Research Frontiers (REFR) 10-Q 4 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 04, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'RESEARCH FRONTIERS INC	'
Entity Central Index Key	'0000793524	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	23,924,465
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$3,637,975	$5,866,123
Short term investments	8,080,845	5,076,930
Royalty receivables, net of reserves of $173,921 in 2014 and 2013	1,221,627	867,162
Prepaid expenses and other current assets	76,593	135,080
Total current assets	13,017,040	11,945,295
Fixed assets, net	151,379	64,365
Deposits and other assets	33,566	22,605
Total assets	13,201,985	12,032,265
Current liabilities:	'	'
Accounts payable	71,411	56,603
Accrued expenses and other	186,189	80,725
Deferred revenue	16,250	25,000
Total current liabilities	273,850	162,328
Shareholders' equity:	'	'
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 23,124,465 and 23,109,665 shares for 2014 and 2013	2,392	2,311
Additional paid-in capital	109,594,372	105,584,606
Accumulated deficit	-96,668,629	-93,716,980
Total shareholders' equity	12,928,135	11,869,937
Total liabilities and shareholders' equity	$13,201,985	$12,032,265

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Consolidated Balance Sheets [Abstract]	'	'
Royalty receivables, reserves	$173,921	$173,921
Capital stock, par value (in dollars per share)	$0.00	$0.00
Capital stock, shares authorized	100,000,000	100,000,000
Capital stock, shares issued	23,124,465	23,109,665
Capital stock, shares outstanding	23,124,465	23,109,665

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements of Operations [Abstract]	'	'	'	'
Fee income	$452,937	$506,692	$1,156,904	$1,735,767
Operating expenses	778,075	1,002,597	3,011,681	3,643,294
Research and development	324,306	424,765	1,123,746	1,455,490
Total Expenses	1,102,381	1,427,362	4,135,427	5,098,784
Operating loss	-649,444	-920,670	-2,978,523	-3,363,017
Net investment income	9,638	9,529	26,874	28,537
Net loss	($639,806)	($911,141)	($2,951,649)	($3,334,480)
Basic and diluted Net loss per common share	($0.03)	($0.04)	($0.13)	($0.15)
Basic and diluted weighted average number of common shares outstanding	23,924,465	22,916,095	23,535,083	22,916,095

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($2,951,649)	($3,334,480)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	22,803	33,459
Stock-based compensation	426,809	1,205,430
Changes in assets and liabilities:	'	'
Royalty receivables	-354,465	-275,800
Prepaid expenses and other assets	47,526	127,014
Deferred revenue	-8,750	38,749
Accounts payable and accrued expenses	120,272	-25,986
Net cash used in operating activities	-2,697,454	-2,231,614
Cash flows from investing activities:	'	'
Purchase of fixed assets	-109,817	-44,539
Change in short term investments	-3,003,915	-6,535
Net cash used in investing activities	-3,113,732	-51,074
Cash flows from financing activities:	'	'
Proceeds from sale of common stock	3,278,250	'
Net proceeds from exercise of options and warrants	304,788	'
Net cash provided by financing activities	3,583,038	'
Net decrease in cash and cash equivalents	-2,228,148	-2,282,688
Cash and cash equivalents at beginning of year	5,866,123	8,390,233
Cash and cash equivalents at end of period	$3,637,975	$6,107,545

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2014
Basis of Presentation [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K relating to Research Frontiers Incorporated (the “Company”) for the fiscal year ended December 31, 2013.
	During the current quarter, it was noted that the Company was applying the expected term of warrants granted in 2009 to certain consultants, rather than the contractual term, which is currently required by GAAP. These warrants were required to be marked-to-market at the end of each reporting period through September 2014. The Company properly used the contractual life in valuing the warrants using the Black-Scholes valuation model for the current period and all prior periods impacted by the mark-to-market of these warrants. The change in the valuation assumption resulted in an increase to previously reported consultant compensation charges included in Operating Expenses in the Company's Consolidated Statement of Operations. The impact of this change to all prior periods is not considered material to each of the periods impacted. As reflecting a cumulative correction for this warrant valuation all in the current period would have been material to the current period, the Company is revising its prior financial presentation herein as follows: (i) for the three months and nine months ended September 30, 2013 consultant compensation charges have been increased by $51,187 and $105,862, respectively, (ii) there is an additional charge of $145,669 through June 30, 2014 which has been included in the nine month operating expenses presented in this filing, and (iii) the Company's balance sheet as of December 31, 2013 has been revised by increasing Additional Paid in Capital and Accumulated Deficit each by $400,006 to reflect the use of this contractual term valuation assumption. This change in valuation had no impact on the Company's use of cash or cash flow.

