SOURCE: Research Frontiers Inc.

Research Frontiers Inc.

August 03, 2017 16:05 ET

Research Frontiers Reports Second Quarter 2017 Financial Results

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

WOODBURY, NY--(Marketwired - Aug 3, 2017) - Research Frontiers Inc. (NASDAQ: REFR) announced its financial results for its second quarter ended June 30, 2017. Management will host a conference call today at 4:30 p.m. Eastern Time to discuss its financial and operating results as well as the recent announcement by ONE Aviation regarding its selection of the ALTEOS electronically dimmable window (EDW) by PPG using SPD-SmartGlass technology for its new Eclipse 700 aircraft.

  • Who: Joseph M. Harary, President & CEO, Seth Van Voorhees, CFO
  • Date/Time: August 3, 2017, 4:30 PM ET
  • Dial-in Information: 1-412-717-9591
  • Replay: Available on Friday, August 4, 2017 for 90 days at www.SmartGlass-IR.com

Key Second Quarter 2017 Comments:

1. Global aircraft manufacturer ONE Aviation has announced the selection of the ALTEOS electronically dimmable window (EDW) by PPG using SPD-SmartGlass technology for its new Eclipse 700 aircraft. This is the first announced project from the partnership between PPG and Research Frontiers' licensee Vision Systems that was announced in May of this year.

2. The Company's fee income from licensing activities for the six months ended June 30, 2017 was $741,295 as compared to $653,564 for the six months ended June 30, 2016 representing a $87,731 increase between these two periods. This increase was principally the result of higher revenues from licensees in the aircraft, architectural, automotive and marine sectors as well as revenue from a new licensee focused on the transparent display sector.

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 $279,060 for the six months ended June 30, 2017 to $1,773,036 from $2,052,096 for the six months ended June 30, 2016. This decrease was principally the result of lower patent and patent litigation costs as well as lower payroll and related costs and lower investor relations and marketing costs. 

Research and development expenditures decreased by $500,446 to $413,343 for the six months ended June 30, 2017 from $913,789 for the six months ended June 30, 2016. This decrease was principally the result of lower payroll costs.

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. ALTEOS is a trademark of PPG.

   
RESEARCH FRONTIERS INCORPORATED  
Consolidated Balance Sheets  
Unaudited  
   
    June 30, 2017     December 31, 2016  
Assets                
Current assets:                
  Cash and cash equivalents   $ 2,405,619     $ 1,691,603  
  Short-term investments     -       1,523,333  
  Royalty receivables, net of reserves of $1,035,009 in 2017 and $1,110,020 in 2016     791,508       1,117,146  
  Prepaid expenses and other current assets     64,993       256,892  
    Total current assets     3,262,120       4,588,974  
                 
Fixed assets, net     569,688       651,655  
Deposits and other assets     33,567       33,567  
    Total assets   $ 3,865,375     $ 5,274,196  
                 
Liabilities and Shareholders' Equity                
                 
Current liabilities:                
  Accounts payable   $ 78,326     $ 29,932  
  Accrued expenses and other     291,990       339,338  
  Deferred revenue     32,500       -  
    Total current liabilities     402,816       369,270  
                 
Shareholders' equity:                
  Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 24,043,846 shares in 2017 and 2016     2,404       2,404  
  Additional paid-in capital     111,551,490       111,551,490  
  Accumulated deficit     (108,091,335 )     (106,648,968 )
    Total shareholders' equity     3,462,559       4,904,926  
                 
    Total liabilities and shareholders' equity   $ 3,865,375     $ 5,274,196  
                 
   
RESEARCH FRONTIERS INCORPORATED  
Consolidated Statements of Operations  
Unaudited  
   
    Six months ended     Three months ended  
    June 30, 2017     June 30, 2016     June 30, 2017     June 30, 2016  
                                 
Fee income   $ 741,295     $ 653,564     $ 348,179     $ 244,432  
                                 
Operating expenses     1,773,036       2,052,096       636,781       865,590  
Research and development     413,343       913,789       202,050       503,572  
  Total Expenses     2,186,379       2,965,885       838,831       1,369,162  
                                 
  Operating loss     (1,445,084 )     (2,312,321 )     (490,652 )     (1,124,730 )
                                 
Net investment income     2,717       18,870       840       7,972  
  Net loss   $ (1,442,367 )   $ (2,293,451 )   $ (489,812 )   $ (1,116,758 )
                                 
Basic and diluted net loss per common share   $ (0.06 )   $ (0.10 )   $ (0.02 )   $ (0.05 )
                                 
Weighted average number of common shares outstanding     24,043,846       24,043,846       24,043,846       24,043,846  
                                 
   
RESEARCH FRONTIERS INCORPORATED  
Consolidated Statements of Cash Flows  
Unaudited  
   
    Six months ended  
    June 30, 2017     June 30, 2016  
Cash flows from operating activities:                
  Net loss   $ (1,442,367 )   $ (2,293,451 )
  Adjustments to reconcile net loss to net cash used in operating activities:                
  Depreciation and amortization     87,789       94,693  
  Loss on sale of asset     -       1,774  
  Change in assets and liabilities:                
    Royalty receivables     325,638       (17,151 )
    Prepaid expenses and other current assets     191,899       58,476  
    Deferred revenue     32,500       20,000  
    Accounts payable and accrued expenses     1,046       223,299  
      Net cash used in operating activities     (803,495 )     (1,912,360 )
                 
Cash flows from investing activities:                
  Purchases of fixed assets     (5,822 )     (5,018 )
  Proceeds from sale of investments and change in investments     1,523,333       (5,141 )
      Net cash provided by (used in) investing activities     1,517,511       (10,159 )
                 
Net increase (decrease) in cash and cash equivalents     714,016       (1,922,519 )
                 
Cash and cash equivalents at beginning of year     1,691,603       5,712,310  
Cash and cash equivalents at end of period   $ 2,405,619     $ 3,789,791  
                 

Contact Information

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