Research Frontiers Reports Second Quarter 2025 Financial Results and Will Host a Conference Call at 4:30p.m. Today
MWN-AI** Summary
Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for the second quarter of 2025, reporting a net loss of $981,513, or $0.03 per share, a significant increase from a loss of $536,626, or $0.02 per share, in the same period of 2024. Key contributing factors to this loss included one-time accounting charges related to the bankruptcy of a European licensee supplying SPD-SmartGlass roofs for Ferrari, and non-cash expenses from stock option vesting. Despite these challenges, the company expects revenue growth across various sectors as it continues to innovate and expand its product pipeline.
During the first half of 2025, Research Frontiers saw an increase in royalties primarily from automotive giants Ferrari and Cadillac, who are ramping up production of vehicles featuring SPD-SmartGlass technology. Additionally, Mercedes debuted a luxury van at the Shanghai Auto Show showcasing the innovative use of smart glass, further boosting potential sales. The company successfully managed the transition of its Ferrari business to another European licensee post-bankruptcy, mitigating risk and retaining expected revenue streams.
As of June 30, 2025, the company reported cash and equivalents of approximately $1.3 million and was debt-free, with working capital at $1.7 million. CEO Joseph M. Harary emphasized ongoing collaboration with OEMs and the anticipated launch of a retrofit application within the architectural market, which could significantly increase revenue by facilitating the adoption of SPD-SmartGlass in various building applications.
A conference call is scheduled for today at 4:30 PM ET, where management will delve deeper into the financial results and operational developments. Investors can access the call through dial-in information or via a conference link, with a replay available for 90 days following the event. For more details, interested parties can refer to the company’s Quarterly Report filed with the SEC.
MWN-AI** Analysis
In reviewing Research Frontiers Inc. (Nasdaq: REFR) second-quarter financial results for 2025, several key points emerge that investors should consider before making decisions regarding the stock. While the company reported a net loss of $981,513, it is essential to contextualize this figure within the broader operational trends and the potential for future growth.
The most significant highlight is the expansion of the company’s SPD-SmartGlass technology usage, particularly in high-profile automotive brands like Ferrari and Cadillac. These partnerships signal a solid demand trajectory, especially as royalties from these OEMs are expected to sustain growth in the second half of 2025. Moreover, the launch of a new luxury vehicle by Mercedes featuring Research Frontiers' technology provides an additional catalyst for revenue generation in the automotive sector.
However, the reported losses are primarily attributable to one-time accounting charges from a bankruptcy of a European licensee and stock option vesting costs. These factors are non-recurring and may not reflect the underlying health of the business. The transition of business to a new licensee for Ferrari demonstrates the company’s proactive approach to operational setbacks, indicating management's resilience and the strategic importance of their partnerships.
With a debt-free balance sheet and approximately $1.3 million in cash, Research Frontiers is positioned to weather short-term challenges while capitalizing on the growing market for smart glass in automotive, architectural, and other industries later in 2025. The anticipated introduction of retrofit applications for architectural markets suggests a potential for significant revenue inflow, spotlighting a diversification strategy that could enhance value.
