Research Frontiers Reports Third Quarter 2019 Financial Results
Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter ended September 30, 2019. 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: November 7, 2019, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Friday, November 8, 2019 for 90 days at
Key Third Quarter 2019 Comments:
- New Gauzy SPD-Smart film factory commissioned for operation in Stuttgart Germany with capacity to produce 1 million square meters of film per year in widths up to 1.8 meters.
- The Company’s fee income from licensing activities was up 29% in the third quarter of this year compared to the third quarter of last year. Fee income was up 54% in the third quarter of 2019 as compared to the second quarter of 2019.
- Fee income from the automotive market was up 49% in the third quarter of this year compared to the third quarter of last year. Fee income from the automotive market was up 73% in the third quarter of 2019 as compared to the second quarter of 2019.
- Fee income from the aircraft market was up 28% in the third quarter of this year compared to the third quarter of last year. Fee income from the aircraft market was up 27% in the third quarter of 2019 as compared to the second quarter of 2019.
- Fee income from the automotive market was up 49% in the third quarter of this year compared to the third quarter of last year. Fee income from the automotive market was up 73% in the third quarter of 2019 as compared to the second quarter of 2019.
- The Company’s net loss was $397,712 ($0.01 per common share) for the three-months ended September 30, 2019 as compared to $688,301 ($0.03 per common share) for the three-months ended September 30, 2018.
- The Company’s net loss was $2,552,087 ($0.09 per common share) for the nine-months ended September 30, 2019 as compared to $2,051,960 ($0.08 per common share) for the nine-months ended September 30, 2018.
- When non-cash charges relating to the issuance of options and the issuance/valuation of warrants are backed out, the net loss would have been $152,186 less in the first nine months of 2019 as compared to the first nine months of 2018.
- For the nine months ended September 30, 2019 total costs increased by $219,344, or 7.6%, as compared to the same period in 2018.
- This increase was the result of higher non-cash charges related to the grant of stock options to employees and directors.
- This increase was the result of higher non-cash charges related to the grant of stock options to employees and directors.
- At September 30, 2019 the Company had cash and cash equivalents of $7,016,922 and working capital of $7,591,547.
- Based on the Company’s existing cash burn rate, these assets would support the Company’s operations for at least the next 3 years.
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 , and on , , and .
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.
CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets
| September 30, 2019 (Unaudited) | December 31, 2018 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,016,922 | $ | 2,969,416 | ||||
| Royalties receivable, net of reserves of $1,117,441 in 2019 and $1,094,774 in 2018 | 775,760 | 689,677 | ||||||
| Prepaid expenses and other current assets | 105,884 | 52,729 | ||||||
| Total current assets | 7,898,566 | 3,711,822 | ||||||
| Fixed assets, net | 239,888 | 313,177 | ||||||
| Operating lease ROU assets | 814,285 | - | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 8,986,306 | $ | 4,058,566 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liabilities | $ | 163,276 | $ | - | ||||
| Accounts payable | 14,593 | 133,486 | ||||||
| Accrued expenses and other | 57,485 | 273,606 | ||||||
| Deferred revenue | 71,665 | 50,570 | ||||||
| Total current liabilities | 307,019 | 457,662 | ||||||
| Operating lease liabilities, net of current portion | 851,672 | - | ||||||
| Warrant liability | - | 501,414 | ||||||
| Total liabilities | 1,158,691 | 959,076 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,090,291 in 2019 and 27,665,211 in 2018 | 3,109 | 2,767 | ||||||
| Additional paid-in capital | 122,067,527 | 114,787,657 | ||||||
| Accumulated deficit | (114,243,021 | ) | (111,690,934 | ) | ||||
| Total shareholders’ equity | 7,827,615 | 3,099,490 | ||||||
| Total liabilities and shareholders’ equity | $ | 8,986,306 | $ | 4,058,566 | ||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Fee income | $ | 1,182,560 | $ | 1,117,849 | $ | 462,869 | $ | 359,725 | ||||||||
| Operating expenses | 2,356,875 | 2,228,757 | 666,356 | 572,968 | ||||||||||||
| Research and development | 751,312 | 660,086 | 207,368 | 190,647 | ||||||||||||
| Total costs | 3,108,187 | 2,888,843 | 873,724 | 763,615 | ||||||||||||
| Operating loss | (1,925,627 | ) | (1,770,994 | ) | (410,855 | ) | (403,890 | ) | ||||||||
| Warrant market adjustment | (652,025 | ) | (286,631 | ) | - | (286,631 | ) | |||||||||
| Net investment income | 25,565 | 5,665 | 13,143 | 2,220 | ||||||||||||
| Net loss | $ | (2,552,087 | ) | $ | (2,051,960 | ) | $ | (397,712 | ) | $ | (688,301 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.09 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.03 | ) | ||||
| Weighted average number of basic and diluted common shares outstanding | 29,636,013 | 25,380,466 | 31,065,730 | 26,002,263 | ||||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Nine months ended September 30, | ||||||||
| 2019 | 2018 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (2,552,087 | ) | $ | (2,051,960 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 146,496 | 135,400 | ||||||
| Stock-based compensation | 356,228 | 69,309 | ||||||
| Provision for doubtful accounts | 22,667 | - | ||||||
| Warrant market adjustment | 652,025 | 286,631 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (108,750 | ) | (54,350 | ) | ||||
| Prepaid expenses and other current assets | (53,155 | ) | (67,093 | ) | ||||
| Accounts payable and accrued expenses | (142,477 | ) | 7,100 | |||||
| Deferred revenue | 21,095 | 38,142 | ||||||
| Net cash used in operating activities | (1,657,958 | ) | (1,636,821 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (65,081 | ) | (11,295 | ) | ||||
| Net cash used in investing activities | (65,081 | ) | (11,295 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from issuances of common stock and warrants and exercise of options and warrants | 5,770,545 | 3,311,111 | ||||||
| Net cash provided by financing activities | 5,770,545 | 3,311,111 | ||||||
| Net increase in cash and cash equivalents | 4,047,506 | 1,662,995 | ||||||
| Cash and cash equivalents at beginning of period | 2,969,416 | 1,737,847 | ||||||
| Cash and cash equivalents at end of period | $ | 7,016,922 | $ | 3,400,842 | ||||
| Supplemental disclosure of non-cash activities: | ||||||||
| Right of use assets obtained in exchange for operating lease liabilities | $ | 941,284 | $ | - | ||||
