WOODBURY, NY--(Marketwired - Aug 3, 2017) - Research Frontiers Inc. (
- Who: Joseph M. Harary, President & CEO, Seth Van Voorhees, CFO
- Date/Time: August 3, 2017, 4:30 PM ET
- Dial-in Information: 1-412-717-9591
- Replay: Available on Friday, August 4, 2017 for 90 days at www.SmartGlass-IR.com
Key Second Quarter 2017 Comments:
1. Global aircraft manufacturer ONE Aviation has announced the selection of the ALTEOS electronically dimmable window (EDW) by PPG using SPD-SmartGlass technology for its new Eclipse 700 aircraft. This is the first announced project from the partnership between PPG and Research Frontiers' licensee Vision Systems that was announced in May of this year.
2. The Company's fee income from licensing activities for the six months ended June 30, 2017 was $741,295 as compared to $653,564 for the six months ended June 30, 2016 representing a $87,731 increase between these two periods. This increase was principally the result of higher revenues from licensees in the aircraft, architectural, automotive and marine sectors as well as revenue from a new licensee focused on the transparent display sector.
The Company expects that lower pricing of the Company's technology could expand the market opportunities, adoption rates, and revenues for its technology in automotive and non-automotive applications. The Company is working with all levels of licensees in the supply chain to further reduce the cost of final products using the Company's technology.
Operating expenses decreased by $279,060 for the six months ended June 30, 2017 to $1,773,036 from $2,052,096 for the six months ended June 30, 2016. This decrease was principally the result of lower patent and patent litigation costs as well as lower payroll and related costs and lower investor relations and marketing costs.
Research and development expenditures decreased by $500,446 to $413,343 for the six months ended June 30, 2017 from $913,789 for the six months ended June 30, 2016. This decrease was principally the result of lower payroll costs.
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 .
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. ALTEOS is a trademark of PPG.
| RESEARCH FRONTIERS INCORPORATED | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| Unaudited | ||||||||||
| June 30, 2017 | December 31, 2016 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 2,405,619 | $ | 1,691,603 | ||||||
| Short-term investments | - | 1,523,333 | ||||||||
| Royalty receivables, net of reserves of $1,035,009 in 2017 and $1,110,020 in 2016 | 791,508 | 1,117,146 | ||||||||
| Prepaid expenses and other current assets | 64,993 | 256,892 | ||||||||
| Total current assets | 3,262,120 | 4,588,974 | ||||||||
| Fixed assets, net | 569,688 | 651,655 | ||||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||||
| Total assets | $ | 3,865,375 | $ | 5,274,196 | ||||||
| Liabilities and Shareholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 78,326 | $ | 29,932 | ||||||
| Accrued expenses and other | 291,990 | 339,338 | ||||||||
| Deferred revenue | 32,500 | - | ||||||||
| Total current liabilities | 402,816 | 369,270 | ||||||||
| Shareholders' equity: | ||||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 24,043,846 shares in 2017 and 2016 | 2,404 | 2,404 | ||||||||
| Additional paid-in capital | 111,551,490 | 111,551,490 | ||||||||
| Accumulated deficit | (108,091,335 | ) | (106,648,968 | ) | ||||||
| Total shareholders' equity | 3,462,559 | 4,904,926 | ||||||||
| Total liabilities and shareholders' equity | $ | 3,865,375 | $ | 5,274,196 | ||||||
| RESEARCH FRONTIERS INCORPORATED | |||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||
| Unaudited | |||||||||||||||||
| Six months ended | Three months ended | ||||||||||||||||
| June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||||
| Fee income | $ | 741,295 | $ | 653,564 | $ | 348,179 | $ | 244,432 | |||||||||
| Operating expenses | 1,773,036 | 2,052,096 | 636,781 | 865,590 | |||||||||||||
| Research and development | 413,343 | 913,789 | 202,050 | 503,572 | |||||||||||||
| Total Expenses | 2,186,379 | 2,965,885 | 838,831 | 1,369,162 | |||||||||||||
| Operating loss | (1,445,084 | ) | (2,312,321 | ) | (490,652 | ) | (1,124,730 | ) | |||||||||
| Net investment income | 2,717 | 18,870 | 840 | 7,972 | |||||||||||||
| Net loss | $ | (1,442,367 | ) | $ | (2,293,451 | ) | $ | (489,812 | ) | $ | (1,116,758 | ) | |||||
| Basic and diluted net loss per common share | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.02 | ) | $ | (0.05 | ) | |||||
| Weighted average number of common shares outstanding | 24,043,846 | 24,043,846 | 24,043,846 | 24,043,846 | |||||||||||||
| RESEARCH FRONTIERS INCORPORATED | |||||||||||
| Consolidated Statements of Cash Flows | |||||||||||
| Unaudited | |||||||||||
| Six months ended | |||||||||||
| June 30, 2017 | June 30, 2016 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (1,442,367 | ) | $ | (2,293,451 | ) | |||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 87,789 | 94,693 | |||||||||
| Loss on sale of asset | - | 1,774 | |||||||||
| Change in assets and liabilities: | |||||||||||
| Royalty receivables | 325,638 | (17,151 | ) | ||||||||
| Prepaid expenses and other current assets | 191,899 | 58,476 | |||||||||
| Deferred revenue | 32,500 | 20,000 | |||||||||
| Accounts payable and accrued expenses | 1,046 | 223,299 | |||||||||
| Net cash used in operating activities | (803,495 | ) | (1,912,360 | ) | |||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of fixed assets | (5,822 | ) | (5,018 | ) | |||||||
| Proceeds from sale of investments and change in investments | 1,523,333 | (5,141 | ) | ||||||||
| Net cash provided by (used in) investing activities | 1,517,511 | (10,159 | ) | ||||||||
| Net increase (decrease) in cash and cash equivalents | 714,016 | (1,922,519 | ) | ||||||||
| Cash and cash equivalents at beginning of year | 1,691,603 | 5,712,310 | |||||||||
| Cash and cash equivalents at end of period | $ | 2,405,619 | $ | 3,789,791 | |||||||
CONTACT: Seth L. Van Voorhees Chief Financial Officer Research Frontiers Inc. +1-516-364-1902 Info@SmartGlass.com
