Q2 2023 Research Frontiers Incorporated Earnings Call
Yes.
Good afternoon, ladies and gentlemen, welcome to the research Frontiers Investor Conference call to discuss the second quarter of 2023 results of operations and recent developments.
During todays presentation, all parties will be in a listen only mode and following the presentation. The conference will be opened for questions by pressing star one.
This conference is being recorded today, a replay of the conference call will be available. Starting later today in the investors section of research Frontiers website at Www Dot smart glass dotcom and.
It 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 and a number of important factors could cause actual results for future periods to differ materially from those expressed.
Significant 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 the 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 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 until a lot of time for other shareholders to ask their questions. Please remove yourself from the queue by pressing pound one.
Also we ask that you keep your questions brief in the interest of time.
I would now like to turn the conference over to Joe Harare, President and Chief Executive Officer of Research Frontiers. Please go ahead Sir.
Thank you Jen and welcome aboard Hello, everyone and welcome to our second quarter of 2023 Investor Conference call.
[laughter] first.
I want to welcome you all peso, the chairman CEO and cofounder of our licensee in strategic Investor <unk> limited to our board of directors.
And I have worked together closely now for about six and a half years since December 2016, and we share the vision of how smart glass can be done right <unk> invested significant dollars not only in research frontiers, but in factories and business development teams around the world and cutting edge R&D relating to SPD technology.
They continue to break ever increasing performance records set for themselves and it is an honor and a pleasure to have you all peso officially on our board of directors.
Yeah.
Turning to the numbers.
We had good revenue growth in the first quarter of 2023 and this growth continued in the second quarter of 2023.
As noted in our 10-Q filed earlier this afternoon total fee income for the second quarter of 2023 was up over 116% compared to the second quarter of 2022.
Most of this was from even higher percentage growth in the automotive market as well as growth in the aircraft market.
For the first half of 2023 revenue was also up compared to the first half of last year once again, driven by triple digit percentage growth in the automotive and aircraft markets.
We continue to drive down expenses compared to the same period last year expenses were down $131000 for the first six months ending June 32023, and 118000 or 14, 3% for the second quarter of 2023.
Between higher revenues lower expenses and higher investment income our net loss for the second quarter of 2023 was one penny per share, which is about $250000 or 33, 5% lower than the second quarter of 2022 and for the first half of this year was <unk> <unk> per share which was about.
$100 414000, or 32% lower than the same period of last year.
Okay.
Yeah.
Let's talk now a bit about some of the other developments since the last conference call.
And automotive Ferrari is peerless anglais are being delivered to customers with our SPD smart glass roof, and we expect the deliveries of the SPD smart glass roof Cadillac Solecki will start in the second half of this year.
Looking towards our.
Looking towards our expectations for the future more models are either specifying SPD was switching to us from other technologies.
Also since our last conference call, we made substantial progress on landing two new Oems and one of which has three models targeted for SPD.
Yeah.
And while we can always give specifics until the customer has spoken I could give you some guidance as to places to look to give you a better idea of what's coming simply.
Simply put even if we can't say something directly you could look to see what other people are saying and doing.
For example, if you look at the patent literature, a number of companies have filed patents for new and interesting innovations using our SPD materials for various applications mostly in automotive.
Looking elsewhere, sometimes you could find proud statements about their SPD projects on social media by people, who work at these companies and sometimes you can understand where our company is going and where they see their market and business opportunities by looking at how and where they are hiring for.
For example, <unk> has about 70 job postings for new positions in key industries that we currently service. This is about double the positions that were hiring for just a short while ago.
Let me also help you try to put some of the events that you might see in the near future in context. So you can understand their significance.
Research frontiers, and our licensees exhibit and speak at many industry conferences about the benefits of smart glass.
Sometimes it has a very direct impact for example, the Cadillac <unk> came directly out of an automotive glass conference that I spoke at in Detroit several years ago.
Based upon our discussions with GM, we expect multiple cars from general motors to use our SPD smart glass.
These conferences also serve to educate the industry as to the benefits of smart glass and help them cut through the marketing clutter claims and other noise made by other technologies.
This is beginning to bear fruit for us some automakers that have selected other switchable technologies.
And even put them into production have now come to us and our licensees because of dissatisfaction with the performance and durability of these other technologies.
We became the gold standard through hard work and helping to educate the industry as to the differences in smart glass technologies.
As we have noted many times on these conference calls not all smart window technologies are created equal.
