Research Frontiers Reports Third Quarter 2022 Financial Results and Will Host a Conference Call at 4:30p.m. Today

Woodbury, New York, UNITED STATES


WOODBURY, N.Y., Nov. 03, 2022 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its September 30, 2022 third quarter. 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 3, 2022, 4:30 PM ET
 Dial-in Information:1-888-334-5785
 Replay: Available on Friday, November 4, 2022 for 90 days at https://smartglass-ir.com/

Key Comments:

1.After adjusting for one-time events relating to the timing of payments and new and amended license agreements entered into in 2021, fee income was higher in the third quarter of 2022 as compared to the third quarter of 2021, primarily as a result of higher fee income from the automotive and aircraft segments. Fee income was also higher in the third quarter of 2022 as compared to the second quarter of 2022, primarily as a result of higher fee income from the automotive and aircraft segments.
  
2.This year Cadillac had multiple high-profile public exhibitions of its Cadillac Celestiq which enters series production next year and will be produced at the General Motors Tech Center in Warren Michigan. The Celestiq is Cadillac’s all-electric luxury flagship, and features a four-quadrant SPD-SmartGlass roof using Research Frontiers variable tint technology. An additional car was introduced by another European automobile manufacturer in the third quarter of 2022 using Research Frontiers SPD-SmartGlass technology in its panoramic glass roof.
  
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.Operating expenses decreased by $83,548, and research and development expenses increased by $13,941 in the third quarter of 2022 as compared to the same period in 2021.
  
5.The Company’s net loss was $483,729 ($0.02 per common share) for the three months ended September 30, 2022 as compared to net income of $21,614 ($0.00 per common share) for the three months ended September 30, 2021. The Company’s net loss was $258,109 lower in the third quarter of 2022 compared to the previous quarter.
  
6.As of September 30, 2022, the Company had cash and cash equivalents of approximately $4.8 million and working capital of approximately $5.2 million. 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 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, 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. Celestiq is a trademark of General Motors.

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, 2022  December 31, 2021 
  (Unaudited)    
       
Assets        
Current assets:        
Cash and cash equivalents $4,798,150  $269,964 
Marketable securities  -   2,755,111 
Royalty receivables, net of reserves of $1,168,450 in 2022 and $1,016,678 in 2021  534,529   831,636 
Prepaid expenses and other current assets  166,571   92,931 
Total current assets  5,499,250   3,949,642 
         
Fixed assets, net  72,556   92,954 
Operating lease ROU assets  360,164   469,824 
Deposits and other assets  33,567   33,567 
Total assets $5,965,537  $4,545,987 
         
Liabilities and Shareholders’ Equity        
         
Current liabilities:        
Current portion of operating lease liability $193,182  $182,091 
Accounts payable  38,010   66,460 
Accrued expenses and other  32,946   49,385 
Deferred revenue  3,586   - 
Total current liabilities  267,724   297,936 
         
Operating lease liability, net of current portion  317,805   464,128 
Total liabilities  585,529   762,064 
         
Shareholders’ equity:        
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,150,396 in 2022 and 31,650,396 in 2021  3,315   3,165 
Additional paid-in capital  126,917,736   123,467,886 
Accumulated deficit  (121,541,043)  (119,687,128)
Total shareholders’ equity  5,380,008   3,783,923 
         
Total liabilities and shareholders’ equity $5,965,537  $4,545,987 


See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)

  Nine months ended September 30,  Three months ended September 30, 
  2022  2021  2022  2021 
             
Fee income $409,783  $1,050,526  $150,443  $723,465 
                 
Operating expenses  1,770,414   1,699,698   487,476   571,024 
Research and development  444,413   420,203   149,156   135,215 
Total expenses  2,214,827   2,119,901   636,632   706,239 
                 
Operating income (loss)  (1,805,044)  (1,069,375)  (486,189)  17,226 
                 
Net investment (loss) income  (48,871)  5,747   2,460   4,388 
                 
Net income (loss) $(1,853,915) $(1,063,628) $(483,729) $21,614 
                 
Basic and diluted net income (loss) per common share $(0.06) $(0.03) $(0.02) $0.00 
                 
Weighted average number of common shares outstanding  31,710,179   31,645,227   31,829,744   31,650,396 


See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)

For the nine months ended September 30, 2021 and 2022

  Common Stock  Additional
Paid-in
  Accumulated    
  Shares  Amount  Capital  Deficit  Total 
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  -   -   -   (1,063,628)  (1,063,628)
Balance, September 30, 2021  31,650,396  $3,165  $123,250,878  $(118,904,404) $4,349,639 
                     
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 


For the three months ended September 30, 2021 and 2022

  Common Stock  Additional Paid-in  Accumulated    
  Shares  Amount  Capital  Deficit  Total 
Balance, July 1, 2021  31,650,396  $3,165  $123,250,878  $(118,926,018) $4,328,025 
                     
Net income  -   -   -   21,614   21,614 
Balance, September 30, 2021  31,650,396  $3,165  $123,250,878  $(118,904,404) $4,349,639 
                     
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 


See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)

  For the nine months ended September 30, 
  2022  2021 
Cash flows from operating activities:        
Net loss $(1,853,915) $(1,063,628)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  21,614   22,414 
Realized loss on marketable securities  60,143   - 
Unrealized loss on marketable securities  -   5,545 
Bad debts  151,772   - 
ROU asset amortization  109,660   109,963 
Change in assets and liabilities:        
Royalty receivables  145,335   (754,679)
Prepaid expenses and other current assets  (73,640)  (102,183)
Accounts payable and accrued expenses  (44,889)  24,959 
Deferred revenue  3,586   13,304 
Operating lease liability  (135,232)  (123,539)
Net cash used in operating activities  (1,615,566)  (1,867,844)
         
Cash flows from investing activities:        
Purchases of fixed assets  (1,216)  (966)
Purchases of marketable securities  -   (3,433,633)
Proceeds from sales of marketable securities  2,694,968   650,000 
Net cash provided by (used in) investing activities  2,693,752   (2,784,599)
         
Cash flows from financing activities:        
Proceeds from sale of common stock and warrants  3,450,000   - 
Proceeds from exercise of options  -   86,262 
Net cash provided by financing activities  3,450,000   86,262 
         
Net increase (decrease) in cash and cash equivalents  4,528,186   (4,566,181)
         
Cash and cash equivalents at beginning of period  269,964   4,772,705 
Cash and cash equivalents at end of period $4,798,150  $206,524 

See accompanying notes to condensed consolidated financial statements.