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

WOODBURY, N.Y., March 08, 2018 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq:REFR) announced its financial results for its fourth quarter and full year ended December 31, 2017. 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: Thursday, March 8, 2018 at 4:30PM ET
  • Dial-in Information: 1-412-717-9591
  • Questions: Email to  Questions@SmartGlass.com
  • Replay: Available on Friday, March 9, 2018 for 90 days at  www.SmartGlass-IR.com

Key Comments:
  • The Company's fee income for 2017 increased by $272,973 (+22%) to $1,509,070 as compared to $1,236,097 for 2016 
    • A substantial majority of this increase was the result of increase fees earned from licensees focused in automotive, marine, display and architectural industries which was partially offset by slightly lower level of fee income from licensees focused in the aircraft industry (which the Company believes to be temporary). 
  • Expenses decreased by $1,576,361 (-29%) for 2017 to $3,927,681 from $5,504,042 for 2016.
    • A substantial majority of this decrease was the result of cost reduction initiatives undertaken by the Company that resulted in lower payroll, marketing, investor relations, and patent expense, as well as lower bad debt expenses in 2017. 
  • The Company's net loss per common share in 2017 was cut in almost half from the prior year. In 2017 the Company's net loss was $2,413,859 ($0.10 per common share) as compared to $4,238,410 ($0.18 per common share) in 2016.  
  • Net cash used in operating activities decreased by $2,534903 (-63%) to $1,470,540 for 2017 from $4,005,443 for 2016.  
  • In February 2018, a small group of long-time shareholders of the Company made an interest-free long-term loan of $1.25 million to the Company which is expected to convert into common stock at a price equal to the market price of the Company's common stock when the loan was made plus warrants exercisable at a premium to such market price. 
  • The Company believes that its current cash and cash equivalents will fund its operations until at least the fourth quarter of 2019.   

Research Frontiers is the developer of SPD-Smart light-control technology which allows users to instantly, precisely and uniformly control the shading of glass or plastic, either manually or automatically. Research Frontiers has built an infrastructure of over 40 licensed companies that collectively are capable of serving the growing global demand for smart glass products in automobiles, homes, buildings, museums, aircraft and boats. For more information, please visit our website at www.SmartGlass.com, and on Facebook, Twitter, LinkedIn and YouTube.

CONTACT:Seth L. Van VoorheesChief Financial OfficerResearch 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.

RESEARCH FRONTIERS INCORPORATED Unaudited Consolidated Balance Sheets December 31, 2017 and 2016
 
    2017     2016  
Assets                
                 
Current assets:                
Cash and cash equivalents   $ 1,737,847     $ 1,691,603  
Short-term investments     -       1,523,333  
Royalties receivable, net of reserves of $1,051,424 in 2017 and $1,110,020 in 2016     597,441       1,117,146  
Prepaid expenses and other current assets     29,697       256,892  
                 
Total current assets     2,364,985       4,588,974  
                 
Fixed assets, net     482,561       651,655  
Deposits and other assets     33,567       33,567  
Total assets   $ 2,881,113     $ 5,274,196  
                 
Liabilities and Shareholders' Equity                
                 
Current liabilities:                
Accounts payable   $ 58,090     $ 29,932  
Accrued expenses and other     254,833       339,338  
Deferred revenue     824       -  
Total current liabilities     313,747       369,270  
                 
Shareholders' equity:                
                 
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 24,043,846 in 2017 and 2016     2,404       2,404  
Additional paid-in capital     111,627,789       111,551,490  
Accumulated deficit     (109,062,827 )     (106,648,968 )
Total shareholders' equity     2,567,366       4,904,926  
                 
Total liabilities and shareholders' equity   $ 2,881,113     $ 5,274,196  

RESEARCH FRONTIERS INCORPORATED Unaudited Consolidated Statements of Operations Years ended December 31, 2017, 2016 and 2015
 
