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CST: 23/03/2019 20:05:16   

Research Frontiers Reports Fourth Quarter and Full Year 2018 Financial Results - This press release is being re-issued to correct formatting issues.

9 Days ago

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

WOODBURY, N.Y , March 14, 2019 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: 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.
     
    • Gauzy announced that its Tel-Aviv film production line has a capacity to produce up to 364 thousand square meters of film per year per shift, and that its initial production will be 1.2 meters wide, and in 2019 they will be expanding this to 1.5 meters wide rolls and in 2020 to 1.8 meters wide rolls.
       
  • 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.
     
    • 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.
       
  • 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.
     
    • This decrease in revenues was principally the result of the adoption of ASC 606 which is a different revenue recognition standard which applies to revenues reported beginning with the first quarter of 2018.
       
    • The Company would have reported higher fee income of $1,553,468, representing a $64,826 increase in the reported fee income for the year ending December 31, 2018 had it continued to use the accounting guidance used prior to the adoption of ASC 606.
       
  • 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 has also received an additional $1.1 million from the early exercise of warrants to date during the first quarter of 2019.
       
  • 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 (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 FacebookTwitterLinkedIn 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
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
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  

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

    Common Stock     Additional Paid-in     Accumulated        
    Shares     Amount     Capital     Deficit     Total  
                               
Balance, December 31, 2015     24,043,846     $ 2,404     $ 111,483,959     $ (102,410,558 )   $ 9,075,805  
                                         
Share-based compensation     -       -       67,531       -       67,531  
Net Loss     -       -       -       (4,238,410 )     (4,238,410 )
Balance, December 31, 2016     24,043,846       2,404       111,551,490       (106,648,968 )     4,904,926  
                                         
Share-based compensation     -       -       76,299       -       76,299  
Net Loss     -       -       -       (2,413,859 )     (2,413,859 )
Balance, December 31, 2017     24,043,846       2,404       111,627,789       (109,062,827 )     2,567,366  
                                         
Adoption of ASC 606     -       -       -       58,021       58,021  
Issuance of capital stock     3,562,809       357       3,026,273       -       3,026,630  
Exercise of options and warrants     58,556       6       64,286       -       64,292  
Share-based compensation     -       -       69,309       -       69,309  
Net Loss     -       -       -       (2,686,128 )     (2,686,128 )
Balance, December 31, 2018     27,665,211     $ 2,767     $ 114,787,657     $ (111,690,934 )   $ 3,099,490  

  

RESEARCH FRONTIERS INCORPORATED
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  

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