Research Frontiers Reports First Quarter 2021 Financial Results

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

WOODBURY, N.Y., May 06, 2021 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its first 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: May 6, 2021, 4:30 PM ET
• Dial-in Information: 1-888-334-5785
• Replay: Available on Friday, May 7, 2021 for 90 days at SmartGlass-IR.com

Key Comments:

1. Fee income from licensing activities for the three months ended March 31, 2021 was $213,123 as compared to $356,173 for the three months ended March 31, 2020. 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, and stable levels of royalty revenues from the architectural market were partially offset by higher fee income from the display market.
   
   
2. Total expenses decreased by $232,985, or approximately 23%, for the first quarter of 2021 as compared to the same period in 2020.
   
   
3. The Company’s net loss decreased by $67,287 to $557,307 ($0.02 per common share) for the first quarter of 2021. This compares to a net loss of $624,594 ($0.02 per common share) in the first quarter of 2020. This continuous reduction in the Company’s net loss followed a net loss in 2020 which was Research Frontiers’ lowest net loss in 26 years.
   
   
4. As of March 31, 2021, the Company had cash and cash equivalents of over $4.2 million and working capital of approximately $4.7 million. The Company expects to have sufficient working capital for at least the next 32 months of operations until at least late 2023.
   
   
5. During the first quarter of 2021, 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. Also during the first quarter of 2021, licensees of Research Frontiers took steps to 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.

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. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets

		March 31, 2021 (Unaudited)				December 31, 2020 (See Note 1)
Assets
Current assets:
Cash and cash equivalents		$	4,215,961			$	4,772,705
Royalty receivables, net of reserves of $972,202 in 2021 and $972,202 in 2020			737,870				598,292
Prepaid expenses and other current assets			85,271				56,512
Total current assets			5,039,102				5,427,509
Fixed assets, net			114,662				121,772
Operating lease ROU assets			579,788				616,442
Deposits and other assets			33,567				33,567
Total assets		$	5,767,119			$	6,199,290
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of operating lease liability		$	170,191			$	166,377
Accounts payable			41,606				33,410
Accrued expenses and other			68,633				26,279
Deferred revenue			27,945				-
Total current liabilities			308,375				226,066
Operating lease liability, net of current portion			602,784				646,219
Total liabilities			911,159				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			(118,398,083	)			(117,840,776	)
Total shareholders’ equity			4,855,960				5,327,005
Total liabilities and shareholders’ equity		$	5,767,119			$	6,199,290

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)

		For the three months ended
		March 31, 2021				March 31, 2020
Fee income		$	213,123			$	356,173
Operating expenses			625,596				820,441
Research and development			145,178				183,318
Total expenses			770,774				1,003,759
Operating loss			(557,651	)			(647,586	)
Net investment income			344				22,992
Net loss		$	(557,307	)		$	(624,594	)
Basic and diluted net loss per common share		$	(0.02	)		$	(0.02	)
Weighted average number of common shares outstanding			31,634,890				31,323,205

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)

For the three months ended March 31, 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			156,845				16				(16	)			-				-
Net loss			-				-				-				(624,594	)			(624,594	)
Balance, March 31, 2020			31,411,107			$	3,141			$	122,552,879			$	(116,124,506	)		$	6,431,514
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			-				-				-				(557,307	)			(557,307	)
Balance, March 31, 2021			31,650,396			$	3,165			$	123,250,878			$	(118,398,083	)		$	4,855,960

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)

		For the three months ended
		March 31, 2021				March 31, 2020
Cash flows from operating activities:
Net loss		$	(557,307	)		$	(624,594	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			4,489				44,619
Bad debts expense (recovery)			-				(5,237	)
Change in assets and liabilities:
Royalty receivables			(139,578	)			(85,354	)
Prepaid expenses and other current assets			(28,759	)			(123,257	)
Accounts payable and accrued expenses			50,550				(35,589	)
Deferred revenue			27,945				71,189
Net cash used in operating activities			(642,660	)			(758,223	)
Cash flows from investing activities:
Purchases of fixed assets			(346	)			(55	)
Proceeds from sale of fixed asset			-				3,713
Net cash (used in) provided by investing activities			(346	)			3,658
Cash flows from financing activities:
Proceeds from exercise of options			86,262				-
Net cash provided by financing activities			86,262				-
Net decrease in cash and cash equivalents			(556,744	)			(754,565	)
Cash and cash equivalents at beginning of period			4,772,705				6,591,960
Cash and cash equivalents at end of period		$	4,215,961			$	5,837,395