These automakers are coming to us and their glass suppliers from a position of knowledge and with better context.
Don't be surprised if the placeholders they have set with other switchable technologies ultimately get satisfied with SPD smart glass.
Yeah.
And in addition to the new two new automakers I referred to above and therefore different new car models targeted for SPD in this latter category. Another two to three automakers currently using other smart glass technologies are seriously considering considering switching to S. P D and.
And why not we have better performance and proven durability.
Sales also continued to grow and expand to various models of aircraft. Many of you saw announcements by our licensee vision systems that they are now supplying SPD electronically dimmable windows on two very large aircraft from Airbus. The ACG <unk> hundred 19, Neo with Ami aerospace.
And the AC J two 'twenty with complex my closing remarks today, we will have some very exciting further developments in aerospace.
Deployment of SPD on trains and boats continues and for architectural applications as well.
No I think some of the questions previously sent in by our shareholders and incorporated them into my present <unk>, let's take some additional questions first question came from.
Jared Albert.
This was in New York, one extreme heat can reduce EV battery range by 31% of study shows.
Jared mentioned 2019 study from the American Automobile Association found that a EV range dropped 4% at 95 degrees, that's kind of timely with the heat wave going on here.
Without using air conditioning, and 17% when AC was running so think about that Youre range dropped 4% when it gets hotter and 17% when you have to turn on the air conditioning and our secretary of energy actually was in an interview and started founding herself because.
Her staff had turned off the air conditioning to increase the driving range and combat the.
Speed up the charging of the of the car when they start recharging.
To help combat range loss recurrent this is the a a study recommends pre cooling a car while it's plugged in as well as using sunshade your parking in the shade to help reduce heat.
The initial cooldown of a car it takes more energy than maintaining it at a comfortable temperature of the study said this is something we've been talking about for years. Most air conditioning systems are four to six times bigger than they need to be.
Because of that.
Need to make people comfortable and if you have an internal combustion engine.
Vehicle, that's not such a big deal you just run the air conditioning, but when you get into an electric vehicle, where you want more of the car's battery going towards driving it and less towards cooling. It we can reduce temperatures by about 18 degrees Fahrenheit. So instead of getting in the car and it being 90 degrees at 72 before you even turn on the air conditioning. So.
That initial cool down is actually done by our smart glass.
Another question came from Mr. Claire Hutton.
Yeah.
Yeah.
Why is research if SPD film as cost effective commercial and residential building.
SPD film cost effective for commercial and residential buildings and if so why as research frontiers, not experiencing more revenue from that area.
And to answer the question it wasn't until recently that we had film that's available in one five to $1 eight meter width now that that's happened I'm happy to say that galaxy and their development team have landed some pretty big contracts for architectural including some high visibility ones, which al mentioned again in my closing remarks.
Second question for Mr. Hearten, the lucid car has a large sunroof and they were complaining about the interior heat is any research frontiers licensees approaching the OEM about SPD as a solution.
Thank you for your response.
Thank you for your question Mr. Hutton.
To answer your question directly yes.
Research Frontiers myself personally actually have had presentations with lucid and our licensees have also worked with them and.
A lot of carmakers are beginning to wake up to the fact that when they go to a panoramic roof system, where it's all glass.
You need to have an effective way of cooling it and sometimes they forget about it until the mid year.
Or mid model.
Problem horizons, when they get enough complaints and I think youll start to see more and more of that where cars with large glass roof areas.
Are going to.
Need a switchable solution because we have the most effective heat reduction.
Hi.
That.
The trends are pretty favorable there.
Yes.
Mr. Nelson says.
Any new potential usage for SPD identified are exploring.
One of the nice things about this.
Business is that I look at research frontiers, as actually having 250 patents on basic materials and sort of like if you had a patent on stainless steel or titanium people figure out new and interesting uses for it and even just this week we've seen new uses for this in the automotive area that.
<unk> had previously been done so yes. The answer is yes. There is constant work with new innovative activities and of course, the bread and butter like Sun roofs in other areas of a car or a plane or a boat.
Or a building or are out there.
This question came from Mr. Albert you said that SPD pricing as a quarter to one third when it started is that nominal or real and is it cetera or S. Okay.
What he means by that references are we going back to the.
The 19 nineties with the first vehicle, which was et cetera luxury bus by Mercedes or are we going to later on when Mercedes to put this into suite series production in the us okay.
The answer to your question is.
I haven't calculated that the real reduction in cost but.
