Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its March 31, 2022 first quarter. 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: May 5, 2022, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Friday, May 6, 2022 for 90 days at https://smartglass-ir.com/

Key Comments:

  1. The Company’s fee income from licensing activities decreased slightly as a result of two factors (1) lower to flat economic activity in the various industries that use the Company’s SPD-SmartGlass technology, and (2) timing differences due to how revenues are recorded from an accounting standpoint.
  2. The Company expects revenue in all market segments to increase beginning later this year as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market.
  3. Total expenses decreased by $21,250, or approximately 3%, for the first quarter ended March 31, 2022 as compared to the same period last year. 2021 was the seventh consecutive year that expenses were lower than the year before at Research Frontiers and this trend continued in the first quarter of 2022.
  4. The Company’s net loss was $628,348 ($0.02 per common share) for the quarter ended March 31, 2022 as compared to $557,307 ($0.02 per common share) for the quarter ended March 31, 2021.
  5. As of March 31, 2022, the Company had cash and cash equivalents of approximately $2.5 million and working capital of approximately $3.0 million. The Company expects to have sufficient working capital for at least the next 23 months of operations.
  6. This year, new products using the Company’s SPD-Smart light control technology were featured at the CES Consumer Electronics Show including automotive and consumer electronics applications, and a new aircraft model debuted in early April using electronically dimmable windows.

For more details, please see the Company’s Annual 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:Joseph M. HararyPresident and CEOResearch Frontiers Inc.+1-516-364-1902Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Balance Sheets

    March 31, 2022 (Unaudited)     December 31, 2021  
 Assets                
Current assets:                
Cash and cash equivalents   $ 2,466,373     $ 269,964  
Marketable securities     -       2,755,111  
Royalty receivables, net of reserves of $1,016,678 in 2022 and 2021     753,550       831,636  
Prepaid expenses and other current assets     86,573       92,931  
                 
Total current assets     3,306,496       3,949,642  
                 
Fixed assets, net     86,379       92,954  
Operating lease ROU assets     433,473       469,824  
Deposits and other assets     33,567       33,567  
Total assets   $ 3,859,915     $ 4,545,987  
                 
Liabilities and Shareholders’ Equity                
                 
Current liabilities:                
Current portion of operating lease liability   $ 186,169     $ 182,091  
Accounts payable     16,023       66,460  
Accrued expenses and other     74,777       49,385  
Deferred revenue     10,756       -  
Total current liabilities     287,725       297,936  
                 
Operating lease liability, net of current portion     416,615       464,128  
Total liabilities     704,340       762,064  
                 
Shareholders’ equity:                
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,650,396 in 2022 and 2021     3,165       3,165  
Additional paid-in capital     123,467,886       123,467,886  
Accumulated deficit     (120,315,476 )     (119,687,128 )
Total shareholders’ equity     3,155,575       3,783,923  
                 
Total liabilities and shareholders’ equity   $ 3,859,915     $ 4,545,987  

See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Operations(Unaudited)

    Three months ended March 31,  
    2022     2021  
             
Fee income   $ 173,828     $ 213,123  
                 
Operating expenses     600,698       625,596  
Research and development     148,825       145,178  
Total expenses     749,523       770,774  
                 
Operating loss     (575,695 )     (557,651 )
                 
Net investment (loss) income     (52,653 )     344  
                 
Net loss   $ (628,348 )   $ (557,307 )
                 
Basic and diluted net loss per common share   $ (0.02 )   $ (0.02 )
                 
Weighted average number of common shares outstanding     31,650,396       31,634,890  

See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Shareholders’ Equity(Unaudited)

For the three months ended March 31, 2021 and 2022

    Common Stock     Additional Paid-in     Accumulated        
    Shares     Amount     Capital     Deficit     Total  
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  
                                         
Balance, January 1, 2022     31,650,396     $ 3,165     $ 123,467,886     $ (119,687,128 )   $ 3,783,923  
                                         
Net loss     -       -       -       (628,348 )     (628,348 )
Balance, March 31, 2022     31,650,396     $ 3,165     $ 123,467,886     $ (120,315,476 )   $ 3,155,575  

See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Cash Flows(Unaudited)

    For the three months ended March 31,  
    2022     2021  
Cash flows from operating activities:                
Net loss   $ (628,348 )   $ (557,307 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     96       4,489  
Realized loss on sale of marketable securities     60,143       -  
Change in assets and liabilities:                
Royalty receivables     78,086       (139,578 )
Prepaid expenses and other current assets     6,358       (28,759 )
Accounts payable and accrued expenses     (25,045 )     50,550  
Deferred revenue     10,756       27,945  
Net cash used in operating activities     (497,954 )     (642,660 )
                 
Cash flows from investing activities:                
Purchases of fixed assets     (605 )     (346 )
Proceeds from sales of marketable securities     2,694,968       -  
Net cash provided by (used in) investing activities     2,694,363       (346 )
                 
Cash flows from financing activities:                
Proceeds from exercise of options     -       86,262  
Net cash provided by financing activities     -       86,262  
                 
Net increase (decrease) in cash and cash equivalents     2,196,409       (556,744 )
                 
Cash and cash equivalents at beginning of period     269,964       4,772,705  
Cash and cash equivalents at end of period   $ 2,466,373     $ 4,215,961  

See accompanying notes to condensed consolidated financial statements.

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