RESEARCH FRONTIERS INC
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
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, 2025 · Filed Nov 6, 2025
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 2025-06-30; filed 2025-08-07.
0001641172-25-022577
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001493152-25-021062
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 31 previous paragraphs and 32 current paragraphs.
17 unchanged; 12 reworded; 2 added; 1 removed; 1 previous and 1 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
Operating expenses increased by $66,776 for the three months ended September 30, 2025 to $521,642 from $454,866 for the three months ended September 30, 2024. This increase is primarily the result of higher marketing and investor relations costs ($81,000) and higher professional fees ($15,000) partially offset by lower credit loss allowances ($25,000) and lower insurance costs ($7,000)
Current report
Research and development expenditures increased by $10,500 to $141,746 for the three months ended September 30, 2025 from $131,246 for the three months ended September 30, 2024. This increase is primarily a result of higher allocated occupancy costs ($21,000) partially offset by lower insurance costs ($7,000) as well as lower depreciation and amortization ($3,000).
Removed paragraphs (1)
Previous report
Research and development expenditures increased by $53,392 to $331,963 for the six months ended June 30, 2025 from $278,571 for the six months ended June 30, 2024. This increase is primarily a result of higher allocated occupancy costs ($37,000) as well as higher non-cash compensation cost of $10,000 recorded during the period related to a grant of stock options to the Company’s employees.
Reworded paragraphs (12)
Previous wording
The majority of the Company’s fee income comes from the activities of several licensees participating in the automotive market. The Company currently believes that the automotive market will be the largest source of its royalty income over the next several years. The Company’s royalty income from this market may be influenced by numerous factors including various trends affecting demand in the automotive industry and the rate of introduction of new technology in OEM product lines. In addition to these macro factors, the Company’s royalty income from the automotive market could also be influenced by specific factors such as whether the Company’s SPD-SmartGlass technology appears as standard equipment or as an option on a particular vehicle, the number of additional vehicle models that SPD-SmartGlass appears on, the size of each window on a vehicle and the number of windows on a vehicle that use SPD-SmartGlass, fluctuations in the total number of vehicles produced by a manufacturer, and in the percentage of new car models produced with SPD-SmartGlass, and changes in pricing or exchange rates. Certain license fees, which are paid to the Company in advance of the accounting period in which they are earned resulting in the recognition of deferred revenue for the current accounting period, will be recognized as fee income in future periods. Also, licensees offset some or all of their royalty payments on sales of licensed products for a given period by applying these advance payments towards such earned royalty payments.
Current wording
The majority of the Company’s fee income comes from the activities of several licensees participating in the automotive market. The Company currently believes that the automotive market and the architectural market will be the largest source of its royalty income over the next several years. The Company’s royalty income from this market may be influenced by numerous factors including various trends affecting demand in the automotive industry and the rate of introduction of new technology in OEM product lines. In addition to these macro factors, the Company’s royalty income from the automotive market could also be influenced by specific factors such as whether the Company’s SPD-SmartGlass technology appears as standard equipment or as an option on a particular vehicle, the number of additional vehicle models that SPD-SmartGlass appears on, the size of each window on a vehicle and the number of windows on a vehicle that use SPD-SmartGlass, fluctuations in the total number of vehicles produced by a manufacturer, and in the percentage of new car models produced with SPD-SmartGlass, and changes in pricing or exchange rates. Certain license fees, which are paid to the Company in advance of the accounting period in which they are earned resulting in the recognition of deferred revenue for the current accounting period, will be recognized as fee income in future periods. Also, licensees offset some or all of their royalty payments on sales of licensed products for a given period by applying these advance payments towards such earned royalty payments.
Previous wording
The Company’s fee income from licensing activities for the three months ended June 30, 2025 was $129,904 as compared to $489,594 for the three months ended June 30, 2024. This decrease in fee income of $359,690 (73%) was primarily the result of lower royalties from the automotive market as compared to the second quarter of 2024. The Company expects revenue in all market segments to increase as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market. The Company has not booked any royalty income in the second quarter of 2025 from one of its European licensees that has in the past supplied Ferrari with SPD-SmartGlass sunroofs because of workforce reductions and a bankruptcy filing by this licensee in Europe. This has caused the reported royalty income in the second quarter of 2025 to be lower. In anticipation of this, Ferrari has fully transitioned its business for SPD-SmartGlass to another one of the Company’s existing licensees in Europe, and production by this additional licensee for Ferrari has already commenced.
