NASDAQ:REFR Research Frontiers Q4 2023 Earnings Report $1.06 0.00 (0.00%) Closing price 04/28/2025 03:57 PM EasternExtended Trading$1.03 -0.03 (-2.74%) As of 04/28/2025 04:38 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History Research Frontiers EPS ResultsActual EPS-$0.02Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AResearch Frontiers Revenue ResultsActual Revenue$0.31 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AResearch Frontiers Announcement DetailsQuarterQ4 2023Date3/7/2024TimeAfter Market ClosesConference Call DateThursday, March 7, 2024Conference Call Time4:30PM ETUpcoming EarningsResearch Frontiers' Q1 2025 earnings is scheduled for Thursday, May 8, 2025, with a conference call scheduled at 5:30 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Annual Report (10-K)Earnings HistoryCompany ProfilePowered by Research Frontiers Q4 2023 Earnings Call TranscriptProvided by QuartrMarch 7, 2024 ShareLink copied to clipboard.There are 8 speakers on the call. Operator00:00:00Good afternoon, ladies and gentlemen. Welcome to Research Frontiers Investor Conference Call to discuss the 4th Quarter and full year 2023 results of operations and recent developments. During today's presentation, all parties will be in a listen only mode. This conference is being recorded today. A replay of this conference call will be available starting later today in the Investors section of Research Frontier's website Speaker 100:00:36at www.smartglass.com Operator00:00:41and will be available for replay for the next 90 days. Please note that some of the comments made today may contain forward looking information. The words expect, anticipate, plans, forecasts and similar expressions are intended to identify forward looking statements. Statements that are not historical facts are forward looking statements that are made pursuant to the Safe Harbor provisions that are part of the Securities Litigation Reform Act of 1995. These statements reflect the company's current beliefs that a number of important factors could cause actual results for future periods to differ materially from those expressed. Operator00:01:31Significant factors that could cause results to differ from those anticipated are described in our filings with the SEC. Research Frontiers undertakes no obligation to update or revise these forward looking statements to reflect new events or uncertainties. The company will be answering many of the questions that were emailed to it prior to this conference call, either in their presentation or as part of the Q and A session at the end. In some cases, the company has responded directly to email questions prior to this call or will do so afterwards. In order to answer more questions of general interest to shareholders on this call, if you find that your question has been substantially answered as a courtesy and to allow time for other shareholders to ask their questions, please remove yourself from the queue by pressing star 2. Operator00:02:39I would now like to turn the conference over to Joe Harari, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir. Speaker 100:02:49Thank you, Paul, and hello, everyone, and welcome to our 4th quarter and full year 2023 investor conference call. As you have seen from the numbers that we released about 30 minutes ago on our 10 ks, revenues were up quite substantially, 109% in this past year. Costs have been reduced and we're much closer to profitability. Today, we're going to discuss what's underneath these numbers and why we can all expect 2024 to be an even better year for Research Frontiers and its shareholders and licensees. Research Frontiers is the market leader in SmartGlass. Speaker 100:03:29We're also the most diversified company in the smart glass industry with product applications in automotive, aircraft, architectural glass, marine glass and augmented reality displays and other areas, including consumer products. We're also the most diversified in terms of skills and capabilities of the companies we work with and geographically diverse, with licensees operating on almost every continent except Antarctica. This broad and diverse footprint allows us to coordinate, collaborate and service the needs of our customers locally and rapidly wherever they are. Right now, the markets we primarily serve are automotive and aircraft, and this has been our bread and butter since 2011 when the first Mercedes came out in series production with our technology in it. We were the 1st to apply switchable TIN technology to the aircraft industry in both general aviation and transport category aircraft. Speaker 100:04:27We are the only switchable TIN technology in helicopters. And this past year, we were introduced on several aircraft produced by Airbus and more recently by Boeing. Perhaps of even greater significance here is the change in the way that the switchable tint technology being used in these aircraft was selected. It was selected by the customer and not just by the manufacturer. That is a result of the sustained and focused effort by Research Frontiers and our licensees to highlight the benefits that SPD technology brings to the passengers, to the cabin crew and to the confident passenger experience of everyone on board. Speaker 100:05:10In terms of reliability and competence, SPD Smart Technology is the is the longest smart glass technology being used in cars and aircraft and even architectural applications, which up until recently was something we didn't speak about too much. Fortunately, Gauzy is able to currently produce much wider film than Hitachi Chemical was able to produce in the past. This has opened up the architectural markets with new products, including an elegant and easy to implement retrofit solution with the potential to dramatically reduce the costs and streamline the installation process of smart windows throughout the world. I'm happy to say today that this retrofit solution is not only ready for use, but it's already passed years years of field testing. We're quite excited about it because it has the enormous revenue potential for Research Frontiers in our licensees and also makes incorporating or adding a smart window system to any home or building in the world a much easier decision. Speaker 100:06:11Let's talk more about the 3 areas we see for near term focus in the architectural market. 1st, let's first focus on the benefits: energy efficiency, elegant shading capabilities and view preservation. Homes, offices and apartments with magnificent views don't want to block them with shades or blinds. SPD SmartGlass allows you to tune the amount of light coming in from clear to blocking 99.5% of the light, making them very effective shading devices and saving energy. In some cases, homeowners saw a 20% reduction in electricity usage in areas of the home that use just SPD Smart skylights. Speaker 100:06:54And let's further talk about skylights for a moment. They are typically hard to shade and quite expensive to shade. At the National Home Builders Show about a week ago, I saw skylight shades add about $500 to $700 to the cost of the skylight. Add the contractor markup and it's even higher. So we're quite cost effective in that market and can eliminate the space, mechanical system that can break and of course the cost and maintenance that Skylight Shades require. Speaker 100:07:26Next, let's talk about architectural government building upgrades. There are GSA government mandates for upgrading non energy efficient glass in government buildings with more efficient energy efficient glass. Some of our key licensees are already approved and on the GSA list and supplying advanced window products to the U. S. And state and local governments, including embassies, court houses, schools, prisons and other facilities. Speaker 100:07:54This is a large and natural near term customer for SPD Smart Windows. The GSA is actually, I think, the largest customer in the world. And with the new retrofit application for SPD SmartGlass, the broader market for homes, office buildings and apartments now becomes wide open. And with government incentives such as the investment tax credit introduced by the Dynamic Glass Act that gives a 30% to 50% tax credit to users and similar incentives around the world by other governments, the economics behind introducing smart glasses as a result of all these factors have become much better as governments have begun to financially support this with various incentives. We've spoken about cost reductions to streamline implementation techniques such as the retrofit applications and government incentives. Speaker 100:08:47Another factor that has reduced costs is the production efficiencies and the way that SPD film is made and distributed throughout the world. We are fortunate to have the leadership and vision of our licensee, strategic investor and partner Gauzy in this area. We have had a very strong working relationship with Gauzy from day 1. And this past year, their business expansion along with very positive developments in our industry have both significantly increased the frequency in which we meet and collaborate. We're working with them in Israel, Germany, France, China, South Korea and of course throughout the United States. Speaker 100:09:26And just this week alone, we introduced a new automotive project to Gaussian in Asia. Returning back to automotive for a moment, let's look at the numbers there. It is clearly our largest market now, but it may be supplanted in the medium term by architectural or information display applications such as augmented reality. We had an overall increase in royalty income in 2023 compared to 2022 of 69%, which is in itself a quite healthy growth rate. Even more dramatic, automotive royalties were up by triple digits, 178% between 2023 2022. Speaker 100:10:08And even within 2023, automotive royalty income more than doubled between the 3rd 4th quarters of this year. As many of you know, Ferrari introduced an all glass roof in their new sold out 4 door Purosangue. If you want a glass roof on this car, it must have SPD SmartGlass in it. You don't have a choice. Sales started in Q1 2023 for our licensees applying Ferrari and more than tripled between the 1st and third quarter of this year. Speaker 100:10:36And then unit volumes more than doubled again between the 3rd quarter and the more recently reported Q4. And we expect continued growth in the Ferrari program based on this trend and also based upon higher SPD film orders at Gauzy for 2024 from our licensee that's supplying Ferrari. We also expect higher automotive royalties in 2024 based upon new products and models, including the one from Asia and some new models to be produced in Europe. With that, I look forward to answering your questions and we'll take some of the ones that have been emailed to us first. First of all, thank you, Jared A, Jeff K, Jeff H, Chuck M, Bob P, Robert B, Steve A and John Nelson for your questions. Speaker 100:11:20And also thank you for your kind words about the safety of Gauzy, whose operations have thankfully not been disrupted by the war in Israel and are all safe. To save time and to be able to cover more ground here today, I've answered many of these questions in my presentation. I will address some of them further in my closing remarks. And of course, if I don't fully answer them in the interest of time, please follow-up with me by e mail. So here are some of the additional questions that were e mailed to us. Speaker 100:11:49In some cases, I'm combining several related questions into one. Joe, can you comment on the lawsuit that was brought against Research Frontiers Gauzy and Vision Systems in Florida? Well, this was recently resolved and it was a total victory for us. The federal court threw out all the claims against our companies. However, even prior to this filing, we've always maintained that it was a lawsuit that never should have been brought. Speaker 100:12:15And that this is because there was, of course, no infringing or other improper activity, but more significantly for the future was the fact that the court agreed with us as to the effect and validity of the provision that is in all of our license agreements in one form or another that gives us a license back in the smart glass related intellectual property of our licensees when their license terminates or expires. The fact that this provision was blessed by the court is a significant precedent. This provision basically says that if a license agreement ends for any reason, Research Frontiers and through us, our licensees, gets the right to use the invention and improvements developed by our licensees relating to SmartGlass. This has resulted in the expansion of our intellectual property portfolio. And from an economic standpoint, this ruling also has significance because the court awarded us sanctions against the attorney and law firm that brought the suit for their conduct in this case. Speaker 100:13:16Our recently filed proof of damages puts this amount at over $600,000 currently. Another question. We've heard nothing on the development of black particles. Is this still a possibility? And does it offer a greater opportunity? Speaker 100:13:31Thanks, Jeff H. Thanks, Jeff, for the question. We, as well as Gauzy, have been actively working throughout the years to develop a more color neutral form of SPD besides the current blue particle. And we have achieved this in the way that existing materials are fabricated, but we'd love to also change the particles themselves used in our SPD film to do this. And we've made great progress at Research Frontiers, and I can't speak for Gauzy, but our progress will certainly benefit them. Speaker 100:14:02So stay tuned on that. And to answer your other question, when we are successful with a new particle, it certainly would further enhance the markets and opportunities for our SPD SmartGlass. New product improvements always do that. However, you can see from our results of operations reported for 2023 that the existing blue colored SPD is also getting great traction across multiple industries and for new uses. We've discussed a lot of exciting topics so far today, and I'll now ask our operator, Paul, to open up the conference to any additional questions people participating today might have had that haven't already been covered. Operator00:14:46Thank you, And our first question comes from Ted Campbell, a Private Investor. Your line is open. Speaker 200:15:16Hey, Joe. How are you? Speaker 100:15:19Ted, it's great to hear from you. I hope you've been well. Speaker 200:15:22I've been well. Thanks for asking. It's always a pleasure talking with you. And I just want to congratulate you on a nice fourth quarter, a really nice 4th quarter and then improved 2023. It's great to see the increase in revenues for both of those, but especially this 4th quarter. Speaker 200:15:42Is that something you think we're going Speaker 100:15:43to be doing? I mean, thank you, Ed. I can't take full credit, though. It's a team effort among us and our licensees, but we've all worked hard and I'm really pleased with it as well. But thank you for that. Speaker 200:15:54No, I know that. I appreciate everybody's hard work. But it's increasing revenues, especially in the Q4, do you think that's something we can build on in that 2024? Or was this like a one time event in the Q4? Speaker 100:16:11I think based on the trends that we're seeing, I mean, a lot of that was due to Ferrari coming on board with their all glass roots using our technology. And based on the film orders for 2024 by the licensee that's supplying Ferrari, I expect that to actually grow quite a bit in the coming year. Speaker 200:16:36So yes, I don't think it's a Speaker 300:16:37one time event. It's not Speaker 100:16:38a one time event. Yes, definitely we'll build on it. Plus we have a car coming on board from Asia that everybody is quite excited about that's more of a medium sized car. And then also a couple more cars that are being produced in Europe that will be new introduction for SVB. So yes, I think that we're going to do quite well in the coming year. Speaker 200:17:04Yes, I'm excited about the upcoming models. But I also like your comments on the retrofit market. I'm really looking forward to revenues coming from that. Speaker 100:17:14I think it's a game changer. And I appreciate you picking up on that. Right