Research Frontiers Reports Second Quarter 2023 Financial Results and Will Host a Conference Call at 4:30p.m. Today
August 03, 2023 at 04:02 pm EDT
Share
WOODBURY, N.Y., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter and first half of 2023. 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
•
Date/Time: August 3, 2023, 4:30 PM ET
•
Dial-in Information:1-888-334-5785
•
Replay: Available on Friday, August 4, 2023 for 90 days at https://smartglass-ir.com/
Key Comments:
1.
Car models from Cadillac, Ferrari, McLaren and at least one other Asian car manufacturer are expected to be introduced into serial production in 2023, and additional automakers have begun projects using Research Frontiers patented SPD-SmartGlass technology in their panoramic glass roofs.
2.
The Company’s fee income from licensing activities for the three months ended June 30, 2023 increased by 116% from second quarter of 2022, and fee income from licensing activity for the first half of 2023 increased by 67% as compared to the first half of 2022. This increase in fee income was primarily the result of higher royalties from the automotive and aircraft markets.
3.
The Company expects revenue in all market segments to increase as new car models, aircraft, trains and other products using the Company’s SPD-SmartGlass technology are introduced into the market.
4.
At June 30, 2023, the Company had cash and cash equivalents and marketable securities of approximately $3.5 million, and working capital of $4.1 million. The Company has no debt and expects to have sufficient working capital for at least the next five years of operations.
For more details, please see the Company’s Annual 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.Celestiq is a trademark of General Motors.
CONTACT: Joseph M. Harary President and CEO Research Frontiers Inc. +1-516-364-1902 Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Balance Sheets
June 30, 2023 (Unaudited)
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
3,517,574
$
4,230,916
Royalties receivable, net of reserves of $1,158,450 in 2023 and$1,158,450 in 2022
666,157
589,599
Prepaid expenses and other current assets
231,764
100,973
Total current assets
4,415,495
4,921,488
Fixed assets, net
53,031
65,388
Operating lease ROU assets
250,201
323,509
Deposits and other assets
56,066
56,066
Total assets
$
4,774,793
$
5,366,451
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of operating lease liability
$
203,378
$
196,405
Accounts payable
45,787
71,079
Accrued expenses and other
23,930
34,379
Deferred revenue
12,794
-
Total current liabilities
285,889
301,863
Operating lease liability, net of current portion
163,825
267,723
Total liabilities
449,714
569,586
Shareholders’ equity:
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,509,287 in 2023 and 33,150,396 in 2022
3,351
3,315
Additional paid-in capital
127,634,493
127,150,027
Accumulated deficit
(123,312,765
)
(122,356,477
)
Total shareholders’ equity
4,325,079
4,796,865
Total liabilities and shareholders’ equity
$
4,774,793
$
5,366,451
RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Statements of Operations (Unaudited)
Six months ended June 30,
Three months ended June 30,
2023
2022
2023
2022
Fee income
$
433,215
$
259,339
$
185,040
$
85,511
Operating expenses
1,152,493
1,282,937
564,694
682,239
Research and development
294,832
295,257
145,610
146,432
Total expenses
1,447,325
1,578,194
710,304
828,671
Operating loss
(1,014,110
)
(1,318,855
)
(525,264
)
(743,160
)
Net investment income (loss)
57,822
(51,331
)
31,614
1,322
Net loss
$
(956,288
)
$
(1,370,186
)
$
(493,650
)
$
(741,838
)
Basic and diluted net loss per common share
$
(0.03
)
$
(0.04
)
$
(0.01
)
$
(0.02
)
Weighted average number of common shares outstanding
33,397,968
31,650,396
33,509,287
31,650,396
RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)
For the six months ended June 30, 2022 and 2023
Common Stock
Additional Paid-in
Accumulated
Shares
Amount
Capital
Deficit
Total
Balance, January 1, 2022
31,650,396
$
3,165
$
123,467,886
$
(119,687,128
)
$
3,783,923
Net loss
-
-
-
(1,370,186
)
(1,370,186
)
Balance, June 30, 2022
31,650,396
3,165
123,467,886
(121,057,314
)
2,413,737
Balance, January 1, 2023
33,150,396
$
3,315
$
127,150,027
$
(122,356,477
)
$
4,796,865
Exercise of warrants
358,891
36
484,466
-
484,502
Net loss
-
-
-
(956,288
)
(956,288
)
Balance, June 30, 2023
33,509,287
$
3,351
$
127,634,493
$
(123,312,765
)
$
4,325,079
For the three months ended June 30, 2022 and 2023
Common Stock
Additional Paid-in
Accumulated
Shares
Amount
Capital
Deficit
Total
Balance, March 31, 2022
31,650,396
$
3,165
$
123,467,886
$
(120,315,476
)
$
3,155,575
Net loss
-
-
-
(741,838
)
(741,838
)
Balance, June 30, 2022
31,650,396
3,165
123,467,886
(121,057,314
)
2,413,737
Balance, March 31, 2023
33,509,287
$
3,351
$
127,634,493
$
(122,819,115
)
$
4,818,729
Net loss
-
-
-
(493,650
)
(493,650
)
Balance, June 30, 2023
33,509,287
$
3,351
$
127,634,493
$
(123,312,765
)
$
4,325,079
RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Statements of Cash Flows (Unaudited)
For the six months ended June 30,
2023
2022
Cash flows from operating activities:
Net loss
$
(956,288
)
$
(1,370,186
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
13,661
14,409
Realized (gain) loss on marketable securities
(26,375
)
60,143
ROU asset amortization
73,308
73,005
Bad debt expense (recovery)
(5,000
)
156,772
Change in assets and liabilities:
Royalty receivables
(71,558
)
232,410
Prepaid expenses and other assets
(130,791
)
(142,424
)
Accounts payable and accrued expenses
(35,741
)
(22,063
)
Deferred revenue
12,794
7,171
Operating lease liability
(96,925
)
(89,016
)
Net cash used in operating activities
(1,222,915
)
(1,079,779
)
Cash flows from investing activities:
Purchases of fixed assets
(1,304
)
(1,067
)
Purchases of marketable securities
(2,965,160
)
-
Sales of marketable securities
2,991,535
2,694,968
Net cash provided by investing activities
25,071
2,693,901
Cash flows from financing activities:
Net proceeds from exercise of warrants
484,502
-
Net cash provided by financing activities
484,502
-
Net(decrease) increase in cash and cash equivalents
Research Frontiers Incorporated is a material science company, focused on the research, development, manufacturing and marketing of vision and light control technologies. The Company develops and licenses its patented suspended particle device (SPD-Smart) light-control technology to other companies that manufacture and/or market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, electronics to power end-products incorporating the film, or lamination services for, and the end-products themselves, such as smart windows, skylights and sunroofs. It has various companies that, in the aggregate, are licensed to primarily serve five SPD-Smart application areas (aerospace, architectural, automotive, marine and display products) in every country of the world. It has licensed its smart glass technology to approximately 40 companies that include chemical, material science and glass companies.