Research Frontiers (REFR) 10-Q 8 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 08, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	RESEARCH FRONTIERS INC
Entity Central Index Key	0000793524
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,033,443
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 7,298,670	$ 2,969,416
Royaltiesreceivable, net of reserves of $1,117,441 in 2019 and $1,094,774 in 2018	772,790	689,677
Prepaid expenses and other current assets	102,472	52,729
Total current assets	8,173,932	3,711,822
Fixed assets, net	287,108	313,177
Operating lease ROU assets	854,582
Deposits and other assets	33,567	33,567
Total assets	9,349,189	4,058,566
Current liabilities:
Current portion of operating lease liability	159,017
Accounts payable	27,371	133,486
Accrued expenses and other	71,709	273,606
Deferred revenue	35,902	50,570
Total current liabilities	293,999	457,662
Operating lease liability, net of current portion	894,510
Warrant liability		501,414
Total liabilities	1,188,509	959,076
Shareholders' equity:
Commonstock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,033,443 in 2019 and 27,665,211in 2018	3,103	2,767
Additional paid-in capital	122,002,886	114,787,657
Accumulated deficit	(113,845,309)	(111,690,934)
Total shareholders' equity	8,160,680	3,099,490
Total liabilities and shareholders' equity	$ 9,349,189	$ 4,058,566

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Royalties receivables, reserves	$ 1,117,441	$ 1,094,774
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	31,033,443	27,665,211
Common stock, shares outstanding	31,033,443	27,665,211

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Fee income	$ 301,035	$ 324,853	$ 719,692	$ 758,122
Operating expenses	939,355	645,960	1,690,520	1,655,785
Research and development	313,981	250,824	543,944	469,440
Total Expenses	1,253,336	896,784	2,234,464	2,125,225
Operating loss	(952,301)	(571,931)	(1,514,772)	(1,367,103)
Warrant market adjustment	(404,435)		(652,025)
Net investment income	6,258	2,040	12,422	3,445
Net loss	$ (1,350,478)	$ (569,891)	$ (2,154,375)	$ (1,363,658)
Basic and diluted net loss per common share	$ (0.05)	$ (0.02)	$ (0.07)	$ (0.05)
Weighted average number of common shares outstanding	29,589,084	25,432,739	28,909,306	25,064,414

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance beginning at Dec. 31, 2017	$ 2,404	$ 111,627,789	$ (109,062,827)	$ 2,567,366
Balance beginning, shares at Dec. 31, 2017	24,043,846
Adoption of ASC 606			58,021	58,021
Issuance of capital stock	$ 139	1,249,861		1,250,000
Issuance of capital stock, shares	1,388,893
Stock based compensation		69,309		69,309
Exercise of options and warrants
Exercise of options and warrants, shares
Warrants converted to equity
Net loss			(1,363,658)	(1,363,658)
Balance ending at Jun. 30, 2018	$ 2,543	112,946,959	(110,368,464)	2,581,038
Balance ending, shares at Jun. 30, 2018	25,432,739
Balance beginning at Mar. 31, 2018	$ 2,543	112,877,650	(109,798,573)	3,081,620
Balance beginning, shares at Mar. 31, 2018	25,432,739
Adoption of ASC 606
Issuance of capital stock
Issuance of capital stock, shares
Stock based compensation		69,309		69,309
Exercise of options and warrants
Exercise of options and warrants, shares
Warrants converted to equity
Net loss			(569,891)	(569,891)
Balance ending at Jun. 30, 2018	$ 2,543	112,946,959	(110,368,464)	2,581,038
Balance ending, shares at Jun. 30, 2018	25,432,739
Balance beginning at Dec. 31, 2018	$ 2,767	114,787,657	(111,690,934)	3,099,490
Balance beginning, shares at Dec. 31, 2018	27,665,211
Adoption of ASC 606
Issuance of capital stock	$ 200	4,599,799		4,599,999
Issuance of capital stock, shares	2,001,237
Stock based compensation		356,228		356,228
Exercise of options and warrants	$ 136	1,105,763		1,105,899
Exercise of options and warrants, shares	1,366,995
Warrants converted to equity		1,153,439		1,153,439
Net loss			(2,154,375)	(2,154,375)
Balance ending at Jun. 30, 2019	$ 3,103	122,002,886	(113,845,309)	8,160,680
Balance ending, shares at Jun. 30, 2019	31,033,443
Balance beginning at Mar. 31, 2019	$ 2,867	115,889,339	(112,494,831)	3,397,375
Balance beginning, shares at Mar. 31, 2019	28,666,831
Adoption of ASC 606
Issuance of capital stock	$ 200	4,599,799		4,599,999
Issuance of capital stock, shares	2,001,237
Stock based compensation		356,228		356,228
Exercise of options and warrants	$ 36	4,081		4,117
Exercise of options and warrants, shares	365,375
Warrants converted to equity		1,153,439		1,153,439
Net loss			(1,350,478)	(1,350,478)
Balance ending at Jun. 30, 2019	$ 3,103	$ 122,002,886	$ (113,845,309)	$ 8,160,680
Balance ending, shares at Jun. 30, 2019	31,033,443