The nominal.
And when you consider that most of that period inflation was 2% or less.
It really hasnt been that the cumulative effect, but it is the nominal.
Reduction of 121 quarter to one third of where we started with the S. L. K.
No.
A substantial reduction in that's made this possible even mid level cars and people keep asking me are we still on target for the Asian carmaker with a mid level car and the answer is yes.
As we said in today's press release.
What I'll do now is we've answered all of the questions that have come to us by email I've incorporated them into my presentation.
Like to ask our operator Gen now to open up the conference to any additional questions.
People participating today might have that we haven't already covered.
Thank you.
I'd like to ask a question. Please press star one on your telephone keypad now you'll be placed into the queue any order received.
These be prepared to ask you a question when prompted.
Again, if you have a question. Please press star one on your phone now.
And our first question will come from Jeffrey Harvey Investor.
Hey, Joe Hey.
Hey, Jeff.
Or I, just wonder technical asses the big.
Hum.
Installer of Windows with different Laminations I was just wondering if that a company that <unk>.
His approach or is that a potential customer.
We both know them in.
Every glass laminate are out there as a potential customer, but we are now tackling a glass very well and.
As you can gather from maybe some of my earlier remarks that.
The quality of knowledge about smart glass technologies, and what they can and can't do is definitely increasing and a lot of that is because of our efforts to educate people.
In some cases <unk> is perfectly fine for privacy and an interior application, but when you start moving to the building envelope the outside of the building, which is at least 10 times the size of the market.
People are realizing that you need something that actually can reduce seed and actually provide shading and not just light scattering in it.
It's nice to see that they're beginning to realize that there are these differences.
One other thing that I think I.
I don't know if you thought about this but didn't like in the state of Maryland, you're allowed to.
Blackout your side Windows, which I think is very unsafe or policemen.
Right.
On the side Windows, and you could still blocked the sun and yet the placement could see inside the car right.
Some effort to.
Obviously cost.
Compared to whatever film they put on cars I'm sure cheaper but.
Police enforcement thing I think that would be a great alternative to.
Having blackout windows.
100% agree, Jeff and as they as someone who cares about law enforcement.
It's not the safety of the driver that they're worried about with Windows 10, its the safety of the officers during Traffics Xactly and and we've learned we've learned over the years and I tell my kids and my Grandkids Us now.
If you stopped of course be respectful, it's not the place to argue take your keys put it on top of the roof. So they know youre not going anywhere and put both hands on the steering wheel.
And be very respectful.
Officers safety is very important and I think that in an age when you start having more and more side when does become switchable.
Anybody that doesn't unturned there windows when approached by a officer during a traffic stop is going to get approached with.
Maybe a hand on a gun.
And a lot of caution so.
And we could and we could also we could also yes.
Yes, yes, there is and I think youll start to see that onside windows of cars and what you could do in most in Europe , you can do whatever you want behind the B pillar. So it's not an issue there. The b pillar is the area between the front and the rear of the car.
And America, you could do whatever you want on a b pillar in an SUV, which is more than half the vehicles on the road. So we're really you know when.
When you want to get into.
And to the other areas you're talking about.
30% to 40% of the vehicles that are not Suvs on the road and we've had discussions lie.
Our licensees and their customers more importantly, I've had discussions about you know.
What should the regulations look like in a world of switchable glass, where you can now.
Alleviate that safety concern.
Thanks for the question and it's something that we haven't really talked about in depth in the past so I'm glad that you raised it.
Thank you.
Okay.
And our next question will come from Linda.
Investor.
Hey, Joe.
Hi, Lynn.
On the call again today.
I think I just have a.
A couple of questions here are there any real contracts with.
We do too.
Windows on buildings that are there because now we know you don't have to put scaffolding and things outside.
Can do it from the inside.
And with this heatwave, we're having everybody getting done out of shape. It would seem like if there was anything there we would be hearing about it.
It typically soon that's question number one question and the answer to that.
The answer by the way let me just take that is that there are architectural projects in the works that I think will become very visible and very nice for SPD and they use a lot of glass.
I'm, sorry, and then your second question.
The second question is now that you are cutting expenses and things are our Turkey up and Theres other people looking at putting it on I think we're pretty close hit the crossover point.
Actually becoming profitable by the end of this year is that a is that a possibility.
Well I don't want to put a timeframe on it because it never is a good idea, but I will I. Appreciate the fact, you recognize that we've done.
