UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                                    FORM 10-K

                ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) of
                     THE SECURITIES AND EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2006 Commission File Number 1-9399

                         RESEARCH FRONTIERS INCORPORATED
             (Exact name of registrant as specified in its charter)

                           DELAWARE                             11-2103466
               (State or other jurisdiction of              (I.R.S. Employer
               incorporation or organization)             Identification No.)

          240 CROSSWAYS PARK DRIVE
          WOODBURY, NEW YORK                                   11797-2033
     (Address of principal executive offices)                  (Zip Code)

        Registrant's telephone number, including area code (516) 364-1902

Securities registered pursuant to Section 12(b) of the Act:
                                                  Name of Exchange
     Title of Class                               on Which Registered
     Common Stock, $0.0001 Par Value    The NASDAQ Stock Market

           Securities registered pursuant to Section 12(g) of the Act:
                                     None
                                (Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer,
as defined in Rule 405 of the Securities Act.
Yes [  ] No [X]

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act.
Yes [  ] No [X]

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 by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.  [X]

Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the
Exchange Act. (Check one):

Large accelerated filer[] Accelerated filer[] Non-accelerated filer[X]

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Act).
Yes [  ]   No [X]

As of March 22, 2007 there were 15,318,601 shares of Research Frontiers
Incorporated common stock outstanding.  The aggregate market value of
the voting and non-voting common equity held by non-affiliates was
$67,624,682 computed in accordance with the rules of the SEC by
reference to the closing price of the Company's common stock as of June
30, 2006 which was $5.18. In making this computation, all shares known
to be owned by directors and executive officers of the Company and all
shares known to be owned by other persons holding in excess of 5% of the
Company's common stock have been deemed held by "affiliates" of the
Company. Nothing herein shall prejudice the right of the Company or any
such person to deny that any such director, executive officer, or
stockholder is an "affiliate."

                                  PART I

ITEM 1.                           BUSINESS

General

     Research Frontiers Incorporated ("Research Frontiers" or
the "Company") was incorporated in New York in 1965 and
reincorporated in Delaware in 1989. Research Frontiers'
business is to develop and license our suspended particle
technology for controlling the amount of light passing through a
device. Such suspended particle devices are often referred to as
"SPDs," "light valves," or "SPD-Smart " products.

     SPDs use microscopic light-absorbing particles that are
either in a liquid suspension or a film. The microscopic particles
align when an electrical voltage is applied. This permits light to
pass through the device, and allows the amount of light to be
controlled. The first light valve of this type was invented by Dr.
Edwin Land, founder of Polaroid Corporation, in the 1930s.
Since 1965, Research Frontiers has been actively working to
develop and license its own technology, which it protects using
patents, trade secrets and know-how. Although patent and trade
secret protection is not a guarantee of commercial success,
Research Frontiers currently has approximately 470 patents and
pending patent applications throughout the world protecting its
technology.

     As a result of our efforts over the years, Research Frontiers
Incorporated has become the world's leader in suspended-
particle-device development and research, and licenses its light-
control technology to other companies. Currently, our 34
licensees are categorized into three main areas: materials for
making films (emulsions); film; and end-products. Our emulsion
makers produce and combine the necessary materials (i.e. SPD
particles and various liquids and special polymers) from which
SPD films are made. The film makers use a thin layer of
emulsion, which is coated between two sheets of plastic film
coated with a transparent conductive coating, which emulsion is
then partly solidified to form an SPD film that allows users to
control the amount of light passing through such film. The end-
product licensees then incorporate such SPD light-control film
into a variety of SPD-Smart products or make electronic systems
to control such SPD-Smart products.

     The past several years have been important for Research
Frontiers as we moved from being a company with a technology
under development to a company with products using our
technology being sold by our licensees. The technology has also
received some prestigious awards, including the Best of What's
New Award for home technology products for 2002 from
Popular Science. It was also named one of the top new
technologies for 2002 by the Society of Automotive Engineers
and received the 2007 North American Frost & Sullivan Award
for Excellence in Technology.

     SPD-Smart windows have been installed in business and
commercial aircraft, as well as in architectural, automotive and
appliance glass projects. SPD technology is an "enabling"
technology cutting across many industries which has wide
commercial applications in many types of products where
variable light transmission is desired, such as:

- "smart" windows, skylights, partitions, doors, and
- sunshades for the architectural, aircraft, marine, automotive
  and appliance industries;
- variable light transmission sunglasses, goggles, visors and
  other eyewear;
- self-dimmable automotive sunroofs, sunvisors and rear-
  view mirrors; and
- flat panel information displays for use in billboards,
  scoreboards, point-of-purchase advertising displays, traffic
  signs, computers, televisions, telephones, PDAs and other
  electronic instruments.

     Various licensees of Research Frontiers have developed
SPD-Smart windows and other products. Several of our
licensees have already sold aircraft, architectural, marine and
automotive windows, skylights and doors, as well as glass doors
for appliances using SPD technology. Also, prototypes of flat
panel displays, eyewear, and self-dimming automotive rear-view
mirrors have been developed. These prototypes demonstrate the
feasibility and operation of the products they relate to, but need
additional product design, engineering or testing before
commercial products are introduced. Some of our licensees
consider the exact stage of development, product introduction
strategies and timetables, and other plans to be proprietary or
secret, and as such cannot be disclosed by the Company until
such licensees make their own public announcements or product
launches. Since 2002, marketing campaigns and product
launches by our licensees have been announced under the
indicated trademarks for their SPD-Smart products:

Licensee                       Trademark
Cricursa Cristales Curvados,SA Cri-Regulite
Dainippon Ink and Chemicals    Confoview
Innovative Glass Corporation   E-Glass
InspecTech Aero Service, Inc.  SPD-Equipped,I-Shade,
                               SPD-Shade,e-Shade
Isoclima S.p.A.                ChromaLite
Kerros Limited                 IntelliTint
SPD Control Systems Corp.      The Systems Behind the Glass,
                               Changing the Way You View Windows
SPD Technologies, Inc.         InfiniTint,New-View,
                               Smart-Shade
SPD Systems Inc.               Health Smart SPD Window,
                               VectorLux,InstaTint,
                               PowerTint
ThermoView Industries          Alter-Lite

In addition, Research Frontiers introduced various marketing
programs under the following trademarks: SPD-Smart,
SPD-SmartGlass, VaryFast, SmartGlass, The View of
the Future - Everywhere you Look, Powered by SPD, and
Visit SmartGlass.com - to change your view of the world.

     Our licensee InspecTech Aero Service Inc. reported that it
has received FAA certification for, and has already installed
SPD-Smart windows on, various aircraft. InspecTech reports
having installed or currently engineered SPD-Smart windows
for the following aircraft:

- Airbus A319, A320 and other aircraft
- Boeing 737,747, 757, BBJ and other aircraft
- Bombardier Challenger 601, 604
- Bombardier Global Ex
- Bombardier Learjet 24, 25, 31, 35, 36, 45, 55,60
- Cessna Citation I, II, III
- Cessna Conquest I, II
- Cessna Citations 525,525A, 550, Excel, 5 and CX
- Dassault Falcon 10, 50
- EADS Eurocopter EC 155
- Gulfstream (all models)
- Piaggio P180 Avanti, and Pilatus PC-12
- Raytheon Beechjet
- Raytheon Hawker 700, 800
- Raytheon King Air 90, 100, 200, 350
- Sikorsky S-92 Helicopter
- Bell 430 Helicopter

     Starting in 2003, the number of aircraft incorporating
window shades using SPD-Smart technology increased, and the
number of additional aircraft for which SPD-Smart electronic
window shades have been designed and engineered also
increased. In addition, several of the world's largest jet
manufacturers have announced their interest to include
electronic smart window shades in their aircraft. These
electronic window shades may use SPD technology, or may use
other technologies such as electrochromic technology or electro-
mechanical window shades. Project architects and developers
have begun to specify more SPD-Smart glass in their projects,
and both the number and size of these projects is increasing.
Also, starting in late 2003, certain automakers have begun to
incorporate SPD-Smart glass in production and concept
vehicles, with some of these concept vehicles being exhibited at
major auto shows. There is a growing trend towards using more
glass in architectural and automotive applications, including the
introduction of panoramic roof systems and larger sunroofs for
transportation vehicles. SPD-Smart technology can provide
effective shading, glare control and heat management solutions
for these larger glass areas. SPD-Smart windows have also
begun to be used in yachts as well. The Company has also seen
the adoption rate in terms of number of licensees, as well as the
size of the organizations becoming licensees, increase. Also,
products using SPD-Smart technology continue to be exhibited
at trade shows, conferences, and industry events, with such
products not only being exhibited by our licensees, but also by
their customers and by original equipment manufacturers. While
there can be no assurance that these trends will continue, to the
extent that they do continue, they each should have a beneficial
effect on future fee income for the Company. In April 2004,
SPD Inc., which was at that time, the sole manufacturer of SPD-
Smart light control film and a subsidiary of Hankuk Glass
Industries, a former licensee of the Company, announced that it
was ceasing its business activities. Therefore, sales of SPD-
Smart products by licensees of the Company during most of
2004, 2005 and 2006 were curtailed as these licensees filled
customer orders out of existing inventory of SPD-Smart light
control film made by SPD Inc. while awaiting production of the
next-generation emulsion-based SPD-Smart light control film
with improved performance characteristics. On February 1,
2007, Hitachi Chemical Company jointly announced with
Innovative Glass Corp. that Hitachi Chemical was shipping rolls
of wide-width SPD-Smart film from its high-capacity coating
lines in Ibaraki, Japan. On February 9, 2007, Raytheon Aircraft
Company announced that it was offering SPD-Smart electronic
window shades manufactured by InspecTech Aero Service on
Raytheon's  Beechcraft  King Air aircraft.

     The following table summarizes Research Frontiers'
existing license agreements and lists the year these agreements
were entered into:


Licensee                 Products Covered                              Territory

Air Products and    SPD emulsions and films for other licensees (2003) Worldwide
Chemicals, Inc.

American Glass Products  Architectural and automotive windows (2002)   Worldwide
                                                                  (except Korea)


Asahi Glass Company    SPD-Smart automotive windows and sunroofs(2006)Worldwide

AGC Automotive Americas  Sunroof glass for other licensees (2001)      Worldwide
(f/k/a AP Technoglass Co.))

Avery Dennison Corp.     SPD displays (2001)                           Worldwide

BOS GmbH                 Variable light transmission SPD sunshades     Worldwide
                         and sunvisors.  (2002)

BRG Group, Ltd.          Architectural and automotive windows (2002)   Worldwide
                                                                  (except Korea)

Cricursa Cristales Curvados Architectural and automotive windows(2002) Worldwide
                                                                  (except Korea)

Custom Glass Corporation  Windows and sunroofs for mass                Worldwide
                          transit trains/busses; SPD film         (except Korea)
                          lamination for other licensees (2003)

Dainippon Ink and        SPD emulsions (1999) and films (2006)         Worldwide
Chemicals Incorporated   for other licensees

E.I. DuPont de Nemours   Architectural and automotive windows;SPD    Worldwide
                         emulsions and films for other licensees (2004)

Film Technologies Int'l  SPD film for other licensees and              Worldwide
                         prospective licensees (2001)

Glaverbel, S.A.          Automotive vehicle rear-view mirrors,         Worldwide
                         transportation vehicle sunvisors, and    (except  Korea
                         architectural and automotive windows(1996) for windows)

Global Mirror GmbH       Rear-view mirrors and sunvisors (1999)        Worldwide


Hitachi Chemical Co.,Ltd SPD emulsions and films for other             Worldwide
                         licensees (1999)

Innovative Glass Corp.   Architectural windows (2003)                 US,Canada,
                                                                      and Mexico

InspecTech Aero Service  Aircraft and marine windows and cabin        Worldwide
                         dividers (2001)                          (except Korea)

Isoclima S.p.A.          Architectural and automotive windows; SPD     Worldwide
                         emulsion and film for other              (except Korea)
                         licensees (2002)

Kerros Limited           Automotive windows and sunroofs (2003)        Worldwide
                                                                  (except Korea)
                                                                for  aftermarket
                                                                   and UK only
                                                                     for OEMs

Laminated Technologies Inc. SPD film lamination for
                            other licensees (2002)                     Worldwide


Leminur Limited          Architectural windows (2003)                 Russia and
                                                                    Countries of
                                                                   former Soviet
                                                                        Union

N.V. Bekaert S.A (acquired   Architectural and automotive windows,     Worldwide
from Material Sciences Corp.)SPD film for other licensees, prospective
                             licensees and architectural and automotive
                             window companies (1997)

Nippon Sheet Glass Co., Ltd   SPD film for other licensee (2004)      Worldwide

Pilkington plc           SPD film lamination for other licensee (2004)Worldwide

Polaroid Corporation      SPD emulsions and films for other            Worldwide
                          licensees (2000)

Prelco Inc.              Architectural windows,train and bus windows  US,Canada,
                                                        (2004)       and Mexico

Saint-Gobain Glass France Architectural windows, automotive and other  Worldwide
                          transportation vehicle windows (other than     (except
                          aircraft and spacecraft), kitchen and laundry   Korea)
                          home appliance windows, and automotive sunvisors
                          and rear-view mirrors for cars, SUVs, light
                          trucks and other transportation vehicles (other
                          than as original equipment mirrors on heavy trucks,
                          busses, construction vehicles, firetrucks and other
                          vehicles in Class 5-8 or weighing over 16,000
                          pounds) (2003)

SmartGlass International Ltd Architectural windows(2007) Ireland,United Kingdom

SPD Control Systems Corp Electronics and building control systems(2005)Worldwide

SPD Technologies, Inc.    Architectural windows (2002)                 Worldwide
(f/k/a Razor's Edge                                               (except Korea)
Technologies, Inc.)