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (1,350,478)	$ (569,891)	$ (2,154,375)	$ (1,363,658)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			95,445	90,343
Stock based compensation			356,228	69,309
Provision for doubtful accounts			22,667
Warrant market adjustment	404,435		652,025		$ 278,044
Change in assets and liabilities:
Royalty receivables			(105,780)	21,122
Prepaid expenses and other current assets			(49,743)	(78,310)
Accounts payable and accrued expenses			(115,475)	44,382
Deferred revenue			(14,668)	102,024
Net cash used in operating activities			(1,313,676)	(1,114,788)
Cash flows from investing activities:
Purchases of fixed assets			(62,968)	(11,087)
Net cash used in investing activities			(62,968)	(11,087)
Cash flows from financing activities:
Net proceeds from issuances of common stock and warrants and exercise of options and warrants			5,705,898	1,250,000
Net cash provided by financing activities			5,705,898	1,250,000
Net increase in cash and cash equivalents			4,329,254	124,125
Cash and cash equivalents at beginning of period			2,969,416	1,737,847	1,737,847
Cash and cash equivalents at end of period	$ 7,298,670	$ 1,861,972	7,298,670	1,861,972	$ 2,969,416
Supplemental disclosure of non-cash activities:
Right of use assets obtained in connection with the adoption of FASB ASC 842			$ 941,284

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 2. 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; museum display panels, 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, cash equivalents, short-term investments, 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 foregoing 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 upon the nature of such changes. We have incurred recurring losses since inception and expect to continue to incur losses as a result of costs and expenses related to our research and continued development of our SPD technology and our corporate general and administrative expenses. Our capital resources and operations to date have been substantially funded through sales of our common stock, exercise of options and warrants and royalty fees collected. As of June 30, 2019, we had working capital of approximately $7.9 million, cash of approximately $7.3 million, shareholders’ equity of approximately $8.2 million and an accumulated deficit of approximately $113.8 million. Our quarterly projected cash flow shortfall, based on our current operations adjusted for any non-recurring cash expenses for the next 12 months, is approximately $450,000-550,000 per quarter. We may eliminate some operating expenses in the future, which will further reduce our cash flow shortfall if needed. We expect to have sufficient working capital for at least the next 3 years to fund operations based upon current expense levels. Since last year we have reduced our cash shortfall and may pursue other opportunities in the future to further reduce it. In the event that we are unable to generate sufficient cash from our operating activities or raise additional funds, we may be required to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which could have a material adverse effect on our business, operating results, financial condition and long-term prospects. The Company may seek to obtain additional funding through future equity issuances. There can be no assurance as to the availability or terms upon which such financing and capital might be available. 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.

Business

Business	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Note 2. 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; museum display panels, 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, cash equivalents, short-term investments, 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 foregoing 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 upon the nature of such changes. We have incurred recurring losses since inception and expect to continue to incur losses as a result of costs and expenses related to our research and continued development of our SPD technology and our corporate general and administrative expenses. Our capital resources and operations to date have been substantially funded through sales of our common stock, exercise of options and warrants and royalty fees collected. As of June 30, 2019, we had working capital of approximately $7.9 million, cash of approximately $7.3 million, shareholders’ equity of approximately $8.2 million and an accumulated deficit of approximately $113.8 million. Our quarterly projected cash flow shortfall, based on our current operations adjusted for any non-recurring cash expenses for the next 12 months, is approximately $450,000-550,000 per quarter. We may eliminate some operating expenses in the future, which will further reduce our cash flow shortfall if needed. We expect to have sufficient working capital for at least the next 3 years of operations. Since last year we have reduced our cash shortfall and may pursue other opportunities in the future to further reduce it. In the event that we are unable to generate sufficient cash from our operating activities or raise additional funds, we may be required to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which could have a material adverse effect on our business, operating results, financial condition and long-term prospects. The Company may seek to obtain additional funding through future equity issuances. There can be no assurance as to the availability or terms upon which such financing and capital might be available. 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.

