WOODBURY, N.Y., Nov. 03, 2022 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its September 30, 2022 third quarter. 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: November 3, 2022, 4:30 PM ET | |
| ● | Dial-in Information:1-888-334-5785 | |
| ● | Replay: Available on Friday, November 4, 2022 for 90 days at https://smartglass-ir.com/ |
Key Comments:
| 1. | After adjusting for one-time events relating to the timing of payments and new and amended license agreements entered into in 2021, fee income was higher in the third quarter of 2022 as compared to the third quarter of 2021, primarily as a result of higher fee income from the automotive and aircraft segments. Fee income was also higher in the third quarter of 2022 as compared to the second quarter of 2022, primarily as a result of higher fee income from the automotive and aircraft segments. |
| 2. | This year Cadillac had multiple high-profile public exhibitions of its Cadillac Celestiq which enters series production next year and will be produced at the General Motors Tech Center in Warren Michigan. The Celestiq is Cadillac’s all-electric luxury flagship, and features a four-quadrant SPD-SmartGlass roof using Research Frontiers variable tint technology. An additional car was introduced by another European automobile manufacturer in the third quarter of 2022 using Research Frontiers SPD-SmartGlass technology in its panoramic glass roof. |
| 3. | The Company expects revenue in all market segments to increase as new car models, aircraft, trains and other products using the Company’s SPD-SmartGlass technology are introduced into the market. |
| 4. | Operating expenses decreased by $83,548, and research and development expenses increased by $13,941 in the third quarter of 2022 as compared to the same period in 2021. |
| 5. | The Company’s net loss was $483,729 ($0.02 per common share) for the three months ended September 30, 2022 as compared to net income of $21,614 ($0.00 per common share) for the three months ended September 30, 2021. The Company’s net loss was $258,109 lower in the third quarter of 2022 compared to the previous quarter. |
| 6. | As of September 30, 2022, the Company had cash and cash equivalents of approximately $4.8 million and working capital of approximately $5.2 million. The Company has no debt and expects to have sufficient working capital for at least the next five years of operations. |
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. Celestiq is a trademark of General Motors.
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, 2022 | December 31, 2021 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,798,150 | $ | 269,964 | ||||
| Marketable securities | - | 2,755,111 | ||||||
| Royalty receivables, net of reserves of $1,168,450 in 2022 and $1,016,678 in 2021 | 534,529 | 831,636 | ||||||
| Prepaid expenses and other current assets | 166,571 | 92,931 | ||||||
| Total current assets | 5,499,250 | 3,949,642 | ||||||
| Fixed assets, net | 72,556 | 92,954 | ||||||
| Operating lease ROU assets | 360,164 | 469,824 | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 5,965,537 | $ | 4,545,987 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 193,182 | $ | 182,091 | ||||
| Accounts payable | 38,010 | 66,460 | ||||||
| Accrued expenses and other | 32,946 | 49,385 | ||||||
| Deferred revenue | 3,586 | - | ||||||
| Total current liabilities | 267,724 | 297,936 | ||||||
| Operating lease liability, net of current portion | 317,805 | 464,128 | ||||||
| Total liabilities | 585,529 | 762,064 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,150,396 in 2022 and 31,650,396 in 2021 | 3,315 | 3,165 | ||||||
| Additional paid-in capital | 126,917,736 | 123,467,886 | ||||||
| Accumulated deficit | (121,541,043 | ) | (119,687,128 | ) | ||||
| Total shareholders’ equity | 5,380,008 | 3,783,923 | ||||||
| Total liabilities and shareholders’ equity | $ | 5,965,537 | $ | 4,545,987 | ||||
See accompanying notes to condensed consolidated financial statements.
