Research Frontiers Reports Second Quarter 2021 Financial Results
Research Frontiers Inc. (Nasdaq: REFR) reported its second-quarter 2021 financial results, highlighting a net loss of $1,085,242 ($0.03 per share). Fee income from licensing activities reached $327,060 for the first half of the year, impacted by reduced demand in the automotive sector due to COVID-19 and model lifecycle constraints. Total expenses decreased by 21%, or $368,791. The company has approximately $3.5 million in cash and expects to maintain operational funding for at least the next 24 months. Key developments include SPD-SmartGlass applications in vehicles like General Motors’ Cadillac Celestiq.
- Total expenses decreased by 21%, or $368,791.
- Cash and cash equivalents of approximately $3.5 million.
- Expected sufficient working capital for at least 24 months.
- New SPD-SmartGlass applications announced for Cadillac Celestiq.
- Net loss of $1,085,242 for the first half of 2021.
- Fee income from licensing decreased due to lower demand in automotive and aircraft markets.
Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y., Aug. 05, 2021 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter of 2021. 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 and projects for its SPD-SmartGlass light-control technology.
- Who: Joseph M. Harary, President & CEO
- Date/Time: August 5, 2021, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Friday, August 6, 2021 for 90 days at SmartGlass-IR.com
Key Comments:
- Fee income from licensing activities for the six months ended June 30, 2021 was
$327,060. Lower fees in the automotive and aircraft markets as production of certain Daimler vehicles was curtailed due to the COVID-19 pandemic and as these vehicles approached the end of their model lifetimes. - Total expenses decreased by
$368,791 , or approximately21% , for the first half of 2021 as compared to the same period in 2020. The Company’s net loss was$1,085,242 ($0.03 per common share) for the first half of 2021. - As of June 30, 2021, the Company had cash and cash equivalents of approximately
$3.5 million and working capital of approximately$4.2 million . The Company expects to have sufficient working capital for at least the next 24 months of operations. - Research Frontiers’ licensee Gauzy announced that its customer Rehau has delivered SPD-SmartGlass for Germany’s Deutsche Bahn (DB) Idea Train with laser-etched individually-controllable segments. Research Frontiers licensees Gauzy and Vision System also announced that they will be exhibiting various uses of SPD-SmartGlass for the automotive industry at the IAA 2021 Auto Show in Munich, Germany early next month. Additional automotive OEMs and suppliers are also expected to separately exhibit SPD-SmartGlass in their own booths at the IAA in Munich. General Motors’ Cadillac division also announced that its new ultra-luxury all-electric flagship vehicle, the Celestiq, will offer a four quadrant SPD-SmartGlass roof. Also during 2021, licensees of Research Frontiers took steps to further increase their production capacity for SPD emulsion, film and end-products.
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. “Cadillac” and “Celestiq” are trademarks of General Motors Corp.