Recently Adopted Accounting Pro

Recently Adopted Accounting Pronouncement	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Recently Adopted Accounting Pronouncement	Note 3. Recently Adopted Accounting Pronouncement Effective January 1, 2019, the Company adopted the Financial Accounting Standards Board’s Standard, Leases (Topic 842) ● An entity need not reassess whether any expired or existing contracts are or contain leases. ● An entity need not reassess the lease classification for any expired or existing leases. Instead, any leases previously classified as operating leases will continue to be classified as operating leases, while any leases previously classified as capital leases will be classified as finance leases. ● An entity need not reassess initial direct costs for any leases. The Company used the above practical expedients as the transition method in the application of the new lease standard at January 1, 2019. The Company applied a policy election to exclude short-term leases from balance sheet recognition and also elected certain practical expedients at adoption. As permitted, the Company did not reassess whether existing contracts are or contain leases, the lease classification for any existing leases, initial direct costs for any existing lease, which were not previously accounted for as leases, are or contain a lease. At adoption on January 1, 2019, an operating lease liability of $1,134,000 and an operating lease right of use asset of $941,000 were recorded. The operating lease liability was $193,000 more than the operating lease right of use asset due to unamortized lease incentive from periods prior to the adoption of the new lease standard. There was no cumulative earnings effect adjustment.

