(NASDAQ:REFR),
WOODBURY, N.Y., Aug. 07, 2025 (GLOBE NEWSWIRE) — Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its second quarter of 2025. 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, August 7, 2025, 4:30 PM ET | |
| • | Dial-in Information:1-888-334-5785 | |
| • | Conference Link: https://join.broaddata.com/?id=research-frontiers | |
| • | Replay: Available on Friday, August 8, 2025 for 90 days at https://smartglass-ir.com/ | |
Key Comments:
| 1. | Expansion of Product Pipeline and Acceleration of Use of SPD by Ferrari and Cadillac.
Royalties from the automotive market came primarily from Ferrari and Cadillac, both of which expanded production in the first half of 2025 of vehicles using the Company's SPD-SmartGlass technology. Strong sales from these OEMs are also expected in the second half of 2025. Additional royalties from sales to Mercedes and McLaren also were recorded in the first half of 2025. Mercedes also debuted a new luxury van at the Shanghai Auto Show in the second quarter of 2025, featuring new and innovative side windows with an SPD/PDLC combination of smartglass used across 75% of the vehicle's glass surface. These positive operational results were offset by one-time accounting charges relating to the bankruptcy in the second quarter of 2025 of one of the Company's European licensees supplying Ferrari with SPD-SmartGlass roofs. In anticipation of this, Research Frontiers and its SPD-Smart film supplier Gauzy worked with the OEM to successfully transition business from this licensee to another European licensee. Production by this licensee for Ferrari and other customers has already begun. 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. |
| 2. | Operational Efficiencies and Financial Stability.
Almost entirely as a result of the one-time accounting charges relating to the bankruptcy of one of the Company's licensees as described above, as well as non-cash expenses relating to the vesting of stock options in the second quarter of 2025 that were granted last year, the Company's net loss increased to $981,513 ($0.03 per common share) for the first half of 2025 compared to a net loss of $ 536,626 ($0.02 per common share) for the first half of 2024. As of June 30, 2025, the Company was debt-free, had cash and cash equivalents of approximately $1.3 million, and working capital of $1.7 million. |
“While economic activity continues to grow regarding sales of SPD-SmartGlass products, the one-time accounting charges relating to the bankruptcy filing of one of the Company's licensees and non-cash expenses relating to the vesting of stock options, both occurring in the second quarter negatively affected our second quarter results, which followed a strong first quarter. Because of our close communication with the OEM and our other licensees throughout this process, we were able to successfully transition the Ferrari business to another European licensee,” said Joseph M. Harary, President and CEO of Research Frontiers. “The growing and continued use of SPD-SmartGlass products in all industries, combined with our operational efficiencies and our debt-free status, positions us well for continued success and brings us closer to profitability. We also expect the launch of our retrofit application in the architectural market later this year to bring in significant revenues from SPD-SmartGlass in the architectural glass market, while also reducing the costs and speeding up installation and adoption of the use of SPD-SmartGlass in homes, offices and residential high-rise and multi-family buildings.”
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. Harary
President and CEO
Research Frontiers Inc.
+1-516-364-1902
Info@SmartGlass.com
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Balance Sheets
| June 30, 2025 (Unaudited) |
December 31, 2024 (See Note 1) |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,274,276 | $ | 1,994,186 | ||||
| Royalties receivable, net of reserves of $1,354,850 in | ||||||||
| 2025 and $1,254,450 in 2024, respectively | 536,373 | 658,213 | ||||||
| Prepaid expenses and other current assets | 161,281 | 93,490 | ||||||
| Total current assets | 1,971,930 | 2,745,889 | ||||||
| Fixed assets, net | 9,095 | 15,052 | ||||||
| Operating lease ROU assets | 1,135,715 | 1,222,640 | ||||||
| Deposits and other assets | 56,066 | 56,066 | ||||||
| Total assets | $ | 3,172,806 | $ | 4,039,647 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 137,817 | $ | 129,875 | ||||
| Accounts payable | 24,358 | 85,825 | ||||||