Investors should weigh these market opportunities against the current stock pricing and consider the upcoming earnings call for clarifications on operational performance and forward guidance. Overall, while there are short-term hurdles, the long-term growth trajectory driven by strategic partnerships presents a compelling investment case for Research Frontiers.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
WOODBURY, N.Y., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR ) announced its financial results for its second quarter of 2025. 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 7, 2025, 4:30 PM ET | |
| • | Dial-in Information: 1-888-334-5785 | |
| • | Conference Link: https://join.broaddata.com/?id=research-frontiers | |
| • | Replay: Available on Friday, August 8, 2025 for 90 days at https://smartglass-ir.com/ | |
Key Comments:
| 1. | Expansion of Product Pipeline and Acceleration of Use of SPD by Ferrari and Cadillac . Royalties from the automotive market came primarily from Ferrari and Cadillac, both of which expanded production in the first half of 2025 of vehicles using the Company’s SPD-SmartGlass technology. Strong sales from these OEMs are also expected in the second half of 2025. Additional royalties from sales to Mercedes and McLaren also were recorded in the first half of 2025. Mercedes also debuted a new luxury van at the Shanghai Auto Show in the second quarter of 2025, featuring new and innovative side windows with an SPD/PDLC combination of smartglass used across 75% of the vehicle’s glass surface. These positive operational results were offset by one-time accounting charges relating to the bankruptcy in the second quarter of 2025 of one of the Company’s European licensees supplying Ferrari with SPD-SmartGlass roofs. In anticipation of this, Research Frontiers and its SPD-Smart film supplier Gauzy worked with the OEM to successfully transition business from this licensee to another European licensee. Production by this licensee for Ferrari and other customers has already begun. 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. |
| 2. | Operational Efficiencies and Financial Stability . Almost entirely as a result of the one-time accounting charges relating to the bankruptcy of one of the Company’s licensees as described above, as well as non-cash expenses relating to the vesting of stock options in the second quarter of 2025 that were granted last year, the Company’s net loss increased to $981,513 ($0.03 per common share) for the first half of 2025 compared to a net loss of $ 536,626 ($0.02 per common share) for the first half of 2024. As of June 30, 2025, the Company was debt-free, had cash and cash equivalents of approximately $1.3 million, and working capital of $1.7 million. |
"While economic activity continues to grow regarding sales of SPD-SmartGlass products, the one-time accounting charges relating to the bankruptcy filing of one of the Company’s licensees and non-cash expenses relating to the vesting of stock options, both occurring in the second quarter negatively affected our second quarter results, which followed a strong first quarter. Because of our close communication with the OEM and our other licensees throughout this process, we were able to successfully transition the Ferrari business to another European licensee," said Joseph M. Harary, President and CEO of Research Frontiers. "The growing and continued use of SPD-SmartGlass products in all industries, combined with our operational efficiencies and our debt-free status, positions us well for continued success and brings us closer to profitability. We also expect the launch of our retrofit application in the architectural market later this year to bring in significant revenues from SPD-SmartGlass in the architectural glass market, while also reducing the costs and speeding up installation and adoption of the use of SPD-SmartGlass in homes, offices and residential high-rise and multi-family buildings."
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, 2025 (Unaudited) | December 31, 2024 (See Note 1) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,274,276 | $ | 1,994,186 | ||||
| Royalties receivable, net of reserves of $1,354,850 in | ||||||||
| 2025 and $1,254,450 in 2024, respectively | 536,373 | 658,213 | ||||||
| Prepaid expenses and other current assets | 161,281 | 93,490 | ||||||
| Total current assets | 1,971,930 | 2,745,889 | ||||||
| Fixed assets, net | 9,095 | 15,052 | ||||||
| Operating lease ROU assets | 1,135,715 | 1,222,640 | ||||||
| Deposits and other assets | 56,066 | 56,066 | ||||||
| Total assets | $ | 3,172,806 | $ | 4,039,647 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 137,817 | $ | 129,875 | ||||
| Accounts payable | 24,358 | 85,825 | ||||||
| Accrued expenses | 46,497 | 53,327 | ||||||
| Deferred revenue | 71,563 | - | ||||||
