REFR - Research Frontiers Reports Third Quarter 2021 Financial Results
Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y., Nov. 04, 2021 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third 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: November 4, 2021, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Friday, November 5, 2021 for 90 days at SmartGlass-IR.com
Key Comments:
| 1. |
| Fee income from licensing activities for the three months ended September 30, 2021 was $723,465 as compared to $165,628 for the three months ended September 30, 2020, representing a $557,837 increase between these two periods. The Company’s fee income from licensing activities for the nine months ended September 30, 2021 was $1,050,526 as compared to $697,914 for the nine months ended September 30, 2020, representing a $352,612 increase between these two periods. Higher fee income in the automotive, architectural and display markets were partially offset by lower fee income from the aircraft market. Higher fee income in the architectural and automotive markets was predominantly from one-time settlements of lawsuits brought by Research Frontiers in 2018 against two licensees for royalty payments due, as well as for a current special government contract in the automotive area. |
| 2. |
| Total expenses decreased by $271,625, or approximately 11.4%, for the first nine months of 2021 as compared to the same period in 2020. |
| 3. |
| The Company recorded a net profit of $21,614 for the three-month period ending September 30, 2021 compared a net loss of $434,223 for the same period last year. The Company recorded a net loss for the nine-month period ending September 30, 2021 of $1,063,628 compared to a net loss of $1,457,798 for the same period last year. |
| 4. |
| As of September 30, 2021, the Company had cash and cash equivalents of approximately $3.0 million and working capital of approximately $4.2 million. The Company expects to have sufficient working capital for at least the next 23 months of operations. |
| 5. |
| Products using Research Frontiers’ patented SPD-Smart light control technology have been used in existing series production programs such as various models of Mercedes and McLaren cars. 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. In aircraft, SPD-Smart electronically dimmable windows are featured on such aircraft as the King Air, HondaHet, Airbus EC175 VIP helicopter and the new Epic aircraft currently being delivered to customers. It is also on the Airbus A220 ACJ program at Comlux and various production and super yachts. Recently Research Frontiers licensee and strategic investor Gauzy announced that its customer Rehau has delivered SPD-SmartGlass for Germany’s Deutsche Bahn (DB) Idea Train with laser-etched individually-controllable segments. SPD_SmartGlass is also being used in trains in Japan and North America. At the IAA 2021 Auto Show in Munich, Germany in October, BMW featured an innovative headlight using SPD-SmartGlass technology to create a unique and highly esthetic vehicle design that also controls the headlight elegantly and functionally. LG Display combined SPD film with OLED display technology to show a window that turns into a high definition and vibrant display because of the SPD function. SPD, presented with and without invisible segmentation, was also shown at the Munich Auto Show in a sunroof application. Partners of Gauzy in Munich included LG Display, Texas Instruments, Sekisui, Brose, and Vision Systems, longtime valued partner of both Gauzy and Research Frontiers. 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.
A bout 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 |
| September 30, 2021 (Unaudited) |
| December 31, 2020 |
| Current assets: |
| Cash and cash equivalents |
| $ |
| 2,984,612 |
| $ |
| 4,772,705 |
| Royalty receivables, net of reserves of $972,202 in 2021 and $972,202 in 2020 |
| 1,352,971 |
| 598,292 |
| Prepaid expenses and other current assets |
| 158,695 |
| 56,512 |
| Total current assets |
| 4,496,278 |
| 5,427,509 |
| Fixed assets, net |
| 100,324 |
| 121,772 |
| Operating lease ROU assets |
| 506,479 |
| 616,442 |
| Deposits and other assets |
| 33,567 |
| 33,567 |
| Total assets |
| $ |
| 5,136,648 |
| $ |
| 6,199,290 |
| Liabilities and Shareholders’ Equity |
| Current liabilities: |
| Current portion of operating lease liability |
| $ |
| 178,070 |
| $ |
| 166,377 |
| Accounts payable |
| 33,566 |
| 33,410 |
| Accrued expenses and other |
| 51,082 |
| 26,279 |
| Deferred revenue |
| 13,304 |
| - |
| Total current liabilities |
| 276,022 |
| 226,066 |
