Research Frontiers Reports First Quarter 2021 Financial Results

·6 min read

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

WOODBURY, N.Y., May 06, 2021 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its first quarter of 2021. 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 and projects for its SPD-SmartGlass light-control technology.

  • Who: Joseph M. Harary, President & CEO

  • Date/Time: May 6, 2021, 4:30 PM ET

  • Dial-in Information: 1-888-334-5785

  • Replay: Available on Friday, May 7, 2021 for 90 days at SmartGlass-IR.com

Key Comments:

  1. Fee income from licensing activities for the three months ended March 31, 2021 was $213,123 as compared to $356,173 for the three months ended March 31, 2020. Lower fees in the automotive and aircraft markets as production of certain Daimler vehicles was curtailed due to the COVID-19 pandemic and as these vehicles approached the end of their model lifetimes, and stable levels of royalty revenues from the architectural market were partially offset by higher fee income from the display market.

  2. Total expenses decreased by $232,985, or approximately 23%, for the first quarter of 2021 as compared to the same period in 2020.

  3. The Company’s net loss decreased by $67,287 to $557,307 ($0.02 per common share) for the first quarter of 2021. This compares to a net loss of $624,594 ($0.02 per common share) in the first quarter of 2020. This continuous reduction in the Company’s net loss followed a net loss in 2020 which was Research Frontiers’ lowest net loss in 26 years.

  4. As of March 31, 2021, the Company had cash and cash equivalents of over $4.2 million and working capital of approximately $4.7 million. The Company expects to have sufficient working capital for at least the next 32 months of operations until at least late 2023.

  5. During the first quarter of 2021, General Motor’s Cadillac division announced that its new ultra-luxury all-electric flagship vehicle, the Celestiq, will offer a four quadrant SPD-SmartGlass roof. Also during the first quarter of 2021, licensees of Research Frontiers took steps to increase their production capacity for SPD emulsion, film and end-products.

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. Cadillac and Celestiq are trademarks of General Motors Corp.

CONTACT:
Joseph M. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets

March 31, 2021
(Unaudited)

December 31, 2020
(See Note 1)

Assets

Current assets:

Cash and cash equivalents

$

4,215,961

$

4,772,705

Royalty receivables, net of reserves of $972,202 in 2021 and $972,202 in 2020

737,870

598,292

Prepaid expenses and other current assets

85,271

56,512

Total current assets

5,039,102

5,427,509

Fixed assets, net

114,662

121,772

Operating lease ROU assets

579,788

616,442

Deposits and other assets

33,567

33,567

Total assets

$

5,767,119

$

6,199,290

Liabilities and Shareholders’ Equity

Current liabilities:

Current portion of operating lease liability

$

170,191

$

166,377

Accounts payable

41,606

33,410

Accrued expenses and other

68,633

26,279

Deferred revenue

27,945

-

Total current liabilities

308,375

226,066

Operating lease liability, net of current portion

602,784

646,219

Total liabilities

911,159

872,285

Shareholders’ equity:

Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,650,396 in 2021 and 31,575,786 in 2020

3,165

3,158

Additional paid-in capital

123,250,878

123,164,623

Accumulated deficit

(118,398,083

)

(117,840,776

)

Total shareholders’ equity

4,855,960

5,327,005

Total liabilities and shareholders’ equity

$

5,767,119

$

6,199,290

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)

For the three months ended

March 31, 2021

March 31, 2020

Fee income

$

213,123

$

356,173

Operating expenses

625,596

820,441

Research and development

145,178

183,318

Total expenses

770,774

1,003,759

Operating loss

(557,651

)

(647,586

)

Net investment income

344

22,992

Net loss

$

(557,307

)

$

(624,594

)

Basic and diluted net loss per common share

$

(0.02

)

$

(0.02

)

Weighted average number of common shares outstanding

31,634,890

31,323,205

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)

For the three months ended March 31, 2020 and 2021

Common Stock

Additional Paid-in

Accumulated

Shares

Amount

Capital

Deficit

Total

Balance, January 1, 2020

31,254,262

$

3,125

$

122,552,895

$

(115,499,912

)

$

7,056,108

Exercise of options and warrants

156,845

16

(16

)

-

-

Net loss

-

-

-

(624,594

)

(624,594

)

Balance, March 31, 2020

31,411,107

$

3,141

$

122,552,879

$

(116,124,506

)

$

6,431,514

Balance, January 1, 2021

31,575,786

$

3,158

$

123,164,623

$

(117,840,776

)

$

5,327,005

Exercise of options

74,610

7

86,255

-

86,262

Net loss

-

-

-

(557,307

)

(557,307

)

Balance, March 31, 2021

31,650,396

$

3,165

$

123,250,878

$

(118,398,083

)

$

4,855,960

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)

For the three months ended

March 31, 2021

March 31, 2020

Cash flows from operating activities:

Net loss

$

(557,307

)

$

(624,594

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

4,489

44,619

Bad debts expense (recovery)

-

(5,237

)

Change in assets and liabilities:

Royalty receivables

(139,578

)

(85,354

)

Prepaid expenses and other current assets

(28,759

)

(123,257

)

Accounts payable and accrued expenses

50,550

(35,589

)

Deferred revenue

27,945

71,189

Net cash used in operating activities

(642,660

)

(758,223

)

Cash flows from investing activities:

Purchases of fixed assets

(346

)

(55

)

Proceeds from sale of fixed asset

-

3,713

Net cash (used in) provided by investing activities

(346

)

3,658

Cash flows from financing activities:

Proceeds from exercise of options

86,262

-

Net cash provided by financing activities

86,262

-

Net decrease in cash and cash equivalents

(556,744

)

(754,565

)

Cash and cash equivalents at beginning of period

4,772,705

6,591,960

Cash and cash equivalents at end of period

$

4,215,961

$

5,837,395