Research Frontiers Reports First Quarter 2025 Financial Results and Will Host a Conference Call at 4:30p.m. Today
- Royalty income increased 79% YoY to $559,776 in Q1 2025
- Automotive royalties grew 128% YoY and 267% QoQ
- Net loss reduced by 60% to $177,687 in Q1 2025
- Strong financial position with $1.4M cash, $2.3M working capital, and no debt
- Expected working capital sufficiency for next 5 years
- Expanded production from Ferrari and Cadillac using SPD-SmartGlass
- Company still operating at a loss despite improvements
- Heavy dependence on automotive sector for revenue growth
Insights
Research Frontiers shows impressive 79% YoY royalty growth, 60% reduced losses, and expanding luxury auto partnerships while maintaining debt-free status.
Research Frontiers has delivered remarkable financial improvement in Q1 2025, with
The company's SPD-SmartGlass technology—which enables precise control of tint levels in glass—is gaining significant traction with luxury automakers. Ferrari and Cadillac have expanded production of vehicles incorporating this technology, while Mercedes recently showcased a new luxury van featuring an innovative SPD/PDLC combination across
Financial metrics show substantial progress toward profitability. The net loss decreased
The balance sheet remains robust with
Beyond automotive, the company is seeing growth in aircraft applications and anticipates further expansion with a retrofit application for architectural markets later this year. While the percentage growth is impressive, it's worth noting the absolute revenue figures remain modest for a public company. However, as a royalty-based business with minimal capital requirements, Research Frontiers requires less scale to achieve profitability than manufacturing operations would.
The expanding OEM relationships and diversification across multiple markets suggest the company may be approaching an inflection point where royalty growth consistently outpaces operating expenses, potentially leading to sustainable profitability if current adoption trends continue.
WOODBURY, N.Y., May 08, 2025 (GLOBE NEWSWIRE) -- Research Frontiers Inc. (Nasdaq: REFR) announced its financial results for its first 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, May 8, 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, May 9, 2025 for 90 days at https://smartglass-ir.com |
Key Comments:
| 1. | Strong Revenue Growth in the Automotive and Aircraft Markets Research Frontiers royalty income increased by |
| 2. | Expansion of Product Pipeline and Acceleration of Use of SPD by Ferrari and Cadillac. Higher royalties from the automotive market came primarily from Ferrari and Cadillac, both of which expanded production in the first quarter of 2025 of vehicles using the Company’s SPD-SmartGlass technology. Strong sales from these OEMS are also expected in the second quarter of 2025. Mercedes also debuted a new luxury van at the Shanghai Auto Show in April 2025, featuring new and innovative side windows with an SPD/PDLC combination of smartglass used across |
| 3. | Operational Efficiencies and Financial Stability. As a result of this rising revenue, this reduced the Company’s net loss to |
"Our strong first quarter results demonstrate the accelerating adoption of our SPD-SmartGlass technology, particularly in the automotive sector, with higher use of SPD-SmartGlass compared to last year by Ferrari and Cadillac," said Joseph M. Harary, President and CEO of Research Frontiers. "The significant growth in royalty income, combined with our operational efficiencies and our debt-free status, positions us well for continued success and brings us closer to profitability. With the expected launch of our retrofit application in the architectural market later this year, and the addition of new car and aircraft models, and expansion of use of SPD in automotive beyond sunroofs where we currently dominate, we expect further growth across all market segments."
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
| March 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,352,805 | $ | 1,994,186 | ||||
| Royalties receivable, net of reserves of | 969,059 | 658,213 | ||||||
| Prepaid expenses and other current assets | 198,678 | 93,490 | ||||||
| Total current assets | 2,520,542 | 2,745,889 | ||||||
| Fixed assets, net | 12,082 | 15,052 | ||||||
| Operating lease ROU assets | 1,179,396 | 1,222,640 | ||||||
| Deposits and other assets | 56,066 | 56,066 | ||||||
| Total assets | $ | 3,768,086 | $ | 4,039,647 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of operating lease liability | $ | 133,811 | $ | 129,875 | ||||
| Accounts payable | 13,304 | 85,825 | ||||||
| Accrued expenses | 63,593 | 53,327 | ||||||
| Total current liabilities | 210,708 | 269,027 | ||||||
| Operating lease liability, net of current portion | 1,130,730 | 1,166,285 | ||||||
| Total liabilities | 1,341,438 | 1,435,312 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, par value | 3,365 | 3,365 | ||||||
| Additional paid-in capital | 128,177,193 | 128,177,193 | ||||||
| Accumulated deficit | (125,753,910 | ) | (125,576,223 | ) | ||||
| Total shareholders’ equity | 2,426,648 | 2,604,335 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,768,086 | $ | 4,039,647 | ||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Operations
(Unaudited)
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Fee income | $ | 559,776 | $ | 313,378 | ||||
| Operating expenses | 636,476 | 633,387 | ||||||
| Research and development | 162,877 | 149,741 | ||||||
| Total expenses | 799,353 | 783,128 | ||||||
| Operating loss | (239,577 | ) | (469,750 | ) | ||||
| Net investment income | 14,533 | 27,146 | ||||||
| Other income | 47,357 | - | ||||||
| Net loss | $ | (177,687 | ) | $ | (442,604 | ) | ||
| Basic and diluted net loss per common share | $ | (0.01 | ) | $ | (0.01 | ) | ||
| Weighted average number of common shares outstanding | 33,648,221 | 33,510,408 | ||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
For the three months ended March 31, 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 | - | - | - | (442,604 | ) | (442,604 | ) | |||||||||||||
| Balance, March 31, 2024 | 33,517,787 | $ | 3,352 | $ | 127,787,890 | $ | (124,707,445 | ) | $ | 3,083,797 | ||||||||||
| Balance, January 1, 2025 | 33,648,221 | $ | 3,365 | $ | 128,177,193 | $ | (125,576,223 | ) | $ | 2,604,335 | ||||||||||
| Net loss | - | - | - | (177,687 | ) | (177,687 | ) | |||||||||||||
| Balance, March 31, 2025 | 33,648,221 | $ | 3,365 | $ | 128,177,193 | $ | (125,753,910 | ) | $ | 2,426,648 | ||||||||||
RESEARCH FRONTIERS INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (177,687 | ) | $ | (442,604 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 3,080 | 6,449 | ||||||
| ROU asset amortization | 43,244 | 35,743 | ||||||
| Change in assets and liabilities: | ||||||||
| Royalty receivables | (310,846 | ) | 46,621 | |||||
| Prepaid expenses and other assets | (105,188 | ) | (143,987 | ) | ||||
| Accounts payable and accrued expenses | (62,255 | ) | 157,437 | |||||
| Operating lease liability | (31,619 | ) | (50,779 | ) | ||||
| Net cash used in operating activities | (641,271 | ) | (391,120 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of fixed assets | (110 | ) | (50 | ) | ||||
| Net cash used in investing activities | (110 | ) | (50 | ) | ||||
| 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 | (641,381 | ) | (382,500 | ) | ||||
| Cash and cash equivalents at beginning of year | 1,994,186 | 2,475,958 | ||||||
| Cash and cash equivalents at end of year | $ | 1,352,805 | $ | 2,093,458 | ||||
FAQ
What were Research Frontiers (REFR) Q1 2025 financial results?
How much did REFR's automotive royalties grow in Q1 2025?
What is Research Frontiers' (REFR) current financial position?
Which automotive companies are using Research Frontiers' SPD-SmartGlass technology?
What are Research Frontiers' (REFR) growth expectations for 2025?
