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CST: 20/11/2019 08:40:24   

Research Frontiers Reports Third Quarter 2019 Financial Results

12 Days ago

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

WOODBURY, N.Y, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter ended September 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: November 7, 2019, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Friday, November 8, 2019 for 90 days at www.SmartGlass-IR.com

Key Third Quarter 2019 Comments:

  1. New Gauzy SPD-Smart film factory commissioned for operation in Stuttgart Germany with capacity to produce 1 million square meters of film per year in widths up to 1.8 meters.
     
  2. The Company’s fee income from licensing activities was up 29% in the third quarter of this year compared to the third quarter of last year. Fee income was up 54% in the third quarter of 2019 as compared to the second quarter of 2019.
     
    • Fee income from the automotive market was up 49% in the third quarter of this year compared to the third quarter of last year. Fee income from the automotive market was up 73% in the third quarter of 2019 as compared to the second quarter of 2019.
       
    • Fee income from the aircraft market was up 28% in the third quarter of this year compared to the third quarter of last year. Fee income from the aircraft market was up 27% in the third quarter of 2019 as compared to the second quarter of 2019.
       
  3. The Company’s net loss was $397,712 ($0.01 per common share) for the three-months ended September 30, 2019 as compared to $688,301 ($0.03 per common share) for the three-months ended September 30, 2018.
     
  4. The Company’s net loss was $2,552,087 ($0.09 per common share) for the nine-months ended September 30, 2019 as compared to $2,051,960 ($0.08 per common share) for the nine-months ended September 30, 2018.
     
    • When non-cash charges relating to the issuance of options and the issuance/valuation of warrants are backed out, the net loss would have been $152,186 less in the first nine months of 2019 as compared to the first nine months of 2018.                   
  1. For the nine months ended September 30, 2019 total costs increased by $219,344, or 7.6%, as compared to the same period in 2018.
     
    • This increase was the result of higher non-cash charges related to the grant of stock options to employees and directors.
       
  2. At September 30, 2019 the Company had cash and cash equivalents of $7,016,922 and working capital of $7,591,547.
     
    • Based on the Company’s existing cash burn rate, these assets would support the Company’s operations for at least the next 3 years.

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 (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.

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

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets

    September 30, 2019 (Unaudited)     December 31, 2018  
Assets                
                 
Current assets:                
Cash and cash equivalents   $ 7,016,922     $ 2,969,416  
Royalties receivable, net of reserves of $1,117,441 in 2019 and $1,094,774 in 2018     775,760       689,677  
Prepaid expenses and other current assets     105,884       52,729  
                 
Total current assets     7,898,566       3,711,822  
                 
Fixed assets, net     239,888       313,177  
Operating lease ROU assets     814,285       -  
Deposits and other assets     33,567       33,567  
Total assets   $ 8,986,306     $ 4,058,566  
                 
Liabilities and Shareholders’ Equity                
                 
Current liabilities:                
Current portion of operating lease liabilities   $ 163,276     $ -  
Accounts payable     14,593       133,486  
Accrued expenses and other     57,485       273,606  
Deferred revenue     71,665       50,570  
Total current liabilities     307,019       457,662  
                 
Operating lease liabilities, net of current portion     851,672       -  
Warrant liability     -       501,414  
Total liabilities     1,158,691       959,076  
                 
Shareholders’ equity:                
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,090,291 in 2019 and 27,665,211 in 2018     3,109       2,767  
Additional paid-in capital     122,067,527       114,787,657  
Accumulated deficit     (114,243,021 )     (111,690,934 )
Total shareholders’ equity     7,827,615       3,099,490  
                 
Total liabilities and shareholders’ equity   $ 8,986,306     $ 4,058,566  

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)

    Nine Months Ended September 30,     Three Months Ended September 30,  
    2019     2018     2019     2018  
                         
Fee income   $ 1,182,560     $ 1,117,849     $ 462,869     $ 359,725  
                                 
Operating expenses     2,356,875       2,228,757       666,356       572,968  
Research and development     751,312       660,086       207,368       190,647  
Total costs     3,108,187       2,888,843       873,724       763,615  
                                 
Operating loss     (1,925,627 )     (1,770,994 )     (410,855 )     (403,890 )
                                 
Warrant market adjustment     (652,025 )     (286,631 )     -       (286,631 )
Net investment income     25,565       5,665       13,143       2,220  
                                 
Net loss   $ (2,552,087 )   $ (2,051,960 )   $ (397,712 )   $ (688,301 )
                                 
Basic and diluted net loss per common share   $ (0.09 )   $ (0.08 )   $ (0.01 )   $ (0.03 )
                                 
Weighted average number of basic and diluted common shares outstanding     29,636,013       25,380,466       31,065,730       26,002,263  

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)

    Nine months ended September 30,  
    2019     2018  
Cash flows from operating activities:                
Net loss   $ (2,552,087 )   $ (2,051,960 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     146,496       135,400  
Stock-based compensation     356,228       69,309  
Provision for doubtful accounts     22,667       -  
Warrant market adjustment     652,025       286,631  
Change in assets and liabilities:                
Royalty receivables     (108,750 )     (54,350 )
Prepaid expenses and other current assets     (53,155 )     (67,093 )
Accounts payable and accrued expenses     (142,477 )     7,100  
Deferred revenue     21,095       38,142  
Net cash used in operating activities     (1,657,958 )     (1,636,821 )
                 
Cash flows from investing activities:                
Purchases of fixed assets     (65,081 )     (11,295 )
Net cash used in investing activities     (65,081 )     (11,295 )
                 
Cash flows from financing activities:                
Net proceeds from issuances of common stock and warrants and exercise of options and warrants     5,770,545       3,311,111  
Net cash provided by financing activities     5,770,545       3,311,111  
                 
Net increase in cash and cash equivalents     4,047,506       1,662,995  
                 
Cash and cash equivalents at beginning of period     2,969,416       1,737,847  
Cash and cash equivalents at end of period   $ 7,016,922     $ 3,400,842  
                 
Supplemental disclosure of non-cash activities:                
Right of use assets obtained in exchange for operating lease liabilities   $ 941,284     $ -  

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