Current wording
The Company’s fee income from licensing activities for the three months ended September 30, 2025 was $359,444 as compared to $354,408 for the three months ended September 30, 2024. This increase in fee income was primarily the result of higher royalties from the automotive market as compared to the third quarter of 2024 partially offset by lower royalties from the aircraft market. The Company expects revenue in all market segments to increase as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market. The Company has not booked any royalty income in the third quarter of 2025 from one of its European licensees that has in the past supplied Ferrari with SPD-SmartGlass sunroofs because of workforce reductions and a bankruptcy filing by this licensee in Europe. This has caused the reported royalty income in 2025 to be lower. In anticipation of this, Ferrari has fully transitioned its business for SPD-SmartGlass to another one of the Company’s existing licensees in Europe, and production by this additional licensee for Ferrari has already commenced.
Previous wording
The Company’s net interest income, consisting of interest income, for the three months ended June 30, 2025 was $11,278 as compared to income of $22,112 for the three months ended June 30, 2024 with the change due to lower cash balances available for investment.
Current wording
The Company’s net interest income, consisting of interest income, for the three months ended September 30, 2025 was $5,436 as compared to income of $29,736 for the three months ended September 30, 2024 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 $803,826 ($0.02 per common share) for the three months ended June 30, 2025 as compared to a net loss of $94,022 ($0.00 per common share) for the three months ended June 30, 2024.
Current wording
As a consequence of the factors discussed above, the Company’s net loss was $298,508 ($0.01 per common share) for the three months ended September 30, 2025 as compared to a net loss of $166,816 ($0.00 per common share) for the three months ended September 30, 2024.
Previous wording
Six months ended June 30, 2025 compared to the six months ended June 30, 2024
Current wording
Nine months ended September 30, 2025 compared to the Nine months ended September 30, 2024
Previous wording
The Company’s fee income from licensing activities for the six months ended June 30, 2025 was $689,680 as compared to $802,972 for the six months ended June 30, 2024. This decrease in fee income of $113,292 (14%) was primarily the result of lower royalties from the automotive market as compared to the first six months of 2024. The Company expects revenue in all market segments to increase as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market. The Company has not booked any royalty income in the second quarter of 2025 from one of its European licensees that has in the past supplied Ferrari with SPD-SmartGlass sunroofs because of workforce reductions and a bankruptcy filing by this licensee in Europe. This has caused the reported royalty income in the second quarter of 2025 to be lower. In anticipation of this, Ferrari has fully transitioned its business for SPD-SmartGlass to another one of the Company’s existing licensees in Europe, and production by this additional licensee for Ferrari has already commenced.
Current wording
The Company’s fee income from licensing activities for the nine months ended September 30, 2025 was $1,049,125 as compared to $1,157,380 for the nine months ended September 30, 2024. This decrease in fee income was primarily the result of lower royalties from the automotive and aircraft markets as compared to the first nine months of 2024 and one-time royalty payments received by the Company in 2024. The Company expects revenue in all market segments to increase as new car models and other products using the Company’s SPD-SmartGlass technology are introduced into the market. The Company has not booked any royalty income in the second and third quarters of 2025 from one of its European licensees that has in the past supplied Ferrari with SPD-SmartGlass sunroofs because of workforce reductions and a bankruptcy filing by this licensee in Europe. This has caused the reported royalty income in 2025 to be lower. In anticipation of this, Ferrari has fully transitioned its business for SPD-SmartGlass to another one of the Company’s existing licensees in Europe, and production by this additional licensee for Ferrari has already commenced.
Previous wording
Operating expenses increased by $302,113 for the six months ended June 30, 2025 to $1,412,398 from $1,110,285 for the six months ended June 30, 2024. This increase is the result of higher non-cash compensation cost of $165,000 recorded during the period related to a grant of stock options to the Company’s employees and directors, higher professional fees ($19,000) as well as higher occupancy costs ($10,000) and higher credit loss expense ($124,000), partially offset by lower marketing and investor relations costs ($20,000).
