RESEARCH FRONTIERS INC
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
REFR$0.37-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001493152-24-029910
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001493152-24-044002
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 34 previous paragraphs and 36 current paragraphs.
21 unchanged; 13 reworded; 2 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
The Company recorded $35,152 of other income for the three months ended September 30, 2024 relating to an Employee Retention Credit, a refundable tax credit available under the Coronavirus Aid, Relief, and Economic Securities Act (“CARES Act”) that was designed to keep employees on the payroll during the Covid-19 pandemic.
Current report
The Company recorded $35,152 of other income for the nine months ended September 30, 2024 relating to an Employee Retention Credit, a refundable tax credit available under the Coronavirus Aid, Relief, and Economic Securities Act (“CARES Act”) that was designed to keep employees on the payroll during the COVID-19 pandemic.
Reworded paragraphs (13)
Previous wording
The Company’s fee income from licensing activities for the three months ended June 30, 2024 was $489,594 as compared to $185,040 for the three months ended June 30, 2023. This increase in fee income of $304,554 (165%) was primarily the result of higher royalties from the automotive and aircraft markets as compared to the second quarter of 2023. The Company expects revenue in all market segments to increase further as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market.
Current wording
The Company’s fee income from licensing activities for the three months ended September 30, 2024 was $354,408 as compared to $164,146 for the three months ended September 30, 2023. This increase in fee income of $190,262 (116%) was primarily the result of higher royalties from the automotive and aircraft markets as compared to the third quarter of 2023. The Company expects revenue in all market segments to increase further as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market.
Previous wording
Operating expenses decreased by $87,796 for the three months ended June 30, 2024 to $476,898 from $564,694 for the three months ended June 30, 2023. This decrease is the result of lower legal and professional fees ($50,000), lower directors’ fees and expenses ($19,000), lower investor relations and marketing costs ($25,000), lower patent costs ($8,000) and lower allocated insurance costs ($7,000) partially offset by higher payroll and related costs ($21,000).
Current wording
Operating expenses decreased by $87,769 for the three months ended September 30, 2024 to $454,866 from $542,635 for the three months ended September 30, 2023. This decrease is the result of lower credit loss expense ($75,000), as well as lower marketing and investor relations costs ($22,000), lower patent costs ($21,000) and lower allocated insurance costs ($5,000), partially offset by higher payroll and related costs ($30,000).
Previous wording
Research and development expenditures decreased by $16,261 to $278,571 for the six months ended June 30, 2024 from $294,832 for the six months ended June 30, 2023. This decrease is a result of lower allocated facility costs ($5,000), lower allocated insurance costs ($5,000) as well as lower equipment rental costs ($5,000).
Current wording
Research and development expenditures decreased by $4,073 to $131,246 for the three months ended September 30, 2024 from $135,319 for the three months ended September 30, 2023. This decrease is primarily a result of lower allocated insurance costs ($5,000).
Previous wording
The Company’s net investment income, consisting of interest income, for the three months ended June 30, 2024 was $22,112 as compared to income of $31,614 for the three months ended June 30, 2023 with the change due to lower cash balances available for investment.
Current wording
The Company’s net investment income, consisting of interest income, for the three months ended September 30, 2024 was $29,736 as compared to income of $41,642 for the three months ended September 30, 2023 with the change due to lower cash balances available for investment.
Previous wording
As a consequence of the factors discussed above, the Company’s net loss was $94,022 ($0.00 per common share) for the three months ended June 30, 2024 as compared to net loss of $493,650 ($0.01 per common share) for the three months ended June 30, 2023.
Current wording
As a consequence of the factors discussed above, the Company’s net loss was $166,816 ($0.00 per common share) for the three months ended September 30, 2024 as compared to net loss of $472,166 ($0.01 per common share) for the three months ended September 30, 2023.
Previous wording
Six months ended June 30, 2024 compared to the six months ended June 30, 2023
Current wording
Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023
Previous wording
The Company’s fee income from licensing activities for the six months ended June 30, 2024 was $802,972 as compared to $433,215 for the six months ended June 30, 2023. This increase in fee income of $369,757 (85%) was the result of higher royalties from the automotive, aircraft and architectural markets as compared to the first half of 2023. The Company expects revenue in all market segments to increase further as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market.
Current wording
The Company’s fee income from licensing activities for the nine months ended September 30, 2024 was $1,157,380 as compared to $597,362 for the nine months ended September 30, 2023. This increase in fee income of $560,018 (94%) was the result of higher royalties from the automotive, aircraft and architectural markets as compared to the first nine months of 2023. The Company expects revenue in all market segments to increase further as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market.