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Fee income | $ | 409,783 | $ | 1,050,526 | $ | 150,443 | $ | 723,465 | ||||||||
| Operating expenses | 1,770,414 | 1,699,698 | 487,476 | 571,024 | ||||||||||||
| Research and development | 444,413 | 420,203 | 149,156 | 135,215 | ||||||||||||
| Total expenses | 2,214,827 | 2,119,901 | 636,632 | 706,239 | ||||||||||||
| Operating income (loss) | (1,805,044 | ) | (1,069,375 | ) | (486,189 | ) | 17,226 | |||||||||
| Net investment (loss) income | (48,871 | ) | 5,747 | 2,460 | 4,388 | |||||||||||
| Net income (loss) | $ | (1,853,915 | ) | $ | (1,063,628 | ) | $ | (483,729 | ) | $ | 21,614 | |||||
| Basic and diluted net income (loss) per common share | $ | (0.06 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.00 | |||||
| Weighted average number of common shares outstanding | 31,710,179 | 31,645,227 | 31,829,744 | 31,650,396 | ||||||||||||
See accompanying notes to condensed consolidated financial statements.
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
For the nine months ended September 30, 2021 and 2022
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
| 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 | ||||||||||
| Balance, January 1, 2022 | 31,650,396 | $ | 3,165 | $ | 123,467,886 | $ | (119,687,128 | ) | $ | 3,783,923 | ||||||||||
| Issuance of common stock and warrants | 1,500,000 | 150 | 3,449,850 | - | 3,450,000 | |||||||||||||||
| Net loss | - | - | - | (1,853,915 | ) | (1,853,915 | ) | |||||||||||||
| Balance, September 30, 2022 | 33,150,396 | $ | 3,315 | $ | 126,917,736 | $ | (121,541,043 | ) | $ | 5,380,008 | ||||||||||
For the three months ended September 30, 2021 and 2022
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
| 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 | ||||||||||
| Balance, July 1, 2022 | 31,650,396 | $ | 3,165 | $ | 123,467,886 | $ | (121,057,314 | ) | $ | 2,413,737 | ||||||||||
| Issuance of common stock and warrants | 1,500,000 | 150 | 3,449,850 | - | 3,450,000 | |||||||||||||||
| Net loss | - | - | - | (483,729 | ) | (483,729 | ) | |||||||||||||
| Balance, September 30, 2022 | 33,150,396 | $ | 3,315 | $ | 126,917,736 | $ | (121,541,043 | ) | $ | 5,380,008 | ||||||||||
See accompanying notes to condensed consolidated financial statements.
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the nine months ended September 30, | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,853,915 | ) | $ | (1,063,628 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 21,614 | 22,414 | ||||||
| Realized loss on marketable securities | 60,143 | - | ||||||
| Unrealized loss on marketable securities | - | 5,545 | ||||||
| Bad debts | 151,772 | - | ||||||
| ROU asset amortization | 109,660 | 109,963 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | 145,335 | (754,679 | ) | |||||
| Prepaid expenses and other current assets | (73,640 | ) | (102,183 | ) | ||||
| Accounts payable and accrued expenses | (44,889 | ) | 24,959 | |||||
| Deferred revenue | 3,586 | 13,304 | ||||||
| Operating lease liability | (135,232 | ) | (123,539 | ) | ||||
| Net cash used in operating activities | (1,615,566 | ) | (1,867,844 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (1,216 | ) | (966 | ) | ||||
| Purchases of marketable securities | - | (3,433,633 | ) | |||||
| Proceeds from sales of marketable securities | 2,694,968 | 650,000 | ||||||
| Net cash provided by (used in) investing activities | 2,693,752 | (2,784,599 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from sale of common stock and warrants | 3,450,000 | - | ||||||
| Proceeds from exercise of options | - | 86,262 | ||||||
| Net cash provided by financing activities | 3,450,000 | 86,262 | ||||||
| Net increase (decrease) in cash and cash equivalents | 4,528,186 | (4,566,181 | ) | |||||
| Cash and cash equivalents at beginning of period | 269,964 | 4,772,705 | ||||||
| Cash and cash equivalents at end of period | $ | 4,798,150 | $ | 206,524 | ||||
See accompanying notes to condensed consolidated financial statements.
