Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter ended September 30, 2020. 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: November 5, 2020, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Friday, November 6, 2020 for 90 days at www.SmartGlass-IR.com

Key Third Quarter 2020 Comments:

1. The Company’s fee income from licensing activities for the nine months ended September 30, 2020 was $692,714 as compared to $1,182,560 for the nine months ended September 30, 2019. Lower fees in the automotive and aircraft markets were partially offset by higher fee income from licensees in the architect and display markets.

2. Total expenses decreased by $716,661, or approximately 23%, for the for the nine months ended September 30, 2020 as compared to the same period in 2019.

3. As of September 30, 2020, the Company had cash and cash equivalents of approximately $5.4 million and working capital of approximately $5.9 million. The Company expects to have sufficient working capital for at least the next 27-29 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.

About Research Frontiers

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, especially those reliant on activities by third parties, 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.

CONTACT:Seth L. Van VoorheesChief Financial OfficerResearch Frontiers Inc.+1-516-364-1902Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATED Consolidated Balance Sheets

    September 30, 2020 (Unaudited)     December 31, 2019  
Assets                
                 
Current assets:                
Cash and cash equivalents   $ 5,440,208     $ 6,591,960  
Royalties receivable, net of reserves of $944,052 as of September 30, 2020 and $1,135,598 as of December 31, 2019     554,609       656,062  
Prepaid expenses and other current assets     107,041       58,835  
                 
Total current assets     6,101,858       7,306,857  
                 
Fixed assets, net     72,715       141,720  
Operating lease ROU assets     653,097       773,989  
Deposits and other assets     33,567       33,567  
Total assets   $ 6,861,237     $ 8,256,133  
                 
Liabilities and Shareholders’ Equity                
                 
Current liabilities:                
Current portion of operating lease liabilities   $ 162,615     $ 163,236  
Accounts payable     47,324       169,750  
Accrued expenses and other     58,213       46,709  
Deferred revenue     21,511       7,734  
Total current liabilities     289,663       387,429  
                 
Operating lease liabilities, net of current portion     689,057       812,596  
Total liabilities     978,720       1,200,025  
                 
Shareholders’ equity:                
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,575,786 in 2020 and 31,254,262 in 2019     3,158       3,125  
Additional paid-in capital     122,837,069       122,552,895  
Accumulated deficit     (116,957,710 )     (115,499,912 )
Total shareholders’ equity     5,882,517       7,056,108  
                 
Total liabilities and shareholders’ equity   $ 6,861,237     $ 8,256,133  

RESEARCH FRONTIERS INCORPORATED Consolidated Statements of Operations Unaudited

    Nine Months Ended September 30,     Three Months Ended September 30,  
    2020     2019     2020     2019  
                         
Fee income   $ 697,914     $ 1,182,560     $ 165,628     $ 462,869  
                                 
Operating expenses     1,924,828       2,356,875       472,424       666,356  
Research and development     466,698       751,312       136,649       207,368  
Total expenses     2,391,526       3,108,187       609,073       873,724  
                                 
Operating loss     (1,693,612 )     (1,925,627 )     (443,445 )     (410,855 )
                                 
Warrant market adjustment     -       (652,025 )     -       -  
Other income -PPP loan forgiveness     202,052       -       7,912       -  
Net investment income     33,762       25,565       1,310       13,143  
                                 
Net loss   $ (1,457,798 )   $ (2,552,087 )   $ (434,223 )   $ (397,712 )
                                 
Basic and diluted net loss per common share   $ (0.05 )   $ (0.09 )   $ (0.01 )   $ (0.01 )
                                 
Basic and diluted weighted average number of common shares outstanding     31,458,238       29,636,013       31,575,786       31,065,730  

RESEARCH FRONTIERS INCORPORATED Consolidated Statements of Cash Flows Unaudited

    Nine Months Ended September 30,  
    2020     2019  
Cash flows from operating activities:                
Net loss   $ (1,457,798 )   $ (2,552,087 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     64,193       146,496  
Stock-based compensation     -       356,228  
Bad debt expense     53,217       22,667  
Warrant market adjustment     -       652,025  
Other income -PPP loan forgiveness     (202,052 )     -  
Change in assets and liabilities:                
Royalty receivables     48,234       (108,750 )
Prepaid expenses and other current assets     (48,206 )     (53,155 )
Accounts payable and accrued expenses     (110,921 )     (142,477 )
Deferred revenue     13,777       21,095  
Net cash used in operating activities     (1,639,556 )     (1,657,958 )
                 
Cash flows from investing activities:                
Purchases of fixed assets     (2,168 )     (65,081 )
Proceeds from the sale of fixed assets     3,713       -  
Net cash provided by (used in) investing activities     1,545       (65,081 )
                 
Cash flows from financing activities:                
Net proceeds from issuances of common stock and warrants and exercise of options and warrants     284,207       5,770,545  
Proceeds from PPP Program Funding     202,052       -  
Net cash provided by financing activities     486,259       5,770,545  
                 
Net (decrease)/increase in cash and cash equivalents     (1,151,752 )     4,047,506  
                 
Cash and cash equivalents at beginning of period     6,591,960       2,969,416  
Cash and cash equivalents at end of period   $ 5,440,208     $ 7,016,922