Business

Business	9 Months Ended
	Sep. 30, 2014
Business [Abstract]	'
Business	'
	Business
	Research Frontiers Incorporated (“Research Frontiers” or the “Company”) operates in a single business segment which is engaged in the development and marketing of technology and devices to control the flow of light. Such devices, often referred to as “light valves” or suspended particle devices (SPDs), use colloidal particles that are either incorporated within a liquid suspension or a film, which is usually enclosed between two sheets of glass or plastic having transparent, electrically conductive coatings on the facing surfaces thereof. At least one of the two sheets is transparent. SPD technology, made possible by a flexible light-control film invented by Research Frontiers, allows the user to instantly and precisely control the shading of glass/plastic manually or automatically. SPD technology has numerous product applications, including: SPD-Smart™ windows, sunshades, skylights and interior partitions for homes and buildings; automotive windows; sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels and navigation systems; aircraft windows; eyewear products; and flat panel displays for electronic products. SPD-Smart light control film is now being developed for, or used in, architectural, automotive, marine, aerospace and appliance applications.
	The Company has historically utilized its cash and the proceeds from the sale of its investments to fund its research and development of SPD light valves, for marketing initiatives, and for other working capital purposes. The Company's working capital and capital requirements depend upon numerous factors, including the results of research and development activities, competitive and technological developments, the timing and cost of patent filings, and the development of new licensees and changes in the Company's relationships with its existing licensees. The degree of dependence of the Company's working capital requirements on each of the forgoing factors cannot be quantified; increased research and development activities and related costs would increase such requirements; the addition of new licensees may provide additional working capital or working capital requirements, and changes in relationships with existing licensees would have a favorable or negative impact depending on the nature of such changes. There can be no assurance that expenditures will not exceed the anticipated amounts or that additional financing, if required, will be available when needed or, if available, that's its terms will be favorable or acceptable to the Company. Eventual success of the Company and generation of positive cash flow will be dependent upon the commercialization of products using the Company's technology by the Company's licensees and payments of continuing royalties on account thereof. To date, the Company has not generated sufficient revenue from its licensees to fund its operations.

Patent_Costs

Patent Costs	9 Months Ended
	Sep. 30, 2014
Patent Costs [Abstract]	'
Patent Costs	'
	Patent Costs
	The Company expenses costs relating to the development, acquisition or enforcement of patents due to the uncertainty of the recoverability of these items.

Revenue_Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2014
Revenue Recognition [Abstract]	'
Revenue Recognition	'
	Revenue Recognition
	The Company has entered into a number of license agreements covering its light-control technology. The Company receives minimum annual royalties under certain license agreements and records fee income on a ratable basis each quarter. In instances when sales of licensed products by its licensees exceed minimum annual royalties, the Company recognizes fee income as the amounts have been earned. Certain of the fees are accrued by, or paid to, the Company in advance of the period in which they are earned resulting in deferred revenue. Such excess amounts are recorded as deferred revenue and recognized into income in future periods as earned.

Fee_Income

Fee Income	9 Months Ended
	Sep. 30, 2014
Fee Income [Abstract]	'
Fee Income	'
	Fee Income
	Fee income represents amounts earned by the Company under various license and other agreements relating to technology developed by the Company. During the first nine months of 2014, one licensee accounted for 10% or more of fee income of the Company; this licensee accounted for approximately 38% of fee income recognized during this period. During the first nine months of 2013, two licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 42% and 13%, respectively of fee income recognized during such period.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2014
Stock-Based Compensation [Abstract]	'
Stock-Based Compensation	'
	Stock-Based Compensation
	GAAP requires that all stock-based compensation be recognized as an expense in the financial statements and that such costs be measured at the fair value of the award.
	The Company has granted options/warrants to consultants. These awards generally vest ratably over 12 to 60 months from the date of grant and the Company charges to operations quarterly the current market value of the options using the Black-Scholes method. During the nine months ended September 30, 2014 and 2013, a charge (benefit) of $31,879 and $114,931, respectively, and during the three months ended September 30, 2014 and 2013, $(33,901) and $42,746, respectively was recorded to operations reflecting the fair value of the options using the Black-Scholes method with the following weighted average assumptions:
			2014					2013
	Risk free interest rate			1.7	%				1.5	%
	Option Life			5.2 years					5.4 years
	Volatility			55	%				63	%
	The Company granted 80,200 fully vested options during the nine months ended September 30, 2013 to employees and recorded share-based compensation of $173,120. The Company valued these grants using the Black-Scholes option pricing model with the following assumptions:
		Risk free interest rate				0.8	%
		Option Life				5 years
		Volatility				71	%
	The Company did not grant any stock options to employees and directors during the nine months ended September 30, 2014.
	In connection with the restricted stock grants to employees and directors, the Company charged $131,643 and $190,576 to operations during the three months ended September 30, 2014 and 2013, respectively and $394,930 and $922,864 was charged to operations during the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, remaining unamortized compensation costs in connection with these restricted stock grants was $364,000 which will be recognized over the next 15 month period.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	Income Taxes
	Since inception, the Company has incurred losses from operations and as a result has not recorded income tax expense. Benefits related to net operating loss carryforwards and deferred items have been fully reserved since it was not more likely than not that the Company would achieve profitable operations.

