Research Frontiers Reports Third Quarter 2017 Financial Results
November 02 2017 - 4:01PM
Management to Host Conference Call at 4:30
p.m.
Research Frontiers Inc. (Nasdaq:REFR) announced its financial
results for its third quarter ended September 30, 2017. 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, including its recent license agreement with
Israel-based material science company Gauzy Ltd. to develop,
produce and sell products and components using Research Frontiers’
patented SPD-Smart light-control technology.
- Who: Joseph M. Harary, President & CEO,
Seth Van Voorhees, CFO
- Date/Time: November 2, 2017, 4:30 PM ET
- Dial-in Information: 1-412-717-9591
- Replay: Available on Friday, November 3, 2017
for 90 days at www.SmartGlass-IR.com
Key Third Quarter 2017 Comments:
- Fee income increased by $271,294, or 28.3%, for the 9-month
period ending September 30, 2017 as compared to the same period in
2016. Fee income increased by $183,564, or 60.2%, for the 3-month
period ending September 30, 2017 as compared to the same period in
2016. The increase in fee income from both the 3-month and 9-month
periods was principally the result of higher revenues from
licensees in the aircraft, architectural, automotive and marine
sectors as well as revenue from a new licensee focused on the
transparent display sector.
- Expenses declined by $857,756, or -22.4%, for the 9-month
period ending September 30, 2017 as compared to the same period in
2016. Expenses for the 3-month period ending September 30, 2017
were $78,248, or -9.0%, lower for the 3-month period ending
September 30, 2017 as compared to the same period in 2016.
- On October 11, 2017, Research Frontiers and Gauzy Ltd.
announced that Gauzy has acquired a non-exclusive license from
Research Frontiers to develop, produce and sell products and
components using Research Frontiers’ patented SPD-Smart
light-control technology.
Gauzy
noted the rapid expansion of their business based upon its constant
focus on bringing the best-performing and most innovative
technology-based products to its customers, and that the
introduction of SPD-Smart light-control technology to its product
line will help us to continue and accelerate this rapid growth.
Gauzy’s CEO noted the clear and significant synergies specifically
between Gauzy’s LCG® (Liquid Crystal Glass) technology and Research
Frontiers’ SPD-SmartGlass light control technology, and the general
synergies between the two companies and their worldwide
businesses. Research
Frontiers noted the work that they have been doing with Gauzy over
the past ten months, and that its results-based culture, and
Gauzy’s established and growing network of over 50 glass
fabricators worldwide brings additional synergies, infrastructure,
and growth opportunities. Because these companies have already been
trained and certified in working with Gauzy’s PDLC film product,
they should have the ability and experience to quickly incorporate
SPD-Smart technology, which is also a film-based technology with
similar handling, lamination, and other fabrication
characteristics.
Research Frontiers is the developer of SPD-Smart light-control
technology which allows users to instantly, precisely and uniformly
control the shading of glass or plastic, either manually or
automatically. Research Frontiers has built an infrastructure of
over 40 licensed companies that collectively are capable of serving
the growing global demand for smart glass products in automobiles,
homes, buildings, museums, aircraft and boats. 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.“LCG®” is a trademark of Gauzy Ltd.
