Q3 2022 Research Frontiers Inc Earnings Call
Okay.
Good afternoon, ladies and gentlemen, welcome to research Frontiers Investors' conference call to discuss the third quarter of 2022 results of operation and recent developments.
During todays presentation, all parties will be in a listen only mode.
Following the presentation. The conference will be opened for questions by pressing star one.
This conference is being recorded today.
A replay of this conference call will be available starting later today in the investors section of research Frontiers website at Www Smart glass dot com and 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, except anticipate plans forecast and similar expressions are intended to identify forward looking statements.
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These statements reflect the company's current beliefs and a number of important factors could cause actual results for future periods to differ materially from those expressed.
Significant factors that can 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 events or uncertainties.
This conference will be answering many of the questions that were emailed to it prior to this conference call either in the presentation or as part of the Q&A session at the end.
In some cases the company has responded directly to email questions prior to the call or will do so afterwards in order to answer more questions of general interest to shareholders on this call.
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I would now like to turn the conference over to Joe Harare, President and Chief Executive Officer of Research Frontiers. Please go ahead Sir.
Oh, Thank you Billy and welcome aboard Hello, everyone and welcome to our third quarter of 2022 Investor Conference call.
In our last call, we discussed how inflation and recession would probably not affect our business and the reasons for that.
We were also asked about the energy situation and its impact on our business, especially in Europe .
We also discussed in our August 4th Conference call New cars being introduced in the third and fourth quarters of this year as well as other developments in the smart glass industry.
Yeah.
Let's see today.
How well we did so far with our predictions.
A quick financial summary, as noted in the press release, we issued earlier this afternoon fee income from the automotive and aircraft markets were up this quarter.
Expenses were down in the third quarter compared to the prior year.
Expenses in the third quarter also a $192000 lower than in the second quarter, that's not bad for an inflationary environment and we run a pretty tight ship.
And our net loss this quarter was $258000 lower than the previous quarter.
We remain in strong financial condition right.
We raised capital on favorable terms.
Continue to have no debt and as of September 32022, the company had cash and cash equivalents of $4 8 million working capital of $5 2 million and total shareholders' equity of $5 4 million.
We expect to have sufficient working capital for at least the next five years of operations. This is based upon our further reduce quarterly burn rate of 250 to $300000 with higher projected revenues. During the next 12 months, mostly from new car models.
In our last conference call, we spoke about new car models being announced in Q3 and Q4 of this year with our SPD Smart glass technology in it.
This has indeed happened as we had indicated with Cadillac launching the celestica for delivery to customers towards the end of 2023 and earlier in 2023, another sports car maker in Europe , delivering cars to customers offering an SPD smart glass panoramic roof.
Expect yet another carmaker this time in Asia to introduce a vehicle with higher volumes and the other two that will offer S. P D smart glass.
Moving now from automotive to the aircraft market and other mass transit vehicles, such as trains and specialty vehicles.
An aircraft last year, there was significant new projects in the aircraft industry, including the a C. J 220 program by Airbus <unk> envision systems.
Also S. P D electronically Dimmable Windows, My vision systems, and the new epic aircraft and then the Diehard T. B M 960 aircraft.
Two of these aircraft were on display at the N B double eight aircraft convention in Orlando, two weeks ago, and I must say that it was quite <unk> I was quite impressed at how our technology looked and performed in the in the aircraft.
Some of the new specially engineered materials by Gaussian vision systems that are used in conjunction with S. P. D. A really amazing very well done.
Vision systems also had a nice booth at the envy double a that follows on strong exhibitions by Gaussian vision systems that Intertrans in glass Tech both in Germany in September .
I also want to congratulate vision systems on the great successes they revealed in October with newly announced projects for S. P. D Smart glass, which include.
17 aerospace programs nine marine programs nine specialty vehicle programs three railway programs and three R V programs.
Inspect X S. P. D aircraft window business also picked up this past quarter.
Let's look at some other economic trends and forgive me I used to be in a federal reserve economists. So I can't help looking at various aspects of the world economy, especially when they have useful leading economic indicators.
As noted we set up our business to be resistant to inflation and recession. However, there is also a concern expressed in our last conference call about potential supply chain and energy issues.
