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Research Frontiers Reports Second Quarter 2019 Financial Results

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

WOODBURY, N.Y., Aug. 08, 2019 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (REFR) announced its financial results for its second quarter ended June 30, 2019. 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: August 8, 2019, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Friday, August 9, 2019 for 90 days at www.SmartGlass-IR.com

Key Second Quarter 2019 Comments:

1) In June 2019, Gauzy Ltd. announced that its second production facility in Stuttgart, Germany is on schedule to produce SPD-Smart light control film for the entire SPD-SmartGlass industry.

  • This state-of-the-art facility with specially-designed coating and curing areas that will give Gauzy the capacity to coat over one million square meters of SPD film per year.

  • Gauzy expects the new facility to be in production by the summer of 2019.

  • Joe Harary will discuss his recent visit to the new Gauzy facility, as well as the growing pipeline of products using Research Frontiers SPD-Smart technology, on our upcoming conference call. 

2) In May 2019 Gauzy led a $4.6 million investment in Research Frontiers by it and other accredited investors. Gauzy now owns 6.9% of the outstanding common stock of Research Frontiers, making it Research Frontiers second largest shareholder.

  • At June 30, 2019 the Company had cash and cash equivalents of $7,298,670 and working capital of $7,879,933.

  • Based on the Company’s existing cash burn rate, these assets would support the Company’s operations for at least the next 3 years.

3) The Company’s fee income from licensing activities for the six months ended June 30, 2019 was $719,692 as compared to $758,122 for the six months ended June 30, 2018.

  • The Company had higher royalty income from product sales in the automotive and aircraft markets, offset by lower fee income in other markets primarily due to non-recurring transactions.

  • For the six months ended June 30, 2019 expenses increased by $109,239, or 5.1%, as compared to the same period in 2018.

4) The Company’s net loss was $2,154,375 ($0.07 per common share) for the six months ended June 30, 2019 as compared to $1,363,658 ($0.05 per common share) for the six months ended June 30, 2018.

  • Excluding non-cash expenses to mark the warrants to their market value (primarily due to a higher stock price for the Company) and the non-cash compensation charges related to stock options granted to employees and directors, the net loss would have been $1,146,122, or $148,227 less, for the six months ended June 30, 2019 as compared as compared to the same period in 2018.

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 (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.

CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
Unaudited

    June 30, 2019
(Unaudited)
    December 31, 2018  
               
Assets                
                 
Current assets:                
Cash and cash equivalents   $ 7,298,670     $ 2,969,416  
Royalties receivable, net of reserves of $1,117,441 in 2019
and $1,094,774 in 2018
    772,790       689,677  
Prepaid expenses and other current assets     102,472       52,729  
                 
Total current assets     8,173,932       3,711,822  
                 
Fixed assets, net     287,108       313,177  
Operating lease ROU assets     854,582       -  
Deposits and other assets     33,567       33,567  
Total assets   $ 9,349,189     $ 4,058,566  
                 
Liabilities and Shareholders’ Equity                
                 
Current liabilities:                
Current portion of operating lease liability   $ 159,017     $ -  
Accounts payable     27,371       133,486  
Accrued expenses and other     71,709       273,606  
Deferred revenue     35,902       50,570  
Total current liabilities     293,999       457,662  
                 
Operating lease liability, net of current portion     894,510       -  
Warrant liability     -       501,414  
Total liabilities     1,188,509       959,076  
                 
Shareholders’ equity:                
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 3,103,443 in 2019
 and 27,665,211 in 2018
    3,103       2,767  
Additional paid-in capital     122,002,886       114,787,657  
Accumulated deficit     (113,845,309 )     (111,690,934 )
Total shareholders’ equity     8,160,680       3,099,490  
                 
Total liabilities and shareholders’ equity   $ 9,349,189     $ 4,058,566  
                 


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited

    Six Months Ended June 30,     Three Months Ended June 30,  
    2019     2018     2019     2018  
                         
Fee income   $ 719,692     $ 758,122     $ 301,035     $ 324,853  
                                 
Operating expenses     1,690,520       1,655,785       939,355       645,960  
Research and development     543,944       469,440       313,981       250,824  
Total Expenses     2,234,464       2,125,225       1,253,336       896,784  
                                 
Operating loss     (1,514,772 )     (1,367,103 )     (952,301 )     (571,931 )
                                 
Warrant market adjustment     (652,025 )     -       (404,435 )     -  
Net investment income     12,422       3,445       6,258       2,040  
                                 
Net loss     (2,154,375 )     (1,363,658 )     (1,350,478 )     (569,891 )
                                 
Basic and diluted net loss per common share   $ (0.07 )   $ (0.05 )   $ (0.05 )   $ (0.02 )
                                 
Weighted average number of common shares outstanding     28,909,306       25,064,414       29,589,084       25,432,739  
                                 


RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited

    Six months ended June 30,  
    2019     2018  
Cash flows from operating activities:                
Net loss   $ (2,154,375 )   $ (1,363,658 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     95,445       90,343  
Stock based compensation     356,228       69,309  
Provision for doubtful accounts     22,667       -  
Warrant market adjustment     652,025       -  
Change in assets and liabilities:                
Royalty receivables     (105,780 )     21,122  
Prepaid expenses and other current assets     (49,743 )     (78,310 )
Accounts payable and accrued expenses     (115,475 )     44,382  
Deferred revenue     (14,668 )     102,024  
Net cash used in operating activities     (1,313,676 )     (1,114,788 )
                 
Cash flows from investing activities:                
Purchases of fixed assets     (62,968 )     (11,087 )
Net cash used in investing activities     (62,968 )     (11,087 )
                 
Cash flows from financing activities:                
Net proceeds from issuances of common stock and warrants and exercise of options and warrants     5,705,898       1,250,000  
Net cash provided by financing activities     5,705,898       1,250,000  
                 
Net increase in cash and cash equivalents     4,329,254       124,125  
                 
Cash and cash equivalents at beginning of period     2,969,416       1,737,847  
Cash and cash equivalents at end of period   $ 7,298,670     $ 1,861,972  
                 
Supplemental disclosure of non-cash activities:                
Right of use assets obtained in connection with the adoption of FASB ASC 842   $ 941,284     $ -