| Accrued expenses | 46,497 | 53,327 | ||||||
| Deferred revenue | 71,563 | – | ||||||
| Total current liabilities | 280,235 | 269,027 | ||||||
| Operating lease liability, net of current portion | 1,094,545 | 1,166,285 | ||||||
| Total liabilities | 1,374,780 | 1,435,312 | ||||||
| Shareholders' equity: | ||||||||
| Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,648,221 in 2025 and 2024, respectively | 3,365 | 3,365 | ||||||
| Additional paid-in capital | 128,352,397 | 128,177,193 | ||||||
| Accumulated deficit | (126,557,736 | ) | (125,576,223 | ) | ||||
| Total shareholders' equity | 1,798,026 | 2,604,335 | ||||||
| Total liabilities and shareholders' equity | $ | 3,172,806 | $ | 4,039,647 | ||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Six months ended June 30, | Three months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Fee income | $ | 689,680 | $ | 802,972 | $ | 129,904 | $ | 489,594 | ||||||||
| Operating expenses | 1,412,398 | 1,110,285 | 775,922 | 476,898 | ||||||||||||
| Research and development | 331,963 | 278,571 | 169,086 | 128,830 | ||||||||||||
| Total expenses | 1,744,361 | 1,388,856 | 945,008 | 605,728 | ||||||||||||
| Operating loss | (1,054,681 | ) | (585,884 | ) | (815,104 | ) | (116,134 | ) | ||||||||
| Net interest income | 25,811 | 49,258 | 11,278 | 22,112 | ||||||||||||
| Other income | 47,357 | – | – | – | ||||||||||||
| Net loss | $ | (981,513 | ) | $ | (536,626 | ) | $ | (803,826 | ) | $ | (94,022 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.00 | ) | ||||
| Weighted average number of common shares outstanding | 33,648,221 | 33,514,097 | 33,648,221 | 33,517,787 | ||||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders' Equity
(Unaudited)
For the six months ended June 30, 2025 and 2024
| Common Stock | Additional Paid-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 | – | – | – | (536,626 | ) | (536,626 | ) | |||||||||||||
| Balance, June 30, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,801,467 | ) | $ | 2,989,775 | ||||||||||
| Balance, January 1, 2025 | 33,648,221 | $ | 3,365 | $ | 128,177,193 | $ | (125,576,223 | ) | $ | 2,604,335 | ||||||||||
| Share-based compensation | – | – | 175,204 | – | 175,204 | |||||||||||||||
| Net loss | – | – | – | (981,513 | ) | (981,513 | ) | |||||||||||||
| Balance, June 30, 2025 | 33,648,221 | $ | 3,365 | $ | 128,352,397 | $ | (126,557,736 | ) | $ | 1,798,026 | ||||||||||
For the three months ended June 30, 2025 and 2024
| Common Stock | Additional Paid-in | Accumulated | ||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
| Balance, March 31, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,707,445 | ) | $ | 3,083,797 | ||||||||||
| Net loss | – | – | – | (94,022 | ) | (94,022 | ) | |||||||||||||
| Balance, June 30, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,801,467 | ) | $ | 2,989,775 | ||||||||||
| Balance, March 31, 2025 | 33,648,221 | $ | 3,365 | $ | 128,177,193 | $ | (125,753,910 | ) | $ | 2,426,648 | ||||||||||
| Share-based compensation | – | – | 175,204 | – | 175,204 | |||||||||||||||
| Net loss | – | – | – | (803,826 | ) | (803,826 | ) | |||||||||||||
| Balance, June 30, 2025 | 33,648,221 | $ | 3,365 | $ | 128,352,397 | $ | (126,557,736 | ) | $ | 1,798,026 | ||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Six months ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (981,513 | ) | $ | (536,626 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 6,166 | 12,951 | ||||||
| Share-based compensation | 175,204 | – | ||||||
| Credit loss expense | 124,253 | – | ||||||
| ROU asset amortization | 86,925 | 71,486 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (2,413 | ) | (75,096 | ) | ||||
| Prepaid expenses and other assets | (67,791 | ) | (107,898 | ) | ||||
| Accounts payable and accrued expenses | (68,297 | ) | 36,108 | |||||
| Deferred revenue | 71,563 | 125,000 | ||||||
| Operating lease liability | (63,798 | ) | (103,897 | ) | ||||
| Net cash used in operating activities | (719,701 | ) | (577,972 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (209 | ) | (154 | ) | ||||
| Net cash used in investing activities | (209 | ) | (154 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from exercise of options | – | 8,670 | ||||||
| Net cash provided by financing activities | – | 8,670 | ||||||
| Net decrease in cash and cash equivalents | (719,910 | ) | (569,456 | ) | ||||
| Cash and cash equivalents at beginning of year | 1,994,186 | 2,475,958 | ||||||
| Cash and cash equivalents at end of period | $ | 1,274,276 | $ | 1,906,502 | ||||
