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Research Frontiers Reports Third Quarter 2022 Financial Results and Will Host a Conference Call at 4:30p.m. Today

REFR | November 3, 2022

WOODBURY, N.Y., Nov. 03, 2022 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its September 30, 2022 third quarter. 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: November 3, 2022, 4:30 PM ET
	●	Dial-in Information:1-888-334-5785
	●	Replay: Available on Friday, November 4, 2022 for 90 days at https://smartglass-ir.com/

Key Comments:

1.	After adjusting for one-time events relating to the timing of payments and new and amended license agreements entered into in 2021, fee income was higher in the third quarter of 2022 as compared to the third quarter of 2021, primarily as a result of higher fee income from the automotive and aircraft segments. Fee income was also higher in the third quarter of 2022 as compared to the second quarter of 2022, primarily as a result of higher fee income from the automotive and aircraft segments.

2.	This year Cadillac had multiple high-profile public exhibitions of its Cadillac Celestiq which enters series production next year and will be produced at the General Motors Tech Center in Warren Michigan. The Celestiq is Cadillac’s all-electric luxury flagship, and features a four-quadrant SPD-SmartGlass roof using Research Frontiers variable tint technology. An additional car was introduced by another European automobile manufacturer in the third quarter of 2022 using Research Frontiers SPD-SmartGlass technology in its panoramic glass roof.

3.	The Company expects revenue in all market segments to increase as new car models, aircraft, trains and other products using the Company’s SPD-SmartGlass technology are introduced into the market.

4.	Operating expenses decreased by $83,548, and research and development expenses increased by $13,941 in the third quarter of 2022 as compared to the same period in 2021.

5.	The Company’s net loss was $483,729 ($0.02 per common share) for the three months ended September 30, 2022 as compared to net income of $21,614 ($0.00 per common share) for the three months ended September 30, 2021. The Company’s net loss was $258,109 lower in the third quarter of 2022 compared to the previous quarter.

6.	As of September 30, 2022, the Company had cash and cash equivalents of approximately $4.8 million and working capital of approximately $5.2 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 Quarterly Report on Form 10-Q 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. Celestiq is a trademark of General Motors.

CONTACT:
Joseph M. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets

	September 30, 2022			December 31, 2021
	(Unaudited)

Assets
Current assets:
Cash and cash equivalents	$	4,798,150		$	269,964
Marketable securities		-			2,755,111
Royalty receivables, net of reserves of $1,168,450 in 2022 and $1,016,678 in 2021		534,529			831,636
Prepaid expenses and other current assets		166,571			92,931
Total current assets		5,499,250			3,949,642

Fixed assets, net		72,556			92,954
Operating lease ROU assets		360,164			469,824
Deposits and other assets		33,567			33,567
Total assets	$	5,965,537		$	4,545,987

Liabilities and Shareholders’ Equity

Current liabilities:
Current portion of operating lease liability	$	193,182		$	182,091
Accounts payable		38,010			66,460
Accrued expenses and other		32,946			49,385
Deferred revenue		3,586			-
Total current liabilities		267,724			297,936

Operating lease liability, net of current portion		317,805			464,128
Total liabilities		585,529			762,064

Shareholders’ equity:
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,150,396 in 2022 and 31,650,396 in 2021		3,315			3,165
Additional paid-in capital		126,917,736			123,467,886
Accumulated deficit		(121,541,043	)		(119,687,128	)
Total shareholders’ equity		5,380,008			3,783,923

Total liabilities and shareholders’ equity	$	5,965,537		$	4,545,987

See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)

	Nine months ended September 30,						Three months ended September 30,
	2022			2021			2022			2021

Fee income	$	409,783		$	1,050,526		$	150,443		$	723,465

Operating expenses		1,770,414			1,699,698			487,476			571,024
Research and development		444,413			420,203			149,156			135,215
Total expenses		2,214,827			2,119,901			636,632			706,239

Operating income (loss)		(1,805,044	)		(1,069,375	)		(486,189	)		17,226

Net investment (loss) income		(48,871	)		5,747			2,460			4,388

Net income (loss)	$	(1,853,915	)	$	(1,063,628	)	$	(483,729	)	$	21,614

Basic and diluted net income (loss) per common share	$	(0.06	)	$	(0.03	)	$	(0.02	)	$	0.00

Weighted average number of common shares outstanding		31,710,179			31,645,227			31,829,744			31,650,396

See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)

For the nine months ended September 30, 2021 and 2022

	Common Stock				Additional Paid-in		Accumulated
	Shares		Amount		Capital		Deficit			Total
Balance, January 1, 2021		31,575,786	$	3,158	$	123,164,623	$	(117,840,776	)	$	5,327,005

Exercise of options		74,610		7		86,255		-			86,262
Net loss		-		-		-		(1,063,628	)		(1,063,628	)
Balance, September 30, 2021		31,650,396	$	3,165	$	123,250,878	$	(118,904,404	)	$	4,349,639

Balance, January 1, 2022		31,650,396	$	3,165	$	123,467,886	$	(119,687,128	)	$	3,783,923

Issuance of common stock and warrants		1,500,000		150		3,449,850		-			3,450,000
Net loss		-		-		-		(1,853,915	)		(1,853,915	)
Balance, September 30, 2022		33,150,396	$	3,315	$	126,917,736	$	(121,541,043	)	$	5,380,008

For the three months ended September 30, 2021 and 2022

	Common Stock				Additional Paid-in		Accumulated
	Shares		Amount		Capital		Deficit			Total
Balance, July 1, 2021		31,650,396	$	3,165	$	123,250,878	$	(118,926,018	)	$	4,328,025

Net income		-		-		-		21,614			21,614
Balance, September 30, 2021		31,650,396	$	3,165	$	123,250,878	$	(118,904,404	)	$	4,349,639

Balance, July 1, 2022		31,650,396	$	3,165	$	123,467,886	$	(121,057,314	)	$	2,413,737

Issuance of common stock and warrants		1,500,000		150		3,449,850		-			3,450,000
Net loss		-		-		-		(483,729	)		(483,729	)
Balance, September 30, 2022		33,150,396	$	3,315	$	126,917,736	$	(121,541,043	)	$	5,380,008

See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	For the nine months ended September 30,
	2022			2021
Cash flows from operating activities:
Net loss	$	(1,853,915	)	$	(1,063,628	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		21,614			22,414
Realized loss on marketable securities		60,143			-
Unrealized loss on marketable securities		-			5,545
Bad debts		151,772			-
ROU asset amortization		109,660			109,963
Change in assets and liabilities:
Royalty receivables		145,335			(754,679	)
Prepaid expenses and other current assets		(73,640	)		(102,183	)
Accounts payable and accrued expenses		(44,889	)		24,959
Deferred revenue		3,586			13,304
Operating lease liability		(135,232	)		(123,539	)
Net cash used in operating activities		(1,615,566	)		(1,867,844	)

Cash flows from investing activities:
Purchases of fixed assets		(1,216	)		(966	)
Purchases of marketable securities		-			(3,433,633	)
Proceeds from sales of marketable securities		2,694,968			650,000
Net cash provided by (used in) investing activities		2,693,752			(2,784,599	)

Cash flows from financing activities:
Proceeds from sale of common stock and warrants		3,450,000			-
Proceeds from exercise of options		-			86,262
Net cash provided by financing activities		3,450,000			86,262

Net increase (decrease) in cash and cash equivalents		4,528,186			(4,566,181	)

Cash and cash equivalents at beginning of period		269,964			4,772,705
Cash and cash equivalents at end of period	$	4,798,150		$	206,524