Research Frontiers Reports Third Quarter 2017 Financial Results
Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y., Nov. 02, 2017 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq:REFR) announced its financial results for its third quarter ended September 30, 2017. 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, including its recent license agreement with Israel-based material science company Gauzy Ltd. to develop, produce and sell products and components using Research Frontiers’ patented SPD-Smart light-control technology.
- Who: Joseph M. Harary, President & CEO, Seth Van Voorhees, CFO
- Date/Time: November 2, 2017, 4:30 PM ET
- Dial-in Information: 1-412-717-9591
- Replay: Available on Friday, November 3, 2017 for 90 days at www.SmartGlass-IR.com
Key Third Quarter 2017 Comments:
- Fee income increased by $271,294, or 28.3%, for the 9-month period ending September 30, 2017 as compared to the same period in 2016. Fee income increased by $183,564, or 60.2%, for the 3-month period ending September 30, 2017 as compared to the same period in 2016.
The increase in fee income from both the 3-month and 9-month periods was principally the result of higher revenues from licensees in the aircraft, architectural, automotive and marine sectors as well as revenue from a new licensee focused on the transparent display sector.
- Expenses declined by $857,756, or -22.4%, for the 9-month period ending September 30, 2017 as compared to the same period in 2016. Expenses for the 3-month period ending September 30, 2017 were $78,248, or
-9.0%, lower for the 3-month period ending September 30, 2017 as compared to the same period in 2016.
- On October 11, 2017, Research Frontiers and Gauzy Ltd. announced that Gauzy has acquired a non-exclusive license from Research Frontiers to develop, produce and sell products and components using Research Frontiers’ patented SPD-Smart light-control technology.
Gauzy noted the rapid expansion of their business based upon its constant focus on bringing the best-performing and most innovative technology-based products to its customers, and that the introduction of SPD-Smart light-control technology to its product line will help us to continue and accelerate this rapid growth. Gauzy’s CEO noted the clear and significant synergies specifically between Gauzy’s LCG® (Liquid Crystal Glass) technology and Research Frontiers’ SPD-SmartGlass light control technology, and the general synergies between the two companies and their worldwide businesses.
Research Frontiers noted the work that they have been doing with Gauzy over the past ten months, and that its results-based culture, and Gauzy’s established and growing network of over 50 glass fabricators worldwide brings additional synergies, infrastructure, and growth opportunities. Because these companies have already been trained and certified in working with Gauzy’s PDLC film product, they should have the ability and experience to quickly incorporate SPD-Smart technology, which is also a film-based technology with similar handling, lamination, and other fabrication characteristics.
Research Frontiers is the developer of SPD-Smart light-control technology which allows users to instantly, precisely and uniformly control the shading of glass or plastic, either manually or automatically. Research Frontiers has built an infrastructure of over 40 licensed companies that collectively are capable of serving the growing global demand for smart glass products in automobiles, homes, buildings, museums, aircraft and boats. 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
Info@SmartGlass.com
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.“LCG®” is a trademark of Gauzy Ltd.
RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
Unaudited
| September 30, 2017 | December 31, 2016 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,188,054 | $ | 1,691,603 | ||||
| Short-term investments | - | 1,523,333 | ||||||
| Royalty receivables, net of reserves of $1,006,424 in 2017 and $1,110,020 in 2016 | 782,191 | 1,117,146 | ||||||
| Prepaid expenses and other current assets | 51,067 | 256,892 | ||||||
| Total current assets | 3,021,312 | 4,588,974 | ||||||
| Fixed assets, net | 526,293 | 651,655 | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 3,581,172 | $ | 5,274,196 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 104,448 | $ | 29,932 | ||||
| Accrued expenses and other | 270,637 | 339,338 | ||||||
| Deferred revenue | 46,666 | - | ||||||
| Total current liabilities | 421,751 | 369,270 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 24,043,846 shares in 2017 and 2016 | 2,404 | 2,404 | ||||||
| Additional paid-in capital | 111,551,490 | 111,551,490 | ||||||
| Accumulated deficit | (108,394,473 | ) | (106,648,968 | ) | ||||
| Total shareholders’ equity | 3,159,421 | 4,904,926 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,581,172 | $ | 5,274,196 | ||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited
| Nine months ended | Three months ended | |||||||||||||||
| Sept 30, 2017 | Sept 30, 2016 | Sept 30, 2017 | Sept 30, 2016 | |||||||||||||
| Fee income | $ | 1,229,631 | $ | 958,337 | $ | 488,336 | $ | 304,772 | ||||||||
| Operating expenses | 2,380,328 | 2,676,178 | 607,291 | 624,080 | ||||||||||||
| Research and development | 598,638 | 1,160,544 | 185,296 | 246,755 | ||||||||||||
| Total Expenses | 2,978,966 | 3,836,722 | 792,587 | 870,835 | ||||||||||||
| Operating loss | (1,749,335 | ) | (2,878,385 | ) | (304,251 | ) | (566,063 | ) | ||||||||
| Net investment income | 3,830 | 25,203 | 1,113 | 6,332 | ||||||||||||
| Net loss | $ | (1,745,505 | ) | $ | (2,853,182 | ) | $ | (303,138 | ) | $ | (559,731 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.07 | ) | $ | (0.12 | ) | $ | (0.01 | ) | $ | (0.02 | ) | ||||
| Weighted average number of common shares outstanding | 24,043,846 | 24,043,846 | 24,043,846 | 24,043,846 | ||||||||||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited
| Nine months ended | ||||||||
| September 30, 2017 | September 30, 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,745,505 | ) | $ | (2,853,182 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 131,725 | 141,481 | ||||||
| Loss on sale of asset | - | 1,776 | ||||||
| Allowance for uncollectible accounts | (1,785 | ) | - | |||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | 336,739 | (220,895 | ) | |||||
| Prepaid expenses and other current assets | 205,825 | 69,770 | ||||||
| Deferred revenue | 46,666 | 10,000 | ||||||
| Accounts payable and accrued expenses | 5,815 | 136,293 | ||||||
| Net cash used in operating activities | (1,020,520 | ) | (2,714,757 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (6,362 | ) | (8,055 | ) | ||||
| Proceeds from sale of fixed asset | - | 6,000 | ||||||
| Change in investments | 1,523,333 | (6,836 | ) | |||||
| Net cash provided by (used in) investing activities | 1,516,971 | (8,891 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 496,451 | (2,723,648 | ) | |||||
| Cash and cash equivalents at beginning of year | 1,691,603 | 5,712,310 | ||||||
| Cash and cash equivalents at end of period | $ | 2,188,054 | $ | 2,988,662 | ||||
