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:

  1. 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.
  2. Total expenses decreased by $232,985, or approximately 23%, for the first quarter of 2021 as compared to the same period in 2020.
  3. 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.
  4. 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.
  5. 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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