Equity

Equity	9 Months Ended
	Sep. 30, 2014
Equity [Abstract]	'
Equity	'
	Equity
	In May 2014, under an existing shelf registration statement, the Company sold 750,000 shares of common stock to a current institutional shareholder, Kevin Douglas and his related parties. Net proceeds from the offering were $3,278,250 which the Company intends to use for working capital and general corporate purposes. The Company did not sell any additional equity securities during the nine months ended September 30, 2014 and did not sell any equity securities during the nine months ended September 30, 2013.
	The Company received proceeds of $304,788 during the nine months ended September 30, 2014 in connection with stock issued by the exercise of options and warrants. No options or warrants were exercised during the first nine months of 2013.

Treasury_Stock

Treasury Stock	9 Months Ended
	Sep. 30, 2014
Treasury Stock [Abstract]	'
Treasury Stock	'
	Treasury Stock
	The Company did not repurchase any of its stock during the nine months ended September 30, 2014 and 2013.

Investments

Investments	9 Months Ended
	Sep. 30, 2014
Investments [Abstract]	'
Investments	'
	Investments
	The Company classifies investments in marketable securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classifications. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. Held-to-maturity securities are recorded at cost and are adjusted for the amortization or accretion of premiums or discounts over the life of the related security. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) until realized. In determining realized gains and losses, the cost of securities sold is based on the specific identification method. Interest and dividends on the investments are accrued at the balance sheet date. At September 30, 2014 and December 31, 2013 all investments were classified as held to maturity and consisted of the following:
	Certificates of			30-Sep-14		31-Dec-13
	Deposit		Maturity	Value of Held to Maturity Investment		Value of Held to Maturity Investment
	Investment		Date	(based on cost)		(based on cost)
	$	2,007,997	16-Oct-14	$	2,007,997	$	2,007,997
		2,011,967	16-Oct-14		2,011,967		2,011,967
		1,500,000	27-Aug-15		1,500,419		--
		1,500,000	25-Aug-16		1,500,951		--
		503,761	29-Dec-14		503,761		502,821
		302,256	6-Oct-14		302,256		301,692
		253,494	29-Dec-14		253,494		252,453
				$	8,080,845	$	5,076,930

Fair_Value_Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2014
Fair Value Measurements [Abstract]	'
Fair Value Measurements	'
	Fair Value Measurements
	We value financial instruments using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets or liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
	Financial assets accounted for at fair value on a recurring basis at September 30, 2014 include cash, cash equivalents and short term investments of approximately $11.7 million. These assets are carried at fair value based on quoted market prices for identical securities (Level 1 inputs).

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2014
Stock-Based Compensation [Abstract]	'
Schedule of Assumptions Used to Value Options Granted to Consultants	'
			2014					2013
	Risk free interest rate			1.7	%				1.5	%
	Option Life			5.2 years					5.4 years
	Volatility			55	%				63	%
Schedule of Assumptions Used to Value Options Granted to Employees	'
		Risk free interest rate				0.8	%
		Option Life				5 years
		Volatility				71	%

Investments_Tables

Investments (Tables)	9 Months Ended
	Sep. 30, 2014
Investments [Abstract]	'
Schedule of Investments	'
	Certificates of			30-Sep-14		31-Dec-13
	Deposit		Maturity	Value of Held to Maturity Investment		Value of Held to Maturity Investment
	Investment		Date	(based on cost)		(based on cost)
	$	2,007,997	16-Oct-14	$	2,007,997	$	2,007,997
		2,011,967	16-Oct-14		2,011,967		2,011,967
		1,500,000	27-Aug-15		1,500,419		--
		1,500,000	25-Aug-16		1,500,951		--
		503,761	29-Dec-14		503,761		502,821
		302,256	6-Oct-14		302,256		301,692
		253,494	29-Dec-14		253,494		252,453
				$	8,080,845	$	5,076,930

Basis_of_Presentation_Details

Basis of Presentation (Details) (USD $)	9 Months Ended				3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
				Restatement Adjustment [Member]	Stock Based Compensation Assumptions [Member]	Stock Based Compensation Assumptions [Member]	Stock Based Compensation Assumptions [Member]
Change in Accounting Estimate [Line Items]	'	'	'	'	'	'	'
Stock-based compensation	$426,809	$1,205,430	'	'	$51,187	$145,669	$105,862
Additional paid-in capital	109,594,372	'	105,584,606	400,006	'	'	'
Accumulated deficit	($96,668,629)	'	($93,716,980)	($400,006)	'	'	'

