Research Frontiers Reports Fourth Quarter and Full Year 2020 Financial Results
Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y., March 11, 2021 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its fourth quarter and year December 31, 2020. 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: March 11, 2021, 4:30 PM ET
Dial-in Information: 1-888-334-5785
Replay: Available on Friday, March 12, 2021 for 90 days at www.SmartGlass-IR.com
Key Comments:
Fee and other income for 2020 was $1,064,975. The Company’s fee income from licensing activities for the year ended December 31, 2020 was $828,450 as compared to $1,564,024 for the year ended December 31, 2019. 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, were partially offset by higher fee income from the display market.
Total expenses decreased by $1,307,524, or approximately 28%, for the year ended December 31, 2020 as compared to the same period in 2019.
The Company’s net loss decreased by $1,468,114 to $2,340,864 ($0.07 per common share) for the year ended December 31, 2020. This compares to a net loss of $3,808,978 ($0.13 per common share) in 2019. The net loss for 2020 was Research Frontiers’ lowest net loss in 26 years.
As of December 31, 2020, the Company had cash and cash equivalents of approximately $4.8 million and working capital of approximately $5.2 million. The Company expects to have sufficient working capital for at least the next 33 months of operations.
Since Research Frontiers last conference call, 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.
For more details, please see the Company’s Annual Report on Form 10-K 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
Consolidated Balance Sheets
December 31, 2020 and 2019
December 31, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,772,705 | $ | 6,591,960 | ||||
Royalties receivable, net of reserves of $972,202 in 2020 and $1,135,598 in 2019 | 598,292 | 656,062 | ||||||
Prepaid expenses and other current assets | 56,512 | 58,835 | ||||||
Total current assets | 5,427,509 | 7,306,857 | ||||||
Fixed assets, net | 121,772 | 141,720 | ||||||
Operating lease ROU assets | 616,442 | 773,989 | ||||||
Deposits and other assets | 33,567 | 33,567 | ||||||
Total assets | $ | 6,199,290 | $ | 8,256,133 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Current portion of operating lease liability | $ | 166,377 | $ | 163,236 | ||||
Accounts payable | 33,410 | 169,750 | ||||||
Accrued expenses and other | 26,279 | 46,709 | ||||||
Deferred revenue | - | 7,734 | ||||||
Total current liabilities | 226,066 | 387,429 | ||||||
Operating lease liability, net of current portion | 646,219 | 812,596 | ||||||
Total liabilities | 872,285 | 1,200,025 | ||||||
Shareholders’ equity: | ||||||||
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,575,786 in 2020 and 31,254,262 in 2019 | 3,158 | 3,125 | ||||||
Additional paid-in capital | 123,164,623 | 122,552,895 | ||||||
Accumulated deficit | (117,840,776 | ) | (115,499,912 | ) | ||||
Total shareholders’ equity | 5,327,005 | 7,056,108 | ||||||
Total liabilities and shareholders’ equity | $ | 6,199,290 | $ | 8,256,133 | ||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Years ended December 31, 2020 and 2019
2020 | 2019 | |||||||
Fee income | $ | 828,450 | $ | 1,564,024 | ||||
Operating expenses | 2,777,535 | 3,677,740 | ||||||
Research and development | 628,304 | 1,035,623 | ||||||
Total expenses | 3,405,839 | 4,713,363 | ||||||
Operating loss | (2,577,389 | ) | (3,149,339 | ) | ||||
Warrant market adjustment | - | (652,025 | ) | |||||
Loss on disposal of fixed asset | - | (50,666 | ) | |||||
PPP loan forgiveness | 202,052 | - | ||||||
Net investment income | 34,473 | 43,052 | ||||||
Net loss | $ | (2,340,864 | ) | $ | (3,808,978 | ) | ||
Basic and diluted net loss per common share | $ | (0.07 | ) | $ | (0.13 | ) | ||
Weighted average number of common shares outstanding | 31,487,785 | 30,011,556 | ||||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Shareholders’ Equity
Years ended December 31, 2020 and 2019
Common Stock | Additional | Accumulated | ||||||||||||||||||
Shares | Amount | Paid-in Capital | Deficit | Total | ||||||||||||||||
Balance, January 1, 2019 | 27,665,211 | $ | 2,767 | $ | 114,787,657 | $ | (111,690,934 | ) | $ | 3,099,490 | ||||||||||
Exercise of options and warrants | 1,587,814 | 158 | 1,170,388 | - | 1,170,546 | |||||||||||||||
Issuance of capital stock | 2,001,237 | 200 | 4,599,799 | - | 4,599,999 | |||||||||||||||
Warrants converted to equity | - | - | 1,153,439 | - | 1,153,439 | |||||||||||||||
Share-based compensation | - | - | 841,612 | - | 841,612 | |||||||||||||||
Net loss | - | - | - | (3,808,978 | ) | (3,808,978 | ) | |||||||||||||
Balance, December 31, 2019 | 31,254,262 | 3,125 | 122,552,895 | (115,499,912 | ) | 7,056,108 | ||||||||||||||
Exercise of options and warrants | 321,524 | 33 | 284,174 | - | 284,207 | |||||||||||||||
Share-based compensation | - | - | 327,554 | - | 327,554 | |||||||||||||||
Net loss | - | - | - | (2,340,864 | ) | (2,340,864 | ) | |||||||||||||
Balance, December 31, 2020 | 31,575,786 | $ | 3,158 | $ | 123,164,623 | $ | (117,840,776 | ) | $ | 5,327,005 | ||||||||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Years ended December 31, 2020 and 2019
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (2,340,864 | ) | $ | (3,808,978 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 67,082 | 195,377 | ||||||
Warrant market adjustment | - | 652,025 | ||||||
Share-based compensation | 327,554 | 841,612 | ||||||
Loss on disposal of fixed asset | - | 50,666 | ||||||
Bad debts | 81,367 | 156,636 | ||||||
Other income - PPP loan forgiveness | (202,052 | ) | - | |||||
Change in assets and liabilities: | ||||||||
Royalty receivables | (23,597 | ) | (123,021 | ) | ||||
Prepaid expenses and other current assets | 2,323 | (6,104 | ) | |||||
Accounts payable and accrued expenses | (156,770 | ) | 1,904 | |||||
Deferred revenue | (7,734 | ) | (42,836 | ) | ||||
Net cash used in operating activities | (2,252,691 | ) | (2,082,719 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of fixed assets | (56,536 | ) | (65,282 | ) | ||||
Proceeds from sale of fixed asset | 3,713 | - | ||||||
Net cash used in investing activities | (52,823 | ) | (65,282 | ) | ||||
Cash flows from financing activities: | ||||||||
Net proceeds from issuances of common stock and warrants and exercise of options and warrants | 284,207 | 5,770,545 | ||||||
Proceeds from PPP loan | 202,052 | - | ||||||
Net cash provided by financing activities | 486,259 | 5,770,545 | ||||||
Net (decrease) increase in cash and cash equivalents | (1,819,255 | ) | 3,622,544 | |||||
Cash and cash equivalents at beginning of year | 6,591,960 | 2,969,416 | ||||||
Cash and cash equivalents at end of year | $ | 4,772,705 | $ | 6,591,960 | ||||
