Research Frontiers Reports Third Quarter 2020 Financial Results

About this update from Research Frontiers Incorporated

Management to Host Conference Call at 4:30 p.m. WOODBURY, N.Y. , Nov. 05, 2020 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter ended September 30, 2020 . 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. Who: Joseph M. Harary , President & CEO, Seth Van Voorhees , CFO Date/Time: November 5, 2020 , 4:30 PM ET Dial-in Information: 1-888-334-5785 Replay: Available on Friday, November 6, 2020 for 90 days at www.SmartGlass-IR.com Key Third Quarter 2020 Comments: 1. The Company’s fee income from licensing activities for the nine months ended September 30, 2020 was $692,714 as compared to $1,182,560 for the nine months ended September 30, 2019 . Lower fees in the automotive and aircraft markets were partially offset by higher fee income from licensees in the architect and display markets. 2. Total expenses decreased by $716,661 , or approximately 23%, for the for the nine months ended September 30, 2020 as compared to the same period in 2019. 3. As of September 30, 2020 , the Company had cash and cash equivalents of approximately $5.4 million and working capital of approximately $5.9 million . The Company expects to have sufficient working capital for at least the next 27-29 months of operations. 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. CONTACT: Seth L. Van Voorhees Chief Financial Officer Research Frontiers Inc. +1-516-364-1902 [email protected] RESEARCH FRONTIERS INCORPORATED Consolidated Balance Sheets September 30, 2020 (Unaudited) December 31, 2019 Assets Current assets: Cash and cash equivalents $ 5,440,208 $ 6,591,960 Royalties receivable, net of reserves of $944,052 as of September 30, 2020 and $1,135,598 as of December 31, 2019 554,609 656,062 Prepaid expenses and other current assets 107,041 58,835 Total current assets 6,101,858 7,306,857 Fixed assets, net 72,715 141,720 Operating lease ROU assets 653,097 773,989 Deposits and other assets 33,567 33,567 Total assets $ 6,861,237 $ 8,256,133 Liabilities and Shareholders’ Equity Current liabilities: Current portion of operating lease liabilities $ 162,615 $ 163,236 Accounts payable 47,324 169,750 Accrued expenses and other 58,213 46,709 Deferred revenue 21,511 7,734 Total current liabilities 289,663 387,429 Operating lease liabilities, net of current portion 689,057 812,596 Total liabilities 978,720 1,200,025 Shareholders’ equity: Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,575,786 in 2020 and 31,254,262 in 2019 3,158 3,125 Additional paid-in capital 122,837,069 122,552,895 Accumulated deficit (116,957,710 ) (115,499,912 ) Total shareholders’ equity 5,882,517 7,056,108 Total liabilities and shareholders’ equity $ 6,861,237 $ 8,256,133 RESEARCH FRONTIERS INCORPORATED Consolidated Statements of Operations Unaudited Nine Months Ended September 30 , Three Months Ended September 30 , 2020 2019 2020 2019 Fee income $ 697,914 $ 1,182,560 $ 165,628 $ 462,869 Operating expenses 1,924,828 2,356,875 472,424 666,356 Research and development 466,698 751,312 136,649 207,368 Total expenses 2,391,526 3,108,187 609,073 873,724 Operating loss (1,693,612 ) (1,925,627 ) (443,445 ) (410,855 ) Warrant market adjustment - (652,025 ) - - Other income -PPP loan forgiveness 202,052 - 7,912 - Net investment income 33,762 25,565 1,310 13,143 Net loss $ (1,457,798 ) $ (2,552,087 ) $ (434,223 ) $ (397,712 ) Basic and diluted net loss per common share $ (0.05 ) $ (0.09 ) $ (0.01 ) $ (0.01 ) Basic and diluted weighted average number of common shares outstanding 31,458,238 29,636,013 31,575,786 31,065,730 RESEARCH FRONTIERS INCORPORATED Consolidated Statements of Cash Flows Unaudited Nine Months Ended September 30 , 2020 2019 Cash flows from operating activities: Net loss $ (1,457,798 ) $ (2,552,087 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 64,193 146,496 Stock-based compensation - 356,228 Bad debt expense 53,217 22,667 Warrant market adjustment - 652,025 Other income -PPP loan forgiveness (202,052 ) - Change in assets and liabilities: Royalty receivables 48,234 (108,750 ) Prepaid expenses and other current assets (48,206 ) (53,155 ) Accounts payable and accrued expenses (110,921 ) (142,477 ) Deferred revenue 13,777 21,095 Net cash used in operating activities (1,639,556 ) (1,657,958 ) Cash flows from investing activities: Purchases of fixed assets (2,168 ) (65,081 ) Proceeds from the sale of fixed assets 3,713 - Net cash provided by (used in) investing activities 1,545 (65,081 ) Cash flows from financing activities: Net proceeds from issuances of common stock and warrants and exercise of options and warrants 284,207 5,770,545 Proceeds from PPP Program Funding 202,052 - Net cash provided by financing activities 486,259 5,770,545 Net (decrease)/increase in cash and cash equivalents (1,151,752 ) 4,047,506 Cash and cash equivalents at beginning of period 6,591,960 2,969,416 Cash and cash equivalents at end of period $ 5,440,208 $ 7,016,922 Source: Research Frontiers Incorporated

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