now, if you wanted to put a smart window in a building, you got to take out the glass. And if you're on a building that has more than 1 or 2 floors, you have to put up scaffolding, which is very expensive and disruptive to the retail stores on the ground floor and things like that. So this retrofit solution allows you actually to install smart windows from the inside of the building. Speaker 200:17:44And you don't have to put up scaffolding. You don't have Speaker 100:17:46to get landlord approval. We still have to do a lot of things that can either add to the cost or increase the delays in getting a system. And we've seen installations of this system where you come in over the weekend and do it. So you're probably not even disrupting the workflow in an existing office. Speaker 200:18:09All right. Well, I don't want to hog anybody else's time asking questions, but it's always good talking to you and thanks again to everybody at Research Frontiers and Ghazi for all the hard work you put in. Speaker 100:18:23Thank you, Ken. Appreciate it very much. Speaker 200:18:25All right. Have a good one. Speaker 300:18:28You too. Operator00:18:30Thank you. Our next question comes from Allen Ginsberg, a Private Investor. Your line is open. Speaker 400:18:39Yes. Speaker 100:18:40Hi, Joe. How are you? Hi, Alan. How are you? I'm fine. Speaker 100:18:45Last call, you mentioned Hitachi in passing, but I've heard nothing since then. Is there anything going on there which might lead us to believe that they might again be part of the manufacturing process here? I think you haven't seen the last of Hitachi's technology. I think that part of this I have to defer until a time when that could be more fully announced, but it's good for the industry. So you think there's a chance that they're going to be reintroducing different products? Speaker 100:19:27I think you're going to see their technology come into the marketplace, perhaps from different paths than you would expect, but significant for us. And do they still obviously, they still have a license even though they sold Right. They still have a license. They still have a license. Even though the company itself was sold to show a Danko and then renamed itself, the license still is intact. Speaker 100:19:55Okay, thanks. That's all I wanted to ask. Thank you. Speaker 500:19:59You're welcome. Operator00:20:03Our next question comes from Gerald Sherman of Strategic Planning Group. Your line is open. Speaker 400:20:11Thank you. Hi, Joe. Question for you on the cash flow situation and the current cash you guys have in the bank. I was kind of under the impression from the last couple of calls that we had like a 4 year running room and now after reading this last financial that came out, it looks like you got a negative cash flow of about $1,000,000 for next year. Speaker 100:20:37Are you No, what's yes. We actually have a 5 year runway. We put that in the press release. What you're seeing is kind of an accounting way of expressing it, which the way they test things is do you have enough cash to last year at least 12 months from the filing date. But if you look at our MD and A section or in the press release that came out, it's about a 5 year runway. Speaker 100:21:04Now some of that is cash on hand. We had $2,500,000 at the end of the year and much lower burn rate as we approach breakeven and then also anticipated revenues from the existing projects. So I don't know if we're going to raise money or not. Mercedes or Ferrari or McLaren wants to make a strategic investment, I might say yes. That's always good. Speaker 100:21:29Gauzy has a strategic investment from Hyundai and that's been very helpful for their business. So you never know where those things can lead you, but I don't anticipate doing an offering. Speaker 400:21:41Okay. All right. Great. Thank you. Speaker 100:21:43Thank you. Operator00:21:54And our next question comes from Leonard Dietzal, a Private Investor. Your line is open. Speaker 500:22:02Hey, good afternoon, Joe. Speaker 100:22:04Hey, Len. Great to hear from you. Speaker 500:22:07It's great to be here, buddy. Speaker 300:22:10When do you think we're going Speaker 500:22:11to be over the hump deposited cash flow? Is that going Speaker 100:22:18to happen in 2024? I don't know. If the trends continue, it's a possibility. I don't want to predict when we become cash flow positive or profitable, but because that depends on things outside of our control. But a lot of those seeds that we've planted over the last several years are beginning to see pop up nicely. Speaker 100:22:36And we're also seeing a more predictable for us. So I have a greater degree of confidence that we're on the right path there. Speaker 300:22:54They're using it more windows then, right? Speaker 100:22:57More windows and a lot of people are beginning to realize in the automotive industry the benefits of putting this in a vehicle and the shortcomings of what other technologies that have promised the world and haven't delivered it have. So, I think you'll see that there's a lot more cars that are using SPD than anything else and new ones coming in or switching over from other technologies to us. So, I think that will all be very good for us and for our licensees. Speaker 500:23:30Okay. And you've had some retrofits with government buildings recently? Speaker 100:23:38We've had it over the last several years as part of test programs to make sure that the system is reliable and easy to work with and easy to implement. We've improved the system even more since those initial tests started, but everything is moving in a very positive direction. And I think that's the end point for architectural. Speaker 500:24:01And then with the tax credits, it would seem like everybody how long do those last? Do you know how many years that we can look forward to that? Speaker 100:24:12It's complicated calculation, but I think you can get a lot of it upfront. So it makes implementation a lot easier. And you never know with the government when they're going to either increase or decrease a program, they usually increase. Yes. But I mean, it's nice to be mentioned in the same sentences as other recognizable energy efficient technologies like solar energy and other things like that. Speaker 100:24:44It just adds a lot of credibility that smart glass in general and us specifically have made it, got the recognition. Speaker 500:24:54Yes. With those projections outside of the day from again, that was for the marketing company. And so the reason they didn't mention you very much is it was their clients that people are making the comments for because that's Right. So I talked to the analyst and that's what he told me. So that's okay there. Speaker 100:25:17Yes. I don't mind if anyone increases awareness of smart glass. I'm so confident in our performance. And as you'll find probably, the costs have come down fairly considerably to the point where we can cut into the mid level cars, which tells you something. And because of that, it makes us cost competitive on a real economic basis, not on a subsidized basis like some companies do. Speaker 100:25:43So on a cost competitive. And we don't take on business, it's not going to be profitable for our licensees. But it's nice to be able to have the awareness built out by these other companies and then take the business. Speaker 500:26:06Yes. Okay. Thank you very much, Operator00:26:12sir. Thanks, Len. Our next question comes from Art Brady, a Private Investor. Your line is open. Speaker 600:26:20Hi, Joe. Art Brady here. Speaker 100:26:22Hey, Art. How are you? Speaker 600:26:24Good. I'm just kind of curious if you and Gauzy have had any conversation regarding building of homes using smart glass. In other words, a whole house built out of smart glass. Speaker 100:26:45You mean no concrete or wood, just smart glass? Speaker 600:26:49Yes. Like, Speaker 100:26:51we haven't had that conversation. Speaker 600:26:54What was that? Speaker 100:26:56We have not had that conversation, but I'll say that the old adage about people living in glass houses shouldn't throw rocks. With our glass, it would protect you from the rocks and the privacy. So it's possible. Speaker 600:27:12I think there are some individuals who go all over it, especially your nature lovers. And the considerations are that this is part of the near future because if one of the car companies from what I heard was building a car out of smart glass, we could actually build a house out of smart class. And I think you guys should really give it significant consideration, especially what's going on with interactive possible building of facilities down in the future on the moon and Mars? Speaker 100:28:02Okay. Well, I think we're going to go for the low hanging fruit first, but it's such a big market that I don't rule anything out. But thanks for the question, Art. I appreciate it. Speaker 600:28:10Sure. Operator00:28:15Our next question comes from John Nelson, a Private Investor. Your line is open. Speaker 300:28:22Hi, Joe. How are you doing? Speaker 100:28:24Good. Hey, John. How are you doing? And thank you for your question and also your kind words about Gauzy earlier. Speaker 300:28:31Excellent. Thank you. A couple of questions on the Asian and European car projects that you discussed. Are they just for the involving the sunroof, moonroof? Or are they also any either of them involved with shading the windows? Speaker 100:29:03So one of the vehicles is just a sunroof. We're excited about that because the cost of the manufacturer is the lowest I've ever seen since 2010 when Mercedes started with that. So you're talking about a fairly substantial reduction in cost for that. So that's exciting in that respect. And then the other one actually uses side glass as well as roof glass. Speaker 100:29:30So, but thank you for the question because that could vastly expand the way our glass is being used and also the volumes. Speaker 300:29:42Great. Okay. And then regarding the retrofit solution, are you in a or I should say, are your licensees in position now to be taking orders? Speaker 100:30:01They will be in several months. Some of the data that we want to now generate with the latest and greatest SPD needs to be generated for the architects. The system itself is ready for prime time. Now as part of the selling process, when you go to architects, they want to know all the data about energy savings and reflectivity and all the things that are important to them. So that's being generated. Speaker 300:30:31Okay. And then regarding skylights, is are the products being worked on simply the laminated product for new or is there a retrofit product being tested for skylights also? Speaker 100:30:56Both. So sometimes when you're putting in a skylight, it's new glass. So you just put in new smart glass there and there's usually wiring very close to where the skylight is anyway coming through the ceiling or through those areas. With the retrofit, you can do that also. So if you wanted to retrofit an existing skylight with an SPD functionality, we've done that and it's actually had very good energy characteristics doing that because it also creates this air gap between the outer glass and the inner SPD pane. Speaker 100:31:30So you could actually enhance even further some of the energy efficiency. Because you're not really so concerned about losing space like you would like if you put it in your living room on vertical glass on a skylight. Adding that air gap actually could be beneficial, if not some sort of detriment. Speaker 300:31:53Okay, very good. That's all I have. Thank you. Speaker 100:31:56Great. Thanks Operator00:32:00a lot, John. And our next question comes from August Berman, Private Investor. Your line is open, sir. Speaker 400:32:15Hey, Joe. How are you? Speaker 100:32:17Hey, Doctor. Berman. How are you? Speaker 400:32:19I'm well. Thank you. Happy earnings day. Speaker 100:32:24Thank you very much. I hope everyone is as happy as I am about the numbers. Speaker 400:32:29Absolutely. No good to see that for sure. Just had a couple of questions. Speaker 300:32:35First for Speaker 400:32:36the press release, it looks like there was a slight modification in some of the language for the Asian model. Have they have the Asian model indicated it might not be first half 2024? Speaker 100:32:51They haven't indicated one way or another. I'd just like to build in a cushion given what happened because we were expecting that in the last in the second half of twenty twenty three. And for reasons unrelated to SPD and more in general with their kind of production and QA issues that they had with the rest of the car, things got delayed. So being a little cautious, that's all. Speaker 400:33:16Understand. And then I also noticed that I had mentioned instead of at least one, just referring to one agent model. Are we still looking at multiple Asian models? Or have things changed in conversations? Speaker 100:33:32Things haven't changed. I just once again want to be as conservative as possible. The numbers will speak for themselves and the car introductions will speak for themselves. And one of the things I hope happens is that the carmakers will be a little bit more forthcoming as to what technology they're using. And if you kind of remember, when Mercedes came out with the SLK, it was a little bit of a sales job, but we needed, we wanted and we impressed upon them the benefit of making the connection between the name Magic Sky Control and SPD SmartGlass and they allowed us to do that. Speaker 100:34:12When McLaren came out with their SPD roof, they just called it electrochromatic, the generic term. And up until this year, they have now you're seeing they're starting to refer to as SPD, which I think it indicates we're more of a badge of honor now. For a while there, they didn't want to reveal what the secret sauce is in their cars in terms of what technology they were using. But now it's become a badge of honor. It's like putting a block pump or a arming card in stereo system that say it's a badge of honor to put SPD in there. Speaker 100:34:50So you're starting to see more carmakers, I think, and I hope continue to do that where they mention us by name. But if they don't, we'll find a way to make sure that our shareholders know what cars we're in. Like Ferrari hasn't mentioned us as SPD in official pronouncements, but McLaren now did. So I think the gate is beginning to open there. Speaker 200:35:11Yes. No, Speaker 400:35:11I was very excited to see that when they came out with that. And we pretty much seem to be in every car for McLaren that has a glass roof. So that's great to see. Speaker 300:35:21And hopefully, Ferrari kind of falls at the Speaker 400:35:22same softness in the models. I just had one other question. When I saw the news, I was very excited. And then I didn't see much follow-up afterwards. And I just kind of thought maybe it was just because of poor timing with the 7 37 issues. Speaker 400:35:41Are we under NDA for discussing that further, the Boeing 737 that's going Speaker 200:35:46to be Yes, Speaker 100:35:47we're still waiting for permission to talk about the aircraft market. But I will say this, and you kind of raised an interesting thing that may be helpful to everyone on the call. People should pay attention to a couple of things. I mentioned in the past pay attention to what you see in patent applications and patents because it will tell you companies that are working with our technology that we can't necessarily say are working with our technology. But also pay attention to what happens at trade shows. Speaker 100:36:15Trade shows are not only a forum for us to meet key decision makers and have meaningful conversations with them, but there's a lot of other benefits. And at CES this year, there was a number of things that were publicly announced, but there are also some things that we're still waiting on permission to be able to talk about publicly. And I'll tell you a little bit about something that we're still waiting on permission for. So I can't give a lot of details, but I'll give probably enough to make everyone understand Speaker 300:36:48where some Speaker 100:36:49of these things are going. One specialty vehicle, for example, at CES that's slated for production next year and it's not a car, incorporated a novel approach to augmented reality in the windshield. And a key part of this