I'm happy to say that in these areas, it's not all gloom and Doom out there and we and our licensees remained relatively unaffected.
First we need to look at the way our licensees use energy.
Galaxies facility in Germany does not need high energy machinery, such as smelters. They <unk>. They basically just need to keep the temperature inside their facility comfortable in within certain levels for accuracy.
They reported to me that they do not need to raise prices and pass on higher energy costs to their customers.
Also in Europe natural gas prices drop 70% since their record highs in August when we had our last conference call.
Shipping costs are down too.
About two weeks ago, I read an article which observed that while recently and we all remember this there was an ethic backlog of Containerships waiting to dock at the ports of Los Angeles in long Beach.
At one point this year that backup stretched 109 shifts deep and almost 60 miles from the coast.
But now the shipping situation is almost back to normal with the number of ships waiting to drop off their goods standing at his four according to the Wall Street Journal plus.
Plus the cost of sending a 40 foot container from Asia to Los Angeles has plummeted from its peak of more than $12000 to almost $2000, which is nearing its pre COVID-19 average.
And our last conference call I reported on multiple car models that were expected to come out in the near term using R. S. But he's smart glass technology, starting in the second half of 2022.
Sorry, 2023, we've already seen the indications of cars coming in North America, and Europe with New car is expected to be announced this month coming out of Asia, which much higher volumes.
It is expected that these cars will all start to be delivered to customers. During 2000 twenty-three. So preparation for the production ramp up has already begun.
We also noted earlier increased economic activity in other product areas, including multiple programs by vision systems Gal Z a.
A G P, which is now producing S. P. D for two new car models coming out next year and L. G display with their transparent all that display products using S. P. D film.
You have seen major exhibitions of S. P D at Intertrans in glass Tech in Germany. The aircraft show in the U S. The specialty vehicles show in Europe , and is expected that vows galaxy envision systems, and perhaps others will have their largest exhibition ever at the upcoming C. E. S show in Las Vegas.
In early January .
And look for revision systems that the marine equipment trade show in Amsterdam November 15th to 17th it is the largest show of its kind in the world.
And our last conference call I noted that my internal estimate was that these near term automotive introductions can use them more than double the amount of SPT film told by Hitachi in our best here so far.
I also noted that Galaxy has made substantial additional investments and expanding production capacity quintuplet production capacity for SPD emotion.
We get our royalties on the selling price of S. P. D N products and one of the most important and accurate leading economic indicators of sales levels of S. P D and products as a sales levels of S. T D's film, which goes into all of these and products.
So the capacity ramp up in hiring from Galaxy and others is probably the best indicator of near term sales and royalty income.
With that I look forward to answering your questions and we took some of the questions previously sent in by our shareholders.
Now were emailed to us and in some cases I'm going to combine several related questions into one.
John Nelson asked why did research renters do the 4.6 million dollar private placement on September 16th 2022.
Any more specifics on potential use of the funds when will investors and the deal will be revealed complements to you on a well designed private placement that was very protective of existing shareholders well. Thanks, John and there are several reasons, we did it first fiscal responsibility and strength and also flexibility to pursue future.
<unk> should they undoubtedly arise also showing customers that they're part of a stable and reliable supply chain is very important and.
And a strong research frontier is coupled with strong licensees is good for our entire industry.
We've seen companies like view have even their existing customers look for alternatives because of their ailing financial health and uncertain future.
And as I say, an ounce of prevention is worth a pound of cure.
If you look at what other public smart window companies have done just in the past month view has doubled and crown has tripled the number of shares that they have outstanding and highly dilutive financings that just buy them months more of life night predicted that in prior conference calls.
Just this year to date view is seen as shareholders lose 68% of their value as of yesterday and crowds performance was even worse with the share their shareholders, losing 93% of their value.
And we know from experience that they have quite a road ahead of them because they have yet to deliver a product of their launch customer receive feedback on their narrow filmstrips design and build their production line and then generate revenue.
Our shareholders a place their trust in us and we never want to have our shareholders, even remotely risks such a tragic results.
In fact, I think the market certainly realizes that we are a well run company with excellent and stable growth prospects.
