Research Frontiers Reports First Quarter 2021 Financial Results
Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y., May 06, 2021 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its first quarter of 2021. 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 and projects for its SPD-SmartGlass light-control technology.
- Who: Joseph M. Harary, President & CEO
- Date/Time: May 6, 2021, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Friday, May 7, 2021 for 90 days at SmartGlass-IR.com
Key Comments:
- Fee income from licensing activities for the three months ended March 31, 2021 was $213,123 as compared to $356,173 for the three months ended March 31, 2020. Lower fees in the automotive and aircraft markets as production of certain Daimler vehicles was curtailed due to the COVID-19 pandemic and as these vehicles approached the end of their model lifetimes, and stable levels of royalty revenues from the architectural market were partially offset by higher fee income from the display market.
- Total expenses decreased by $232,985, or approximately 23%, for the first quarter of 2021 as compared to the same period in 2020.
- The Company’s net loss decreased by $67,287 to $557,307 ($0.02 per common share) for the first quarter of 2021. This compares to a net loss of $624,594 ($0.02 per common share) in the first quarter of 2020. This continuous reduction in the Company’s net loss followed a net loss in 2020 which was Research Frontiers’ lowest net loss in 26 years.
- As of March 31, 2021, the Company had cash and cash equivalents of over $4.2 million and working capital of approximately $4.7 million. The Company expects to have sufficient working capital for at least the next 32 months of operations until at least late 2023.
- During the first quarter of 2021, General Motor’s Cadillac division announced that its new ultra-luxury all-electric flagship vehicle, the Celestiq, will offer a four quadrant SPD-SmartGlass roof. Also during the first quarter of 2021, licensees of Research Frontiers took steps to increase their production capacity for SPD emulsion, film and end-products.
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. “Cadillac” and “Celestiq” are trademarks of General Motors Corp.
CONTACT:Joseph M. HararyPresident and CEOResearch Frontiers Inc.+1-516-364-1902Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Balance Sheets
| March 31, 2021(Unaudited) | December 31, 2020(See Note 1) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,215,961 | $ | 4,772,705 | ||||
| Royalty receivables, net of reserves of $972,202 in 2021 and $972,202 in 2020 | 737,870 | 598,292 | ||||||
| Prepaid expenses and other current assets | 85,271 | 56,512 | ||||||
| Total current assets | 5,039,102 | 5,427,509 | ||||||
| Fixed assets, net | 114,662 | 121,772 | ||||||
| Operating lease ROU assets | 579,788 | 616,442 | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 5,767,119 | $ | 6,199,290 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 170,191 | $ | 166,377 | ||||
| Accounts payable | 41,606 | 33,410 | ||||||
| Accrued expenses and other | 68,633 | 26,279 | ||||||
| Deferred revenue | 27,945 | - | ||||||
| Total current liabilities | 308,375 | 226,066 | ||||||
| Operating lease liability, net of current portion | 602,784 | 646,219 | ||||||
| Total liabilities | 911,159 | 872,285 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,650,396 in 2021 and 31,575,786 in 2020 | 3,165 | 3,158 | ||||||
| Additional paid-in capital | 123,250,878 | 123,164,623 | ||||||
| Accumulated deficit | (118,398,083 | ) | (117,840,776 | ) | ||||
| Total shareholders’ equity | 4,855,960 | 5,327,005 | ||||||
| Total liabilities and shareholders’ equity | $ | 5,767,119 | $ | 6,199,290 | ||||
RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Operations(Unaudited)
| For the three months ended | ||||||||
| March 31, 2021 | March 31, 2020 | |||||||
| Fee income | $ | 213,123 | $ | 356,173 | ||||
| Operating expenses | 625,596 | 820,441 | ||||||
| Research and development | 145,178 | 183,318 | ||||||
| Total expenses | 770,774 | 1,003,759 | ||||||
| Operating loss | (557,651 | ) | (647,586 | ) | ||||
| Net investment income | 344 | 22,992 | ||||||
| Net loss | $ | (557,307 | ) | $ | (624,594 | ) | ||
| Basic and diluted net loss per common share | $ | (0.02 | ) | $ | (0.02 | ) | ||
| Weighted average number of common shares outstanding | 31,634,890 | 31,323,205 | ||||||
RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Shareholders’ Equity(Unaudited)
For the three months ended March 31, 2020 and 2021
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
| Balance, January 1, 2020 | 31,254,262 | $ | 3,125 | $ | 122,552,895 | $ | (115,499,912 | ) | $ | 7,056,108 | ||||||||||
| Exercise of options and warrants | 156,845 | 16 | (16 | ) | - | - | ||||||||||||||
| Net loss | - | - | - | (624,594 | ) | (624,594 | ) | |||||||||||||
| Balance, March 31, 2020 | 31,411,107 | $ | 3,141 | $ | 122,552,879 | $ | (116,124,506 | ) | $ | 6,431,514 | ||||||||||
| Balance, January 1, 2021 | 31,575,786 | $ | 3,158 | $ | 123,164,623 | $ | (117,840,776 | ) | $ | 5,327,005 | ||||||||||
| Exercise of options | 74,610 | 7 | 86,255 | - | 86,262 | |||||||||||||||
| Net loss | - | - | - | (557,307 | ) | (557,307 | ) | |||||||||||||
| Balance, March 31, 2021 | 31,650,396 | $ | 3,165 | $ | 123,250,878 | $ | (118,398,083 | ) | $ | 4,855,960 | ||||||||||
RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Cash Flows(Unaudited)
| For the three months ended | ||||||||
| March 31, 2021 | March 31, 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (557,307 | ) | $ | (624,594 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 4,489 | 44,619 | ||||||
| Bad debts expense (recovery) | - | (5,237 | ) | |||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (139,578 | ) | (85,354 | ) | ||||
| Prepaid expenses and other current assets | (28,759 | ) | (123,257 | ) | ||||
| Accounts payable and accrued expenses | 50,550 | (35,589 | ) | |||||
| Deferred revenue | 27,945 | 71,189 | ||||||
| Net cash used in operating activities | (642,660 | ) | (758,223 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (346 | ) | (55 | ) | ||||
| Proceeds from sale of fixed asset | - | 3,713 | ||||||
| Net cash (used in) provided by investing activities | (346 | ) | 3,658 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of options | 86,262 | - | ||||||
| Net cash provided by financing activities | 86,262 | - | ||||||
| Net decrease in cash and cash equivalents | (556,744 | ) | (754,565 | ) | ||||
| Cash and cash equivalents at beginning of period | 4,772,705 | 6,591,960 | ||||||
| Cash and cash equivalents at end of period | $ | 4,215,961 | $ | 5,837,395 | ||||