A lot of very continuous cost cutting I mean, if you go back over the last seven years almost every year has been lower expenses than the prior one and you know as I mentioned earlier, our expenses were down fairly substantially again. This this quarter and for the first half of this year and the idea is exactly that the idea is exactly that.
Basically hit profitability sooner cash flow positive sooner and if you look at.
You know that we've been very very careful about how many shares that we've been issuing we also want you know we're planning for a day when the board of directors.
<unk> will declare a dividend for our shareholders. So that we can reward shareholders without them having to ever sell any stock. So.
That's always been our goal yeah, that's always been our goal and.
We've been very careful to do that some of our competitors and I promise people I wouldn't talk about it have done.
You know 60 to one reverse stock splits because they would have over 1 billion shares outstanding right now and.
We've always just felt that you know you'd be very prudent on how you spend money to make sure that every.
Every project makes economic sense, so that you can you.
We and our licensees can make money on this and and achieve profitability sooner. So that's always been our goal and we've been sticking to our knitting and I think you know.
We are well on their way.
Thank you very much we all appreciate that has tackled here.
Thanks, a lot.
And we'll hear next from John struggle Investor.
Hi, Joe.
Hey, John how are you.
Thanks, I've got two questions.
First a couple of weeks ago political blogger changed from global warming global heating a huge jump in the concept.
What's going on in the World last week.
Sorry General Antonio Gutierrez says, it's no longer global warming global boiling given what's happening in the last couple three months everywhere in the world.
<unk>.
Down in South America right now.
Wintertime and temperatures are in the hundreds.
RF.
Yes.
Our Oems are going to have a concerted effort.
Point out that SPD is a wonderful way to.
Right.
Thanks.
Global warming.
Individuals and.
Of course architecture, it certainly be a very big part of that.
Yeah. Thanks, John for the question.
First of all we're all in this industry, because there's environmental benefits to using our technology.
And.
One environmental benefit of course is that we can substantially reduce the heat inside a building or inside of a vehicle. The other benefit is that we're reducing C. O two emissions and that's very important as well. So if you look at the regulations in Europe . They have certain C O two emissions targets for auto manufacturers.
For their fleet of vehicles.
And for every Gram per kilometer that they go above that.
They're going to have a penalty of 95 euros.
The number of cars they sell in Europe , that's quite a bit of a penalty we can reduce C. O two emissions by four grams per kilometer so and that's that's a message that.
Isn't just something recent we've been we've been talking about this at conferences.
For for many years now because I think the data is very compelling, but yeah I mean.
An area also where you have high energy prices.
Conservation of energy becomes very very important.
So in the Middle East for example.
You have a lot of sign a lot of glass.
You want to make sure that you know things are going.
As efficiently as possible.
And our next question will come from Francis <unk>.
Investor.
Yes.
Good afternoon, Joe.
Hey, how are you.
Pretty good.
Oh on the previous call you had mentioned something you don't want to put a time stamp on.
Profitability.
But last conference call you can put a timestamp on.
Shareholder who is getting rewarded in the year 2023.
We still.
<unk> like to see that happen.
Is share price appreciation.
Or dividends.
As of today.
I don't see any wild happening.
So.
To occur in the year of 2020 through.
This should happen within the next quarter correct.
Well, we have we have.
Five months left in 2023, but.
But my point I think is first of all dividends.
We're going to we're going to consider declaring dividends when we have a comfortable cash position and <unk>.
Steady.
Revenue I think that's just a prudent thing to do so I think you know.
Having said that you could probably.
See our expectation that it's the share price appreciation that is the way that we hope our shareholders are rewarded this year and as things become more visible and its people.
Understand.
You know the progress that has been made not only by us and our licensees, but by the industry itself and understanding the differences between different smart window technologies, I think youre going to start to see you know we rise to the top so we still have an expectation.
And we've always operated the company for the benefit of shareholders.
Yes.
The only way I could see that occurring as if there were major announcements made.
But I can never predict yeah, I can never predict what is going to move a market in our history. We've had minor announcements that moved our stock a lot and major announcements that didn't.
The only thing I know how to do is focus on our business and everything else will take care of itself.
Okay. Thanks.
Thanks, a lot.
As a reminder, if you'd like to ask a question you may signal by pressing star one on your telephone keypad now.
And we'll move to our next question from Jared Albert Investor.
Hey, Joe.
Hey, Jared.
I had a.
A single question is kind of an orientation question.
