REFR Research Frontiers Inc

Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its third quarter and firstnine months of 2023. 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 2, 2023, 4:30 PM ET
	•	Dial-in Information:1-888-334-5785
	•	Replay: Available on Friday, November 3, 2023 for 90 days at https://smartglass-ir.com/

Key Comments:

1.	Car models from Cadillac, Ferrari, McLaren, and at least one other Asian car manufacturer are expected to be introduced into serial production in 2023 and the first half of 2024, and during the fourth quarter of 2023 additional automakers have begun projects using Research Frontiers patented SPD-SmartGlass technology in their panoramic glass roofs.
2.	Fee income during the first nine months of the year was up 46% from the same period last year. Fee income in the third quarter of 2023 was also up 9% from the same quarter last year. This increase in fee income was primarily the result of higher royalties from the automotive market.
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.	At September 30, 2023, the Company had cash and cash equivalents and marketable securities of approximately $3.0 million, and working capital of $3.6million. 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 AnnualReport 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.

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

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Balance Sheets

		September 30, 2023				December 31, 2022
		(Unaudited)				(See Note 1)
Assets
Current assets:
Cash and cash equivalents		$	524,985			$	4,230,916
Marketable securities			2,499,625				-
Royalties receivable, net of reserves of $1,253,450 in 2023 and $1,158,450 in 2022			721,244				589,599
Prepaid expenses and other current assets			164,584				100,973
Total current assets			3,910,438				4,921,488
Fixed assets, net			46,164				65,388
Operating lease ROU assets			214,458				323,509
Deposits and other assets			56,066				56,066
Total assets		$	4,227,126			$	5,366,451
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of operating lease liability		$	207,838			$	196,405
Accounts payable			32,101				71,079
Accrued expenses and other			20,572				34,379
Deferred revenue			3,735				-
Total current liabilities			264,246				301,863
Operating lease liability, net of current portion			109,967				267,723
Total liabilities			374,213				569,586
Shareholders’ equity:
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,509,287 in 2023 and 33,150,396 in 2022			3,351				3,315
Additional paid-in capital			127,634,493				127,150,027
Accumulated deficit			(123,784,931	)			(122,356,477	)
Total shareholders’ equity			3,852,913				4,796,865
Total liabilities and shareholders’ equity		$	4,227,126			$	5,366,451

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Operations(Unaudited)

		Nine months ended June 30,								Three months ended September 30,
		2023				2022				2023				2022
Fee income		$	597,362			$	409,783			$	164,146			$	150,443
Operating expenses			1,695,129				1,770,414				542,635				487,476
Research and development			430,150				444,413				135,319				149,156
Total expenses			2,125,279				2,214,827				677,954				636,632
Operating loss			(1,527,917	)			(1,805,044	)			(513,808	)			(486,189	)
Net investment income (loss)			99,463				(48,871	)			41,642				2,460
Net loss		$	(1,428,454	)		$	(1,853,915	)		$	(472,166	)		$	(483,729	)
Basic and diluted net loss per common share		$	(0.04	)		$	(0.06	)		$	(0.01	)		$	(0.02	)
Weighted average number of common shares outstanding			33,435,074				31,710,179				33,509,287				31,829,744

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

For the nine months ended September 30, 2022 and 2023

		Common Stock									AdditionalPaid-in				Accumulated
		Shares				Amount					Capital				Deficit				Total
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
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

For the three months ended September 30, 2022 and 2023

		Common Stock									AdditionalPaid-in					Accumulated
		Shares				Amount					Capital					Deficit					Total
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
Balance, July 1, 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

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Cash Flows(Unaudited)

		For the nine months ended September 30,
		2023				2022
Cash flows from operating activities:
Net loss		$	(1,428,454	)		$	(1,853,915	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			20,489				21,614
Realized (gain) loss on marketable securities			(26,375	)			60,143
Unrealized gain on marketable securities			(30,399	)
ROU asset amortization			109,051				109,660
Bad debt expense			95,000				151,772
Change in assets and liabilities:
Royalty receivables			(226,645	)			145,335
Prepaid expenses and other assets			(63,612	)			(73,640	)
Accounts payable and accrued expenses			(52,784	)			(44,889	)
Deferred revenue			3,735				3,586
Operating lease liability			(146,323	)			(135,232	)
Net cash used in operating activities			(1,746,317	)			(1,615,566	)
Cash flows from investing activities:
Purchases of fixed assets			(1,265	)			(1,216	)
Purchases of marketable securities			(5,434,386	)			-
Sales of marketable securities			2,991,535				2,694,968
Net cash (used in) provided by investing activities			(2,444,116	)			2,693,752
Cash flows from financing activities:
Proceeds from sale of common stock and warrants			-				3,450,000
Net proceeds from exercise of warrants			484,502				-
Net cash provided by financing activities			484,502				3,450,000
Net (decrease) increase in cash and cash equivalents			(3,705,931	)			4,528,186
Cash and cash equivalents at beginning of period			4,230,916				269,964
Cash and cash equivalents at end of period		$	524,985			$	4,798,150