SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended June 30, 2002 Commission File No. 1-9399 RESEARCH FRONTIERS INCORPORATED (Exact name of registrant as specified in charter) Delaware 11-2103466 (State of incorporation or organization) (IRS Employer Identification No.) 240 Crossways Park Drive, Woodbury, N.Y. 11797 (Address of principal executive offices) (Zip Code) (516) 364-1902 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No __ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: As of August 13, 2002, there were outstanding 12,121,579 shares of Common Stock, par value $0.0001 per share. RESEARCH FRONTIERS INCORPORATED Consolidated Balance Sheets June 30,2002 Assets (Unaudited) Dec.31,2001 Current assets: Cash and cash equivalents $ 379,388 853,210 Marketable investment securities-available for sale 5,887,684 7,083,606 Receivable from warrant exercise pending settlement -- 164,311 Royalty receivable 112,500 37,500 Prepaid expenses and other current assets 194,905 134,050 Total current assets 6,574,477 8,272,677 Investment in SPD Inc., at cost 750,002 750,002 Fixed assets, net 245,150 279,618 Deposits and other assets 22,605 22,605 Total assets $ 7,592,234 9,324,902 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 55,766 79,197 Deferred revenue 56,250 37,500 Accrued expenses and other 153,638 158,285 Total liabilities 265,654 274,982 Shareholders' equity: Capital stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 12,144,579 shares and 12,108,195 shares 1,214 1,211 Additional paid-in capital 51,594,692 51,359,036 Accumulated other comprehensive income 45,464 41,835 Accumulated deficit (44,161,829)(42,199,201) 7,479,541 9,202,881 Notes receivable from officers (152,961) (152,961) Total shareholders' equity 7,326,580 9,049,920 Total liabilities and shareholders' equity $ 7,592,234 9,324,902 See accompanying notes to consolidated financial statements. RESEARCH FRONTIERS INCORPORATED Consolidated Statements of Operations (Unaudited) Six months ended Three months ended June 30,2002 June 30,2001 June 30,2002 June 30,2001 Fee income $ 81,250 81,252 $ 28,125 12,500 Operating expenses 1,404,180 1,838,927 778,466 1,219,303 Research and development 866,960 1,339,841 409,860 702,979 2,271,140 3,178,768 1,188,326 1,922,282 Operating loss (2,189,890) (3,097,516) (1,160,201) (1,909,782) Net investment income 227,262 355,250 118,440 161,388 Net loss $(1,962,628) (2,742,266) $(1,041,761) (1,748,444) Basic and diluted net loss per common share $ (.16) (.23) $ (.09) (.14) Weighted average number of common shares outstanding 12,133,995 12,078,108 12,139,767 12,064,696 See accompanying notes to consolidated financial statements. RESEARCH FRONTIERS INCORPORATED Consolidated Statements of Cash Flows (Unaudited) Six months ended June 30,2002 June 30, 2001 Cash flows from operating activities: Net loss $ (1,962,628) (2,742,266) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 55,084 57,711 Expense relating to issuance of stock options and warrants for services performed 101,050 55,594 Cashless exercise of warrants -- 17,588 Changes in assets and liabilities: Royalty receivable (75,000) (37,500) Prepaid expenses and other current assets (60,855) 5,555 Deferred revenue 18,750 43,748 Accounts payable & accrued expenses (28,078) 156,105 Net cash used in operating activities (1,951,677) (2,443,465) Cash flows from investing activities: Proceeds from sale and maturity of held-to-maturity securities -- 1,319,572 Proceeds from sale of available-for-sale securities 1,199,551 -- Investment in SPD, Inc., at cost -- (750,002) Purchase of fixed assets (20,616) (30,125) Net cash provided by investing activities 1,178,935 539,445 Cash flows from financing activities: Proceeds from issuances of common stock 1,819,367 4,602,079 Purchase of treasury stock (1,520,447) (5,945,938) Net cash provided by (used in) financing activities 298,920 (1,343,859) Net decrease in cash and cash equivalents (473,822) (3,247,879) Cash and cash equivalents at beginning of year 853,210 3,806,172 Cash and cash equivalents at end of period $ 379,388 558,293 See accompanying notes to consolidated financial statements. RESEARCH FRONTIERS INCORPORATED Notes to Consolidated Financial Statements June 30, 2002 (Unaudited) Basis of Presentation The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods to which the report relates. The results of operations for the six-month period ended June 30, 2002 are not necessarily indicative of the results to be expected for the full year. The notes included herein should be read in conjunction with the notes to the consolidated financial statements of Research Frontiers Incorporated (the "Company") as of December 31, 2001 and for the three years then ended, included in the Company's Annual Report on Form 10-K. Business Research Frontiers Incorporated 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 microscopic particles that are either incorporated within a liquid suspension or a film, which is usually enclosed between two glass or plastic plates, having transparent, electrically conductive coatings on the facing surfaces thereof. At least one of the two plates is transparent. During the second quarter of 2001, the Company, through its wholly- owned subsidiary, SPD Enterprises, Inc., invested approximately $750,000 for a minority equity interest in SPD Inc., a subsidiary of Hankuk Glass Industries Inc., Korea's largest glass manufacturer, which is dedicated exclusively to the production of suspended particle device (SPD) light- control film and a wide variety of end-products using SPD film. Patent Costs The Company expenses costs relating to the development or acquisition of patents due to the uncertainty of the recoverability of these items. Adoption