As of yesterday, our stock was up 30% this year in a bad stock market, where even after a record October the Dow is still down 12% nasdaq's down 34%. The S&P 500 is down 22% in small caps and the Russell 2000 are down 21%.
One of the things we've learned over the years is that unless you want to substantially dilute your shareholders with desperate equity offerings at very low prices. The best time to raise money is when you do not need it.
And if we don't use it we can always return it to shareholders in the form of dividends or use it to accelerate the growth of our business.
Getting to Jon Nelson's next question about who invested another thing I've learned over the years, it's not how much money you raise is as important as how you raise it and with whom you raised.
And we were very fortunate to have some very large individual shareholders are already had substantial positions in the company.
And institutions that started investing with us as far back as the 19 nineties involved in the last offering.
They understand where research renters is and where it's going and we're willing to accept restricted stock, which has a holding period.
And now there's a strong network of investors who participated in this offer offering and we're very unfortunate we're very fortunate to have them supporting our efforts now and in the future.
Another question.
Mhm.
Joe and the last conference call in August you shared some general observations about the economy inflation the effect of a recession another trends.
What is your opinion about the automotive industry in general since we expect much of our near term revenues to come from it.
Thanks for the question Speaker.
Speaking generally I had indicated in the past that I thought that the higher end of the automotive market would do well. We also saw this during the world economic crisis of 2008, when luxury carmakers at rapid profit string major economic general economic downturns and financial crises.
Last month automotive news noted that sales of the ultra luxury cars are booming this year in Europe with companies, such as Bentley Ferrari and Lamborghini shaking off supply concerns to lift a segment that is becoming more and more profitable.
So as someone who studies economic history I'm not surprised by this.
Speaking more specifically there'll be winners and losers in the industry I think the railroad days of investors throwing massive amounts of cash startups like the E V market are over for the foreseeable future.
There are just too many companies that have gone public and raised massive amounts of capital only to spend it all and crash and burn.
And I think you'll see more activity from the well established companies Porsche had a very successful IPL other well established players in the automotive industry also have gone public or spun off divisions.
These well established automakers have also announced massive investments and going all electric. This is also being accelerated by government mandates and incentives in this area.
And remember that these government mandates all help research frontiers.
First for the next 15 years or so we don't expect cars will be all electric and the carbon penalties in Europe of 95 euros per gram per kilometer that carmakers in Europe face.
For their internal combustion engine fleets is helped by the four grams per kilometer carbon reduction that spd's smart class can offer.
And for the accelerated adoption of electric vehicles, we can help there too.
The estimated 5.5% increase an electric vehicle driving range that Spd's Mark last can achieve makes electric vehicles, more economical and desirable to own and operate.
And the 30% investment tax credit from the dynamic last act for Smart Windows also helps to make us pretty smart class more affordable for architectural applications, both residential and commercial.
And there's another important macro Chen trend to note an automotive and this is the pronounced movement towards large panoramic roofs.
Bentley is noted in their public presentations that a stationary S pretty smart glass roof can save 54 components and eliminate 13 pounds of weight in the roof of the car.
And the larger the roof. The more you need spd's smart glass for shading, because traditional pull across mechanical shades or not feasible for large roof areas.
The public is also beginning to publicly note that unless properly shaded panoramic roofs can cause an otherwise wonderful car to become an oven.
Independent tests by Mercedes and other show that that's pretty smart glass can reduce the temperature inside a vehicle by 18 degrees Fahrenheit.
Even when it is just being used on a small roof.
Imagine, making your AC compressors, 40% smaller and getting in your car and having the interior temperature be 72 degrees instead of 90 degrees without having to use your air conditioning.
A related question Joey C publish reports and articles that the Hyundai grander will be introducing a smart glass roof. What can you say about this car well thanks for the question.
I follow Hyundai quite closely and my wife, Rebecca also drives one that they do make great cars.
Why do I follow Hyundai.
They're a strategic investor and Galaxy and that should tell you something.
There are also a high volume mid level manufacturers, so not just premium cars and.
Hyundai Motor Group is also a strong number two behind Tesla in EV sales.
