Management to Host Conference Call at 4:30 p.m.
WOODBURY, N.Y., May 14, 2018 (GLOBE NEWSWIRE) — Research Frontiers Inc. (Nasdaq:REFR) announced its financial results for its first quarter ended March 31, 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: May 14, 2018, 4:30 PM ET
- Dial-in Information: 1-412-717-9591
- Replay: Available on Tuesday, May 15, 2018 for 90 days at www.SmartGlass-IR.com
Key First Quarter 2018 Comments:
1) Fee income increased in all major markets for the Company’s SPD-SmartGlass light-control technology.
a. Fee income increased to $433,269 for the 3-month period ending March 31, 2018 as compared to $393,116 for the same period in 2017, a 10.2% increase. This increase in revenues was principally the result of higher revenues from the automotive, aircraft and architectural sectors that was partially offset by modestly lower revenues in the display sector. In 2018, the Company adopted the new ASC 606 revenue recognition guidance which applies to revenues reported beginning with the first quarter of 2018. In the first quarter of 2018, the Company reported $48,746 higher revenue under ASC 606 as compared to the accounting guidance used prior to the adoption of ASC 606.
b. Fee income as reported increased by $153,829, or 55% in the first quarter of 2018 as compared to the fourth quarter of 2017. Under the previous revenue recognition guidance in place prior to the adoption of ASC 606, fee income for the first quarter of 2018 would have increased by $105,083 or 37.6% over the fourth quarter of 2017.
c. These revenue increases from last quarter and year over year follow a 22% increase in revenues in 2017 over the prior year.
2) Expenses declined by $119,107, or -8.8%, for the 3-month period ending March 31, 2018 as compared to the same period in 2017. This expense reduction follows a $1.6 million expense reduction (-29%) in 2017 as compared to the prior year.
3) The Company’s net loss was $158,788 (16.7%) lower in the first quarter of 2018 as compared to the same period last year. This follows five straight years in a row of lower losses for the Company.
4) Cash and cash equivalents increased by $558,698 since the end of 2017 as a result of a financing completed in February.
5) The interest in using SPD technology for new markets continues to expand as demonstrated by Electrolux, a global leader in appliances, which premiered its “SenseOven 2.0” concept at 2018 EuroCucina, Europe’s largest kitchen trade show. The SenseOven 2.0 embeds VariGuard’s SPD-SmartGlass interactive intelligence into the appliance – an electronically dimmable glass which uses Research Frontiers’ patented SPD-Smart light-control film technology.
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 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 Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
[email protected]
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 | ||||||||
| Consolidated Balance Sheets | ||||||||
| Unaudited | ||||||||
| March 31, 2018 | December 31, 2017 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,296,545 | $ | 1,737,847 | ||||
| Royalties receivable, net of reserves of $1,051,424 in 2018 and 2017 | 737,203 | 597,441 | ||||||
| Prepaid expenses and other current assets | 91,052 | 29,697 | ||||||
| Total current assets | 3,124,800 | 2,364,985 | ||||||
| Fixed assets, net | 443,081 | 482,561 | ||||||
| Deposits and other assets | 33,567 | 33,567 | ||||||
| Total assets | $ | 3,601,448 | $ | 2,881,113 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 78,137 | $ | 58,090 | ||||
| Accrued expenses and other | 288,551 | 254,833 | ||||||
| Deferred revenue | 153,140 | 824 | ||||||
| Total current liabilities | 519,828 | 313,747 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 25,432,739 in 2018 and 24,043,846 in 2017 |
2,543 | 2,404 | ||||||
| Additional paid-in capital | 112,877,650 | 111,627,789 | ||||||
| Accumulated deficit | (109,798,573 | ) | (109,062,827 | ) | ||||
| Total shareholders’ equity | 3,081,620 | 2,567,366 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,601,448 | $ | 2,881,113 | ||||
| RESEARCH FRONTIERS INCORPORATED | ||||||||
| Consolidated Statements of Operations | ||||||||
| Unaudited | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2018 | 2017 | |||||||
| Fee income | $ | 433,269 | $ | 393,116 | ||||
| Operating expenses | 1,009,825 | 1,136,255 | ||||||
| Research and development | 218,616 | 211,293 | ||||||
| Total Expenses | 1,228,441 | 1,347,548 | ||||||
| Operating loss | (795,172 | ) | (954,432 | ) | ||||
| Net investment income | 1,405 | 1,877 | ||||||
| Net loss | (793,767 | ) | (952,555 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.03 | ) | $ | (0.04 | ) | ||
| Weighted average number of common shares outstanding | 24,691,996 | 24,043,846 | ||||||
| RESEARCH FRONTIERS INCORPORATED | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| Unaudited | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2018 | 2017 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (793,767 | ) | $ | (952,555 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 44,879 | 43,852 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (81,741 | ) | 33,578 | |||||
| Prepaid expenses and other current assets | (61,355 | ) | 178,065 | |||||
| Accounts payable and accrued expenses | 53,765 | 17,710 | ||||||
| Deferred revenue | 152,316 | 33,750 | ||||||
| Net cash used in operating activities | (685,903 | ) | (645,600 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (5,399 | ) | (4,121 | ) | ||||
| Proceeds from sale of investment | – | 1,523,333 | ||||||
| Net cash (used in) provided by investing activities | (5,399 | ) | 1,519,212 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds for issuance of common stock and warrants | 1,250,000 | – | ||||||
| Net cash provided by financing activities | 1,250,000 | – | ||||||
| Net increase in cash and cash equivalents | 558,698 | 873,612 | ||||||
| Cash and cash equivalents at beginning of year | 1,737,847 | 1,691,603 | ||||||
| Cash and cash equivalents at end of period | $ | 2,296,545 | $ | 2,565,215 | ||||