WOODBURY, NY--(Marketwired - May 4, 2017) - Research Frontiers Inc. (
- Who: Joseph M. Harary, President & CEO, Seth Van Voorhees, CFO
- Date/Time: May 4, 2017, 4:45PM ET
- Dial-in Information: 1-412-717-9591
- Replay: Available on Friday, May 5, 2017 for 90 days at www.SmartGlass-IR.com
Key First Quarter 2017 Comments:
The Company's fee income from licensing activities for the three months ended March 31, 2017 was $393,116 as compared to $409,133 for the three months ended March 31, 2016. This $16,017 decrease was principally the result of exchange rate fluctuations and lower levels of sales of SLK and SL vehicles containing the Magic Sky Control option by Daimler offset somewhat by higher sales of the S-Class vehicles with the Magic Sky Control option.
In the first quarter of 2017, the Company received royalty revenues from sales of the Magic Sky Control option on the S-Class sedans and coupe, and on the SLK and SL roadsters in excess of minimum annual royalty levels in its license agreements with our licensees who supply this glass to Daimler which resulted in accretive royalty revenue from these licensees.
Sales of S-Class and roadster vehicles by Mercedes, and King Air aircraft, using the Company's SPD-SmartGlass technology were up by double digit percentages in the first quarter of 2017 as compared to the previous quarter.
The Company expects that lower pricing of the Company's technology could expand the market opportunities, adoption rates, and revenues for its technology in automotive and non-automotive applications. The Company is working with all levels of licensees in the supply chain to further reduce the cost of final products using the Company's technology.
Operating expenses decreased by $50,252 for the three months ended March 31, 2017 to $1,136,255 from $1,186,507 for the three months ended March 31, 2016.
Research and development expenditures decreased by $198,924 to $211,293 for the three months ended March 31, 2017 from $410,217 for the three months ended March 31, 2016.
Research Frontiers is the developer of SPD-Smart light-control technology which allows users to instantly, precisely and uniformly control the shading of glass or plastic, either manually or automatically. Research Frontiers has built an infrastructure of over 40 licensed companies that collectively are capable of serving the growing global demand for smart glass products in automobiles, homes, buildings, museums, aircraft and boats. 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 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 | ||||||||||
| March 31, 2017 | December 31, 2016 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 2,565,215 | $ | 1,691,603 | ||||||
| Short-term investments | - | 1,523,333 | ||||||||
| Royalty receivables, net of reserves of $1,110,020 in 2017 and 2016 | 1,083,568 | 1,117,146 | ||||||||
| Prepaid expenses and other current assets | 78,827 | 256,892 | ||||||||
| Total current assets | 3,727,610 | 4,588,974 | ||||||||
| Fixed assets, net | 611,924 | 651,655 | ||||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||||
| Total assets | $ | 4,373,101 | $ | 5,274,196 | ||||||
| Liabilities and Shareholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 47,642 | $ | 29,932 | ||||||
| Accrued expenses and other | 339,338 | 339,338 | ||||||||
| Deferred revenue | 33,750 | - | ||||||||
| Total current liabilities | 420,730 | 369,270 | ||||||||
| Shareholders' equity: | ||||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 24,043,846 shares for 2017 and 2016 | 2,404 | 2,404 | ||||||||
| Additional paid-in capital | 111,551,490 | 111,551,490 | ||||||||
| Accumulated deficit | (107,601,523 | ) | (106,648,968 | ) | ||||||
| Total shareholders' equity | 3,952,371 | 4,904,926 | ||||||||
| Total liabilities and shareholders' equity | $ | 4,373,101 | $ | 5,274,196 | ||||||
| RESEARCH FRONTIERS INCORPORATED | |||||||||
| Consolidated Statements of Operations | |||||||||
| Unaudited | |||||||||
| Three months ended | |||||||||
| March 31, 2017 | March 31, 2016 | ||||||||
| Fee income | $ | 393,116 | $ | 409,133 | |||||
| Operating expenses | 1,136,255 | 1,186,507 | |||||||
| Research and development | 211,293 | 410,217 | |||||||
| Total Expenses | 1,347,548 | 1,596,724 | |||||||
| Operating loss | (954,432 | ) | (1,187,591 | ) | |||||
| Net investment income | 1,877 | 10,898 | |||||||
| Net loss | $ | (952,555 | ) | $ | (1,176,693 | ) | |||
| Basic and diluted net loss per common share | $ | (0.04 | ) | $ | (0.05 | ) | |||
| Weighted average number of common shares outstanding | 24,043,846 | 24,043,846 | |||||||
| RESEARCH FRONTIERS INCORPORATED | |||||||||||
| Consolidated Statements of Cash Flows | |||||||||||
| Unaudited | |||||||||||
| Three months ended | |||||||||||
| March 31, 2017 | March 31, 2016 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (952,555 | ) | $ | (1,176,693 | ) | |||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 43,852 | 47,412 | |||||||||
| Change in assets and liabilities: | |||||||||||
| Royalty receivables | 33,578 | (59,539 | ) | ||||||||
| Prepaid expenses and other current assets | 178,065 | 54,237 | |||||||||
| Deferred revenue | 33,750 | 30,762 | |||||||||
| Accounts payable and accrued expenses | 17,710 | 67,482 | |||||||||
| Net cash used in operating activities | (645,600 | ) | (1,036,339 | ) | |||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of fixed assets | (4,121 | ) | (1,591 | ) | |||||||
| Proceeds from sale of investments and change in investments | 1,523,333 | (2,568 | ) | ||||||||
| Net cash provided by (used in) investing activities | 1,519,212 | (4,159 | ) | ||||||||
| Cash flows from financing activities: | |||||||||||
| Net cash provided by financing activities | - | - | |||||||||
| Net increase (decrease) in cash and cash equivalents | 873,612 | (1,040,498 | ) | ||||||||
| Cash and cash equivalents at beginning of year | 1,691,603 | 5,712,310 | |||||||||
| Cash and cash equivalents at end of period | $ | 2,565,215 | $ | 4,671,812 | |||||||
Contact Information:
CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com