Research Frontiers Reports Third Quarter 2024 Financial Results and Will Host a Conference Call at 4:30p.m. Today
Research Frontiers reported strong Q3 2024 financial results, marking its seventh consecutive quarter of revenue growth. Royalty income increased by 115% in Q3 compared to last year, with particularly robust growth in automotive and aircraft markets showing triple-digit percentage gains. The first nine months of 2024 revenue already exceeded total 2023 revenue, with royalty income up 93% year-over-year. Expenses decreased by $92,000 in Q3 and $150,000 for the nine-month period. The company maintains strong financial stability with $1.65 million in cash and $2.7 million in working capital, with no debt. Multiple new car models featuring SPD-SmartGlass technology are anticipated in 2025.
Research Frontiers ha riportato risultati finanziari solidi per il terzo trimestre del 2024, segnando il suo settimo trimestre consecutivo di crescita dei ricavi. I proventi da diritti d'autore sono aumentati del 115% nel terzo trimestre rispetto all'anno scorso, con una crescita particolarmente robusta nei mercati automobilistico e aeronautico, mostrando guadagni a tre cifre in percentuale. I ricavi dei primi nove mesi del 2024 hanno già superato il totale dei ricavi del 2023, con i proventi da diritti d'autore aumentati del 93% rispetto all'anno precedente. Le spese sono diminuite di 92.000 dollari nel terzo trimestre e di 150.000 dollari per il periodo di nove mesi. L'azienda mantiene una forte stabilità finanziaria con 1,65 milioni di dollari in contante e 2,7 milioni di dollari in capitale circolante, senza debiti. Si prevedono diversi nuovi modelli di auto con tecnologia SPD-SmartGlass nel 2025.
Research Frontiers reportó fuertes resultados financieros para el tercer trimestre de 2024, marcando su séptimo trimestre consecutivo de crecimiento en los ingresos. Los ingresos por regalías aumentaron un 115% en el tercer trimestre en comparación con el año anterior, con un crecimiento especialmente robusto en los mercados automotriz y de aeronaves, mostrando ganancias de tres dígitos en porcentaje. Los ingresos de los primeros nueve meses de 2024 ya superaron el total de ingresos de 2023, con un incremento del 93% en los ingresos por regalías en comparación con el año anterior. Los gastos disminuyeron en 92,000 dólares en el tercer trimestre y en 150,000 dólares durante el período de nueve meses. La empresa mantiene una sólida estabilidad financiera con 1.65 millones de dólares en efectivo y 2.7 millones de dólares en capital de trabajo, sin deudas. Se anticipan múltiples nuevos modelos de automóviles con tecnología SPD-SmartGlass para 2025.
리서치 프론티어스는 2024년 3분기 강력한 재무 결과를 보고하며, 7분기 연속 수익 성장을 기록했습니다. 로열티 수익은 지난해 대비 3분기에 115% 증가하였으며, 특히 자동차 및 항공기 시장에서 세 자리 수의 퍼센트 증가를 보이며 강력한 성장을 보였습니다. 2024년 9개월 동안의 수익은 이미 2023년 전체 수익을 초과했으며, 로열티 수익은 지난해 대비 93% 증가했습니다. 3분기 동안 지출은 92,000달러, 9개월 동안 총 150,000달러 줄었습니다. 회사는 165만 달러의 현금과 270만 달러의 운영 자본으로 강력한 재무 안정성을 유지하고 있으며, 부채는 없습니다. 2025년에는 SPD-SmartGlass 기술을 적용한 여러 신규 자동차 모델이 출시될 예정입니다.
Research Frontiers a rapporté des résultats financiers solides pour le troisième trimestre 2024, marquant son septième trimestre consécutif de croissance des revenus. Les revenus de redevances ont augmenté de 115% au troisième trimestre par rapport à l'année dernière, avec une croissance particulièrement robuste dans les marchés automobile et aéronautique, montrant des gains à trois chiffres en pourcentage. Les revenus des neuf premiers mois de 2024 ont déjà dépassé le total des revenus de 2023, avec une augmentation des revenus de redevances de 93% d'une année sur l'autre. Les dépenses ont diminué de 92 000 dollars au troisième trimestre et de 150 000 dollars pour la période de neuf mois. L'entreprise maintient une forte stabilité financière avec 1,65 million de dollars en espèces et 2,7 millions de dollars en fonds de roulement, sans dettes. Plusieurs nouveaux modèles de voitures bénéficiant de la technologie SPD-SmartGlass sont attendus en 2025.
