Research Frontiers Reports Second Quarter 2025 Financial Results and Will Host a Conference Call at 4:30p.m. Today

•

Who: Joseph M. Harary, President & CEO

•

Date/Time: Thursday, August 7, 2025, 4:30 PM ET

•

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

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Conference Link: https://join.broaddata.com/?id=research-frontiers

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Replay: Available on Friday, August 8, 2025 for 90 days at https://smartglass-ir.com/

1.

Expansion of Product Pipeline and Acceleration of Use of SPD by Ferrari and Cadillac.

Royalties from the automotive market came primarily from Ferrari and Cadillac, both of which expanded production in the first half of 2025 of vehicles using the Company’s SPD-SmartGlass technology. Strong sales from these OEMs are also expected in the second half of 2025. Additional royalties from sales to Mercedes and McLaren also were recorded in the first half of 2025. Mercedes also debuted a new luxury van at the Shanghai Auto Show in the second quarter of 2025, featuring new and innovative side windows with an SPD/PDLC combination of smartglass used across 75% of the vehicle’s glass surface. These positive operational results were offset by one-time accounting charges relating to the bankruptcy in the second quarter of 2025 of one of the Company’s European licensees supplying Ferrari with SPD-SmartGlass roofs. In anticipation of this, Research Frontiers and its SPD-Smart film supplier Gauzy worked with the OEM to successfully transition business from this licensee to another European licensee. Production by this licensee for Ferrari and other customers has already begun. 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.

2.

Operational Efficiencies and Financial Stability.

Almost entirely as a result of the one-time accounting charges relating to the bankruptcy of one of the Company’s licensees as described above, as well as non-cash expenses relating to the vesting of stock options in the second quarter of 2025 that were granted last year, the Company’s net loss increased to $981,513 ($0.03 per common share) for the first half of 2025 compared to a net loss of $ 536,626 ($0.02 per common share) for the first half of 2024. As of June 30, 2025, the Company was debt-free, had cash and cash equivalents of approximately $1.3 million, and working capital of $1.7 million.

June 30, 2025
(Unaudited)

December 31, 2024
(See Note 1)

Assets

Current assets:

Cash and cash equivalents

$

1,274,276

$

1,994,186

Royalties receivable, net of reserves of $1,354,850 in

2025 and $1,254,450 in 2024, respectively

536,373

658,213

Prepaid expenses and other current assets

161,281

93,490

Total current assets

1,971,930

2,745,889

Fixed assets, net

9,095

15,052

Operating lease ROU assets

1,135,715

1,222,640

Deposits and other assets

56,066

56,066

Total assets

$

3,172,806

$

4,039,647

Liabilities and Shareholders’ Equity

Current liabilities:

Current portion of operating lease liability

$

137,817

$

129,875

Accounts payable

24,358

85,825

Accrued expenses

46,497

53,327

Deferred revenue

71,563

-

Total current liabilities

280,235

269,027

Operating lease liability, net of current portion

1,094,545

1,166,285

Total liabilities

1,374,780

1,435,312

Shareholders’ equity:

Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,648,221 in 2025 and 2024, respectively

3,365

3,365

Additional paid-in capital

128,352,397

128,177,193

Accumulated deficit

(126,557,736

)

(125,576,223

)

Total shareholders’ equity

1,798,026

2,604,335

Total liabilities and shareholders’ equity

$

3,172,806

$

4,039,647

Six months ended June 30,

Three months ended June 30,

2025

2024

2025

2024

Fee income

$

689,680

$

802,972

$

129,904

$

489,594

Operating expenses

1,412,398

1,110,285

775,922

476,898

Research and development

331,963

278,571

169,086

128,830

Total expenses

1,744,361

1,388,856

945,008

605,728

Operating loss

(1,054,681

)

(585,884

)

(815,104

)

(116,134

)

Net interest income

25,811

49,258

11,278

22,112

Other income

47,357

-

-

-

Net loss

$

(981,513

)

$

(536,626

)

$

(803,826

)

$

(94,022

)

Basic and diluted net loss per common share

$

(0.03

)

$

(0.02

)

$

(0.02

)

$

(0.00

)

Weighted average number of common shares outstanding

33,648,221

33,514,097

33,648,221

33,517,787

Common Stock

Additional Paid-in

Accumulated

Shares

Amount

Capital

Deficit

Total

Balance, January 1, 2024

33,509,287

$

3,351

$

127,779,221

$

(124,264,841

)

$

3,517,731

Exercise of options

8,500

1

8,669

-

8,670

Net loss

-

-

-

(536,626

)

(536,626

)

Balance, June 30, 2024

33,517,787

$

3,352

$

127,787,890

$

(124,801,467

)

$

2,989,775

Balance, January 1, 2025

33,648,221

$

3,365

$

128,177,193

$

(125,576,223

)

$

2,604,335

Share-based compensation

-

-

175,204

-

175,204

Net loss

-

-

-

(981,513

)

(981,513

)

Balance, June 30, 2025

33,648,221

$

3,365

$

128,352,397

$

(126,557,736

)

$

1,798,026

Common Stock

Additional Paid-in

Accumulated

Shares

Amount

Capital

Deficit

Total

Balance, March 31, 2024

33,517,787

$

3,352

$

127,787,890

$

(124,707,445

)

$

3,083,797

Net loss

-

-

-

(94,022

)

(94,022

)

Balance, June 30, 2024

33,517,787

$

3,352

$

127,787,890

$

(124,801,467

)

$

2,989,775

Balance, March 31, 2025

33,648,221

$

3,365

$

128,177,193

$

(125,753,910

)

$

2,426,648

Share-based compensation

-

-

175,204

-

175,204

Net loss

-

-

-

(803,826

)

(803,826

)

Balance, June 30, 2025

33,648,221

$

3,365

$

128,352,397

$

(126,557,736

)

$

1,798,026

Six months ended June 30,

2025

2024

Cash flows from operating activities:

Net loss

$

(981,513

)

$

(536,626

)

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

Depreciation and amortization

6,166

12,951

Share-based compensation

175,204

-

Credit loss expense

124,253

-

ROU asset amortization

86,925

71,486

Change in assets and liabilities:

Royalty receivables

(2,413

)

(75,096

)

Prepaid expenses and other assets

(67,791

)

(107,898

)

Accounts payable and accrued expenses

(68,297

)

36,108

Deferred revenue

71,563

125,000

Operating lease liability

(63,798

)

(103,897

)

Net cash used in operating activities

(719,701

)

(577,972

)

Cash flows from investing activities:

Purchases of fixed assets

(209

)

(154

)

Net cash used in investing activities

(209

)

(154

)

Cash flows from financing activities:

Net proceeds from exercise of options

-

8,670

Net cash provided by financing activities

-

8,670

Net decrease in cash and cash equivalents

(719,910

)

(569,456

)

Cash and cash equivalents at beginning of year

1,994,186

2,475,958

Cash and cash equivalents at end of period

$

1,274,276

$

1,906,502