Patent Costs

Patent Costs	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Patent Costs	Note 4. 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	6 Months Ended
	Jun. 30, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Revenue Recognition	Note 5. Revenue Recognition In May 2014, the FASB issued guidance on revenue recognition (ASC 606). The standard provides a single comprehensive revenue recognition model for all contracts with customers and supersedes existing revenue recognition guidance. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This new ASC 606 guidance was adopted by the Company beginning January 1, 2018. ASC 606 was applied using the modified retrospective method, with the cumulative effect of the initial adoption being recognized as an adjustment to opening retained earnings at January 1, 2018. ASC 606 follows a five-step approach to determining revenue recognition including: 1) Identification of the contract; 2) Identification of the performance obligations; 3) Determination of the transaction price; 4) Allocation of the transaction price and 5) Recognition of revenue. The Company determined that its license agreements provide for three performance obligations which include: (i) the Grant of Use to its Patent Portfolio “Grant of Use”, (ii) Stand-Ready Technical Support (“Technical Support”) including the transfer of trade secrets and other know-how, production of materials, scale-up support, analytical testing, etc., and (iii) access to new Intellectual Property (“IP”) that may be developed sometime during the course of the contract period (“New Improvements”). Given the nature of IP development, such New Improvements are on an unspecified basis and can occur and be made available to licensees at any time during the contract period. When a contract includes more than one performance obligation, the Company needs to allocate the total consideration to each performance obligation based on its relative standalone selling price or estimate the standalone selling price if it is not observable. A standalone selling price is not available for our performance obligations since we do not sell any of the services separately and there is no competitor pricing that is available. As a consequence, the best method for determining standalone selling price of our Grant of Use performance obligation is through a comparison of the average royalty rate for comparable license agreements as compared to our license agreements. Comparable license agreements must consider several factors including: (i) the materials that are being licensed, (ii) the market application for the licensed materials, and (iii) the financial terms in the license agreements that can increase or decrease the risk/reward nature of the agreement. Based on the royalty rate comparison referred to above, any pricing above and beyond the average royalty rate would relate to the Technical Support and New Improvements performance obligations. The Company focuses a significant portion of its time and resources to provide the Technical Support and New Improvements services to its licensees which further supports the conclusions reached using the royalty rate analysis. The Technical Support and New Improvements performance obligations are co-terminus over the term of the license agreement. For purposes of determining the transaction price, and recognizing revenue, the Company combined the Technical Support and New Improvements performance obligations because they have the same pattern of transfer and the same term. We maintain a staff of scientists and other professionals whose primary job responsibilities throughout the year are: (i) being available to respond to Technical Support needs of our licensees, and (ii) developing improvements to our technology which are offered to our licensees as New Improvements. Since the costs incurred to satisfy the Technical Support and New Improvements performance obligations are incurred evenly throughout the year, the value of the Technical Support and New Improvements services are recognized throughout the initial contract period as these performance obligations are satisfied. If the agreement is not terminated at the end of the initial contract period, it will renew on the same terms as the initial contract for a one-year period. Consequently, any fees or minimum annual royalty obligations relating to this renewal contract will be allocated similarly to the initial contract over the additional one-year period. We recognize revenue when or as the performance obligations in the contract are satisfied. For performance obligations that are fulfilled at a point in time, revenue is recognized at the fulfillment of the performance obligation. Since the IP is determined to be a functional license, the value of the Grant of Use is recognized in the first period of the contract term in which the license agreement is in force. The value of the Technical Support and New Improvements obligations is allocated throughout the contract period based on the satisfaction of its performance obligations. If the agreement is not terminated at the end of the contract period, it will renew on the same terms as the original agreement for a one-year period. Consequently, any fees or minimum annual royalties (“MAR”) relating to this renewal contract will be allocated similarly over that additional year. The Company’s license agreements have a variable royalty fee structure (meaning that royalties are a fixed percentage of sales that vary from period to period) and frequently include a minimum annual royalty commitment. In instances when sales of licensed products by its licensees exceed the MAR, the Company recognizes fee income as the amounts have been earned. Typically, the royalty rate for such sales is 10-15% of the selling price. While this is variable consideration, it is subject to the sales/usage royalty exception to recognition of variable consideration in ASC 606 10-55-65 and therefore is not recognized until the subsequent sales or usage occurs or the MAR period commences. Because of the immediate recognition of the Grant of Use performance obligation: (i) the first period of the contract term will generally have a higher percent allocation of the transaction price under ASC 606 than under the accounting guidance used prior to the adoption of ASC 606, and (ii) the remaining periods in the year will have less of the transaction price recognized under ASC 606 than under the accounting guidance used prior to the adoption of ASC 606. After the initial period in the contract term, the revenue for the remaining periods will be based on the satisfaction of the technical support and New Improvements obligations. Since most of our license agreements start as of January 1st, the revenue recognized for the contract under ASC 606 in our first quarter will tend to be higher than the accounting guidance used prior to the adoption of ASC 606. The Company does not have any contract assets under ASC 606 as of June 30, 2019. Certain of the contract 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 are recognized into income in future periods as earned. 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. Our revenue source comes from the licensing of this technology and all of these license agreements have similar terms and provisions. The majority of the Company’s licensing fee income comes from the activities of several licensees participating in the automotive market. The Company currently believes that the automotive market will be the largest source of its royalty income over the next several years. The Company’s royalty income from this market may be influenced by numerous factors including various trends affecting demand in the automotive industry and the rate of introduction of new technology in OEM product lines. In addition to these macro factors, the Company’s royalty income from the automotive market could also be influenced by specific factors such as whether the Company’s SPD-SmartGlass technology appears as standard equipment or as an option on a particular vehicle, the number of additional vehicle models that SPD-SmartGlass appears on, the size of each window on a vehicle and the number of windows on a vehicle that use SPD SmartGlass, fluctuations in the total number of vehicles produced by a manufacturer, and in the percentage of cars within each model produced with SPD-SmartGlass, and changes in pricing or exchange rates. As of June 30, 2019, the Company has six license agreements that are in their initial multiyear term (“Initial Term”) with continuing performance obligations going forward. The Initial Term of four of these agreements will end as of December 31, 2019, one will end as of December 31, 2021, and one will end as of December 31, 2022. The Company currently expects that all six of these agreements will renew annually at the end of the Initial Term. As of June 30, 2019, the aggregate amount of the revenue to be recognized upon the satisfaction of the remaining performance obligations for the six license agreements is $266,924. The revenue for these remaining performance obligations for each of the six license agreements is expected to be recognize evenly throughout their remaining period of the Initial Term.