In fact, Hyundai said that so far this year its E V sales rose more than 27% from a year earlier.
They also raise their EV sales target for 2000 twenty-three by 40% to about 300000 units.
And they said it will focus on luxury models, Suvs and electric vehicles to achieve what it expects to be a record high earnings this year.
If I had to make a prediction here and nothing's been announced yet by about the car with the first official announcements is expected to come out later this month.
I will look at how cars have historically been launched with our technology at other automakers.
They start with a selected car model.
This may be not be the most expensive car.
But sometimes it is as in the case of the Cadillac Scholastic.
The first car model within a carmaker for S. B D is usually the one that has the development budget for a new option to be featured in the proper timing for introduction.
Once S. P. D has developed invalidated within an automaker then it starts to be deployed another car models within that automaker as well.
This happened that Mercedes at Mclaren.
And all indications are that this will also happen at general Motors.
Sometimes an automaker will take an established technology and now we are considered a reliable and established technology in the auto industry due to the tens of thousands of cars that we've been deployed on without any reported problems.
And then they use it on the upper.
<unk> flagship and then let it propagate down to the lower price cars.
Staying with Hyundai for a minute, let's take hyundai's flagship for example.
It's grander the code name is G. N seven is their flagship sedan and it goes by the model name Zera and markets outside of Korea.
According to some industry publications and nothing's official yet the seventh generation granddaughters release date for both the electric vehicle and not electric versions is expected to be August 1st 2023.
Pre production sales of this car quite strong.
And it is in high demand.
I watch Hyundai and this car very carefully and it's a beautiful car and it is known to be loaded with useful features and technology.
Another area I watch closely Z S U V market.
As noted with Hyundai and their affiliate Kia Suvs play an important role in and automakers revenues and profitability.
Another trend I noticed.
Is that carmakers that are known for their sports cars, such as Porsche muzzle rottie Ferrari or for their luxury sedan, such as Rolls Royce and Bentley have all introduced Suvs recently.
These newly introduced Suvs are quite popular in the luxury segment and now account for high profits and as much as two thirds of their revenues.
In this area I note that Mclaren CEO , Michael Lighters became CEO on July 1st after jobs as Chief Technology Officer.
At Ferrari and a product line director at Porsche.
They had success with the Porsche Cayenne in the <unk>, which incidentally has a beautiful smart last panoramic routes, which I'm quite fond of.
And I'm not the only one fond of the glass roof in the Ferrari Parasang way.
Benedetto vignette.
C E O Ferrari said this in his reason quarterly.
Quarterly conference call.
Let me tell you one thing that the <unk> has a lot of accessories, a lot of options options a lot of opportunities for persona personalization, because we'd been reaching the offer I mean, we mentioned just one that is very interesting is the electrochromic glass roof.
It's very very interesting, it's very well appreciated.
And this is quite a popular car the Ferrari Parasang way was unveiled in mid September and shipments are expected to start in early 2023.
Production for the life of this car is almost already sold out.
Ferrari sold 11155 cars in 2021 and is on pace to sell over 13000 cars in 2022.
If ferrari sticks to its goal of limiting production of this car too I'm.
I'm sorry.
If ferrari sticks to its goal.
Which they've stated of limiting production to 20% of their total we're talking about over 2600, Piero sanguine cars per year.
But Ferrari May also go above their self imposed 20 per cent limit because of this overwhelming demand in their desire to take good care of existing Ferrari owners, who very much want this car.
And as I noted earlier some of the S U V makers.
Or.
Are you having as much as two thirds of their revenue come from the S. U V premium segment.
Getting back to Mclaren, they say, they're not ruling out having a mclaren.
S U V as well and given the popularity of the S. P D smart glass roof within Mclaren and they tell me that their customers love It and it is a highly taken option very high percentage. The C. E. O has experience at Ferrari with the <unk> and the strategic contribution of Suvs to revenue and profit at luxury carmakers. This can be.
Quite nice development for research frontiers.
Another question I note that algae display it's been quite active combining their transparent all that technology with SPT, starting with CES in 2022, and then in September at two major trade shows in Germany.
Big in this market B for research on tears.
