REFR Research Frontiers Inc

Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter of 2024. 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: Thursday, November 7, 2024, 4:30 PM ET
	•	Dial-in Information:1-888-334-5785
	•	Replay: Available on Friday, November 8, 2024 for 90 days at https://smartglass-ir.com/

Key Comments:

1.	Revenue Growth, Especially in the Automotive and Aircraft Markets Research Frontiers royalty income increased by over 115% in the third quarter compared to last year, marking the seventh consecutive quarter of revenue growth from the same period in the prior year. The automotive and aircraft markets demonstrated particularly robust growth, each posting triple-digit percentage gains, fueling this upward trend. Research Frontiers’ revenue for the first nine months of 2024 surpassed total revenue for all of calendar year 2023, supported by strong growth across automotive, aircraft, and architectural markets. Total royalty income for the first nine months of 2024 rose by over 93% compared to the same period last year.
2.	Expansion of Product Pipeline.The Company expects revenue in all market segments to increase as new car models, aircraft, trains, architectural, information display and other products using the Company’s SPD-SmartGlass technology are introduced into the market. The Company anticipates multiple new car models featuring SPD-SmartGlass technology in 2025 from OEMs in Asia and Europe.
3.	Operational Efficiencies and Financial Stability.Expenses decreased by approximately $92,000 for the third quarter and by over $150,000 for the nine month period ending September 30, 2024. These efficiencies, combined with rising revenue, reduced the Company’s quarterly net loss to $0.00 per share in the third quarter and $0.02 per share for the nine months ending September 30, 2024. At September 30, 2024, the Company had cash and cash equivalents of approximately $1.65 million, and working capital of $2.7 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 numerous 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.

CONTACT:Joseph M. HararyPresident and CEOResearch Frontiers Inc.+1-516-364-1902Info@SmartGlass.com

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Balance Sheets

		September 30, 2024(Unaudited)				December 31, 2023(See Note 1)
Assets
Current assets:
Cash and cash equivalents		$	1,647,987			$	2,475,958
Royalties receivable, net of reserves of $1,253,450 in 2024 and 2023, respectively			1,048,008				1,003,404
Prepaid expenses and other current assets			154,727				96,784
Total current assets			2,850,722				3,576,146
Fixed assets, net			20,758				39,598
Operating lease ROU assets			71,486				178,715
Deposits and other assets			56,066				56,066
Total assets		$	2,999,032			$	3,850,525
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of operating lease liability		$	109,968			$	212,359
Accounts payable			34,306				50,880
Accrued expenses			31,799				14,192
Total current liabilities			176,073				277,431
Operating lease liability, net of current portion			-				55,363
Total liabilities			176,073				332,794
Shareholders’ equity:
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,517,787 in 2024 and 33,509,287 in 2023			3,352				3,351
Additional paid-in capital			127,787,890				127,779,221
Accumulated deficit			(124,968,283	)			(124,264,841	)
Total shareholders’ equity			2,822,959				3,517,731
Total liabilities and shareholders’ equity		$	2,999,032			$	3,850,525

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Operations(Unaudited)

		Nine months ended September 30,								Three months ended September 30,
		2024				2023				2024				2023
Fee income		$	1,157,380			$	597,362			$	354,408			$	164,146
Operating expenses			1,565,152				1,695,129				454,866				542,635
Research and development			409,817				430,150				131,246				135,319
Total expenses			1,974,969				2,125,279				586,112				677,954
Operating loss			(817,589	)			(1,527,917	)			(231,704	)			(513,808	)
Net investment income			78,995				99,463				29,736				41,642
Other income			35,152				-				35,152				-
Net loss		$	(703,442	)		$	(1,428,454	)		$	(166,816	)		$	(472,166	)
Basic and diluted net loss per common share		$	(0.02	)		$	(0.04	)		$	(0.00	)		$	(0.01	)
Weighted average number of common shares outstanding			33,515,327				33,435,074				33,517,787				33,509,287

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Shareholders’ Equity(Unaudited)

For the nine months ended September 30, 2023 and 2024

		Common Stock								AdditionalPaid-in				Accumulated
		Shares				Amount				Capital				Deficit				Total
Balance, January 1, 2023			33,150,396			$	3,315			$	127,150,027			$	(122,356,477	)		$	4,796,865
Exercise of warrants			358,891				36				484,466				-				484,502
Net loss			-				-				-				(1,428,454	)			(1,428,454	)
Balance, September 30, 2023			33,509,287			$	3,351			$	127,634,493			$	(123,784,931	)		$	3,852,913

		Common Stock								AdditionalPaid-in				Accumulated
		Shares				Amount				Capital				Deficit				Total
Balance, January 1, 2024			33,509,287			$	3,351			$	127,779,221			$	(124,264,841	)		$	3,517,731
Exercise of options			8,500				1				8,669				-				8,670
Net loss			-				-				-				(703,442	)			(703,442	)
Balance, September 30, 2024			33,517,787			$	3,352			$	127,787,890			$	(124,968,283	)		$	2,822,959

For the three months ended September 30, 2023 and 2024

		Common Stock								AdditionalPaid-in				Accumulated
		Shares				Amount				Capital				Deficit				Total
Balance, June 30, 2023			33,509,287			$	3,351			$	127,634,493			$	(123,312,765	)		$	4,325,079
Net loss			-				-				-				(472,166	)			(472,166	)
Balance, September 30, 2023			33,509,287			$	3,351			$	127,634,493			$	(123,784,931	)		$	3,852,913

		Common Stock								AdditionalPaid-in				Accumulated
		Shares				Amount				Capital				Deficit				Total
Balance, June 30, 2024			33,517,787			$	3,352			$	127,787,890			$	(124,801,467	)		$	2,989,775
Net loss			-				-				-				(166,816	)			(166,816	)
Balance, September 30, 2024			33,517,787			$	3,352			$	127,787,890			$	(124,968,283	)		$	2,822,959

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Cash Flows(Unaudited)

		For the nine months ended September 30,
		2024				2023
Cash flows from operating activities:
Net loss		$	(703,442	)		$	(1,428,454	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			19,582				20,489
Realized gain on marketable securities			-				(26,375	)
Unrealized gain on marketable securities			-				(30,399	)
ROU asset amortization			107,229				109,051
Credit loss expense			25,001				95,000
Change in assets and liabilities:
Royalty receivables			(69,605	)			(226,645	)
Prepaid expenses and other assets			(57,943	)			(63,612	)
Accounts payable and accrued expenses			1,033				(52,784	)
Deferred revenue			-				3,735
Operating lease liability			(157,754	)			(146,323	)
Net cash used in operating activities			(835,899	)			(1,746,317	)
Cash flows from investing activities:
Purchases of fixed assets			(742	)			(1,265	)
Purchases of marketable securities			-				(5,434,386	)
Sales of marketable securities			-				2,991,535
Net cash used in investing activities			(742	)			(2,444,116	)
Cash flows from financing activities:
Net proceeds from exercise of options and warrants			8,670				484,502
Net cash provided by financing activities			8,670				484,502
Net decrease in cash and cash equivalents			(827,971	)			(3,705,931	)
Cash and cash equivalents at beginning of period			2,475,958				4,230,916
Cash and cash equivalents at end of period		$	1,647,987			$	524,985