Research Frontiers Reports First Quarter 2021 Financial Results
May 06 2021 - 4:01PM
Research Frontiers Inc. (Nasdaq: REFR) announced its financial
results for its first quarter of 2021. 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 and
projects for its SPD-SmartGlass light-control technology.
- Who: Joseph M. Harary, President &
CEO
- Date/Time: May 6, 2021, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Friday, May 7, 2021 for
90 days at SmartGlass-IR.com
Key Comments:
- Fee income from licensing
activities for the three months ended March 31, 2021 was $213,123
as compared to $356,173 for the three months ended March 31, 2020.
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,
and stable levels of royalty revenues from the architectural market
were partially offset by higher fee income from the display
market.
- Total expenses decreased by
$232,985, or approximately 23%, for the first quarter of 2021 as
compared to the same period in 2020.
- The Company’s net loss decreased by
$67,287 to $557,307 ($0.02 per common share) for the first quarter
of 2021. This compares to a net loss of $624,594 ($0.02 per common
share) in the first quarter of 2020. This continuous reduction in
the Company’s net loss followed a net loss in 2020 which was
Research Frontiers’ lowest net loss in 26 years.
- As of March 31, 2021, the Company
had cash and cash equivalents of over $4.2 million and working
capital of approximately $4.7 million. The Company expects to have
sufficient working capital for at least the next 32 months of
operations until at least late 2023.
- During the first quarter of 2021,
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. Also during the first
quarter of 2021, licensees of Research Frontiers took steps to
increase their production capacity for SPD emulsion, film and
end-products.
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. “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 INCORPORATEDCondensed
Consolidated Balance Sheets
|
|
March 31, 2021(Unaudited) |
|
|
December 31, 2020(See Note 1) |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,215,961 |
|
|
$ |
4,772,705 |
|
Royalty receivables, net of reserves of $972,202 in 2021 and
$972,202 in 2020 |
|
|
737,870 |
|
|
|
598,292 |
|
Prepaid expenses and other current assets |
|
|
85,271 |
|
|
|
56,512 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
5,039,102 |
|
|
|
5,427,509 |
|
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
114,662 |
|
|
|
121,772 |
|
Operating lease ROU
assets |
|
|
579,788 |
|
|
|
616,442 |
|
Deposits and other assets |
|
|
33,567 |
|
|
|
33,567 |
|
Total assets |
|
$ |
5,767,119 |
|
|
$ |
6,199,290 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of operating lease liability |
|
$ |
170,191 |
|
|
$ |
166,377 |
|
Accounts payable |
|
|
41,606 |
|
|
|
33,410 |
|
Accrued expenses and other |
|
|
68,633 |
|
|
|
26,279 |
|
Deferred revenue |
|
|
27,945 |
|
|
|
- |
|
Total current liabilities |
|
|
308,375 |
|
|
|
226,066 |
|
|
|
|
|
|
|
|
|
|
Operating lease liability, net of current portion |
|
|
602,784 |
|
|
|
646,219 |
|
Total liabilities |
|
|
911,159 |
|
|
|
872,285 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, par value $0.0001 per share; authorized 100,000,000
shares, issued and outstanding 31,650,396 in 2021 and 31,575,786 in
2020 |
|
|
3,165 |
|
|
|
3,158 |
|
Additional paid-in capital |
|
|
123,250,878 |
|
|
|
123,164,623 |
|
Accumulated deficit |
|
|
(118,398,083 |
) |
|
|
(117,840,776 |
) |
Total shareholders’ equity |
|
|
4,855,960 |
|
|
|
5,327,005 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
5,767,119 |
|
|
$ |
6,199,290 |
|
RESEARCH FRONTIERS INCORPORATEDCondensed
Consolidated Statements of Operations(Unaudited)
|
|
For the three months ended |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
Fee income |
|
$ |
213,123 |
|
|
$ |
356,173 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
625,596 |
|
|
|
820,441 |
|
Research and development |
|
|
145,178 |
|
|
|
183,318 |
|
Total expenses |
|
|
770,774 |
|
|
|
1,003,759 |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(557,651 |
) |
|
|
(647,586 |
) |
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
344 |
|
|
|
22,992 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(557,307 |
) |
|
$ |
(624,594 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
common share |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding |
|
|
31,634,890 |
|
|
|
31,323,205 |
|
RESEARCH FRONTIERS INCORPORATEDCondensed
Consolidated Statements of Shareholders’ Equity(Unaudited)
For the three months ended March 31, 2020 and
2021
|
|
Common Stock |
|
|
Additional Paid-in |
|
|
Accumulated |
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Total |
|
Balance, January 1, 2020 |
|
|
31,254,262 |
|
|
$ |
3,125 |
|
|
$ |
122,552,895 |
|
|
$ |
(115,499,912 |
) |
|
$ |
7,056,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of options and warrants |
|
|
156,845 |
|
|
|
16 |
|
|
|
(16 |
) |
|
|
- |
|
|
|
- |
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(624,594 |
) |
|
|
(624,594 |
) |
Balance, March 31, 2020 |
|
|
31,411,107 |
|
|
$ |
3,141 |
|
|
$ |
122,552,879 |
|
|
$ |
(116,124,506 |
) |
|
$ |
6,431,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2021 |
|
|
31,575,786 |
|
|
$ |
3,158 |
|
|
$ |
123,164,623 |
|
|
$ |
(117,840,776 |
) |
|
$ |
5,327,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of options |
|
|
74,610 |
|
|
|
7 |
|
|
|
86,255 |
|
|
|
- |
|
|
|
86,262 |
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(557,307 |
) |
|
|
(557,307 |
) |
Balance, March 31, 2021 |
|
|
31,650,396 |
|
|
$ |
3,165 |
|
|
$ |
123,250,878 |
|
|
$ |
(118,398,083 |
) |
|
$ |
4,855,960 |
|
RESEARCH FRONTIERS INCORPORATEDCondensed
Consolidated Statements of Cash Flows(Unaudited)
|
|
For the three months ended |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(557,307 |
) |
|
$ |
(624,594 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,489 |
|
|
|
44,619 |
|
Bad debts expense (recovery) |
|
|
- |
|
|
|
(5,237 |
) |
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
Royalty receivables |
|
|
(139,578 |
) |
|
|
(85,354 |
) |
Prepaid expenses and other current assets |
|
|
(28,759 |
) |
|
|
(123,257 |
) |
Accounts payable and accrued expenses |
|
|
50,550 |
|
|
|
(35,589 |
) |
Deferred revenue |
|
|
27,945 |
|
|
|
71,189 |
|
Net cash used in operating activities |
|
|
(642,660 |
) |
|
|
(758,223 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchases of fixed assets |
|
|
(346 |
) |
|
|
(55 |
) |
Proceeds from sale of fixed asset |
|
|
- |
|
|
|
3,713 |
|
Net cash (used in) provided by investing activities |
|
|
(346 |
) |
|
|
3,658 |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from exercise of options |
|
|
86,262 |
|
|
|
- |
|
Net cash provided by financing activities |
|
|
86,262 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents |
|
|
(556,744 |
) |
|
|
(754,565 |
) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period |
|
|
4,772,705 |
|
|
|
6,591,960 |
|
Cash and cash equivalents at
end of period |
|
$ |
4,215,961 |
|
|
$ |
5,837,395 |
|
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