CONTACT:
Joseph M. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets
| Assets | June 30, 2021 (Unaudited) | December 31, 2020 (See Note 1) | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,471,590 | $ | 4,772,705 | ||||
| Royalty receivables, net of reserves of | 829,865 | 598,292 | ||||||
| Prepaid expenses and other current assets | 199,925 | 56,512 | ||||||
| Total current assets | 4,501,380 | 5,427,509 | ||||||
| Fixed assets, net | 107,766 | 121,772 | ||||||
| Operating lease ROU assets | 543,133 | 616,442 | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 5,185,846 | $ | 6,199,290 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 174,103 | $ | 166,377 | ||||
| Accounts payable | 41,077 | 33,410 | ||||||
| Accrued expenses and other | 59,435 | 26,279 | ||||||
| Deferred revenue | 26,002 | - | ||||||
| Total current liabilities | 300,617 | 226,066 | ||||||
| Operating lease liability, net of current portion | 557,204 | 646,219 | ||||||
| Total liabilities | 857,821 | 872,285 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value | 3,165 | 3,158 | ||||||
| Additional paid-in capital | 123,250,878 | 123,164,623 | ||||||
| Accumulated deficit | (118,926,018 | ) | (117,840,776 | ) | ||||
| Total shareholders’ equity | 4,328,025 | 5,327,005 | ||||||
| Total liabilities and shareholders’ equity | $ | 5,185,846 | $ | 6,199,290 | ||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Six months ended June 30, | Three months ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Fee income | $ | 327,060 | $ | 532,286 | $ | 113,937 | $ | 176,113 | ||||||||
| Operating expenses | 1,128,674 | 1,452,404 | 503,078 | 631,963 | ||||||||||||
| Research and development | 284,988 | 330,049 | 139,810 | 146,731 | ||||||||||||
| Total expenses | 1,413,662 | 1,782,453 | 642,888 | 778,694 | ||||||||||||
| Operating loss | (1,086,602 | ) | (1,250,167 | ) | (528,951 | ) | (602,581 | ) | ||||||||
| Other income - PPP loan forgiveness | - | 194,140 | - | 194,140 | ||||||||||||
| Net investment income | 1,360 | 32,452 | 1,016 | 9,460 | ||||||||||||
| Net loss | $ | (1,085,242 | ) | $ | (1,023,575 | ) | $ | (527,935 | ) | $ | (398,981 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
| Weighted average number of common shares outstanding | 31,642,686 | 31,398,818 | 31,650,396 | 31,474,431 | ||||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
For the three months ended June 30, 2020 and 2021
| Common Stock | Additional | |||||||||||||||||||
| Shares | Amount | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||
| Balance, March 31, 2020 | 31,411,107 | $ | 3,141 | $ | 122,552,879 | $ | (116,124,506 | ) | $ | 6,431,514 | ||||||||||
| Exercise of options and warrants | 164,879 | 17 | 284,190 | - | 284,207 | |||||||||||||||
| Net loss | - | - | - | (398,981 | ) | (398,981 | ) | |||||||||||||
| Balance, June 30, 2020 | 31,575,986 | $ | 3,158 | $ | 122,837,069 | $ | (116,523,487 | ) | $ | 6,316,740 | ||||||||||
| Balance, March 31, 2021 | 31,650,396 | $ | 3,165 | $ | 123,250,878 | $ | (118,398,083 | ) | $ | 4,855,960 | ||||||||||
| Net loss | - | - | - | (527,935 | ) | (527,935 | ) | |||||||||||||
| Balance, June 30, 2021 | 31,650,396 | $ | 3,165 | $ | 123,250,878 | $ | (118,926,018 | ) | $ | 4,328,025 | ||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the six months ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,085,242 | ) | $ | (1,023,575 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 6,961 | 87,276 | ||||||
| Other income - PPP loan forgiveness | - | (194,140 | ) | |||||
| Bad debts expense (recovery) | - | 53,217 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (231,573 | ) | (49,675 | ) | ||||
| Prepaid expenses and other current assets | (143,413 | ) | (79,638 | ) | ||||
| Accounts payable and accrued expenses | 40,823 | (73,679 | ) | |||||
| Deferred revenue | 26,002 | 40,567 | ||||||
| Net cash used in operating activities | (1,386,442 | ) | (1,239,647 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (935 | ) | (939 | ) | ||||
| Proceeds from sale of fixed asset | - | 3,713 | ||||||
| Net cash (used in) provided by investing activities | (935 | ) | 2,774 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of options | 86,262 | 284,207 | ||||||
| Proceeds from PPP Program Funding | - | 202,052 | ||||||
| Net cash provided by financing activities | 86,262 | 486,259 | ||||||
| Net decrease in cash and cash equivalents | (1,301,115 | ) | (750,614 | ) | ||||
| Cash and cash equivalents at beginning of period | 4,772,705 | 6,591,960 | ||||||
| Cash and cash equivalents at end of period | $ | 3,471,590 | $ | 5,841,346 | ||||
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