| Total current liabilities | 280,235 | 269,027 | ||||||
| Operating lease liability, net of current portion | 1,094,545 | 1,166,285 | ||||||
| Total liabilities | 1,374,780 | 1,435,312 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,648,221 in 2025 and 2024, respectively | 3,365 | 3,365 | ||||||
| Additional paid-in capital | 128,352,397 | 128,177,193 | ||||||
| Accumulated deficit | (126,557,736 | ) | (125,576,223 | ) | ||||
| Total shareholders’ equity | 1,798,026 | 2,604,335 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,172,806 | $ | 4,039,647 |
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Six months ended June 30, | Three months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Fee income | $ | 689,680 | $ | 802,972 | $ | 129,904 | $ | 489,594 | ||||||||
| Operating expenses | 1,412,398 | 1,110,285 | 775,922 | 476,898 | ||||||||||||
| Research and development | 331,963 | 278,571 | 169,086 | 128,830 | ||||||||||||
| Total expenses | 1,744,361 | 1,388,856 | 945,008 | 605,728 | ||||||||||||
| Operating loss | (1,054,681 | ) | (585,884 | ) | (815,104 | ) | (116,134 | ) | ||||||||
| Net interest income | 25,811 | 49,258 | 11,278 | 22,112 | ||||||||||||
| Other income | 47,357 | - | - | - | ||||||||||||
| Net loss | $ | (981,513 | ) | $ | (536,626 | ) | $ | (803,826 | ) | $ | (94,022 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.00 | ) | ||||
| Weighted average number of common shares outstanding | 33,648,221 | 33,514,097 | 33,648,221 | 33,517,787 |
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
For the six months ended June 30, 2025 and 2024
| 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 | - | - | - | (536,626 | ) | (536,626 | ) | |||||||||||||
| Balance, June 30, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,801,467 | ) | $ | 2,989,775 | ||||||||||
| Balance, January 1, 2025 | 33,648,221 | $ | 3,365 | $ | 128,177,193 | $ | (125,576,223 | ) | $ | 2,604,335 | ||||||||||
| Share-based compensation | - | - | 175,204 | - | 175,204 | |||||||||||||||
| Net loss | - | - | - | (981,513 | ) | (981,513 | ) | |||||||||||||
| Balance, June 30, 2025 | 33,648,221 | $ | 3,365 | $ | 128,352,397 | $ | (126,557,736 | ) | $ | 1,798,026 |
For the three months ended June 30, 2025 and 2024
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | 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 | ||||||||||
| Balance, March 31, 2025 | 33,648,221 | $ | 3,365 | $ | 128,177,193 | $ | (125,753,910 | ) | $ | 2,426,648 | ||||||||||
| Share-based compensation | - | - | 175,204 | - | 175,204 | |||||||||||||||
| Net loss | - | - | - | (803,826 | ) | (803,826 | ) | |||||||||||||
| Balance, June 30, 2025 | 33,648,221 | $ | 3,365 | $ | 128,352,397 | $ | (126,557,736 | ) | $ | 1,798,026 |
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Six months ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (981,513 | ) | $ | (536,626 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 6,166 | 12,951 | ||||||
| Share-based compensation | 175,204 | - | ||||||
| Credit loss expense | 124,253 | - | ||||||
| ROU asset amortization | 86,925 | 71,486 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (2,413 | ) | (75,096 | ) | ||||
| Prepaid expenses and other assets | (67,791 | ) | (107,898 | ) | ||||
| Accounts payable and accrued expenses | (68,297 | ) | 36,108 | |||||
| Deferred revenue | 71,563 | 125,000 | ||||||
| Operating lease liability | (63,798 | ) | (103,897 | ) | ||||
| Net cash used in operating activities | (719,701 | ) | (577,972 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (209 | ) | (154 | ) | ||||
| Net cash used in investing activities | (209 | ) | (154 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from exercise of options | - | 8,670 | ||||||
| Net cash provided by financing activities | - | 8,670 | ||||||
| Net decrease in cash and cash equivalents | (719,910 | ) | (569,456 | ) | ||||
| Cash and cash equivalents at beginning of year | 1,994,186 | 2,475,958 | ||||||
| Cash and cash equivalents at end of period | $ | 1,274,276 | $ | 1,906,502 |
FAQ**
How does Research Frontiers Incorporated REFR plan to address the impact of one-time accounting charges from the bankruptcy of a licensee on its financial performance moving forward?
What specific operational efficiencies has Research Frontiers Incorporated REFR achieved that could help improve profitability in the upcoming quarters?
Can you elaborate on the expectations for royalties from the automotive market related to Research Frontiers Incorporated REFR, especially regarding partnerships with Ferrari and Cadillac?
What potential revenue growth does Research Frontiers Incorporated REFR foresee from its forthcoming retrofit application in the architectural market?
**MWN-AI FAQ is based on asking OpenAI questions about Research Frontiers Incorporated (NASDAQ: REFR).
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