Research Frontiers Reports Fourth Quarter and Full Year 2020 Financial Results
March 11 2021 - 4:01PM
Research Frontiers Inc. (Nasdaq: REFR) announced its financial
results for its fourth quarter and year December 31, 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
- Date/Time: March 11, 2021, 4:30 PM ET
- Dial-in Information: 1-888-334-5785
- Replay: Available on Friday, March 12, 2021
for 90 days at www.SmartGlass-IR.com
Key Comments:
- Fee and other income for 2020 was
$1,064,975. The Company’s fee income from licensing activities for
the year ended December 31, 2020 was $828,450 as compared to
$1,564,024 for the year ended December 31, 2019. Lower fees in the
automotive and aircraft markets as production of certain Daimler
vehicles was curtailed due to the COVID-19 pandemic and as these
vehicles approached the end of their model lifetimes, were
partially offset by higher fee income from the display market.
- Total expenses decreased by $1,307,524, or approximately 28%,
for the year ended December 31, 2020 as compared to the same period
in 2019.
- The Company’s net loss decreased by
$1,468,114 to $2,340,864 ($0.07 per common share) for the year
ended December 31, 2020. This compares to a net loss of $3,808,978
($0.13 per common share) in 2019. The net loss for 2020 was
Research Frontiers’ lowest net loss in 26 years.
- As of December 31, 2020, the
Company had cash and cash equivalents of approximately $4.8 million
and working capital of approximately $5.2 million. The Company
expects to have sufficient working capital for at least the next 33
months of operations.
- Since Research Frontiers last
conference call, General Motor’s Cadillac division announced that
its new ultra-luxury all-electric flagship vehicle, the Celestiq,
will offer a four quadrant SPD-SmartGlass roof.
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 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. “Cadillac” and “Celestiq” are trademarks of General
Motors Corp.
CONTACT:Joseph M. HararyPresident and
CEOResearch Frontiers Inc.+1-516-364-1902Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATEDConsolidated
Balance SheetsDecember 31, 2020 and 2019
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,772,705 |
|
|
$ |
6,591,960 |
|
Royalties receivable, net of reserves of $972,202 in 2020 and
$1,135,598 in 2019 |
|
|
598,292 |
|
|
|
656,062 |
|
Prepaid expenses and other current assets |
|
|
56,512 |
|
|
|
58,835 |
|
Total current assets |
|
|
5,427,509 |
|
|
|
7,306,857 |
|
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
121,772 |
|
|
|
141,720 |
|
Operating lease ROU
assets |
|
|
616,442 |
|
|
|
773,989 |
|
Deposits and other assets |
|
|
33,567 |
|
|
|
33,567 |
|
Total assets |
|
$ |
6,199,290 |
|
|
$ |
8,256,133 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of operating lease liability |
|
$ |
166,377 |
|
|
$ |
163,236 |
|
Accounts payable |
|
|
33,410 |
|
|
|
169,750 |
|
Accrued expenses and other |
|
|
26,279 |
|
|
|
46,709 |
|
Deferred revenue |
|
|
- |
|
|
|
7,734 |
|
Total current liabilities |
|
|
226,066 |
|
|
|
387,429 |
|
|
|
|
|
|
|
|
|
|
Operating lease liability, net of current portion |
|
|
646,219 |
|
|
|
812,596 |
|
Total liabilities |
|
|
872,285 |
|
|
|
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 |
|
|
123,164,623 |
|
|
|
122,552,895 |
|
Accumulated deficit |
|
|
(117,840,776 |
) |
|
|
(115,499,912 |
) |
Total shareholders’ equity |
|
|
5,327,005 |
|
|
|
7,056,108 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
6,199,290 |
|
|
$ |
8,256,133 |
|
RESEARCH FRONTIERS INCORPORATEDConsolidated
Statements of OperationsYears ended December 31, 2020 and 2019
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
Fee income |
|
$ |
828,450 |
|
|
$ |
1,564,024 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
2,777,535 |
|
|
|
3,677,740 |
|
Research and development |
|
|
628,304 |
|
|
|
1,035,623 |
|
Total expenses |
|
|
3,405,839 |
|
|
|
