Research Frontiers Reports Second Quarter 2018 Financial Results

RFI 2Q2018 Financial Press Release Word

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

WOODBURY, N.Y., August 13, 2018 – Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter ended June 30, 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: August 13, 2018, 4:30 PM ET
  • Dial-in Information: 1-888-334-5785
  • Replay: Available on Tuesday, August 14, 2018 for 90 days at SmartGlass-IR.com

Key Second Quarter 2018 Comments:

1)  The Company’s fee income from licensing activities for the three months ended June 30, 2018 was $324,853 as compared to $348,179 for the three months ended June 30, 2017 representing a $23,326 decrease between these two periods.

a. This decrease in revenues was principally the result of the adoption of ASC 606 revenue recognition standard beginning with the first quarter of 2018, the adoption of which changed the timing of when we recognize revenues for our contracts with customers. We would have reported $365,048 of fee income, representing a $16,869 increase in the reported fee income for the period ending June 30, 2018 had we continued to use the accounting guidance used prior to the adoption of ASC 606.

2)  Fee income was down $108,416 in the second quarter of 2018 as compared to the prior first quarter of 2018 in all sectors other than the display and architectural sectors.

a. Most of this sequential period decline was due to the recognition of all fee income associated with the Grant of Use performance obligation under our license agreements in the first quarter of 2018.

3)  The Company’s fee income from licensing activities for the six months ended June 30, 2018 was $758,122 as compared to $741,295 for the six months ended June 30, 2017 representing a $16,827 increase in fee income between these two periods.

a. This increase in revenues was principally the result of higher revenues in the architectural and display sectors partial offset by slightly lower revenues recorded in the aircraft and automotive sectors due to seasonality.

b. We would have reported $753,697 of fee income, representing a $4.423 decrease in the reported fee income for the period ending June 30, 2018 had we continued to use the accounting guidance used prior to the adoption of ASC 606.

4)  Expenses declined by $61,154, or (2.8%), for the 6-month period ending June 30, 2018 as compared to the same period in 2017. Expenses increased by $57,953, or 6.9%, for the 3-month period ending June 30, 2018 as compared to the same period in 2017.

5)  Cash and cash equivalents increased by $124,125 since the end of 2017 as a result of a financing completed in February 2018.

6)  On August 13, 2018, the Company announced that a group of investors led by a licensee of the Company’s SPD technology agreed to make a $2,000,000 equity investment in the Company. With the addition of proceeds from this investment, the Company expects as of this filing to have sufficient working capital for at least the next 24 months of operations.

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.

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 FacebookTwitterLinkedIn 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.