was made possible by a combination of transparent OLED technology by LG and SPD technology that was produced by Galaxy. And the implementation of this was extremely well done. I mean, you could see the vibrancy added to the augmented reality display by using SPDs in the windshield. Speaker 400:37:39Joe, are you still there? Operator00:37:41Ladies and gentlemen, please stand by. We've lost Mr. Harari again. Please stand by. We've lost Mr. Operator00:37:47Harari. Speaker 100:37:48Okay. No, I'm back. I'm back. I apologize. So what I was saying is that CES, there was a specialty vehicle. Speaker 100:37:56It's not a car. And it was an augmented reality windshield that was made possible because of the combination of SPD film from Gauzy and the transparent OLED technology by Lucky LG Group. And it was extremely well done and you could see the vibrancy that added the that happened with the augmented reality display by using the SPD film in the windshield. This product got a lot of attention in general. And at one point, when I was at the booth of this company, the Chairman of their South Korean parent corporation came to pay tribute to this vehicle and he didn't know where I was. Speaker 100:38:37I was standing on the side and I was watching and he even politely and reverently bowed towards it while he was there. And it even made the show newsletter as the What's Hot at CES product on day 2 of the show. And while SPD was not mentioned in the public articles about that, we're hoping to be able to talk about this in more detail when we and Gauzy have permission on that. But it gives you an idea of some of the things that are very pleasant surprises when you go to some of these shows. So we pay very much attention and we try to attend all the major trade shows for a variety of reasons, including that. Speaker 100:39:15And just so there's no misunderstanding, even though this company is owned by a South Korean company, I'm not referring to the Asian car that we expected towards the end of last year with SPD. That's totally different and very much on track and going through its final development stages prior to launch. But and that promises to be just a very exciting project because the cost to the manufacture of our technology has come down so much as to make it feasible for inclusion in a relatively moderately priced vehicle. And that, of course, bodes well for SPD's smart technology being incorporated in much higher volumes across the middle market cars throughout the world. But pay attention to trade shows and I think that's you'll get some very good information as to what's going on. Speaker 100:40:06Sorry for that long winded answer, Doctor. Berman, but I Speaker 400:40:11I appreciate that. And honestly, I think just shareholders have also noticed that substantial increase and just commentary, both well, mostly by Gauzy, just looking at their social media page, they seem to be every couple of days, they mentioned something as to be. So I think this is I want to say this is the time, and I'm hoping it is, but it appears that things are more ready than ever before. And yes, good luck to shareholders, and I think we're on the right track. So Speaker 100:40:44And thanks for noticing the increased frequency of the communications by Gauzy. Like us, we try to say as much as we can when we have permission. And I think you probably have surmised that the frequency that we communicate with Gauzy is very often. I mean, it was much less when it was just Hitachi making film, but Gauzy has just been a wonderful partner, both in making film and in products and unlocking new industries and things like that and they're very visionary and they're very dedicated to this. And their future is betting on SPD. Speaker 100:41:20So we work very closely together and they were in New York 10 days ago. They're coming back to New York. I've met with them in Israel. I've met with them in France. I've met with them in Germany. Speaker 100:41:34There's just a wealth of opportunity for our industry and they and we are very much at the center of that. So but thanks for noticing that they've become a lot more visible about this. Speaker 400:41:49Yes. Well, appreciate it, Joe. Thank you. Speaker 100:41:51Thank you. Thanks a lot. Operator00:41:55Our next question comes from Mike Selnick, Investor. Your line is open. Speaker 600:42:03Thank you. Hi, Joe. Speaker 100:42:05Hey, Mike. Good to hear from you. Speaker 300:42:07And you too. And just been reading your latest report that was posted about an hour ago. And I see revenues are up 109%. That's what we like to see. That's good. Speaker 100:42:25I like triple digits. Yes. Speaker 300:42:28Question I have has to do with Boeing and Airbus. I read the other day in the newspaper that both companies and I think some other airlines as well, Both companies have received orders from major airlines for 100 of passenger jets, large passenger jets. What do you think the prospects are that on these orders Speaker 100:43:05using SPD Speaker 300:43:07on their windows? Speaker 100:43:10Well, I think they're quite good and it's a great question. Let me kind of go a little deeper into why I think that. So if you take, for example, the automotive market, when Mercedes and Research Frontiers was developing the SPD SmartGlass product for the SLK, we had blinders on. We were just focusing on doing everything possible to make sure that Mercedes is happy. And it was a good strategy because we knew that if they were happy and they have a very good reputation for quality assurance and production and innovation that everyone else would follow. Speaker 100:43:46And then you started to see all the other industries fall into place nicely after that. So it was a good strategy to focus on making your launch customer happy. And once it was validated for automotive use, more and more companies like McLaren and General Motors and everyone jumped on board because they knew that it was something they could reliably and safely put in their cars. And the same thing with aircraft. I think one of the significant things that happened this year is that we've been chosen for transport category aircraft, the big ones, the big aircraft. Speaker 100:44:26And the other thing that I think is significant is that we've gone from being pushed by manufacturers on their customers, that's what they were doing at Boeing and Airbus before, and having the customer decide what technology they want in the aircraft. So you now have a technology that's been validated. It's in a number of different aircraft and it's been reliably flying for decades. And you have something that performs better than the current electrochromic failure, 2 second switching speed with no iris effect compared to 1.5 minute for an electrochromic window to switch. So you have something that the customers can see as a much better performing aircraft window and greater dynamic range, just a whole host of things, right? Speaker 100:45:22So we're excited about that because when judged on the merits, I don't think there's any reason not to use SPD in an aircraft. And it doesn't have some of the things that if you go on YouTube, you could see windows that are heating up and catching fire and cracking and doing things with other technologies because they're more like a battery. And when a battery gets damaged, it gets hot. Think about your cell phone battery. So, I think that there's a lot of things that are pointing towards great success in the aircraft industry and especially the transport category aircraft industry. Speaker 100:46:01So Airbus and Boeing, I think, are significant developments and they're going to have legs. Speaker 300:46:10Good to hear. Let's hope those contacts with those 2 companies play out this year. Thank you, sir. Speaker 100:46:20Yes. We stay in good shape with everyone. Thank you, Mike. Operator00:46:28Thank you. Our next question comes from Bruce Denning, Private Investor. Your line is open. Speaker 300:46:40Hi, Joe. How are you? Speaker 100:46:42Hey, Doctor. Denny. How are you? Speaker 300:46:44Very well. Thanks. Just one question. Congratulations on everything that's going on. My question, I think I've asked in past conference calls, but it always seems like a no brainer to me to couple the transparent solar cells with our window applications. Speaker 300:47:09Has anyone ever looked into this that you know of? Speaker 200:47:14Yes. So let me give you Speaker 100:47:16a couple of examples where it's been successfully implemented. Vision Systems had an aircraft window that generated 20 times as much power as the window needed to operate using transparent photovoltaics. And because of that, they actually put a charging port, so you could charge your phone on the aircraft window with a USB port. With the retrofit application, that's something that we're very much looking into is the combination of photovoltaics with SPD. Because if you think about it, then you don't need to have an electrician come to the job site when you're doing the retrofit. Speaker 100:47:54Exactly. Even in a commercial installation, you just pop it into the window and you're good to go. So and we actually had discussions about that 2 days ago also about that. So yes, very much in the plans. Speaker 300:48:12Excellent. So glad to hear it. Thank you so much, Joe. Speaker 100:48:15Thanks a lot. Operator00:48:19Our next question comes from Jeff Harrigan, a Private Investor. Your line is open. Speaker 500:48:26Hi, Joe. Hey, Jeff. How are you? Speaker 300:48:29Good. On your last conference call, you did mention that the car wasn't going to happen until the second half of the year. So has that changed any? Or you still anticipate the Asian car in the second half of the year? Speaker 100:48:44The second half of last year was the original expectation. And then we basically said, well, based on what we know, it's probably going to be the first half of this year. And my expectation is we're very much on track. But with everything else that kind of caused the delay in the car that wasn't related to SPB, I don't want to pin it down too much, but believe me, when the car company implements it, we're all going to be thrilled. Speaker 300:49:19So one thing you haven't talked about at all is the display market, which you talked about, I think, last time. Isn't there anything going on in the display market? I know you talked about Speaker 500:49:30it before. Oh, yes. Oh, yes. No. So one of Speaker 100:49:33the things that we talked about in the past is windows that incorporated display inside the glass using a combination of either electroluminescent displays and Gauzy Vision Systems has been doing that and things like aircraft windows and train windows and bus windows for years. And then more recently, using transparent OLEDs with SPD film to make a very vibrant display. And that's what I was talking about at CES, the specialty vehicle that had an augmented reality display. It was a display that combined transparent OLEDs and SPD film. And it was just really amazing to look at. Speaker 100:50:21I mean, it wasn't only me, but Speaker 500:50:24the press loved it too. Speaker 300:50:26But when can we expect to see some business from that? Speaker 100:50:32Well, they're talking about that vehicle coming out next year. And Speaker 300:50:35No. I'm talking about Speaker 100:50:36between that Speaker 300:50:37display in a window, like in a department store. Speaker 100:50:42That could come out anytime. That's with the matter of implementation. And if you look at kind of the frequency that LG, who's kind of leading the charge on that, has been exhibiting this. If you went if you walked around CES, you'd see about 4 or 5 different booths from different companies that had transparent OLEDs that were being used to display things. And when you want that display to be vibrant, you would use SPD, especially if there's ambient light that can wash it out. Speaker 100:51:17But do Speaker 300:51:18you know that any of them have actually been installed? Speaker 100:51:24There have been installations, but a lot of that I wouldn't consider high volume. In the past, before LG went into this, they did museums and all sorts of things that were combining this. And because of the success of that, they did more. And now they're putting it into more mainstream stuff. But it's not something that we have prediction. Speaker 300:51:49Okay. When do you think we'll actually get some architectural business? I mean, I'm very disappointed that that hasn't happened sooner. I mean, as you know, we Speaker 100:51:57I don't know if you heard the earlier part of the call, but there's 3 prongs we're going after in architectural. One is the hard to shade areas like skylights. And then the second is government. And the third is traditional homes, offices and apartments. And the game changer on that is the retrofit application. Speaker 100:52:20You could have sales this year in that. Speaker 300:52:23I mean, it was last year in that. I mean, it's just it's especially with the retrofit makes a lot of sense. And the rest Speaker 100:52:36of the city is really ready now. Speaker 300:52:39I live in a house that had I'm in a climate where everybody has skylights and I had to spend lots of money to put shades up in all my skylights. So, it'd be great if somebody like Budget Blinds could carry a SPD line that you could go and get and put up and cover your skylights. Speaker 100:53:01Right. Although I don't know if budget lines is the right entree into the market because then you kind of have a race to the bottom in terms of innovation and profitability. But your point is well taken that SPD would be a great solution for it. And when you consider what your traditional motorized shades in a skylight would cost And also, if you live in an area where there's snow, you can't put these shades on the outside of the skylight, has to be on the inside, so or inside the glass. So it has to be so SPD doesn't have limitations. Speaker 100:53:39You can put it in any environment you want. Speaker 300:53:43So speaking of the airline industry, I did see today that I think United has stopped ordering new planes because they don't have enough pilots. And that well, let me put it this way, they've stopped hiring new pilots because they can't get new planes. So I'm not sure that the growth in the airline industry is going to be that great because certainly Boeing has had an awful lot of problems with everything that they've been working on. But Speaker 100:54:12Well, they certainly have. They certainly have. Speaker 300:54:15I hope I mean, I know Airbus, I hope Speaker 100:54:18I don't think that's a sustained problem. I think that it's a terrible PR problem. I think it's a structural problem within Boeing that needs to be addressed. But I don't think that it's a permanent problem. So I think that But besides that And believe me, there's a lot of remember, Jeff, one thing to remember also, you could retrofit an existing plane with SPD. Speaker 100:54:43We do it all the time. So you don't have to wait for new planes. Speaker 300:54:50I'm surprised that hasn't happened because like when I fly down to Turks and Caicos, the first thing that the stewardess says is everybody shut their blinds. She could just Right. Speaker 100:54:59And I've been flipping a switch. Yes, flip a switch. Yes. Right. Yes. Speaker 100:55:04Yes. Speaker 300:55:05So besides this Asian company, which is going to be a mid priced car, are there any other manufacturers that potential have a mid priced car that are going to put SPD on? Speaker 100:55:18We're talking to them, yes. But I think that because of the strategic relationship that this car company has with one of our licensees, we're talking to see them have it first. Okay. Speaker 300:55:31Very good. Thank you, Joe. Speaker 100:55:33Thanks, Jeff. Good talking to you. Operator00:55:38We have a question from Leonard Lito, Private Investor. Your line is open. Speaker 300:55:44I'm back. I'm thinking, is anything going on in Speaker 500:55:47the industrial market with SPD? Speaker 100:55:51When you say the industrial market, what are you referring to? Speaker 500:55:54Well, I'm referring to things like people that are doing things with Bobcats and different things. Speaker 100:56:05Yes. It's funny you mentioned that. If you're a CES, you probably would have seen a very nice Bobcat. That's all I'm going to say