Will report just came out this morning about this it estimates the global transparent display market size at about 1.26 billion in 2021 with a compounded annual growth rate of 45%.
Interestingly enough smart glass in particular is highlighted in this report is one of the factors for the high growth rates in this market.
If you've had the opportunity to visit C. Yes glass <unk>, you'll see what a great job gals, <unk> display did and making it transparent window turn into a high definition and vibrant television.
Being transparent all that technology and S. P D film.
It's very very cool.
Well, we've discussed a lot of exciting topics so far today and I will now ask our operator Bailey to Oprah open up the conference call to any additional questions people participating today might not have already had covered and.
And if we haven't fully answered any questions that were either emailed to us or in our presentation today or in the lives Q&A.
And please feel free to call or email us I encourage it.
He would like to ask.
Please.
One on your telephone keypad now you'll be placed into the queue in the order received.
<unk> asked her question when prompted you might you know if you have a question. Please press start whining on your phone now.
And I'll make sure all of our questions. Thank you.
And our first question comes from Jack Carney.
To your line is open.
Hi, Joe.
Hey, Jeff.
No I understand you know the S. P D roof will save.
Energy.
E D. The question is how many.
Mmm, you know E D's are gonna have roofs at all.
What do you have any feel for what percentage of new ABTS are gonna carry a panoramic roof. That's really good <unk> yeah. That's a great. It's a great. It's a great question. So what we're finding is that if you can control the shading.
Roofs are very popular.
And if you can make them stationary which is what you're seeing now the patent panoramic roof.
Save a lot of weight.
And and also components.
A couple of E vs have had massive complaint so about their panoramic groups that didn't have a shedding system and uhm and our customers have resorted to all sorts of.
AD hoc solutions to try to solve that in the carmakers or not.
Unaware of that they actually have approached us because they know that they have a problem that needs to be addressed but getting back to your question. Yeah typically what we're finding in.
The mid level and upper level market.
Is about 80 80 per cent of the cars in the United States have Sun rooms, it's a little different in Europe .
Historically sun roofs have been less.
Less popular in Europe , there are certainly popular in the middle East also and depending on the styling of the car you usually see this more on the luxury cars and also on the on the support of your cars. So well I think I think it's gonna be a big market, but yeah I'm sorry go ahead.
Hey, if you were in a gas like in.
30 to $40000 range, how much added costs would it be for somebody to order one with an S. P. D. Ruth I mean, that's really that.
The thing we have to.
Discuss is is it's it's an extra car yeah not sure cause.
And it's.
And then <unk> and as you said, if they're getting 80 per cent of people are ordering Tanner at Rose then it makes a lotta sense.
Right. So there's two there's two aspects of that question. So number one is what does it cost the automakers and then what do they charge the customer.
And.
Typically the customer is gonna pay three to five times, what it cost the automakers for a component for an option because that's where they make their money.
But that's gonna depend also on what the market can bear and let's just take up a present example, if you look at the Mclaren.
For example, the <unk>.
About $8000.
Okay, but it's the same glass the same roof actually the same supplier as as a 2000 dollar retail roof at Mercedes So it depends on what the market for the car will bear the same glass same supplier.
But a much different retail price. So you know it's up to the automakers to decide how much they think they can get and still maximize profit and revenue.
But the good news is on our end, we're focusing on the cost side of the equation.
We want to make this as affordable as possible for even midlevel cars and some of the cars that I mentioned earlier in the call are actually mid level cars that have panoramic roofs, and you know our backing in S. P D. So.
You know I think it's going to be a popular option.
Even at the mid level.
Well I need to hear thank just so you know that just so you know the unit volumes you know the.
Premium markets about three per cent of the unit volume of the car market. If you can get down in the middle you know the mid level.
Talking about many many many multiples of that in terms of <unk> and that'll be a home run to get into that space, absolutely absolutely and that's always been our goal and that's always been the focused effort that we and galaxy and our other licensees have had is to get into that mass market.
Great. Thank you.
Thanks, Jeff.
And next question will come from Michael Okay.
Okay.
Hello, Joe could you clarify Michael you said, Yeah, you said fee income increased compared to the previous call later and also.
Ah.