SPD Systems, Inc.    Architectural, appliance and marine windows (2002)Worldwide
                                                                  (except Korea)

ThermoView Industries, Inc.   Architectural windows (2000)             Worldwide
                                                                  (except Korea)

Traco, Inc.              Architectural windows (2003)                  Worldwide
                                                                  (except Korea)

     Licensees of Research Frontiers who incorporate SPD
technology into end-products will pay Research Frontiers a
royalty of 5-15% of net sales of licensed products under license
agreements currently in effect, and may also be required to pay
Research Frontiers fees and minimum annual royalties.
Licensees who sell components (such as SPD emulsion or film)
to other licensees of Research Frontiers do not pay a royalty on
such sale and Research Frontiers will collect such royalty from
the licensee incorporating such components into their own SPD-
Smart end-products. Research Frontiers' license agreements
typically allow the licensee to terminate the license after some
period of time, and give Research Frontiers only limited rights
to terminate before the license expires. The licenses granted by
the Company are non-exclusive and generally last as long as our
patents remain in effect. Due to their bankruptcy filings or other
termination of their general business activities or other reasons,
the Company does not believe that Polaroid, Kerros,
ThermoView, SmartGlass Ireland, BRG, and SPD Technologies
are pursuing any business activities with respect to SPD
technology. Some of the Company's other licensees are
currently inactive with respect to SPD technology, but may
hereafter become active again. Global Mirror's license restricts
new licenses from being granted in the truck mirror original
equipment market for a period of time if certain sales milestones
are met with respect to commercial vehicles in Classes 5 through
8 with gross vehicle weights in excess of 16,000 pounds.  To
date, the Company has not generated sufficient revenue from its
licensees to profitably fund its operations.

     Although the Company believes based upon the status of
current negotiations that additional license agreements with third
parties will be entered into, there can be no assurance that any
such additional license agreements will be consummated, or the
extent that any current or future licensee of the Company will
produce or sell commercial products using the Company's
technology or generate meaningful revenue from sales of such
licensed products.

     The Company plans to continue to exploit its SPD light
valve technology by entering into additional license and other
agreements with end-product manufacturers such as
manufacturers of flat glass, flat panel displays, automotive
products, and with other interested companies who may wish to
acquire rights to manufacture and sell the Company's
proprietary emulsions and films. The Company's plans also call
for further development of its SPD light valve technology and
the provision of additional technological and marketing
assistance to its licensees to develop commercially viable
products using SPD technology and expand the markets for such
products. The Company cannot predict when or if new license
agreements will be entered into or the extent to which
commercial products will result from its existing or future
licensees because of the risks inherent in the developmental
process and because commercialization is dependent upon the
efforts of its licensees as well as on the continuing research and
development efforts of the Company.

     On March 22, 2007 the Company had eleven full-time
employees, four of whom are technical personnel, and the rest of
whom perform legal, marketing, investor relations, and
administrative functions. Of these employees, one has obtained a
doctorate in chemistry, one has a masters in chemistry, one has
extensive industrial experience in electronics and electrical
engineering, and one has majored in physics. Three employees
also have additional postgraduate degrees in business
administration, including one doctorate in organization and
management. Also the Company's suppliers and licensees have
people on their teams with advanced degrees in a number of
areas relevant to the commercial development of products using
the Company's technology. The success of the Company is
dependent on, among other things, the services of its senior
management, the loss of whose services could have a material
adverse effect upon the prospects of the Company.

     The Company believes that its SPD light valve technology
has certain performance advantages over other technologies for
so-called "smart windows," windows which electrically vary the
amount of light passing through them, and automatically self-
dimmable automotive rear-view mirrors.

     Variable light transmission technologies can be classified
into two basic types: "active" technologies that can be controlled
electrically by the user either automatically or manually, and
"passive" technologies that can only react to ambient
environmental conditions such as changes in lighting or
temperature. One type of passive variable light transmission
technology is photochromic technology; such devices change
their level of transparency in reaction to external ultra-violet
radiation. As compared to photochromic technology, the
Company's technology permits the user to adjust the amount of
light passing through the viewing area of the device rather than
merely reacting to external radiation. In addition, the reaction
time necessary to change from light to dark with SPDs can be
almost instantaneous, as compared to the much slower reaction
time for photochromic devices. Unlike SPD technology,
photochromic technology switches very slowly and does not
function well at the high and low ends of the temperature range
in which smart windows and other devices are normally
expected to operate.

     The active, user-controllable technologies are sometimes
referred to as "smart" technologies.  These active technologies
are far more useful because they can be controlled electrically
by a user with a manual adjustment or automatically when
coupled with a timer or sensing device such as a photocell,
motion detector or thermostat. There are three main types of
active devices which are compared below:

- Electrochromic devices (EC)
- Liquid crystal devices (LC)
- Suspended-particle devices (SPD)

Electrochromic Technology: When compared to electrochromic
windows and rear-view mirrors, which use a direct current
voltage to alter the molecular structure of electrochromic
materials (which can be in the form of either a liquid, gel or
solid film) causing the material to darken, SPDs have numerous
potential performance, manufacturing and cost advantages. In
comparing the Company's SPD light valves to electrochromic
technologies, SPDs are expected to have some or all of the
following advantages:

-faster response time
-consistent switching speed regardless of size of viewing area
-lower estimated costs
-more reliable performance over a wider temperature range
-capability of achieving darker off-states
-default state (state requiring no power) is dark, maximizing
 solar heat gain benefits
-lower current drain
-higher estimated battery life in applications where batteries
 are used
-no "iris effect" (where light transmission changes first
 occur at the outer edges of a window or mirror and then
 work their way toward the center) when changing from
 clear to dark and back again
-ability to be able to "tune" intermediate light-transmission
 states
-SPD technology is a film-based technology that can be
 applied to plastic as well as glass, and which can be applied
 to curved as well as flat surfaces.

Many companies with substantially greater resources than
Research Frontiers such as 3M, Asahi Glass, Gentex Corp.,
Pilkington, PPG Industries, Saint-Gobain Glass and other large
corporations have pursued or are pursuing projects in the
electrochromic area. Some of these companies have reportedly
discontinued or substantially curtailed their work on
electrochromics due to technical problems and issues relating to
the expense of these technologies. At least four companies,
Saint-Gobain Glass, Sage Electrochromics, Inc., Gentex Corp.
and PPG Industies  are currently actively working to
commercialize electrochromic window products.

Liquid Crystal Technology: To date, the main types of liquid
crystal smart windows have been produced by Taliq Corp. (a
subsidiary of Raychem Corp. which has since discontinued its
liquid crystal operations and licensed its technology to others),
Asahi Glass Co., Nippon Sheet Glass, Saint-Gobain Glass,
Polytronix, Inc., DMDisplays and 3M (which has also
reportedly discontinued its liquid crystal film making
operations). These windows are expensive and only change from
a cloudy, opaque milky-white to a clear state, are hazy when
viewed at an angle and have no useful intermediate states. As
compared to liquid crystal windows, SPD smart windows
should:

-be less expensive to produce
-have less haze
-operate over a wider temperature range
-use less power
-absorb and shade light, rather than simply scattering it
-permit an infinite number of intermediate states between a
 transparent state and a dark blue state, rather than being just
 "on" or "off" like LC windows.

     In the flat panel display market, the Company also expects
to compete against various display technologies that are
currently being used commercially. In particular, the Company
expects its SPD technology to compete on the basis of the
performance characteristics with liquid crystal displays
("LCDs") and organic light emitting diodes ("OLEDs"). An
LCD is generally similar in construction to an SPD display, but
instead of a liquid or film suspension, it utilizes an organic
material called a liquid crystal which, although comprised of
molecules that flow like a liquid, has some of the characteristics
of solid crystals. Like SPD displays, LCDs are "passive" devices
which do not generate light, but merely reflect or modulate
existing light. OLEDs emit light rather than transmit it, and
unlike LCDs but similar to SPD displays, OLEDs promise to
have wide viewing angles and low power consumption.
However, several technological and manufacturing hurdles
remain in the production of OLEDs including limited life
expectancy, sensitivity to degradation from exposure to air and
water, and cost. The market for flat panel displays was estimated
by others to have been approximately $86 billion for 2006.
Because of further development work to be done in this area, the
Company cannot estimate when its licensees may begin to
penetrate the flat panel display market.

     The Company believes that its SPD light valves and related
technology have significant advantages over existing display
devices and related technology. In comparison to existing
twisted nematic type LCDs, the Company's SPD displays are
believed to have:

-higher contrast and brightness
-a wider angle of view
-lower estimated production costs
-a less complex fabrication procedure
-the ability to function over a wider temperature range
-the ability to make displays without using sheet polarizers
 or alignment layers
-lower light loss and a corresponding reduction in
  backlighting requirements.

With respect to other types of displays which emit their own
light, such as light-emitting diodes (LEDs) and cathode ray
tubes (CRTs), the Company's SPD light valves should have the
advantages of lower power consumption and make possible
larger displays that are easier to read in bright light.

     LCDs and other types of displays, liquid crystal windows,
as well as electrochromic self-dimmable rear-view mirrors, are
already on the market, whereas products incorporating SPD
technology (as well as electrochromic windows) have only
begun to appear in the marketplace, so long-term durability and
performance of SPD light valves have not yet been fully
ascertained. The companies manufacturing LCD and other
display devices, liquid crystal windows, and electrochromic self-
dimmable rear-view mirrors and windows, have substantially
greater financial resources and manufacturing experience than
the Company. There is no assurance that comparable systems
having the same advantages of the Company's SPD light valves
could not be developed by competitors at a lower cost or that
other products could not be developed which would render the
Company's products difficult to market or technologically or
otherwise obsolete.

     In each of the last three fiscal years the Company has
devoted substantially all of its time to the development of one
class of products, namely SPD light control technology, and
therefore revenue analysis by class is not provided herein.

     The Company does not believe that future sales will be
seasonal in any material respect. Due to the nature of the
Company's business operations and the fact that the Company is
not presently a manufacturer, there is no backlog of orders for
the Company's products.

     The Company believes that compliance with federal, state
and local provisions which have been enacted or adopted
regulating the discharge of materials into the environment, or
otherwise relating to the protection of the environment, will not
have a material effect upon the capital expenditures, earnings
and competitive position of the Company. The Company has no
material capital expenditures for environmental control facilities
planned for the remainder of its current fiscal year or its next
succeeding fiscal year.

Research and Development

    As a result of the Company's research and development
efforts, the Company believes that its SPD light valves are now,
or with additional development will become, usable in a number
of commercial products. Such products may include one or more
of the following fields: "smart" windows, variable light
transmission eyewear such as sunglasses and goggles, self-
dimmable automotive sunroofs, sunvisors and mirrors, and
instruments and other information displays that use digits,
letters, graphic images, or other symbols to supply information,
including scientific instruments, aviation instruments,
automobile dashboard displays and, if certain improvements can
be made in various features of the Company's SPD light valves,
portable computer displays and flat panel television displays.
The Company believes that most of its research and
development efforts have applicability to products that may
incorporate the Company's technology. Based upon the current
SPD-Smart products being prepared for sale by various of its
licensees, the Company believes that the state of development of
its technology is sufficiently advanced, but that further
improvements will result in accelerated market penetration. The
Company intends to continue its research and development
efforts for the foreseeable future to improve its SPD light valve
technology and thereby assist our licensees in the product
development, sales and marketing of various existing and new
SPD-Smart products.