about it. Okay? Operator00:56:36We have a question from Alex Allen Ginsberg, Private Investor. Your line is open. Speaker 100:56:43Yes. Hi, Joe. It's a follow-up question. You haven't mentioned anything about sun visors. Has there been any progress in that area? Speaker 100:56:53Yes, there has, still in development and a lot of that is driven by when the launch customer wants to come out with something. So it's just like one launch customer has to be the first one, is that it? Yes. I mean, there's always a possibility this could become an aftermarket. And if somebody doesn't do it, I would probably just do it. Speaker 100:57:13But I have to also respect the businesses in my licensees. Okay. Thank you. Thanks a lot. Speaker 600:57:22You're Operator00:57:26welcome. Our next question comes from Tom Hess, Private Investor. Your line is Speaker 300:57:33open. Yes. Hi, Joe. How are you doing? Speaker 100:57:36Hey, Tom. Speaker 700:57:38Yes. I was going to ask about the car you mentioned coming out with from Asian car there. And it sounds consistent in your words and it's even steady with it. So I do have faith it's coming this year. Without revealing, I know you can't reveal a lot, but could you give an idea on volume, like even not exactly in SPD, but even the car or anything at all, like is it going to be a trim package or what how many we're going to get in of that volume with SPV? Speaker 100:58:10I know what the initial we're going to call it a test market, but the test market for a car with this volume worldwide, the volume is pretty high. The test volume is greater than when Mercedes had all of their cars using this. So even a test market for something with this kind of volume was a significant number. I also expect though that the royalty per car is going to be lower than Mercedes because the price of the roof to this car company is lower than what Mercedes was paying back in 2010, 2011. But it could be significant. Speaker 100:58:49So we're excited. Speaker 700:58:51Yes. And that's good to hear. One follow-up on that. When you say the test market and the amount and all that, so you're basing this test market on cars that will have SPD, not just is that like a so that's kind of essentially a forecast of how many because not every car, unless it's a standard Speaker 100:59:09The forecast we were given, right. The forecast we were given for what they consider a test market, which I consider substantial volume, is pretty significant. Speaker 700:59:21And that's the best market forecasted for SPD, not just the volume of cars, it's a forecast. Right. Speaker 100:59:29These are the number of SPD roofs that are going to be produced. Speaker 700:59:32Okay. And I'm sure you probably can't say anything about if it's might be a more leaning towards a option or trim package or you can't say anything on that? Speaker 100:59:42I don't think they know, but I would if I was going to guess based on what I know about the way car companies implement this, they like to put things as an option because that's where they make their money. But sometimes an option could be a very high percentage take rate. If you look at McLaren versus Mercedes, the McLaren take rate for SPD is enormous. Speaker 701:00:05Yes. No, I'm sorry to interrupt that. I'm aware of that. I'm just thinking a trim package is technically an option. There's like a stand alone option or a trim package as an option. Speaker 701:00:15Trim package would be ideal. Speaker 101:00:17I don't know if they're going to do a trim package. Yes, I don't know if they're going to do it as part of a trim package or if they're going to do it as a standalone option or God willing one day it will be standard equipment because then you could totally downsize the size of your air conditioning to be a fraction of what they are. Speaker 701:00:35And it could be because the IX is pretty much it's in I think 95% or more of the PDLCs and 95% of IXs. So that could happen, but hopefully we at least get out of a trim package. I noticed they started doing that in some cars too. So well, thanks for your answers. Speaker 101:00:53Sure. Appreciate it. Thanks for the question. We Operator01:00:59have a question from Michael J. Private Investor. Your line is open. Speaker 601:01:06Hello, Joe. I'd like to Speaker 301:01:07ask, to what extent is cost still a barrier to having more organizations adopt SPD, especially the architectural one? Someone we even know posted in quite detail comparing the course of SPD with non SPD windows and it seemed that there still was a great disparity in that cost. Speaker 101:01:34I didn't see the post, so I can't speak to what the post said. But if you look at and if you go back to my earlier comments about why we're excited about this Asian carmaker, the price of the film, the price of the cost reduction from streamlining due to the retrofit use can be significant. And if you look at some of the costs that you're comparing it to like, let's say, the skylight, we're cheaper than a skylight shade. So it depends on how you analyze the market. The market is going to decide. Speaker 101:02:14If someone wants it, they're going to buy it. But I don't believe in side by side costs unless you have a context. Speaker 301:02:24To what extent is Mercedes still using SPD in their vehicle? It seems we don't have too much information regarding its adoption in other models. So what is the status of Mercedes and SPD? Speaker 101:02:41We have a very good relationship with the people at Mercedes and their name pops up on royalty reports from time to time. That's all I'm going to say. Speaker 301:02:51Okay. Thank you. Speaker 101:02:53Thanks a lot, Michael. And Operator01:02:59our next question comes from Seth Nickerson, a Private Investor. Your line is open. Mr. Nickerson, your line is open. Speaker 601:03:16Yes, hi. Speaker 101:03:17Thanks, Seth. How are you? Speaker 301:03:20I'm doing well, sir. Thanks. I noticed on Speaker 601:03:25a Speaker 301:03:25check board with Gauzy that posted about an MOU with OG back in January. Speaker 101:03:34I was wondering Speaker 401:03:35if you might Speaker 101:03:36Yes, they've had when we were talking about transparent OLED displays, that's LG providing they have a unique technology, which is a transparent form of OLED. And just to kind of go what's underneath that, so there's OLED displays out there and typically they're within your television on the wall. A transparent OLED allows you to actually put that on a clear substrate like a piece of glass, like a window. So the idea is you can turn a window into a television. But if you think about the optics of that, if you have that window face with daylight coming in from behind it, it's going to wash out the image. Speaker 101:04:22So if you now combine that transparent OLED with an SPD film, you have the ability to turn on the OLED to turn the window, if you will, into a television and block the ambient light by using an SPD film. So all of a sudden you go from having a washed out television image to a vibrant clear one. And then let's say you want to turn that window, that television back into a clear window, you would clear up the SPD film and turn off the OLED and you have a clear window. So that's the idea. It's quite remarkable when you see it in practice. Speaker 101:05:04And as I mentioned, when we were at CES, there was flat panel displays that had the combination transparent OLED and SPD film and Gaussi's booth and elsewhere. But also they had an augmented reality windshield where imagine a piece of construction equipment, for example, and superimposed on the windshield was where all the gas and electrical lines were on the site that you're digging. So you could see as you're digging where the areas you need to avoid are. Well, if you're on a construction site and there's daylight, it may be hard to read what's on your windshield. And now with the combination of SPV and transparent OLEDs, you could see quite clearly where the lines were, where the gas lines were, what to avoid. Speaker 101:06:01It was actually kind of cool too because they have external cameras on these construction equipments and you can actually with a gesture of your hand move the display over to the side. So let's say you're digging and you want to see where you're digging, you'd look at the camera because sometimes there's blind spots and the camera would help you. But let's say it's getting in the way of you doing your job, you just kind of just touch the screen and swipe it to the side and it's very much like minority report where you could just play with these things in real time. So it was quite remarkable. And LG and Gauzy have been working together on this combination for quite a while. Speaker 101:06:42And I had encouraged them to do that because we saw that there was some real traction in that market. Speaker 301:06:48I was watching the LG CES thing and at 32 minutes they brought out their TL LED and they had that showy black screen come up from the bottom. And I remember what Gauzy had, and it seemed like the answer. With the stock languishing like below $1 a ton, that you wouldn't make a press release about that. Speaker 101:07:16Even Gordon If we could, yes, Scott, if we could make a press release about things, we certainly would. A lot of times, we specifically ask not to or not now. And you have to respect the customer. True. Okay. Speaker 501:07:33Thank you. Speaker 101:07:34But Gauzy and I would love nothing more than to be able to talk about that. Operator01:07:47And seeing no further questions, I'll turn the call back over to your host. Speaker 101:07:52Thanks. Thanks, Paul. And remember, if we've not fully answered any questions that were emailed or asked today, just email us and we'll do our best. A couple of closing remarks. This past year has been transformative for Research Frontiers, marked by financial growth, strategic expansions and innovative breakthroughs in new uses for SPD SmartGlass technology. Speaker 101:08:17And as we look forward, we are committed to continuing this momentum, improving the way people live, work and get around and enhancing our global impact. In the past year, Research Frontiers achieved significant accomplishments, including 109% increase in revenues and a reduction in cost moving us much closer to profitability. The company solidified its market leadership in the smart glass industry, expanded its collective global footprint and diversified its product applications across automotive, aircraft and architectural sections as well as augmented reality and other advanced uses of SPD SmartGlass technology. Other notable achievements include the introduction of SPD technology in Boeing and Airbus aircraft and the development of the SPD SmartGlass retrofit solution and triple digit percentage growth in automotive royalties. A few weeks ago, the market research firm SNS Insider reported that in the smart glass market, The Transportation Application segment holds a considerable market share of around 48% in 2022, driven by automakers' inclination towards adopting SPD Glass, especially in luxury cars. Speaker 101:09:341st, let me say nice to have our technology accurately and specifically mentioned by name as the leader in the automotive smart glass market. And as we noted their conclusion about the dominance in the transportation section, all through not only in 2022, but based upon the numbers we just reported, for 2023 as well. And in 2024 and beyond, there may be new markets for SPD that dwarf and build upon our current ones. We and our licensees will relentlessly pursue those opportunities as well. We all have an incentive to do that. Speaker 101:10:10This past year, we have gotten into both Boeing and Airbus aircraft for the first time. We've also expanded a number of car models from first Mercedes and then to McLaren and then to General Motors and then to Ferrari. We're looking forward to an upcoming introduction in Asia the middle market as well as SPD SmartGlass being introduced in new cars produced in Europe. Our focus has been and will continue to be to help our licensees introduce new products into markets, which means hard and coordinated work to meet the timeframe of existing customers and also to introduce and constantly push new products across the finish line. All of this is with one goal in mind, growing revenue and becoming significantly profitable. Speaker 101:10:57We have made tremendous progress over this past year, significantly increasing our revenues and moving closer towards profitability. With the strong growth we're seeing in automotive applications, our expansion into major aircraft manufacturers like Boeing and Airbus, notably through decisions to use our technology by their customers and the enormous potential of the architectural market, we are well positioned for continued revenue growth in 2024 and beyond. Our strategic partnership with Gauzy has allowed us to increase production efficiencies, reduce costs, ease logistics and expand our product offerings and enter into new products and applications. Our collective global presence gives us an important competitive advantage. The lawsuit victory we achieved helped solidify and validates the intellectual property position we've built over decades of research and development. Speaker 101:11:54The federal court's ruling on the licensee IP provision in our contracts is a significant precedent that strengthens our intellectual property portfolio and adds value to what we can do for our licensees. We continue to make advancements to our SPD technology, including developing color neutral particles that can further enhance the aesthetics and market opportunities. Product and market innovation remains a key priority. With rising energy costs, government incentives for energy efficient buildings and growing demand for user controllable tinted glass, the market outlook for smart glass remains extremely promising across the automotive, aerospace, architectural and other sections. And now more real world examples have been practically demonstrated to show how our SPD Smart technology can be used in new applications, such as adaptive headlights and head dip displays, such as the ones that BMW developed and demonstrated at last year's CES and the augmented reality displays at this year's CES. Speaker 101:13:03Looking ahead, we are poised for even greater success. Our robust pipeline of new products and technologies promises to revolutionize the way SPD SmartGlass impacts our daily lives and the environment. Research Frontiers is the clear innovation leader and the most diversified player in the smart glass industry. Our pathogen SPD Smart technology provides proven performance advantages over competitors. We have built a global licensing network and portfolio of cutting edge products that were used in. Speaker 101:13:382023 was a year of substantial progress and we have positioned the company for accelerated growth and financial success in the years ahead. We remain intently focused on execution, innovation and driving shareholder value. We remain committed to substantially pushing the boundaries of what is possible and enhancing shareholder value in the process. Our journey together continues and I'm excited about what the future holds for Research Frontiers and our stakeholders. Thank you to everyone who has contributed to our journey thus far. Speaker 101:14:12Your support, dedication and belief in our vision and mission have been instrumental in our success. I look forward to working together to achieve our goals and set new and more ambitious benchmarks in the years to come. Thank you. Operator01:14:31That concludes today's conference call. Thank you for attending and have a pleasant day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallResearch Frontiers Q4 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Annual report(10-K) Research Frontiers Earnings HeadlinesResearch Frontiers, Gauzy, Mercedes-Benz debut SPD-SmartGlass techApril 23, 2025 | markets.businessinsider.comResearch Frontiers, Gauzy and Mercedes-Benz Debut SPD-SmartGlass in Innovative Dual Smart Glass configuration at Auto Shanghai 2025 in Mercedes Vision V's Dynamic Luxury VanApril 23, 2025 | globenewswire.comThe Trump Dump is starting; Get out of stocks now?The first 365 days of the Trump presidency… Will be the best time to get rich in American history.April 29, 2025 | Paradigm Press (Ad)REFR stock touches 52-week low at $1.12 amid market challengesMarch 26, 2025 | investing.comResearch Frontiers Incorporated (REFR) Q4 2024 Earnings Call TranscriptMarch 6, 2025 | seekingalpha.comResearch Frontiers Reports 2024 Financial Results and Will Host a Conference Call at 4:30p.m. TodayMarch 6, 2025 | globenewswire.comSee More Research Frontiers Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Research Frontiers? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Research Frontiers and other key companies, straight to your email. Email Address About Research FrontiersResearch Frontiers (NASDAQ:REFR) engages in the development and marketing of technology and devices to control the flow of light worldwide. It develops and licenses suspended particle device (SPD-Smart) light-control technology to companies that manufacture and market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, and electronics to power end-products incorporating the film, as well as lamination services for and the end-products, such as windows, skylights, and sunroofs. The company's SPD-Smart light-control technology is used in various product applications, including windows, sunshades, skylights, and interior partitions for homes and buildings; automotive windows, sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels, and navigation systems; aircraft windows; museum display panels, and eyewear products; and flat panel displays for electronic products. It serves architectural, automotive, marine, and aerospace and appliance applications. 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There are 8 speakers on the call. Operator00:00:00Good afternoon, ladies and gentlemen. Welcome to Research Frontiers Investor Conference Call to discuss the 4th Quarter and full year 2023 results of operations and recent developments. During today's presentation, all parties will be in a listen only mode. This conference is being recorded today. A replay of this conference call will be available starting later today in the Investors section of Research Frontier's website Speaker 100:00:36at www.smartglass.com Operator00:00:41and will be available for replay for the next 90 days. Please note that some of the comments made today may contain forward looking information. The words expect, anticipate, plans, forecasts and similar expressions are intended to identify forward looking statements. Statements that are not historical facts are forward looking statements that are made pursuant to the Safe Harbor provisions that are part of the Securities Litigation Reform Act of 1995. These statements reflect the company's current beliefs that a number of important factors could cause actual results for future periods to differ materially from those expressed. Operator00:01:31Significant factors that could cause results to differ from those anticipated are described in our filings with the SEC. Research Frontiers undertakes no obligation to update or revise these forward looking statements to reflect new events or uncertainties. The company will be answering many of the questions that were emailed to it prior to this conference call, either in their presentation or as part of the Q and A session at the end. In some cases, the company has responded directly to email questions prior to this call or will do so afterwards. In order to answer more questions of general interest to shareholders on this call, if you find that your question has been substantially answered as a courtesy and to allow time for other shareholders to ask their questions, please remove yourself from the queue by pressing star 2. Operator00:02:39I would now like to turn the conference over to Joe Harari, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir. Speaker 100:02:49Thank you, Paul, and hello, everyone, and welcome to our 4th quarter and full year 2023 investor conference call. As you have seen from the numbers that we released about 30 minutes ago on our 10 ks, revenues were up quite substantially, 109% in this past year. Costs have been reduced and we're much closer to profitability. Today, we're going to discuss what's underneath these numbers and why we can all expect 2024 to be an even better year for Research Frontiers and its shareholders and licensees. Research Frontiers is the market leader in SmartGlass. Speaker 100:03:29We're also the most diversified company in the smart glass industry with product applications in automotive, aircraft, architectural glass, marine glass and augmented reality displays and other areas, including consumer products. We're also the most diversified in terms of skills and capabilities of the companies we work with and geographically diverse, with licensees operating on almost every continent except Antarctica. This broad and diverse footprint allows us to coordinate, collaborate and service the needs of our customers locally and rapidly wherever they are. Right now, the markets we primarily serve are automotive and aircraft, and this has been our bread and butter since 2011 when the first Mercedes came out in series production with our technology in it. We were the 1st to apply switchable TIN technology to the aircraft industry in both general aviation and transport category aircraft. Speaker 100:04:27We are the only switchable TIN technology in helicopters. And this past year, we were introduced on several aircraft produced by Airbus and more recently by Boeing. Perhaps of even greater significance here is the change in the way that the switchable tint technology being used in these aircraft was selected. It was selected by the customer and not just by the manufacturer. That is a result of the sustained and focused effort by Research Frontiers and our licensees to highlight the benefits that SPD technology brings to the passengers, to the cabin crew and to the confident passenger experience of everyone on board. Speaker 100:05:10In terms of reliability and competence, SPD Smart Technology is the is the longest smart glass technology being used in cars and aircraft and even architectural applications, which up until recently was something we didn't speak about too much. Fortunately, Gauzy is able to currently produce much wider film than Hitachi Chemical was able to produce in the past. This has opened up the architectural markets with new products, including an elegant and easy to implement retrofit solution with the potential to dramatically reduce the costs and streamline the installation process of smart windows throughout the world. I'm happy to say today that this retrofit solution is not only ready for use, but it's already passed years years of field testing. We're quite excited about it because it has the enormous revenue potential for Research Frontiers in our licensees and also makes incorporating or adding a smart window system to any home or building in the world a much easier decision. Speaker 100:06:11Let's talk more about the 3 areas we see for near term focus in the architectural market. 1st, let's first focus on the benefits: energy efficiency, elegant shading capabilities and view preservation. Homes, offices and apartments with magnificent views don't want to block them with shades or blinds. SPD SmartGlass allows you to tune the amount of light coming in from clear to blocking 99.5% of the light, making them very effective shading devices and saving energy. In some cases, homeowners saw a 20% reduction in electricity usage in areas of the home that use just SPD Smart skylights. Speaker 100:06:54And let's further talk about skylights for a moment. They are typically hard to shade and quite expensive to shade. At the National Home Builders Show about a week ago, I saw skylight shades add about $500 to $700 to the cost of the skylight. Add the contractor markup and it's even higher. So we're quite cost effective in that market and can eliminate the space, mechanical system that can break and of course the cost and maintenance that Skylight Shades require. Speaker 100:07:26Next, let's talk about architectural government building upgrades. There are GSA government mandates for upgrading non energy efficient glass in government buildings with more efficient energy efficient glass. Some of our key licensees are already approved and on the GSA list and supplying advanced window products to the U. S. And state and local governments, including embassies, court houses, schools, prisons and other facilities. Speaker 100:07:54This is a large and natural near term customer for SPD Smart Windows. The GSA is actually, I think, the largest customer in the world. And with the new retrofit application for SPD SmartGlass, the broader market for homes, office buildings and apartments now becomes wide open. And with government incentives such as the investment tax credit introduced by the Dynamic Glass Act that gives a 30% to 50% tax credit to users and similar incentives around the world by other governments, the economics behind introducing smart glasses as a result of all these factors have become much better as governments have begun to financially support this with various incentives. We've spoken about cost reductions to streamline implementation techniques such as the retrofit applications and government incentives. Speaker 100:08:47Another factor that has reduced costs is the production efficiencies and the way that SPD film is made and distributed throughout the world. We are fortunate to have the leadership and vision of our licensee, strategic investor and partner Gauzy in this area. We have had a very strong working relationship with Gauzy from day 1. And this past year, their business expansion along with very positive developments in our industry have both significantly increased the frequency in which we meet and collaborate. We're working with them in Israel, Germany, France, China, South Korea and of course throughout the United States. Speaker 100:09:26And just this week alone, we introduced a new automotive project to Gaussian in Asia. Returning back to automotive for a moment, let's look at the numbers there. It is clearly our largest market now, but it may be supplanted in the medium term by architectural or information display applications such as augmented reality. We had an overall increase in royalty income in 2023 compared to 2022 of 69%, which is in itself a quite healthy growth rate. Even more dramatic, automotive royalties were up by triple digits, 178% between 2023 2022. Speaker 100:10:08And even within 2023, automotive royalty income more than doubled between the 3rd 4th quarters of this year. As many of you know, Ferrari introduced an all glass roof in their new sold out 4 door Purosangue. If you want a glass roof on this car, it must have SPD SmartGlass in it. You don't have a choice. Sales started in Q1 2023 for our licensees applying Ferrari and more than tripled between the 1st and third quarter of this year. Speaker 100:10:36And then unit volumes more than doubled again between the 3rd quarter and the more recently reported Q4. And we expect continued growth in the Ferrari program based on this trend and also based upon higher SPD film orders at Gauzy for 2024 from our licensee that's supplying Ferrari. We also expect higher automotive royalties in 2024 based upon new products and models, including the one from Asia and some new models to be produced in Europe. With that, I look forward to answering your questions and we'll take some of the ones that have been emailed to us first. First of all, thank you, Jared A, Jeff K, Jeff H, Chuck M, Bob P, Robert B, Steve A and John Nelson for your questions. Speaker 100:11:20And also thank you for your kind words about the safety of Gauzy, whose operations have thankfully not been disrupted by the war in Israel and are all safe. To save time and to be able to cover more ground here today, I've answered many of these questions in my presentation. I will address some of them further in my closing remarks. And of course, if I don't fully answer them in the interest of time, please follow-up with me by e mail. So here are some of the additional questions that were e mailed to us. Speaker 100:11:49In some cases, I'm combining several related questions into one. Joe, can you comment on the lawsuit that was brought against Research Frontiers Gauzy and Vision Systems in Florida? Well, this was recently resolved and it was a total victory for us. The federal court threw out all the claims against our companies. However, even prior to this filing, we've always maintained that it was a lawsuit that never should have been brought. Speaker 100:12:15And that this is because there was, of course, no infringing or other improper activity, but more significantly for the future was the fact that the court agreed with us as to the effect and validity of the provision that is in all of our license agreements in one form or another that gives us a license back in the smart glass related intellectual property of our licensees when their license terminates or expires. The fact that this provision was blessed by the court is a significant precedent. This provision basically says that if a license agreement ends for any reason, Research Frontiers and through us, our licensees, gets the right to use the invention and improvements developed by our licensees relating to SmartGlass. This has resulted in the expansion of our intellectual property portfolio. And from an economic standpoint, this ruling also has significance because the court awarded us sanctions against the attorney and law firm that brought the suit for their conduct in this case. Speaker 100:13:16Our recently filed proof of damages puts this amount at over $600,000 currently. Another question. We've heard nothing on the development of black particles. Is this still a possibility? And does it offer a greater opportunity? Speaker 100:13:31Thanks, Jeff H. Thanks, Jeff, for the question. We, as well as Gauzy, have been actively working throughout the years to develop a more color neutral form of SPD besides the current blue particle. And we have achieved this in the way that existing materials are fabricated, but we'd love to also change the particles themselves used in our SPD film to do this. And we've made great progress at Research Frontiers, and I can't speak for Gauzy, but our progress will certainly benefit them. Speaker 100:14:02So stay tuned on that. And to answer your other question, when we are successful with a new particle, it certainly would further enhance the markets and opportunities for our SPD SmartGlass. New product improvements always do that. However, you can see from our results of operations reported for 2023 that the existing blue colored SPD is also getting great traction across multiple industries and for new uses. We've discussed a lot of exciting topics so far today, and I'll now ask our operator, Paul, to open up the conference to any additional questions people participating today might have had that haven't already been covered. Operator00:14:46Thank you, And our first question comes from Ted Campbell, a Private Investor. Your line is open. Speaker 200:15:16Hey, Joe. How are you? Speaker 100:15:19Ted, it's great to hear from you. I hope you've been well. Speaker 200:15:22I've been well. Thanks for asking. It's always a pleasure talking with you. And I just want to congratulate you on a nice fourth quarter, a really nice 4th quarter and then improved 2023. It's great to see the increase in revenues for both of those, but especially this 4th quarter. Speaker 200:15:42Is that something you think we're going Speaker 100:15:43to be doing? I mean, thank you, Ed. I can't take full credit, though. It's a team effort among us and our licensees, but we've all worked hard and I'm really pleased with it as well. But thank you for that. Speaker 200:15:54No, I know that. I appreciate everybody's hard work. But it's increasing revenues, especially in the Q4, do you think that's something we can build on in that 2024? Or was this like a one time event in the Q4? Speaker 100:16:11I think based on the trends that we're seeing, I mean, a lot of that was due to Ferrari coming on board with their all glass roots using our technology. And based on the film orders for 2024 by the licensee that's supplying Ferrari, I expect that to actually grow quite a bit in the coming year. Speaker 200:16:36So yes, I don't think it's a Speaker 300:16:37one