4,713,363 |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(2,577,389 |
) |
|
|
(3,149,339 |
) |
|
|
|
|
|
|
|
|
|
Warrant market adjustment |
|
|
- |
|
|
|
(652,025 |
) |
Loss on disposal of fixed
asset |
|
|
- |
|
|
|
(50,666 |
) |
PPP loan forgiveness |
|
|
202,052 |
|
|
|
- |
|
Net investment income |
|
|
34,473 |
|
|
|
43,052 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,340,864 |
) |
|
$ |
(3,808,978 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
common share |
|
$ |
(0.07 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding |
|
|
31,487,785 |
|
|
|
30,011,556 |
|
RESEARCH FRONTIERS INCORPORATEDConsolidated
Statements of Shareholders’ EquityYears ended December 31, 2020 and
2019
|
|
Common Stock |
|
|
Additional |
|
|
Accumulated |
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Paid-in Capital |
|
|
Deficit |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2019 |
|
|
27,665,211 |
|
|
$ |
2,767 |
|
|
$ |
114,787,657 |
|
|
$ |
(111,690,934 |
) |
|
$ |
3,099,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of options and
warrants |
|
|
1,587,814 |
|
|
|
158 |
|
|
|
1,170,388 |
|
|
|
- |
|
|
|
1,170,546 |
|
Issuance of capital stock |
|
|
2,001,237 |
|
|
|
200 |
|
|
|
4,599,799 |
|
|
|
- |
|
|
|
4,599,999 |
|
Warrants converted to
equity |
|
|
- |
|
|
|
- |
|
|
|
1,153,439 |
|
|
|
- |
|
|
|
1,153,439 |
|
Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
841,612 |
|
|
|
- |
|
|
|
841,612 |
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,808,978 |
) |
|
|
(3,808,978 |
) |
Balance, December 31,
2019 |
|
|
31,254,262 |
|
|
|
3,125 |
|
|
|
122,552,895 |
|
|
|
(115,499,912 |
) |
|
|
7,056,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of options and
warrants |
|
|
321,524 |
|
|
|
33 |
|
|
|
284,174 |
|
|
|
- |
|
|
|
284,207 |
|
Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
327,554 |
|
|
|
- |
|
|
|
327,554 |
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,340,864 |
) |
|
|
(2,340,864 |
) |
Balance, December 31,
2020 |
|
|
31,575,786 |
|
|
$ |
3,158 |
|
|
$ |
123,164,623 |
|
|
$ |
(117,840,776 |
) |
|
$ |
5,327,005 |
|
RESEARCH FRONTIERS INCORPORATEDConsolidated
Statements of Cash FlowsYears ended December 31, 2020 and 2019
|
|
2020 |
|
|
2019 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,340,864 |
) |
|
$ |
(3,808,978 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
67,082 |
|
|
|
195,377 |
|
Warrant market adjustment |
|
|
- |
|
|
|
652,025 |
|
Share-based compensation |
|
|
327,554 |
|
|
|
841,612 |
|
Loss on disposal of fixed asset |
|
|
- |
|
|
|
50,666 |
|
Bad debts |
|
|
81,367 |
|
|
|
156,636 |
|
Other income - PPP loan forgiveness |
|
|
(202,052 |
) |
|
|
- |
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
Royalty receivables |
|
|
(23,597 |
) |
|
|
(123,021 |
) |
Prepaid expenses and other current assets |
|
|
2,323 |
|
|
|
(6,104 |
) |
Accounts payable and accrued expenses |
|
|
(156,770 |
) |
|
|
1,904 |
|
Deferred revenue |
|
|
(7,734 |
) |
|
|
(42,836 |
) |
Net cash used in operating activities |
|
|
(2,252,691 |
) |
|
|
(2,082,719 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchases of fixed assets |
|
|
(56,536 |
) |
|
|
(65,282 |
) |
Proceeds from sale of fixed asset |
|
|
3,713 |
|
|
|
- |
|
Net cash used in investing activities |
|
|
(52,823 |
) |
|
|
(65,282 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Net proceeds from issuances of common stock and warrants and
exercise of options and warrants |
|
|
284,207 |
|
|
|
5,770,545 |
|
Proceeds from PPP loan |
|
|
202,052 |
|
|
|
- |
|
Net cash provided by financing activities |
|
|
486,259 |
|
|
|
5,770,545 |
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalents |
|
|
(1,819,255 |
) |
|
|
3,622,544 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of year |
|
|
6,591,960 |
|
|
|
2,969,416 |
|
Cash and cash equivalents at
end of year |
|
$ |
4,772,705 |
|
|
$ |
6,591,960 |
|
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