Fee_Income_Details

Fee Income (Details)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Licensee One [Member]	'	'
Product Information [Line Items]	'	'
Percentage of fee income	38.00%	42.00%
Licensee Two [Member]	'	'
Product Information [Line Items]	'	'
Percentage of fee income	'	13.00%

StockBased_Compensation_Schedu

Stock-Based Compensation (Schedule of Assumptions Used to Value Options Granted to Consultants) (Details)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Share-based Goods and Nonemployee Services Transaction [Line Items]	'	'
Risk free interest rate	1.70%	1.50%
Option Life	'5 years 2 months 12 days	'5 years 4 months 24 days
Volatility	55.00%	63.00%

StockBased_Compensation_Schedu1

Stock-Based Compensation (Schedule of Assumptions Used to Value Options Granted to Employees) (Details)	9 Months Ended
	Sep. 30, 2013
Stock-Based Compensation [Abstract]	'
Risk free interest rate	0.80%
Option Life	'5 years
Volatility	71.00%

StockBased_Compensation_Narrat

Stock-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Unamortized compensation costs	$364,000	'	$364,000	'
Unamortized compensation costs, period for recognition	'	'	'15 months	'
Consultant [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Charge/(benefit) recorded	-33,901	42,746	31,879	114,931
Restricted Stock [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Charge/(benefit) recorded	131,643	190,576	394,930	922,864
Employee Stock Option [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Number of options granted	'	'	'	80,200
Charge/(benefit) recorded	'	'	'	$173,120
Minimum [Member] | Consultant [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Award vesting period	'	'	'12 months	'
Maximum [Member] | Consultant [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Award vesting period	'	'	'60 months	'

Equity_Details

Equity (Details) (USD $)	1 Months Ended	9 Months Ended
	31-May-14	Sep. 30, 2014	Sep. 30, 2013
Equity [Abstract]	'	'	'
Shares issued	750,000	'	'
Proceeds from sale of common stock	$3,278,250	$3,278,250	'
Net proceeds from exercise of options and warrants	'	$304,788	'

Investments_Details

Investments (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Certificates of Deposit [Member]	'	'
Schedule of Held-to-maturity Securities [Line Items]	'	'
Value of Held to Maturity Investments (based on cost)	$8,080,845	$5,076,930
Certificate Of Deposits One [Member]	'	'
Schedule of Held-to-maturity Securities [Line Items]	'	'
Certificates of Deposit Investment	2,007,997	'
Maturity Date	16-Oct-14	'
Value of Held to Maturity Investments (based on cost)	2,007,997	2,007,997
Certificate Of Deposits Two [Member]	'	'
Schedule of Held-to-maturity Securities [Line Items]	'	'
Certificates of Deposit Investment	2,011,967	'
Maturity Date	16-Oct-14	'
Value of Held to Maturity Investments (based on cost)	2,011,967	2,011,967
Certificate Of Deposits Three [Member]	'	'
Schedule of Held-to-maturity Securities [Line Items]	'	'
Certificates of Deposit Investment	1,500,000	'
Maturity Date	27-Aug-15	'
Value of Held to Maturity Investments (based on cost)	1,500,419	'
Certificate Of Deposits Four [Member]	'	'
Schedule of Held-to-maturity Securities [Line Items]	'	'
Certificates of Deposit Investment	1,500,000	'
Maturity Date	25-Aug-16	'
Value of Held to Maturity Investments (based on cost)	1,500,951	'
Certificate Of Deposits Five [Member]	'	'
Schedule of Held-to-maturity Securities [Line Items]	'	'
Certificates of Deposit Investment	503,761	'
Maturity Date	29-Dec-14	'
Value of Held to Maturity Investments (based on cost)	503,761	502,821
Certificate of Deposits Six [Member]	'	'
Schedule of Held-to-maturity Securities [Line Items]	'	'
Certificates of Deposit Investment	302,256	'
Maturity Date	6-Oct-14	'
Value of Held to Maturity Investments (based on cost)	302,256	301,692
Certificate of Deposits Seven [Member]	'	'
Schedule of Held-to-maturity Securities [Line Items]	'	'
Certificates of Deposit Investment	253,494	'
Maturity Date	29-Dec-14	'
Value of Held to Maturity Investments (based on cost)	$253,494	$252,453

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Sep. 30, 2014
In Millions, unless otherwise specified
Fair Value Measurements [Abstract]	'
Financial assets at fair value	$11.70