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

•

Who: Joseph M. Harary, President & CEO

•

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

•

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

•

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

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

1.

Newly-Introduced Retrofit System for SPD-SmartGlass in the Architectural Market.

The debut of the SPD-Smart retrofit window system this week at GlassBuild 2025 in Orlando started the commercial rollout of the ability to retrofit SPD-SmartGlass in government and commercial buildings and homes. AIT Group, Gauzy, and Research Frontiers collaboration for this event resulted in the SPD-SmartGlass retrofit system receiving enthusiastically positive responses from architects, fabricators, and building owners.

2.

Automotive Market Growth and Expansion.

Royalty income in the automotive segment grew year-over-year and sequentially even with the transfer of the Ferrari SPD-SmartGlass business from one Research Frontiers licensee to another. As of the third quarter, minimum annual royalty thresholds have now been exceeded by this licensee, allowing full recognition of Ferrari-related royalties in Q4 and setting the stage for further growth.

3.

Industry Recognition and Leadership.

Research Frontiers’ technology and leadership will be prominently featured at the Automotive Glazing Conference in Detroit on November 18–19, where President and CEO Joseph M. Harary will deliver the keynote address and serve as Chairman of the Conference. The event brings together executives and engineers from global OEMs and their suppliers, underscoring the growing influence of SPD technology within the automotive glazing community. SPD-SmartGlass is scheduled to continue to be prominently featured at major global showcases throughout 2026.

4.

Technology Outlook.

SPD-SmartGlass continues to outperform competing smart-glass technologies in clarity, speed, durability, and shading range. Progress in the development of a black SPD film and strategic investor and licensee Gauzy’s prefabricated lamination stacks further enhance optical uniformity, IR/UV performance, and manufacturability—enabling faster adoption and lower production costs.

5.

Operational Results and Financial Stability.

Research Frontiers’ third quarter of 2025 showed continued progress across its core markets, with royalties increasing year-over-year and sequentially after adjusting for one-time events in 2024. The Company remains debt-free, with $1.13 million in cash and working capital of $1.4 million as of September 30, 2025, reflecting disciplined financial management and efficient operations.

September 30, 2025
(Unaudited)

December 31, 2024
(See Note 1)

Assets

Current assets:

Cash and cash equivalents

$

1,130,390

$

1,994,186

Royalties receivable, net of reserves of $1,354,850 in 2025 and $1,253,450 in 2024, respectively

371,878

658,213

Prepaid expenses and other current assets

112,604

93,490

Total current assets

1,614,872

2,745,889

Fixed assets, net

6,355

15,052

Operating lease ROU assets

1,092,033

1,222,640

Deposits and other assets

56,066

56,066

Total assets

$

2,769,326

$

4,039,647

Liabilities and Shareholders’ Equity

Current liabilities:

Current portion of operating lease liability

$

141,894

$

129,875

Accounts payable

29,137

85,825

Accrued expenses

35,721

53,327

Deferred revenue

5,336

-

Total current liabilities

212,088

269,027

Operating lease liability, net of current portion

1,057,720

1,166,285

Total liabilities

1,269,808

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

(126,856,244

)

(125,576,223

)

Total shareholders’ equity

1,499,518

2,604,335

Total liabilities and shareholders’ equity

$

2,769,326

$

4,039,647

Nine months ended September 30,

Three months ended September 30,

2025

2024

2025

2024

Fee income

$

1,049,125

$

1,157,380

$

359,444

$

354,408

Operating expenses

1,934,041

1,565,152

521,642

454,866

Research and development

473,709

409,817

141,746

131,246

Total expenses

2,407,750

1,974,969

663,388

586,112

Operating loss

(1,358,625

)

(817,589

)

(303,944

)

(231,704

)

Net interest income

31,247

78,995

5,436

29,736

Other income

47,357

35,152

-

35,152

Net loss

$

(1,280,021

)

$

(703,442

)

$

(298,508

)

$

(166,816

)

Basic and diluted net loss per common share

$

(0.04

)

$

(0.02

)

$

(0.01

)

$

(0.00

)

Weighted average number of common shares outstanding

33,648,221

33,515,327

33,648,221

33,517,787

Common Stock

Additional

Accumulated

Shares

Amount

Paid-in 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

-

-

-

(703,442

)

(703,442

)

Balance, September 30, 2024

33,517,787

$

3,352

$

127,787,890

$

(124,968,283

)

$

2,822,959

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

-

-

-

(1,280,021

)

(1,280,021

)

Balance, September 30, 2025

33,648,221

$

3,365

$

128,352,397

$

(126,856,244

)

$

1,499,518

Common Stock

Additional

Accumulated

Shares

Amount

Paid-in Capital

Deficit

Total

Balance, June 30, 2024

33,517,787

$

3,352

$

127,787,890

$

(124,801,467

)

$

2,989,775

Net loss

-

-

-

(166,816

)

(166,816

)

Balance, September 30, 2024

33,517,787

$

3,352

$

127,787,890

$

(124,968,283

)

$

2,822,959

Balance, June 30, 2025

33,648,221

$

3,365

$

128,352,397

$

(126,557,736

)

$

1,798,026

Net loss

-

-

-

(298,508

)

(298,508

)

Balance, September 30, 2025

33,648,221

$

3,365

$

128,352,397

$

(126,856,244

)

$

1,499,518

Nine months ended September 30,

2025

2024

Cash flows from operating activities:

Net loss

$

(1,280,021

)

$

(703,442

)

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

Depreciation and amortization

9,279

19,582

Share-based compensation

175,204

-

Credit loss expense

124,253

25,001

ROU asset amortization

130,607

107,229

Change in assets and liabilities:

Royalty receivables

162,082

(69,605

)

Prepaid expenses and other assets

(19,114

)

(57,943

)

Accounts payable and accrued expenses

(74,294

)

1,033

Deferred revenue

5,336

-

Operating lease liability

(96,546

)

(157,754

)

Net cash used in operating activities

(863,214

)

(835,899

)

Cash flows from investing activities:

Purchases of fixed assets

(582

)

(742

)

Net cash used in investing activities

(582

)

(742

)

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

(863,796

)

(827,971

)

Cash and cash equivalents at beginning of year

1,994,186

2,475,958

Cash and cash equivalents at end of period

$

1,130,390

$

1,647,987