WOODBURY, N.Y., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter and firstnine months of 2023. 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: November 2, 2023, 4:30 PM ET | |
| • | Dial-in Information:1-888-334-5785 | |
| • | Replay: Available on Friday, November 3, 2023 for 90 days at https://smartglass-ir.com/ | |
Key Comments:
| 1. | Car models from Cadillac, Ferrari, McLaren, and at least one other Asian car manufacturer are expected to be introduced into serial production in 2023 and the first half of 2024, and during the fourth quarter of 2023 additional automakers have begun projects using Research Frontiers patented SPD-SmartGlass technology in their panoramic glass roofs. |
| 2. | Fee income during the first nine months of the year was up 46% from the same period last year. Fee income in the third quarter of 2023 was also up 9% from the same quarter last year. This increase in fee income was primarily the result of higher royalties from the automotive market. |
| 3. | The Company expects revenue in all market segments to increase as new car models, aircraft, trains and other products using the Company’s SPD-SmartGlass technology are introduced into the market. |
| 4. | At September 30, 2023, the Company had cash and cash equivalents and marketable securities of approximately $3.0 million, and working capital of $3.6million. The Company has no debt and expects to have sufficient working capital for at least the next five years of operations. |
For more details, please see the Company’s AnnualReport 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. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets
| September 30, 2023 | December 31, 2022 | |||||||
| (Unaudited) | (See Note 1) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 524,985 | $ | 4,230,916 | ||||
| Marketable securities | 2,499,625 | - | ||||||
| Royalties receivable, net of reserves of $1,253,450 in 2023 and $1,158,450 in 2022 | 721,244 | 589,599 | ||||||
| Prepaid expenses and other current assets | 164,584 | 100,973 | ||||||
| Total current assets | 3,910,438 | 4,921,488 | ||||||
| Fixed assets, net | 46,164 | 65,388 | ||||||
| Operating lease ROU assets | 214,458 | 323,509 | ||||||
| Deposits and other assets | 56,066 | 56,066 | ||||||
| Total assets | $ | 4,227,126 | $ | 5,366,451 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 207,838 | $ | 196,405 | ||||
| Accounts payable | 32,101 | 71,079 | ||||||
| Accrued expenses and other | 20,572 | 34,379 | ||||||
| Deferred revenue | 3,735 | - | ||||||
| Total current liabilities | 264,246 | 301,863 | ||||||
| Operating lease liability, net of current portion | 109,967 | 267,723 | ||||||
| Total liabilities | 374,213 | 569,586 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,509,287 in 2023 and 33,150,396 in 2022 | 3,351 | 3,315 | ||||||
| Additional paid-in capital | 127,634,493 | 127,150,027 | ||||||
| Accumulated deficit | (123,784,931 | ) | (122,356,477 | ) | ||||
| Total shareholders’ equity | 3,852,913 | 4,796,865 | ||||||
| Total liabilities and shareholders’ equity | $ | 4,227,126 | $ | 5,366,451 | ||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Nine months ended June 30, | Three months ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Fee income | $ | 597,362 | $ | 409,783 | $ | 164,146 | $ | 150,443 | ||||||||
| Operating expenses | 1,695,129 | 1,770,414 | 542,635 | 487,476 | ||||||||||||
| Research and development | 430,150 | 444,413 | 135,319 | 149,156 | ||||||||||||
| Total expenses | 2,125,279 | 2,214,827 | 677,954 | 636,632 | ||||||||||||
| Operating loss | (1,527,917 | ) | (1,805,044 | ) | (513,808 | ) | (486,189 | ) | ||||||||
| Net investment income (loss) | 99,463 | (48,871 | ) | 41,642 | 2,460 | |||||||||||
