Research Frontiers Reports Second Quarter 2024 Financial Results and Will Host a Conference Call at 4:30p.m. Today
Rhea-AI Summary
Research Frontiers Inc. (Nasdaq: REFR) reported its Q2 2024 financial results, showcasing significant growth. Fee income increased by over 165% from Q2 2023 and 56% from Q1 2024, driven by higher royalties from automotive and aircraft markets. The company has experienced six consecutive quarters of year-over-year revenue growth. Total expenses decreased by approximately $105,000 compared to Q2 2023, resulting in a net loss of $94,000 ($0.00 per share). As of June 30, 2024, Research Frontiers had $1.9 million in cash and cash equivalents and $2.8 million in working capital, with no debt. The company expects continued revenue growth across all market segments as new products incorporating its SPD-SmartGlass technology are introduced.
Positive
- Fee income increased by 165% year-over-year in Q2 2024
- 56% increase in fee income from Q1 2024 to Q2 2024
- Six consecutive quarters of year-over-year revenue growth
- Total expenses decreased by $105,000 compared to Q2 2023
- $1.9 million in cash and cash equivalents as of June 30, 2024
- $2.8 million in working capital with no debt
- Expected revenue growth across all market segments
Negative
- Net loss of $94,000 in Q2 2024
News Market Reaction
On the day this news was published, REFR declined 2.36%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WOODBURY, N.Y., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter of 2024. 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 | |
| • | Date/Time: Thursday, August 1, 2024, 4:30 PM ET | |
| • | Dial-in Information:1-888-334-5785 | |
| • | Replay: Available on Friday, August 2, 2024 for 90 days at https://smartglass-ir.com/ | |
Key Comments:
| 1. | Fee income during the second quarter of 2024 increased by over |
| 2. | The Company expects revenue in all market segments to increase as new car models, aircraft, trains, architectural, information display and other products using the Company’s SPD-SmartGlass technology are introduced into the market. |
| 3. | Total expenses during the second quarter of 2024 were approximately |
| 4. | At June 30, 2024, the Company had cash and cash equivalents of approximately |
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 numerous 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.
CONTACT:
Joseph M. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets
| June 30, 2024 (Unaudited) | December 31, 2023 (See Note 1) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,906,502 | $ | 2,475,958 | ||||
| Royalties receivable, net of reserves of | 1,078,500 | 1,003,404 | ||||||
| Prepaid expenses and other current assets | 204,682 | 96,784 | ||||||
| Total current assets | 3,189,684 | 3,576,146 | ||||||
| Fixed assets, net | 26,801 | 39,598 | ||||||
| Operating lease ROU assets | 107,229 | 178,715 | ||||||
| Deposits and other assets | 56,066 | 56,066 | ||||||
| Total assets | $ | 3,379,780 | $ | 3,850,525 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 163,825 | $ | 212,359 | ||||
| Accounts payable | 60,968 | 50,880 | ||||||
| Accrued expenses | 40,212 | 14,192 | ||||||
| Deferred revenue | 125,000 | - | ||||||
| Total current liabilities | 390,005 | 277,431 | ||||||
| Operating lease liability, net of current portion | - | 55,363 | ||||||
| Total liabilities | 390,005 | 332,794 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value | 3,352 | 3,351 | ||||||
| Additional paid-in capital | 127,787,890 | 127,779,221 | ||||||
| Accumulated deficit | (124,801,467 | ) | (124,264,841 | ) | ||||
| Total shareholders’ equity | 2,989,775 | 3,517,731 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,379,780 | $ | 3,850,525 | ||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Six months ended June 30, | Three months ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Fee income | $ | 802,972 | $ | 433,215 | $ | 489,594 | $ | 185,040 | ||||||||
| Operating expenses | 1,110,285 | 1,152,493 | 476,898 | 564,694 | ||||||||||||
| Research and development | 278,571 | 294,832 | 128,830 | 145,610 | ||||||||||||
| Total expenses | 1,388,856 | 1,447,325 | 605,728 | 710,304 | ||||||||||||
| Operating loss | (585,884 | ) | (1,014,110 | ) | (116,134 | ) | (525,264 | ) | ||||||||
| Net investment income | 49,258 | 57,822 | 22,112 | 31,614 | ||||||||||||
