Press Release

Research Frontiers Reports Third Quarter 2018 Financial Results

Company Release - 11/8/2018 4:05 PM ET

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

WOODBURY, N.Y, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter ended September 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: November 8, 2018, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Friday, November 9, 2018 for 90 days at www.SmartGlass-IR.com

Key Third Quarter 2018 Comments:

1)      The Company’s revenues for the third quarter of 2018 were up almost 11% from the second quarter of 2018 (and would be up almost 19% had the revenue recognition standard in effect last year been applied). This increase in revenues was principally the result of higher levels of activity in the automotive sector.

2)      Operating expenses declined by $151,571 for the first nine months of 2018 as compared to the same period in 2017.

3)      Significant recent developments include:             

a.       Inauguration of a new SPD-Smart light control film production line by Research Frontiers licensee Gauzy

b.      New SPD-Smart product launches for the train market in September and for the aircraft, automotive, architectural and museum markets in October.

c.       $2 million equity investment led by Research Frontiers licensee Gauzy Ltd. giving the company sufficient working capital for at least the next 18-24 months.             

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.

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
Consolidated Balance Sheets
Unaudited

  September 30, 2018  December 31, 2017 
Assets      
       
Current assets:        
Cash and cash equivalents $3,400,842  $1,737,847 
Royalties receivable, net of reserves of $1,051,424 in 2018 and 2017  709,811   597,441 
Prepaid expenses and other current assets  96,790   29,697 
         
Total current assets  4,207,443   2,364,985 
         
Fixed assets, net  358,456   482,561 
Deposits and other assets  33,567   33,567 
Total assets $4,599,466  $2,881,113 
         
Liabilities and Shareholders’ Equity        
         
Current liabilities:        
Accounts payable $56,602  $58,090 
Accrued expenses and other  263,420   254,833 
Deferred revenue  38,966   824 
Total current liabilities  358,988   313,747 
         
Warrant liability  510,001   - 
         
Shareholders’ equity:        
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 27,662,211 in 2018 and 24,043,846 in 2017  2,766   2,404 
Additional paid-in capital  114,784,477   111,627,789 
Accumulated deficit  (111,056,766)  (109,062,827)
Total shareholders’ equity  3,730,477   2,567,366 
         
Total liabilities and shareholders’ equity $4,599,466  $2,881,113 


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited

  Nine months ended  Three months ended 
  September 30,  September 30, 
  2018  2017  2018  2017 
             
Fee income $1,117,849  $1,229,631  $359,725  $488,336 
                 
Operating expenses  2,228,757   2,380,328   572,968   607,291 
Research and development  660,086   598,638   190,647   185,296 
Total Expenses  2,888,843   2,978,966   763,615   792,587 
                 
Operating loss  (1,770,994)  (1,749,335)  (403,890)  (304,251)
                 
Net investment income  5,665   3,830   2,220   1,113 
                 
Warrant market adjustment  (286,631  -   (286,631  - 
                 
Net loss  (2,051,960)  (1,745,505)  (688,301)  (303,138)
                 
Basic and diluted net loss per common share $(0.08) $(0.07) $(0.03) $(0.01)
                 
Weighted average number of common shares outstanding  25,380,466   24,043,846   26,002,263   24,043,846 
       


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited

  Nine months ended 
  September 30, 
  2018  2017 
Cash flows from operating activities:        
Net loss $(2,051,960) $(1,745,505)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  135,400   131,725 
Warrant market adjustment  286,631   - 
Stock based compensation  69,309   - 
Bad debts  -   (1,785)
Change in assets and liabilities:        
Royalty receivables  (54,350)  336,739 
Prepaid expenses and other current assets  (67,093)  205,825 
Accounts payable and accrued expenses  7,099   46,666 
Deferred revenue  38,142   5,815 
Net cash used in operating activities  (1,636,821)  (1,020,520)
         
Cash flows from investing activities:        
Purchases of fixed assets  (11,295)  (6,362)
Proceeds from sale of investment  -   1,523,333 
Net cash provided by (used in) investing activities  (11,295)  1,516,971 
         
Cash flows from financing activities:        
         
Proceeds for issuance of common stock  3,026,630   - 
Proceeds for issuance of common stock  223,370   - 
Proceeds from exercise of warrants  61,111   - 
Net cash provided by financing activities  3,311,111   - 
         
Net increase in cash and cash equivalents  1,662,995   496,451 
         
Cash and cash equivalents at beginning of period  1,737,847   1,691,603 
Cash and cash equivalents at end of period $3,400,842  $2,188,054 

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Source: Research Frontiers Incorporated