of New Accounting Pronouncements The Company adopted on January 1, 2002 Financial Accounting Standards Board Statement No. 144, Accounting for the Impairment of Long-Lived Assets ("SFAS No. 144"),which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. This statement supersedes Financial Accounting Standards Board Statement No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of ("SFAS No. 121"), while retaining the fundamental recognition and measurement provisions of that statement. SFAS No. 144 requires that a long-lived asset to be abandoned, exchanged for a similar productive asset or distributed to owners in a spinoff to be considered held and used until it is disposed of. However, SFAS No. 144 requires that management consider revising the depreciable life of such long-lived asset. With respect to long-lived assets to be disposed of by sale, SFAS No. 144 retains the provisions of SFAS No. 121, and therefore, requires that discontinued operations no longer be measured on a net realizable value basis and that future operating losses associated with such discontinued operations no longer be recognized before they occur. The implementation of SFAS No. 144 had no impact on the Company's financial position or results of operations. Deferred Revenue The Company has entered into a number of license agreements covering potential products. The Company receives minimum annual royalties under certain license agreements and records fee income for the amounts earned by the Company. Certain of the fees are paid to the Company in advance of the period in which they are earned, resulting in deferred revenue. Marketable Investment Securities During the second quarter of 2001, the Company determined that it may sell its marketable investment securities prior to their maturity dates in order to invest in other marketable securities, repurchase and retire its common stock, and for general working capital purposes. Accordingly, as of June 30, 2001, the Company transferred its classification of marketable securities from held-to-maturity to available-for-sale. As a result, the Company records the securities at fair value with the unrealized holding gain of $45,464 at June 30, 2002 recorded as a component of shareholders'equity. Shareholders' Equity Issuance of Common Stock For the six months ended June 30, 2002, the Company received $1,819,367 of net cash proceeds from (i) the issuance of 33,875 shares of common stock issued upon the exercise of options resulting in net proceeds of $243,767; (ii) 99,000 shares of common stock issued upon the exercise of warrants resulting in net proceeds of $1,411,289; and (iii) $164,311 of cash received in early January for the settlement of a warrant exercised in late December 2001. In addition, 2,816 shares with a value of $39,200 were delivered to the Company and immediately retired in payment of the exercise price of options to purchase 10,500 shares. For the six months ended June 30, 2001, the Company received $4,602,079 of net cash proceeds from (i) the issuance of 28,175 shares of common stock issued upon the exercise of options resulting in net proceeds of $224,347 and (ii) 247,000 shares of common stock issued upon the exercise of warrants resulting in net proceeds of $4,377,732. In addition, 778 shares were issued to directors in payment of $12,000 in directors fees, and 687 shares were issued through the cashless exercise of certain warrants, resulting in non-cash consulting expense of $17,588 being recorded. Treasury Stock For the six months ended June 30, 2002, the Company purchased in the open market and subsequently retired 104,175 shares of treasury stock with an aggregate cost of $1,520,447. In addition, 2,816 shares with a value of $39,200 were delivered to the Company and immediately retired in payment of the exercise price of options to purchase 10,500 shares. For the six months ended June 30, 2001, the Company purchased in the open market and subsequently retired 299,693 shares of treasury stock with an aggregate cost of $5,945,938. Issuance of Warrants and Options During the second quarter of 2002, the Company issued warrants to SPD Inc. to purchase 10,000 shares of common stock at an exercise price of $12.19 per share as an award for being the first licensee of the Company to produce and sell commercial quantities of SPD film. The Company recorded $64,000 of non-cash expense in connection with the issuance of these warrants. During the second quarter of 2002, the Company issued options to its five Advisory Board members to purchase a total of 5,000 shares of common stock at an exercise price of $12.775 per share. The Company recorded $37,050 of non-cash expense in connection with the issuance of these options. Comprehensive Income The Company accounts for its comprehensive income under the provisions of Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income." (Statement 130). Statement 130 requires that companies disclose comprehensive income, which includes net income, foreign currency translation adjustments, minimum pension liability adjustments, and unrealized gains and losses on marketable securities classified as available-for-sale. The components of comprehensive loss for the three and six months ended June 30, 2002 and 2001 are as follows: Three months ended Six months ended June 30,2002 June 30,2001 June 30,2002 June 30,2001 Net loss $(1,041,761) (1,748,444) (1,962,628) (2,742,266) Reclassification adjustments for gains realized in net income during the period (20,368) -- (20,368) -- Unrealized holding gain arising during period 80,868 52,224 23,997 54,818 Total comprehensive loss $ (981,261) (1,696,220) (1,958,999) (2,687,448) Performance Bonus Plan In December 2000, the Company's Board of Directors