0001493152-26-008988
SEC filingResearch Frontiers Incorporated reported a net loss of $2.0 million for fiscal year 2025, an increase from a $1.3 million loss in 2024. Revenue remained flat at $1.1 million, while operating expenses totaled $2.6 million and research and development expenses were $609 thousand, resulting in a net operating loss of $2.1 million. The company's financial position shows total assets of $2.3 million, liabilities of $1.3 million, and shareholders' equity of $934 thousand. Cash and cash equivalents decreased by $1.3 million to $664 thousand at year-end, with net cash used in operating activities of $1.3 million. The company continues to rely on licensees for revenue generation, with five licensees accounting for 93% of fee income in 2025. Management indicates existing cash and working capital are sufficient for the foreseeable future based on current operations and assumptions regarding future royalty growth.
Research Frontiers reported a net loss of $2.0 million for fiscal year 2025, compared to a net loss of $1.3 million in 2024, representing a 53.8% increase in losses year-over-year. Revenue remained unchanged at $1.1 million. The company's operating expenses totaled $2.6 million, while research and development expenses were $609 thousand, resulting in a net operating loss of $2.1 million. The accumulated deficit reached $127.6 million as of December 31, 2025. Non-cash accounting charges in 2025 were $0.4 million, primarily from stock option expensing. The company's financial performance reflects ongoing challenges in achieving profitability despite maintaining consistent revenue levels.
Revenue for fiscal year 2025 was $1.1 million, unchanged from the prior year. The company's revenue is entirely dependent on licensees who manufacture and sell products incorporating SPD technology. During 2025, five licensees accounted for 21%, 20%, 20%, 19%, and 13% respectively of fee income recognized, totaling 93% of annual revenue. This represents a concentration risk, as the loss of any significant licensee could materially impact operations. The company noted that during 2025, one European licensee supplying an automotive OEM filed for bankruptcy and ceased operations, affecting royalty recognition during portions of the year. Production was transitioned to another licensee, but the disruption highlights the dependency on licensee financial stability.
The company reported a net operating loss of $2.1 million for fiscal year 2025. Operating expenses of $2.6 million included employee compensation ($1.1 million), professional fees ($270 thousand), directors fees and expenses ($338 thousand), marketing and investor relations ($235 thousand), insurance ($164 thousand), and various other costs. Research and development expenses of $609 thousand included employee compensation ($166 thousand), insurance ($162 thousand), occupancy costs ($249 thousand), and other costs. The company has incurred substantial costs researching and developing SPD technology since inception, contributing to the accumulated deficit of $127.6 million. No gross profit or margin figures were disclosed in the provided data.
Cash and cash equivalents decreased by $1.3 million to $664 thousand at December 31, 2025. Net cash used in operating activities was $1.3 million, primarily driven by the net loss of $2.0 million, adjusted for non-cash items including depreciation and amortization ($12 thousand), share-based compensation ($375 thousand), credit loss expense ($154 thousand), and ROU asset amortization ($174 thousand). Net cash used in investing activities was minimal at $726, while financing activities provided $309 thousand from exercise of options and issuance of common stock and warrants. Total assets were $2.3 million, including current assets of $1.1 million and operating lease ROU assets of $1.0 million. Total liabilities were $1.3 million, with operating lease liabilities comprising $1.0 million. Shareholders' equity was $934 thousand, resulting in working capital of approximately $0.8 million.
Management states that based on current operations, the company expects to have sufficient working capital for the foreseeable future. Based on current operating levels and assumptions regarding future royalty growth, management believes existing cash and working capital are sufficient to fund operations. However, the company acknowledges that actual results may differ due to factors including licensee performance and financial stability, timing of royalty receipts, and macroeconomic conditions. The company anticipates that if cash and cash equivalents become insufficient, additional funding will be required to sustain operations and continue SPD technology research and development activities. The company has never declared or paid cash dividends and does not anticipate doing so in the foreseeable future. Key risks include dependence on licensees, competition in the smart glass market, limited source of SPD film (currently only Gauzy Ltd. produces commercial quantities), and reliance on key personnel.