Fee Income

Fee Income	6 Months Ended
	Jun. 30, 2019
Fee Income
Fee Income	Note 6. 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 six months of 2019, two licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 36% and 15%, respectively, of fee income recognized during such period. During the first six months of 2018, three licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 33%, 13% and 12%, respectively, of fee income recognized during this period. During the three-month period ending June 30, 2019, three licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 43%, 16% and 10%, respectively, of fee income recognized during such period. During the three-month period ending June 30, 2018, three licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 32%, 15% and 11%, respectively, of fee income recognized during such period.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 7. Stock-Based Compensation The Company has granted options/warrants to consultants. 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 at the date of grant. 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 three and six months ended June 30, 2019 and 2018 there were no charges related to options granted to consultants. During the six-month period ended June 30, 2018, the Company granted 150,182 fully vested options to employees and recorded share-based compensation of $69,309. All of the options granted to employees during the six-month period ended June 30, 2018 occurred during the second quarter of 2018. The Company valued these grants using the Black-Scholes option pricing model with the following assumptions: Fair value on grant date $ 0.462 Expected dividend yield 0 Expected volatility 51 % Risk free interest rate 2.77 % Expected term of the option 5 years During the six-month period ended June 30, 2019, the Company granted 233,500 fully vested options to employees and directors and recorded share-based compensation of $356,228. All of the options granted to employees during the six-month period ended June 30, 2019 occurred during the second quarter of 2019. The Company valued these grants using the Black-Scholes option pricing model with the following assumptions: Fair value on grant date $ 1.5256 Expected dividend yield 0 Expected volatility 61 % Risk free interest rate 1.84 % Expected term of the option 5 years There was no compensation expense recorded relating to restricted stock grants to employees and directors during the three and six months ended June 30, 2019 and 2018.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. 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 other deferred tax items have been fully reserved since it was not more likely than not that the Company would achieve profitable operations and be able to utilize the benefit of the net operating loss carryforwards.

Basic and Diluted Loss Per Comm

Basic and Diluted Loss Per Common Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Basic and Diluted Loss Per Common Share	Note 9. Basic and Diluted Loss Per Common Share Basic loss per share excludes any dilution. It is based upon the weighted average number of common shares outstanding during the period. Dilutive loss per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company’s dilutive loss per share equals basic loss per share for the periods ended June 30, 2019 and 2018 respectively because all common stock equivalents ( i.e.,

