REFR Research Frontiers Inc

Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its September 30, 2022 third quarter. 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 3, 2022, 4:30 PM ET
	●	Dial-in Information:1-888-334-5785
	●	Replay: Available on Friday, November 4, 2022 for 90 days at https://smartglass-ir.com/

Key Comments:

1.	After adjusting for one-time events relating to the timing of payments and new and amended license agreements entered into in 2021, fee income was higher in the third quarter of 2022 as compared to the third quarter of 2021, primarily as a result of higher fee income from the automotive and aircraft segments. Fee income was also higher in the third quarter of 2022 as compared to the second quarter of 2022, primarily as a result of higher fee income from the automotive and aircraft segments.
2.	This year Cadillac had multiple high-profile public exhibitions of its Cadillac Celestiq which enters series production next year and will be produced at the General Motors Tech Center in Warren Michigan. The Celestiq is Cadillac’s all-electric luxury flagship, and features a four-quadrant SPD-SmartGlass roof using Research Frontiers variable tint technology. An additional car was introduced by another European automobile manufacturer in the third quarter of 2022 using Research Frontiers SPD-SmartGlass technology in its panoramic glass roof.
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.	Operating expenses decreased by $83,548, and research and development expenses increased by $13,941 in the third quarter of 2022 as compared to the same period in 2021.
5.	The Company’s net loss was $483,729 ($0.02 per common share) for the three months ended September 30, 2022 as compared to net income of $21,614 ($0.00 per common share) for the three months ended September 30, 2021. The Company’s net loss was $258,109 lower in the third quarter of 2022 compared to the previous quarter.
6.	As of September 30, 2022, the Company had cash and cash equivalents of approximately $4.8 million and working capital of approximately $5.2 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 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. Celestiq is a trademark of General Motors.

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

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Balance Sheets

		September 30, 2022				December 31, 2021
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	4,798,150			$	269,964
Marketable securities			-				2,755,111
Royalty receivables, net of reserves of $1,168,450 in 2022 and $1,016,678 in 2021			534,529				831,636
Prepaid expenses and other current assets			166,571				92,931
Total current assets			5,499,250				3,949,642
Fixed assets, net			72,556				92,954
Operating lease ROU assets			360,164				469,824
Deposits and other assets			33,567				33,567
Total assets		$	5,965,537			$	4,545,987
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of operating lease liability		$	193,182			$	182,091
Accounts payable			38,010				66,460
Accrued expenses and other			32,946				49,385
Deferred revenue			3,586				-
Total current liabilities			267,724				297,936
Operating lease liability, net of current portion			317,805				464,128
Total liabilities			585,529				762,064
Shareholders’ equity:
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,150,396 in 2022 and 31,650,396 in 2021			3,315				3,165
Additional paid-in capital			126,917,736				123,467,886
Accumulated deficit			(121,541,043	)			(119,687,128	)
Total shareholders’ equity			5,380,008				3,783,923
Total liabilities and shareholders’ equity		$	5,965,537			$	4,545,987

See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Operations(Unaudited)

		Nine months ended September 30,								Three months ended September 30,
		2022				2021				2022				2021
Fee income		$	409,783			$	1,050,526			$	150,443			$	723,465
Operating expenses			1,770,414				1,699,698				487,476				571,024
Research and development			444,413				420,203				149,156				135,215
Total expenses			2,214,827				2,119,901				636,632				706,239
Operating income (loss)			(1,805,044	)			(1,069,375	)			(486,189	)			17,226
Net investment (loss) income			(48,871	)			5,747				2,460				4,388
Net income (loss)		$	(1,853,915	)		$	(1,063,628	)		$	(483,729	)		$	21,614
Basic and diluted net income (loss) per common share		$	(0.06	)		$	(0.03	)		$	(0.02	)		$	0.00
Weighted average number of common shares outstanding			31,710,179				31,645,227				31,829,744				31,650,396

See accompanying notes to condensed consolidated financial statements.

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

For the nine months ended September 30, 2021 and 2022

		Common Stock								AdditionalPaid-in				Accumulated
		Shares				Amount				Capital				Deficit				Total
Balance, January 1, 2021			31,575,786			$	3,158			$	123,164,623			$	(117,840,776	)		$	5,327,005
Exercise of options			74,610				7				86,255				-				86,262
Net loss			-				-				-				(1,063,628	)			(1,063,628	)
Balance, September 30, 2021			31,650,396			$	3,165			$	123,250,878			$	(118,904,404	)		$	4,349,639
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

For the three months ended September 30, 2021 and 2022

		Common Stock								Additional Paid-in				Accumulated
		Shares				Amount				Capital				Deficit				Total
Balance, July 1, 2021			31,650,396			$	3,165			$	123,250,878			$	(118,926,018	)		$	4,328,025
Net income			-				-				-				21,614				21,614
Balance, September 30, 2021			31,650,396			$	3,165			$	123,250,878			$	(118,904,404	)		$	4,349,639
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

See accompanying notes to condensed consolidated financial statements.

RESEARCH FRONTIERS INCORPORATEDCondensed Consolidated Statements of Cash Flows(Unaudited)

		For the nine months ended September 30,
		2022				2021
Cash flows from operating activities:
Net loss		$	(1,853,915	)		$	(1,063,628	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			21,614				22,414
Realized loss on marketable securities			60,143				-
Unrealized loss on marketable securities			-				5,545
Bad debts			151,772				-
ROU asset amortization			109,660				109,963
Change in assets and liabilities:
Royalty receivables			145,335				(754,679	)
Prepaid expenses and other current assets			(73,640	)			(102,183	)
Accounts payable and accrued expenses			(44,889	)			24,959
Deferred revenue			3,586				13,304
Operating lease liability			(135,232	)			(123,539	)
Net cash used in operating activities			(1,615,566	)			(1,867,844	)
Cash flows from investing activities:
Purchases of fixed assets			(1,216	)			(966	)
Purchases of marketable securities			-				(3,433,633	)
Proceeds from sales of marketable securities			2,694,968				650,000
Net cash provided by (used in) investing activities			2,693,752				(2,784,599	)
Cash flows from financing activities:
Proceeds from sale of common stock and warrants			3,450,000				-
Proceeds from exercise of options			-				86,262
Net cash provided by financing activities			3,450,000				86,262
Net increase (decrease) in cash and cash equivalents			4,528,186				(4,566,181	)
Cash and cash equivalents at beginning of period			269,964				4,772,705
Cash and cash equivalents at end of period		$	4,798,150			$	206,524

See accompanying notes to condensed consolidated financial statements.