    During the past year, the Company has made significant
advances relating to materials to enable  (1) improved stability
of SPD emulsions, (2) a wide range of light transmission, and
(3) improved film adhesion and cohesion.

    The Company has devoted most of the resources it has
heretofore expended to research and development activities with
the goal of producing commercially viable light valves and
already has developed working prototypes of its SPD light
valves for several different applications, with primary emphasis
on smart windows for various applications.

Research Frontiers' main goals in its research and development
are:

-developing wider ranges of light transmission and quicker
 switching speeds;
-developing different colored particles;
-reducing the voltage required to operate SPDs; and
-obtaining data and developing improved materials
 regarding environmental stability and longevity.

Research Frontiers incurred approximately $1,171,000,
$1,392,000, and $1,683,000 during the years ended December
31, 2006, 2005, and 2004, respectively, for research and
development. Research Frontiers plans to engage in substantial
continuing research and development activities.

Patents and Proprietary Information

    The Company has 32 United States patents in force, and six
United States patent applications are pending. The Company's
United States patents expire at various dates from 2008 through
2023. The Company has approximately 229 issued foreign
patents and 205 foreign and international patent applications
pending. The Company's foreign patents expire at various dates
from 2008 through 2022. The Company believes that its SPD
light valve technology is adequately protected by its patent
position and by its proprietary technological know-how.
However, the validity of the Company's patents has never been
contested in any litigation. To a lesser extent, the Company
relies on trade secrets and nondisclosure agreements to protect
its technology. The Company generally requires any employee,
consultant, or licensee having access to its confidential
information to execute an agreement whereby such person
agrees to keep such information confidential.

Rights Plan

    In February 2003, the Company's Board of Directors
adopted a Stockholders' Rights Plan and declared a dividend
distribution of one Right for each outstanding share of Company
common stock to stockholders of record at the close of business
on March 3, 2003. Subject to certain exceptions listed in the
Rights Plan, if a person or group has acquired beneficial
ownership of, or commences a tender or exchange offer for,
15% or more of the Company's common stock, unless redeemed
by the Company's Board of Directors, each Right entitles the
holder (other than the acquiring person) to purchase from the
Company $120 worth of common stock for $60. If the Company
is merged into, or 50% or more of its assets or earning power is
sold to, the acquiring company, the Rights will also enable the
holder (other than the acquiring person) to purchase $120 worth
of common stock of the acquiring company for $60. The Rights
will expire at the close of business on February 18, 2013, unless
the Rights Plan is extended by the Company's Board of
Directors or unless the Rights are earlier redeemed by the
Company at a price of $.0001 per Right. The Rights are not
exercisable during the time when they are redeemable by the
Company. The above description highlights some of the features
of the Company's Rights Plan and is not a complete description
of the Rights Plan. A more detailed description and a copy of the
Rights Plan is available from the Company upon request.

ITEM 1A.      RISK FACTORS

    In addition to the other information in this Annual Report
on Form 10-K, you should carefully consider the following
factors in evaluating us and our business. This Annual Report
contains, in addition to historical information, forward-looking
statements that involve risks and uncertainties. Our actual results
could differ materially. Factors that could cause or contribute to
such differences include, but are not limited to, those discussed
below, as well as those discussed elsewhere in this Annual
Report, including the documents incorporated by reference.

    There are risks associated with investing in companies such
as ours who are engaged in research and development. In
addition to risks which could apply to any company or business,
you should also consider the business we are in and the
following:

    Research Frontiers has a history of operating losses,
expects to incur additional losses in the future, and consequently
will need additional funds in the future to continue its
operations. To date, Research Frontiers has lost money, and we
expect to lose money in the foreseeable future. Because we
expect that our future revenues will consist primarily of license
fees (which have not been significant to date), unless our
licensees produce and sell products using our technology,
Research Frontiers will not be profitable. There is no guarantee
that we will ever be profitable. Since Research Frontiers was
started in 1965 through December 31, 2006, its total net loss was
$62,236,531. Our net loss was $3,303,633, $3,747,532 and
$4,262,741 in 2006, 2005, and 2004, respectively.

    We have funded our operations by selling our common
stock to investors. If we need additional money, there is no
guarantee that it will be available when we need it, or on
favorable terms. Without giving effect to the raising of
additional capital in the future, the Company would have to raise
additional capital no later than towards the end of 2009 if
operations, including research and development and marketing,
are to be maintained at current levels. Eventual success of the
Company and generation of positive cash flow will be
dependent upon the extent of commercialization of products
using the Company's technology by the Company's licensees
and payments of continuing royalties on account thereof.

    Research Frontiers depends upon the activities of its
licensees in order to be profitable. We do not directly
manufacture or market products using SPD technology.
Although a variety of products have been sold by our licensees,
and since it is up to our licensees to decide when and if they will
introduce products using SPD technology, we cannot predict
when and if our licensees will generate substantial sales of such
products. Research Frontiers' SPD technology is currently
licensed to 34 companies. Other companies are also evaluating
the technology for use in various products. In the past, some
companies have evaluated our technology without proceeding
further. Also, we do not intend to manufacture products using
SPD technology. Instead we intend to continue to license our
technology to manufacturers of end products, films and
emulsion. We expect that our licensees would be primarily
responsible for marketing and manufacturing, but we are also
engaging in market development activities.

    Products using SPD technology have only recently been
introduced into the marketplace. Developing products using new
technologies can be risky because problems, expenses and
delays frequently occur. Research Frontiers cannot control
whether or not its licensees will develop SPD products. Some of
our licensees appear to be more active than others, some appear
to be better capitalized than others, and some licensees appear to
be inactive. There is no guarantee when or if our licensees will
successfully produce any commercial product using SPD
technology.

    SPD technology is the only technology Research Frontiers
works with, so that our success depends upon the viability of
SPD technology which has yet to be proven. We have not fully
ascertained the performance and long-term reliability of our
technology, and therefore there is no guarantee that our
technology will successfully be incorporated into all of the
products which we are targeting for use of SPD technology. We
expect that different product applications for SPD technology
will have different performance and reliability specifications.
For example, SPD eyewear requiring batteries may need to use
lower voltages than SPD windows used in homes or offices, yet
may not need to last as long or be exposed to as harsh an
environment. We expect that our licensees will primarily be
responsible for reliability testing, but that we may also continue
to do reliability testing so that we can more effectively focus our
research and development efforts towards constantly improving
the performance characteristics and reliability of products using
SPD technology.

ITEM 2.       PROPERTIES

    The Company currently occupies approximately 9,500
square feet of space at an annual rental which in 2006 was
approximately $169,000 for its executive office and research
facility at 240 Crossways Park Drive, Woodbury, New York
11797 under a lease expiring January 31, 2014. The Company
believes that its space, including its laboratory facilities, is
adequate for its present needs.

ITEM 3.       LEGAL PROCEEDINGS

   There are no legal proceedings pending by or against the Company.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    None

                           PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCK HOLDER
         MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

(a) Market Information

    (1)  The Company's common stock is traded on the
NASDAQ Capital Market. As of March 22, 2007, there were
15,318,601 shares of common stock outstanding.

    (2)  The following table sets forth the range of the high and
low selling prices (as provided by the National Association of
Securities Dealers) of the Company's common stock for each
quarterly period within the past two fiscal years:

         Quarter Ended               Low            High
         March 31, 2005             5.00           6.59
         June 30, 2005              2.76           5.75
         September 30, 2005         2.55           3.50
         December 31, 2005          3.18           7.00
         March 31, 2006             3.59           6.32
         June 30, 2006              3.71           6.49
         September 30, 2006         4.00           5.25
         December 31, 2006          4.05           6.82
         These quotations may reflect inter-dealer prices, without retail
         mark-up, mark-down, or commission, and may not necessarily
         represent actual transactions.

(b) Approximate Number of Security Holders

    As of March 22, 2007, there were 566 holders of record
of the Company's common stock. The Company estimates that
there are approximately 6,000 beneficial holders of the
Company's common stock.

(c) Dividends

    The Company did not pay dividends on its common stock
in 2006 and does not expect to pay any cash dividends in the
foreseeable future. There are no restrictions on the payment of
dividends.

(d) Issuer Purchases of Equity Securities

    None.

ITEM 6.       SELECTED FINANCIAL DATA

    The following table sets forth selected data regarding the
Company's operating results and financial position. The data
should be read in conjunction with Management's Discussion
and Analysis of Financial Condition and Results of Operations
and the consolidated financial statements and notes thereto, all
of which are contained in this Annual Report on Form 10-K.

                                          Year ended December 31,
                               2006        2005     2004       2003      2002
Statement of Operations Data:
 Fee income              $  162,639 $  138,742 $  201,321 $  258,187 $ 217,519
 Operating expenses       2,383,856  2,624,379  2,633,534  2,537,317 2,631,139
 Research and development 1,170,503  1,391,657  1,682,624  1,908,753 1,859,030
 Charge for reduction in value
  of investment in SPD Inc.(1)   --         --    165,501    615,200        --
                          3,554,359  4,016,036  4,481,659  5,061,270 4,490,169
 Operating loss           3,391,720)(3,877,294)(4,280,338)(4,803,083)(4,272,650)
 Net investment income (2)   88,087    129,762     17,597     30,775    321,534

 Net loss                (3,303,633)(3,747,532)(4,262,741)(4,772,308)(3,951,116)

Basic and diluted net loss
  per common share             (.24)     (.27)       (.33)      (.38)      (.33)
Dividends per share              --        --          --         --         --

                                          As of December 31,
                              2006       2005     2004       2003      2002
Balance Sheet Data:
 Total current asset    $ 3,126,381 $3,823,093  $2,716,964 $5,322,083$5,293,629
 Total assets             3,251,637  3,957,205   2,860,673  5,690,270 6,267,051
 Long-term debt, including
  accrued interest               --         --          --         --        --
Total shareholders'equity 2,992,621  3,646,254   2,392,303  5,469,427 5,974,466

(1)  Reflects a non-cash charge against income of $615,200 recorded
     by the Company in the first quarter of 2003 to reflect a reduction
     in the value of its investment in SPD Inc. determined based upon
     recent financing activity of SPD Inc. The Company also recorded
     a further non-cash charge against income of $209,704 during the
     first quarter of 2004. During the fourth quarter of 2004, the
     Company received a payment of $44,203 as part of a liquidation
     distribution made by SPD Inc. to its shareholders, resulting in a
     total net non-cash charge against income of $165,501 in 2004.

(2)  Net investment income for 2002 includes $64,608 of interest
     income received from officers of the Company upon payment of
     notes receivable.


     ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     Critical 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."

   The Company has entered into a number of license
agreements covering potential products using the Company's
SPD technology. The Company receives fees and 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.

  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 indirect overhead
expenses.

  The Company has historically used the Black-Scholes
option-pricing model to determine the estimated fair value of
each option grant. The Black-Scholes model includes
assumptions regarding dividend yields, expected volatility,
expected lives, and risk-free interest rates. These assumptions
reflect our best estimates, but these items involve uncertainties
based on market conditions generally outside of our control.  As
a result, if other assumptions had been used in the current
period, stock-based compensation expense could have been
materially impacted.  Furthermore, if management uses different
assumptions in future periods, stock-based compensation
expense could be materially impacted in future years.

  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 Emerging
Issues Task Force 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 Company applied the cost method of accounting for its
minority equity interest in SPD Inc., a subsidiary of Hankuk
Glass Industries, Inc. Because no public market existed for the
common stock of SPD Inc., the Company reviewed the
operating performance, financing and forecasts for such entity in
assessing the net realizable value of this investment. During
2003, the Company recorded  total non-cash accounting charges
of $615,200 against income to reflect a reduction in the value of
its investment in SPD Inc. These non-cash charges were
determined as follows: During the first quarter of 2003, the
Company recorded a  non-cash charge against income of
$255,200 to reflect a reduction in the value of its investment in
SPD Inc. determined based upon recent financing activity of
SPD Inc. The Company also recorded a further non-cash charge
against income of $360,000 as of the end of 2003 to reflect a
reduction in the value of its investment in SPD Inc.  determined
based upon its review of the financial position and results of
operations of SPD Inc. as of and for the year ended December
31, 2003.  On April 28, 2004, SPD Inc. informed the Company
that it was planning to sell its equipment and other assets and
cease its business activities. As a result, the Company wrote off
its entire remaining investment in SPD Inc. of $209,704 in the
first quarter of 2004. During the fourth quarter of 2004, the
Company received a payment of $44,203 as part of a liquidation
distribution made by SPD Inc. to its shareholders, resulting in a
total net non-cash charge against income of $165,501 in 2004.