So let me let me just set the set the stage for the question which is back.
At the annual meeting.
The identified synergies.
Bigger, which turned out to be a good prediction and the goal was to get SPD into those systems. So you get the price down and.
And then went into Mercedes has proved to work through and it just came out of Mercedes and the thinking was that it was price and just kind of the difficulty with Hitachi and now and then <unk> came on board and has taken them you know kind of whatever their timeframe was but they've been able to pass the OEM level testing the FERC requires.
So this is maybe 3000 cars a year with fairly I'm guessing surety wide margins, but <unk>.
Probably given the experience with light with light generally proud we really wanted it to work they didn't want to go through that again, so right now so that so that's the stage. We're at now as far as I can tell and.
And we know that the EV nine was shown in the Investor presentation last March with side Windows that were called Smart glass, we know who is an investor in <unk>.
And we know that the.
<expletive> is coming out at the end of the year, presumably and I assume it's <unk> S. P D.
So my question is having kind of opinion this thing through three waves in production.
For three years through film, which I'm not going back to the Newpage chemical boardroom and 1988 I'm talking about film production, where it could be put on rules and shipped.
Now you haven't mentioned, one day and I am concerned because the grander was going to be like the big model that maybe you don't want to mention it but the point is.
Is are we now at the stage.
Where SPD is going to go into.
Cars, and we're going to see a revenue ramp.
Or are we still kind of stabbing around in the dark.
Well, we can only get into the Super high end vehicles.
And despite price reductions and everything else. There is some other issue. There's some optical clarity issue. There's some adhesion issue there or something else because what I have seen is the backdrop to this is now being driven by high temperature PD L. C. They.
They had been able to come in we grew system to survive on horizontal surfaces and absolutely.
Just penetrate this market all the way down to cars that are in the thirties.
We've seen the ambulate product know granted that hasn't yet shipped outside of China, and Vietnam, but zika is going to start selling the product in England.
And I don't know if that roof systems on there or not but the point is if theyre starting to so in markets outside of China. They have a competitive product at this point.
So.
That's my open ended question PDL seem to be the pioneers with arrows in their backs.
And then they are often the idea to switchable glass for the mass market, but it seems like now is the opportunity to come in with a better product.
At a reasonable cost.
View is crashed and burned.
<unk> totally distorted pricing market.
I assume SPD still too expensive for architectural but the idea was to go into.
You should get the price down okay.
That's my question right now yes.
Actually.
Okay I did I did.
In our press release today, and I think earlier, you talked about an Asian manufacturer and I think that you know that's about as far as I can go at this point. It's always I did mentioned that you have to let the customer go first but take a look at what's going on around you and I think it's pretty clear. The I think your question, though it sets up a really great.
Scenario here, which is.
There.
There is a greater awareness of switchable people have tried cheaper PD L C.
Yeah, it could survive, perhaps although our.
Our experience in automotive testing is you really it's a very very vigorous environment and they may think that surviving and the fact that some of the people that are putting these in and I think this is maybe an interesting takeaway. If you think back to what I said earlier in the call. There's two to three manufacturers that are using a different.
Switchable technology that are actively and seriously considering switching you know you have to ask your question. The question why would they be doing that.
And I think the answer is whatever it is that they're being promised whether it's cost or durability or performance or just not happening.
And then you have us where our costs have come down we've talked about it in your question was an excellent one that your email then.
And.
You have performance that has been proven.
And you have adoption, that's been expanding and I don't really think PD L. C has made great inroads I mean, they they got into some visible vehicles, but not in high volume and the fact that these vehicles are considering changing tells me a lot of what I need to know so yeah. I think you said that the.
Right that this is a.
A nice time in our history, because there is greater awareness there is a great need there'd been some mistakes made by competitive technologies and by automakers using it and they are beginning to realize it and starting to remedy it and that's where we come in so as I said earlier.
I'll be surprised if.
If the placeholder as the other technology in the way you're satisfied as SPD.
Let me ask you just to follow up if in two years, we're listening to these kinds of conference calls and we switch seats would it be time to get out because there's clearly if for whatever reason, we're just not getting the adoption that we need given the incredible tailwind to switchable glazing is experiencing in sun roofs right now.
I expect two things to happen in the next two years.
I think there is going to be a shakeout in the industry.
Some people that are here now are not gonna be here, even six months from now.
There is going to be a shakeout and technologies because as the limitations of certain technologies become better known and sometimes it's by trial and you know.
