Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y., March 08, 2018 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq:REFR) announced its financial results for its fourth quarter and full year ended December 31, 2017. 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: Thursday, March 8, 2018 at 4:30PM ET
- Dial-in Information: 1-412-717-9591
- Questions: Email to Questions@SmartGlass.com
- Replay: Available on Friday, March 9, 2018 for 90 days at www.SmartGlass-IR.com
Key Comments:
- The Company’s fee income for 2017 increased by $272,973 (+22%) to $1,509,070 as compared to $1,236,097 for 2016
- A substantial majority of this increase was the result of increase fees earned from licensees focused in automotive, marine, display and architectural industries which was partially offset by slightly lower level of fee income from licensees focused in the aircraft industry (which the Company believes to be temporary).
- A substantial majority of this increase was the result of increase fees earned from licensees focused in automotive, marine, display and architectural industries which was partially offset by slightly lower level of fee income from licensees focused in the aircraft industry (which the Company believes to be temporary).
- Expenses decreased by $1,576,361 (-29%) for 2017 to $3,927,681 from $5,504,042 for 2016.
- A substantial majority of this decrease was the result of cost reduction initiatives undertaken by the Company that resulted in lower payroll, marketing, investor relations, and patent expense, as well as lower bad debt expenses in 2017.
- A substantial majority of this decrease was the result of cost reduction initiatives undertaken by the Company that resulted in lower payroll, marketing, investor relations, and patent expense, as well as lower bad debt expenses in 2017.
- The Company’s net loss per common share in 2017 was cut in almost half from the prior year. In 2017 the Company’s net loss was $2,413,859 ($0.10 per common share) as compared to $4,238,410 ($0.18 per common share) in 2016.
- Net cash used in operating activities decreased by $2,534903 (-63%) to $1,470,540 for 2017 from $4,005,443 for 2016.
- In February 2018, a small group of long-time shareholders of the Company made an interest-free long-term loan of $1.25 million to the Company which is expected to convert into common stock at a price equal to the market price of the Company’s common stock when the loan was made plus warrants exercisable at a premium to such market price.
- The Company believes that its current cash and cash equivalents will fund its operations until at least the fourth quarter of 2019.
Research Frontiers is the developer of SPD-Smart light-control technology which allows users to instantly, precisely and uniformly control the shading of glass or plastic, either manually or automatically. Research Frontiers has built an infrastructure of over 40 licensed companies that collectively are capable of serving the growing global demand for smart glass products in automobiles, homes, buildings, museums, aircraft and boats. For more information, please visit our website at www.SmartGlass.com, and on Facebook, Twitter, LinkedIn and YouTube.
CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com
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 Unaudited Consolidated Balance Sheets December 31, 2017 and 2016 | ||||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,737,847 | $ | 1,691,603 | ||||
| Short-term investments | - | 1,523,333 | ||||||
| Royalties receivable, net of reserves of $1,051,424 in 2017 and $1,110,020 in 2016 | 597,441 | 1,117,146 | ||||||
| Prepaid expenses and other current assets | 29,697 | 256,892 | ||||||
| Total current assets | 2,364,985 | 4,588,974 | ||||||
| Fixed assets, net | 482,561 | 651,655 | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 2,881,113 | $ | 5,274,196 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 58,090 | $ | 29,932 | ||||
| Accrued expenses and other | 254,833 | 339,338 | ||||||
| Deferred revenue | 824 | - | ||||||
| Total current liabilities | 313,747 | 369,270 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 24,043,846 in 2017 and 2016 | 2,404 | 2,404 | ||||||
| Additional paid-in capital | 111,627,789 | 111,551,490 | ||||||
| Accumulated deficit | (109,062,827 | ) | (106,648,968 | ) | ||||