  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

Year ended December 31, 2006 Compared to the Year ended December 31, 2005

  The Company's fee income from licensing activities for
2006 was $162,639, as compared to $138,742 for 2005. This
difference in fee income was primarily the result of the timing
and amount of minimum annual royalties paid, and the date of
receipt of such payment on certain license agreements, by end-
product licensees. Certain license fees, which are paid to the
Company in advance of the accounting period in which they are
earned resulting in the recognition of deferred revenue for the
current accounting period, will be recognized as fee income in
future periods. Also, licensees may offset some or all of their
royalty payments on sales of licensed products for a given
period by applying these advance payments towards such earned
royalty payments.

  Operating expenses decreased by $240,523 for 2006 to
$2,383,856 from $2,624,379 for 2005. This decrease was
primarily the result of lower insurance (lower by approximately
$71,500 primarily the result of a change in medical insurance
carriers), consulting (decreased by approximately $96,5000,
patent (lower by approximately $39,000) and  depreciation
expenses, and lower stock listing fees (reduced by
approximately $61,000 as a result of the movement of the
Company's listing from the Nasdaq National Market to the
Nasdaq Capital Market).

  Research and development expenditures decreased by
$221,154 to $1,170,503 for 2006 from $1,391,657 for 2005.
This decrease was primarily the result of decreased payroll
(lower by approximately $81,000 primarily the result of the net
reduction in technical staff size by one employee), depreciation,
materials (lower by approximately $87,500), consulting
(decreased by approximately $12,000) and insurance expenses
(lower by approximately $67,500 primarily the result of a
change in medical insurance carriers).

  Investment income for 2006 was $88,087 as compared to a
net gain from its investing activities of $129,762 for 2005. This
difference was primarily due to lower cash balances available to
invest, partially offset by higher interest rates during 2006.

  As a consequence of the factors discussed above, the
Company's net loss was $3,303,633 ($0.24 per share) for 2006
as compared to $3,747,532 ($0.27 per share) for 2005.

Year ended December 31, 2005 Compared to the Year ended December 31, 2004

  The Company's fee income from licensing activities for
2005 was $138,742, as compared to $201,321 for 2004. This
difference in fee income was primarily the result of the timing
and amount of minimum annual royalties paid, and the date of
receipt of such payment on certain license agreements, by end-
product licensees. Certain license fees, which are paid to the
Company in advance of the accounting period in which they are
earned resulting in the recognition of deferred revenue for the
current accounting period, will be recognized as fee income in
future periods. Also, licensees may offset some or all of their
royalty payments on sales of licensed products for a given
period by applying these advance payments towards such earned
royalty payments.

  Operating expenses decreased by $9,155 for 2005 to
$2,624,379 from $2,633,534 for 2004. This decrease was
primarily the result of lower marketing, accounting, depreciation
and insurance expenses, partially offset by higher  payroll,
consulting, and patent expenses, and higher stock listing fees
and reserves for bad debts.

  Research and development expenditures decreased by
$290,967 to $1,391,657 for 2005 from $1,682,624 for 2004.
This decrease was primarily the result of decreased payroll
(reduced by approximately $107,000 primarily the result of a
reduction in salary of one employee and the net reduction in
technical staff size by one employee), depreciation, and other
allocated office expenses partially offset by higher materials
expense (increased by approximately $66,000).

  Investment income for 2005 was $129,762 as compared to
a net gain from its investing activities of $17,597 for 2004. This
difference was primarily due to higher interest rates during 2005
and higher cash balances due to the receipt of proceeds from the
sale of common stock and warrants in February 2005.
Investment income for 2004 was $30,097 prior to a write-down
of $12,500 in the Company's investment in common stock of
ThermoView Industries.

  During 2004, the Company recorded total non-cash
accounting charges of $165,501 against income to reflect a
reduction in the value of its investment in SPD Inc.

  As a consequence of the factors discussed above, the
Company's net loss was $3,747,532 ($0.27 per share) for 2005
as compared to $4,262,741 ($0.33 per share) for 2004.

Financial Condition, Liquidity and Capital Resources

  During 2006, the Company's cash and cash equivalent
balance decreased by $644,164 principally as a result of cash
used to fund the Company's operating activities of $3,265,358,
partially offset by $2,650,000 of net proceeds received from the
issuance of common stock.  At December 31, 2006, the
Company had working capital of $2,867,365 and its
shareholders' equity was $2,992,621.

  During 2005, the Company's cash and cash equivalent
balance increased by $1,042,622 principally as a result of
$5,000,000 of net proceeds received from the issuance of
common stock and warrants, offset by cash used to fund the
Company's operating activities of $3,920,835.  At December 31,
2005, the Company had working capital of $3,512,142 and its
shareholders' equity was $3,646,254.

  The Company occupies premises under an operating lease
agreement which expires on January 31, 2014 and requires
minimum annual rent which rises over the term of the lease to
approximately $176,669, plus tenant's share of applicable taxes.
These lease obligations are summarized over time as of
December 31, 2006:

                                       Payments due by period
                           <1 year 1-3 years 4-5 years >5 years Total
Operating lease obligations 162,000  500,000  344,000  192,000  1,198,000

  In February 2007, the Company raised $6,650,000 in net
proceeds in connection with the registered sale to accredited
investors of 682,102 shares of its common stock. In August
2006, the Company raised $2 million in capital ($1,950,000 in
net proceeds after deducting expenses related to the offering) in
connection with the registered sale to accredited investors of
515,462 shares of its common stock. In October 2006, the
Company raised an additional $700,000 in net proceeds in
connection with the registered sales to accredited investors of
179,487 shares of its common stock. In February 2005, the
Company raised $5 million in net proceeds in connection with
the registered sale to institutional investors of one million shares
of its common stock and the issuance of five-year warrants to
purchase 200,000 shares of common stock at an exercise price
of $7.50 per share.

     The Company expects to use its cash 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
cash expenditures, existing cash reserves and budgeted
revenues, the Company believes that it would not require
additional funding until towards the end of 2009. 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 extent of commercialization of products
using the Company's technology by the Company's licensees
and payments of continuing royalties on account thereof.

Inflation

     The Company does not believe that inflation has a
significant impact on its business.

New Accounting Standards

In July 2006, FASB issued FAS Interpretation No. 48,
"Accounting for Uncertainty in Income Taxes   an
interpretation of FAS No. 109" ("FIN 48"). FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in the
financial statements in accordance with FAS No. 109,
"Accounting for Income Taxes." FIN 48 prescribes a
recognition threshold and measurement attribute for a tax
position taken or expected to be taken in a tax return. FIN 48
also provides guidance on future changes, classification, interest
and penalties, accounting in interim periods, disclosures and
transition. FIN 48 is effective for fiscal years beginning after
December 15, 2006. The Company has completed its initial
evaluation of the impact of the adoption of FIN 48 and
determined that such adoption is not expected to have a material
impact on the Company's financial position or results from
operations.

Related Party Transactions

     None.

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.

ITEM 7A.       QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

     At times, the Company invests available cash and cash
equivalents in money market funds or in short-term U.S. treasury
securities with maturities that are generally two years or less.
Although the rate of interest paid on such investments may
fluctuate over time, each of the Company's investments, other
than in money market funds whose interest yield varies, is made
at a fixed interest rate over the duration of the investment.
Accordingly, the Company does not believe it is materially
exposed to changes in interest rates as it generally holds these
treasury securities until maturity.

     The Company does not have any sales, purchases, assets or
liabilities determined in currencies other than the U.S. dollar, and
as such, is not subject to foreign currency exchange risk.

ITEM 8.        FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The consolidated financial statements listed in Item 15(a)(1)
and (2) are included in this Report beginning on page F-1.

ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
          ON ACCOUNTING AND FINANCIAL DISCLOSURE

     None.

ITEM 9A.  CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

     As of the end of the period covered by this Annual Report
on Form 10-K, the Company carried out an evaluation, under the
supervision and with the participation of the Company's
management, including the CEO and CFO, of the effectiveness
of the design and operation of the Company's disclosure controls
and procedures pursuant to Exchange Act Rule 13a-15. Based
upon that evaluation, the Company's CEO and CFO concluded
that the Company's disclosure controls and procedures are
effective in timely alerting them to material information relating
to the Company (including its consolidated subsidiary) required
to be included in the Company's periodic SEC filings. There
were no changes in the Company's internal control over financial
reporting during the quarterly period ended December 31, 2006
that has materially affected, or is reasonably likely to materially
affect, the Company's internal control over financial reporting.

                                 PART III

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

     The Company has adopted a code of ethics applicable to its
Chief Executive Officer, Chief Operating Officer, Treasurer and
Chief Financial Officer, any Vice President and other employees
of the Company with important roles in the financial reporting
process. This Code of Ethics was adopted by the entire Board of
Directors of the Company, including all of its Audit Committee
members, in March 2004 in accordance with the requirements of
the Sarbanes Oxley Act. The code of ethics is available on the
Company's website at www.SmartGlass.com and was also filed
as an exhibit to the Company's Annual Report on Form 10-K for
the year ended December 31, 2003. The Company intends to
satisfy the disclosure requirement under Item 10 of Form 8-K
regarding any amendment to, or waiver from, a provision of this
code of ethics by posting such information on the website
specified above.

The other information required by this Item 10 is incorporated by
reference to the Company's definitive Proxy Statement to be
filed with the Commission on or before April 30, 2007, in
connection with the Company's Annual Meeting of Stockholders
scheduled to be held on June 14, 2007.

ITEM 11.       EXECUTIVE COMPENSATION

     The information required by this Item 11 is incorporated by
reference to the Company's definitive Proxy Statement to be
filed with the Commission on or before April 30, 2007, in
connection with the Company's Annual Meeting of Stockholders
scheduled to be held on June 14, 2007. Notwithstanding anything
to the contrary set forth herein or in any of the Company's past
or future filings with the Securities and Exchange Commission
that might incorporate by reference the Company's definitive
Proxy Statement, in whole or in part, the report of the
compensation committee and the stock price performance graph
contained in such definitive Proxy Statement shall not be
incorporated by reference into this Annual Report on Form 10-K
or in any other such filings.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
          AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

     The information required by this Item 12 is incorporated by
reference to the Company's definitive Proxy Statement to be
filed with the Commission on or before April 30, 2007, in
connection with the Company's Annual Meeting of Stockholders
scheduled to be held on June 14, 2007.

ITEM 13.       CERTAIN RELATIONSHIPS AND RELATED
               TRANSACTIONS AND DIRECTOR INDEPENDENCE.

     The information required by this Item 13 is incorporated by
reference to the Company's definitive Proxy Statement to be
filed with the Commission on or before April 30, 2007, in
connection with the Company's Annual Meeting of Stockholders
scheduled to be held on June 14, 2007.

ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES

     The information required by this Item 14 is incorporated by
reference to the Company's definitive Proxy Statement to be
filed with the Commission on or before April 30, 2007, in
connection with the Company's Annual Meeting of Stockholders
scheduled to be held on June 14, 2007.

                              PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

  (a)(1) and (2)  Financial Statements and Financial Statement Schedules

     The following consolidated financial statements of Research
Frontiers Incorporated are filed under Item 8 of this Report.
                                                            Page

Report of Independent Registered Public Accounting Firm. . . F-1

Report of Independent Registered Public Accounting Firm. . . F-2

Consolidated Financial Statements:

 Consolidated Balance Sheets,
  December 31, 2006 and 2005 . . . . . . . . . . . . . . . . F-3

 Consolidated Statements of Operations,
  Years ended December 31, 2006, 2005 and 2004 . . . . . . . F-4

 Consolidated Statements of Shareholders' Equity,
  Years ended December 31, 2006, 2005 and 2004 . . . . . . . F-5

 Consolidated Statements of Cash Flows,
  Years ended December 31, 2006, 2005 and 2004 . . . . . . . F-6

Notes to Consolidated Financial Statements . . . . . . . . . F-7

Schedule II - Valuation and Qualifying Accounts. . . . . . .F-19

All other schedules have been omitted because they are not
applicable, or not required, or the required information is
disclosed elsewhere in this Annual Report.