approved a performance bonus plan which provides for a bonus to be paid on or after July 2, 2001 and on or after January 2, 2002 equal to 1% of the increase, if any, in the Company's market value during the first and second halves of 2001. Bonuses are capped at a recipient's salary in the case of employees of the Company, and are currently capped at $60,000 in the case of non-employee directors and certain employees of the Company. The Company's Board of Directors approved a similar bonus plan for 2002 but with higher thresholds to be met before a bonus is payable under such plan. In addition to the payment caps described above, under the current plan, in order to insure that bonuses are not paid based upon temporary fluctuations in the market value of the Company, bonuses under this plan will only be paid to the various participants under this plan if and when the market value of the Company exceeds $280,489,009 (and in the case of any bonus paid to Robert L. Saxe, if and when the market value of the Company exceeds $304,207,362). The Company recorded $0 and $785,500 of expenses in connection with these plans for the for the six months ended June 30, 2002 and 2001, respectively. Vesting of Performance Warrants During the first quarter of 2001, certain warrants granted to consultants in 1995 to purchase 7,000 shares of common stock became vested due to services performed and performance criteria being met. In accordance with EITF Issue 96-18, "Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling, Goods or Services," the Company recorded consulting expense of $43,596 during the first quarter of 2001, based upon the fair value of such warrants on the date the warrants vested as determined using a Black-Scholes option pricing model. Reclassifications During the second quarter, the Company has reclassified costs associated with patents and patent applications from research and development expenses to operating expenses. The amount of patent costs for the three and six months ended June 30, 2002 was approximately $129,000 and $155,000, respectively. The reclassification was also reflected in the statement of operations for the three and six months ended June 30, 2001 to conform to the current period's presentation. The amount of patent costs reclassified from research and development expense to operating expense for the three and six months ended June 30, 2001 was approximately $151,000 and $241,000 respectively. Management's Discussion and Analysis of Financial Condition and Results of Operations Accounting Policies The following accounting policies are important to understanding our financial condition and results of operations and should be read as an integral part of the discussion and analysis of the results of our operations and financial position. For additional accounting policies, see note 2 to our consolidated financial statements, "Summary of Significant Accounting Policies"contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2001. We have entered into a number of license agreements covering potential products using the Company's SPD technology. Under these agreements, we generally recognize income from royalties when earned in accordance with the terms of the agreements. The Company expenses costs relating to the development or acquisition of patents due to the uncertainty of the recoverability of these items. All of our research and development costs are charged to operations as incurred. Our research and development expenses consist of costs incurred for internal and external research and development. These costs include direct and research-related overhead expenses. On occasion, the Company may issue to consultants either options or warrants to purchase shares of common stock of the Company at specified share prices. These options or warrants may vest based upon specific services being performed or performance criteria being met. In accordance with EITF Issue 96-18, "Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling, Goods or Services," the Company would be required to record consulting expenses based upon the fair value of such options or warrants on the date that such options or warrants vest as determined using a Black-Scholes option pricing model. Depending upon the difference between the exercise price and the market price of the Company's common stock on the date that such options or warrants vest, the amount of non-cash expenses that could be recorded as a result of the vesting of such options or warrants can be material. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. An example of a critical estimate is the full valuation allowance for deferred taxes that was recorded based on the uncertainty that such tax benefits will be realized in future periods. Results of Operations for the Six-Month Periods Ended June 30, 2002 and 2001 The Company's fee income from licensing activities for the first six months of 2002 was $81,250 which was essentially the same as the first six months of 2001. Although sales of licensed products under some of the Company's license agreements have occurred during the first half of 2002, the earned royalties on such sales have not yet exceeded the minimum annual royalties payable by certain licensees under their license agreements, and/or are included as a royalty receivable on the Company's balance sheet since the license agreements in effect with the Company's licensees typically do not require the licensee to make payment of earned royalties on the sale of licensed products until 45 days after the end of the quarter in which such sales occurred. Operating expenses decreased by $434,747 for the first six months of 2002 to $1,404,180 from $1,838,927 for the first six months of 2001. This decrease