Underlying error.
You know people start putting that in and I think Ferrari is a great example of this Ferrari had a single band electrochromic roof years ago, and it was a disaster for the Super America.
And.
Now for Ari as an SPD roof, Mercedes had a PD L C roof years ago.
And they switched to S. P D.
Got it.
Now they have nothing well theres still sales going on.
Of Magic Sky control, but it's mostly out there an existing vehicles. So.
You know what you have is.
Constant education, so on the one hand, you're going to have technologies that are being tried now that are gonna be proven not to be good.
If you go onto the Ambulate website for example, and I'm not going to.
The trash them, because there's no real data on that site, but if you go on their website and look at the samples that they're showing these very small samples of amber light.
And look how dark they get.
That's not going to move anybody's needle in terms of heat rejection or light rejection or glare control.
Yeah.
Russia on the envelope that I am I mean, they could turn it to 11 and it would be basically agree for at a very light setting no I understand all that and yet they're selling.
Oliver Chen Okay.
That was that was my question at.
At this point.
Two years two years each.
Yeah in two years, I think that youre going to see some major changes in the industry I think also you're going to see.
Some of the strong players get even stronger and stronger and when that happens you know Katy bar the door as Bob Saxe I used to say.
Alright.
Okay. Okay, great. Thank you.
Alright, Thanks you.
Fair question. Thank you.
And we'll move next to Investor.
Yeah.
Hi, Joe what Brady here.
Hey art.
So.
In the past.
And at certain of the annual meetings, you used to have a display by Lincoln.
On the Lincoln cars and I'm wondering what the status is we never hear a word about Lincoln are we still talking to them or is there.
Uh huh.
We are and we're talking to their parents.
And we're talking to their competitors in the U S too.
You know and I think that.
With every car manufacturer, there's a continuum of when things get introduced in where they put it just like Mercedes put it on the S. Okay first because that was the car that was ready that needed. It first even though the S class would've been a more logical first choice for them.
Right. So you have to look at kind of a whole panoply of reasons why in our manufacturer put something in or not in Lincoln's case, we're very honored to be put into continental when they were trying to rebrand it.
Hey, just.
You know for whatever reason and I don't want to do.
Go into more detail weren't able to get their act together in terms of series production and I don't think it was because of us.
At the time that doesn't mean that you know things have been vastly improved words mud.
Much easier now to get this into a vehicle because if you think about it.
Back then you had one manufacturer that we've had it in series production now you have at least three laminate or is that or doing it actually for so.
It's much easier to get this into series production SPD that is.
Now that you have four major players that have experience in cracking the code on getting SPD into series production.
Andy.
Timeframe as to when we could hear some kind of an announcement from that group.
Not that I could share.
But that Sean.
Yeah.
Remember, it's up to the customer to speak first.
And sometimes you know.
They'll allow us to say things on social media, but not in press releases, sometimes they'll allow you to say something on a conference call, but not in our press release.
Yeah, they have their reasons and we respect them.
But there is some communication continuing.
Yes, there is very recent as a matter of fact.
Because.
Another question that I have is.
It's so hot.
<unk>.
Is that your phone should be ringing.
Constantly.
In that regard and if we cant shows.
Tangible.
With this kind of an environment I don't know when we would have a better opportunity.
Well I think it's yeah, and I and I. Appreciate the question Art I think you know it's not only our phone is ringing off the hook, it's our licensees to and that's good and remember they have a lot of phones there because all of our key licensees have expanded dramatically their business development and customer service teams.
So.
And remember I said look at where people are hiring okay with it.
The regions of the World and look at the industries are hiring for and you'll see.
Pretty clear picture of where things are going yeah, and you know I did mentioned carmakers that are you know additional carmakers.
That are coming on board with multiple models in some cases for S. P. D. I mentioned an architectural initially.
Initiative that is bearing fruit. So all these things are happening.
Okay. Thank you.
Thanks, a lot art.
And once again, if you'd like to ask a question. Please signal by pressing star one at this time.
And well move to our next question from August Berman Investor.
Good afternoon, Joe.
Hey, Doctor Bourbon how are you.
And I know I always get a laugh out of it when I say that because you are.
You were an impressive, but but I know personally modest person that I know that I could get into reaction out of you when I do that.
Got it I appreciate it.
Okay.
From me.
Thanks.
The conference calls.
There was a mention of aftermarket storm reserve.
Yeah.
Hello.