Equity

Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Equity	Note 10. Equity During the six months ended June 30, 2019, the Company received $1,105,900 in proceeds from the exercise of outstanding options and warrants and issued 1,003,870 shares of its capital stock in connection with these exercises. In addition, during the six months ended June 30, 2019, the Company issued 363,125 shares of its capital stock in connection with the cashless exercise of 603,569 of its outstanding options and warrants. During the three-month period ended June 30, 2019, the Company received $4,118 in proceeds from the exercise of outstanding options and issued 2,250 shares of its capital stock in connection with these exercises. In addition, during the three-month period ended June 30, 2019, the Company issued 363,125 shares of its capital stock in connection with the cashless exercise of 603,569 of its outstanding options and warrants. There were no proceeds from the exercise of outstanding warrants and/or options during the three or six month period ended June 30, 2018. On or around February 16, 2018, a small group of long-time shareholders of the Company who are accredited investors made an interest-free five-year convertible loan of $1.25 million to the Company which, upon the occurrence of certain conditions which have already occurred, automatically converted into 1,388,893 shares of common stock at a price equal to the market price of the Company’s common stock when the loan was made, plus warrants expiring February 28, 2023 to purchase 1,388,893 shares of common stock at an exercise price of $1.10, $1.20 or $1.35 per share depending on the exercise date. No payments are due on this note during its five-year term or after conversion into equity. On April 23, 2018, Research Frontiers Incorporated filed a prospectus supplement relating to the issuance and sale of the above common stock and warrant securities with the Securities and Exchange Commission. The Company recorded this transaction as an equity transaction whereby the proceeds were accounted for as the issuance of the Company’s common stock on the date that the proceeds were received. On September 7, 2018, the Company announced that it had sold common stock to a group of investors led by Gauzy Ltd., a licensee of the Company’s SPD technology (Gauzy). The aggregate proceeds from these stock offerings was $2.0 million. At the closing, the investors received 2,173,916 shares of Research Frontiers common stock at a price of $0.92 per share, as well as five-year warrants to purchase 1,086,957 shares of Research Frontiers common stock at an exercise price of $1.10, $1.20 or $1.38 per share depending on the exercise date. In connection with the issuance of certain of these warrants during the third quarter of 2018, the Company recorded $223,370 as a warrant liability upon the issuance of these warrants on August 13, 2018 and recorded a non-cash accounting expense of $278,044 to mark the warrants to their estimated market value as of December 31, 2018. This resulted in a liability of $501,414 recorded on the Company’s December 31, 2018 balance sheet. On or around May 30, 2019, the Company sold to accredited investors a total of 1,276,599 shares of common stock and warrants expiring May 31, 2024 to purchase 638,295 shares of common stock at an exercise price of $3.384, $3.666 or $4.23 per share depending on the exercise date. Research Frontiers also sold to Gauzy, at a price of $1.38 per unit, with each unit comprised of one share of unregistered common stock and one half of one warrant. The warrant can be converted into one share of unregistered common stock at an exercise price of $1.656, $1.794 or $2.07 per share depending on the exercise date. Gauzy received a total of 724,638 shares of unregistered common stock and warrants expiring May 31, 2024 to purchase 362,319 shares of common stock. The aggregate proceeds from these stock offerings was $4.6 million. Investors that participated in the May 30, 2019 offering agreed to amending/clarifying language to the terms of the warrants that they received in the September 7, 2018 offering. Those investors that received warrants in the September 7, 2018 offering that did not participate in the May 30, 2019 offering, separately agreed as of June 27, 2019 to the same amending/clarifying language used in the May 30, 2019 offering. The amending/clarifying language relating to the September 7, 2018 warrants does not allow for a net cash settlement option for the warrants even if no registered shares of common stock are available upon the exercise of the warrant. The Company recorded a non-cash expense of $404,435 and $652,025 respectively for the three and six month period ended June 30, 2019 to mark these warrants to their estimated market value as of their respective amendment/clarification date. The warrant liability was valued at $1,153,439 (including all valuation adjustments since their issuance) through the date of these new agreements and amendments and, based on the amended warrant terms, the warrant liability was reclassified to equity as of these dates.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	Note 11. Leases The Company determines if an arrangement is a lease at its inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if the Company obtains the rights to direct the use of, and to obtain substantially all of the economic benefits from the use of, the underlying asset. Lease expense for variable leases and short-term leases is recognized when the obligation is incurred. The Company has operating leases for certain facilities, vehicles and equipment with a weighted average remaining lease term of 5.7 years as of June 30, 2019. Operating leases are included in right of use lease assets, other current liabilities and long-term lease liabilities on the Condensed Consolidated Balance Sheet. Right of use lease assets and liabilities are recognized at each lease’s commencement date based on the present value of its lease payments over its respective lease term. The Company does not have an established incremental borrowing rate as it does not have any debt. The Company uses the stated borrowing rate for a lease when readily determinable. When the interest rates implicit in its lease agreements is not readily determinable, the Company used an interest rate based on the marketplace for public debt. The weighted-average discount rate associated with operating leases as of June 30, 2019 is 5.5%. Operating lease expense for the three months ended June 30, 2019 was approximately $55,000 and approximately $111,000 for the six months ended June 30, 2019. The Company has no material variable lease costs or sublease income for the six months ended June 30, 2019. Subsequent to the Company’s adoption of the new lease accounting guidance on January 1, 2019, the Company recorded new right of use lease assets of approximately $900 thousand and associated lease liabilities of approximately $1.1 million. Maturities of operating lease liabilities as of June 30, 2019 were as follows: June 30, 2019 For the remainder of 2019 $ 105,979 For the year ended December 31, 2020 213,146 For the year ended December 31, 2021 207,229 For the year ended December 31, 2022 213,320 For the year ended December 31, 2023 217,151 For the year ended December 31, 2024 and beyond 277,743 Total lease payments 1,234,568 Less: imputed lease interest (181,041 ) Present value of lease liabilities $ 1,053,527 Pursuant to the Company’s adoption of the new lease accounting guidance, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. As previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2018, the following table presents the Company’s future minimum rental commitments under operating leases as of December 31, 2018: Year Amount 2019 $ 191,000 2020 $ 197,000 2021 $ 203,000 2022 $ 209,000 Thereafter: $ 493,000