2021, but I looked at the F C C filing and I could be mistaken if so I apologize, but it seemed that there was a sharp decrease in fee income in the if you <unk>. If you read the press release and also what we said is that when you exclude the one time items.
From last year.
The income last year to this year is up an automotive an aircraft.
And you know last year, we had some collections from licensees that were in the different periods and when they were incurred which contributed to a higher amount and also some other.
One time things like in a new contracts and you know and large payments under them. So if you just compare apples to apples last year versus this year, we were higher this quarter than the same quarter last year and we're certainly higher.
And I think this is it more relevant also.
Last quarter to this quarter in terms of in terms of our revenues.
And when will okay. When will the Sun God come out that's supposed to have been you know.
Cause that could be fitted.
Onto existing cause it is invasion system's going to market that eventually.
Yes, the Sun visor, you're talking about the Sun visor, Yeah, Mhm right right. Yeah now that that's that's being worked on not only by vision systems, but by others as well and you're also seeing it incorporated into the windshield itself on some cars like the Mclaren, where they build it into the laminate itself, which is kind of.
Cool.
But what people eventually be able to buy it separately and you know.
Install it on your existing cause yeah.
Yeah, Yeah, an aftermarket Sun visor is relatively easy thing to do yes, it's a relative I didn't think I.
That would be a big you know a big source of revenue because people wouldn't have to actually buy a.
Cause that had it already and if they could just installed right I agree I agree and and you know people like to upgrade their cars and that seems like a very you know.
Not only practical but interesting way of upgrading your car to put something very very cool in it.
Ah you're not allowed to name the sports vehicle that you mention that has installed S. P D.
Not yet allowed to name it but I think that everybody.
Can probably ascertain from the <unk>.
Timing of the introduction in mid September and the fact that they're very well known for their sports cars and.
Some of the comments buy their C. O you know what I'm talking about.
Okay. If you look back on this conference call, you'll probably you'll probably be able to have a reasonable degree of confidence.
Okay. Thank you Joe.
You're welcome good talking to Michael.
And our next question comes from Johnny.
Okay.
Thank you Hi, Joe Hey, John how are you. Thanks for the earlier questions also appreciate it Oh Oh, you're welcome.
I just feel real good about you know the course that you're taking.
Thank you again.
The private placement I think was an.
Excellent excellent Lee designed and executed so thank you it's from.
From one of your shareholders.
Thank you appreciate that.
I've got a couple of questions. One is santa related to any kind of an offshoot of transparency Anderson Corporation, and you're begging ubiquitous energy announced plans recently.
In a press release in August can develop energy generating windows and doors without asthenic compromise.
And so my question is is refer working with any glass or window manufacturer zine using S. P. D. In this space, which is being called transparent solar for windows and doors yeah.
Yeah, So actually one of our licensees vision systems, and the <unk> window, which was a transparent photovoltaics are very similar to what.
Anderson was starting to work on today, but this was years ago that can generate 20 times more power than the window needed and one of the hallmarks of what we do is we use such low power that.
Things like even low efficiency transparent photovoltaics can work well with this and what they did is they actually.
Had a aircraft window, where it would be completely self powered now not only is that important because of the.
The energy savings, but also the installation imagine to snapping this in in some of their videos you could actually see them snap this into the side of a.
Aircraft and it's in so you don't have to why are you don't have to you know so it's a pretty much literally plug and play.
And it was generating so much extra power that they put a USB charging port on it. So that you can power your cell phone also so very very feasible to do.
A lot of the transparent photovoltaics that we've seen though have been.
Have been ones, where you can see visible lines in the glass and you know for a lot of window applications, you don't want that and I don't know if this ubiquitous energy.
Has that I've seen a number of companies some came out of Princeton that I've been working with and things like that where they have you know fairly good aesthetically pleasing transparent photovoltaics.
And you.
Might as well use the real estate on your window to generate power. If if you if you can.
Uhm, yes, certainly that's very feasible because of our low power consumption.
Mhm.
Be something worth.
S P D investigating as far as whether they could.
Be combined with the transparent color Oh, yeah, now we very much have development work going on in that area.
Okay terrific Yeah, a lot of that also just just to be just to be kind of fair to <unk>.
