Research Frontiers Reports 2024 Financial Results and Will Host a Conference Call at 4:30p.m. Today

•

Who: Joseph M. Harary, President & CEO

•

Date/Time: Thursday, March 6, 2025, 4:30 PM ET

•

Dial-in Information:1-888-334-5785

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Replay: Available on Friday, March 7, 2025 for 90 days at https://smartglass-ir.com/

1.

Revenue Growth in the Automotive and Aircraft Markets

Research Frontiers royalty income increased by 47% in 2024 to $1,335,531 compared to $909,598 in 2023. This revenue growth primarily came from double-digit percentage gains in royalties from the automotive and aircraft markets.

2.

Expansion of Product Pipeline.

2024 marked the growth in use of SPD-SmartGlass in the Ferrari Purosangue and multiple McLaren car models, as well as the introduction towards the end of 2024 of the Cadillac Celestiq. Commercial airlines have begun to put SPD in their cabin windows, most notably in both Boeing and Airbus aircraft, as decision making has moved from the OEMs to their airline customers. The Company expects revenue in all market segments to increase as new car models, aircraft, trains, architectural, information display and other products using the Company’s SPD-SmartGlass technology are introduced into the market. The Company anticipates multiple new car models featuring SPD-SmartGlass technology in 2025 from OEMs in various regions of the world.

3.

Operational Efficiencies and Financial Stability.

Expenses decreased by over $165,000 (-6%) in 2024 compared to 2023. As a result of these efficiencies, combined with rising revenue, this reduced the Company’s net loss to $1,311,382 ($0.04 per common share) for the year ended December 31, 2024, which was $596,982, (31%) lower than the net loss of $1,908,364 ($0.06 per common share) for the year ended December 31, 2023. The Company had cash and cash equivalents of approximately $2.0 million, and working capital of $2.5 million as of December 31, 2024. The Company has no debt and expects to have sufficient working capital for at least the next five years of operations.

December 31, 2024

December 31, 2023

Assets

Current assets:

Cash and cash equivalents

$

1,994,186

$

2,475,958

Royalties receivable, net of reserves of $1,253,450 in 2024 and 2023, respectively

658,213

1,003,404

Prepaid expenses and other current assets

93,490

96,784

Total current assets

2,745,889

3,576,146

Fixed assets, net

15,052

39,598

Operating lease ROU assets

1,222,640

178,715

Deposits and other assets

56,066

56,066

Total assets

$

4,039,647

$

3,850,525

Liabilities and Shareholders’ Equity

Current liabilities:

Current portion of operating lease liability

$

129,875

$

212,359

Accounts payable

85,825

50,880

Accrued expenses

53,327

14,192

Total current liabilities

269,027

277,431

Operating lease liability, net of current portion

1,166,285

55,363

Total liabilities

1,435,312

332,794

Shareholders’ equity:

Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,648,221 in 2024 and 33,509,287 in 2023

3,365

3,351

Additional paid-in capital

128,177,193

127,779,221

Accumulated deficit

(125,576,223

)

(124,264,841

)

Total shareholders’ equity

2,604,335

3,517,731

Total liabilities and shareholders’ equity

$

4,039,647

$

3,850,525

2024

2023

Fee income

$

1,335,531

$

909,598

Operating expenses

2,207,397

2,359,634

Research and development

570,007

583,266

Total expenses

2,777,404

2,942,900

Operating loss

(1,441,873

)

(2,033,302

)

Net investment income

95,339

124,938

Other income

35,152

-

Net loss

$

(1,311,382

)

$

(1,908,364

)

Basic and diluted net loss per common share

$

(0.04

)

$

(0.06

)

Weighted average number of common shares outstanding

33,520,904

33,453,627

Common Stock

Additional
Paid-in

Accumulated

Shares

Amount

Capital

Deficit

Total

Balance, December 31, 2022

33,150,396

$

3,315

$

127,150,027

$

(122,356,477

)

$

4,796,865

Exercise of warrants

358,891

36

484,466

-

484,502

Share-based compensation

-

-

144,728

-

144,728

Net loss

-

-

-

(1,908,364

)

(1,908,364

)

Balance, December 31, 2023

33,509,287

3,351

127,779,221

(124,264,841

)

3,517,731

Exercise of options

8,500

1

8,669

-

8,670

Share-based compensation

-

-

89,316

-

89,316

Issuance of common stock and warrants

130,434

13

299,987

-

300,000

Net loss

-

-

-

(1,311,382

)

(1,311,382

)

Balance, December 31, 2024

33,648,221

$

3,365

$

128,177,193

$

(125,576,223

)

$

2,604,335

2024

2023

Cash flows from operating activities:

Net loss

$

(1,311,382

)

$

(1,908,364

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

26,169

27,348

Realized gain on marketable securities

-

(57,149

)

Share-based compensation

89,316

144,728

Credit loss expense

25,001

95,000

ROU asset amortization

237,394

144,794

Change in assets and liabilities:

Royalty receivables

320,190

(508,805

)

Prepaid expenses and other assets

3,294

4,189

Accounts payable and accrued expenses

74,080

(40,386

)

Operating lease liability

(252,881

)

(196,406

)

Net cash used in operating activities

(788,819

)

(2,295,051

)

Cash flows from investing activities:

Purchases of fixed assets

(1,623

)

(1,558

)

Purchases of marketable securities

-

(5,434,386

)

Sales and maturities of marketable securities

-

5,491,535

Net cash (used in) provided by investing activities

(1,623

)

55,591

Cash flows from financing activities:

Net proceeds from exercise of options and warrants

8,670

484,502

Proceeds from issuance of common stock and warrants

300,000

-

Net cash provided by financing activities

308,670

484,502

Net decrease in cash and cash equivalents

(481,772

)

(1,754,958

)

Cash and cash equivalents at beginning of year

2,475,958

4,230,916

Cash and cash equivalents at end of year

$

1,994,186

$

2,475,958

Supplemental disclosure of noncash items:

Operating lease assets obtained for operating lease liabilities

$

1,281,319

$

-