Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its fourth quarter and year December 31, 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
  • Date/Time: March 11, 2021, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Friday, March 12, 2021 for 90 days at www.SmartGlass-IR.com

Key Comments:

  1. Fee and other income for 2020 was $1,064,975. The Company’s fee income from licensing activities for the year ended December 31, 2020 was $828,450 as compared to $1,564,024 for the year ended December 31, 2019. Lower fees in the automotive and aircraft markets as production of certain Daimler vehicles was curtailed due to the COVID-19 pandemic and as these vehicles approached the end of their model lifetimes, were partially offset by higher fee income from the display market.
  2. Total expenses decreased by $1,307,524, or approximately 28%, for the year ended December 31, 2020 as compared to the same period in 2019.
  3. The Company’s net loss decreased by $1,468,114 to $2,340,864 ($0.07 per common share) for the year ended December 31, 2020. This compares to a net loss of $3,808,978 ($0.13 per common share) in 2019. The net loss for 2020 was Research Frontiers’ lowest net loss in 26 years.
  4. As of December 31, 2020, the Company had cash and cash equivalents of approximately $4.8 million and working capital of approximately $5.2 million. The Company expects to have sufficient working capital for at least the next 33 months of operations.
  5. Since Research Frontiers last conference call, General Motor’s Cadillac division announced that its new ultra-luxury all-electric flagship vehicle, the Celestiq, will offer a four quadrant SPD-SmartGlass roof.

For more details, please see the Company’s Annual Report on Form 10-K 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. “Cadillac” and “Celestiq” are trademarks of General Motors Corp.

CONTACT:Joseph M. HararyPresident and CEOResearch Frontiers Inc.+1-516-364-1902Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATEDConsolidated Balance SheetsDecember 31, 2020 and 2019

    December 31, 2020     December 31, 2019  
Assets            
Current assets:                
Cash and cash equivalents   $ 4,772,705     $ 6,591,960  
Royalties receivable, net of reserves of $972,202 in 2020 and $1,135,598 in 2019     598,292       656,062  
Prepaid expenses and other current assets     56,512       58,835  
Total current assets     5,427,509       7,306,857  
                 
Fixed assets, net     121,772       141,720  
Operating lease ROU assets     616,442       773,989  
Deposits and other assets     33,567       33,567  
Total assets   $ 6,199,290     $ 8,256,133  
                 
Liabilities and Shareholders’ Equity                
                 
Current liabilities:                
Current portion of operating lease liability   $ 166,377     $ 163,236  
Accounts payable     33,410       169,750  
Accrued expenses and other     26,279       46,709  
Deferred revenue     -       7,734  
Total current liabilities     226,066       387,429  
                 
Operating lease liability, net of current portion     646,219       812,596  
Total liabilities     872,285       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     123,164,623       122,552,895  
Accumulated deficit     (117,840,776 )     (115,499,912 )
Total shareholders’ equity     5,327,005       7,056,108  
                 
Total liabilities and shareholders’ equity   $ 6,199,290     $ 8,256,133  

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of OperationsYears ended December 31, 2020 and 2019

    2020     2019  
             
Fee income   $ 828,450     $ 1,564,024  
                 
Operating expenses     2,777,535       3,677,740  
Research and development     628,304       1,035,623  
Total expenses     3,405,839       4,713,363  
                 
Operating loss     (2,577,389 )     (3,149,339 )
                 
Warrant market adjustment     -       (652,025 )
Loss on disposal of fixed asset     -       (50,666 )
PPP loan forgiveness     202,052       -  
Net investment income     34,473       43,052  
                 
Net loss   $ (2,340,864 )   $ (3,808,978 )
                 
Basic and diluted net loss per common share   $ (0.07 )   $ (0.13 )
                 
Weighted average number of common shares outstanding     31,487,785       30,011,556  

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of Shareholders’ EquityYears ended December 31, 2020 and 2019

    Common Stock     Additional     Accumulated        
    Shares     Amount     Paid-in Capital     Deficit     Total  
                               
                               
Balance, January 1, 2019     27,665,211     $ 2,767     $ 114,787,657     $ (111,690,934 )   $ 3,099,490  
                                         
Exercise of options and warrants     1,587,814       158       1,170,388       -       1,170,546  
Issuance of capital stock     2,001,237       200       4,599,799       -       4,599,999  
Warrants converted to equity     -       -       1,153,439       -       1,153,439  
Share-based compensation     -       -       841,612       -       841,612  
Net loss     -       -       -       (3,808,978 )     (3,808,978 )
Balance, December 31, 2019     31,254,262       3,125       122,552,895       (115,499,912 )     7,056,108  
                                         
Exercise of options and warrants     321,524       33       284,174       -       284,207  
Share-based compensation     -       -       327,554       -       327,554  
Net loss     -       -       -       (2,340,864 )     (2,340,864 )
Balance, December 31, 2020     31,575,786     $ 3,158     $ 123,164,623     $ (117,840,776 )   $ 5,327,005  

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of Cash FlowsYears ended December 31, 2020 and 2019

    2020     2019  
Cash flows from operating activities:                
Net loss   $ (2,340,864 )   $ (3,808,978 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     67,082       195,377  
Warrant market adjustment     -       652,025  
Share-based compensation     327,554       841,612  
Loss on disposal of fixed asset     -       50,666  
Bad debts     81,367       156,636  
Other income - PPP loan forgiveness     (202,052 )     -  
Change in assets and liabilities:                
Royalty receivables     (23,597 )     (123,021 )
Prepaid expenses and other current assets     2,323       (6,104 )
Accounts payable and accrued expenses     (156,770 )     1,904  
Deferred revenue     (7,734 )     (42,836 )
Net cash used in operating activities     (2,252,691 )     (2,082,719 )
                 
Cash flows from investing activities:                
Purchases of fixed assets     (56,536 )     (65,282 )
Proceeds from sale of fixed asset     3,713       -  
Net cash used in investing activities     (52,823 )     (65,282 )
                 
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 loan     202,052       -  
Net cash provided by financing activities     486,259       5,770,545  
                 
Net (decrease) increase in cash and cash equivalents     (1,819,255 )     3,622,544  
                 
Cash and cash equivalents at beginning of year     6,591,960       2,969,416  
Cash and cash equivalents at end of year   $ 4,772,705     $ 6,591,960