Research Frontiers Reports Fourth Quarter and Year-End 2023 Financial Results and Will Host a Conference Call at 4:30p.m. Today
WOODBURY, N.Y., March 07, 2024 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (NASDAQ:REFR) announced its financial results for its fourth quarter and full-year 2023. 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: Thursday, March 7, 2024, 4:30 PM ET | |
| • | Dial-in Information: 1-888-334-5785 | |
| • | Replay: Available on Friday, March 8, 2024 for 90 days at https://smartglass-ir.com/ |
Key Comments:
| 1. | The following new car models were introduced in 2023 using Research Frontiers SPD-SmartGlass technology: Cadillac Celestiq, Ferrari Purosangue, McLaren S450 and McLaren Artura. During the fourth quarter of 2023 additional automakers have begun projects using Research Frontiers patented SPD-SmartGlass technology in their panoramic glass roofs, and an Asian car manufacturer is expected to introduce an SPD-SmartGlass panoramic roof into serial production this year. |
| 2. | Fee income during 2023 increased by 69% from the same period last year. Fee income in the fourth quarter of 2023 was also up over 90% from the third quarter, and up over 140% from the same quarter last year. These increases in fee income were primarily the result of higher royalties from the automotive market. |
| 3. | The Company expects revenue in all market segments to increase as new car models, aircraft, trains, architectural, information display and other products using the Company's SPD-SmartGlass technology are introduced into the market. |
| 4. | Revenues and investment income overall increased by $539,069 (109%) and expenses decreased by $221,916 (7%) in 2023 compared to 2022. Overall, this resulted in a reduction in the Company's net loss by $760,985 to $1,908,364 ($0.06 per share) for 2023. |
| 5. | At December 31, 2023, the Company had cash and cash equivalents of approximately $2.5 million, and working capital of $3.3 million. The Company has no debt and expects to have sufficient working capital for at least the next five years of operations. |
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 numerous 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:
Joseph M. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
[email protected]
RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
December 31, 2023 and 2022
| December 31, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,475,958 | $ | 4,230,916 | ||||
| Royalties receivable, net of reserves of $1,253,450 in 2023 and $1,158,450 in 2022 | | | 1,003,404 | | | | 589,599 | |
| Prepaid expenses and other current assets | 96,784 | 100,973 | ||||||
| Total current assets | 3,576,146 | 4,921,488 | ||||||
| Fixed assets, net | 39,598 | 65,388 | ||||||
| Operating lease ROU assets | 178,715 | 323,509 | ||||||
| Deposits and other assets | 56,066 | 56,066 | ||||||
| Total assets | $ | 3,850,525 | $ | 5,366,451 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 212,359 | $ | 196,405 | ||||
| Accounts payable | 50,880 | 71,079 | ||||||
| Accrued expenses and other | 14,192 | 34,379 | ||||||
| Total current liabilities | 277,431 | 301,863 | ||||||
| Operating lease liability, net of current portion | 55,363 | 267,723 | ||||||
| Total liabilities | 332,794 | 569,586 | ||||||
| Shareholders' equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,509,287 in 2023 and 33,150,396 in 2022 | 3,351 | 3,315 | ||||||
| Additional paid-in capital | 127,779,221 | 127,150,027 | ||||||
| Accumulated deficit | (124,264,841 | ) | (122,356,477 | ) | ||||
| Total shareholders' equity | 3,517,731 | 4,796,865 | ||||||
| Total liabilities and shareholders' equity | $ | 3,850,525 | $ | 5,366,451 | ||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
Years ended December 31, 2023 and 2022
| 2023 | 2022 | |||||||
| Fee income | $ | 909,598 | $ | 539,686 | ||||
| Operating expenses | 2,359,634 | 2,555,689 | ||||||
| Research and development | 583,266 | 609,127 | ||||||
| Total expenses | 2,942,900 | 3,164,816 | ||||||
| Operating loss | (2,033,302 | ) | (2,625,130 | ) | ||||
| Net investment income (loss) | 124,938 | (44,219 | ) | |||||
| Net loss | $ | (1,908,364 | ) | $ | (2,669,349 | ) | ||
| Basic and diluted net loss per common share | $ | (0.06 | ) | $ | (0.08 | ) | ||
| Weighted average number of common shares outstanding | 33,453,627 | 32,070,233 | ||||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Shareholders' Equity
Years ended December 31, 2023 and 2022
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
| Balance, December 31, 2021 | 31,650,396 | $ | 3,165 | $ | 123,467,886 | $ | (119,687,128 | ) | $ | 3,783,923 | ||||||||||
| Share-based compensation | - | - | 232,291 | - | 232,291 | |||||||||||||||
| Issuance of common stock and warrants | 1,500,000 | 150 | 3,449,850 | - | 3,450,000 | |||||||||||||||
| Net loss | - | - | - | (2,669,349 | ) | (2,669,349 | ) | |||||||||||||
| Balance, December 31, 2022 | 33,150,396 | 3,315 | 127,150,027 | (122,356,477 | ) | 4,796,865 | ||||||||||||||
| Exercise of warrants | 358,891 | 36 | 484,466 | - | 484,502 | |||||||||||||||
| Share-based compensation | - | - | 144,728 | - | 144,728 | |||||||||||||||
| Net loss | - | - | - | (1,908,364 | ) | (1,908,364 | ) | |||||||||||||
| Balance, December 31, 2023 | 33,509,287 | $ | 3,351 | $ | 127,779,221 | $ | (124,264,841 | ) | $ | 3,517,731 | ||||||||||
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
Years ended December 31, 2023 and 2022
| 2023 | 2022 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,908,364 | ) | $ | (2,669,349 | ) | ||
| Adjustments to reconcile net loss to net cash | ||||||||
| used in operating activities: | ||||||||
| Depreciation and amortization | 27,348 | 28,837 | ||||||
| Realized (gain) loss on marketable securities | (57,149 | ) | 60,143 | |||||
| Share-based compensation | 144,728 | 232,291 | ||||||
| Bad debts | 95,000 | 141,772 | ||||||
| ROU asset amortization | 144,794 | 146,315 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (508,805 | ) | 100,266 | |||||
| Prepaid expenses and other assets | 4,189 | (30,542 | ) | |||||
| Accounts payable and accrued expenses | (40,386 | ) | (10,387 | ) | ||||
| Operating lease liability | (196,406 | ) | (182,091 | ) | ||||
| Net cash used in operating activities | (2,295,051 | ) | (2,182,745 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (1,558 | ) | (1,271 | ) | ||||
| Purchases of marketable securities | (5,434,386 | ) | - | |||||
| Sales and maturities of marketable securities | 5,491,535 | 2,694,968 | ||||||
| Net cash provided by investing activities | 55,591 | 2,693,697 | ||||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from exercise of warrants | 484,502 | - | ||||||
| Proceeds from issuance of common stock and warrants | - | 3,450,000 | ||||||
| Net cash provided by financing activities | 484,502 | 3,450,000 | ||||||
| Net (decrease) increase in cash and cash equivalents | (1,754,958 | ) | 3,960,952 | |||||
| Cash and cash equivalents at beginning of year | 4,230,916 | 269,964 | ||||||
| Cash and cash equivalents at end of year | $ | 2,475,958 | $ | 4,230,916 | ||||
