Research Frontiers Reports Third Quarter 2023 Financial Results and Will Host a Conference Call at 4:30p.m. Today


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