was primarily the result of lower payroll, patent and office expenses, lower taxes and professional fees, offset somewhat by increased legal, marketing, public relations, travel and trade show expenses and stock listing fees. Research and development expenditures decreased by $472,881 to $866,960 for the first six months of 2002 from $1,339,841 for the first six months of 2001. This decrease was primarily the result of lower payroll and consulting expenses, and lower costs of materials. Operating expenses and research and development expenses listed above included amounts accrued under a performance bonus plan of $496,790 and $288,710, respectively during the first half of 2001. No amounts were accrued under the bonus plan with respect to the first half of 2002, and whether any bonuses will be paid by the Company will be determined based upon performance milestones achieved during the remainder of the Company's current fiscal year. The Company's net gain from its investing activities for the first six months of 2002 was $227,262 as compared to a net gain from its investing activities of $355,250 for the first six months of 2001. This difference was primarily due to a lower level of average investment balances in 2002 compared to 2001, and lower prevailing interest rates in the U.S. Treasury Markets. As a consequence of the factors discussed above, the Company's net loss was $1,962,628 ($0.16 per share) for the first six months of 2002 as compared to $2,742,266 ($0.23 per share) for the first six months of 2001. Results of Operations for the Three-Month Periods Ended June 30, 2002 and 2001 The Company's fee income from licensing activities for the second quarter of 2002 was $28,125 as compared to $12,500 for the second quarter of 2001. Although sales of licensed products under some of the Company's license agreements have occurred during the second quarter of 2002, the earned royalties on such sales have not yet exceeded the minimum annual royalties payable by certain licensees under their license agreements, and/or are included as a royalty receivable on the Company's balance sheet since the license agreements in effect with the Company's licensees typically do not require the licensee to make payment of earned royalties on the sale of licensed products until 45 days after the end of the quarter in which such sales occurred. Operating expenses decreased by $440,837 for the second quarter of 2002 to $778,466 from $1,219,303 for the second quarter of 2001. This decrease was primarily the result of lower payroll, patent and office expenses, lower taxes and professional fees, offset somewhat by increased legal, marketing, public relations, travel and trade show expenses and stock listing fees. Research and development expenditures decreased by $293,119 to $409,860 for the second quarter of 2002 from $702,979 for the second quarter of 2001. This decrease was primarily the result of lower payroll and consulting expenses, and lower costs of materials. Operating expenses and research and development expenses listed above included amounts accrued under a performance bonus plan of $471,018 and $276,995, respectively during the second quarter of 2001. No amounts were accrued under the bonus plan with respect to the second quarter of 2002, and whether any bonuses will be paid by the Company will be determined based upon performance milestones achieved during the remainder of the Company's current fiscal year. The Company's net gain from its investing activities for the second quarter of 2002 was $118,440, as compared to a net gain from its investing activities of $161,388 for the second quarter of 2001. This difference was primarily due to a lower level of average investment balances in 2002 compared to 2001, and lower prevailing interest rates in the U.S. Treasury Markets. As a consequence of the factors discussed above, the Company's net loss was $1,041,761 ($0.09 per share) for the second quarter of 2002 as compared to $1,748,444 ($0.14 per share) for the second quarter of 2001. Financial Condition, Liquidity and Capital Resources During the first six months of 2002, the Company's cash and cash equivalent balance decreased by $473,822 principally as a result of cash used to fund the Company's operating activities of $1,951,677, and the repurchase and subsequent retirement of $1,520,447 worth of the Company's common stock in the open market, offset by $1,819,367 of proceeds received, net of expenses, from the issuance of common stock upon the exercise of options and warrants. At June 30, 2002, the Company had working capital of $6,308,823 and its shareholders' equity was $7,326,580. In December 2000, the Company's Board of Directors approved a performance bonus plan which provides for a bonus to be paid on or after July 2, 2001 and on or after January 2, 2002 equal to 1% of the increase, if any, in the Company's market value during the first and second halves of 2001. Bonuses are capped at a recipient's salary in the case of employees of the Company, and are currently capped at $60,000 in the case of non-employee directors and certain employees of the Company. The Company's Board of Directors approved a similar bonus plan for 2002 but with higher thresholds to be met before a bonus is payable under such plan. In addition to the payment caps described above, under the current plan, in order to insure that bonuses are not paid based upon temporary fluctuations in the market value of the Company, bonuses under this plan will only be paid to the various participants under this plan if and when the market value of the Company exceeds $280,489,009 (and in the case of any bonus paid to Robert L. Saxe, if and when the market value of the Company exceeds $304,207,362). As noted