Out in 'twenty.
Yeah their audio broke up a little bit, but I think your question is it still coming out and the answer is yes, and that's something that we're very excited about because it totally transforms the way that smart classes delivered to a building you don't have to put up scaffolding you don't have to get landlord approval, just a whole panoply of benefits from doing that.
And also it gives you this very big market because a lot of the government buildings have initiatives to increase their energy efficiency, but they have monolithic glass its not even laminated glass anymore. So if you can.
Tap into that market and create a super energy efficient.
Window. The government you know being on the GSA schedule is a huge huge market.
Okay.
It's going to be coming out in 'twenty three.
Great.
We haven't we haven't put a timeframe on it I don't see any showstoppers and why it couldn't come out tomorrow, if it needed to.
And I think that we're all we're all pushing for that because I think we all understand that in the architectural market. It's a game changer.
Yes.
Okay, and then you had referenced that I think you mentioned TM versus kind of like we're interested in bringing additional model.
<unk>.
Is there a period of time, we're kind of like what's the <unk> want to see the first can you give us again to another vehicle.
Can I ask you this because I had my sights set on the.
Escalate Ikea coming out next week.
Vehicle that seems.
Great point and that would be awesome function to add.
So anything you can jump in.
Yeah.
It would be an answer it would be an answer of function for the escalade. It probably will be an awesome function in the escalade it probably won't be next week when it comes out but.
You start getting penetration on different Suvs out there because remember Suvs have a lot of glass and you also have more flexibility because the requirements on an SUV or different than on a passenger car. So you know it's.
It's a little bit more relaxed in terms of tense on let's say side windows and the back and things like that as well.
So yeah, I mean look we're going to we're not stop we're not stopping with what we have let me put it that way.
Okay great.
Thanks, Joe Thanks take care.
And our next question comes from Thomas Investor.
Yeah, Hi, Joe are you there.
Hi, I'm here, Hi, Joe Hi, Joe, Yes, you mentioned the expected Asian car at least one maybe more than one or last conference call. This conference call.
Is that can you speak to if that's an easy of gasoline and is it mid priced I know you're not releasing what car.
You'd be able to share something on that.
It has a mid price and it has a luxury edition and.
In terms of.
I C E versus EV.
You know I think it's it could be on both depending on how the how it sells.
Not our feature but the.
The drive train itself.
When you say it could be on both but not our feature you're saying not SPD <unk>.
No no no no what I'm, saying is and thanks for clarifying now what what I meant to say and I apologize if I wasn't clear is.
It can be on both.
Both in I C E D V.
Okay and Theres no reason why it could be on one and not the other.
Whether they choose to introduce it on both as really a business decision on how the cars.
The I C E versus the E V is selling for that vehicle for that model has nothing to do it has nothing to do with S. P D being.
Better or not it's it's good for both.
So I see yeah, yeah. It's.
Its nothing you could say, it's definitely going to be one or the other could be both but when you say expect and you're confident it's going to be a mid price Asian car.
Well, one or the other or are you just not sure at this point or.
I'm confident it's going to be a mid priced Asian car and I think that.
It's up to the manufacturer and they may not even decided yet what the blend is between EV and IC E on that vehicle.
Okay. So it sounds like I cannot say, saying, it's going to be at least one either ice or even it could be both that's what's exactly yeah I'm I'm confident it's going to be on the vehicle. The question is what are they going to put out first and.
And I don't yet and they don't know what either.
And then we're thinking for timeframe. The models are being released in late September and do you have an idea on on November October or any idea on timeframe when we might hear anything not that I could share that.
I thought I could share I'm, sorry don't want some history. When cars are released or what are we looking at for months, usually yeah from your past experience.
Every every carmaker has a different kind of introduction schedule it used to be a little bit more rigid. So you knew for example, when Mercedes was doing their mid mid model changes and things like that now its pretty much across the board and I think one of the things that kind of change this a little bit was the.
The Tesla model S is still the Tesla model S and what they've said is you know if we have a.
And improvement that we want to put it in that vehicle and its Freddie today, we'll put it in today. If it's ready next month, we'll put into next month and if it's ready next year, we'll put into next year, so they've kind of changed.
Change the way that automakers think about upgrades on the vehicle to be almost like a continuous improvement, which I think is a good thing I think it's a good thing that you know I mean, the marketing guys may like the fact that they had more predictability as to when new features that are coming out you know if you're selling a car, but I think that for the consumer.
