Research Frontiers Inc. Files Q2 2024 10-Q

TL;DR

RFNT 10-Q filed: Q2 2024 financials out, check for patent licensing updates.

AI Summary

Research Frontiers Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company, which is primarily involved in patent ownership and licensing within the patent owners & lessors sector. Specific financial figures and operational highlights for the second quarter of 2024 are presented.

Why It Matters

This filing provides investors and stakeholders with the latest financial health and strategic direction of Research Frontiers Inc., crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative events indicated in the provided snippet.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20240801 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Research Frontiers Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• 20240801 (date) — Filing date
• Woodbury, NY (location) — Company business and mailing address

FAQ

Key Financial Figures

• $0.0001 — nge on Which Registered Common Stock, $0.0001 Par Value The NASDAQ Stock Market S

Filing Documents

• form10-q.htm (10-Q) — 378KB
• ex31-1.htm (EX-31.1) — 16KB
• ex32-1.htm (EX-32.1) — 8KB
• 0001493152-24-029910.txt ( ) — 2068KB
• refr-20240630.xsd (EX-101.SCH) — 19KB
• refr-20240630_cal.xml (EX-101.CAL) — 30KB
• refr-20240630_def.xml (EX-101.DEF) — 66KB
• refr-20240630_lab.xml (EX-101.LAB) — 163KB
• refr-20240630_pre.xml (EX-101.PRE) — 126KB
• form10-q_htm.xml (XML) — 175KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12-15

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 15

Controls and Procedures

Item 4. Controls and Procedures 15 -1 6

- OTHER INFORMATION

PART II - OTHER INFORMATION

Exhibits

Item 6. Exhibits 16

SIGNATURES

SIGNATURES 17 2 RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Balance Sheets June 30, 2024 (Unaudited) December 31, 2023 (See Note 1) Assets Current assets: Cash and cash equivalents $ 1,906,502 $ 2,475,958 Royalties receivable, net of reserves of $ 1,253,450 in 2024 and 2023, respectively 1,078,500 1,003,404 Prepaid expenses and other current assets 204,682 96,784 Total current assets 3,189,684 3,576,146 Fixed assets, net 26,801 39,598 Operating lease ROU assets 107,229 178,715 Deposits and other assets 56,066 56,066 Total assets $ 3,379,780 $ 3,850,525 Liabilities and Shareholders' Equity Current liabilities: Current portion of operating lease liability $ 163,825 $ 212,359 Accounts payable 60,968 50,880 Accrued expenses 40,212 14,192 Deferred revenue 125,000 - Total current liabilities 390,005 277,431 Operating lease liability, net of current portion - 55,363 Total liabilities 390,005 332,794 Shareholders' equity: Common stock, par value $ 0.0001 per share; authorized 100,000,000 shares, issued and outstanding 33,517,787 in 2024 and 33,509,287 in 2023 3,352 3,351 Additional paid-in capital 127,787,890 127,779,221 Accumulated deficit ( 124,801,467 ) ( 124,264,841 ) Total shareholders' equity 2,989,775 3,517,731 Total liabilities and shareholders' equity $ 3,379,780 $ 3,850,525 See accompanying notes to condensed consolidated financial statements. 3 RESEARCH FRONTIERS INCORPORATED Condensed Consolidated Statements of Operations (Unaudited) 2024 2023 2024 2023 Six months ended June 30, Three months ended June 30, 2024 2023 2024 2023 Fee income $ 802,972 $ 433,215 $ 489,594 $ 185,040 Operating expenses 1,110,285 1,152,493 476,898 564,694 Research and development 278,571 294,832 128,830 145,610 Total expenses 1,388,856 1,447,325 605,728 710,304 Operating loss ( 585,884 ) ( 1,014,110 ) ( 116,134 ) ( 525,264

financial statements

financial statements. 7 In the event that we are unable to generate sufficient cash from our operating activities or raise additional funds, we may be required to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which could have a material adverse effect on our business, operating results, financial condition and long-term prospects. The Company may seek to obtain additional funding through future equity issuances. There can be no assurance as to the availability or terms upon which such financing and capital might be available. The eventual success of the Company and generation of positive cash flow will be dependent upon the commercialization of products using the Company's technology by the Company's licensees and payments of continuing royalties on account thereof. To date, the Company has not generated sufficient revenue from its licensees to fund its operations. Note 3. Patent Costs The Company expenses costs relating to the development, acquisition or enforcement of patents due to the uncertainty of the recoverability of these items. Note 4. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers (Topic 606 ). The standard provides a single comprehensive revenue recognition model for all contracts with customers and supersedes existing revenue recognition guidance. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. ASC 606 follows a five-step approach to determining revenue recognition including: 1) Identification of the contract; 2) Identification of the performance obligations; 3) Determina

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