| Net loss | $ | (536,626 | ) | $ | (956,288 | ) | $ | (94,022 | ) | $ | (493,650 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.00 | ) | $ | (0.01 | ) | ||||
| Weighted average number of common shares outstanding | 33,514,097 | 33,397,968 | 33,517,787 | 33,509,287 | ||||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
For the six months ended June 30, 2023 and 2024
| Common Stock | Additional | |||||||||||||||||||
| Shares | Amount | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||
| Balance, January 1, 2023 | 33,150,396 | $ | 3,315 | $ | 127,150,027 | $ | (122,356,477 | ) | $ | 4,796,865 | ||||||||||
| Exercise of warrants | 358,891 | 36 | 484,466 | - | 484,502 | |||||||||||||||
| Net loss | - | - | - | (956,288 | ) | (956,288 | ) | |||||||||||||
| Balance, June 30, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (123,312,765 | ) | $ | 4,325,079 | ||||||||||
| Common Stock | Additional | |||||||||||||||||||
| Shares | Amount | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||
| Balance, January 1, 2024 | 33,509,287 | $ | 3,351 | $ | 127,779,221 | $ | (124,264,841 | ) | $ | 3,517,731 | ||||||||||
| Exercise of options | 8,500 | 1 | 8,669 | - | 8,670 | |||||||||||||||
| Net loss | - | - | - | (536,626 | ) | (536,626 | ) | |||||||||||||
| Balance, June 30, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,801,467 | ) | $ | 2,989,775 | ||||||||||
For the three months ended June 30, 2023 and 2024
| Common Stock | Additional | |||||||||||||||||||
| Shares | Amount | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||
| Balance, March 31, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (122,819,115 | ) | $ | 4,818,729 | ||||||||||
| Net loss | - | - | - | (493,650 | ) | (493,650 | ) | |||||||||||||
| Balance, June 30, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (123,312,765 | ) | $ | 4,325,079 | ||||||||||
| Common Stock | Additional | |||||||||||||||||||
| Shares | Amount | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||
| Balance, March 31, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,707,445 | ) | $ | 3,083,797 | ||||||||||
| Net loss | - | - | - | (94,022 | ) | (94,022 | ) | |||||||||||||
| Balance, June 30, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,801,467 | ) | $ | 2,989,775 | ||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the six months ended June 30, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||
| Net loss | $ | (536,626 | ) | $ | (956,288 | ) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||
| Depreciation and amortization | 12,951 | 13,661 | |||||||||||
| Realized gain on marketable securities | - | (26,375 | ) | ||||||||||
| ROU asset amortization | 71,486 | 73,308 | |||||||||||
| Bad debt recovery | - | (5,000 | ) | ||||||||||
| Change in assets and liabilities: | |||||||||||||
| Royalty receivables | (75,096 | ) | (71,558 | ) | |||||||||
| Prepaid expenses and other assets | (107,898 | ) | (130,791 | ) | |||||||||
| Accounts payable and accrued expenses | 36,108 | (35,741 | ) | ||||||||||
| Deferred revenue | 125,000 | 12,794 | |||||||||||
| Operating lease liability | (103,897 | ) | (96,925 | ) | |||||||||
| Net cash used in operating activities | (577,972 | ) | (1,222,915 | ) | |||||||||
| Cash flows from investing activities: | |||||||||||||
| Purchases of fixed assets | (154 | ) | (1,304 | ) | |||||||||
| Purchases of marketable securities | - | (2,965,160 | ) | ||||||||||
| Sales of marketable securities | - | 2,991,535 | |||||||||||
| Net cash (used in) provided by investing activities | (154 | ) | 25,071 | ||||||||||
| Cash flows from financing activities: | |||||||||||||
| Net proceeds from exercise of options and warrants | 8,670 | 484,502 | |||||||||||
| Net cash provided by financing activities | 8,670 | 484,502 | |||||||||||
| Net decrease in cash and cash equivalents | (569,456 | ) | (713,342 | ) | |||||||||
| Cash and cash equivalents at beginning of period | 2,475,958 | 4,230,916 | |||||||||||
| Cash and cash equivalents at end of period | $ | 1,906,502 | $ | 3,517,574 | |||||||||
FAQ
What was Research Frontiers' (REFR) fee income growth in Q2 2024?
How many consecutive quarters of revenue growth has REFR experienced?
What was Research Frontiers' (REFR) net loss in Q2 2024?
How much cash and working capital did REFR have as of June 30, 2024?
