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Research Frontiers Reports Fourth Quarter and Full Year 2020 Financial Results

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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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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