| Operating lease liability, net of current portion |
| 510,987 |
| 646,219 |
| Total liabilities |
| 787,009 |
| 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 |
| (118,904,404 |
| ) |
| (117,840,776 |
| ) |
| Total shareholders’ equity |
| 4,349,639 |
| 5,327,005 |
| Total liabilities and shareholders’ equity |
| $ |
| 5,136,648 |
| $ |
| 6,199,290 |
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Nine months ended September 30, |
| Three months ended September 30, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Fee income |
| $ |
| 1,050,526 |
| $ |
| 697,914 |
| $ |
| 723,465 |
| $ |
| 165,628 |
| Operating expenses |
| 1,699,698 |
| 1,924,828 |
| 571,024 |
| 472,424 |
| Research and development |
| 420,203 |
| 466,698 |
| 135,215 |
| 136,649 |
| Total expenses |
| 2,119,901 |
| 2,391,526 |
| 706,239 |
| 609,073 |
| Operating income (loss) |
| (1,069,375 |
| ) |
| (1,693,612 |
| ) |
| 17,226 |
| (443,445 |
| ) |
| Other income - PPP loan forgiveness |
| - |
| 202,052 |
| - |
| 7,912 |
| Net investment income |
| 5,747 |
| 33,762 |
| 4,388 |
| 1,310 |
| Net income (loss) |
| $ |
| (1,063,628 |
| ) |
| $ |
| (1,457,798 |
| ) |
| $ |
| 21,614 |
| $ |
| (434,223 |
| ) |
| Basic and diluted net income (loss) per common share |
| $ |
| (0.03 |
| ) |
| $ |
| (0.05 |
| ) |
| $ |
| 0.00 |
| $ |
| (0.01 |
| ) |
| Weighted average number of common shares outstanding |
| 31,645,227 |
| 31,458,238 |
| 31,650,396 |
| 31,575,786 |
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
For the nine months ended September 30, 2020 and 2021
| Common Stock |
| Additional Paid-in |
| Accumulated |
| Shares |
| Amount |
| Capital |
| Deficit |
| Total |
| Balance, January 1, 2020 |
| 31,254,262 |
| $ |
| 3,125 |
| $ |
| 122,552,895 |
| $ |
| (115,499,912 |
| ) |
| $ |
| 7,056,108 |
| Exercise of options and warrants |
| 321,524 |
| 33 |
| 284,174 |
| - |
| 284,207 |
| Net loss |
| - |
| - |
| - |
| (1,457,798 |
| ) |
| (1,457,798 |
| ) |
| Balance, September 30, 2020 |
| 31,575,786 |
| $ |
| 3,158 |
| $ |
| 122,837,069 |
| $ |
| (116,957,710 |
| ) |
| $ |
| 5,882,517 |
| Balance, January 1, 2021 |
| 31,575,786 |
| $ |
| 3,158 |
| $ |
| 123,164,623 |
| $ |
| (117,840,776 |
| ) |
| $ |
| 5,327,005 |
| Exercise of options |
| 74,610 |
| 7 |
| 86,255 |
| - |
| 86,262 |
| Net loss |
| - |
| - |
| - |
| (1,063,628 |
| ) |
| (1,063,628 |
| ) |
| Balance, September 30, 2021 |
| 31,650,396 |
| $ |
| 3,165 |
| $ |
| 123,250,878 |
| $ |
| (118,904,404 |
| ) |
| $ |
| 4,349,639 |
For the three months ended September 30, 2020 and 2021
| Common Stock |
| Additional Paid-in |
| Accumulated |
| Shares |
| Amount |
| Capital |
| Deficit |
| Total |
| Balance, July 1, 2020 |
| 31,575,786 |
| $ |
| 3,158 |
| $ |
| 122,837,069 |
| $ |
| (116,523,487 |
| ) |
| $ |
| 6,316,740 |
| Net loss |
| - |
| - |
| - |
| (434,223 |
| ) |
| (434,223 |
| ) |
| Balance, September 30, 2020 |
| 31,575,786 |
| $ |
| 3,158 |
| $ |
| 122,837,069 |
| $ |
| (116,957,710 |
| ) |
| $ |
| 5,882,517 |
| Balance, July 1, 2021 |
| 31,650,396 |
| $ |
| 3,165 |
| $ |
| 123,250,878 |
| $ |
| (118,926,018 |
| ) |
| $ |
| 4,328,025 |
| Net income |
| - |
| - |
| - |
| 21,614 |
| 21,614 |
| Balance, September 30, 2021 |
| 31,650,396 |
| $ |
| 3,165 |
| $ |
| 123,250,878 |
| $ |
| (118,904,404 |
| ) |
| $ |
| 4,349,639 |
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the nine months ended September 30, |
| 2021 |
| 2020 |
| Cash flows from operating activities: |
| Net loss |
| $ |
| (1,063,628 |
| ) |
| $ |
| (1,457,798 |
| ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
| Depreciation and amortization |
| 8,838 |
| 64,193 |
| Other income - PPP loan forgiveness |
| - |
| (202,052 |
| ) |
| Bad debts expense |
| - |
| 53,217 |
| Change in assets and liabilities: |
| Royalty receivables |
| (754,679 |
| ) |
| 48,234 |
| Prepaid expenses and other current assets |
| (102,183 |
| ) |
| (48,206 |
| ) |
| Accounts payable and accrued expenses |
| 24,959 |
| (110,921 |
| ) |
| Deferred revenue |
| 13,304 |
| 13,777 |
| Net cash used in operating activities |
| (1,873,389 |
| ) |
| (1,639,556 |
| ) |
| Cash flows from investing activities: |
| Purchases of fixed assets |
| (966 |
| ) |
| (2,168 |
| ) |
| Proceeds from sale of fixed asset |
| - |
| 3,713 |
| Net cash (used in) provided by investing activities |
| (966 |
| ) |
| 1,545 |
| 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 |
| (1,788,093 |
| ) |
| (1,151,752 |
| ) |
| Cash and cash equivalents at beginning of period |
| 4,772,705 |
| 6,591,960 |
| Cash and cash equivalents at end of period |
| $ |
| 2,984,612 |
| $ |
| 5,440,208 |