Research Frontiers Reports Fourth Quarter and Full Year 2021 Financial Results

Woodbury, New York, UNITED STATES


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

WOODBURY, N.Y., March 09, 2022 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its fourth quarter and year December 31, 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.

  • Who: Joseph M. Harary, President & CEO
  • Date/Time:March 9, 2022, 4:30 PM ET
  • Dial-in Information:1-888-334-5785
  • Replay: Available on Thursday, March 9, 2022 for 90 days athttps://smartglass-ir.com/

Key Comments:

  1. The Company’s fee income from licensing activities increased by $434,584 (52%) for the year ended December 31, 2021 to $1,263,034 as compared to $828,450 for the year ended December 31, 2020. Higher fees in the automotive, architectural and display markets were partially offset by lower fees in the aircraft market. Higher fee income in the architectural and automotive markets was predominantly from one-time settlements from two licensees for royalty payments due, as well as for a current special government contract in the automotive area.

  2. Total expenses decreased by $303,990, or approximately 9%, for the year ended December 31, 2021 as compared to the same period in 2020. 2021 was the seventh consecutive year that expenses were lower than the year before at Research Frontiers.

  3. The Company’s net loss decreased by $494,512 to $1,846,352 ($0.06 per common share) for the year ended December 31, 2021 as compared to $2,340,864 ($0.07 per common share) for the year ended December 31, 2020. The net loss for 2021 was Research Frontiers’ lowest net loss in 27 years.

  4. As of December 31, 2021, the Company had cash and marketable investments of approximately $3.0 million and working capital of approximately $3.7 million. The Company expects to have sufficient working capital for at least the next 22 months of operations.

  5. Since Research Frontiers last conference call, 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.

For more details, please see the Company’s Annual Report on Form 10-K 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 FacebookTwitterLinkedIn 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
Consolidated Balance Sheets
December 31, 2021 and 2020

  December 31, 2021  December 31, 2020 
       
Assets      
Current assets:        
Cash and cash equivalents $269,964  $4,772,705 
Marketable securities  2,755,111   - 
Royalties receivable, net of reserves of $1,016,678 in 2021 and $972,202 in 2020  831,636   598,292 
Prepaid expenses and other current assets  92,931   56,512 
Total current assets  3,949,642   5,427,509 
         
Fixed assets, net  92,954   121,772 
Operating lease ROU assets  469,824   616,442 
Deposits and other assets  33,567   33,567 
Total assets $4,545,987  $6,199,290 
         
Liabilities and Shareholders’ Equity        
         
Current liabilities:        
Current portion of operating lease liability $182,091  $166,377 
Accounts payable  66,460   33,410 
Accrued expenses and other  49,385   26,279 
Total current liabilities  297,936   226,066 
         
Operating lease liability, net of current portion  464,128   646,219 
Total liabilities  762,064   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  123,467,886   123,164,623 
Accumulated deficit  (119,687,128)  (117,840,776)
Total shareholders’ equity  3,783,923   5,327,005 
         
Total liabilities and shareholders’ equity $4,545,987  $6,199,290 


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Years ended December 31, 2021 and 2020

  2021  2020 
       
Fee income $1,263,034  $828,450 
         
Operating expenses  2,521,849   2,777,535 
Research and development  580,000   628,304 
Total expenses  3,101,849   3,405,839 
         
Operating loss  (1,838,815)  (2,577,389)
         
PPP loan forgiveness  -   202,052 
Net investment income (loss)  (7,537)  34,473 
         
Net loss $(1,846,352) $(2,340,864)
         
Basic and diluted net loss per common share $(0.06) $(0.07)
         
Weighted average number of common shares outstanding  31,646,520   31,487,785 


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Shareholders’ Equity
Years ended December 31, 2021 and 2020

                
  Common Stock  Additional  Accumulated    
  Shares  Amount  Paid-in 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  321,524   33   284,174   -   284,207 
                     
                     
Share-based compensation  -   -   327,554   -   327,554 
Net loss  -   -   -   (2,340,864)  (2,340,864)
Balance, December 31, 2020  31,575,786   3,158   123,164,623   (117,840,776)  5,327,005 
                     
Exercise of options  74,610   7   86,255   -   86,262 
Share-based compensation  -   -   217,008   -   217,008 
Net loss  -   -   -   (1,846,352)  (1,846,352)
Balance, December 31, 2021  31,650,396  $3,165  $123,467,886  $(119,687,128) $3,783,923 


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Years ended December 31, 2021 and 2020

  2021  2020 
Cash flows from operating activities:        
Net loss $(1,846,352) $(2,340,864)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  10,136   67,082 
Unrealized loss on marketable securities  28,522   - 
Share-based compensation  217,008   327,554 
Bad debts  44,476   81,367 
Other income - PPP loan forgiveness  -   (202,052)
Change in assets and liabilities:        
Royalty receivables  (277,819)  (23,597)
Prepaid expenses and other current assets  (36,420)  2,323 
Accounts payable and accrued expenses  56,156   (156,770)
Deferred revenue  -   (7,734)
Net cash used in operating activities  (1,804,293)  (2,252,691)
         
Cash flows from investing activities:        
Purchases of fixed assets  (1,077)  (56,536)
Purchases of marketable securities  (3,433,633)  - 
Sales of marketable securities  650,000   - 
Proceeds from sale of fixed asset  -   3,713 
Net cash used in investing activities  (2,784,710)  (52,823)
         
Cash flows from financing activities:        
Net proceeds from exercise of options and warrants  86,262   284,207 
Proceeds from PPP loan  -   202,052 
Net cash provided by financing activities  86,262   486,259 
         
Net decrease in cash and cash equivalents  (4,502,741)  (1,819,255)
         
Cash and cash equivalents at beginning of year  4,772,705   6,591,960 
Cash and cash equivalents at end of year $269,964  $4,772,705