representing a $4.423 decrease in
the reported fee income for the period ending June 30, 2018 had we
continued to use the accounting guidance used prior to the adoption
of ASC 606.
4) Expenses
declined by $61,154, or (2.8%), for the 6-month period ending June
30, 2018 as compared to the same period in 2017. Expenses increased
by $57,953, or 6.9%, for the 3-month period ending June 30, 2018 as
compared to the same period in 2017.
5) Cash and cash
equivalents increased by $124,125 since the end of 2017 as a result
of a financing completed in February 2018.
6) On August 13,
2018, the Company announced that a group of investors led by a
licensee of the Company's SPD technology agreed to make a
$2,000,000 equity investment in the Company. With the addition of
proceeds from this investment, the Company expects as of this
filing to have sufficient working capital for at least the next 24
months of operations.
For more details, please see the Company’s
Quarterly Report on Form 10-Q which was filed today with the SEC,
the contents of which are incorporated by reference herein.
Research Frontiers (Nasdaq: REFR) is a publicly
traded technology company and the developer of patented SPD-Smart
light-control film technology which allows users to instantly,
precisely and uniformly control the shading of glass or plastic
products, either manually or automatically. Research Frontiers has
licensed its smart glass technology to over 40 companies that
include well known chemical, material science and glass companies.
Products using Research Frontiers’ smart glass technology are being
used in tens of thousands of cars, aircraft, yachts, trains, homes,
offices, museums and other buildings. For more information, please
visit our website at www.SmartGlass.com, and
on Facebook, Twitter, LinkedIn and YouTube.
Note: From time to time Research Frontiers may
issue forward-looking statements which involve risks and
uncertainties. This press release contains forward-looking
statements. Actual results could differ and are not guaranteed. Any
forward-looking statements should be considered accordingly.
"SPD-Smart" and "SPD-SmartGlass" are trademarks of Research
Frontiers Inc
RESEARCH FRONTIERS INCORPORATED Consolidated
Balance Sheets Unaudited
|
|
June 30, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,861,972 |
|
|
$ |
1,737,847 |
|
Royalties
receivable, net of reserves of $1,051,424 in 2018 and 2017 |
|
|
634,340 |
|
|
|
597,441 |
|
Prepaid
expenses and other current assets |
|
|
108,007 |
|
|
|
29,697 |
|
|
|
|
|
|
|
|
|
|
Total
current assets |
|
|
2,604,319 |
|
|
|
2,364,985 |
|
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
403,305 |
|
|
|
482,561 |
|
Deposits and other
assets |
|
|
33,567 |
|
|
|
33,567 |
|
Total
assets |
|
$ |
3,041,191 |
|
|
$ |
2,881,113 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
80,499 |
|
|
$ |
58,090 |
|
Accrued
expenses and other |
|
|
276,806 |
|
|
|
254,833 |
|
Deferred
revenue |
|
|
102,848 |
|
|
|
824 |
|
Total
current liabilities |
|
|
460,153 |
|
|
|
313,747 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
|
|
Common stock, par value
$0.0001 per share; authorized 100,000,000 shares, issued and
outstanding 25,432,739 in 2018 and 24,043,846 in 2017 |
|
|
2,543 |
|
|
|
2,404 |
|
Additional paid-in
capital |
|
|
112,946,959 |
|
|
|
111,627,789 |
|
Accumulated deficit |
|
|
(110,368,464 |
) |
|
|
(109,062,827 |
) |
Total
shareholders’ equity |
|
|
2,581,038 |
|
|
|
2,567,366 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
|
$ |
3,041,191 |
|
|
$ |
2,881,113 |
|
RESEARCH FRONTIERS INCORPORATED Consolidated
Statements of Operations Unaudited
|
|
Six months ended |
|
Three months ended |
|
|
June 30, |
|
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Fee income |
|
$ |
758,122 |
|
|
$ |
741,295 |
|
|
$ |
324,853 |
|
|
$ |
348,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
1,655,785 |
|
|
|
1,773,036 |
|
|
|
645,960 |
|
|
|
636,781 |
|
Research and
development |
|
|
469,440 |
|
|
|
413,343 |
|
|
|
250,824 |
|
|
|
202,050 |
|
Total
Expenses |
|
|
2,125,225 |
|
|
|
2,186,379 |
|
|
|
896,784 |
|
|
|
838,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
(1,367,103 |
) |
|
|
(1,445,084 |
) |
|
|
(571,931 |
) |
|
|
(490,652 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income |
|
|
3,445 |
|
|
|
2,717 |
|
|
|
2,040 |
|
|
|
840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
(1,363,658 |
) |
|
|
(1,442,367 |
) |
|
|
(569,891 |
) |
|
|
(489,812 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share |
|
$ |
(0.05 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
25,064,414 |
|
|
|
24,043,846 |
|
|
|
25,432,739 |
|
|
|
24,043,846 |
|
RESEARCH FRONTIERS INCORPORATED Consolidated
Statements of Cash Flows Unaudited
|
|
Six months ended |
|
|
June 30, |
|
|
2018 |
|
2017 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,363,658 |
) |
|
$ |
(1,442,367 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
90,343 |
|
|
|
87,789 |
|
Stock
based compensation |
|
|
69,309 |
|
|
|
- |
|
Change in
assets and liabilities: |
|
|
|
|
|
|
|
|
Royalty
receivables |
|
|
21,122 |
|
|
|
325,638 |
|
Prepaid
expenses and other current assets |
|
|
(78,310 |
) |
|
|
191,899 |
|
Accounts
payable and accrued expenses |
|
|
44,382 |
|
|
|
1,046 |
|
Deferred
revenue |
|
|
102,024 |
|
|
|
32,500 |
|
Net cash
used in operating activities |
|
|
(1,114,788 |
) |
|
|
(803,495 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases
of fixed assets |
|
|
(11,087 |
) |
|
|
(5,822 |
) |
Proceeds
from sale of investment |
|
|
- |
|
|
|
1,523,333 |
|
Net cash
provided by (used in) investing activities |
|
|
(11,087 |
) |
|
|
1,517,511 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
for issuance of common stock |
|
|
1,250,000 |
|
|
|
- |
|
Net cash
provided by financing activities |
|
|
1,250,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents |
|
|
124,125 |
|
|
|
714,016 |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
|
|
1,737,847 |
|
|
|
1,691,603 |
|
Cash and cash
equivalents at end of period |
|
$ |
1,861,972 |
|
|
$ |
2,405,619 |
|
CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com
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