time event. It's not Speaker 100:16:38a one time event. Yes, definitely we'll build on it. Plus we have a car coming on board from Asia that everybody is quite excited about that's more of a medium sized car. And then also a couple more cars that are being produced in Europe that will be new introduction for SVB. So yes, I think that we're going to do quite well in the coming year. Speaker 200:17:04Yes, I'm excited about the upcoming models. But I also like your comments on the retrofit market. I'm really looking forward to revenues coming from that. Speaker 100:17:14I think it's a game changer. And I appreciate you picking up on that. Right now, if you wanted to put a smart window in a building, you got to take out the glass. And if you're on a building that has more than 1 or 2 floors, you have to put up scaffolding, which is very expensive and disruptive to the retail stores on the ground floor and things like that. So this retrofit solution allows you actually to install smart windows from the inside of the building. Speaker 200:17:44And you don't have to put up scaffolding. You don't have Speaker 100:17:46to get landlord approval. We still have to do a lot of things that can either add to the cost or increase the delays in getting a system. And we've seen installations of this system where you come in over the weekend and do it. So you're probably not even disrupting the workflow in an existing office. Speaker 200:18:09All right. Well, I don't want to hog anybody else's time asking questions, but it's always good talking to you and thanks again to everybody at Research Frontiers and Ghazi for all the hard work you put in. Speaker 100:18:23Thank you, Ken. Appreciate it very much. Speaker 200:18:25All right. Have a good one. Speaker 300:18:28You too. Operator00:18:30Thank you. Our next question comes from Allen Ginsberg, a Private Investor. Your line is open. Speaker 400:18:39Yes. Speaker 100:18:40Hi, Joe. How are you? Hi, Alan. How are you? I'm fine. Speaker 100:18:45Last call, you mentioned Hitachi in passing, but I've heard nothing since then. Is there anything going on there which might lead us to believe that they might again be part of the manufacturing process here? I think you haven't seen the last of Hitachi's technology. I think that part of this I have to defer until a time when that could be more fully announced, but it's good for the industry. So you think there's a chance that they're going to be reintroducing different products? Speaker 100:19:27I think you're going to see their technology come into the marketplace, perhaps from different paths than you would expect, but significant for us. And do they still obviously, they still have a license even though they sold Right. They still have a license. They still have a license. Even though the company itself was sold to show a Danko and then renamed itself, the license still is intact. Speaker 100:19:55Okay, thanks. That's all I wanted to ask. Thank you. Speaker 500:19:59You're welcome. Operator00:20:03Our next question comes from Gerald Sherman of Strategic Planning Group. Your line is open. Speaker 400:20:11Thank you. Hi, Joe. Question for you on the cash flow situation and the current cash you guys have in the bank. I was kind of under the impression from the last couple of calls that we had like a 4 year running room and now after reading this last financial that came out, it looks like you got a negative cash flow of about $1,000,000 for next year. Speaker 100:20:37Are you No, what's yes. We actually have a 5 year runway. We put that in the press release. What you're seeing is kind of an accounting way of expressing it, which the way they test things is do you have enough cash to last year at least 12 months from the filing date. But if you look at our MD and A section or in the press release that came out, it's about a 5 year runway. Speaker 100:21:04Now some of that is cash on hand. We had $2,500,000 at the end of the year and much lower burn rate as we approach breakeven and then also anticipated revenues from the existing projects. So I don't know if we're going to raise money or not. Mercedes or Ferrari or McLaren wants to make a strategic investment, I might say yes. That's always good. Speaker 100:21:29Gauzy has a strategic investment from Hyundai and that's been very helpful for their business. So you never know where those things can lead you, but I don't anticipate doing an offering. Speaker 400:21:41Okay. All right. Great. Thank you. Speaker 100:21:43Thank you. Operator00:21:54And our next question comes from Leonard Dietzal, a Private Investor. Your line is open. Speaker 500:22:02Hey, good afternoon, Joe. Speaker 100:22:04Hey, Len. Great to hear from you. Speaker 500:22:07It's great to be here, buddy. Speaker 300:22:10When do you think we're going Speaker 500:22:11to be over the hump deposited cash flow? Is that going Speaker 100:22:18to happen in 2024? I don't know. If the trends continue, it's a possibility. I don't want to predict when we become cash flow positive or profitable, but because that depends on things outside of our control. But a lot of those seeds that we've planted over the last several years are beginning to see pop up nicely. Speaker 100:22:36And we're also seeing a more predictable for us. So I have a greater degree of confidence that we're on the right path there. Speaker 300:22:54They're using it more windows then, right? Speaker 100:22:57More windows and a lot of people are beginning to realize in the automotive industry the benefits of putting this in a vehicle and the shortcomings of what other technologies that have promised the world and haven't delivered it have. So, I think you'll see that there's a lot more cars that are using SPD than anything else and new ones coming in or switching over from other technologies to us. So, I think that will all be very good for us and for our licensees. Speaker 500:23:30Okay. And you've had some retrofits with government buildings recently? Speaker 100:23:38We've had it over the last several years as part of test programs to make sure that the system is reliable and easy to work with and easy to implement. We've improved the system even more since those initial tests started, but everything is moving in a very positive direction. And I think that's the end point for architectural. Speaker 500:24:01And then with the tax credits, it would seem like everybody how long do those last? Do you know how many years that we can look forward to that? Speaker 100:24:12It's complicated calculation, but I think you can get a lot of it upfront. So it makes implementation a lot easier. And you never know with the government when they're going to either increase or decrease a program, they usually increase. Yes. But I mean, it's nice to be mentioned in the same sentences as other recognizable energy efficient technologies like solar energy and other things like that. Speaker 100:24:44It just adds a lot of credibility that smart glass in general and us specifically have made it, got the recognition. Speaker 500:24:54Yes. With those projections outside of the day from again, that was for the marketing company. And so the reason they didn't mention you very much is it was their clients that people are making the comments for because that's Right. So I talked to the analyst and that's what he told me. So that's okay there. Speaker 100:25:17Yes. I don't mind if anyone increases awareness of smart glass. I'm so confident in our performance. And as you'll find probably, the costs have come down fairly considerably to the point where we can cut into the mid level cars, which tells you something. And because of that, it makes us cost competitive on a real economic basis, not on a subsidized basis like some companies do. Speaker 100:25:43So on a cost competitive. And we don't take on business, it's not going to be profitable for our licensees. But it's nice to be able to have the awareness built out by these other companies and then take the business. Speaker 500:26:06Yes. Okay. Thank you very much, Operator00:26:12sir. Thanks, Len. Our next question comes from Art Brady, a Private Investor. Your line is open. Speaker 600:26:20Hi, Joe. Art Brady here. Speaker 100:26:22Hey, Art. How are you? Speaker 600:26:24Good. I'm just kind of curious if you and Gauzy have had any conversation regarding building of homes using smart glass. In other words, a whole house built out of smart glass. Speaker 100:26:45You mean no concrete or wood, just smart glass? Speaker 600:26:49Yes. Like, Speaker 100:26:51we haven't had that conversation. Speaker 600:26:54What was that? Speaker 100:26:56We have not had that conversation, but I'll say that the old adage about people living in glass houses shouldn't throw rocks. With our glass, it would protect you from the rocks and the privacy. So it's possible. Speaker 600:27:12I think there are some individuals who go all over it, especially your nature lovers. And the considerations are that this is part of the near future because if one of the car companies from what I heard was building a car out of smart glass, we could actually build a house out of smart class. And I think you guys should really give it significant consideration, especially what's going on with interactive possible building of facilities down in the future on the moon and Mars? Speaker 100:28:02Okay. Well, I think we're going to go for the low hanging fruit first, but it's such a big market that I don't rule anything out. But thanks for the question, Art. I appreciate it. Speaker 600:28:10Sure. Operator00:28:15Our next question comes from John Nelson, a Private Investor. Your line is open. Speaker 300:28:22Hi, Joe. How are you doing? Speaker 100:28:24Good. Hey, John. How are you doing? And thank you for your question and also your kind words about Gauzy earlier. Speaker 300:28:31Excellent. Thank you. A couple of questions on the Asian and European car projects that you discussed. Are they just for the involving the sunroof, moonroof? Or are they also any either of them involved with shading the windows? Speaker 100:29:03So one of the vehicles is just a sunroof. We're excited about that because the cost of the manufacturer is the lowest I've ever seen since 2010 when Mercedes started with that. So you're talking about a fairly substantial reduction in cost for that. So that's exciting in that respect. And then the other one actually uses side glass as well as roof glass. Speaker 100:29:30So, but thank you for the question because that could vastly expand the way our glass is being used and also the volumes. Speaker 300:29:42Great. Okay. And then regarding the retrofit solution, are you in a or I should say, are your licensees in position now to be taking orders? Speaker 100:30:01They will be in several months. Some of the data that we want to now generate with the latest and greatest SPD needs to be generated for the architects. The system itself is ready for prime time. Now as part of the selling process, when you go to architects, they want to know all the data about energy savings and reflectivity and all the things that are important to them. So that's being generated. Speaker 300:30:31Okay. And then regarding skylights, is are the products being worked on simply the laminated product for new or is there a retrofit product being tested for skylights also? Speaker 100:30:56Both. So sometimes when you're putting in a skylight, it's new glass. So you just put in new smart glass there and there's usually wiring very close to where the skylight is anyway coming through the ceiling or through those areas. With the retrofit, you can do that also. So if you wanted to retrofit an existing skylight with an SPD functionality, we've done that and it's actually had very good energy characteristics doing that because it also creates this air gap between the outer glass and the inner SPD pane. Speaker 100:31:30So you could actually enhance even further some of the energy efficiency. Because you're not really so concerned about losing space like you would like if you put it in your living room on vertical glass on a skylight. Adding that air gap actually could be beneficial, if not some sort of detriment. Speaker 300:31:53Okay, very good. That's all I have. Thank you. Speaker 100:31:56Great. Thanks Operator00:32:00a lot, John. And our next question comes from August Berman, Private Investor. Your line is open, sir. Speaker 400:32:15Hey, Joe. How are you? Speaker 100:32:17Hey, Doctor. Berman. How are you? Speaker 400:32:19I'm well. Thank you. Happy earnings day. Speaker 100:32:24Thank you very much. I hope everyone is as happy as I am about the numbers. Speaker 400:32:29Absolutely. No good to see that for sure. Just had a couple of questions. Speaker 300:32:35First for Speaker 400:32:36the press release, it looks like there was a slight modification in some of the language for the Asian model. Have they have the Asian model indicated it might not be first half 2024? Speaker 100:32:51They haven't indicated one way or another. I'd just like to build in a cushion given what happened because we were expecting that in the last in the second half of twenty twenty three. And for reasons unrelated to SPD and more in general with their kind of production and QA issues that they had with the rest of the car, things got delayed. So being a little cautious, that's all. Speaker 400:33:16Understand. And then I also noticed that I had mentioned instead of at least one, just referring to one agent model. Are we still looking at multiple Asian models? Or have things changed in conversations? Speaker 100:33:32Things haven't changed. I just once again want to be as conservative as possible. The numbers will speak for themselves and the car introductions will speak for themselves. And one of the things I hope happens is that the carmakers will be a little bit more forthcoming as to what technology they're using. And if you kind of remember, when Mercedes came out with the SLK, it was a little bit of a sales job, but we needed, we wanted and we impressed upon them the benefit of making the connection between the name Magic Sky Control and SPD SmartGlass and they allowed us to do that. Speaker 100:34:12When McLaren came out with their SPD roof, they just called it electrochromatic, the generic term. And up until this year, they have now you're seeing they're starting to refer to as SPD, which I think it indicates we're more of a badge of honor now. For a while there, they didn't want to reveal what the secret sauce is in their cars in terms of what technology they were using. But now it's become a badge of honor. It's like putting a block pump or a arming card in stereo system that say it's a badge of honor to put SPD in there. Speaker 100:34:50So you're starting to see more carmakers, I think, and I hope continue to do that where they mention us by name. But if they don't, we'll find a way to make sure that our shareholders know what cars we're in. Like Ferrari hasn't mentioned us as SPD in official pronouncements, but McLaren now did. So I think the gate is beginning to open there. Speaker 200:35:11Yes. No, Speaker 400:35:11I was very excited to see that when they came out with that. And we pretty much seem to be in every car for McLaren that has a glass roof. So that's great to see. Speaker 300:35:21And hopefully, Ferrari kind of falls at the Speaker 400:35:22same softness in the models. I just had one other question. When I saw the news, I was very excited. And then I didn't see much follow-up afterwards. And I just kind of thought maybe it was just because of poor timing with the 7 37 issues. Speaker 400:35:41Are we under NDA for discussing that further, the Boeing 737 that's going Speaker 200:35:46to be Yes, Speaker 100:35:47we're still waiting for permission to talk about the aircraft market. But I will say this, and you kind of raised an interesting thing that may be helpful to everyone on the call. People should pay attention to a couple of things. I mentioned in the past pay attention to what you see in patent applications and patents because it will tell you companies that are working with our technology that we can't necessarily say are working with our technology. But also pay attention to what happens at trade shows. Speaker 100:36:15Trade shows are not only a forum for us to meet key decision makers and have meaningful conversations with them, but there's a lot