(a)(3)     Exhibits

    3.1 Restated Certificate of Incorporation of the Company.
        Previously filed as Exhibit 3.1 to the Company's
        Quarterly Report on Form 10-Q for the fiscal quarter
        ended June 30, 1994, and incorporated herein by
        reference.

    3.2 Amended and Restated Bylaws of the Company.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 1993 and incorporated herein by
        reference.

    4.1 Form of Common Stock Certificate. Previously filed as
        an Exhibit to the Company's Registration Statement on
        Form S-18 (Reg. No. 33-5573NY), declared effective
        by the Commission on July 8, 1986, and incorporated
        herein by reference.

 4.2.1  Rights Agreement dated as of February 16, 1993
        between Research Frontiers Incorporated and
        Continental Stock Transfer & Trust Company, as Rights
        Agent, which includes as Exhibit A thereto the Form of
        Rights Certificate. Previously filed as an Exhibit to the
        Company's Registration Statement on Form 8-A dated
        February 16, 1993, and incorporated herein by
        reference.

 4.2.2  Rights Agreement dated as of February 18, 2003
        between Research Frontiers Incorporated and
        Continental Stock Transfer & Trust Company, as Rights
        Agent, which includes as Exhibit A thereto the Form of
        Rights Certificate. Previously filed as an Exhibit to the
        Company's Registration Statement on Form 8-A dated
        February 24, 2003, and incorporated herein by
        reference.

    4.3 Subscription Agreement between Research Frontiers
        and Ailouros Ltd. dated as of October 1, 1998, and
        related Class A Warrant and Class B Warrant between
        Research Frontiers and Ailouros Ltd. dated as of
        October 1, 1998. Previously filed as an Exhibit to the
        Company's Registration Statement on Form S-3 (No.
        333-65219) dated October 1, 1998, and incorporated
        herein by reference.

 10.1*  Amended and Restated Employment Contract effective
        January 1, 1989 between the Company and Robert L.
        Saxe. Previously filed as an Exhibit to the Company's
        Annual Report on Form 10-K for the fiscal year ended
        December 31, 1993 and incorporated herein by
        reference.

 10.2*  Amended and Restated 1992 Stock Option Plan.
        Previously filed as Exhibit 4 to the Company's
        Registration Statement on Form S-8 (Reg. No. 33-
        86910) filed with the Commission on November 30,
        1994, and incorporated herein by reference.

 10.3*  1998 Stock Option Plan, as amended. Previously filed
        as an Exhibit to the Company's Definitive Proxy
        Statement dated April 30, 1998 filed with the
        Commission on April 29, 1998, 1994, and incorporated
        herein by reference.

 10.4*  Form of Stock Option Agreement between the Company
        and recipients of stock options issued pursuant to the
        Company's Stock Option Plans. Previously filed as part
        of Exhibits 4.1, 4.2, and 4.3 to the Company's
        Registration Statement on Form S-8 (Reg. No. 33-
        53030) filed with the Commission on October 6, 1992,
        and incorporated herein by reference.

 10.5   Lease Agreement dated November 7, 1986, between the
        Company and Industrial & Research Associates Co.
        Previously filed as an exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 1986 and incorporated herein by
        reference.

 10.5.1 First Amendment to Lease dated November 26, 1991
        between the Company and Industrial and Research
        Associates Co. Previously filed as an Exhibit to
        Amendment No. 1 to the Company's Registration
        Statement on Form S-1 (Reg. No. 33-43768) declared
        effective by the Commission on December 17, 1991,
        and incorporated herein by reference.

 10.5.2 Second Amendment to Lease dated March 11, 1994
        between the Company and Industrial and Research
        Associates Co. Previously filed as an exhibit to the
        Company's Annual Report on Form 10-K for the fiscal
        year ended December 31, 1993 and incorporated herein
        by reference.

 10.5.3 Third Amendment to Lease dated July 14, 1998 between
        the Company and Industrial and Research Associates
        Co. Previously filed as an exhibit to the Company's
        Annual Report on Form 10-K for the fiscal year ended
        December 31, 1998 and incorporated herein by
        reference.

 10.5.4 Fourth Amendment to Lease dated January 13, 2004
        between the Company and Industrial and Research
        Associates Co. Previously filed as an exhibit to the
        Company's Annual Report on Form 10-K for the fiscal
        year ended December 31, 2003 and incorporated herein
        by reference.

 10.6   License Agreement effective as of August 2, 1995
        between the Company and General Electric Company.
        Previously filed as an Exhibit to the Company's Current
        Report on Form 8-K dated August 2, 1995 with portions
        omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

 10.7   License Agreement effective as of April 29, 1996
        between the Company and Glaverbel, S.A. Previously
        filed as an Exhibit to the Company's Quarterly Report
        on Form 10-Q for the fiscal quarter ended March 31,
        1996 with portions omitted pursuant to the Registrant's
        request for confidential treatment and filed separately
        with the Securities and Exchange Commission, and
        incorporated herein by reference.

 10.8   License Agreement effective as of January 18, 1997
        between the Company and Material Sciences
        Corporation. Previously filed as an Exhibit to the
        Company's Current Report on Form 8-K dated March 3,
        1997 with portions omitted pursuant to the Registrant's
        request for confidential treatment and filed separately
        with the Securities and Exchange Commission, and
        incorporated herein by reference.

 10.9   License Agreement effective as of March 31, 1997
        between the Company and Hankuk Glass Industries,
        Inc. Previously filed as an Exhibit to the Company's
        Quarterly Report on Form 10-Q for the fiscal quarter
        ended September 30, 1997 with portions omitted
        pursuant to the Registrant's request for confidential
        treatment and filed separately with the Securities and
        Exchange Commission, and incorporated herein by
        reference.

 10.10  License Agreement effective as of August 8, 1997
        between the Company and Orcolite, a Unit of Monsanto
        Company. Previously filed as an Exhibit to the
        Company's Quarterly Report on Form 10-Q for the
        fiscal quarter ended September 30, 1997 with portions
        omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

 10.11  License Agreement effective as of June 25, 1999
        between the Company and Dainippon Ink and
        Chemicals, Incorporated. Previously filed as an Exhibit
        to the Company's Quarterly Report on Form 10-Q for
        the fiscal quarter ended June 30, 1999 with portions
        omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

 10.12  License Agreement effective as of August 9, 1999
        between the Company and Hitachi Chemical Co., Ltd.
        Previously filed as an Exhibit to the Company's
        Quarterly Report on Form 10-Q for the fiscal quarter
        ended September 30, 1999 with portions omitted
        pursuant to the Registrant's request for confidential
        treatment and filed separately with the Securities and
        Exchange Commission, and incorporated herein by
        reference.

 10.13  License Agreement effective as of December 3, 1999
        between the Company and Global Mirror GmbH & Co.
        KG. Previously filed as an Exhibit to the Company's
        Annual Report on Form 10-K for the fiscal year ended
        December 31, 1999 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

 10.14  License Agreement effective as of December 13, 1999
        between the Company and Global Mirror GmbH & Co.
        KG. Previously filed as an Exhibit to the Company's
        Annual Report on Form 10-K for the fiscal year ended
        December 31, 1999 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

 10.15  License Agreement effective as of March 21, 2000
        between the Company and ThermoView Industries, Inc.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 1999 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

 10.16  License Agreement effective as of May 23, 2000
        between the Company and Polaroid Corporation.
        Previously filed as an Exhibit to the Company's
        Quarterly Report on Form 10-Q for the fiscal quarter
        ended June 30, 2000 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

  10.17 License Agreement effective as of February 16, 2001
        between the Company and AP Technoglass Co.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 2001 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

 10.18  License Agreement effective as of March 21, 2001
        between the Company and InspecTech Aero Service,
        Inc. Previously filed as an Exhibit to the Company's
        Annual Report on Form 10-K for the fiscal year ended
        December 31, 2001 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

  10.19 License Agreement effective as of March 28, 2001
        between the Company and Film Technologies
        International, Inc. Previously filed as an Exhibit to the
        Company's Annual Report on Form 10-K for the fiscal
        year ended December 31, 2001 with portions omitted
        pursuant to the Registrant's request for confidential
        treatment and filed separately with the Securities and
        Exchange Commission, and incorporated herein by
        reference.

  10.20 License Agreement effective as of November 29, 2001
        between the Company and Avery Dennison
        Corporation. Previously filed as an Exhibit to the
        Company's Annual Report on Form 10-K for the fiscal
        year ended December 31, 2001 with portions omitted
        pursuant to the Registrant's request for confidential
        treatment and filed separately with the Securities and
        Exchange Commission, and incorporated herein by
        reference.

 10.21  License Agreement effective as of February 4, 2002
        between the Company and BOS GmbH & Co. KG.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 2001 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

 10.22  License Agreement effective as of March 11, 2002
        between the Company and Isoclima S.p.A. Previously
        filed as an Exhibit to the Company's Annual Report on
        Form 10-K for the fiscal year ended December 31, 2001
        with portions omitted pursuant to the Registrant's
        request for confidential treatment and filed separately
        with the Securities and Exchange Commission, and
        incorporated herein by reference.

10.23   License Agreement effective as of July 2, 2002 between
        the Company and Isoclima S.p.A. Previously filed as an
        Exhibit to the Company's Annual Report on Form 10-K
        for the fiscal year ended December 31, 2002 with
        portions omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

10.24   License Agreement effective as of August 19, 2002
        between the Company and Razor's Edge Technologies,
        Inc. Previously filed as an Exhibit to the Company's
        Annual Report on Form 10-K for the fiscal year ended
        December 31, 2002 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

10.25   License Agreement effective as of October 7, 2002
        between the Company and American Glass Products
        (Glass Technology Investment Ltd.). Previously filed as
        an Exhibit to the Company's Annual Report on Form
        10-K for the fiscal year ended December 31, 2002 with
        portions omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

10.26   License Agreement effective as of October 7, 2002
        between the Company and SPD Systems, Inc.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 2002 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

10.27   License Agreement effective as of October 24, 2002
        between the Company and Cricursa Cristales Curvados
        S.A. Previously filed as an Exhibit to the Company's
        Annual Report on Form 10-K for the fiscal year ended
        December 31, 2002 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

10.28   License Agreement effective as of December 9, 2002
        between the Company and BRG Group, Ltd. Previously
        filed as an Exhibit to the Company's Annual Report on
        Form 10-K for the fiscal year ended December 31, 2002
        with portions omitted pursuant to the Registrant's
        request for confidential treatment and filed separately
        with the Securities and Exchange Commission, and
        incorporated herein by reference.

10.29   License Agreement effective as of December 13, 2002
        between the Company and Laminated Technologies Inc.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 2002 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

 10.30  License Agreement effective as of April 17, 2003
        between the Company and Custom Glass Corporation.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K/A for the fiscal year ended
        December 31, 2003 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

10.31   License Agreement effective as of May 2, 2003 between
        the Company and Air Products and Chemicals, Inc.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K/A for the fiscal year ended
        December 31, 2003 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

10.32   License Agreement effective as of May 30, 2003
        between the Company and Kerros Limited. Previously
        filed as an Exhibit to the Company's Annual Report on
        Form 10-K/A for the fiscal year ended December 31,
        2003 with portions omitted pursuant to the Registrant's
        request for confidential treatment and filed separately
        with the Securities and Exchange Commission, and
        incorporated herein by reference.

10.33   License Agreement effective as of June 6, 2003 between
        the Company and Traco, Inc. Previously filed as an
        Exhibit to the Company's Annual Report on Form 10-
        K/A for the fiscal year ended December 31, 2003 with
        portions omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

 10.34  License Agreement effective as of June 16, 2003
        between the Company and Saint-Gobain Glass France
        S.A. Previously filed as an Exhibit to the Company's
        Annual Report on Form 10-K/A for the fiscal year
        ended December 31, 2003 with portions omitted
        pursuant to the Registrant's request for confidential
        treatment and filed separately with the Securities and
        Exchange Commission, and incorporated herein by
        reference.

