REFR Research Frontiers Inc

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

Key Comments:

1.	The following new car models were introduced in 2023 using Research Frontiers SPD-SmartGlass technology: Cadillac Celestiq, Ferrari Purosangue, McLaren S450 and McLaren Artura. During the fourth quarter of 2023 additional automakers have begun projects using Research Frontiers patented SPD-SmartGlass technology in their panoramic glass roofs, and an Asian car manufacturer is expected to introduce an SPD-SmartGlass panoramic roof into serial production this year.
2.	Fee income during 2023 increased by 69% from the same period last year. Fee income in the fourth quarter of 2023 was also up over 90% from the third quarter, and up over 140% from the same quarter last year. These increases in fee income were 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, architectural, information display and other products using the Company’s SPD-SmartGlass technology are introduced into the market.
4.	Revenues and investment income overall increased by $539,069 (109%) and expenses decreased by $221,916 (7%) in 2023 compared to 2022. Overall, this resulted in a reduction in the Company’s net loss by $760,985 to $1,908,364 ($0.06 per share) for 2023.
5.	At December 31, 2023, the Company had cash and cash equivalents of approximately $2.5 million, and working capital of $3.3 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 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 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 INCORPORATEDConsolidated Balance SheetsDecember 31, 2023 and 2022

		December 31, 2023				December 31, 2022
Assets
Current assets:
Cash and cash equivalents		$	2,475,958			$	4,230,916
Royalties receivable, net of reserves of $1,253,450 in 2023 and $1,158,450 in 2022			1,003,404				589,599
Prepaid expenses and other current assets			96,784				100,973
Total current assets			3,576,146				4,921,488
Fixed assets, net			39,598				65,388
Operating lease ROU assets			178,715				323,509
Deposits and other assets			56,066				56,066
Total assets		$	3,850,525			$	5,366,451
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of operating lease liability		$	212,359			$	196,405
Accounts payable			50,880				71,079
Accrued expenses and other			14,192				34,379
Total current liabilities			277,431				301,863
Operating lease liability, net of current portion			55,363				267,723
Total liabilities			332,794				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			127,779,221				127,150,027
Accumulated deficit			(124,264,841	)			(122,356,477	)
Total shareholders’ equity			3,517,731				4,796,865
Total liabilities and shareholders’ equity		$	3,850,525			$	5,366,451

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of OperationsYears ended December 31, 2023 and 2022

		2023				2022
Fee income		$	909,598			$	539,686
Operating expenses			2,359,634				2,555,689
Research and development			583,266				609,127
Total expenses			2,942,900				3,164,816
Operating loss			(2,033,302	)			(2,625,130	)
Net investment income (loss)			124,938				(44,219	)
Net loss		$	(1,908,364	)		$	(2,669,349	)
Basic and diluted net loss per common share		$	(0.06	)		$	(0.08	)
Weighted average number of common shares outstanding			33,453,627				32,070,233

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of Shareholders’ EquityYears ended December 31, 2023 and 2022

		Common Stock								Additional Paid-in				Accumulated
		Shares				Amount				Capital				Deficit				Total
Balance, December 31, 2021			31,650,396			$	3,165			$	123,467,886			$	(119,687,128	)		$	3,783,923
Share-based compensation			-				-				232,291				-				232,291
Issuance of common stock and warrants			1,500,000				150				3,449,850				-				3,450,000
Net loss			-				-				-				(2,669,349	)			(2,669,349	)
Balance, December 31, 2022			33,150,396				3,315				127,150,027				(122,356,477	)			4,796,865
Exercise of warrants			358,891				36				484,466				-				484,502
Share-based compensation			-				-				144,728				-				144,728
Net loss			-				-				-				(1,908,364	)			(1,908,364	)
Balance, December 31, 2023			33,509,287			$	3,351			$	127,779,221			$	(124,264,841	)		$	3,517,731

RESEARCH FRONTIERS INCORPORATEDConsolidated Statements of Cash FlowsYears ended December 31, 2023 and 2022

		2023				2022
Cash flows from operating activities:
Net loss		$	(1,908,364	)		$	(2,669,349	)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization			27,348				28,837
Realized (gain) loss on marketable securities			(57,149	)			60,143
Share-based compensation			144,728				232,291
Bad debts			95,000				141,772
ROU asset amortization			144,794				146,315
Change in assets and liabilities:
Royalty receivables			(508,805	)			100,266
Prepaid expenses and other assets			4,189				(30,542	)
Accounts payable and accrued expenses			(40,386	)			(10,387	)
Operating lease liability			(196,406	)			(182,091	)
Net cash used in operating activities			(2,295,051	)			(2,182,745	)
Cash flows from investing activities:
Purchases of fixed assets			(1,558	)			(1,271	)
Purchases of marketable securities			(5,434,386	)			-
Sales and maturities of marketable securities			5,491,535				2,694,968
Net cash provided by investing activities			55,591				2,693,697
Cash flows from financing activities:
Net proceeds from exercise of warrants			484,502				-
Proceeds from issuance of common stock and warrants			-				3,450,000
Net cash provided by financing activities			484,502				3,450,000
Net (decrease) increase in cash and cash equivalents			(1,754,958	)			3,960,952
Cash and cash equivalents at beginning of year			4,230,916				269,964
Cash and cash equivalents at end of year		$	2,475,958			$	4,230,916