Research Frontiers Reports Fourth Quarter and Full Year 2018 Financial Results

Management to Host Conference Call at 4:30 p.m.

WOODBURY, NY / ACCESSWIRE / March 14, 2019 / Research Frontiers Inc. (NASDAQ: REFR) announced its financial results for its fourth quarter and full year ended December 31, 2018. 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, Seth Van Voorhees, CFO
  • Date/Time: Thursday, March 14, 2019 at 4:30PM ET
  • Dial-in Information: 1-888-334-5785
  • Questions: Email to [email protected]
  • Replay: Available on Friday, March 15, 2019 for 90 days at www.SmartGlass-IR.com

Key Comments:

  • In October 2018, Gauzy Ltd., a licensee of Research Frontiers, announced that it will be producing SPD-Smart light control film for the entire SPD-SmartGlass industry.
    • Gauzy announced that its Tel-Aviv film production line has a capacity to produce up to 364 thousand square meters of film per year per shift, and that its initial production will be 1.2 meters wide, and in 2019 they will be expanding this to 1.5 meters wide rolls and in 2020 to 1.8 meters wide rolls.
  • In February 2019, Gauzy Ltd. announced its second production facility in Stuttgart, Germany to produce SPD-Smart light control film for the entire SPD-SmartGlass industry.
    • This state-of-the-art facility with specially-designed coating and curing areas that will give Gauzy the capacity to coat over one million square meters of SPD film per year. Gauzy expects the new facility to be in production by the summer of 2019.
  • The Company’s SPD-SmartGlass technology has been used in the roofs of at least four new car models over the past four months.
  • The Company’s fee income from licensing activities for the year ended December 31, 2018 was $1,488,642 as compared to $1,509,070 for the year ended December 31, 2017 representing a $20,428 decrease between these two periods.
    • This decrease in revenues was principally the result of the adoption of ASC 606 which is a different revenue recognition standard which applies to revenues reported beginning with the first quarter of 2018.
    • The Company would have reported higher fee income of $1,553,468, representing a $64,826 increase in the reported fee income for the year ending December 31, 2018 had it continued to use the accounting guidance used prior to the adoption of ASC 606.
  • Expenses decreased by $20,820 for the year ended December 31, 2018 to $3,906,861 from $3,927,681 for the year ended December 31, 2017. This represents the fourth consecutive year that expenses at the Company have decreased and the fifth consecutive year of lower operating losses for the Company compared to the prior year.
  • The Company’s net loss was $2,686,128 ($0.10 per common share) for the year ended December 31, 2018 as compared to $2,413,859 ($0.10 per common share) for the year ended December 31, 2017.
  • The Company raised approximately $3.3 million from the issuances of common stock and warrants and exercise of options and warrants in 2018.
    • The Company has also received an additional $1.1 million from the early exercise of warrants to date during the first quarter of 2019.
  • The Company believes that its current cash and cash equivalents will fund its operations at least through the end of 2020.
For more details, please see the Company’s Quarterly Report on Form 10-K which was filed today with the SEC, the contents of which are incorporated by reference herein.

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.

CONTACT:

Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
[email protected]

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 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.

RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Balance Sheets
December 31, 2018 and 2017

2018 2017

Assets

Current assets:
Cash
and cash equivalents
$ 2,969,416 $ 1,737,847
Royalties receivable, net of reserves of $1,094,774 in 2018 and $1,051,424 in 2017
689,677 597,441
Prepaid expenses and other current assets
52,729 29,697

Total current assets
3,711,822 2,364,985

Fixed
assets, net
313,177 482,561
Deposits and other assets
33,567 33,567
Total assets
$ 4,058,566 $ 2,881,113

Liabilities and Shareholders’ Equity

Current liabilities:
Accounts payable
$ 133,486 $ 58,090
Accrued expenses and other
273,606 254,833
Deferred revenue
50,570 824
Total current liabilities
457,662 313,747

Warrant liability
501,414

Shareholders’ equity:
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 27,665,211 in 2018 and 24,043,846 in 2017
2,767 2,404
Additional paid-in capital
114,787,657 111,627,789
Accumulated deficit
(111,690,934 ) (109,062,827 )
Total shareholders’ equity
3,099,490 2,567,366

