Research Frontiers Reports 14% Revenue Decline and Increased Operating Loss for First Half of 2025

Research Frontiers Incorporated reported its financial results for the six months ending June 30, 2025, revealing a fee income of $689,680, a decrease of 14% from $802,972 in the same period of 2024. The company experienced a significant operating loss of $1,054,681, compared to a loss of $585,884 in the prior year. The net loss for the first half of 2025 was $981,513, or $0.03 per share, compared to a net loss of $536,626, or $0.02 per share, in the first half of 2024. The decline in revenue was primarily attributed to lower royalties from the automotive market, exacerbated by the bankruptcy of a significant European licensee.

Operating expenses increased to $1,412,398 for the six months ended June 30, 2025, up from $1,110,285 in the previous year. This rise was driven by higher non-cash compensation costs related to stock options, increased professional fees, and higher credit loss expenses. Research and development expenditures also rose to $331,963, reflecting ongoing investments in the company's SPD technology. The company reported a net interest income of $25,811, down from $49,258 in the prior year, due to lower cash balances available for investment.

As of June 30, 2025, Research Frontiers had total assets of $3,172,806, a decrease from $4,039,647 at the end of 2024. Current assets fell to $1,971,930, primarily due to a reduction in cash and cash equivalents, which stood at $1,274,276, down from $1,994,186. The company’s total liabilities decreased slightly to $1,374,780, while shareholders' equity dropped to $1,798,026 from $2,604,335 at the end of 2024. The accumulated deficit increased to $126,557,736, reflecting the ongoing losses.

Research Frontiers continues to focus on the development and marketing of its SPD technology, which is used in various applications, including automotive and architectural products. The company currently has over 40 licensees worldwide, with a significant portion of its revenue generated from international markets. Despite the challenges faced in the automotive sector, the company anticipates that new car models and other products utilizing its technology will drive future revenue growth. Management expects to maintain sufficient working capital for at least the next 12 months, although they acknowledge the need for potential additional funding to support ongoing operations and development efforts.