Research Frontiers Reports Second Quarter 2020 Financial Results
WOODBURY, N.Y., Aug. 06, 2020 (GLOBE NEWSWIRE) — Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter ended June 30, 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, Seth Van Voorhees, CFO
- Date/Time: August 6, 2020, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Friday, August 7, 2020 for 90 days at www.SmartGlass-IR.com
Key Second Quarter 2020 Comments:
- Lower fees in the automotive and aircraft markets (believed to be related to temporary customer shutdowns in these industries due to the COVID-19 pandemic) was partially offset by higher fee income from licensees in the architectural and display markets.
- The Company estimates that $194,140 of the PPP Loan principal will be forgiven based on payroll and other expenses incurred through June 30, 2020, and all or substantially all of the remaining loan will be forgiven under the terms of the CARES Act during the third quarter of 2020.
- Based upon the Company’s projected cash flow shortfall of approximately $450,000-500,000 per quarter, the Company expects to have sufficient working capital for at least the next 34 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.
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.
CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
Unaudited
| June 30, 2020 (Unaudited) | December 31, 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,841,346 | $ | 6,591,960 | ||||
| Royalties receivable, net of reserves of $944,052 as of June 30, 2020 and $1,135,598 as of December 31, 2019 | 652,520 | 656,062 | ||||||
| Prepaid expenses and other current assets | 138,473 | 58,835 | ||||||
| Total current assets | 6,632,339 | 7,306,857 | ||||||
| Fixed assets, net | 50,942 | 141,720 | ||||||
| Operating lease ROU assets | 693,395 | 773,989 | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 7,410,243 | $ | 8,256,133 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liabilities | $ | 163,204 | $ | 163,236 | ||||
| Accounts payable | 59,438 | 169,750 | ||||||
| Accrued expenses and other | 83,342 | 46,709 | ||||||
| Deferred other income liability | 7,912 | – | ||||||
| Deferred revenue | 48,301 | 7,734 | ||||||
| Total current liabilities | 362,197 | 387,429 | ||||||
| Operating lease liabilities, net of current portion | 731,306 | 812,596 | ||||||
| Total liabilities | 1,093,503 | 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 | 122,837,069 | 122,552,895 | ||||||
| Accumulated deficit | (116,523,487 | ) | (115,499,912 | ) | ||||
| Total shareholders’ equity | 6,316,740 | 7,056,108 | ||||||
| Total liabilities and shareholders’ equity | $ | 7,410,243 | $ | 8,256,133 |
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Unaudited
| Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Fee income | $ | 532,286 | $ | 719,692 | $ | 176,113 | $ | 301,035 | ||||||||
| Operating expenses | 1,452,404 | 1,690,520 | 631,963 | 939,355 | ||||||||||||
| Research and development | 330,049 | 543,944 | 146,731 | 313,981 | ||||||||||||
| Total expenses | 1,782,453 | 2,234,464 | 778,694 | 1,253,336 | ||||||||||||
| Operating loss | (1,250,167 | ) | (1,514,772 | ) | (602,581 | ) | (952,301 | ) | ||||||||
| Warrant market adjustment | – | (652,025 | ) | – | (404,435 | ) | ||||||||||
| Other income – PPP loan forgiveness | 194,140 | – | 194,140 | – | ||||||||||||
| Net investment income | 32,452 | 12,422 | 9,460 | 6,258 | ||||||||||||
| Net loss | $ | (1,023,575 | ) | $ | (2,154,375 | ) | $ | (398,981 | ) | $ | (1,350,478 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.01 | ) | $ | (0.05 | ) | ||||
| Basic and diluted weighted average number of common shares outstanding | 31,398,818 | 28,909,306 | 31,474,431 | 29,589,084 |
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Unaudited
| Six Months Ended June 30, | ||||||||
| 2020 | 2019 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,023,575 | ) | $ | (2,154,375 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 87,276 | 95,445 | ||||||
| Stock-based compensation | – | 356,228 | ||||||
| Other income – PPP loan forgiveness | (194,140 | ) | – | |||||
| Bad debts expense | 53,217 | 22,667 | ||||||
| Warrant market adjustment | – | 652,025 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (49,675 | ) | (105,780 | ) | ||||
| Prepaid expenses and other current assets | (79,638 | ) | (49,743 | ) | ||||
| Accounts payable and accrued expenses | (73,679 | ) | (115,475 | ) | ||||
| Deferred revenue | 40,567 | (14,668 | ) | |||||
| Net cash used in operating activities | (1,239,647 | ) | (1,313,676 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (939 | ) | (62,968 | ) | ||||
| Proceeds from the sale of fixed assets | 3,713 | – | ||||||
| Net cash provided by (used in) investing activities | 2,774 | (62,968 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from issuances of common stock and warrants and exercise of options and warrants | 284,207 | 5,705,898 | ||||||
| Proceeds from PPP Program Funding | 202,052 | – | ||||||
| Net cash provided by financing activities | 486,259 | 5,705,898 | ||||||
| Net (decrease) / increase in cash and cash equivalents | (750,614 | ) | 4,329,254 | |||||
| Cash and cash equivalents at beginning of period | 6,591,960 | 2,969,416 | ||||||
| Cash and cash equivalents at end of period | $ | 5,841,346 | $ | 7,298,670 |