Current wording
Operating expenses increased by $368,889 for the nine months ended September 30, 2025 to $1,934,041 from $1,565,152 for the nine months ended September 30, 2024. This increase is the result of higher non-cash compensation cost ($165,000) recorded during the period related to a grant of stock options to the Company’s employees and directors, higher marketing and investor relations costs ($62,000), higher compensation costs ($18,000), higher professional fees ($33,000), higher occupancy costs ($18,000) and higher credit loss expense ($99,000), partially offset by lower legal fees ($32,000), insurance ($14,000) and marketing and investor relations costs ($21,000).
Previous wording
Research and development expenditures increased by $40,256 to $169,086 for the three months ended June 30, 2025 from $128,830 for the three months ended June 30, 2024. This increase is primarily a result of higher allocated occupancy costs ($19,000), higher materials and other costs ($14,000) as well as higher non-cash compensation cost of $10,000 recorded during the period related to a grant of stock options to the Company’s employees.
Current wording
Research and development expenditures increased by $63,892 to $473,709 for the nine months ended September 30, 2025 from $409,817 for the nine months ended September 30, 2024. This increase is primarily a result of higher allocated occupancy costs ($58,000), higher materials costs ($16,000), as well as higher non-cash compensation costs ($10,000) recorded during the period related to a grant of stock options to the Company’s employees, partially offset by insurance costs ($13,000) and lower depreciation and amortization ($8,000).
Previous wording
The Company’s net interest income, consisting of interest income, for the six months ended June 30, 2025 was $25,811 as compared to income of $49,258 for the six months ended June 30, 2024 with the change due to lower cash balances available for investment.
Current wording
The Company’s net interest income, consisting of interest income, for the nine months ended September 30, 2025 was $31,247 as compared to income of $78,995 for the nine months ended September 30, 2024 with the change due to lower cash balances available for investment.
Previous wording
The Company recorded $47,357 of other income for the six months ended June 30, 2025 relating to an Employee Retention Credit, a refundable tax credit available under the CARES Act that was designed to keep employees on the payroll during the Covid-19 pandemic.
Current wording
The Company recorded $47,357 and $35,152 of other income for the nine months ended September 30, 2025 and 2024, respectively, relating to an Employee Retention Credit, a refundable tax credit available under the CARES Act that was designed to keep employees on the payroll during the Covid-19 pandemic.
Previous wording
As a consequence of the factors discussed above, the Company’s net loss was $981,513 ($0.03 per common share) for the six months ended June 30, 2025 as compared to net loss of $536,626 ($0.02 per common share) for the six months ended June 30, 2024.
Current wording
As a consequence of the factors discussed above, the Company’s net loss was $1,280,021 ($0.04 per common share) for the nine months ended September 30, 2025 as compared to net loss of $703,442 ($0.02 per common share) for the nine months ended September 30, 2024.
Previous wording
During the six months ended June 30, 2025, the Company’s cash and cash equivalents balance decreased by $719,910 as a result of cash used to fund operations of $719,701 and cash used to purchase fixed assets of $209. As of June 30, 2025, the Company had cash and cash equivalents of approximately $1.3 million, working capital of $1.7 million and total shareholders’ equity of $1.8 million.
Current wording
During the nine months ended September 30, 2025, the Company’s cash and cash equivalents balance decreased by $863,796 as a result of cash used to fund operations of $863,214 and cash used to purchase fixed assets of $582. As of September 30, 2025, the Company had cash and cash equivalents of approximately $1.1 million, working capital of $1.4 million and total shareholders’ equity of $1.5 million.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The Company recorded $35,152 of other income for the three months ended September 30, 2024, respectively, relating to an Employee Retention Credit, a refundable tax credit available under the CARES Act that was designed to keep employees on the payroll during the Covid-19 pandemic. No such credits were received during the three-months ended September 30, 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Operating expenses increased by $299,024 for the three months ended June 30, 2025 to $775,922 from $476,898 for the three months ended June 30, 2024. This increase is primarily the result of higher non-cash compensation cost ($165,000) recorded during the period related to a grant of stock options to the Company’s employees and directors as well as higher credit loss expense ($124,000).