Previous wording
Operating expenses decreased by $42,208 for the six months ended June 30, 2024 to $1,110,285 from $1,152,493 for the six months ended June 30, 2023. This decrease is the result of lower payroll and related costs ($43,000), lower investor relations and marketing costs ($25,000) as well as lower allocated insurance costs ($6,000) partially offset by higher directors’ fees ($21,000) and higher foreign withholding costs ($12,000).
Current wording
Operating expenses decreased by $129,977 for the nine months ended September 30, 2024 to $1,565,152 from $1,695,129 for the nine months ended September 30, 2023. This decrease is the result of lower credit loss expense ($70,000) as well as lower investor relations and marketing costs ($47,000), lower payroll and related costs ($13,000) as well as lower patent costs ($24,000), partially offset by higher foreign withholding tax expenses ($24,000).
Previous wording
Research and development expenditures decreased by $16,780 to $128,830 for the three months ended June 30, 2024 from $145,610 for the three months ended June 30, 2023. This decrease is a result of lower allocated insurance costs ($7,000) as well as lower equipment rental costs ($4,000) and lower allocated facility costs ($2,000).
Current wording
Research and development expenditures decreased by $20,333 to $409,817 for the nine months ended September 30, 2024 from $430,150 for the nine months ended September 30, 2023. This decrease is a result of lower allocated insurance costs ($11,000), lower allocated facility costs ($6,000), as well as lower equipment rental costs ($4,000).
Previous wording
The Company’s net investment income, consisting of interest income, for the six months ended June 30, 2024 was $49,258 as compared to income of $57,822 for the six months ended June 30, 2023 with the change due to lower cash balances available for investment.
Current wording
The Company’s net investment income, consisting of interest income, for the nine months ended September 30, 2024 was $78,995 as compared to income of $99,463 for the nine months ended September 30, 2023 with the change due to lower cash balances available for investment.
Previous wording
As a consequence of the factors discussed above, the Company’s net loss was $536,626 ($0.02 per common share) for the six months ended June 30, 2024 as compared to net loss of $956,288 ($0.03 per common share) for the six months ended June 30, 2023.
Current wording
As a consequence of the factors discussed above, the Company’s net loss was $703,442 ($0.02 per common share) for the nine months ended September 30, 2024 as compared to net loss of $1,428,454 ($0.04 per common share) for the nine months ended September 30, 2023.
Previous wording
The Company has primarily utilized its cash, cash equivalents, marketable securities, short-term investments, and the proceeds from its investments to fund its research and development, for marketing initiatives, and for other working capital purposes. The Company’s working capital and capital requirements depend upon numerous factors, including, but not limited to, the results of research and development activities, competitive and technological developments, the timing and costs of patent filings, and the development of new licensees and changes in the Company’s relationship with existing licensees. The degree of dependence of the Company’s working capital requirements on each of the foregoing factors cannot be quantified; increased research and development activities and related costs would increase such requirements; the addition of new licensees may provide additional working capital or working capital requirements, and changes in relationships with existing licensees would have a favorable or negative impact depending upon the nature of such changes.
Current wording
The Company has primarily utilized its cash, cash equivalents, and investments generated from sales of our common stock, proceeds from the exercise of options and warrants, and royalty fees collected to fund its research and development of SPD light valves, for marketing initiatives, and for other working capital purposes. The Company’s working capital and capital requirements depend upon numerous factors, including, but not limited to, the results of research and development activities, competitive and technological developments, the timing and costs of patent filings, and the development of new licensees and changes in the Company’s relationship with existing licensees. The degree of dependence of the Company’s working capital requirements on each of the foregoing factors cannot be quantified; increased research and development activities and related costs would increase such requirements; the addition of new licensees may provide additional working capital or working capital requirements, and changes in relationships with existing licensees would have a favorable or negative impact depending upon the nature of such changes.
Previous wording
During the six months ended June 30, 2024, the Company’s cash and cash equivalents balance decreased by $569,456 as a result of cash used to fund operations of $577,972 partially offset by cash generated from the exercise options of $8,670. As of June 30, 2024, the Company had cash and cash equivalents of approximately $1.9 million, working capital of $2.8 million and total shareholders’ equity of $3.0 million.
Current wording
During the nine months ended September 30, 2024, the Company’s cash and cash equivalents balance decreased by $827,971 as a result of cash used to fund operations of $835,899 partially offset by cash generated from the exercise options of $8,670. As of September 30, 2024, the Company had cash and cash equivalents of approximately $1.6 million, working capital of $2.7 million and total shareholders’ equity of $2.8 million.