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Research Frontiers Reports Fourth Quarter and Full Year 2018 Financial Results

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

WOODBURY, NY / ACCESSWIRE / March 14, 2019 / Research Frontiers Inc. (REFR) announced its financial results for its fourth quarter and full year ended December 31, 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: Thursday, March 14, 2019 at 4:30PM ET
  • Dial-in Information: 1-888-334-5785
  • Questions: Email to Questions@SmartGlass.com
  • Replay: Available on Friday, March 15, 2019 for 90 days at www.SmartGlass-IR.com

Key Comments:

  • In October 2018, Gauzy Ltd., a licensee of Research Frontiers, announced that it will be producing SPD-Smart light control film for the entire SPD-SmartGlass industry.
  • In February 2019, Gauzy Ltd. announced its second production facility in Stuttgart, Germany to produce SPD-Smart light control film for the entire SPD-SmartGlass industry.
  • The Company’s SPD-SmartGlass technology has been used in the roofs of at least four new car models over the past four months.
  • The Company’s fee income from licensing activities for the year ended December 31, 2018 was $1,488,642 as compared to $1,509,070 for the year ended December 31, 2017 representing a $20,428 decrease between these two periods.
  • Expenses decreased by $20,820 for the year ended December 31, 2018 to $3,906,861 from $3,927,681 for the year ended December 31, 2017. This represents the fourth consecutive year that expenses at the Company have decreased and the fifth consecutive year of lower operating losses for the Company compared to the prior year.
  • The Company’s net loss was $2,686,128 ($0.10 per common share) for the year ended December 31, 2018 as compared to $2,413,859 ($0.10 per common share) for the year ended December 31, 2017.
  • The Company raised approximately $3.3 million from the issuances of common stock and warrants and exercise of options and warrants in 2018.
  • The Company believes that its current cash and cash equivalents will fund its operations at least through the end of 2020.

For more details, please see the Company’s Quarterly Report on Form 10-K which was filed today with the SEC, the contents of which are incorporated by reference herein.

Research Frontiers (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.

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
Unaudited Consolidated Balance Sheets
December 31, 2018 and 2017




2018

2017







Assets













Current assets:






Cash and cash equivalents

$ 2,969,416

$ 1,737,847
Royalties receivable, net of reserves of $1,094,774 in 2018 and $1,051,424 in 2017


689,677


597,441
Prepaid expenses and other current assets


52,729


29,697









Total current assets


3,711,822


2,364,985









Fixed assets, net


313,177


482,561
Deposits and other assets


33,567


33,567
Total assets

$ 4,058,566

$ 2,881,113









Liabilities and Shareholders' Equity

















Current liabilities:








Accounts payable

$ 133,486

$ 58,090
Accrued expenses and other


273,606


254,833
Deferred revenue


50,570


824
Total current liabilities


457,662


313,747









Warrant liability


501,414


-









Shareholders' equity:








Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 27,665,211 in 2018 and 24,043,846 in 2017


2,767


2,404
Additional paid-in capital


114,787,657


111,627,789
Accumulated deficit


(111,690,934 )

(109,062,827 )
Total shareholders' equity


3,099,490


2,567,366









Total liabilities and shareholders' equity

$ 4,058,566

$ 2,881,113


RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Operations
Years ended December 31, 2018, 2017 and 2016




2018

2017

2016










Fee income

$ 1,488,642

$ 1,509,070

$ 1,236,097













Operating expenses


3,043,460


3,127,979


4,086,408
Research and development


863,401


799,702


1,417,634
Total Expenses


3,906,861


3,927,681


5,504,042













Operating loss


(2,418,219 )

(2,418,611 )

(4,267,945 )













Warrant market adjustment


(278,044 )

-


-
Net investment income


10,135


4,752


29,535













Net loss


(2,686,128 )

(2,413,859 )

(4,238,410 )













Basic and diluted net loss per common share

$ (0.10 )
$ (0.10 )
$ (0.18 )













Weighted average number of common shares outstanding


25,956,232


24,043,846


24,043,846





2018

2017

2016










Fee income

$ 1,488,642

$ 1,509,070

$ 1,236,097













Operating expenses


3,043,460


3,127,979


4,086,408
Research and development


863,401


799,702


1,417,634
Total Expenses


3,906,861


3,927,681


5,504,042













Operating loss


(2,418,219 )

(2,418,611 )

(4,267,945 )













Warrant market adjustment


(278,044 )

-


-
Net investment income


10,135


4,752


29,535













Net loss


(2,686,128 )

(2,413,859 )

(4,238,410 )













Basic and diluted net loss per common share

$ (0.10 )
$ (0.10 )
$ (0.18 )













Weighted average number of common shares outstanding


25,956,232


24,043,846


24,043,846


RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Shareholders' Equity
Years ended December 31, 2018, 2017 and 2016




2018

2017

2016










Fee income

$ 1,488,642

$ 1,509,070

$ 1,236,097













Operating expenses


3,043,460


3,127,979


4,086,408
Research and development


863,401


799,702


1,417,634
Total Expenses


3,906,861


3,927,681


5,504,042













Operating loss


(2,418,219 )

(2,418,611 )

(4,267,945 )













Warrant market adjustment


(278,044 )

-


-
Net investment income


10,135


4,752


29,535













Net loss


(2,686,128 )

(2,413,859 )

(4,238,410 )













Basic and diluted net loss per common share

$ (0.10 )
$ (0.10 )
$ (0.18 )













Weighted average number of common shares outstanding


25,956,232


24,043,846


24,043,846


RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Cash Flows
Years ended December 31, 2018, 2017 and 2016




2018

2017

2016
Cash flows from operating activities:









Net loss

$ (2,686,128 )
$ (2,413,859 )
$ (4,238,410 )
Adjustments to reconcile net loss to net cash used in operating activities:












Depreciation and amortization


181,047


175,643


188,501
Warrant market adjustment


278,044


-


-
Share based compensation


69,309


76,299


67,531
Loss on sale of fixed asset


-


-


1,775
Bad debts


43,350


56,415


480,563
Change in assets and liabilities:












Royalties receivable


(77,565 )

463,290


(283,035 )
Prepaid expenses and other current assets


(23,032 )

227,195


(123,427 )
Accounts payable and accrued expenses


94,169


(56,347 )

(98,941 )
Deferred revenue


49,746


824


-
Net cash used in operating activities


(2,071,060 )

(1,470,540 )

(4,005,443 )













Cash flows from investing activities:












Purchases of fixed assets


(11,663 )

(6,549 )

(11,715 )
Proceeds from sale of fixed asset


-


-


6,000
Proceeds from sale of investment


-


1,523,333


(9,549 )
Net cash (used in) provided by investing activities


(11,663 )

1,516,784


(15,264 )













Cash flows from financing activities:












Net proceeds from issuances of common stock and warrants and exercise of options and warrants


3,314,292


-


-
Net cash (used in) provided by financing activities


3,314,292


-


-













Net increase (decrease) in cash and cash equivalents


1,231,569


46,244


(4,020,707 )













Cash and cash equivalents at beginning of year


1,737,847


1,691,603


5,712,310
Cash and cash equivalents at end of year

$ 2,969,416

$ 1,737,847

$ 1,691,603


SOURCE: Research Frontiers Inc.



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