| Total shareholders’ equity | 2,567,366 | 4,904,926 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,881,113 | $ | 5,274,196 | ||||
| RESEARCH FRONTIERS INCORPORATED Unaudited Consolidated Statements of Operations Years ended December 31, 2017, 2016 and 2015 | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| Fee income | $ | 1,509,070 | $ | 1,236,097 | $ | 2,007,482 | ||||||
| Operating expenses | 3,127,979 | 4,086,408 | 4,742,166 | |||||||||
| Research and development | 799,702 | 1,417,634 | 1,588,491 | |||||||||
| Total Expenses | 3,927,681 | 5,504,042 | 6,330,657 | |||||||||
| Operating loss | (2,418,611 | ) | (4,267,945 | ) | (4,323,175 | ) | ||||||
| Net investment income | 4,752 | 29,535 | 43,319 | |||||||||
| Net loss | $ | (2,413,859 | ) | $ | (4,238,410 | ) | $ | (4,279,856 | ) | |||
| Basic and diluted net loss per common share | $ | (0.10 | ) | $ | (0.18 | ) | $ | (0.18 | ) | |||
| Weighted average number of common shares outstanding | 24,043,846 | 24,043,846 | 24,007,974 | |||||||||
| RESEARCH FRONTIERS INCORPORATED Unaudited Consolidated Statements of Shareholders’ Equity Years ended December 31, 2017, 2016 and 2015 | |||||||||||||||||||||||
| Common Stock | Additional Paid-in | Accumulated | |||||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | |||||||||||||||||||
| Balance, December 31, 2014 | 23,924,465 | $ | 2,392 | $ | 110,210,480 | $ | (98,130,702 | ) | $ | 12,082,170 | |||||||||||||
| Exercise of options and warrants | 119,381 | 12 | 548,463 | - | 548,475 | ||||||||||||||||||
| Share-based compensation | - | - | 725,016 | - | 725,016 | ||||||||||||||||||
| Net Loss | - | - | - | (4,279,856 | ) | (4,279,856 | ) | ||||||||||||||||
| Balance, December 31, 2015 | 24,043,846 | 2,404 | 111,483,959 | (102,410,558 | ) | 9,075,805 | |||||||||||||||||
| Share-based compensation | - | - | 67,531 | - | 67,531 | ||||||||||||||||||
| Net Loss | - | - | - | (4,238,410 | ) | (4,238,410 | ) | ||||||||||||||||
| Balance, December 31, 2016 | 24,043,846 | 2,404 | 111,551,490 | (106,648,968 | ) | 4,904,926 | |||||||||||||||||
| Share-based compensation | - | - | 76,299 | - | 76,299 | ||||||||||||||||||
| Net Loss | - | - | - | (2,413,859 | ) | (2,413,859 | ) | ||||||||||||||||
| Balance, December 31, 2017 | 24,043,846 | $ | 2,404 | $ | 111,627,789 | $ | (109,062,827 | ) | $ | 2,567,366 | |||||||||||||
| RESEARCH FRONTIERS INCORPORATED Unaudited Consolidated Statements of Cash Flows Years ended December 31, 2017, 2016 and 2015 | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (2,413,859 | ) | $ | (4,238,410 | ) | $ | (4,279,856 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Depreciation and amortization | 175,643 | 188,501 | 140,170 | |||||||||
| Stock based compensation | 76,299 | 67,531 | 725,016 | |||||||||
| Loss on sale of fixed asset | - | 1,775 | - | |||||||||
| Bad debts, net of recovery | 30,015 | 480,563 | 324,286 | |||||||||
| Change in assets and liabilities: | ||||||||||||
| Royalty receivables | 476,490 | (283,035 | ) | (463,743 | ) | |||||||
| Prepaid expenses and other current assets | 227,195 | (123,427 | ) | (12,213 | ) | |||||||
| Accounts payable and accrued expenses | (56,347 | ) | (98,941 | ) | (14,472 | ) | ||||||
| Deferred revenue | 824 | - | - | |||||||||
| Net cash used in operating activities | (1,470,540 | ) | (4,005,443 | ) | (3,580,812 | ) | ||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of fixed assets | (6,549 | ) | (11,715 | ) | (316,185 | ) | ||||||
| Purchase of investments | - | - | - | |||||||||
| Proceeds from sale of fixed asset | - | 6,000 | ||||||||||
| Proceeds from sale of investment | 1,523,333 | (9,549 | ) | 1,491,295 | ||||||||
| Net cash provided by (used in) investing activities | 1,516,784 | (15,264 | ) | 1,175,110 | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Net proceeds from issuances of common stock and exercise of options and warrants | - | - | 548,475 | |||||||||
| Net cash provided by financing activities | - | - | 548,475 | |||||||||
| Net (decrease) increase in cash and cash equivalents | 46,244 | (4,020,707 | ) | (1,857,227 | ) | |||||||
| Cash and cash equivalents at beginning of year | 1,691,603 | 5,712,310 | 7,569,537 | |||||||||
| Cash and cash equivalents at end of year | $ | 1,737,847 | $ | 1,691,603 | $ | 5,712,310 | ||||||