of other benefits. And at CES this year, there was a number of things that were publicly announced, but there are also some things that we're still waiting on permission to be able to talk about publicly. And I'll tell you a little bit about something that we're still waiting on permission for. So I can't give a lot of details, but I'll give probably enough to make everyone understand Speaker 300:36:48where some Speaker 100:36:49of these things are going. One specialty vehicle, for example, at CES that's slated for production next year and it's not a car, incorporated a novel approach to augmented reality in the windshield. And a key part of this was made possible by a combination of transparent OLED technology by LG and SPD technology that was produced by Galaxy. And the implementation of this was extremely well done. I mean, you could see the vibrancy added to the augmented reality display by using SPDs in the windshield. Speaker 400:37:39Joe, are you still there? Operator00:37:41Ladies and gentlemen, please stand by. We've lost Mr. Harari again. Please stand by. We've lost Mr. Operator00:37:47Harari. Speaker 100:37:48Okay. No, I'm back. I'm back. I apologize. So what I was saying is that CES, there was a specialty vehicle. Speaker 100:37:56It's not a car. And it was an augmented reality windshield that was made possible because of the combination of SPD film from Gauzy and the transparent OLED technology by Lucky LG Group. And it was extremely well done and you could see the vibrancy that added the that happened with the augmented reality display by using the SPD film in the windshield. This product got a lot of attention in general. And at one point, when I was at the booth of this company, the Chairman of their South Korean parent corporation came to pay tribute to this vehicle and he didn't know where I was. Speaker 100:38:37I was standing on the side and I was watching and he even politely and reverently bowed towards it while he was there. And it even made the show newsletter as the What's Hot at CES product on day 2 of the show. And while SPD was not mentioned in the public articles about that, we're hoping to be able to talk about this in more detail when we and Gauzy have permission on that. But it gives you an idea of some of the things that are very pleasant surprises when you go to some of these shows. So we pay very much attention and we try to attend all the major trade shows for a variety of reasons, including that. Speaker 100:39:15And just so there's no misunderstanding, even though this company is owned by a South Korean company, I'm not referring to the Asian car that we expected towards the end of last year with SPD. That's totally different and very much on track and going through its final development stages prior to launch. But and that promises to be just a very exciting project because the cost to the manufacture of our technology has come down so much as to make it feasible for inclusion in a relatively moderately priced vehicle. And that, of course, bodes well for SPD's smart technology being incorporated in much higher volumes across the middle market cars throughout the world. But pay attention to trade shows and I think that's you'll get some very good information as to what's going on. Speaker 100:40:06Sorry for that long winded answer, Doctor. Berman, but I Speaker 400:40:11I appreciate that. And honestly, I think just shareholders have also noticed that substantial increase and just commentary, both well, mostly by Gauzy, just looking at their social media page, they seem to be every couple of days, they mentioned something as to be. So I think this is I want to say this is the time, and I'm hoping it is, but it appears that things are more ready than ever before. And yes, good luck to shareholders, and I think we're on the right track. So Speaker 100:40:44And thanks for noticing the increased frequency of the communications by Gauzy. Like us, we try to say as much as we can when we have permission. And I think you probably have surmised that the frequency that we communicate with Gauzy is very often. I mean, it was much less when it was just Hitachi making film, but Gauzy has just been a wonderful partner, both in making film and in products and unlocking new industries and things like that and they're very visionary and they're very dedicated to this. And their future is betting on SPD. Speaker 100:41:20So we work very closely together and they were in New York 10 days ago. They're coming back to New York. I've met with them in Israel. I've met with them in France. I've met with them in Germany. Speaker 100:41:34There's just a wealth of opportunity for our industry and they and we are very much at the center of that. So but thanks for noticing that they've become a lot more visible about this. Speaker 400:41:49Yes. Well, appreciate it, Joe. Thank you. Speaker 100:41:51Thank you. Thanks a lot. Operator00:41:55Our next question comes from Mike Selnick, Investor. Your line is open. Speaker 600:42:03Thank you. Hi, Joe. Speaker 100:42:05Hey, Mike. Good to hear from you. Speaker 300:42:07And you too. And just been reading your latest report that was posted about an hour ago. And I see revenues are up 109%. That's what we like to see. That's good. Speaker 100:42:25I like triple digits. Yes. Speaker 300:42:28Question I have has to do with Boeing and Airbus. I read the other day in the newspaper that both companies and I think some other airlines as well, Both companies have received orders from major airlines for 100 of passenger jets, large passenger jets. What do you think the prospects are that on these orders Speaker 100:43:05using SPD Speaker 300:43:07on their windows? Speaker 100:43:10Well, I think they're quite good and it's a great question. Let me kind of go a little deeper into why I think that. So if you take, for example, the automotive market, when Mercedes and Research Frontiers was developing the SPD SmartGlass product for the SLK, we had blinders on. We were just focusing on doing everything possible to make sure that Mercedes is happy. And it was a good strategy because we knew that if they were happy and they have a very good reputation for quality assurance and production and innovation that everyone else would follow. Speaker 100:43:46And then you started to see all the other industries fall into place nicely after that. So it was a good strategy to focus on making your launch customer happy. And once it was validated for automotive use, more and more companies like McLaren and General Motors and everyone jumped on board because they knew that it was something they could reliably and safely put in their cars. And the same thing with aircraft. I think one of the significant things that happened this year is that we've been chosen for transport category aircraft, the big ones, the big aircraft. Speaker 100:44:26And the other thing that I think is significant is that we've gone from being pushed by manufacturers on their customers, that's what they were doing at Boeing and Airbus before, and having the customer decide what technology they want in the aircraft. So you now have a technology that's been validated. It's in a number of different aircraft and it's been reliably flying for decades. And you have something that performs better than the current electrochromic failure, 2 second switching speed with no iris effect compared to 1.5 minute for an electrochromic window to switch. So you have something that the customers can see as a much better performing aircraft window and greater dynamic range, just a whole host of things, right? Speaker 100:45:22So we're excited about that because when judged on the merits, I don't think there's any reason not to use SPD in an aircraft. And it doesn't have some of the things that if you go on YouTube, you could see windows that are heating up and catching fire and cracking and doing things with other technologies because they're more like a battery. And when a battery gets damaged, it gets hot. Think about your cell phone battery. So, I think that there's a lot of things that are pointing towards great success in the aircraft industry and especially the transport category aircraft industry. Speaker 100:46:01So Airbus and Boeing, I think, are significant developments and they're going to have legs. Speaker 300:46:10Good to hear. Let's hope those contacts with those 2 companies play out this year. Thank you, sir. Speaker 100:46:20Yes. We stay in good shape with everyone. Thank you, Mike. Operator00:46:28Thank you. Our next question comes from Bruce Denning, Private Investor. Your line is open. Speaker 300:46:40Hi, Joe. How are you? Speaker 100:46:42Hey, Doctor. Denny. How are you? Speaker 300:46:44Very well. Thanks. Just one question. Congratulations on everything that's going on. My question, I think I've asked in past conference calls, but it always seems like a no brainer to me to couple the transparent solar cells with our window applications. Speaker 300:47:09Has anyone ever looked into this that you know of? Speaker 200:47:14Yes. So let me give you Speaker 100:47:16a couple of examples where it's been successfully implemented. Vision Systems had an aircraft window that generated 20 times as much power as the window needed to operate using transparent photovoltaics. And because of that, they actually put a charging port, so you could charge your phone on the aircraft window with a USB port. With the retrofit application, that's something that we're very much looking into is the combination of photovoltaics with SPD. Because if you think about it, then you don't need to have an electrician come to the job site when you're doing the retrofit. Speaker 100:47:54Exactly. Even in a commercial installation, you just pop it into the window and you're good to go. So and we actually had discussions about that 2 days ago also about that. So yes, very much in the plans. Speaker 300:48:12Excellent. So glad to hear it. Thank you so much, Joe. Speaker 100:48:15Thanks a lot. Operator00:48:19Our next question comes from Jeff Harrigan, a Private Investor. Your line is open. Speaker 500:48:26Hi, Joe. Hey, Jeff. How are you? Speaker 300:48:29Good. On your last conference call, you did mention that the car wasn't going to happen until the second half of the year. So has that changed any? Or you still anticipate the Asian car in the second half of the year? Speaker 100:48:44The second half of last year was the original expectation. And then we basically said, well, based on what we know, it's probably going to be the first half of this year. And my expectation is we're very much on track. But with everything else that kind of caused the delay in the car that wasn't related to SPB, I don't want to pin it down too much, but believe me, when the car company implements it, we're all going to be thrilled. Speaker 300:49:19So one thing you haven't talked about at all is the display market, which you talked about, I think, last time. Isn't there anything going on in the display market? I know you talked about Speaker 500:49:30it before. Oh, yes. Oh, yes. No. So one of Speaker 100:49:33the things that we talked about in the past is windows that incorporated display inside the glass using a combination of either electroluminescent displays and Gauzy Vision Systems has been doing that and things like aircraft windows and train windows and bus windows for years. And then more recently, using transparent OLEDs with SPD film to make a very vibrant display. And that's what I was talking about at CES, the specialty vehicle that had an augmented reality display. It was a display that combined transparent OLEDs and SPD film. And it was just really amazing to look at. Speaker 100:50:21I mean, it wasn't only me, but Speaker 500:50:24the press loved it too. Speaker 300:50:26But when can we expect to see some business from that? Speaker 100:50:32Well, they're talking about that vehicle coming out next year. And Speaker 300:50:35No. I'm talking about Speaker 100:50:36between that Speaker 300:50:37display in a window, like in a department store. Speaker 100:50:42That could come out anytime. That's with the matter of implementation. And if you look at kind of the frequency that LG, who's kind of leading the charge on that, has been exhibiting this. If you went if you walked around CES, you'd see about 4 or 5 different booths from different companies that had transparent OLEDs that were being used to display things. And when you want that display to be vibrant, you would use SPD, especially if there's ambient light that can wash it out. Speaker 100:51:17But do Speaker 300:51:18you know that any of them have actually been installed? Speaker 100:51:24There have been installations, but a lot of that I wouldn't consider high volume. In the past, before LG went into this, they did museums and all sorts of things that were combining this. And because of the success of that, they did more. And now they're putting it into more mainstream stuff. But it's not something that we have prediction. Speaker 300:51:49Okay. When do you think we'll actually get some architectural business? I mean, I'm very disappointed that that hasn't happened sooner. I mean, as you know, we Speaker 100:51:57I don't know if you heard the earlier part of the call, but there's 3 prongs we're going after in architectural. One is the hard to shade areas like skylights. And then the second is government. And the third is traditional homes, offices and apartments. And the game changer on that is the retrofit application. Speaker 100:52:20You could have sales this year in that. Speaker 300:52:23I mean, it was last year in that. I mean, it's just it's especially with the retrofit makes a lot of sense. And the rest Speaker 100:52:36of the city is really ready now. Speaker 300:52:39I live in a house that had I'm in a climate where everybody has skylights and I had to spend lots of money to put shades up in all my skylights. So, it'd be great if somebody like Budget Blinds could carry a SPD line that you could go and get and put up and cover your skylights. Speaker 100:53:01Right. Although I don't know if budget lines is the right entree into the market because then you kind of have a race to the bottom in terms of innovation and profitability. But your point is well taken that SPD would be a great solution for it. And when you consider what your traditional motorized shades in a skylight would cost And also, if you live in an area where there's snow, you can't put these shades on the outside of the skylight, has to be on the inside, so or inside the glass. So it has to be so SPD doesn't have limitations. Speaker 100:53:39You can put it in any environment you want. Speaker 300:53:43So speaking of the airline industry, I did see today that I think United has stopped ordering new planes because they don't have enough pilots. And that well, let me put it this way, they've stopped hiring new pilots because they can't get new planes. So I'm not sure that the growth in the airline industry is going to be that great because certainly Boeing has had an awful lot of problems with everything that they've been working on. But Speaker 100:54:12Well, they certainly have. They certainly have. Speaker 300:54:15I hope I mean, I know Airbus, I hope Speaker 100:54:18I don't think that's a sustained problem. I think that it's a terrible PR problem. I think it's a structural problem within Boeing that needs to be addressed. But I don't think that it's a permanent problem. So I think that But besides that And believe me, there's a lot of remember, Jeff, one thing to remember also, you could retrofit an existing plane with SPD. Speaker 100:54:43We do it all the time. So you don't have to wait for new planes. Speaker 300:54:50I'm surprised that hasn't happened because like when I fly down to Turks and Caicos, the first thing that the stewardess says is everybody shut their blinds. She could just Right. Speaker 100:54:59And I've been flipping a switch. Yes, flip a switch. Yes. Right. Yes. Speaker 100:55:04Yes. Speaker 300:55:05So besides this Asian company, which is going to be a mid priced car, are there any other manufacturers that potential have a mid priced car that are going to put SPD on? Speaker 100:55:18We're talking to them, yes. But I think that because of the strategic relationship that this car company has with one of our licensees, we're talking to see them have it