Press Release

Research Frontiers Reports Second Quarter 2018 Financial Results

Company Release - 8/13/2018 4:04 PM ET

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

WOODBURY, N.Y., Aug. 13, 2018 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter ended June 30, 2018. 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: August 13, 2018, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Tuesday, August 14, 2018 for 90 days at www.SmartGlass-IR.com

Key Second Quarter 2018 Comments:

1)      The Company’s fee income from licensing activities for the three months ended June 30, 2018 was $324,853 as compared to $348,179 for the three months ended June 30, 2017 representing a $23,326 decrease between these two periods.

a.       This decrease in revenues was principally the result of the adoption of ASC 606 revenue recognition standard beginning with the first quarter of 2018, the adoption of which changed the timing of when we recognize revenues for our contracts with customers. We would have reported $365,048 of fee income, representing a $16,869 increase in the reported fee income for the period ending June 30, 2018 had we continued to use the accounting guidance used prior to the adoption of ASC 606.

2)      Fee income was down $108,416 in the second quarter of 2018 as compared to the prior first quarter of 2018 in all sectors other than the display and architectural sectors.

a.       Most of this sequential period decline was due to the recognition of all fee income associated with the Grant of Use performance obligation under our license agreements in the first quarter of 2018.

3)      The Company’s fee income from licensing activities for the six months ended June 30, 2018 was $758,122 as compared to $741,295 for the six months ended June 30, 2017 representing a $16,827 increase in fee income between these two periods.

a.       This increase in revenues was principally the result of higher revenues in the architectural and display sectors partial offset by slightly lower revenues recorded in the aircraft and automotive sectors due to seasonality.

b.      We would have reported $753,697 of fee income, representing a $4.423 decrease in the reported fee income for the period ending June 30, 2018 had we continued to use the accounting guidance used prior to the adoption of ASC 606.

4)      Expenses declined by $61,154, or (2.8%), for the 6-month period ending June 30, 2018 as compared to the same period in 2017. Expenses increased by $57,953, or 6.9%, for the 3-month period ending June 30, 2018 as compared to the same period in 2017.

5)      Cash and cash equivalents increased by $124,125 since the end of 2017 as a result of a financing completed in February 2018.

6)      On August 13, 2018, the Company announced that a group of investors led by a licensee of the Company's SPD technology agreed to make a $2,000,000 equity investment in the Company. With the addition of proceeds from this investment, the Company expects as of this filing to have sufficient working capital for at least the next 24 months 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.

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 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
Consolidated Balance Sheets
Unaudited

  June 30, 2018 December 31, 2017
Assets        
         
Current assets:        
Cash and cash equivalents $1,861,972  $1,737,847 
Royalties receivable, net of reserves of $1,051,424 in 2018 and 2017  634,340   597,441 
Prepaid expenses and other current assets  108,007   29,697 
         
Total current assets  2,604,319   2,364,985 
         
Fixed assets, net  403,305   482,561 
Deposits and other assets  33,567   33,567 
Total assets $3,041,191  $2,881,113 
         
Liabilities and Shareholders’ Equity        
         
Current liabilities:        
Accounts payable $80,499  $58,090 
Accrued expenses and other  276,806   254,833 
Deferred revenue  102,848   824 
Total current liabilities  460,153   313,747 
         
Shareholders’ equity:        
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 25,432,739 in 2018 and 24,043,846 in 2017  2,543   2,404 
Additional paid-in capital  112,946,959   111,627,789 
Accumulated deficit  (110,368,464)  (109,062,827)
Total shareholders’ equity  2,581,038   2,567,366 
         
Total liabilities and shareholders’ equity $3,041,191  $2,881,113 

RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited

  Six months ended Three months ended
  June 30, June 30,
  2018 2017 2018 2017
         
Fee income $758,122  $741,295  $324,853  $348,179 
                 
Operating expenses  1,655,785   1,773,036   645,960   636,781 
Research and development  469,440   413,343   250,824   202,050 
Total Expenses  2,125,225   2,186,379   896,784   838,831 
                 
Operating loss  (1,367,103)  (1,445,084)  (571,931)  (490,652)
                 
Net investment income  3,445   2,717   2,040   840 
                 
Net loss  (1,363,658)  (1,442,367)  (569,891)  (489,812)
                 
Basic and diluted net loss per common share $(0.05) $(0.06) $(0.02) $(0.02)
                 
Weighted average number of
common shares outstanding
  25,064,414   24,043,846   25,432,739   24,043,846 

RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited

  Six months ended
  June 30,
  2018 2017
Cash flows from operating activities:        
Net loss $(1,363,658) $(1,442,367)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  90,343   87,789 
Stock based compensation  69,309   - 
Change in assets and liabilities:        
Royalty receivables  21,122   325,638 
Prepaid expenses and other current assets  (78,310)  191,899 
Accounts payable and accrued expenses  44,382   1,046 
Deferred revenue  102,024   32,500 
Net cash used in operating activities  (1,114,788)  (803,495)
         
Cash flows from investing activities:        
Purchases of fixed assets  (11,087)  (5,822)
Proceeds from sale of investment  -   1,523,333 
Net cash provided by (used in) investing activities  (11,087)  1,517,511 
         
Cash flows from financing activities:        
         
Proceeds for issuance of common stock  1,250,000   - 
Net cash provided by financing activities  1,250,000   - 
         
Net increase in cash and cash equivalents  124,125   714,016 
         
Cash and cash equivalents at beginning of period  1,737,847   1,691,603 
Cash and cash equivalents at end of period $1,861,972  $2,405,619 


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

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Source: Research Frontiers Incorporated