You want the car that you go to the dealership to buy to be the best it could be at any given time.
Last couple of things on this.
You used the word wording as expected can you give like a.
Confidence level, you're talking 99% or 80% and also you think an option or maybe a trim package I know, you're probably saying you don't know, but anything you could share on these two questions.
So you kind of have.
A continuum here also something can be quote an option.
But beyond 80%, 90% of their cars for example, sun roofs.
Alright, and over 80% of premium cars.
It's an option usually why because the carmakers make more money on options and they make on standard equipment.
Right.
So that's so it has nothing it has nothing to do with what you'd expect kind of an economic decision would be made it's more like what is the carmaker going to make more money on.
And then the other one last one qualifying the expected can you get into that a little bit on we're talking 99 or 60% do you have any thoughts on how constant at that level is.
I'm very confident but.
No.
I've seen things that look like there is certain to happen in the Continental for example was a very good example of something that I mean, you had the.
CEO Ford going on CNBC.
And talking about our smart glass roof.
Key feature of the car and it didn't make it into production.
So you can be 100% I mean, you know to the outside observer, if I saw that I saw mark fields say on television Hey, This is the greatest thing since sliced bread and wherever we're really excited about it and then it doesn't make it into production you know you'd never 100% certain about anything.
Yeah, Yeah, I'm, sorry, that's all right with that said it sounds like you're pretty confident they're either 90% or something in that realm of confidence.
I'm very very very very how's that for various without putting a number on it confident yeah. Okay well. Thank you for taking the questions.
Sure My pleasure, thanks for asking it.
Your next question comes from Arnold Kornblut Investor.
Yeah.
And Mr. Kornblau Your line is open.
We're not able to hear you Sir.
New function can you check to see if that's engaged.
And just a reminder, if you'd like to ask a question. Please signal by pressing star one.
Okay.
And Mr. <unk>. It appears there are no further questions I will turn the call back to you for any additional or closing remarks.
First of all as a reminder, if we didn't get a chance to get to your question or if you feel we haven't fully answered it feel free to call or email us we're happy to do the best we can do to.
To make sure that everyone gets their questions answered.
The closing remarks.
First of all as you can tell from the lead into this it's been a very exciting year for us.
Part of that excitement is.
The success, we've had that people know about and part of that excitement is what's coming.
And.
Let's talk about what's coming what will the future bring.
Certainly continued penetration in our two largest markets automotive and aircraft.
It's something that we have very good visibility on.
Yeah.
And the.
The way that this progress is happening is also very important to understand.
In automotive, we know about Mclaren Ferrari Cadillac and the Asian automaker coming out with SPD <unk> panoramic roofs in their vehicles.
In addition to them today as I mentioned, two new automakers, besides them and therefore car models as well as a reasonable expectation in another two to three automakers currently seriously consider switching from an alternative switchable glass technology to S. P D.
Sure.
We're clearly seeing the benefits of switchable technology being better understood by the automakers. We're also seeing that theyre getting more aware of the strengths and the limitations of different switchable technologies.
And as the best performing smart glass technology with proven durability.
In a very stringent requirement that it would be on the heat collecting roof of a car.
This will help us continue to win more business in the future in automotive.
Another item some pretty exciting architectural projects with high visibility are in the works.
And the way that decisions are being made its evolving for our benefit as well.
We spoke about more educated decision makers.
The other thing to understand is the locus of that decision, making is also changing for our benefit.
For example, in some industries the manufacturer's called the shots.
However in others, it's the customer who makes decisions.
If the manufacturer allows them to free will to do so.
So we want to do is you want to make sure that the customer is able to make a decision because if you see S. P D compared to anything else out there and I'm not just bragging and it's what we've been told it's there's no comparison.
So letting the customer decide what they want is important and in an area where.
Where the customer makes the decision.
But here too for its been the manufacturer that might be preventing that from happening clearly.
One. Good example of that is the airline industry.
And when you start to see airlines themselves. So not just the manufacturers decide on aircraft contents and configurations.
You understand the important sea change that has already occurred.
So stay tuned for a little while longer here, there's approximately 150 airlines out there and they're competing with each other using the passenger experience primarily to win the business and to distinguish themselves from others.
Research Frontiers, our licensees and most importantly, our investors will all benefit from all of this.
And I look forward to sharing these developments with you and thank you all for your support and encouragement.
Yeah.
This concludes today's conference call. Thank you for attending.
The House has ended this call goodbye.