Research Frontiers Reports Third Quarter 2023 Financial Results and Will Host a Conference Call at 4:30p.m. Today
November 02, 2023 at 08:02 pm
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WOODBURY, N.Y., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter and firstnine months of 2023. 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.
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Who: Joseph M. Harary, President & CEO
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Date/Time: November 2, 2023, 4:30 PM ET
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Dial-in Information:1-888-334-5785
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Replay: Available on Friday, November 3, 2023 for 90 days at https://smartglass-ir.com/
Key Comments:
1.
Car models from Cadillac, Ferrari, McLaren, and at least one other Asian car manufacturer are expected to be introduced into serial production in 2023 and the first half of 2024, and during the fourth quarter of 2023 additional automakers have begun projects using Research Frontiers patented SPD-SmartGlass technology in their panoramic glass roofs.
2.
Fee income during the first nine months of the year was up 46% from the same period last year. Fee income in the third quarter of 2023 was also up 9% from the same quarter last year. This increase in fee income was primarily the result of higher royalties from the automotive market.
3.
The Company expects revenue in all market segments to increase as new car models, aircraft, trains and other products using the Company’s SPD-SmartGlass technology are introduced into the market.
4.
At September 30, 2023, the Company had cash and cash equivalents and marketable securities of approximately $3.0 million, and working capital of $3.6million. The Company has no debt and expects to have sufficient working capital for at least the next five years of operations.
For more details, please see the Company’s AnnualReport 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: Joseph M. Harary President and CEO Research Frontiers Inc. +1-516-364-1902 Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Balance Sheets
September 30, 2023
December 31, 2022
(Unaudited)
(See Note 1)
Assets
Current assets:
Cash and cash equivalents
$
524,985
$
4,230,916
Marketable securities
2,499,625
-
Royalties receivable, net of reserves of $1,253,450 in 2023 and $1,158,450 in 2022
721,244
589,599
Prepaid expenses and other current assets
164,584
100,973
Total current assets
3,910,438
4,921,488
Fixed assets, net
46,164
65,388
Operating lease ROU assets
214,458
323,509
Deposits and other assets
56,066
56,066
Total assets
$
4,227,126
$
5,366,451
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of operating lease liability
$
207,838
$
196,405
Accounts payable
32,101
71,079
Accrued expenses and other
20,572
34,379
Deferred revenue
3,735
-
Total current liabilities
264,246
301,863
Operating lease liability, net of current portion
109,967
267,723
Total liabilities
374,213
569,586
Shareholders’ equity:
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,509,287 in 2023 and 33,150,396 in 2022
3,351
3,315
Additional paid-in capital
127,634,493
127,150,027
Accumulated deficit
(123,784,931
)
(122,356,477
)
Total shareholders’ equity
3,852,913
4,796,865
Total liabilities and shareholders’ equity
$
4,227,126
$
5,366,451
RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Statements of Operations (Unaudited)
Nine months ended June 30,
Three months ended September 30,
2023
2022
2023
2022
Fee income
$
597,362
$
409,783
$
164,146
$
150,443
Operating expenses
1,695,129
1,770,414
542,635
487,476
Research and development
430,150
444,413
135,319
149,156
Total expenses
2,125,279
2,214,827
677,954
636,632
Operating loss
(1,527,917
)
(1,805,044
)
(513,808
)
(486,189
)
Net investment income (loss)
99,463
(48,871
)
41,642
2,460
Net loss
$
(1,428,454
)
$
(1,853,915
)
$
(472,166
)
$
(483,729
)
Basic and diluted net loss per common share
$
(0.04
)
$
(0.06
)
$
(0.01
)
$
(0.02
)
Weighted average number of common shares outstanding
33,435,074
31,710,179
33,509,287
31,829,744
RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)
For the nine months ended September 30, 2022 and 2023
Common Stock
Additional Paid-in
Accumulated
Shares
Amount
Capital
Deficit
Total
Balance, January 1, 2022
31,650,396
$
3,165
$
123,467,886
$
(119,687,128
)
$
3,783,923
Issuance of common stock and warrants
1,500,000
150
3,449,850
-
3,450,000
Net loss
-
-
-
(1,853,915
)
(1,853,915
)
Balance, September 30, 2022
33,150,396
$
3,315
$
126,917,736
$
(121,541,043
)
$
5,380,008
Balance, January 1, 2023
33,150,396
$
3,315
$
127,150,027
$
(122,356,477
)
$
4,796,865
Exercise of warrants
358,891
36
484,466
-
484,502
Net loss
-
-
-
(1,428,454
)
(1,428,454
)
Balance, September 30, 2023
33,509,287
$
3,351
$
127,634,493
$
(123,784,931
)
$
3,852,913
For the three months ended September 30, 2022 and 2023
Common Stock
Additional Paid-in
Accumulated
Shares
Amount
Capital
Deficit
Total
Balance, July 1, 2022
31,650,396
$
3,165
$
123,467,886
$
(121,057,314
)
$
2,413,737
Issuance of common stock and warrants
1,500,000
150
3,449,850
-
3,450,000
Net loss
-
-
-
(483,729
)
(483,729
)
Balance, September 30, 2022
33,150,396
$
3,315
$
126,917,736
$
(121,541,043
)
$
5,380,008
Balance, July 1, 2023
33,509,287
$
3,351
$
127,634,493
$
(123,312,765
)
$
4,325,079
Net loss
-
-
-
(472,166
)
(472,166
)
Balance, September 30, 2023
33,509,287
$
3,351
$
127,634,493
$
(123,784,931
)
$
3,852,913
RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Statements of Cash Flows (Unaudited)
For the nine months ended September 30,
2023
2022
Cash flows from operating activities:
Net loss
$
(1,428,454
)
$
(1,853,915
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
20,489
21,614
Realized (gain) loss on marketable securities
(26,375
)
60,143
Unrealized gain on marketable securities
(30,399
)
ROU asset amortization
109,051
109,660
Bad debt expense
95,000
151,772
Change in assets and liabilities:
Royalty receivables
(226,645
)
145,335
Prepaid expenses and other assets
(63,612
)
(73,640
)
Accounts payable and accrued expenses
(52,784
)
(44,889
)
Deferred revenue
3,735
3,586
Operating lease liability
(146,323
)
(135,232
)
Net cash used in operating activities
(1,746,317
)
(1,615,566
)
Cash flows from investing activities:
Purchases of fixed assets
(1,265
)
(1,216
)
Purchases of marketable securities
(5,434,386
)
-
Sales of marketable securities
2,991,535
2,694,968
Net cash (used in) provided by investing activities
(2,444,116
)
2,693,752
Cash flows from financing activities:
Proceeds from sale of common stock and warrants
-
3,450,000
Net proceeds from exercise of warrants
484,502
-
Net cash provided by financing activities
484,502
3,450,000
Net (decrease) increase in cash and cash equivalents
Research Frontiers Incorporated is a material science company, focused on the research, development, manufacturing and marketing of vision and light control technologies. The Company develops and licenses its patented suspended particle device (SPD-Smart) light-control technology to other companies that manufacture and/or market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, electronics to power end-products incorporating the film, or lamination services for, and the end-products themselves, such as smart windows, skylights and sunroofs. It has various companies that, in the aggregate, are licensed to primarily serve five SPD-Smart application areas (aerospace, architectural, automotive, marine and display products) in every country of the world. It has licensed its smart glass technology to approximately 40 companies that include chemical, material science and glass companies.