Total liabilities and shareholders’ equity
$ 4,058,566 $ 2,881,113

RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Operations
Years ended December 31, 2018, 2017 and 2016

2018 2017 2016

Fee
income
$ 1,488,642 $ 1,509,070 $ 1,236,097

Operating expenses
3,043,460 3,127,979 4,086,408
Research and development
863,401 799,702 1,417,634
Total Expenses
3,906,861 3,927,681 5,504,042

Operating loss
(2,418,219 ) (2,418,611 ) (4,267,945 )

Warrant market adjustment
(278,044 )
Net
investment income
10,135 4,752 29,535

Net
loss
(2,686,128 ) (2,413,859 ) (4,238,410 )

Basic
and diluted net loss per common share
$ (0.10 ) $ (0.10 ) $ (0.18 )

Weighted average number of common shares outstanding
25,956,232 24,043,846 24,043,846

2018 2017 2016

Fee
income
$ 1,488,642 $ 1,509,070 $ 1,236,097

Operating expenses
3,043,460 3,127,979 4,086,408
Research and development
863,401 799,702 1,417,634
Total Expenses
3,906,861 3,927,681 5,504,042

Operating loss
(2,418,219 ) (2,418,611 ) (4,267,945 )

Warrant market adjustment
(278,044 )
Net
investment income
10,135 4,752 29,535

Net
loss
(2,686,128 ) (2,413,859 ) (4,238,410 )

Basic
and diluted net loss per common share
$ (0.10 ) $ (0.10 ) $ (0.18 )

Weighted average number of common shares outstanding
25,956,232 24,043,846 24,043,846

RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Shareholders’ Equity
Years ended December 31, 2018, 2017 and 2016

2018 2017 2016

Fee
income
$ 1,488,642 $ 1,509,070 $ 1,236,097

Operating expenses
3,043,460 3,127,979 4,086,408
Research and development
863,401 799,702 1,417,634
Total Expenses
3,906,861 3,927,681 5,504,042

Operating loss
(2,418,219 ) (2,418,611 ) (4,267,945 )

Warrant market adjustment
(278,044 )
Net
investment income
10,135 4,752 29,535

Net
loss
(2,686,128 ) (2,413,859 ) (4,238,410 )

Basic
and diluted net loss per common share
$ (0.10 ) $ (0.10 ) $ (0.18 )

Weighted average number of common shares outstanding
25,956,232 24,043,846 24,043,846

RESEARCH FRONTIERS INCORPORATED
Unaudited Consolidated Statements of Cash Flows
Years ended December 31, 2018, 2017 and 2016

2018 2017 2016
Cash
flows from operating activities:
Net
loss
$ (2,686,128 ) $ (2,413,859 ) $ (4,238,410 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
181,047 175,643 188,501
Warrant market adjustment
278,044
Share based compensation
69,309 76,299 67,531
Loss
on sale of fixed asset
1,775
Bad
debts
43,350 56,415 480,563
Change in assets and liabilities:
Royalties receivable
(77,565 ) 463,290 (283,035 )
Prepaid expenses and other current assets
(23,032 ) 227,195 (123,427 )
Accounts payable and accrued expenses
94,169 (56,347 ) (98,941 )
Deferred revenue
49,746 824
Net
cash used in operating activities
(2,071,060 ) (1,470,540 ) (4,005,443 )

Cash
flows from investing activities:
Purchases of fixed assets
(11,663 ) (6,549 ) (11,715 )
Proceeds from sale of fixed asset
6,000
Proceeds from sale of investment
1,523,333 (9,549 )
Net
cash (used in) provided by investing activities
(11,663 ) 1,516,784 (15,264 )

Cash
flows from financing activities:
Net
proceeds from issuances of common stock and warrants and exercise
of options and warrants
3,314,292
Net
cash (used in) provided by financing activities
3,314,292

Net
increase (decrease) in cash and cash equivalents
1,231,569 46,244 (4,020,707 )

Cash
and cash equivalents at beginning of year
1,737,847 1,691,603 5,712,310
Cash
and cash equivalents at end of year
$ 2,969,416 $ 1,737,847 $ 1,691,603

SOURCE: Research Frontiers Inc.

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