| Net loss | $ | (1,428,454 | ) | $ | (1,853,915 | ) | $ | (472,166 | ) | $ | (483,729 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.02 | ) | ||||
| Weighted average number of common shares outstanding | 33,435,074 | 31,710,179 | 33,509,287 | 31,829,744 | ||||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
For the nine months ended September 30, 2022 and 2023
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||
| Balance, January 1, 2022 | 31,650,396 | $ | 3,165 | $ | 123,467,886 | $ | (119,687,128 | ) | $ | 3,783,923 | ||||||||||||
| Issuance of common stock and warrants | 1,500,000 | 150 | 3,449,850 | - | 3,450,000 | |||||||||||||||||
| Net loss | - | - | - | (1,853,915 | ) | (1,853,915 | ) | |||||||||||||||
| Balance, September 30, 2022 | 33,150,396 | $ | 3,315 | $ | 126,917,736 | $ | (121,541,043 | ) | $ | 5,380,008 | ||||||||||||
| Balance, January 1, 2023 | 33,150,396 | $ | 3,315 | $ | 127,150,027 | $ | (122,356,477 | ) | $ | 4,796,865 | ||||||||||||
| Exercise of warrants | 358,891 | 36 | 484,466 | - | 484,502 | |||||||||||||||||
| Net loss | - | - | - | (1,428,454 | ) | (1,428,454 | ) | |||||||||||||||
| Balance, September 30, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (123,784,931 | ) | $ | 3,852,913 | ||||||||||||
For the three months ended September 30, 2022 and 2023
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||
| Balance, July 1, 2022 | 31,650,396 | $ | 3,165 | $ | 123,467,886 | $ | (121,057,314 | ) | $ | 2,413,737 | ||||||||||||||
| Issuance of common stock and warrants | 1,500,000 | 150 | 3,449,850 | - | 3,450,000 | |||||||||||||||||||
| Net loss | - | - | - | (483,729 | ) | (483,729 | ) | |||||||||||||||||
| Balance, September 30, 2022 | 33,150,396 | $ | 3,315 | $ | 126,917,736 | $ | (121,541,043 | ) | $ | 5,380,008 | ||||||||||||||
| Balance, July 1, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (123,312,765 | ) | $ | 4,325,079 | ||||||||||||||
| Net loss | - | - | - | (472,166 | ) | (472,166 | ) | |||||||||||||||||
| Balance, September 30, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (123,784,931 | ) | $ | 3,852,913 | ||||||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the nine months ended September 30, | ||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,428,454 | ) | $ | (1,853,915 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 20,489 | 21,614 | ||||||
| Realized (gain) loss on marketable securities | (26,375 | ) | 60,143 | |||||
| Unrealized gain on marketable securities | (30,399 | ) | ||||||
| ROU asset amortization | 109,051 | 109,660 | ||||||
| Bad debt expense | 95,000 | 151,772 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (226,645 | ) | 145,335 | |||||
| Prepaid expenses and other assets | (63,612 | ) | (73,640 | ) | ||||
| Accounts payable and accrued expenses | (52,784 | ) | (44,889 | ) | ||||
| Deferred revenue | 3,735 | 3,586 | ||||||
| Operating lease liability | (146,323 | ) | (135,232 | ) | ||||
| Net cash used in operating activities | (1,746,317 | ) | (1,615,566 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (1,265 | ) | (1,216 | ) | ||||
| Purchases of marketable securities | (5,434,386 | ) | - | |||||
| Sales of marketable securities | 2,991,535 | 2,694,968 | ||||||
| Net cash (used in) provided by investing activities | (2,444,116 | ) | 2,693,752 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from sale of common stock and warrants | - | 3,450,000 | ||||||
| Net proceeds from exercise of warrants | 484,502 | - | ||||||
| Net cash provided by financing activities | 484,502 | 3,450,000 | ||||||
| Net (decrease) increase in cash and cash equivalents | (3,705,931 | ) | 4,528,186 | |||||
| Cash and cash equivalents at beginning of period | 4,230,916 | 269,964 | ||||||
| Cash and cash equivalents at end of period | $ | 524,985 | $ | 4,798,150 | ||||