above, no bonuses are currently payable in connection with these plans so no amount has been accrued for. On October 1, 1998, the Company announced that Ailouros Ltd., a London-based institutional money management fund, has committed to purchase up to $15 million worth of common stock of the Company through December 31, 2001. This commitment is in the form of a Class A Warrant issued to Ailouros Ltd. which gives the Company the option in any three-month period to deliver a put notice to Ailouros requiring them to purchase an amount of common stock specified by the Company at a price equal to the greater of (A) 92% of the seven-day average trading price per share of common stock, or (B) a minimum or "floor" price per share set by the Company from time to time. The pricing was initially subject to an overall cap of $15 per share, which cap has now been eliminated by mutual agreement so that the Company may put stock to Ailouros at selling prices in excess of $15 per share. However, the Company is not required to sell any shares under the agreement. Before the beginning of each of a series of three-month periods specified by the Company, the Company determines the amount of common stock that the Company wishes to issue during such three- month period. The Company also sets the minimum selling or "floor" price, which can be reset by the Company in its sole discretion prior to the beginning of any subsequent three-month period. Therefore, at the beginning of each three-month period, the Company will determine how much common stock, if any, is to be sold (the amount of which can range from $0 to $1.5 million during such three-month period), and the minimum selling price per share. In March 2000, Ailouros agreed to expand its commitment beyond the original $15 million, thereby giving the Company the right to raise additional funds from Ailouros so long as the Company does not have to issue more shares than were originally registered with the Securities and Exchange Commission, and in December 2001 the expiration date of the Class A Warrant was extended to December 31, 2003. The Company expects to use its cash and the proceeds from maturities of its investments to fund its research and development of SPD light valves 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, 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. Based upon existing levels of expenditures, assumed ten percent annual increases therein, existing cash reserves and budgeted revenues, the Company believes that it would not require additional funding for the next 18 months to two years (without giving effect to any new financing raised). 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 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. Item 3. Quantitative and Qualitative Disclosures About Market Risk The information required by Item 3 has been disclosed in Item 7A of the Company's Annual Report on Form 10-K for the year ended December 31, 2001. There has been no material change in the disclosure regarding market risk. Related Party Transactions Statement of Financial Accounting Standards No. 57, "Related Party Disclosures" requires the Company to identify and describe material transactions involving related persons or entities and to disclose information necessary to understand the effects of such transactions on our consolidated financial statements. The Company has loaned two officers an aggregate of $152,961. Each of the aforementioned loans were made in April 1997 or prior thereto; are due in January 2003; relate to the purchase of common stock of the Company; are collateralized by the pledge of shares of common stock of the Company; may be prepaid in part or in full without notice or penalty; are represented by a promissory note which bears interest at a rate per annum equal to the broker call rate in effect on the first day of each calendar quarter; and permit repayment of the loan by delivery of securities of the Company having a fair market value equal to the balance of the loan outstanding. Forward Looking Statements The information set forth in this Report and in all publicly disseminated information about the Company, including the narrative contained in "Management's Discussion and Analysis of Financial Condition and Results of Operations" above, includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by that section. Readers are cautioned not to place undue reliance on these forward-looking statements as they speak only as of the date hereof and are not guaranteed. PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security-Holders The Annual Meeting of Stockholders of Research Frontiers Incorporated was held on June 13, 2002. Listed below is a summary of how the 12,180,895 shares voted at the Annual Meeting on the various proposals voted upon and adopted at the Annual Meeting. For the election of Robert L. Saxe as a Class III member of the Company's Board of Directors, 10,932,912 shares were voted in favor of election, and 419,320 votes were withheld. For the election of Robert M. Budin as a Class III member of the Company's Board of Directors, 10,917,044 shares were voted in favor of election, and 435,188 votes were withheld. For the ratification of the appointment of KPMG LLP as auditors for the 2002 fiscal year, 11,060,351 shares were voted in favor of election, 254,299 shares were voted against, and 37,582 shares abstained from voting. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits. None (b) Reports on Form 8-K. None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized. RESEARCH FRONTIERS INCORPORATED (Registrant) /s/ Robert L. Saxe Robert L. Saxe, Chairman and Treasurer (Principal Executive, Financial, and Accounting Officer) Date: August 14, 2002