RESEARCH FRONTIERS INCORPORATED Consolidated
Balance Sheets Unaudited
|
|
September 30, 2017 |
|
|
December 31, 2016 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
2,188,054 |
|
|
$ |
1,691,603 |
|
Short-term investments |
|
|
- |
|
|
|
1,523,333 |
|
Royalty
receivables, net of reserves of $1,006,424 in 2017 and $1,110,020
in 2016 |
|
|
782,191 |
|
|
|
1,117,146 |
|
Prepaid
expenses and other current assets |
|
|
51,067 |
|
|
|
256,892 |
|
Total
current assets |
|
|
3,021,312 |
|
|
|
4,588,974 |
|
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
526,293 |
|
|
|
651,655 |
|
Deposits and other
assets |
|
|
33,567 |
|
|
|
33,567 |
|
Total
assets |
|
$ |
3,581,172 |
|
|
$ |
5,274,196 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
104,448 |
|
|
$ |
29,932 |
|
Accrued
expenses and other |
|
|
270,637 |
|
|
|
339,338 |
|
Deferred
revenue |
|
|
46,666 |
|
|
|
- |
|
Total
current liabilities |
|
|
421,751 |
|
|
|
369,270 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
|
|
Common
stock, par value $0.0001 per share; authorized 100,000,000 shares,
issued and outstanding 24,043,846 shares in 2017 and 2016 |
|
|
2,404 |
|
|
|
2,404 |
|
Additional paid-in capital |
|
|
111,551,490 |
|
|
|
111,551,490 |
|
Accumulated deficit |
|
|
(108,394,473 |
) |
|
|
(106,648,968 |
) |
Total
shareholders’ equity |
|
|
3,159,421 |
|
|
|
4,904,926 |
|
Total
liabilities and shareholders’ equity |
|
$ |
3,581,172 |
|
|
$ |
5,274,196 |
|
RESEARCH FRONTIERS INCORPORATED Consolidated
Statements of Operations Unaudited
|
|
Nine months ended |
|
|
Three months ended |
|
|
|
Sept 30, 2017 |
|
|
Sept 30, 2016 |
|
|
Sept 30, 2017 |
|
|
Sept 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee income |
|
$ |
1,229,631 |
|
|
$ |
958,337 |
|
|
$ |
488,336 |
|
|
$ |
304,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
2,380,328 |
|
|
|
2,676,178 |
|
|
|
607,291 |
|
|
|
624,080 |
|
Research and
development |
|
|
598,638 |
|
|
|
1,160,544 |
|
|
|
185,296 |
|
|
|
246,755 |
|
Total
Expenses |
|
|
2,978,966 |
|
|
|
3,836,722 |
|
|
|
792,587 |
|
|
|
870,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
(1,749,335 |
) |
|
|
(2,878,385 |
) |
|
|
(304,251 |
) |
|
|
(566,063 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income |
|
|
3,830 |
|
|
|
25,203 |
|
|
|
1,113 |
|
|
|
6,332 |
|
Net
loss |
|
$ |
(1,745,505 |
) |
|
$ |
(2,853,182 |
) |
|
$ |
(303,138 |
) |
|
$ |
(559,731 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share |
|
$ |
(0.07 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
24,043,846 |
|
|
|
24,043,846 |
|
|
|
24,043,846 |
|
|
|
24,043,846 |
|
RESEARCH FRONTIERS INCORPORATED Consolidated
Statements of Cash Flows Unaudited
|
|
Nine months ended |
|
|
|
September 30, 2017 |
|
|
September 30, 2016 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,745,505 |
) |
|
$ |
(2,853,182 |
) |
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
131,725 |
|
|
|
141,481 |
|
Loss on
sale of asset |
|
|
- |
|
|
|
1,776 |
|
Allowance
for uncollectible accounts |
|
|
(1,785 |
) |
|
|
- |
|
Change in
assets and liabilities: |
|
|
|
|
|
|
|
|
Royalty
receivables |
|
|
336,739 |
|
|
|
(220,895 |
) |
Prepaid
expenses and other current assets |
|
|
205,825 |
|
|
|
69,770 |
|
Deferred
revenue |
|
|
46,666 |
|
|
|
10,000 |
|
Accounts
payable and accrued expenses |
|
|
5,815 |
|
|
|
136,293 |
|
Net cash
used in operating activities |
|
|
(1,020,520 |
) |
|
|
(2,714,757 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases
of fixed assets |
|
|
(6,362 |
) |
|
|
(8,055 |
) |
Proceeds
from sale of fixed asset |
|
|
- |
|
|
|
6,000 |
|
Change in
investments |
|
|
1,523,333 |
|
|
|
(6,836 |
) |
Net cash
provided by (used in) investing activities |
|
|
1,516,971 |
|
|
|
(8,891 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
|
496,451 |
|
|
|
(2,723,648 |
) |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year |
|
|
1,691,603 |
|
|
|
5,712,310 |
|
Cash and cash
equivalents at end of period |
|
$ |
2,188,054 |
|
|
$ |
2,988,662 |
|
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