 10.35  License Agreement effective as of August 1, 2003
        between the Company and Vision (Environmental
        Innovation) Limited. Previously filed as an Exhibit to
        the Company's Annual Report on Form 10-K/A for the
        fiscal year ended December 31, 2003 with portions
        omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

10.36   License Agreement effective as of November 13, 2003
        between the Company and Innovative Glass
        Corporation. Previously filed as an Exhibit to the
        Company's Annual Report on Form 10-K/A for the
        fiscal year ended December 31, 2003 with portions
        omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

10.37   License Agreement effective as of December 11, 2003
        between the Company and Leminur Limited. Previously
        filed as an Exhibit to the Company's Annual Report on
        Form 10-K/A for the fiscal year ended December 31,
        2003 with portions omitted pursuant to the Registrant's
        request for confidential treatment and filed separately
        with the Securities and Exchange Commission, and
        incorporated herein by reference.

10.38   License Agreement effective as of March 25, 2004
        between the Company and Pilkington plc. Previously
        filed as an Exhibit to the Company's Annual Report on
        Form 10-K for the fiscal year ended December 31, 2004
        with portions omitted pursuant to the Registrant's
        request for confidential treatment and filed separately
        with the Securities and Exchange Commission, and
        incorporated herein by reference.

10.39   License Agreement effective as of April 5, 2004
        between the Company and SmartGlass Ireland Ltd.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 2004 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

10.40   License Agreement effective as of April 8, 2004
        between the Company and Prelco Inc. Previously filed
        as an Exhibit to the Company's Annual Report on Form
        10-K for the fiscal year ended December 31, 2004 with
        portions omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

10.41   License Agreement effective as of April 13, 2004
        between the Company and E. I. Dupont De Nemours
        and Company. Previously filed as an Exhibit to the
        Company's Annual Report on Form 10-K for the fiscal
        year ended December 31, 2004 with portions omitted
        pursuant to the Registrant's request for confidential
        treatment and filed separately with the Securities and
        Exchange Commission, and incorporated herein by
        reference.

10.42   License Agreement effective as of September 3, 2004
        between the Company and Nippon Sheet Glass Co., Ltd.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 2004 with portions omitted pursuant to
        the Registrant's request for confidential treatment and
        filed separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

10.43   License Agreement effective as of October 25, 2005
        between the Company and SPD Control Systems
        Corporation. Previously filed as an Exhibit to the
        Company's Current Report on Form 8-K dated October
        31, 2005 with portions omitted pursuant to the
        Registrant's request for confidential treatment and filed
        separately with the Securities and Exchange
        Commission, and incorporated herein by reference.

10.44   License Agreement effective as of March 30, 2006
        between the Company and Dainippon Ink and
        Chemicals. Previously filed as an Exhibit to the
        Company's Current Report on Form 8-K dated April 4,
        2006 with portions omitted pursuant to the Registrant's
        request for confidential treatment and filed separately
        with the Securities and Exchange Commission, and
        incorporated herein by reference

10.45   License Agreement effective as of May 11, 2006
        between the Company and Asahi Glass Company.
        Previously filed as an Exhibit to the Company's Current
        Report on Form 8-K dated May 15, 2006 with portions
        omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

10.46   License Agreement effective as of May 19, 2007
        between the Company and SmartGlass International
        Ltd. Previously filed as an Exhibit to the Company's
        Current Report on Form 8-K dated March 19, 2007 with
        portions omitted pursuant to the Registrant's request for
        confidential treatment and filed separately with the
        Securities and Exchange Commission, and incorporated
        herein by reference.

14      Code of Ethics of Research Frontiers Incorporated.
        Previously filed as an Exhibit to the Company's Annual
        Report on Form 10-K for the fiscal year ended
        December 31, 2003, and incorporated herein by
        reference.

21      Subsidiaries of the Registrant - SPD Enterprises, Inc.

23.1    Consent of BDO Seidman, LLP - Filed herewith.

23.2    Consent of KPMG LLP - Filed herewith.

31.1    Rule 13a-14(a)/15d-14(a) Certification of Robert L. Saxe-Filed herewith.

31.2   Rule 13a-14(a)/15d-14(a) Certification of Joseph M.Harary-Filed herewith.

32.1    Section 1350 Certification of Robert L. Saxe -  Filed herewith.

32.2    Section 1350 Certification of Joseph M. Harary- Filed herewith.

*    Executive Compensation Plan or Arrangement.

                                SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

               RESEARCH FRONTIERS INCORPORATED
                             (Registrant)

               /s/ Robert L. Saxe
               Robert L. Saxe, Chairman
               (Principal Executive Officer)


               /s/ Joseph M. Harary
               Joseph M. Harary, President and Treasurer
               (Principal Financial, and Accounting Officer)

Dated:  March 22, 2007

     Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on
the dates indicated:

Signature                     Position              Date

/s/Robert M. Budin            Director              March 22, 2007
   Robert M. Budin

/s/Joseph M. Harary           Director, President,  March 22, 2007
   Joseph M. Harary           Treasurer

/s/Victor F. Keen             Director              March 22, 2007
   Victor F. Keen

/s/Albert P. Malvino          Director              March 22, 2007
   Albert P. Malvino

/s/Robert L. Saxe             Director, Chairman    March 22, 2007
   Robert L. Saxe



     Report of Independent Registered Public Accounting Firm



The Shareholders and Board of Directors
Research Frontiers Incorporated:


We have audited the accompanying consolidated balance sheets
of Research Frontiers Incorporated as of December 31, 2006 and
2005, and the related consolidated statements of operations,
shareholders' equity and cash flows for the years then ended.
Our audits also included the financial statement schedule for the
years ended December 31, 2006 and 2005, as listed in Item
15(a). These financial statements and schedule are the
responsibility of the Company's management.  Our responsibility
is to express an opinion on these financial statements and
schedule based on our audits.

We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial
statements and financial statement schedule are free of material
misstatement.  The Company is not required to have, nor were
we engaged to perform, an audit of its internal control over
financial reporting.  Our audits included consideration of internal
control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the
Company's internal control over financial reporting.
Accordingly, we express no such opinion.  An audit also includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial statement
schedule, assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall presentation of the financial statements and schedule.
We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the financial
position of Research Frontiers Incorporated at December 31,
2006 and 2005, and the results of its operations and its cash
flows for the years then ended, in conformity with accounting
principles generally accepted in the United States of America.
Also, in our opinion, the financial statement schedule presents
fairly, in all material respects, the information set forth therein.

                              /s/ BDO Seidman, LLP

Melville, New York
March 13, 2007

           Report of Independent Registered Public Accounting Firm



The Shareholders and Board of Directors
Research Frontiers Incorporated:


We have audited the accompanying consolidated statements of
operations, shareholders' equity and cash flows of Research
Frontiers Incorporated and subsidiary for the year ended
December 31, 2004.  In connection with our audit of the
consolidated financial statements, we also have audited the
information included in the financial statement schedule as listed
in Item 15(a) for the year ended December 31, 2004.  These
consolidated financial statements and the financial statement
schedule are the responsibility of the Company's management.
Our responsibility is to express an opinion on these consolidated
financial statements and the financial statement schedule based
on our audit.

We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the results of
operations and cash flows of Research Frontiers Incorporated
and subsidiary for the year ended December 31, 2004, in
conformity with U.S. generally accepted accounting principles.
Also in our opinion, the related financial statement schedule,
when considered in relation to the basic consolidated financial
statements taken as a whole, presents fairly, in all material
respects, the information set forth therein for the year ended
December 31, 2004.


                              /s/ KPMG LLP

Melville, New York
March 15, 2005


                     RESEARCH FRONTIERS INCORPORATED

                       Consolidated Balance Sheets

                        December 31, 2006 and 2005

                  Assets                         2006       2005
Current assets:
 Cash and cash equivalents                $ 3,000,521    3,644,685
 Royalty receivables, net of reserves
   of $103,674 in 2006 and $78,674 in 2005     65,000       40,000
 Prepaid expenses and other current assets     60,860      138,408
          Total current assets              3,126,381    3,823,093

Fixed assets, net                             102,651      111,507
Deposits                                       22,605       22,605

                Total assets              $ 3,251,637    3,957,205

          Liabilities and Shareholders' Equity

Current liabilities:
 Accounts payable                         $   120,345      132,584
 Deferred revenue                               5,000        5,000
 Accrued expenses and other                   133,671      173,367

       Total current liabilities              259,016      310,951

Commitments (note 9)

Shareholders' equity:
 Common stock, par value $0.0001 per share;
 authorized 100,000,000 shares, issued and
 outstanding 14,507,507 and 13,812,559 shares
 for 2006 and 2005                              1,451        1,381
 Additional paid-in capital                65,227,701   62,577,771
 Accumulated deficit                      (62,236,531) (58,932,898)

      Total shareholders' equity            2,992,621    3,646,254


Total liabilities and shareholders' equity $3,251,637    3,957,205

See accompanying notes to consolidated financial statements.




                     RESEARCH FRONTIERS INCORPORATED

                  Consolidated Statements of Operations

               Years ended December 31, 2006, 2005 and 2004


                                    2006      2005       2004

Fee income                   $  162,639    138,742    201,321

Operating expenses            2,383,856  2,624,379  2,633,534
Research and development      1,170,503  1,391,657  1,682,624
Charge for reduction in value
 of investment in SPD Inc.           --         --    165,501
                              3,554,359  4,016,036  4,481,659

   Operating loss            (3,391,720)(3,877,294)(4,280,338)

Net investment income            88,087    129,762     17,597

      Net loss             $ (3,303,633)(3,747,532)(4,262,741)

Basic and diluted net loss
   per common share        $      (0.24)     (0.27)     (0.33)

Weighted average number of
common shares outstanding    14,028,509 13,692,011 12,792,091

See accompanying notes to consolidated financial statements.

                                RESEARCH FRONTIERS INCORPORATED
                               Statements of Shareholders' Equity
                        Years ended December 31, 2006, 2005 and 2004

                                      Additional             Accumulated
                        Common Stock     Paid    Accumulated Comprehensive
                        Shares Amount in Capital   Deficit   Income(Loss) Total

Balance,Dec.31,2003 12,683,413 $1,268 56,395,409 (50,922,625) (4,625)5,469,427
Issuance of
  common stock         127,417     13  1,162,589          --      -- 1,162,602
Comprehensive loss:
Net loss                    --     --         --  (4,262,741)     --(4,262,741)
Unrealized loss on available-
 for-sale securities        --     --         --          --   4,625     4,625
   Total Comprehensive Loss                                         (4,258,116)
Issuance of stock,
 options and warrants
 for services performed  1,729     --     18,390          --      --    18,390
Balance,Dec.31,2004 12,812,559 $1,281 57,576,388 (55,185,366)     -- 2,392,303
Issuance of
  common stock       1,000,000    100  4,999,900          --      -- 5,000,000
Net loss                    --     --         --  (3,747,532)     --(3,747,532)
Issuance of options
 for services performed     --     --      1,483          --      --     1,483
Balance,Dec.31,2005 13,812,559  1,381 62,577,771 (58,932,898)     -- 3,646,254
Issuance of
 common stock          694,948     70  2,649,930          --      -- 2,650,000
Net loss                    --     --         --  (3,303,633)     --(3,303,633)
Balance,Dec.31,2006 14,507,507  1,451 65,227,701 (62,236,531)     -- 2,992,621

See accompanying notes to consolidated financial statements.


                           RESEARCH FRONTIERS INCORPORATED
                        Consolidated Statements of Cash Flows
                 Years ended December 31, 2006, 2005 and 2004

                                             2006       2005       2004
Cash flows from operating activities:
 Net loss                             $(3,303,633)(3,747,532)(4,262,741)
 Adjustments to reconcile net loss
  to net cash used in operating activities:
   Depreciation and amortization           37,662     46,140     82,736
Provision for uncollectible
 royalty receivables                       25,000     (3,848)    32,522
 Charge for reduction in value
  of investment in SPD Inc.                    --         --    165,501
 Expense relating to cashless
   exercise of stock options                   --         --     15,707
 Expense relating to issuance of stock,
  options and warrants for services performed  --      1,483      2,683
 Impairment loss on marketable securities      --         --     12,500
 Changes in assets and liabilities:
  Royalty receivables                     (50,000)    18,392     72,825
  Prepaid expenses and other current assets77,548    (78,051)    21,670
  Deferred revenue                             --     (5,000)   (13,683)
  Accounts payable and accrued expenses   (51,935)  (152,419)   261,210

  Net cash used in operating activities(3,265,358)(3,920,835)(3,609,070)

Cash flows from investing activities:
 Purchases of fixed assets               (28,806)    (36,543)   (67,962)
 Proceeds from liquidation of SPD Inc.        --          --     44,203

   Net cash used in investing activities (28,806)    (36,543)   (23,759)

Cash flows from financing activities:
 Proceeds from issuances of
   common stock and warrants           2,650,000   5,000,000  1,162,602

Net cash provided by
   financing activities                2,650,000   5,000,000  1,162,602

Net  increase (decrease) in cash
  and cash equivalents                  (644,164)  1,042,622 (2,470,227)
Cash and cash equivalents at
  beginning of year                    3,644,685   2,602,063  5,072,290
Cash and cash equivalents at
  end of year                         $3,000,521   3,644,685  2,602,063

See accompanying notes to consolidated financial statements.

