Press Release

Research Frontiers Reports Second Quarter 2017 Financial Results

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

Company Release - 8/3/2017 4:05 PM ET

WOODBURY, NY -- (Marketwired) -- 08/03/17 -- Research Frontiers Inc. (NASDAQ: REFR) announced its financial results for its second quarter ended June 30, 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 the recent announcement by ONE Aviation regarding its selection of the ALTEOS electronically dimmable window (EDW) by PPG using SPD-SmartGlass technology for its new Eclipse 700 aircraft.

  • Who: Joseph M. Harary, President & CEO, Seth Van Voorhees, CFO
  • Date/Time: August 3, 2017, 4:30 PM ET
  • Dial-in Information: 1-412-717-9591
  • Replay: Available on Friday, August 4, 2017 for 90 days at www.SmartGlass-IR.com

Key Second Quarter 2017 Comments:

1. Global aircraft manufacturer ONE Aviation has announced the selection of the ALTEOS electronically dimmable window (EDW) by PPG using SPD-SmartGlass technology for its new Eclipse 700 aircraft. This is the first announced project from the partnership between PPG and Research Frontiers' licensee Vision Systems that was announced in May of this year.

2. The Company's fee income from licensing activities for the six months ended June 30, 2017 was $741,295 as compared to $653,564 for the six months ended June 30, 2016 representing a $87,731 increase between these two periods. This increase was principally the result of higher revenues from licensees in the aircraft, architectural, automotive and marine sectors as well as revenue from a new licensee focused on the transparent display sector.

The Company expects that lower pricing of the Company's technology could expand the market opportunities, adoption rates, and revenues for its technology in automotive and non-automotive applications. The Company is working with all levels of licensees in the supply chain to further reduce the cost of final products using the Company's technology.

Operating expenses decreased by $279,060 for the six months ended June 30, 2017 to $1,773,036 from $2,052,096 for the six months ended June 30, 2016. This decrease was principally the result of lower patent and patent litigation costs as well as lower payroll and related costs and lower investor relations and marketing costs.

Research and development expenditures decreased by $500,446 to $413,343 for the six months ended June 30, 2017 from $913,789 for the six months ended June 30, 2016. This decrease was principally the result of lower payroll costs.

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.

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. ALTEOS is a trademark of PPG.

RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
Unaudited
June 30, 2017 December 31, 2016
Assets
Current assets:
Cash and cash equivalents $ 2,405,619 $ 1,691,603
Short-term investments - 1,523,333
Royalty receivables, net of reserves of $1,035,009 in 2017 and $1,110,020 in 2016 791,508 1,117,146
Prepaid expenses and other current assets 64,993 256,892
Total current assets 3,262,120 4,588,974
Fixed assets, net 569,688 651,655
Deposits and other assets 33,567 33,567
Total assets $ 3,865,375 $ 5,274,196
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 78,326 $ 29,932
Accrued expenses and other 291,990 339,338
Deferred revenue 32,500 -
Total current liabilities 402,816 369,270
Shareholders' equity:
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 24,043,846 shares in 2017 and 2016 2,404 2,404
Additional paid-in capital 111,551,490 111,551,490
Accumulated deficit (108,091,335 ) (106,648,968 )
Total shareholders' equity 3,462,559 4,904,926
Total liabilities and shareholders' equity $ 3,865,375 $ 5,274,196
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited
Six months ended Three months ended
June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016
Fee income $ 741,295 $ 653,564 $ 348,179 $ 244,432
Operating expenses 1,773,036 2,052,096 636,781 865,590
Research and development 413,343 913,789 202,050 503,572
Total Expenses 2,186,379 2,965,885 838,831 1,369,162
Operating loss (1,445,084 ) (2,312,321 ) (490,652 ) (1,124,730 )
Net investment income 2,717 18,870 840 7,972
Net loss $ (1,442,367 ) $ (2,293,451 ) $ (489,812 ) $ (1,116,758 )
Basic and diluted net loss per common share $ (0.06 ) $ (0.10 ) $ (0.02 ) $ (0.05 )
Weighted average number of common shares outstanding 24,043,846 24,043,846 24,043,846 24,043,846
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited
Six months ended
June 30, 2017 June 30, 2016
Cash flows from operating activities:
Net loss $ (1,442,367 ) $ (2,293,451 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 87,789 94,693
Loss on sale of asset - 1,774
Change in assets and liabilities:
Royalty receivables 325,638 (17,151 )
Prepaid expenses and other current assets 191,899 58,476
Deferred revenue 32,500 20,000
Accounts payable and accrued expenses 1,046 223,299
Net cash used in operating activities (803,495 ) (1,912,360 )
Cash flows from investing activities:
Purchases of fixed assets (5,822 ) (5,018 )
Proceeds from sale of investments and change in investments 1,523,333 (5,141 )
Net cash provided by (used in) investing activities 1,517,511 (10,159 )
Net increase (decrease) in cash and cash equivalents 714,016 (1,922,519 )
Cash and cash equivalents at beginning of year 1,691,603 5,712,310
Cash and cash equivalents at end of period $ 2,405,619 $ 3,789,791

CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com

Source: Research Frontiers Inc.