Research Frontiers Reports Fourth Quarter and Full Year 2020 Financial Results

March 11, 2021 4:01 PM EST

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

WOODBURY, N.Y., March 11, 2021 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its fourth quarter and year December 31, 2020. 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: March 11, 2021, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Friday, March 12, 2021 for 90 days at www.SmartGlass-IR.com

Key Comments:

  1. Fee and other income for 2020 was $1,064,975. The Company’s fee income from licensing activities for the year ended December 31, 2020 was $828,450 as compared to $1,564,024 for the year ended December 31, 2019. 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, were partially offset by higher fee income from the display market.
  2. Total expenses decreased by $1,307,524, or approximately 28%, for the year ended December 31, 2020 as compared to the same period in 2019.
  3. The Company’s net loss decreased by $1,468,114 to $2,340,864 ($0.07 per common share) for the year ended December 31, 2020. This compares to a net loss of $3,808,978 ($0.13 per common share) in 2019. The net loss for 2020 was Research Frontiers’ lowest net loss in 26 years.
  4. As of December 31, 2020, the Company had cash and cash equivalents of approximately $4.8 million and working capital of approximately $5.2 million. The Company expects to have sufficient working capital for at least the next 33 months of operations.
  5. Since Research Frontiers last conference call, General Motor’s Cadillac division announced that its new ultra-luxury all-electric flagship vehicle, the Celestiq, will offer a four quadrant SPD-SmartGlass roof.

For more details, please see the Company’s Annual Report on Form 10-K 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. HararyPresident and CEOResearch Frontiers Inc.+1-516-364-1902Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATEDConsolidated Balance SheetsDecember 31, 2020 and 2019

  December 31, 2020  December 31, 2019 
Assets      
Current assets:        
Cash and cash equivalents $4,772,705  $6,591,960 
Royalties receivable, net of reserves of $972,202 in 2020 and $1,135,598 in 2019  598,292   656,062 
Prepaid expenses and other current assets  56,512   58,835 
Total current assets  5,427,509   7,306,857 
         
Fixed assets, net  121,772   141,720 
Operating lease ROU assets  616,442   773,989 
Deposits and other assets  33,567   33,567 
Total assets $6,199,290  $8,256,133 
         
Liabilities and Shareholders’ Equity        
         
Current liabilities:        
Current portion of operating lease liability $166,377  $163,236 
Accounts payable  33,410   169,750 
Accrued expenses and other  26,279   46,709 
Deferred revenue  -   7,734 
Total current liabilities  226,066   387,429 
         
Operating lease liability, net of current portion  646,219   812,596 
Total liabilities  872,285   1,200,025 
         
Shareholders’ equity:        
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,575,786 in 2020 and 31,254,262 in 2019  3,158   3,125 
Additional paid-in capital  123,164,623   122,552,895 
Accumulated deficit  (117,840,776)  (115,499,912)
Total shareholders’ equity  5,327,005   7,056,108 
         
Total liabilities and shareholders’ equity $6,199,290  $8,256,133 

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of OperationsYears ended December 31, 2020 and 2019

  2020  2019 
       
Fee income $828,450  $1,564,024 
         
Operating expenses  2,777,535   3,677,740 
Research and development  628,304   1,035,623 
Total expenses  3,405,839   4,713,363 
         
Operating loss  (2,577,389)  (3,149,339)
         
Warrant market adjustment  -   (652,025)
Loss on disposal of fixed asset  -   (50,666)
PPP loan forgiveness  202,052   - 
Net investment income  34,473   43,052 
         
Net loss $(2,340,864) $(3,808,978)
         
Basic and diluted net loss per common share $(0.07) $(0.13)
         
Weighted average number of common shares outstanding  31,487,785   30,011,556 

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of Shareholders’ EquityYears ended December 31, 2020 and 2019

  Common Stock  Additional  Accumulated    
  Shares  Amount  Paid-in Capital  Deficit  Total 
                
                
Balance, January 1, 2019  27,665,211  $2,767  $114,787,657  $(111,690,934) $3,099,490 
                     
Exercise of options and warrants  1,587,814   158   1,170,388   -   1,170,546 
Issuance of capital stock  2,001,237   200   4,599,799   -   4,599,999 
Warrants converted to equity  -   -   1,153,439   -   1,153,439 
Share-based compensation  -   -   841,612   -   841,612 
Net loss  -   -   -   (3,808,978)  (3,808,978)
Balance, December 31, 2019  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 
Share-based compensation  -   -   327,554   -   327,554 
Net loss  -   -   -   (2,340,864)  (2,340,864)
Balance, December 31, 2020  31,575,786  $3,158  $123,164,623  $(117,840,776) $5,327,005 

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of Cash FlowsYears ended December 31, 2020 and 2019

  2020  2019 
Cash flows from operating activities:        
Net loss $(2,340,864) $(3,808,978)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  67,082   195,377 
Warrant market adjustment  -   652,025 
Share-based compensation  327,554   841,612 
Loss on disposal of fixed asset  -   50,666 
Bad debts  81,367   156,636 
Other income - PPP loan forgiveness  (202,052)  - 
Change in assets and liabilities:        
Royalty receivables  (23,597)  (123,021)
Prepaid expenses and other current assets  2,323   (6,104)
Accounts payable and accrued expenses  (156,770)  1,904 
Deferred revenue  (7,734)  (42,836)
Net cash used in operating activities  (2,252,691)  (2,082,719)
         
Cash flows from investing activities:        
Purchases of fixed assets  (56,536)  (65,282)
Proceeds from sale of fixed asset  3,713   - 
Net cash used in investing activities  (52,823)  (65,282)
         
Cash flows from financing activities:        
Net proceeds from issuances of common stock and warrants and exercise of options and warrants  284,207   5,770,545 
Proceeds from PPP loan  202,052   - 
Net cash provided by financing activities  486,259   5,770,545 
         
Net (decrease) increase in cash and cash equivalents  (1,819,255)  3,622,544 
         
Cash and cash equivalents at beginning of year  6,591,960   2,969,416 
Cash and cash equivalents at end of year $4,772,705  $6,591,960 

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Source: Research Frontiers Incorporated


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