People's expectations.
Our cost of come down.
A lot.
The.
Cost of any new technology typically starts out high so I think it remains to be seen whether some of these transparent photovoltaic technologies will be economically feasible to be adopted but that's not.
That's kind of independent of Us you.
You know, what we offer not only as a smart window, but probably one of the largest markets for self powered transparent photovoltaic for window.
Okay got it.
Second question is.
Ooh.
You know at this time, whether in the Magic real finally, 20 2300 <unk> grandeur.
Would be offered as a.
Single option or part of a package an unlimited or.
Branch out of the model tanks for that for the grander I don't think that decision's been made yet I don't think it's going to be standard equipment, but I, but I don't know if it's going to be part of a standalone option like Mercedes that are part of a package.
Mmk you know.
I am I I hasten to add it hasn't been officially announced yet so.
Mmm, Okay got it right and last question and.
Regarding the Ah Research Frontier <unk> press release on October 17th you mentioned for anyone vision systems contracts and transportation.
Very impressive I've been busy.
Yeah, where.
Another question you could ask me you know how many were narrow and how many were you know legacy ones most for yeah.
Yep, most window I, that's all I could say, but mmk they've been very active.
[laughter], Okay [laughter] an excellent.
I wish I could clone those guys are amazing.
Yeah, and then [laughter] when the other the other <unk> question for that one with.
Does you've got in this.
The listing specialty vehicle contracts does that category include automotive automobile companies sections <unk> specialty.
No, but specially remember vision systems.
His license for certain things.
An automotive.
Passenger cars is not one of them, although I wouldn't mind, if they got involved with that yeah, especially the vehicles or more of like.
Harvesters and construction equipment and things that have a lot of glass.
Really have a need for solar control I mean, if.
You want to think about it but.
If you sat in you know a big Harvester, It's you know a lot of glass in there and you're out in the field.
You want to make sure that you know you don't have to.
Truck around the second air Conditioner, just for the for the cab of the Harvester. So this is where the glass really helps.
Mmk and the last one is related to the.
San Vice or.
<unk> that previous questioner I mentioned.
Do you have any.
Comments that you can give us on a timetable for that product.
Not that I could share alright.
Alright, okay.
Okay. Thanks, Thanks, a lot John .
Okay. Good.
And our next question will come from Alan Jones Street.
Yeah, Hi.
Yeah, Hi, Joe Hey, Alan How're.
How are you.
Pretty well. Thanks. My question is this it seems like a lot of things are coming together now.
And you know from all of what you said it wasn't an overnight success alter I'll assure you and yeah sure May also [laughter] no it's not an overnight.
Work that went behind it.
Alright.
I I understand my question is this with with.
Everything coming together wouldn't it be prudent, especially since you have some money now too.
To.
Increase your Investor Relations I mean, the stock you could tell me at the stock has been doing better blah blah blah blah, but.
It has no volume and you know from what you are saying it could really do very very well in the future much better than what we're talking about in the past year.
Wouldn't wouldn't an increase in.
Exposure to investors be something that you would think would be a good timing right now.
I think that increasing our investor relations, especially since we have so many good things to talk about.
To investors.
Is appropriate.
How quickly and how much we wrap it up is a different story, but uhm.
Right now you know.
I focus you know, obviously as a shareholder I'd like to see our stock price.
Always be higher that's where my net worth is but.
But I also have to focus on the business and that's really what I'm, what I'm, what I've been really focusing on and I think that as we generate revenues.
The population of investors that will invest in research centers gross I mean, my wife likes to invest in companies that pay dividends.
Like I like to be a dividend paying company very soon so.
You know maybe you could hire a few people or one person that would have.
We have good relations, we do <unk>, we do have we do have an investor relations.
Function working.
Okay.
Okay. Thank you.
Thanks Alan.
And at this time, they're currently no more questions.
Okay.
Thanks, and I'm, just gonna make some closing remarks.
Yeah. Some people have chosen itself enormous amounts of money at this industry and they have high labor costs and high raw material costs and high manufacturing costs and high levels of capital expenditure and high levels of debt.
