Research Frontiers Reports Fourth Quarter and Full Year 2018 Financial Results - This press release is being re-issued to correct formatting issues.
Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y , March 14, 2019 (GLOBE NEWSWIRE) -- 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 Questions@SmartGlass.com
- 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.
- 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.
- 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.
- 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.
- 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 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
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.
RESEARCH FRONTIERS INCORPORATED
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
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 | |||||||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Shareholders’ Equity
Years ended December 31, 2018, 2017 and 2016
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
| Balance, December 31, 2015 | 24,043,846 | $ | 2,404 | $ | 111,483,959 | $ | (102,410,558 | ) | $ | 9,075,805 | ||||||||||
| Share-based compensation | - | - | 67,531 | - | 67,531 | |||||||||||||||
| Net Loss | - | - | - | (4,238,410 | ) | (4,238,410 | ) | |||||||||||||
| Balance, December 31, 2016 | 24,043,846 | 2,404 | 111,551,490 | (106,648,968 | ) | 4,904,926 | ||||||||||||||
| Share-based compensation | - | - | 76,299 | - | 76,299 | |||||||||||||||
| Net Loss | - | - | - | (2,413,859 | ) | (2,413,859 | ) | |||||||||||||
| Balance, December 31, 2017 | 24,043,846 | 2,404 | 111,627,789 | (109,062,827 | ) | 2,567,366 | ||||||||||||||
| Adoption of ASC 606 | - | - | - | 58,021 | 58,021 | |||||||||||||||
| Issuance of capital stock | 3,562,809 | 357 | 3,026,273 | - | 3,026,630 | |||||||||||||||
| Exercise of options and warrants | 58,556 | 6 | 64,286 | - | 64,292 | |||||||||||||||
| Share-based compensation | - | - | 69,309 | - | 69,309 | |||||||||||||||
| Net Loss | - | - | - | (2,686,128 | ) | (2,686,128 | ) | |||||||||||||
| Balance, December 31, 2018 | 27,665,211 | $ | 2,767 | $ | 114,787,657 | $ | (111,690,934 | ) | $ | 3,099,490 | ||||||||||
RESEARCH FRONTIERS INCORPORATED
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 | ||||||
