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Research Frontiers Reports Second Quarter 2018 Financial Results

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Management to Host Conference Call at 4:30 p.m.

WOODBURY, N.Y., Aug. 13, 2018 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (NASDAQ:REFR) announced its financial results for its second quarter ended June 30, 2018. 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: August 13, 2018, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Tuesday, August 14, 2018 for 90 days at www.SmartGlass-IR.com

Key Second Quarter 2018 Comments:

1)      The Company's fee income from licensing activities for the three months ended June 30, 2018 was $324,853 as compared to $348,179 for the three months ended June 30, 2017 representing a $23,326 decrease between these two periods.

a.       This decrease in revenues was principally the result of the adoption of ASC 606 revenue recognition standard beginning with the first quarter of 2018, the adoption of which changed the timing of when we recognize revenues for our contracts with customers. We would have reported $365,048 of fee income, representing a $16,869 increase in the reported fee income for the period ending June 30, 2018 had we continued to use the accounting guidance used prior to the adoption of ASC 606.

2)      Fee income was down $108,416 in the second quarter of 2018 as compared to the prior first quarter of 2018 in all sectors other than the display and architectural sectors.

a.       Most of this sequential period decline was due to the recognition of all fee income associated with the Grant of Use performance obligation under our license agreements in the first quarter of 2018.

3)      The Company's fee income from licensing activities for the six months ended June 30, 2018 was $758,122 as compared to $741,295 for the six months ended June 30, 2017 representing a $16,827 increase in fee income between these two periods.

a.       This increase in revenues was principally the result of higher revenues in the architectural and display sectors partial offset by slightly lower revenues recorded in the aircraft and automotive sectors due to seasonality.

b.      We would have reported $753,697 of fee income, representing a $4.423 decrease in the reported fee income for the period ending June 30, 2018 had we continued to use the accounting guidance used prior to the adoption of ASC 606.

4)      Expenses declined by $61,154, or (2.8%), for the 6-month period ending June 30, 2018 as compared to the same period in 2017. Expenses increased by $57,953, or 6.9%, for the 3-month period ending June 30, 2018 as compared to the same period in 2017.

5)      Cash and cash equivalents increased by $124,125 since the end of 2017 as a result of a financing completed in February 2018.

6)      On August 13, 2018, the Company announced that a group of investors led by a licensee of the Company's SPD technology agreed to make a $2,000,000 equity investment in the Company. With the addition of proceeds from this investment, the Company expects as of this filing to have sufficient working capital for at least the next 24 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.

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 FacebookTwitterLinkedIn 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 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

RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
Unaudited

    June 30, 2018   December 31, 2017
Assets                
                 
Current assets:                
Cash and cash equivalents   $ 1,861,972     $ 1,737,847  
Royalties receivable, net of reserves of $1,051,424 in 2018 and 2017     634,340       597,441  
Prepaid expenses and other current assets     108,007       29,697  
                 
Total current assets     2,604,319       2,364,985  
                 
Fixed assets, net     403,305       482,561  
Deposits and other assets     33,567       33,567  
Total assets   $ 3,041,191     $ 2,881,113  
                 
Liabilities and Shareholders' Equity                
                 
Current liabilities:                
Accounts payable   $ 80,499     $ 58,090  
Accrued expenses and other     276,806       254,833  
Deferred revenue     102,848       824  
Total current liabilities     460,153       313,747  
                 
Shareholders' equity:                
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 25,432,739 in 2018 and 24,043,846 in 2017     2,543       2,404  
Additional paid-in capital     112,946,959       111,627,789  
Accumulated deficit     (110,368,464 )     (109,062,827 )
Total shareholders' equity     2,581,038       2,567,366  
                 
Total liabilities and shareholders' equity   $ 3,041,191     $ 2,881,113  

RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited

    Six months ended   Three months ended
    June 30,   June 30,
    2018   2017   2018   2017
                 
Fee income   $ 758,122     $ 741,295     $ 324,853     $ 348,179  
                                 
Operating expenses     1,655,785       1,773,036       645,960       636,781  
Research and development     469,440       413,343       250,824       202,050  
Total Expenses     2,125,225       2,186,379       896,784       838,831  
                                 
Operating loss     (1,367,103 )     (1,445,084 )     (571,931 )     (490,652 )
                                 
Net investment income     3,445       2,717       2,040       840  
                                 
Net loss     (1,363,658 )     (1,442,367 )     (569,891 )     (489,812 )
                                 
Basic and diluted net loss per common share   $ (0.05 )   $ (0.06 )   $ (0.02 )   $ (0.02 )
                                 
Weighted average number of
common shares outstanding
    25,064,414       24,043,846       25,432,739       24,043,846  

RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited

    Six months ended
    June 30,
    2018   2017
Cash flows from operating activities:                
Net loss   $ (1,363,658 )   $ (1,442,367 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     90,343       87,789  
Stock based compensation     69,309       -  
Change in assets and liabilities:                
Royalty receivables     21,122       325,638  
Prepaid expenses and other current assets     (78,310 )     191,899  
Accounts payable and accrued expenses     44,382       1,046  
Deferred revenue     102,024       32,500  
Net cash used in operating activities     (1,114,788 )     (803,495 )
                 
Cash flows from investing activities:                
Purchases of fixed assets     (11,087 )     (5,822 )
Proceeds from sale of investment     -       1,523,333  
Net cash provided by (used in) investing activities     (11,087 )     1,517,511  
                 
Cash flows from financing activities:                
                 
Proceeds for issuance of common stock     1,250,000       -  
Net cash provided by financing activities     1,250,000       -  
                 
Net increase in cash and cash equivalents     124,125       714,016  
                 
Cash and cash equivalents at beginning of period     1,737,847       1,691,603  
Cash and cash equivalents at end of period   $ 1,861,972     $ 2,405,619  


CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com

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