Research Frontiers berichtete von starken finanziellen Ergebnissen im dritten Quartal 2024 und verzeichnete das siebte Quartal in Folge mit Umsatzwachstum. Die Einnahmen aus Lizenzgebühren stiegen im dritten Quartal im Vergleich zum Vorjahr um 115%, mit besonders starkem Wachstum in den Automobil- und Flugzeugmärkten, wo dreistellige prozentuale Zuwächse erzielt wurden. Die Einnahmen in den ersten neun Monaten des Jahres 2024 übertrafen bereits den Gesamtumsatz von 2023, wobei die Lizenzgebühren im Vergleich zum Vorjahr um 93% gestiegen sind. Die Ausgaben sanken im dritten Quartal um 92.000 Dollar und im Neunmonatszeitraum um 150.000 Dollar. Das Unternehmen weist eine starke finanzielle Stabilität mit 1,65 Millionen Dollar in bar und 2,7 Millionen Dollar im Umlaufvermögen auf, ohne Schulden. In 2025 werden mehrere neue Automodelle mit SPD-SmartGlass-Technologie erwartet.
- 115% increase in Q3 royalty income year-over-year
- Seven consecutive quarters of revenue growth
- 93% increase in nine-month royalty income compared to 2023
- Expense reduction of $92,000 in Q3
- Strong financial position with $1.65M cash and $2.7M working capital
- No debt on balance sheet
- Still operating at a net loss, although reduced to $0.00 per share in Q3
Insights
The Q3 results show remarkable progress in Research Frontiers' financial performance. The 115% increase in quarterly royalty income, marking seven consecutive quarters of growth, signals strong market adoption of their SPD-SmartGlass technology. With revenue for the first nine months of 2024 already exceeding full-year 2023 figures and a 93% year-over-year increase, the company demonstrates substantial revenue momentum.
Cost management is equally impressive, with expense reductions of
The triple-digit growth in automotive and aircraft segments demonstrates strong market penetration in high-value sectors. The planned expansion into multiple new car models from Asian and European OEMs in 2025 suggests a robust product pipeline and growing market acceptance. This diversification across automotive, aircraft, trains and architectural applications reduces market risk and creates multiple revenue streams.
The technology's adoption by major OEMs validates the commercial viability of SPD-SmartGlass and positions the company for sustained growth in the smart glass market, which is seeing increasing demand for energy-efficient and comfort-enhancing solutions.
WOODBURY, N.Y., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third 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, November 7, 2024, 4:30 PM ET | |
| • | Dial-in Information:1-888-334-5785 | |
| • | Replay: Available on Friday, November 8, 2024 for 90 days at https://smartglass-ir.com/ | |
Key Comments:
| 1. | Revenue Growth, Especially in the Automotive and Aircraft Markets Research Frontiers royalty income increased by over |
| 2. | Expansion of Product Pipeline. 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. The Company anticipates multiple new car models featuring SPD-SmartGlass technology in 2025 from OEMs in Asia and Europe. |
| 3. | Operational Efficiencies and Financial Stability. Expenses decreased by 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
| September 30, 2024 (Unaudited) | December 31, 2023 (See Note 1) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,647,987 | $ | 2,475,958 | ||||
| Royalties receivable, net of reserves of | 1,048,008 | 1,003,404 | ||||||
| Prepaid expenses and other current assets | 154,727 | 96,784 | ||||||
| Total current assets | 2,850,722 | 3,576,146 | ||||||
| Fixed assets, net | 20,758 | 39,598 | ||||||
| Operating lease ROU assets | 71,486 | 178,715 | ||||||
| Deposits and other assets | 56,066 | 56,066 | ||||||
| Total assets | $ | 2,999,032 | $ | 3,850,525 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 109,968 | $ | 212,359 | ||||
| Accounts payable | 34,306 | 50,880 | ||||||
| Accrued expenses | 31,799 | 14,192 | ||||||
| Total current liabilities | 176,073 | 277,431 | ||||||
| Operating lease liability, net of current portion | - | 55,363 | ||||||
| Total liabilities | 176,073 | 332,794 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value | 3,352 | 3,351 | ||||||
| Additional paid-in capital | 127,787,890 | 127,779,221 | ||||||