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Stock-based Compensation, Black-Scholes Option Pricing Model Valuation Assumptions	The Company valued these grants using the Black-Scholes option pricing model with the following assumptions: Fair value on grant date $ 0.462 Expected dividend yield 0 Expected volatility 51 % Risk free interest rate 2.77 % Expected term of the option 5 years The Company valued these grants using the Black-Scholes option pricing model with the following assumptions: Fair value on grant date $ 1.5256 Expected dividend yield 0 Expected volatility 61 % Risk free interest rate 1.84 % Expected term of the option 5 years

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Schedule of Operating Lease Liabilities	Maturities of operating lease liabilities as of June 30, 2019 were as follows: June 30, 2019 For the remainder of 2019 $ 105,979 For the year ended December 31, 2020 213,146 For the year ended December 31, 2021 207,229 For the year ended December 31, 2022 213,320 For the year ended December 31, 2023 217,151 For the year ended December 31, 2024 and beyond 277,743 Total lease payments 1,234,568 Less: imputed lease interest (181,041 ) Present value of lease liabilities $ 1,053,527
Schedule of Future Minimum Rental Commitments	As previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2018, the following table presents the Company’s future minimum rental commitments under operating leases as of December 31, 2018: Year Amount 2019 $ 191,000 2020 $ 197,000 2021 $ 203,000 2022 $ 209,000 Thereafter: $ 493,000

Business (Details Narrative)

Business (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Working capital	$ 7,900,000
Cash	7,298,670		$ 2,969,416
Shareholders' equity	8,160,680	$ 3,397,375	3,099,490	$ 2,581,038	$ 3,081,620	$ 2,567,366
Accumulated deficit	(113,845,309)		$ (111,690,934)
Minimum [Member]
Non-recurring cash expenses	450,000
Maximum [Member]
Non-recurring cash expenses	$ 550,000

Recently Adopted Accounting P_2

Recently Adopted Accounting Pronouncement (Details Narrative) - USD ($)	Jun. 30, 2019	Jan. 02, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Operating lease liability	$ 1,053,527	$ 1,134,000
Operating lease right of use asset	854,582	$ 941,000
Excess amount of operating lease liability	$ 193,000

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative)	6 Months Ended
	Jun. 30, 2019USD ($)
Six License Agreements [Member]
Remaining performance obligations	$ 266,924
Minimum [Member]
Royalty rate	10.00%
Maximum [Member]
Royalty rate	15.00%

Fee Income (Details Narrative)

Fee Income (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Two Licensees [Member]
Percentage of fee income			10.00%
Licensee One [Member]
Percentage of fee income	43.00%	32.00%	36.00%	33.00%
Licensee Two [Member]
Percentage of fee income	16.00%	15.00%	15.00%	13.00%
Three Licensees [Member]
Percentage of fee income	10.00%	10.00%		10.00%
Licensee Three [Member]
Percentage of fee income				12.00%
Three Licensees [Member]
Percentage of fee income		10.00%
Three Licensees [Member]
Percentage of fee income		11.00%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employees and Directors [Member]
Stock-based compensation fully vested stock option granted	233,500		233,500
Share-based compensation	$ 356,228		$ 356,228
Employees and Directors [Member] | Restricted Stock [Member]
Compensation expense recorded
Employee Stock [Member]
Stock-based compensation fully vested stock option granted		150,182		150,182
Share-based compensation		$ 69,309		$ 69,309
Minimum [Member]
Award vesting period			12 months
Maximum [Member]
Award vesting period			60 months

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-based Compensation, Black-Scholes Option Pricing Model Valuation Assumptions (Details) - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Share-based Payment Arrangement [Abstract]
Fair value on grant date	$ 1.5256	$ 0.462
Expected dividend yield	0.00%	0.00%
Expected volatility	61.00%	51.00%
Risk free interest rate	1.84%	2.77%
Expected term of the option	5 years	5 years

Basic and Diluted Loss Per Co_2

Basic and Diluted Loss Per Common Share (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Warrant [Member]
Anti-dilutive securities effect	3,441,152	2,975,985
Stock Option [Member]
Anti-dilutive securities effect	3,441,152	2,975,985

