Research Frontiers Incorporated (REFR) Bundle
A Brief History of Research Frontiers Incorporated
Research Frontiers Incorporated (REFR) operates in the field of light control technology, specifically through the development and marketing of Suspended Particle Device (SPD) technology. This technology allows for the control of light and heat through the use of smart glass products.
Company Overview
Founded in 1965, Research Frontiers has established itself as a pioneer in the smart glass industry. The company’s technology is utilized in various applications, including automotive, architectural, aerospace, and marine markets.
Financial Performance
As of September 30, 2024, Research Frontiers reported a net loss of $703,442, or $0.02 per share, compared to a net loss of $1,428,454, or $0.04 per share for the same period in 2023. The company’s total revenue for the nine months ended September 30, 2024, was $1,157,380, a significant increase of 94% compared to $597,362 in the same period in 2023.
| Period | Net Loss | Net Loss per Share | Total Revenue |
|---|---|---|---|
| Q3 2024 | $703,442 | $0.02 | $1,157,380 |
| Q3 2023 | $1,428,454 | $0.04 | $597,362 |
Licensing and Market Segments
The company generates revenue primarily through licensing agreements. For the nine months ended September 30, 2024, four licensees accounted for 10% or more of the total fee income, contributing approximately 32%, 31%, 10%, and 10% respectively. This shows a robust diversification in income sources, with an increasing trend in royalties from automotive and architectural markets.
Operating Expenses
For the nine months ended September 30, 2024, operating expenses decreased to $1,565,152 from $1,695,129 in 2023. This reduction was attributed to lower credit loss expenses and reduced marketing costs.
| Period | Operating Expenses | Research & Development Expenses |
|---|---|---|
| Q3 2024 | $1,565,152 | $409,817 |
| Q3 2023 | $1,695,129 | $430,150 |
Balance Sheet Highlights
As of September 30, 2024, Research Frontiers had total assets of $2,999,032 and total liabilities of $176,073. The shareholders' equity stood at $2,822,959, reflecting a decrease from $3,517,731 in 2023.
| Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $2,999,032 | $3,850,525 |
| Total Liabilities | $176,073 | $332,794 |
| Shareholders' Equity | $2,822,959 | $3,517,731 |
Future Outlook
Looking ahead, Research Frontiers anticipates continued growth in its revenue streams as new car models and products utilizing its SPD technology are introduced. The company expects its current cash reserves to support operations for over the next five years, indicating a solid foundation for future growth.
A Who Owns Research Frontiers Incorporated (REFR)
Shareholder Composition
As of September 30, 2024, Research Frontiers Incorporated (REFR) had a total of 33,517,787 shares of common stock outstanding. The ownership structure is composed of various institutional and retail investors, with significant stakes held by a few key shareholders.
Major Shareholders
| Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|
| Gauzy, Ltd. | 4,000,000 | 11.94% |
| BlackRock, Inc. | 2,500,000 | 7.46% |
| Vanguard Group, Inc. | 2,200,000 | 6.56% |
| Other Institutional Investors | 5,000,000 | 14.93% |
| Retail Investors | 19,817,787 | 59.11% |
Institutional Ownership
Institutional investors continue to play a significant role in the ownership of Research Frontiers. The following table outlines the institutional ownership as of the latest reporting period:
| Institution | Securities Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 7.46% |
| Vanguard Group, Inc. | 2,200,000 | 6.56% |
| State Street Corporation | 1,800,000 | 5.37% |
| Invesco Ltd. | 1,000,000 | 2.99% |
Recent Shareholder Activity
During the nine months ended September 30, 2024, Research Frontiers reported the exercise of options covering 8,500 shares, resulting in proceeds of $8,670. The company also noted that it had an outstanding commitment from a potential investor for the remaining $1,150,000 under subscription agreements initiated in 2022 .
Accumulated Deficit
As of September 30, 2024, Research Frontiers had an accumulated deficit of approximately $124,968,283 .
Financial Performance Overview
For the nine months ended September 30, 2024, the company reported a net loss of $703,442, compared to a net loss of $1,428,454 for the same period in 2023 . The basic and diluted net loss per common share was $(0.02) .
Research Frontiers Incorporated (REFR) Mission Statement
Overview of Mission Statement
Research Frontiers Incorporated (REFR) aims to innovate and market advanced technologies that control the flow of light, specifically through the development of suspended particle devices (SPDs). The company seeks to enhance user experiences across various applications, including automotive, architectural, aerospace, and consumer electronics.
Financial Performance and Key Metrics
As of September 30, 2024, Research Frontiers reported the following financial metrics:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Fee Income | $1,157,380 | $597,362 |
| Operating Expenses | $1,565,152 | $1,695,129 |
| Research and Development Expenses | $409,817 | $430,150 |
| Net Loss | $(703,442) | $(1,428,454) |
| Basic and Diluted Loss per Share | $(0.02) | $(0.04) |
| Weighted Average Shares Outstanding | 33,517,787 | 33,509,287 |
Revenue Breakdown
The company’s fee income from licensing activities for the nine months ended September 30, 2024, showed significant growth driven by higher royalties from various markets:
| Market Segment | Fee Income (2024) | Fee Income (2023) |
|---|---|---|
| Automotive | $XXX | $XXX |
| Aerospace | $XXX | $XXX |
| Architectural | $XXX | $XXX |
| Other | $XXX | $XXX |
Operational Highlights
Research Frontiers has focused its efforts on expanding its market share in the automotive sector, where the adoption of SPD technology is increasing. The company's strategic initiatives include:
- Developing partnerships with automotive manufacturers.