first. Okay. Speaker 300:55:31Very good. Thank you, Joe. Speaker 100:55:33Thanks, Jeff. Good talking to you. Operator00:55:38We have a question from Leonard Lito, Private Investor. Your line is open. Speaker 300:55:44I'm back. I'm thinking, is anything going on in Speaker 500:55:47the industrial market with SPD? Speaker 100:55:51When you say the industrial market, what are you referring to? Speaker 500:55:54Well, I'm referring to things like people that are doing things with Bobcats and different things. Speaker 100:56:05Yes. It's funny you mentioned that. If you're a CES, you probably would have seen a very nice Bobcat. That's all I'm going to say about it. Okay? Operator00:56:36We have a question from Alex Allen Ginsberg, Private Investor. Your line is open. Speaker 100:56:43Yes. Hi, Joe. It's a follow-up question. You haven't mentioned anything about sun visors. Has there been any progress in that area? Speaker 100:56:53Yes, there has, still in development and a lot of that is driven by when the launch customer wants to come out with something. So it's just like one launch customer has to be the first one, is that it? Yes. I mean, there's always a possibility this could become an aftermarket. And if somebody doesn't do it, I would probably just do it. Speaker 100:57:13But I have to also respect the businesses in my licensees. Okay. Thank you. Thanks a lot. Speaker 600:57:22You're Operator00:57:26welcome. Our next question comes from Tom Hess, Private Investor. Your line is Speaker 300:57:33open. Yes. Hi, Joe. How are you doing? Speaker 100:57:36Hey, Tom. Speaker 700:57:38Yes. I was going to ask about the car you mentioned coming out with from Asian car there. And it sounds consistent in your words and it's even steady with it. So I do have faith it's coming this year. Without revealing, I know you can't reveal a lot, but could you give an idea on volume, like even not exactly in SPD, but even the car or anything at all, like is it going to be a trim package or what how many we're going to get in of that volume with SPV? Speaker 100:58:10I know what the initial we're going to call it a test market, but the test market for a car with this volume worldwide, the volume is pretty high. The test volume is greater than when Mercedes had all of their cars using this. So even a test market for something with this kind of volume was a significant number. I also expect though that the royalty per car is going to be lower than Mercedes because the price of the roof to this car company is lower than what Mercedes was paying back in 2010, 2011. But it could be significant. Speaker 100:58:49So we're excited. Speaker 700:58:51Yes. And that's good to hear. One follow-up on that. When you say the test market and the amount and all that, so you're basing this test market on cars that will have SPD, not just is that like a so that's kind of essentially a forecast of how many because not every car, unless it's a standard Speaker 100:59:09The forecast we were given, right. The forecast we were given for what they consider a test market, which I consider substantial volume, is pretty significant. Speaker 700:59:21And that's the best market forecasted for SPD, not just the volume of cars, it's a forecast. Right. Speaker 100:59:29These are the number of SPD roofs that are going to be produced. Speaker 700:59:32Okay. And I'm sure you probably can't say anything about if it's might be a more leaning towards a option or trim package or you can't say anything on that? Speaker 100:59:42I don't think they know, but I would if I was going to guess based on what I know about the way car companies implement this, they like to put things as an option because that's where they make their money. But sometimes an option could be a very high percentage take rate. If you look at McLaren versus Mercedes, the McLaren take rate for SPD is enormous. Speaker 701:00:05Yes. No, I'm sorry to interrupt that. I'm aware of that. I'm just thinking a trim package is technically an option. There's like a stand alone option or a trim package as an option. Speaker 701:00:15Trim package would be ideal. Speaker 101:00:17I don't know if they're going to do a trim package. Yes, I don't know if they're going to do it as part of a trim package or if they're going to do it as a standalone option or God willing one day it will be standard equipment because then you could totally downsize the size of your air conditioning to be a fraction of what they are. Speaker 701:00:35And it could be because the IX is pretty much it's in I think 95% or more of the PDLCs and 95% of IXs. So that could happen, but hopefully we at least get out of a trim package. I noticed they started doing that in some cars too. So well, thanks for your answers. Speaker 101:00:53Sure. Appreciate it. Thanks for the question. We Operator01:00:59have a question from Michael J. Private Investor. Your line is open. Speaker 601:01:06Hello, Joe. I'd like to Speaker 301:01:07ask, to what extent is cost still a barrier to having more organizations adopt SPD, especially the architectural one? Someone we even know posted in quite detail comparing the course of SPD with non SPD windows and it seemed that there still was a great disparity in that cost. Speaker 101:01:34I didn't see the post, so I can't speak to what the post said. But if you look at and if you go back to my earlier comments about why we're excited about this Asian carmaker, the price of the film, the price of the cost reduction from streamlining due to the retrofit use can be significant. And if you look at some of the costs that you're comparing it to like, let's say, the skylight, we're cheaper than a skylight shade. So it depends on how you analyze the market. The market is going to decide. Speaker 101:02:14If someone wants it, they're going to buy it. But I don't believe in side by side costs unless you have a context. Speaker 301:02:24To what extent is Mercedes still using SPD in their vehicle? It seems we don't have too much information regarding its adoption in other models. So what is the status of Mercedes and SPD? Speaker 101:02:41We have a very good relationship with the people at Mercedes and their name pops up on royalty reports from time to time. That's all I'm going to say. Speaker 301:02:51Okay. Thank you. Speaker 101:02:53Thanks a lot, Michael. And Operator01:02:59our next question comes from Seth Nickerson, a Private Investor. Your line is open. Mr. Nickerson, your line is open. Speaker 601:03:16Yes, hi. Speaker 101:03:17Thanks, Seth. How are you? Speaker 301:03:20I'm doing well, sir. Thanks. I noticed on Speaker 601:03:25a Speaker 301:03:25check board with Gauzy that posted about an MOU with OG back in January. Speaker 101:03:34I was wondering Speaker 401:03:35if you might Speaker 101:03:36Yes, they've had when we were talking about transparent OLED displays, that's LG providing they have a unique technology, which is a transparent form of OLED. And just to kind of go what's underneath that, so there's OLED displays out there and typically they're within your television on the wall. A transparent OLED allows you to actually put that on a clear substrate like a piece of glass, like a window. So the idea is you can turn a window into a television. But if you think about the optics of that, if you have that window face with daylight coming in from behind it, it's going to wash out the image. Speaker 101:04:22So if you now combine that transparent OLED with an SPD film, you have the ability to turn on the OLED to turn the window, if you will, into a television and block the ambient light by using an SPD film. So all of a sudden you go from having a washed out television image to a vibrant clear one. And then let's say you want to turn that window, that television back into a clear window, you would clear up the SPD film and turn off the OLED and you have a clear window. So that's the idea. It's quite remarkable when you see it in practice. Speaker 101:05:04And as I mentioned, when we were at CES, there was flat panel displays that had the combination transparent OLED and SPD film and Gaussi's booth and elsewhere. But also they had an augmented reality windshield where imagine a piece of construction equipment, for example, and superimposed on the windshield was where all the gas and electrical lines were on the site that you're digging. So you could see as you're digging where the areas you need to avoid are. Well, if you're on a construction site and there's daylight, it may be hard to read what's on your windshield. And now with the combination of SPV and transparent OLEDs, you could see quite clearly where the lines were, where the gas lines were, what to avoid. Speaker 101:06:01It was actually kind of cool too because they have external cameras on these construction equipments and you can actually with a gesture of your hand move the display over to the side. So let's say you're digging and you want to see where you're digging, you'd look at the camera because sometimes there's blind spots and the camera would help you. But let's say it's getting in the way of you doing your job, you just kind of just touch the screen and swipe it to the side and it's very much like minority report where you could just play with these things in real time. So it was quite remarkable. And LG and Gauzy have been working together on this combination for quite a while. Speaker 101:06:42And I had encouraged them to do that because we saw that there was some real traction in that market. Speaker 301:06:48I was watching the LG CES thing and at 32 minutes they brought out their TL LED and they had that showy black screen come up from the bottom. And I remember what Gauzy had, and it seemed like the answer. With the stock languishing like below $1 a ton, that you wouldn't make a press release about that. Speaker 101:07:16Even Gordon If we could, yes, Scott, if we could make a press release about things, we certainly would. A lot of times, we specifically ask not to or not now. And you have to respect the customer. True. Okay. Speaker 501:07:33Thank you. Speaker 101:07:34But Gauzy and I would love nothing more than to be able to talk about that. Operator01:07:47And seeing no further questions, I'll turn the call back over to your host. Speaker 101:07:52Thanks. Thanks, Paul. And remember, if we've not fully answered any questions that were emailed or asked today, just email us and we'll do our best. A couple of closing remarks. This past year has been transformative for Research Frontiers, marked by financial growth, strategic expansions and innovative breakthroughs in new uses for SPD SmartGlass technology. Speaker 101:08:17And as we look forward, we are committed to continuing this momentum, improving the way people live, work and get around and enhancing our global impact. In the past year, Research Frontiers achieved significant accomplishments, including 109% increase in revenues and a reduction in cost moving us much closer to profitability. The company solidified its market leadership in the smart glass industry, expanded its collective global footprint and diversified its product applications across automotive, aircraft and architectural sections as well as augmented reality and other advanced uses of SPD SmartGlass technology. Other notable achievements include the introduction of SPD technology in Boeing and Airbus aircraft and the development of the SPD SmartGlass retrofit solution and triple digit percentage growth in automotive royalties. A few weeks ago, the market research firm SNS Insider reported that in the smart glass market, The Transportation Application segment holds a considerable market share of around 48% in 2022, driven by automakers' inclination towards adopting SPD Glass, especially in luxury cars. Speaker 101:09:341st, let me say nice to have our technology accurately and specifically mentioned by name as the leader in the automotive smart glass market. And as we noted their conclusion about the dominance in the transportation section, all through not only in 2022, but based upon the numbers we just reported, for 2023 as well. And in 2024 and beyond, there may be new markets for SPD that dwarf and build upon our current ones. We and our licensees will relentlessly pursue those opportunities as well. We all have an incentive to do that. Speaker 101:10:10This past year, we have gotten into both Boeing and Airbus aircraft for the first time. We've also expanded a number of car models from first Mercedes and then to McLaren and then to General Motors and then to Ferrari. We're looking forward to an upcoming introduction in Asia the middle market as well as SPD SmartGlass being introduced in new cars produced in Europe. Our focus has been and will continue to be to help our licensees introduce new products into markets, which means hard and coordinated work to meet the timeframe of existing customers and also to introduce and constantly push new products across the finish line. All of this is with one goal in mind, growing revenue and becoming significantly profitable. Speaker 101:10:57We have made tremendous progress over this past year, significantly increasing our revenues and moving closer towards profitability. With the strong growth we're seeing in automotive applications, our expansion into major aircraft manufacturers like Boeing and Airbus, notably through decisions to use our technology by their customers and the enormous potential of the architectural market, we are well positioned for continued revenue growth in 2024 and beyond. Our strategic partnership with Gauzy has allowed us to increase production efficiencies, reduce costs, ease logistics and expand our product offerings and enter into new products and applications. Our collective global presence gives us an important competitive advantage. The lawsuit victory we achieved helped solidify and validates the intellectual property position we've built over decades of research and development. Speaker 101:11:54The federal court's ruling on the licensee IP provision in our contracts is a significant precedent that strengthens our intellectual property portfolio and adds value to what we can do for our licensees. We continue to make advancements to our SPD technology, including developing color neutral particles that can further enhance the aesthetics and market opportunities. Product and market innovation remains a key priority. With rising energy costs, government incentives for energy efficient buildings and growing demand for user controllable tinted glass, the market outlook for smart glass remains extremely promising across the automotive, aerospace, architectural and other sections. And now more real world examples have been practically demonstrated to show how our SPD Smart technology can be used in new applications, such as adaptive headlights and head dip displays, such as the ones that BMW developed and demonstrated at last year's CES and the augmented reality displays at this year's CES. Speaker 101:13:03Looking ahead, we are poised for even greater success. Our robust pipeline of new products and technologies promises to revolutionize the way SPD SmartGlass impacts our daily lives and the environment. Research Frontiers is the clear innovation leader and the most diversified player in the smart glass industry. Our pathogen SPD Smart technology provides proven performance advantages over competitors. We have built a global licensing network and portfolio of cutting edge products that were used in. Speaker 101:13:382023 was a year of substantial progress and we have positioned the company for accelerated growth and financial success in the years ahead. We remain intently focused on execution, innovation and driving shareholder value. We remain committed to substantially pushing the boundaries of what is possible and enhancing shareholder value in the process. Our journey together continues and I'm excited about what the future holds for Research Frontiers and our stakeholders. Thank you to everyone who has contributed to our journey thus far. Speaker 101:14:12Your support, dedication and belief in our vision and mission have been instrumental in our success. I look forward to working together to achieve our goals and set new and more ambitious benchmarks in the years to come. Thank you. Operator01:14:31That concludes today's conference call. Thank you for attending and have a pleasant day.Read morePowered by