                 RESEARCH FRONTIERS INCORPORATED
           Notes to Consolidated Financial Statements
                December 31, 2006, 2005 and 2004

(1)     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 used in architectural, automotive, marine,
aerospace and appliance applications.

The Company has historically utilized 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, 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. 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.  To date, the Company has
not generated sufficient revenue from its licensees to fund its
operations.

(2) Summary of Significant Accounting Policies

   (a)  Cash and Cash Equivalents

The Company considers securities purchased with original
maturities of three months or less to be cash equivalents. Cash
equivalents consist of short-term investments in money market
accounts at December 31, 2006 and 2005.

   (b)  Royalties Receivable

Royalties receivable are recorded at the amounts specified within
the license agreements when the collectibility of the receivable is
reasonably assured. The receivables do not bear interest. The
allowance for doubtful accounts is the Company's best estimate of
the amount of probable credit losses in the Company's existing
royalties receivable. The Company determines the allowance based
on historical write off experience. The Company reviews its
allowance for doubtful accounts periodically. Past due accounts are
reviewed individually for collectibility. Account balances are
charged off against the allowance after all means of collection have
been exhausted and the potential for recovery is considered remote.

   (c)  Fixed Assets

Fixed assets are carried at cost. Depreciation and amortization are
computed using the straight-line method over the estimated useful
lives of the assets.

   (d)  Fee Income

Fee income represents amounts earned by the Company under
various license and other agreements (note 8) relating to technology
developed by the Company.  During fiscal 2006, four licensees of
the Company accounted for 34%, 31%, 12% and 12%, respectively
of fee income recognized during the year.  During fiscal 2005, four
licensees of the Company accounted for 36%, 14%, 13% and 11%,
respectively of fee income recognized during the year.  During
fiscal 2004, four licensees of the Company accounted for 25%,
19%, 13% and 12%, respectively of fee income recognized during
the year.

   (e)  Basic and Diluted Loss Per Common Share

Basic earnings (loss) per share excludes any dilution. It is based
upon the weighted average number of common shares outstanding
during the period. Dilutive earnings (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 earnings (loss) per share equals
basic earnings (loss) per share for each of the years in the three-
year period ended December 31, 2006 because all common stock
equivalents (i.e., options and warrants) were antidilutive in those
periods. The number of options and warrants that were not included
because their effect is antidilutive was 2,785,093, 3,075,593, and
2,628,400, for 2006, 2005, and 2004, respectively.

   (f)  Research and Development Costs

Research and development costs are charged to expense as incurred.

   (g)  Patent Costs

The Company expenses costs relating to the development or
acquisition of patents due to the uncertainty of the recoverability of
these items.

   (h)  Use of Estimates

The preparation of the Company's consolidated financial
statements requires management of the Company to make a number
of estimates and assumptions relating to the reported amount of
assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the consolidated financial statements and
the reported amounts of revenues and expenses during this period.
Significant items subject to such estimates and assumptions include
the valuation of deferred income tax assets. Actual results could
differ from those estimates.

   (i)  Income Taxes

Income taxes are accounted for under the asset and liability method.
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and
their respective tax bases and operating loss and tax credit
carryforwards. Deferred tax assets and liabilities are measured
using enacted tax rates expected to be recovered or settled. The
effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income in the period that includes the enactment date.

   (j)  Fair Value of Financial Instruments

The fair value of a financial instrument is the amount at which the
instrument could be exchanged in a current transaction between
willing parties. The carrying amounts of all financial instruments
classified as a current asset or current liability are deemed to
approximate fair value because of the short maturity of those
instruments.

   (k)   Stock-Based Compensation

Prior to January 1, 2006, the Company accounted for stock-based
employee compensation under the intrinsic value method as
outlined in the provisions of APB Opinion No. 25, "Accounting for
Stock Issued to Employees," and related interpretations while
disclosing pro-forma net income and net income per share as if the
fair value method had been applied in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 123, "Accounting
for Stock-Based Compensation."  Under the intrinsic value method,
no compensation expense was recognized if the exercise price of
the Company's employee stock options equaled or exceeded the
market price of the underlying stock on the date of grant.  Since the
Company had issued all stock option grants with exercise prices
equal to, or greater than, the market value of the common stock on
the date of grant, through December 31, 2005 no compensation cost
was recognized in the consolidated statements of the operations.

Effective January 1, 2006, the Company adopted SFAS No. 123(R),
"Share-based Payment."  SFAS No. 123(R) replaces SFAS No. 123
and supersedes APB Opinion No. 25, SFAS 123(R) 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.  This statement was adopted using the modified
prospective method, which requires the Company to recognize
compensation expense on a prospective basis.  Therefore, prior
period financial statements have not been restated.  Under this
method, in addition to reflecting compensation expense for new
share-based payment awards, expense is also recognized to reflect
the remaining vesting period of awards that had been included in
pro-forma disclosures in prior periods.  Since all options
outstanding as of December 31, 2005 were fully vested, and no new
options were granted during 2006, there was no compensation
expense recognized for those options in the consolidated statement
of operations for 2006.  In February 2007, the Company granted
fully vested options to purchase 96,000 shares of common stock,
resulting in an estimated non-cash compensation charge during the
first quarter of 2007 of $690,950. SFAS 123(R) also requires that
tax benefits related to stock option exercises be reflected as
financing cash inflows instead of operating cash inflows.  For the
year ended December 31, 2006, this new treatment resulted in no
change in cash flows from financing activities or cash flows from
operating activities.  Because there were no options granted during
2006, there was no impact on net loss for the year regardless of
whether the Company had consistently measured the compensation
cost of the Company's stock option grants under the fair value
method adopted in fiscal 2006.  The Company expects that the
adoption of SFAS No. 123(R) could have a material effect on the
Company's consolidated financial statements, depending upon the
number and terms of stock options issued by the Company in the
future.  The adoption of SFAS No. 123(R) had no impact on
previously granted options, since all options granted prior to
January 1, 2006 are fully vested.

The exercise price for stock options granted are generally set at the
average for the high and low trading prices of the Company's
common stock on the trading date immediately prior to the date of
grant, and the related number of shares granted are fixed at the date
of grant.  Prior to January 1, 2006,  under the principles of APB
Opinion No. 25, the Company did not recognize compensation
expense associated with the grant of stock options.  SFAS No. 123
requires the use of option valuation models to determine the fair
value of options granted after 1995.  Pro forma information
regarding net loss and net loss per share shown below was
determined as if the Company had accounted for its employee stock
options and shares sold under its stock purchase plan under the fair
value method set forth in SFAS No. 123.

In order to determine the fair value of stock options on the date of
grant, the Company uses the Black-Scholes option-pricing model.
Inherent in this model are assumptions related to expected
stock-price volatility, option term, risk-free interest rate and
dividend yield.  While the risk-free interest rate and dividend yield
are less subjective assumptions that are based on factual data
derived from public sources, the expected stock-price volatility and
option term assumptions require a greater level of judgment.

The per share weighted average fair value of stock options granted
during 2005 and 2004, was approximately $2.22, and $4.37,
respectively, on the date of grant using the Black-Scholes option-
pricing model with the following weighted average assumptions
(no options were granted in 2006):

                Expected    Risk-Free Expected Stock Expected Life
Grant Date  Dividend Yield Interest Rate Volatility   in Years

December 2005       0%        4.251%    68.910%        5.00
July 2005           0%        3.788%    70.800%        5.00
January 2004        0 %       3.225%    79.580%        4.53
December 2004       0 %       3.521%    70.650%        4.53

The following table illustrates the effect on net loss and earnings
per share as if the fair value method had been applied:


                                             2005          2004

Net loss, as reported                 $(3,747,532)  $(4,262,741)

Add: Stock-based employee compensation
     expense included in reported net loss  1,483        18,390

Deduct: Total stock-based employee
        compensation determined under fair-
        value based method for all awards(955,584)     (693,943)


                    Pro forma         $(4,701,633) $ (4,938,294)


Basic and diluted net loss
 per common share  As reported           $  (0.27)      $ (0.33)

                   Pro forma             $  (0.34)      $ (0.38)


   (l)  Accumulated Other Comprehensive Income (loss)

The change in accumulated other comprehensive income (loss) was
a reclassification adjustment of $4,625 for the year-ended
December 31, 2004 reflecting the write off of an equity investment
for an other than temporary impairment.

   (m)  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.

   (n)  Impairment of Long-Lived Assets

In accordance with SFAS No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets," the Company reviews long-
lived assets to determine whether an event or change in
circumstances indicates the carrying value of the asset may not be
recoverable. The Company bases its evaluation on such impairment
indicators as the nature of the assets, the future economic benefit of
the assets and any historical or future profitability measurements, as
well as other external market conditions or factors that may be
present. If such impairment indicators are present or other factors
exist that indicate that the carrying amount of the asset may not be
recoverable, the Company determines whether an impairment has
occurred through the use of an undiscounted cash flows analysis at
the lowest level for which identifiable cash flows exist. If
impairment has occurred, the Company recognizes a loss for the
difference between the carrying amount and the fair value of the
asset. Fair value is the amount at which the asset could be bought or
sold in a current transaction between a willing buyer and seller
other than in a forced or liquidation sale and can be measured as the
asset's quoted market price in an active market or, where an active
market for the asset does not exist, the Company's best estimate of
fair value based on discounted cash flow analysis. Assets to be
disposed of by sale are measured at the lower of carrying amount or
fair value less estimated costs to sell. The implementation of SFAS
No. 144 had no impact on the Company's financial position or
results of operations.

(3)      Investment in SPD Inc.

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 was dedicated exclusively to the production
of suspended particle device (SPD) light-control film and a wide
variety of end-products using SPD film. In April 2003, the
Company's wholly-owned subsidiary, SPD Enterprises, Inc.,
invested $74,902 in SPD Inc., raising its equity ownership from
6.67% to 6.91%. SPD Inc.'s parent company invested at the same
time and at the same price, $748,931, raising its equity ownership
in SPD Inc. from 66.67% to 69.09%.  During 2003, the Company
recorded  total non-cash accounting charges of $615,200 against
income to reflect a reduction in the value of its investment in SPD
Inc. These non-cash charges were  determined as follows: During
the first quarter of 2003, the Company recorded a  non-cash charge
against income of $255,200 to reflect a reduction in the value of its
investment in SPD Inc. determined based upon the April 2003
financing, and the Company recorded a further non-cash charge
against income of $360,000 as of the end of 2003 to reflect a
reduction in the value of its investment in SPD Inc.  determined
based upon its review of the financial position and results of
operations of SPD Inc. as of and for the year ended December 31,
2003.  On April 28, 2004, SPD Inc. informed the Company that it
was planning to sell its equipment and other assets and cease its
business activities. As a result, the Company wrote off its entire
remaining investment in SPD Inc. of $209,704 in the first quarter of
2004.   During the fourth quarter of 2004, the Company received a
payment of $44,203 as part of a liquidation distribution made by
SPD Inc. to its shareholders, resulting in a total net non-cash charge
against income of $165,501 in 2004. The Company's license
agreement with Hankuk Glass Industries provided for the payment
of minimum annual royalties to the Company in 2002 and 2003.
These amounts were all paid in full in 2004.

(4)     Fixed Assets

Fixed assets and their estimated useful lives, are as follows:

                                    2006       2005  Estimated useful life
Equipment and furniture      $ 1,206,492  1,181,824  5 years
Leasehold improvements           335,827    331,689  Life of lease or estimated
                               1,542,319  1,513,513  Life if shorter
Less accumulated
 depreciation and amortization 1,439,668  1,402,006
                             $   102,651    111,507

(5)   Accrued Expenses and Other

Accrued expenses consist of the following at December 31, 2006
and 2005:


                                         2006    2005
Payroll, bonuses and related benefits $64,505  83,253
Professional services                  21,522  47,777
Deferred rent                          24,946  19,006
Other                                  22,698  23,331
                                     $133,671 173,367

(6)     Income Taxes

There was no income tax expense in 2006, 2005 and 2004 due to
losses incurred by the Company.