And you know resources of course are necessary to build and grow any industry. However, I believe that the way that some of these other companies are doing it is not the best way.
Based on their existing cash positions and what they had to do to raise money in their high cash burn rates, which are 10 to 30 times higher than ours and.
And their methods of doing business.
By the time, we have our next conference call. These companies may be close to being completely out of business or have.
Terrible and unrecognizable balance sheets, but we we chose to take a different approach.
And it's quite straightforward approaches to have the best performing technology, even if it starts out as being like any new technology more.
More expensive.
Then we get the best people to work with us.
And then together, we work hard to get the costs down.
And the way, we set up our industry for S. P. D is to have these great companies deploy large resources in a sensible way.
We've done this in silver licensees.
They hire the best people make focused decisions and expand what they're doing is our customers needs for Spd's smart glass expanse.
And a great example of this is what Galaxy is done I mentioned in our last conference call that they have expanded their emotion production capacity by five times.
And the last month or two you've seen where a lot of that activity is being directed.
And new cars and just for this year there was one in the U S. One in Europe , and one coming out in Asia.
New trains and aircraft new types of information displays and other projects that use SPT smart glass and SPD film.
And while we can always say directly what specifically our licensees are doing.
Many times they put this this information out there in plain sight.
And many of you have pointed out.
The job creation from S. P D and we're quite proud of that.
Look at the job creation at Galaxy vision systems, and a G. P surrounding the recipes smart glass businesses.
And also with their customers.
You can also ascertained from their hiring where these companies are moving.
They're growing quite nicely and street.
Areas around the world and and strategic industries.
Energy efficiency business efficiency logistics transportation and the way people live work move and interact.
Are all things that we strive to make better.
And history has shown that the best way to predict the future is to create it.
We get our licensees or doing that not by swinging for the fences in an irresponsible way, but by clearly seeing the path where key decisions in key industries are moving.
You've seen this in the form of large strategic investments by a number of our licensees from a G. P. Two gals that division systems and others.
You've also seen this by their customers demonstrating what can be done to make cars more comfortable efficient and safe.
Trained in air travel more enjoyable energy efficient and entertaining.
You'll see this in our homes and our offices were Green company with the goal of making life better for people.
We are doing this to the conservation of energy the more efficient delivery of information the improvement of existing products be that sunroof windshield side windows in cars and trains and planes.
<unk> or even T v's in your homes.
In many respects the challenge has not been with the technology, which is now very mature.
Reliable and establish to be able to be mass produced the challenge has been helping the makers of these existing products understand what SPT smart technology can do to help them.
And with each new product introduction, whether it's a new car model, a new way of using R. S. P. D technology, such as what L. G is doing for televisions and transportation when does for trains.
B M W and others have done with adaptive headlights, and heads up displays or other products and other vehicles. Each one of these introductions of products that are enhanced using SPT technology.
Adds to the public knowledge and awareness of how to make products better more efficient and more enjoyable for the user.
We're also quite proud of the way we have accomplished these achievements and Archie efficient use of resources to get to be the leader and the smart less industry.
Research centers as financially strong and very well positioned for success.
And the leading indicators of economic activity are all positive for us.
Our licensees have expanded their production capacity major customers such as Hyundai have invested in them and are projected product pipeline through the end of 2023 is quite strong.
Going back to the macroeconomic trends electric vehicle Dobson has accelerated at a much higher rate than any of US originally anticipated just five years ago.
Almost every major card company in the World is now announce are going all electric.
And for the closet or not electric.
During this time, we'll be able to help them reduce their C. O two emissions by as much as four grams per kilometer.
Glasses are highly desirable building material, making homes and offices more functional unlivable.
With our technology, we also bring beneficial daylighting in when people want it.
Keep unwanted U V light and glare out.
Save energy in the process.
And vehicles, such as aircraft trains and of course cause we give passengers a better connection with the outside world and block harmful UV heat light and glare, while enhancing security and privacy.
We have worked hard to get here and will continue to work hard for your shareholders and we appreciate the trust and support that you've put enough.
Thank you.
And please vote, if you've not already done so.
Thank you and this concludes today's conference call. Thank you for your time. Thank you may now disconnect.
The House has ended this call goodbye.