Research Frontiers Reports Fourth Quarter and Full Year 2018 Financial Results - This press release is being re-issued to cor...
March 14 2019 - 6:37PM
Management to Host Conference Call at 4:30
p.m.
Research Frontiers Inc. (Nasdaq: REFR) announced its financial
results for its fourth quarter and full year ended December 31,
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: Thursday, March 14, 2019 at 4:30PM
ET
- Dial-in Information: 1-888-334-5785
- Questions: Email
to Questions@SmartGlass.com
- Replay: Available on Friday, March 15, 2019
for 90 days at www.SmartGlass-IR.com
Key Comments:
- In October 2018, Gauzy Ltd., a licensee of Research Frontiers,
announced that it will be producing SPD-Smart light control film
for the entire SPD-SmartGlass industry.
- Gauzy announced that its Tel-Aviv film production line has a
capacity to produce up to 364 thousand square meters of film per
year per shift, and that its initial production will be 1.2 meters
wide, and in 2019 they will be expanding this to 1.5 meters wide
rolls and in 2020 to 1.8 meters wide rolls.
- In February 2019, Gauzy Ltd. announced its second production
facility in Stuttgart, Germany to produce SPD-Smart light control
film for the entire SPD-SmartGlass industry.
- This state-of-the-art facility with specially-designed coating
and curing areas that will give Gauzy the capacity to coat over one
million square meters of SPD film per year. Gauzy expects the new
facility to be in production by the summer of 2019.
- The Company’s SPD-SmartGlass technology has been used in the
roofs of at least four new car models over the past four
months.
- The Company’s fee income from licensing activities for the year
ended December 31, 2018 was $1,488,642 as compared to $1,509,070
for the year ended December 31, 2017 representing a $20,428
decrease between these two periods.
- This decrease in revenues was principally the result of the
adoption of ASC 606 which is a different revenue recognition
standard which applies to revenues reported beginning with the
first quarter of 2018.
- The Company would have reported higher fee income of
$1,553,468, representing a $64,826 increase in the reported fee
income for the year ending December 31, 2018 had it continued to
use the accounting guidance used prior to the adoption of ASC
606.
- Expenses decreased by $20,820 for the year ended December 31,
2018 to $3,906,861 from $3,927,681 for the year ended December 31,
2017. This represents the fourth consecutive year that expenses at
the Company have decreased and the fifth consecutive year of lower
operating losses for the Company compared to the prior year.
- The Company’s net loss was $2,686,128 ($0.10 per common share)
for the year ended December 31, 2018 as compared to $2,413,859
($0.10 per common share) for the year ended December 31, 2017.
- The Company raised approximately $3.3 million from the
issuances of common stock and warrants and exercise of options and
warrants in 2018.
- The Company has also received an additional $1.1 million from
the early exercise of warrants to date during the first quarter of
2019.
- The Company believes that its current cash and cash equivalents
will fund its operations at least through the end of 2020.
For more details, please see the Company’s
Quarterly Report on Form 10-K 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.
CONTACT:Seth L. Van VoorheesChief Financial
OfficerResearch Frontiers
Inc.+1-516-364-1902Info@SmartGlass.com
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 INCORPORATEDConsolidated
Balance SheetsDecember 31, 2018 and 2017
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
2,969,416 |
|
|
$ |
1,737,847 |
|
Royalties
receivable, net of reserves of $1,094,774 in 2018 and $1,051,424 in
2017 |
|
|
689,677 |
|
|
|
597,441 |
|
Prepaid
expenses and other current assets |
|
|
52,729 |
|
|
|
29,697 |
|
|
|
|
|
|
|
|
|
|
Total
current assets |
|
|
3,711,822 |
|
|
|
2,364,985 |
|
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
313,177 |
|
|
|
482,561 |
|
Deposits and other
assets |
|
|
33,567 |
|
|
|
33,567 |
|
Total
assets |
|
$ |
4,058,566 |
|
|
$ |
2,881,113 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
133,486 |
|
|
$ |
58,090 |
|
Accrued
expenses and other |
|
|
273,606 |
|
|
|
254,833 |
|
Deferred
revenue |
|
|
50,570 |
|
|
|
824 |
|
Total
current liabilities |
|
|
457,662 |
|
|
|
313,747 |
|
|
|
|
|
|
|
|
|
|
Warrant
liability |
|
|
501,414 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
|
|
Common
stock, par value $0.0001 per share; authorized 100,000,000 shares,
issued and outstanding 27,665,211 in 2018 and 24,043,846 in
2017 |
|
|
2,767 |
|
|
|
2,404 |
|
Additional paid-in capital |
|
|
114,787,657 |
|
|
|
111,627,789 |
|
Accumulated deficit |
|
|
(111,690,934 |
) |
|
|
(109,062,827 |
) |
Total
shareholders’ equity |
|
|
3,099,490 |