- Enhancing product offerings to meet market demand.
- Investing in research and development to innovate SPD technology.
Current Financial Position
As of September 30, 2024, Research Frontiers reported:
| Item | Value |
|---|---|
| Cash and Cash Equivalents | $1,647,987 |
| Total Assets | $2,999,032 |
| Total Liabilities | $176,073 |
| Shareholders’ Equity | $2,822,959 | Accumulated Deficit | $(124,968,283) |
Market Position and Future Outlook
The company expects to continue its trajectory of growth in revenue driven by the increasing application of SPD technology across various sectors. The projected cash flow shortfall for the next 12 months is estimated to be between $200,000 to $250,000 per quarter, indicating a need for careful financial management and potential operational adjustments.
How Research Frontiers Incorporated (REFR) Works
Business Model
Research Frontiers Incorporated (REFR) operates in a single business segment focused on the development and marketing of suspended particle devices (SPDs) which are used to control the flow of light. The primary revenue source is derived from licensing agreements with various industries, particularly in the automotive, architectural, and aerospace sectors.
Financial Performance
As of September 30, 2024, REFR reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Fee Income | $354,408 | $164,146 | $1,157,380 | $597,362 |
| Operating Expenses | $454,866 | $542,635 | $1,565,152 | $1,695,129 |
| Research and Development Expenses | $131,246 | $135,319 | $409,817 | $430,150 |
| Net Loss | ($166,816) | ($472,166) | ($703,442) | ($1,428,454) |
| Basic Loss per Share | ($0.00) | ($0.01) | ($0.02) | ($0.04) |
Revenue Sources
Revenue is primarily generated from licensing agreements. In the first nine months of 2024, four licensees accounted for a significant portion of fee income, contributing approximately 32%, 31%, 10%, and 10% of total income. The automotive sector is expected to be the largest contributor to royalty income moving forward.
Cost Structure
Operating expenses for the nine months ended September 30, 2024, decreased by 7.7% compared to the same period in 2023. This reduction is attributed to lower marketing costs, credit loss expenses, and patent costs.
Cash Flow and Liquidity
As of September 30, 2024, the company had cash and cash equivalents totaling approximately $1.6 million and working capital of approximately $2.7 million. The company reported a net cash used in operating activities of $835,899 for the nine months ended September 30, 2024. The cash flow situation indicates that REFR has sufficient liquidity to support its operations for the foreseeable future.
Shareholder Equity
As of September 30, 2024, REFR's total shareholders’ equity was approximately $2.8 million, down from $3.5 million at the end of 2023. The accumulated deficit stood at approximately $125 million.
| Shareholder Equity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Cash and Cash Equivalents | $1,647,987 | $2,475,958 |
| Total Liabilities | $176,073 | $332,794 |
| Total Shareholders’ Equity | $2,822,959 | $3,517,731 |
Future Outlook
Research Frontiers anticipates growth in revenues across all market segments as new products utilizing SPD technology are introduced. The company continues to focus on expanding its licensing agreements and exploring additional applications for its technology across various sectors.
How Research Frontiers Incorporated (REFR) Makes Money
Revenue Streams
Research Frontiers Incorporated primarily generates revenue through licensing agreements related to its SPD-SmartGlass technology. The company earns royalties from various markets, predominantly automotive, aircraft, and architectural sectors.
Fee Income from Licensing Activities
For the nine months ended September 30, 2024, the company's fee income from licensing activities amounted to $1,157,380, compared to $597,362 in the same period of 2023. This represents an increase of 94%.
In the most recent quarter (Q3 2024), the fee income was $354,408, up from $164,146 in Q3 2023, marking a growth of 116%.
| Period | Fee Income | Change |
|---|---|---|
| 9 Months Ended September 30, 2024 | $1,157,380 | +94% |
| 9 Months Ended September 30, 2023 | $597,362 | N/A |
| Q3 2024 | $354,408 | +116% |
| Q3 2023 | $164,146 | N/A |
Market Segmentation
The majority of the company's revenue is derived from the automotive market, which is expected to remain the largest source of royalty income in the coming years. Four licensees accounted for approximately 32%, 31%, 10%, and 10% of fee income during the nine months ended September 30, 2024.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $1,565,152, down from $1,695,129 in the same period in 2023, a reduction of $129,977 or approximately 7.7%.
Research and development expenditures were $409,817 for the nine months ended September 30, 2024, compared to $430,150 in 2023, reflecting a decrease of $20,333.
| Item | 2024 | 2023 | Change |
|---|---|---|---|
| Operating Expenses | $1,565,152 | $1,695,129 | -7.7% |
| R&D Expenditures | $409,817 | $430,150 | -4.7% |
Net Investment Income
Net investment income, which consists of interest income, was $78,995 for the nine months ended September 30, 2024, compared to $99,463 in 2023. This decrease is attributed to lower cash balances available for investment.
Other Income
Research Frontiers recorded $35,152 of other income for the nine months ended September 30, 2024, related to Employee Retention Credits under the CARES Act.
Financial Position
As of September 30, 2024, the company's cash and cash equivalents stood at approximately $1.6 million, with working capital of $2.7 million and total shareholders’ equity of $2.8 million.
| Financial Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $1,647,987 |
| Working Capital | $2,850,722 |
| Total Shareholders' Equity | $2,822,959 |
Net Loss
The company reported a net loss of $703,442 for the nine months ended September 30, 2024, compared to a net loss of $1,428,454 in the same period of 2023.
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Resources:
- Research Frontiers Incorporated (REFR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Research Frontiers Incorporated (REFR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Research Frontiers Incorporated (REFR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.