Research Frontiers Reports Second Quarter 2021 Financial Results

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:

1. 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.
   
   
2. Total expenses decreased by $368,791, or approximately 21%, 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.
   
   
3. 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.
   
   
4. 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 $972,202 in 2021 and $972,202 in 2020			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 $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,650,396 in 2021 and 31,575,786 in 2020			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