The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets at December 31, 2006 and 2005
are presented below.

                                        2006       2005
Deferred tax assets:
 Depreciation                       $ 78,000   $ 93,000
 Capital loss carryforward           312,000     66,000
 Allowance for bad debts              42,000     32,000
 Net operating loss carryforwards 19,233,000 18,307,000
 Research and other credits          939,000    979,000
 Other temporary differences          15,000     15,000
  Total gross deferred tax assets 20,619,000 19,492,000
 Less valuation allowance         20,619,000 19,492,000
                                 $       -- $        --

In assessing the realizability of deferred tax assets, the Company
considers whether it is more likely than not that some portion or all
of the deferred tax assets will not be realized. The ultimate
realization of deferred tax assets is dependent upon future taxable
income during the period in which those temporary differences
become deductible. The Company considers the scheduled reversal
of deferred tax liabilities, projected future taxable income, and tax
planning strategies in making this assessment. Based upon its
historical operating losses, the Company believes that it is more
likely than not that deferred tax assets will not be realized.
Accordingly, the Company has recorded a full valuation allowance
against the deferred tax assets, as they will not be realized unless
the Company achieves profitable operations in the future.

At December 31, 2006, the Company had a net operating loss
carryforward for federal income tax purposes of $48,100,000,
varying amounts of which will expire in each year from 2007
through 2026. Research and other credit carryforwards of $939,000
are available to the Company to reduce income taxes payable in
future years principally through 2026. Net operating loss
carryforwards of $1,397,000 and research and other credit
carryforwards of $69,000 are scheduled to expire during fiscal
2007, if not utilized.

(7)     Shareholders' Equity

During 2004, the Company received $1,162,602 of net cash
proceeds from the issuance of (i)   104,917 shares of common stock
issued upon the exercise of warrants resulting in net proceeds of
$987,037; and (ii) 22,500 shares of common stock issued upon the
exercise of options resulting in net proceeds of $175,565. In
addition, 1,729 shares were issued through the cashless exercise of
an option to purchase 17,500 shares. In connection therewith, the
Company recorded a non-cash compensation expense of $15,707 in
2004.

In February 2005, the Company raised $5 million in net proceeds in
connection with the registered sale to institutional investors of one
million shares of its common stock and the issuance of five-year
warrants to purchase 200,000 shares of common stock at an
exercise price of $7.50 per share.

During 2006, the Company received $2,650,000 of net cash
proceeds from the issuance of two accredited investors of 694,948
shares of common stock.

   (b)  Options and Warrants

   (i)  Options

In 1992, the shareholders approved a stock option plan (1992 Stock
Option Plan) which provides for the granting of both incentive
stock options at the fair market value at the date of grant and
nonqualified stock options at or below the fair market value at the
date of grant to employees or non-employees who, in the
determination of the Board of Directors, have made or may make
significant contributions to the Company in the future. The
Company initially reserved 468,750 shares of its common stock for
issuance under this plan. In 1994 and 1996, the Company's
shareholders approved an additional 300,000 shares and 450,000
shares, respectively, for issuance under this plan. As of December
31, 2001, no options were available for issuance under this Plan and
this Plan expired during 2002.

In 1998, the shareholders approved a stock option plan (1998 Stock
Option Plan) which provides for the granting of both incentive
stock options at the fair market value at the date of grant and
nonqualified stock options at or below the fair market value at the
date of grant to employees or non-employees who, in the
determination of the Board of Directors, have made or may make
significant contributions to the Company in the future. The
Company may also award stock appreciation rights or restricted
stock under this plan. The Company initially reserved 540,000
shares of its common stock for issuance under this plan. In 1999,
the Company's shareholders approved an additional 545,000 shares
for issuance under this Plan, and in each of 2000 and 2002, the
Company's shareholders approved an additional 600,000 shares for
issuance under this Plan. As of December 31, 2006, awards for
816,779 shares of common stock were available for issuance under
this Plan.

At the discretion of the Board of Directors, options expire in ten
years or less from the date of grant and are generally fully
exercisable upon grant but in some cases may be subject to vesting
in the future. Full payment of the exercise price may be made in
cash or in shares of common stock valued at the fair market value
thereof on the date of exercise, or by agreeing with the Company to
cancel a portion of the exercised options. When an employee
exercises a stock option through the surrender of options held,
rather than of cash for the option exercise price, compensation
expense is recorded in accordance with APB Opinion No. 25.
Accordingly, compensation expense is recorded for the difference
between the quoted market value of the Company's common stock
at the date of exchange and the exercise price of the option. During
2004, the Company recorded non-cash expenses of $15,707 related
to the cashless exercises of options.

Activity in stock options is summarized below:

                                                  Weighted
                                                  Average
                                Number   Weighted Remaining
                                Of Shares Average Contractual Aggregate
                                Subject  Exercise Term    Intrinsic
                                to Option  Price (Years)    Value
Balance at December 31, 2003     2,434,775 $ 12.22
 Granted                           148,750 $  7.34
 Cancelled                        (134,325)$  9.16
 Exercised                         (40,000)$  7.97
Balance at December 31, 2004     2,409,200 $ 12.16
 Granted                           430,193 $  7.42
 Cancelled                        (148,400)$ 11.27
Balance at December 31, 2005     2,690,993 $ 11.45
 Granted                                --      --
 Cancelled                        (254,900)$  8.80
Balance at December 31, 2006     2,436,093 $ 11.73    4.4    $   --
Exercisable at December 31, 2006 2,431,093 $ 11.72    4.4    $   --

Options covering 5,000 shares are not vested at December 31,
2006. The total intrinsic value of options exercised during the year
ended December 31, 2004 was $41,000. No options were exercised
during the years ended December 31, 2006 and 2005.

During 2005 and 2004, the Company issued options to a consultant
to purchase 500 and 750 shares of common stock at an exercise
price of $5.60 and $6.175 per share, respectively. The Company
recorded $1,483 and $2,683, of non-cash expense in connection
with the issuance of these options.

  (ii)    Warrants

  Activity in warrants is summarized below, excluding the effect
of the warrants discussed in note 7(c)):

                               Number of Shares           Exercise
                            Underlying Warrants Granted   Price
Balance at December 31, 2003      252,200                5.88-13.50
 Exercised                         (5,500)                     5.88
 Terminated                       (27,500)                5.88-9.35
 Issued                                --                        --
Balance at December 31, 2004      219,200                5.88-13.50
 Exercised                             --                        --
 Terminated                       (34,600)               7.31-13.50
 Issued                           200,000                      7.50
Balance at December 31, 2005      384,600                 5.88-9.63
 Exercised                             --                        --
 Terminated                       (35,600)                     7.73
 Issued                                --                        --
Balance at December 31, 2006      349,000              $  6.00-8.98

Warrants generally expire from five to ten years from the date of
issuance. At December 31, 2006, the number of warrants
exercisable was 344,000 at a weighted average exercise price of
$7.63 per share.

        (c)  Class A and Class B Warrants

In connection with a financing in 1998, the Company issued
Ailouros Ltd. a Class A Warrant (which was exercised in full as of
February 2004), as well as a Class B Warrant which expires on
September 30, 2008. The Class B Warrant is exercisable into
65,500 shares at an exercise price of $8.25 per share which
represents 120% of average of the closing bid and ask price of the
Company's common stock on the date of the Class B Warrant's
issuance. The Class B Warrant has not been exercised to date.
Ailouros paid the Company $10,000 upon issuance of the Class A
Warrant and the Class B Warrant.

(8)  License and Other Agreements

The Company has entered into a number of license agreements
covering various products using the Company's SPD technology.
Licensees of Research Frontiers who incorporate SPD technology
into end products will pay Research Frontiers an earned royalty of
5-15% of net sales of licensed products under license agreements
currently in effect, and may also be required to pay Research
Frontiers fees and minimum annual royalties. To the extent that
products have been sold resulting in earned royalties under these
license agreements in excess of these minimum advance royalty
payments, the Company has recorded additional royalty income.
Licensees who sell products or components to other licensees of
Research Frontiers do not pay a royalty on such sale and Research
Frontiers will collect such royalty from the licensee incorporating
such products or components into their own end-products. Research
Frontiers' license agreements typically allow the licensee to
terminate the license after some period of time, and give Research
Frontiers only limited rights to terminate before the license expires.
Most licenses are non-exclusive and generally last as long as our
patents remain in effect. To date, revenues from license agreements
have not been sufficient to fund the Company's costs of operation.

 (9)         Commitments

The Company has an employment agreement with one of its
officers which provides for an annual base salary of $393,091
through December 31, 2007.

The Company has a defined contribution profit sharing (401K) plan
covering employees who have completed one year of service.
Contributions are made at the discretion of the Company.  The
Company did not make any contributions to this plan for 2006,
2005 or 2004.

The Company occupies premises under an operating lease
agreement which expires on January 31, 2014.  At December 31,
2006, the approximate minimum annual future rental commitment
under this lease for the next five years are as follows:

2007:      $162,000
2008:      $164,000
2009:      $167,000
2010:      $169,000
2011:      $171,000
Thereafter:$365,000

Rent expense, including other occupancy related expenses,
amounted to approximately $169,000, $175,000, and $168,000, for
2006, 2005, and 2004, respectively.

 (10)   Rights Plan

In February 2003, the Company's Board of Directors adopted a
Stockholders' Rights Plan and declared a dividend distribution of
one Right for each outstanding share of Company common stock to
stockholders of record at the close of business on March 3, 2003.
Subject to certain exceptions listed in the Rights Plan, if a person or
group has acquired beneficial ownership of, or commences a tender
or exchange offer for, 15% or more of the Company's common
stock, unless redeemed by the Company's Board of Directors, each
Right entitles the holder (other than the acquiring person) to
purchase from the Company $120 worth of common stock for $60.
If the Company is merged into, or 50% or more of its assets or
earning power is sold to, the acquiring company, the Rights will
also enable the holder (other than the acquiring person) to purchase
$120 worth of common stock of the acquiring company for $60.
The Rights will expire at the close of business on February 18,
2013, unless the Rights Plan is extended by the Company's Board
of Directors or unless the Rights are earlier redeemed by the
Company at a price of $.0001 per Right. The Rights are not
exercisable during the time when they are redeemable by the
Company.

            (11) Selected Quarterly Financial Data (Unaudited)
                                         Quarter
2006                          First   Second    Third   Fourth
Fee income                  $26,250  $63,889  $36,250  $36,250
Operating loss             (941,312)(856,973)(780,592)(812,843)
Net loss                   (918,106)(831,699)(764,912)(788,916)
Basic and diluted net
 loss per common share (1)     (.07)    (.06)    (.05)    (.06)

2005                          First   Second    Third   Fourth
Fee income                  $41,250  $36,992  $26,750  $33,750
Operating loss             (962,734)(999,180)(951,098)(964,282)
Net loss                   (940,498)(962,104)(914,867)(930,063)
Basic and diluted net
 loss per common share (1)     (.07)    (.07)    (.07)    (.07)

(1)  Since per share information is computed independently for each
quarter and the full year, based on the respective average number of
common shares outstanding, the sum of the quarterly per share amounts
does not necessarily equal the per share amounts for the year.

(12)    Subsequent Event

In February 2007, the Company raised $6,650,000 in net proceeds in
connection with the registered sale to accredited investors of 682,102
shares of its common stock. In connection with this offering, a bonus
equal to $133,000 was paid to management of the Company, and a
fee of $10,500 was paid to a third party, and the Company will
record these expenses in the first quarter of 2007.


                            SCHEDULE II




                  RESEARCH FRONTIERS INCORPORATED

                 VALUATION AND QUALIFYING ACCOUNTS


           Years ended December 31, 2006, 2005, and 2004



                           Balance at Charged to           Balance
                           beginning  costs and            at end
Description                of period  expenses  Deductions of period

Allowance for uncollectible
 royalty receivables:

December 31, 2006          $  78,764 $  25,000   $     0   $ 103,674

December 31, 2005          $  82,522 $  40,795   $44,643*  $  78,674

December 31, 2004          $  50,000 $  32,522   $     0   $  82,522



*Previously reserved receivables written off to the reserve.