Research Frontiers Incorporated reported significant financial developments in its 10-Q filing for the third quarter of 2024. The company, which specializes in the development and marketing of suspended particle device (SPD) technology, experienced a notable increase in fee income, with total revenue for the nine months ended September 30, 2024, reaching $1,157,380, compared to $597,362 for the same period in 2023, marking a 94% increase. For the third quarter alone, fee income was $354,408, up 116% from $164,146 in Q3 2023. This growth is attributed to higher royalties from the automotive and aircraft markets.
Despite the increase in revenue, Research Frontiers reported a net loss of $703,442 for the nine months ended September 30, 2024, a significant improvement from the net loss of $1,428,454 in the same period of the previous year. The net loss for Q3 2024 was $166,816, compared to $472,166 in Q3 2023. The operating loss also decreased, with an operating loss of $817,589 for the nine months ended September 30, 2024, down from $1,527,917 in the prior year.
Total expenses for the nine months ended September 30, 2024, were $1,974,969, a reduction from $2,125,279 in the same period in 2023. This decrease was driven by lower credit loss expenses and reduced marketing costs. Research and development expenditures also saw a slight decline, totaling $409,817 for the nine months ended September 30, 2024, compared to $430,150 in the previous year.
As of September 30, 2024, the company reported cash and cash equivalents of approximately $1.6 million, down from $2.5 million at the end of 2023. Total current assets decreased to $2.9 million from $3.6 million, while total liabilities also fell, resulting in total shareholders’ equity of approximately $2.8 million.
The company continues to rely on its licensing agreements, primarily from the automotive sector, which is expected to be a significant source of future royalty income. However, it faces operational challenges if it cannot generate sufficient cash from its activities or secure additional funding. The company has indicated that its current working capital is expected to support operations for at least the next 12 months, although it anticipates a projected quarterly cash flow shortfall of approximately $200,000 to $250,000.
About RESEARCH FRONTIERS INC
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