Research Frontiers(REFR) - 2021 Q3 - Quarterly Report

Financial Performance - The Company's fee income from licensing activities for the three months ended September 30, 2021 was $723,465, a $557,837 increase from $165,628 for the same period in 2020[72]. - For the nine months ended September 30, 2021, the Company's fee income from licensing activities was $1,050,526, representing a $352,612 increase from $697,914 for the same period in 2020[77]. - The Company's net income for the three months ended September 30, 2021 was $21,614, compared to a net loss of $434,223 for the same period in 2020[76]. Operating Expenses - Operating expenses for the three months ended September 30, 2021 increased to $571,024 from $472,424, an increase of $98,600[73]. - Research and development expenditures decreased to $135,215 for the three months ended September 30, 2021 from $136,649 for the same period in 2020[74]. Cash Flow and Liquidity - The Company's cash and cash equivalents balance decreased by $1,788,093 during the nine months ended September 30, 2021, primarily due to cash used for operations of $1,873,389[84]. - As of September 30, 2021, the Company had cash and cash equivalents of $2,984,612 and working capital of $4,220,256[84]. - Current cash and cash equivalents are expected to fund operations until mid-2023[86]. - The Company has not generated sufficient revenue from its licensees to fully fund its operations[86]. Future Outlook - The Company expects the automotive market to be the largest source of its royalty income over the next several years, influenced by various trends affecting demand[67]. - The Company anticipates generating additional royalty income from the introduction of new car and aircraft models, as well as growth in the marine industry and architectural projects[68]. - Future success and positive cash flow will depend on the commercialization of products by licensees and ongoing royalty payments[86]. Other Income and Market Risk - The Company recorded $202,052 as other income for the nine months ended September 30, 2020, representing the portion of the PPP loan estimated to be forgiven[81]. - There has been no material change in the disclosure regarding market risk since the last Annual Report[87].