Research Frontiers Reports Second Quarter 2017 Financial Results

WOODBURY, NY -- (Marketwired) -- 08/03/17 -- Research Frontiers Inc. (NASDAQ: REFR) announced its financial results for its second quarter ended June 30, 2017. Management will host a conference call today at 4:30 p.m. Eastern Time to discuss its financial and operating results as well as the recent announcement by ONE Aviation regarding its selection of the ALTEOS electronically dimmable window (EDW) by PPG using SPD-SmartGlass technology for its new Eclipse 700 aircraft.

• Who: Joseph M. Harary, President & CEO, Seth Van Voorhees, CFO
• Date/Time: August 3, 2017, 4:30 PM ET
• Dial-in Information: 1-412-717-9591
• Replay: Available on Friday, August 4, 2017 for 90 days at www.SmartGlass-IR.com

Key Second Quarter 2017 Comments:

1. Global aircraft manufacturer ONE Aviation has announced the selection of the ALTEOS electronically dimmable window (EDW) by PPG using SPD-SmartGlass technology for its new Eclipse 700 aircraft. This is the first announced project from the partnership between PPG and Research Frontiers' licensee Vision Systems that was announced in May of this year.

2. The Company's fee income from licensing activities for the six months ended June 30, 2017 was $741,295 as compared to $653,564 for the six months ended June 30, 2016 representing a $87,731 increase between these two periods. This increase was principally the result of higher revenues from licensees in the aircraft, architectural, automotive and marine sectors as well as revenue from a new licensee focused on the transparent display sector.

The Company expects that lower pricing 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 is working with all levels of licensees in the supply chain to further reduce the cost of final products using the Company's technology.

Operating expenses decreased by $279,060 for the six months ended June 30, 2017 to $1,773,036 from $2,052,096 for the six months ended June 30, 2016. This decrease was principally the result of lower patent and patent litigation costs as well as lower payroll and related costs and lower investor relations and marketing costs.

Research and development expenditures decreased by $500,446 to $413,343 for the six months ended June 30, 2017 from $913,789 for the six months ended June 30, 2016. This decrease was principally the result of lower payroll costs.

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. ALTEOS is a trademark of PPG.

                      RESEARCH FRONTIERS INCORPORATED
                        Consolidated Balance Sheets
                                 Unaudited

                                         June 30, 2017    December 31, 2016
                                       -----------------  -----------------
Assets
Current assets:
  Cash and cash equivalents            $       2,405,619  $       1,691,603
  Short-term investments                               -          1,523,333
  Royalty receivables, net of reserves
   of $1,035,009 in 2017 and
   $1,110,020 in 2016                            791,508          1,117,146
  Prepaid expenses and other current
   assets                                         64,993            256,892
                                       -----------------  -----------------
    Total current assets                       3,262,120          4,588,974
                                       -----------------  -----------------

Fixed assets, net                                569,688            651,655
Deposits and other assets                         33,567             33,567
                                       -----------------  -----------------
    Total assets                       $       3,865,375  $       5,274,196
                                       =================  =================

Liabilities and Shareholders' Equity

Current liabilities:
  Accounts payable                     $          78,326  $          29,932
  Accrued expenses and other                     291,990            339,338
  Deferred revenue                                32,500                  -
                                       -----------------  -----------------
    Total current liabilities                    402,816            369,270
                                       -----------------  -----------------

Shareholders' equity:
  Common stock, par value $0.0001 per
   share; authorized 100,000,000
   shares, issued and outstanding
   24,043,846 shares in 2017 and 2016              2,404              2,404
  Additional paid-in capital                 111,551,490        111,551,490
  Accumulated deficit                       (108,091,335)      (106,648,968)
                                       -----------------  -----------------
    Total shareholders' equity                 3,462,559          4,904,926
                                       -----------------  -----------------

    Total liabilities and
     shareholders' equity              $       3,865,375  $       5,274,196
                                       =================  =================


                      RESEARCH FRONTIERS INCORPORATED
                   Consolidated Statements of Operations
                                 Unaudited

                             Six months ended         Three months ended
                         ------------------------  ------------------------
                           June 30,     June 30,     June 30,     June 30,
                             2017         2016         2017         2016
                         -----------  -----------  -----------  -----------

Fee income               $   741,295  $   653,564  $   348,179  $   244,432
                         -----------  -----------  -----------  -----------

Operating expenses         1,773,036    2,052,096      636,781      865,590
Research and development     413,343      913,789      202,050      503,572
                         -----------  -----------  -----------  -----------
  Total Expenses           2,186,379    2,965,885      838,831    1,369,162
                         -----------  -----------  -----------  -----------

  Operating loss          (1,445,084)  (2,312,321)    (490,652)  (1,124,730)

Net investment income          2,717       18,870          840        7,972
                         -----------  -----------  -----------  -----------
  Net loss               $(1,442,367) $(2,293,451) $  (489,812) $(1,116,758)
                         ===========  ===========  ===========  ===========

Basic and diluted net
 loss per common share   $     (0.06) $     (0.10) $     (0.02) $     (0.05)
                         ===========  ===========  ===========  ===========

Weighted average number
 of common shares
 outstanding              24,043,846   24,043,846   24,043,846   24,043,846
                         ===========  ===========  ===========  ===========


                      RESEARCH FRONTIERS INCORPORATED
                   Consolidated Statements of Cash Flows
                                 Unaudited

                                                     Six months ended
                                               ----------------------------
                                               June 30, 2017  June 30, 2016
                                               -------------  -------------
Cash flows from operating activities:
  Net loss                                     $  (1,442,367) $  (2,293,451)
  Adjustments to reconcile net loss to net
   cash used in operating activities:
  Depreciation and amortization                       87,789         94,693
  Loss on sale of asset                                    -          1,774
  Change in assets and liabilities:
    Royalty receivables                              325,638        (17,151)
    Prepaid expenses and other current assets        191,899         58,476
    Deferred revenue                                  32,500         20,000
    Accounts payable and accrued expenses              1,046        223,299
                                               -------------  -------------
      Net cash used in operating activities         (803,495)    (1,912,360)
                                               -------------  -------------

Cash flows from investing activities:
  Purchases of fixed assets                           (5,822)        (5,018)
  Proceeds from sale of investments and change
   in investments                                  1,523,333         (5,141)
                                               -------------  -------------
      Net cash provided by (used in) investing
       activities                                  1,517,511        (10,159)
                                               -------------  -------------

Net increase (decrease) in cash and cash
 equivalents                                         714,016     (1,922,519)

Cash and cash equivalents at beginning of year     1,691,603      5,712,310
                                               -------------  -------------
Cash and cash equivalents at end of period     $   2,405,619  $   3,789,791
                                               =============  =============

CONTACT:
Seth L. Van Voorhees
Chief Financial Officer
Research Frontiers Inc.
+1-516-364-1902
[email protected]

Source: Research Frontiers Inc.

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