SOURCE: Research Frontiers Inc.

SPD-SmartGlass

August 04, 2016 16:01 ET

Research Frontiers Reports Second Quarter 2016 Financial Results

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

WOODBURY, NY--(Marketwired - August 04, 2016) - Research Frontiers Inc. (NASDAQ: REFR) reported its financial results for its second quarter ended June 30, 2016. 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: Thursday, August 4, 2016, 4:30PM ET
  • Dial-in Information: 1-412-717-9591
  • Replay: Available on Thursday, August 4, 2016 for 90 days at www.SmartGlass-IR.com

Key Second Quarter 2016 Comments:

  • The Company's fee income from licensing activities for the six months ended June 30, 2016 was $653,564, as compared to $1,182,891 for the six months ended June 30, 2015.

    • A substantial majority of this decrease in fee income was principally the result of non-recurring fees earned last year associated with the Company's participation in the Milan Expo, and non-recurring fee income under several license agreements in 2015.
    • To a much lesser extent, fee income from automobiles and aircraft using the Company's technology was lower in the first half of 2016 due to: (1) lower production levels of certain car models in the first half of 2016; (2) lower costs to the OEM (and therefore lower royalties per car to the Company) for glass incorporating the Company's technology on certain car models, and (3) a design improvement in certain aircraft that caused a short-term reduction in new window installations.
    • These factors were partially offset by higher sales volumes on other car and aircraft models using the Company's technology.
  • The Company believes that the temporary factors causing reduced royalty income in the first half of 2016 to be short term, and the Company has been informed to expect increased production of vehicles in automotive and aircraft using the Company's technology, as well as higher take rates on all cars offering the Magic Sky Control option, starting with the second half of 2016 when the 2017 model year cars are produced by Mercedes-Benz.
  • Production efficiencies are expected to continue and accelerate with the introduction of the higher vehicle production volumes for various car models going forward, and the Company expects that lower pricing per square foot 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 expects to generate additional royalty income from the near-term introduction of additional new car and aircraft models from other OEMS (original equipment manufacturers), continued growth of sales of products using the Company's technology for the marine industry in yachts and other watercraft, in trains, in museums, and in larger architectural projects.

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) 
   
    June 30     December 31  
    2016     2015  
Assets   (Unaudited)        
   
Current assets:            
 Cash and cash equivalents $ 3,789,791   $ 5,712,310  
 Short-term investments   1,518,925     1,513,784  
 Royalty receivables, net of reserves of $629,457 in 2016 and 2015   1,331,826     1,314,675  
 Prepaid expenses and other current assets   80,989     133,465  
  Total current assets   6,721,531     8,674,234  
   
Fixed assets, net   738,767     836,216  
Deposits and other assets   33,567     33,567  
  Total assets $ 7,493,865   $ 9,544,017  
   
Liabilities and Shareholders' Equity            
   
Current liabilities:            
 Accounts payable $ 60,134   $ 46,734  
 Accrued expenses and other   631,377     421,478  
 Deferred revenue   20,000     -  
  Total current liabilities   711,511     468,212  
   
 Shareholders' equity:            
 Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding24,043,846 shares for 2016 and 2015   2,404    
2,404
 
 Additional paid-in capital   111,483,959     111,483,959  
 Accumulated deficit   (104,704,009 )   (102,410,558 )
  Total shareholders' equity   6,782,354     9,075,805  
   
  Total liabilities and shareholders' equity $ 7,493,865   $ 9,544,017  
        

See accompanying notes to consolidated financial statements.

  
  
RESEARCH FRONTIERS INCORPORATED 
Consolidated Statements of Operations 
(Unaudited) 
      
  Six months ended   Three months ended  
  June 30, 2016   June 30, 2015   June 30, 2016   June 30, 2015  
   
Fee income $653,564   $1,182,891   $244,432   $803,494  
   
Operating expenses  2,052,096    2,134,264    865,590    961,727  
Research and development  913,789    768,972    503,572    334,518  
 Total Expenses  2,965,885    2,903,236    1,369,162    1,296,245  
   
 Operating loss  (2,312,321 )  (1,720,345 )  (1,124,730 )  (492,751 )
   
Net investment income  18,870    22,680    7,972    11,464  
 Net loss $(2,293,451 ) $(1,697,665 ) $(1,116,758 ) $(481,287 )
   
Basic and diluted net loss per common share $(0.10 ) $(0.07 ) $(0.05 ) $(0.02 )
   
Weighted average number of common shares outstanding  24,043,846    23,975,197    24,043,846    24,005,919  

See accompanying notes to consolidated financial statements.

  
  
RESEARCH FRONTIERS INCORPORATED 
Consolidated Statements of Cash Flows 
(Unaudited) 
   
    Six months ended  
    June 30, 2016     June 30, 2015  
Cash flows from operating activities:            
Net loss $ (2,293,451 ) $ (1,697,665 )
Adjustments to reconcile net loss to net cash used in operating activities:            
 Depreciation and amortization   94,693     43,941  
 Stock-based compensation   -     125,930  
 Loss on sale of asset   1,774     -  
 Change in assets and liabilities:            
  Royalty receivables   (17,151 )   (552,064 )
  Prepaid expenses and other current assets   58,476     26,596  
  Deferred revenue   20,000     22,722  
  Accounts payable and accrued expenses   223,299     (116,590 )
   Net cash used in operating activities   (1,912,360 )   (2,147,130 )
   
Cash flows from investing activities:            
 Purchases of fixed assets   (5,018 )   (310,796 )
 Change in investments   (5,141 )   (7,315 )
   Net cash used in investing activities   (10,159 )   (318,111 )
   
Cash flows from financing activities:            
 Net proceeds from exercise of options and warrants   -     490,623  
   Net cash provided by financing activities   -     490,623  
   
Net decrease in cash and cash equivalents   (1,922,519 )   (1,974,618 )
   
Cash and cash equivalents at beginning of year   5,712,310     7,569,537  
Cash and cash equivalents at end of period $ 3,789,791   $ 5,594,919  

See accompanying notes to consolidated financial statements.

Contact Information

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