    2017     2016     2015  
                   
Fee income   $ 1,509,070     $ 1,236,097     $ 2,007,482  
                         
Operating expenses     3,127,979       4,086,408       4,742,166  
Research and development     799,702       1,417,634       1,588,491  
Total Expenses     3,927,681       5,504,042       6,330,657  
                         
Operating loss     (2,418,611 )     (4,267,945 )     (4,323,175 )
                         
Net investment income     4,752       29,535       43,319  
                         
Net loss   $ (2,413,859 )   (4,238,410 )   $ (4,279,856 )
                         
Basic and diluted net loss per common share   $ (0.10 )   $ (0.18 )   $ (0.18 )
                         
Weighted average number of common shares outstanding     24,043,846       24,043,846       24,007,974  

RESEARCH FRONTIERS INCORPORATED Unaudited Consolidated Statements of Shareholders' Equity Years ended December 31, 2017, 2016 and 2015
 
      Common Stock     Additional Paid-in       Accumulated        
      Shares   Amount     Capital       Deficit     Total  
                         
Balance, December 31, 2014     23,924,465     $ 2,392     $ 110,210,480     $ (98,130,702 )   $ 12,082,170  
                                         
Exercise of options and warrants     119,381       12       548,463       -       548,475  
Share-based compensation     -       -       725,016       -       725,016  
Net Loss     -       -       -       (4,279,856 )     (4,279,856 )
Balance, December 31, 2015     24,043,846       2,404       111,483,959       (102,410,558 )     9,075,805  
                                         
Share-based compensation     -       -       67,531       -       67,531  
Net Loss     -       -       -       (4,238,410 )     (4,238,410 )
Balance, December 31, 2016     24,043,846       2,404       111,551,490       (106,648,968 )     4,904,926  
                                         
Share-based compensation     -       -       76,299       -       76,299  
Net Loss     -       -       -       (2,413,859 )     (2,413,859 )
Balance, December 31, 2017     24,043,846     $ 2,404     $ 111,627,789     $ (109,062,827 )   $ 2,567,366  

RESEARCH FRONTIERS INCORPORATED Unaudited Consolidated Statements of Cash Flows Years ended December 31, 2017, 2016 and 2015
 
    2017     2016     2015  
Cash flows from operating activities:                        
Net loss   $ (2,413,859 )   $ (4,238,410 )   $ (4,279,856 )
Adjustments to reconcile net loss to net cash used in operating activities:                        
Depreciation and amortization     175,643       188,501       140,170  
Stock based compensation     76,299       67,531       725,016  
Loss on sale of fixed asset     -       1,775       -  
Bad debts, net of recovery     30,015       480,563       324,286  
Change in assets and liabilities:                        
Royalty receivables     476,490       (283,035 )     (463,743 )
Prepaid expenses and other current assets     227,195       (123,427 )     (12,213 )
Accounts payable and accrued expenses     (56,347 )     (98,941 )     (14,472 )
Deferred revenue     824       -       -  
Net cash used in operating activities     (1,470,540 )     (4,005,443 )     (3,580,812 )
                         
Cash flows from investing activities:                        
Purchases of fixed assets     (6,549 )     (11,715 )     (316,185 )
Purchase of investments     -       -       -  
Proceeds from sale of fixed asset     -       6,000          
Proceeds from sale of investment     1,523,333       (9,549 )     1,491,295  
Net cash provided by (used in) investing activities     1,516,784       (15,264 )     1,175,110  
                         
Cash flows from financing activities:                        
Net proceeds from issuances of common stock and exercise of options and warrants     -       -       548,475  
Net cash provided by financing activities     -       -       548,475  
                         
Net (decrease) increase in cash and cash equivalents     46,244       (4,020,707 )     (1,857,227 )
                         
Cash and cash equivalents at beginning of year     1,691,603       5,712,310       7,569,537  
Cash and cash equivalents at end of year   $ 1,737,847     $ 1,691,603     $ 5,712,310  

 

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