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	May 30, 2019	Sep. 07, 2018	Feb. 16, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Aug. 13, 2018
Proceeds from exercise of options and warrants				$ 4,118		$ 1,105,900
Options and warrant issued in connection with exercises				2,250		1,003,870
Additional issuance of common stock options and warrants				363,125		363,125
Convertible loan period			5 years
Proceeds from loan			$ 1,250,000
Conversion of stock, shares converted			1,388,893
Warrants to purchase common stock			1,388,893
Warrant expiry date			Feb. 28, 2023
Warrants term			5 years
Warrant liability								$ 501,414	$ 223,370
Warrant market adjustment				$ 404,435		652,025		$ 278,044
Warrant liability reclassified to equity						$ 1,153,439
SPD Technology [Member]
Shares issued price per share	$ 1.38
Warrants issued description	One share of unregistered common stock and one half of one warrant
Investors [Member] | SPD Technology [Member]
Warrants to purchase common stock		1,086,957
Proceeds from stock offering		$ 2,000,000
Number of shares issued to investors		2,173,916
Shares issued price per share		$ 0.92
Warrants term		5 years
Warrant Exercise Price One [Member]
Warrant exercise price per share			$ 1.10
Warrant Exercise Price One [Member] | Accredited Investors [Member]
Warrant exercise price per share	$ 3.384
Warrant Exercise Price One [Member] | SPD Technology [Member]
Warrant exercise price per share	1.656
Warrant Exercise Price One [Member] | Investors [Member] | SPD Technology [Member]
Warrant exercise price per share		$ 1.10
Warrant Exercise Price Two [Member]
Warrant exercise price per share			1.20
Warrant Exercise Price Two [Member] | Accredited Investors [Member]
Warrant exercise price per share	3.666
Warrant Exercise Price Two [Member] | SPD Technology [Member]
Warrant exercise price per share	1.794
Warrant Exercise Price Two [Member] | Investors [Member] | SPD Technology [Member]
Warrant exercise price per share		1.20
Warrant Exercise Price Three [Member]
Warrant exercise price per share			$ 1.35
Warrant Exercise Price Three [Member] | Accredited Investors [Member]
Warrant exercise price per share	4.23
Warrant Exercise Price Three [Member] | SPD Technology [Member]
Warrant exercise price per share	$ 2.07
Warrant Exercise Price Three [Member] | Investors [Member] | SPD Technology [Member]
Warrant exercise price per share		$ 1.38
Common Stock [Member]
Number of shares issued to investors				2,001,237		2,001,237	1,388,893
Common Stock [Member] | Accredited Investors [Member]
Proceeds from stock offering	$ 4,600,000
Number of common stock sold	1,276,599
Warrants [Member] | Accredited Investors [Member]
Warrants to purchase common stock	638,295
Warrant expiry date	May 31, 2024
Warrants [Member] | SPD Technology [Member]
Warrants to purchase common stock	362,319
Warrant expiry date	May 31, 2024
Unregistered Common Stock [Member] | SPD Technology [Member]
Number of shares issued to investors	724,638
Warrant [Member]
Warrant market adjustment				$ 404,435		$ 652,025
Cashless Exercise [Member]
Additional issuance of common stock options and warrants				603,569		603,569

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jan. 02, 2019	Dec. 31, 2018
Leases [Abstract]
Operating weighted average remaining lease term	5 years 8 months 12 days	5 years 8 months 12 days
Weighted average discount rate, percent	5.50%	5.50%
Operating lease expense	$ 55,000	$ 111,000
Right of use lease assets	854,582	854,582	$ 941,000
Operating lease liability	$ 1,053,527	$ 1,053,527	$ 1,134,000

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Liabilities (Details) - USD ($)	Jun. 30, 2019	Jan. 02, 2019
Leases [Abstract]
For the remainder of 2019	$ 105,979
For the year ended December 31, 2020	213,146
For the year ended December 31, 2021	207,229
For the year ended December 31, 2022	213,320
For the year ended December 31, 2023	217,151
For the year ended December 31, 2024 and beyond	277,743
Total lease payments	1,234,568
Less: imputed lease interest	(181,041)
Present value of lease liabilities	$ 1,053,527	$ 1,134,000

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Rental Commitments (Details)	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 191,000
2020	197,000
2021	203,000
2022	209,000
Thereafter:	$ 493,000