| Accumulated deficit | (124,968,283 | ) | (124,264,841 | ) | ||||
| Total shareholders’ equity | 2,822,959 | 3,517,731 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,999,032 | $ | 3,850,525 | ||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Fee income | $ | 1,157,380 | $ | 597,362 | $ | 354,408 | $ | 164,146 | ||||||||
| Operating expenses | 1,565,152 | 1,695,129 | 454,866 | 542,635 | ||||||||||||
| Research and development | 409,817 | 430,150 | 131,246 | 135,319 | ||||||||||||
| Total expenses | 1,974,969 | 2,125,279 | 586,112 | 677,954 | ||||||||||||
| Operating loss | (817,589 | ) | (1,527,917 | ) | (231,704 | ) | (513,808 | ) | ||||||||
| Net investment income | 78,995 | 99,463 | 29,736 | 41,642 | ||||||||||||
| Other income | 35,152 | - | 35,152 | - | ||||||||||||
| Net loss | $ | (703,442 | ) | $ | (1,428,454 | ) | $ | (166,816 | ) | $ | (472,166 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.00 | ) | $ | (0.01 | ) | ||||
| Weighted average number of common shares outstanding | 33,515,327 | 33,435,074 | 33,517,787 | 33,509,287 | ||||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
For the nine months ended September 30, 2023 and 2024
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | 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 | - | - | - | (1,428,454 | ) | (1,428,454 | ) | |||||||||||||
| Balance, September 30, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (123,784,931 | ) | $ | 3,852,913 | ||||||||||
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | 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 | - | - | - | (703,442 | ) | (703,442 | ) | |||||||||||||
| Balance, September 30, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,968,283 | ) | $ | 2,822,959 | ||||||||||
For the three months ended September 30, 2023 and 2024
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
| Balance, June 30, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (123,312,765 | ) | $ | 4,325,079 | ||||||||||
| Net loss | - | - | - | (472,166 | ) | (472,166 | ) | |||||||||||||
| Balance, September 30, 2023 | 33,509,287 | $ | 3,351 | $ | 127,634,493 | $ | (123,784,931 | ) | $ | 3,852,913 | ||||||||||
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
| Balance, June 30, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,801,467 | ) | $ | 2,989,775 | ||||||||||
| Net loss | - | - | - | (166,816 | ) | (166,816 | ) | |||||||||||||
| Balance, September 30, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,968,283 | ) | $ | 2,822,959 | ||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the nine months ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (703,442 | ) | $ | (1,428,454 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 19,582 | 20,489 | ||||||
| Realized gain on marketable securities | - | (26,375 | ) | |||||
| Unrealized gain on marketable securities | - | (30,399 | ) | |||||
| ROU asset amortization | 107,229 | 109,051 | ||||||
| Credit loss expense | 25,001 | 95,000 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (69,605 | ) | (226,645 | ) | ||||
| Prepaid expenses and other assets | (57,943 | ) | (63,612 | ) | ||||
| Accounts payable and accrued expenses | 1,033 | (52,784 | ) | |||||
| Deferred revenue | - | 3,735 | ||||||
| Operating lease liability | (157,754 | ) | (146,323 | ) | ||||
| Net cash used in operating activities | (835,899 | ) | (1,746,317 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (742 | ) | (1,265 | ) | ||||
| Purchases of marketable securities | - | (5,434,386 | ) | |||||
| Sales of marketable securities | - | 2,991,535 | ||||||
| Net cash used in investing activities | (742 | ) | (2,444,116 | ) | ||||
| 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 | (827,971 | ) | (3,705,931 | ) | ||||
| Cash and cash equivalents at beginning of period | 2,475,958 | 4,230,916 | ||||||
| Cash and cash equivalents at end of period | $ | 1,647,987 | $ | 524,985 | ||||
FAQ
What was Research Frontiers (REFR) revenue growth in Q3 2024?
How much cash does Research Frontiers (REFR) have as of September 30, 2024?
What was Research Frontiers (REFR) earnings per share in Q3 2024?
When will Research Frontiers (REFR) launch new car models with SPD-SmartGlass technology?