|
|
|
2,567,366 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
|
$ |
4,058,566 |
|
|
$ |
2,881,113 |
|
RESEARCH FRONTIERS INCORPORATEDConsolidated
Statements of OperationsYears ended December 31, 2018, 2017 and
2016
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
Fee income |
|
$ |
1,488,642 |
|
|
$ |
1,509,070 |
|
|
$ |
1,236,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
3,043,460 |
|
|
|
3,127,979 |
|
|
|
4,086,408 |
|
Research and
development |
|
|
863,401 |
|
|
|
799,702 |
|
|
|
1,417,634 |
|
Total
Expenses |
|
|
3,906,861 |
|
|
|
3,927,681 |
|
|
|
5,504,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
(2,418,219 |
) |
|
|
(2,418,611 |
) |
|
|
(4,267,945 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant market
adjustment |
|
|
(278,044 |
) |
|
|
- |
|
|
|
- |
|
Net investment
income |
|
|
10,135 |
|
|
|
4,752 |
|
|
|
29,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
(2,686,128 |
) |
|
|
(2,413,859 |
) |
|
|
(4,238,410 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share |
|
$ |
(0.10 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
25,956,232 |
|
|
|
24,043,846 |
|
|
|
24,043,846 |
|
RESEARCH FRONTIERS INCORPORATEDConsolidated
Statements of Shareholders’ EquityYears ended December 31, 2018,
2017 and 2016
|
|
Common Stock |
|
|
Additional Paid-in |
|
|
Accumulated |
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31,
2015 |
|
|
24,043,846 |
|
|
$ |
2,404 |
|
|
$ |
111,483,959 |
|
|
$ |
(102,410,558 |
) |
|
$ |
9,075,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
|
|
- |
|
|
|
- |
|
|
|
67,531 |
|
|
|
- |
|
|
|
67,531 |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,238,410 |
) |
|
|
(4,238,410 |
) |
Balance, December 31,
2016 |
|
|
24,043,846 |
|
|
|
2,404 |
|
|
|
111,551,490 |
|
|
|
(106,648,968 |
) |
|
|
4,904,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
|
|
- |
|
|
|
- |
|
|
|
76,299 |
|
|
|
- |
|
|
|
76,299 |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,413,859 |
) |
|
|
(2,413,859 |
) |
Balance, December 31,
2017 |
|
|
24,043,846 |
|
|
|
2,404 |
|
|
|
111,627,789 |
|
|
|
(109,062,827 |
) |
|
|
2,567,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adoption of ASC
606 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
58,021 |
|
|
|
58,021 |
|
Issuance of capital
stock |
|
|
3,562,809 |
|
|
|
357 |
|
|
|
3,026,273 |
|
|
|
- |
|
|
|
3,026,630 |
|
Exercise of options and
warrants |
|
|
58,556 |
|
|
|
6 |
|
|
|
64,286 |
|
|
|
- |
|
|
|
64,292 |
|
Share-based
compensation |
|
|
- |
|
|
|
- |
|
|
|
69,309 |
|
|
|
- |
|
|
|
69,309 |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,686,128 |
) |
|
|
(2,686,128 |
) |
Balance, December 31,
2018 |
|
|
27,665,211 |
|
|
$ |
2,767 |
|
|
$ |
114,787,657 |
|
|
$ |
(111,690,934 |
) |
|
$ |
3,099,490 |
|
RESEARCH FRONTIERS INCORPORATEDConsolidated
Statements of Cash FlowsYears ended December 31, 2018, 2017 and
2016
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,686,128 |
) |
|
$ |
(2,413,859 |
) |
|
$ |
(4,238,410 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
181,047 |
|
|
|
175,643 |
|
|
|
188,501 |
|
Warrant
market adjustment |
|
|
278,044 |
|
|
|
- |
|
|
|
- |
|
Share
based compensation |
|
|
69,309 |
|
|
|
76,299 |
|
|
|
67,531 |
|
Loss on
sale of fixed asset |
|
|
- |
|
|
|
- |
|
|
|
1,775 |
|
Bad
debts |
|
|
43,350 |
|
|
|
56,415 |
|
|
|
480,563 |
|
Change in
assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Royalties
receivable |
|
|
(77,565 |
) |
|
|
463,290 |
|
|
|
(283,035 |
) |
Prepaid
expenses and other current assets |
|
|
(23,032 |
) |
|
|
227,195 |
|
|
|
(123,427 |
) |
Accounts
payable and accrued expenses |
|
|
94,169 |
|
|
|
(56,347 |
) |
|
|
(98,941 |
) |
Deferred
revenue |
|
|
49,746 |
|
|
|
824 |
|
|
|
- |
|
Net cash
used in operating activities |
|
|
(2,071,060 |
) |
|
|
(1,470,540 |
) |
|
|
(4,005,443 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
of fixed assets |
|
|
(11,663 |
) |
|
|
(6,549 |
) |
|
|
(11,715 |
) |
Proceeds
from sale of fixed asset |
|
|
- |
|
|
|
- |
|
|
|
6,000 |
|
Proceeds
from sale of investment |
|
|
- |
|
|
|
1,523,333 |
|
|
|
(9,549 |
) |
Net cash
(used in) provided by investing activities |
|
|
(11,663 |
) |
|
|
1,516,784 |
|
|
|
(15,264 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
proceeds from issuances of common stock and warrants and exercise
of options and warrants |
|
|
3,314,292 |
|
|
|
- |
|
|
|
- |
|
Net cash
(used in) provided by financing activities |
|
|
3,314,292 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
|
1,231,569 |
|
|
|
46,244 |
|
|
|
(4,020,707 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year |
|
|
1,737,847 |
|
|
|
1,691,603 |
|
|
|
5,712,310 |
|
Cash and cash
equivalents at end of year |
|
$ |
2,969,416 |
|
|
$ |
1,737,847 |
|
|
$ |
1,691,603 |
|
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