Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y., Aug. 13, 2018 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter ended June 30, 2018. 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, Seth Van Voorhees, CFO
- Date/Time: August 13, 2018, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Tuesday, August 14, 2018 for 90 days at www.SmartGlass-IR.com
Key Second Quarter 2018 Comments:
1) The Company’s fee income from licensing activities for the three months ended June 30, 2018 was $324,853 as compared to $348,179 for the three months ended June 30, 2017 representing a $23,326 decrease between these two periods.
a. This decrease in revenues was principally the result of the adoption of ASC 606 revenue recognition standard beginning with the first quarter of 2018, the adoption of which changed the timing of when we recognize revenues for our contracts with customers. We would have reported $365,048 of fee income, representing a $16,869 increase in the reported fee income for the period ending June 30, 2018 had we continued to use the accounting guidance used prior to the adoption of ASC 606.
2) Fee income was down $108,416 in the second quarter of 2018 as compared to the prior first quarter of 2018 in all sectors other than the display and architectural sectors.
a. Most of this sequential period decline was due to the recognition of all fee income associated with the Grant of Use performance obligation under our license agreements in the first quarter of 2018.
3) The Company’s fee income from licensing activities for the six months ended June 30, 2018 was $758,122 as compared to $741,295 for the six months ended June 30, 2017 representing a $16,827 increase in fee income between these two periods.
a. This increase in revenues was principally the result of higher revenues in the architectural and display sectors partial offset by slightly lower revenues recorded in the aircraft and automotive sectors due to seasonality.
b. We would have reported $753,697 of fee income, representing a $4.423 decrease in the reported fee income for the period ending June 30, 2018 had we continued to use the accounting guidance used prior to the adoption of ASC 606.
4) Expenses declined by $61,154, or (2.8%), for the 6-month period ending June 30, 2018 as compared to the same period in 2017. Expenses increased by $57,953, or 6.9%, for the 3-month period ending June 30, 2018 as compared to the same period in 2017.
5) Cash and cash equivalents increased by $124,125 since the end of 2017 as a result of a financing completed in February 2018.
6) On August 13, 2018, the Company announced that a group of investors led by a licensee of the Company's SPD technology agreed to make a $2,000,000 equity investment in the Company. With the addition of proceeds from this investment, the Company expects as of this filing to have sufficient working capital for at least the next 24 months of operations.
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.
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 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
RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
Unaudited
| June 30, 2018 | December 31, 2017 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,861,972 | $ | 1,737,847 | ||||
| Royalties receivable, net of reserves of $1,051,424 in 2018 and 2017 | 634,340 | 597,441 | ||||||
| Prepaid expenses and other current assets | 108,007 | 29,697 | ||||||
| Total current assets | 2,604,319 | 2,364,985 | ||||||
| Fixed assets, net | 403,305 | 482,561 | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 3,041,191 | $ | 2,881,113 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 80,499 | $ | 58,090 | ||||
| Accrued expenses and other | 276,806 | 254,833 | ||||||
| Deferred revenue | 102,848 | 824 | ||||||
| Total current liabilities | 460,153 | 313,747 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 25,432,739 in 2018 and 24,043,846 in 2017 | 2,543 | 2,404 | ||||||
| Additional paid-in capital | 112,946,959 | 111,627,789 | ||||||
| Accumulated deficit | (110,368,464 | ) | (109,062,827 | ) | ||||
| Total shareholders’ equity | 2,581,038 | 2,567,366 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,041,191 | $ | 2,881,113 | ||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited
| Six months ended | Three months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Fee income | $ | 758,122 | $ | 741,295 | $ | 324,853 | $ | 348,179 | ||||||||
| Operating expenses | 1,655,785 | 1,773,036 | 645,960 | 636,781 | ||||||||||||
| Research and development | 469,440 | 413,343 | 250,824 | 202,050 | ||||||||||||
| Total Expenses | 2,125,225 | 2,186,379 | 896,784 | 838,831 | ||||||||||||
| Operating loss | (1,367,103 | ) | (1,445,084 | ) | (571,931 | ) | (490,652 | ) | ||||||||
| Net investment income | 3,445 | 2,717 | 2,040 | 840 | ||||||||||||
| Net loss | (1,363,658 | ) | (1,442,367 | ) | (569,891 | ) | (489,812 | ) | ||||||||
| Basic and diluted net loss per common share | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.02 | ) | $ | (0.02 | ) | ||||
| Weighted average number of common shares outstanding | 25,064,414 | 24,043,846 | 25,432,739 | 24,043,846 | ||||||||||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited
| Six months ended | ||||||||
| June 30, | ||||||||
| 2018 | 2017 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,363,658 | ) | $ | (1,442,367 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 90,343 | 87,789 | ||||||
| Stock based compensation | 69,309 | - | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | 21,122 | 325,638 | ||||||
| Prepaid expenses and other current assets | (78,310 | ) | 191,899 | |||||
| Accounts payable and accrued expenses | 44,382 | 1,046 | ||||||
| Deferred revenue | 102,024 | 32,500 | ||||||
| Net cash used in operating activities | (1,114,788 | ) | (803,495 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (11,087 | ) | (5,822 | ) | ||||
| Proceeds from sale of investment | - | 1,523,333 | ||||||
| Net cash provided by (used in) investing activities | (11,087 | ) | 1,517,511 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds for issuance of common stock | 1,250,000 | - | ||||||
| Net cash provided by financing activities | 1,250,000 | - | ||||||
| Net increase in cash and cash equivalents | 124,125 | 714,016 | ||||||
| Cash and cash equivalents at beginning of period | 1,737,847 | 1,691,603 | ||||||
| Cash and cash equivalents at end of period | $ | 1,861,972 | $ | 2,405,619 | ||||