Research Frontiers Reports First Quarter 2021 Financial Results

Woodbury, New York, UNITED STATES


Management to Host Conference Call at 4:30 p.m.

WOODBURY, N.Y., May 06, 2021 (GLOBE NEWSWIRE) -- 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, TwitterLinkedIn 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. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATED
Condensed 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 INCORPORATED
Condensed 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 INCORPORATED
Condensed 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 INCORPORATED
Condensed 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