Research Frontiers Reports Second Quarter 2016 Financial Results
Management to Host Conference Call Today at 4:30 p.m.
/EINPresswire.com/ -- WOODBURY, NY--(Marketwired - August 04, 2016) - Research Frontiers Inc. (NASDAQ: REFR) reported its financial results for its second quarter ended June 30, 2016. 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, August 4, 2016, 4:30PM ET
- Dial-in Information: 1-412-717-9591
- Replay: Available on Thursday, August 4, 2016 for 90 days at www.SmartGlass-IR.com
Key Second Quarter 2016 Comments:
- The Company's fee income from licensing activities for the six months ended June 30, 2016 was $653,564, as compared to $1,182,891 for the six months ended June 30, 2015.
- A substantial majority of this decrease in fee income was principally the result of non-recurring fees earned last year associated with the Company's participation in the Milan Expo, and non-recurring fee income under several license agreements in 2015.
- To a much lesser extent, fee income from automobiles and aircraft using the Company's technology was lower in the first half of 2016 due to: (1) lower production levels of certain car models in the first half of 2016; (2) lower costs to the OEM (and therefore lower royalties per car to the Company) for glass incorporating the Company's technology on certain car models, and (3) a design improvement in certain aircraft that caused a short-term reduction in new window installations.
- These factors were partially offset by higher sales volumes on other car and aircraft models using the Company's technology.
- The Company believes that the temporary factors causing reduced royalty income in the first half of 2016 to be short term, and the Company has been informed to expect increased production of vehicles in automotive and aircraft using the Company's technology, as well as higher take rates on all cars offering the Magic Sky Control option, starting with the second half of 2016 when the 2017 model year cars are produced by Mercedes-Benz.
- Production efficiencies are expected to continue and accelerate with the introduction of the higher vehicle production volumes for various car models going forward, and the Company expects that lower pricing per square foot 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 expects to generate additional royalty income from the near-term introduction of additional new car and aircraft models from other OEMS (original equipment manufacturers), continued growth of sales of products using the Company's technology for the marine industry in yachts and other watercraft, in trains, in museums, and in larger architectural projects.
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.
RESEARCH FRONTIERS INCORPORATED
Consolidated Balance Sheets
(Unaudited)
June 30 December 31
2016 2015
Assets (Unaudited)
------------------------------------------------------------ -------------
Current assets:
Cash and cash equivalents $ 3,789,791 $ 5,712,310
Short-term investments 1,518,925 1,513,784
Royalty receivables, net of reserves of
$629,457 in 2016 and 2015 1,331,826 1,314,675
Prepaid expenses and other current assets 80,989 133,465
------------- -------------
Total current assets 6,721,531 8,674,234
------------- -------------
Fixed assets, net 738,767 836,216
Deposits and other assets 33,567 33,567
------------- -------------
Total assets $ 7,493,865 $ 9,544,017
============= =============
Liabilities and Shareholders' Equity
-----------------------------------------------
Current liabilities:
Accounts payable $ 60,134 $ 46,734
Accrued expenses and other 631,377 421,478
Deferred revenue 20,000 -
------------- -------------
Total current liabilities 711,511 468,212
============= =============
Shareholders' equity:
Common stock, par value $0.0001 per share;
authorized 100,000,000 shares, issued and
outstanding24,043,846 shares for 2016 and
2015 2,404 2,404
Additional paid-in capital 111,483,959 111,483,959
Accumulated deficit (104,704,009) (102,410,558)
============= =============
Total shareholders' equity 6,782,354 9,075,805
------------- -------------
Total liabilities and shareholders' equity $ 7,493,865 $ 9,544,017
============= =============
See accompanying notes to consolidated financial statements.
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Operations
(Unaudited)
------------------------ ------------------------
Six months ended Three months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
2016 2015 2016 2015
----------- ----------- ----------- -----------
Fee income $ 653,564 $ 1,182,891 $ 244,432 $ 803,494
=========== =========== =========== ===========
Operating expenses 2,052,096 2,134,264 865,590 961,727
Research and development 913,789 768,972 503,572 334,518
----------- ----------- ----------- -----------
Total Expenses 2,965,885 2,903,236 1,369,162 1,296,245
----------- ----------- ----------- -----------
Operating loss (2,312,321) (1,720,345) (1,124,730) (492,751)
Net investment income 18,870 22,680 7,972 11,464
----------- ----------- ----------- -----------
Net loss $(2,293,451) $(1,697,665) $(1,116,758) $ (481,287)
=========== =========== =========== ===========
Basic and diluted net
loss per common share $ (0.10) $ (0.07) $ (0.05) $ (0.02)
----------- ----------- ----------- -----------
Weighted average number
of common shares 24,043,846 23,975,197 24,043,846 24,005,919
outstanding
=========== =========== =========== ===========
See accompanying notes to consolidated financial statements.
RESEARCH FRONTIERS INCORPORATED
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
------------------------
June 30, June 30,
2016 2015
----------- -----------
Cash flows from operating activities:
Net loss $(2,293,451) $(1,697,665)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and amortization 94,693 43,941
Stock-based compensation - 125,930
Loss on sale of asset 1,774 -
Change in assets and liabilities:
Royalty receivables (17,151) (552,064)
Prepaid expenses and other current assets 58,476 26,596
Deferred revenue 20,000 22,722
Accounts payable and accrued expenses 223,299 (116,590)
----------- -----------
Net cash used in operating activities (1,912,360) (2,147,130)
----------- -----------
Cash flows from investing activities:
Purchases of fixed assets (5,018) (310,796)
Change in investments (5,141) (7,315)
----------- -----------
Net cash used in investing activities (10,159) (318,111)
----------- -----------
Cash flows from financing activities:
Net proceeds from exercise of options and
warrants - 490,623
----------- -----------
Net cash provided by financing activities - 490,623
----------- -----------
Net decrease in cash and cash equivalents (1,922,519) (1,974,618)
Cash and cash equivalents at beginning of year 5,712,310 7,569,537
----------- -----------
Cash and cash equivalents at end of period $ 3,789,791 $ 5,594,919
=========== ===========
See accompanying notes to consolidated financial statements.
CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com
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