Press Release

Research Frontiers Reports Fourth Quarter and Full Year 2017 Financial Results

Company Release - 3/8/2018 4:05 PM ET

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

WOODBURY, N.Y., March 08, 2018 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq:REFR) announced its financial results for its fourth quarter and full year ended December 31, 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 recent developments.

  • Who: Joseph M. Harary, President & CEO, Seth Van Voorhees, CFO
  • Date/Time: Thursday, March 8, 2018 at 4:30PM ET
  • Dial-in Information: 1-412-717-9591
  • Questions: Email to Questions@SmartGlass.com
  • Replay: Available on Friday, March 9, 2018 for 90 days at www.SmartGlass-IR.com

Key Comments:

  • The Company’s fee income for 2017 increased by $272,973 (+22%) to $1,509,070 as compared to $1,236,097 for 2016
     
    • A substantial majority of this increase was the result of increase fees earned from licensees focused in automotive, marine, display and architectural industries which was partially offset by slightly lower level of fee income from licensees focused in the aircraft industry (which the Company believes to be temporary).
       
  • Expenses decreased by $1,576,361 (-29%) for 2017 to $3,927,681 from $5,504,042 for 2016.

    • A substantial majority of this decrease was the result of cost reduction initiatives undertaken by the Company that resulted in lower payroll, marketing, investor relations, and patent expense, as well as lower bad debt expenses in 2017.
       
  • The Company’s net loss per common share in 2017 was cut in almost half from the prior year. In 2017 the Company’s net loss was $2,413,859 ($0.10 per common share) as compared to $4,238,410 ($0.18 per common share) in 2016.
     
  • Net cash used in operating activities decreased by $2,534903 (-63%) to $1,470,540 for 2017 from $4,005,443 for 2016.
     
  • In February 2018, a small group of long-time shareholders of the Company made an interest-free long-term loan of $1.25 million to the Company which is expected to convert into common stock at a price equal to the market price of the Company’s common stock when the loan was made plus warrants exercisable at a premium to such market price.
     
  • The Company believes that its current cash and cash equivalents will fund its operations until at least the fourth quarter of 2019.   

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.

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

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.



RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Balance Sheets
December 31, 2017 and 2016
 
  2017  2016 
Assets        
         
Current assets:        
Cash and cash equivalents $1,737,847  $1,691,603 
Short-term investments  -   1,523,333 
Royalties receivable, net of reserves of $1,051,424 in 2017
and $1,110,020 in 2016
  597,441   1,117,146 
Prepaid expenses and other current assets  29,697   256,892 
         
Total current assets  2,364,985   4,588,974 
         
Fixed assets, net  482,561   651,655 
Deposits and other assets  33,567   33,567 
Total assets $2,881,113  $5,274,196 
         
Liabilities and Shareholders’ Equity        
         
Current liabilities:        
Accounts payable $58,090  $29,932 
Accrued expenses and other  254,833   339,338 
Deferred revenue  824   - 
Total current liabilities  313,747   369,270 
         
Shareholders’ equity:        
         
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 24,043,846 in 2017 and 2016  2,404   2,404 
Additional paid-in capital  111,627,789   111,551,490 
Accumulated deficit  (109,062,827)  (106,648,968)
Total shareholders’ equity  2,567,366   4,904,926 
         
Total liabilities and shareholders’ equity $2,881,113  $5,274,196 


RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Operations
Years ended December 31, 2017, 2016 and 2015
 
  2017  2016  2015 
          
Fee income $1,509,070  $1,236,097  $2,007,482 
             
Operating expenses  3,127,979   4,086,408   4,742,166 
Research and development  799,702   1,417,634   1,588,491 
Total Expenses  3,927,681   5,504,042   6,330,657 
             
Operating loss  (2,418,611)  (4,267,945)  (4,323,175)
             
Net investment income  4,752   29,535   43,319 
             
Net loss $(2,413,859) (4,238,410) $(4,279,856)
             
Basic and diluted net loss per common share $(0.10) $(0.18) $(0.18)
             
Weighted average number of common shares outstanding  24,043,846   24,043,846   24,007,974 


RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Shareholders’ Equity
Years ended December 31, 2017, 2016 and 2015
 
   Common Stock
  Additional
Paid-in
   Accumulated    
   Shares Amount  Capital   Deficit  Total 
             
Balance, December 31, 2014  23,924,465  $2,392  $110,210,480  $(98,130,702) $12,082,170 
                     
Exercise of options and warrants  119,381   12   548,463   -   548,475 
Share-based compensation  -   -   725,016   -   725,016 
Net Loss  -   -   -   (4,279,856)  (4,279,856)
Balance, December 31, 2015  24,043,846   2,404   111,483,959   (102,410,558)  9,075,805 
                     
Share-based compensation  -   -   67,531   -   67,531 
Net Loss  -   -   -   (4,238,410)  (4,238,410)
Balance, December 31, 2016  24,043,846   2,404   111,551,490   (106,648,968)  4,904,926 
                     
Share-based compensation  -   -   76,299   -   76,299 
Net Loss  -   -   -   (2,413,859)  (2,413,859)
Balance, December 31, 2017  24,043,846  $2,404  $111,627,789  $(109,062,827) $2,567,366 


RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Cash Flows
Years ended December 31, 2017, 2016 and 2015
 
  2017  2016  2015 
Cash flows from operating activities:            
Net loss $(2,413,859) $(4,238,410) $(4,279,856)
Adjustments to reconcile net loss to net cash used in operating activities:            
Depreciation and amortization  175,643   188,501   140,170 
Stock based compensation  76,299   67,531   725,016 
Loss on sale of fixed asset  -   1,775   - 
Bad debts, net of recovery  30,015   480,563   324,286 
Change in assets and liabilities:            
Royalty receivables  476,490   (283,035)  (463,743)
Prepaid expenses and other current assets  227,195   (123,427)  (12,213)
Accounts payable and accrued expenses  (56,347)  (98,941)  (14,472)
Deferred revenue  824   -   - 
Net cash used in operating activities  (1,470,540)  (4,005,443)  (3,580,812)
             
Cash flows from investing activities:            
Purchases of fixed assets  (6,549)  (11,715)  (316,185)
Purchase of investments  -   -   - 
Proceeds from sale of fixed asset  -   6,000     
Proceeds from sale of investment  1,523,333   (9,549)  1,491,295 
Net cash provided by (used in) investing activities  1,516,784   (15,264)  1,175,110 
             
Cash flows from financing activities:            
Net proceeds from issuances of common stock and exercise of options and warrants  -   -   548,475 
Net cash provided by financing activities  -   -   548,475 
             
Net (decrease) increase in cash and cash equivalents  46,244   (4,020,707)  (1,857,227)
             
Cash and cash equivalents at beginning of year  1,691,603   5,712,310   7,569,537 
Cash and cash equivalents at end of year $1,737,847  $1,691,603  $5,712,310 

 

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Source: Research Frontiers Incorporated