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Research Frontiers Reports Fourth Quarter and Full Year 2020 Financial Results
Source: Nasdaq GlobeNewswire / 11 Mar 2021 15:01:00 America/Chicago
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:
- 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.
- 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.
- 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.
- 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.
- 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. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.comRESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
December 31, 2020 and 2019December 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 INCORPORATED
Consolidated Statements of Operations
Years ended December 31, 2020 and 20192020 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 INCORPORATED
Consolidated Statements of Shareholders’ Equity
Years ended December 31, 2020 and 2019Common 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 INCORPORATED
Consolidated Statements of Cash Flows
Years ended December 31, 2020 and 20192020 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 