REFR Research Frontiers Inc

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