Press Release

Research Frontiers Reports Second Quarter 2019 Financial Results

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

Company Release - 8/8/2019 4:00 PM ET

WOODBURY, N.Y., Aug. 08, 2019 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter ended June 30, 2019. 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 8, 2019, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Friday, August 9, 2019 for 90 days at www.SmartGlass-IR.com

Key Second Quarter 2019 Comments:

1) In June 2019, Gauzy Ltd. announced that its second production facility in Stuttgart, Germany is on schedule to produce SPD-Smart light control film for the entire SPD-SmartGlass industry.

  • This state-of-the-art facility with specially-designed coating and curing areas that will give Gauzy the capacity to coat over one million square meters of SPD film per year.

  • Gauzy expects the new facility to be in production by the summer of 2019.

  • Joe Harary will discuss his recent visit to the new Gauzy facility, as well as the growing pipeline of products using Research Frontiers SPD-Smart technology, on our upcoming conference call. 

2) In May 2019 Gauzy led a $4.6 million investment in Research Frontiers by it and other accredited investors. Gauzy now owns 6.9% of the outstanding common stock of Research Frontiers, making it Research Frontiers second largest shareholder.

  • At June 30, 2019 the Company had cash and cash equivalents of $7,298,670 and working capital of $7,879,933.

  • Based on the Company’s existing cash burn rate, these assets would support the Company’s operations for at least the next 3 years.

3) The Company’s fee income from licensing activities for the six months ended June 30, 2019 was $719,692 as compared to $758,122 for the six months ended June 30, 2018.

  • The Company had higher royalty income from product sales in the automotive and aircraft markets, offset by lower fee income in other markets primarily due to non-recurring transactions.

  • For the six months ended June 30, 2019 expenses increased by $109,239, or 5.1%, as compared to the same period in 2018.

4) The Company’s net loss was $2,154,375 ($0.07 per common share) for the six months ended June 30, 2019 as compared to $1,363,658 ($0.05 per common share) for the six months ended June 30, 2018.

  • Excluding non-cash expenses to mark the warrants to their market value (primarily due to a higher stock price for the Company) and the non-cash compensation charges related to stock options granted to employees and directors, the net loss would have been $1,146,122, or $148,227 less, for the six months ended June 30, 2019 as compared as compared to the same period in 2018.

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.

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

RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
Unaudited

  June 30, 2019
(Unaudited)
  December 31, 2018 
        
Assets        
         
Current assets:        
Cash and cash equivalents $7,298,670  $2,969,416 
Royalties receivable, net of reserves of $1,117,441 in 2019
and $1,094,774 in 2018
  772,790   689,677 
Prepaid expenses and other current assets  102,472   52,729 
         
Total current assets  8,173,932   3,711,822 
         
Fixed assets, net  287,108   313,177 
Operating lease ROU assets  854,582   - 
Deposits and other assets  33,567   33,567 
Total assets $9,349,189  $4,058,566 
         
Liabilities and Shareholders’ Equity        
         
Current liabilities:        
Current portion of operating lease liability $159,017  $- 
Accounts payable  27,371   133,486 
Accrued expenses and other  71,709   273,606 
Deferred revenue  35,902   50,570 
Total current liabilities  293,999   457,662 
         
Operating lease liability, net of current portion  894,510   - 
Warrant liability  -   501,414 
Total liabilities  1,188,509   959,076 
         
Shareholders’ equity:        
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 3,103,443 in 2019
 and 27,665,211 in 2018
  3,103   2,767 
Additional paid-in capital  122,002,886   114,787,657 
Accumulated deficit  (113,845,309)  (111,690,934)
Total shareholders’ equity  8,160,680   3,099,490 
         
Total liabilities and shareholders’ equity $9,349,189  $4,058,566 
         


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited

  Six Months Ended June 30,  Three Months Ended June 30, 
  2019  2018  2019  2018 
             
Fee income $719,692  $758,122  $301,035  $324,853 
                 
Operating expenses  1,690,520   1,655,785   939,355   645,960 
Research and development  543,944   469,440   313,981   250,824 
Total Expenses  2,234,464   2,125,225   1,253,336   896,784 
                 
Operating loss  (1,514,772)  (1,367,103)  (952,301)  (571,931)
                 
Warrant market adjustment  (652,025)  -   (404,435)  - 
Net investment income  12,422   3,445   6,258   2,040 
                 
Net loss  (2,154,375)  (1,363,658)  (1,350,478)  (569,891)
                 
Basic and diluted net loss per common share $(0.07) $(0.05) $(0.05) $(0.02)
                 
Weighted average number of common shares outstanding  28,909,306   25,064,414   29,589,084   25,432,739 
                 


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited

  Six months ended June 30, 
  2019  2018 
Cash flows from operating activities:        
Net loss $(2,154,375) $(1,363,658)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  95,445   90,343 
Stock based compensation  356,228   69,309 
Provision for doubtful accounts  22,667   - 
Warrant market adjustment  652,025   - 
Change in assets and liabilities:        
Royalty receivables  (105,780)  21,122 
Prepaid expenses and other current assets  (49,743)  (78,310)
Accounts payable and accrued expenses  (115,475)  44,382 
Deferred revenue  (14,668)  102,024 
Net cash used in operating activities  (1,313,676)  (1,114,788)
         
Cash flows from investing activities:        
Purchases of fixed assets  (62,968)  (11,087)
Net cash used in investing activities  (62,968)  (11,087)
         
Cash flows from financing activities:        
Net proceeds from issuances of common stock and warrants and exercise of options and warrants  5,705,898   1,250,000 
Net cash provided by financing activities  5,705,898   1,250,000 
         
Net increase in cash and cash equivalents  4,329,254   124,125 
         
Cash and cash equivalents at beginning of period  2,969,416   1,737,847 
Cash and cash equivalents at end of period $7,298,670  $1,861,972 
         
Supplemental disclosure of non-cash activities:        
Right of use assets obtained in connection with the adoption of FASB ASC 842 $941,284  $- 

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Source: Research Frontiers Incorporated