Q3 2023 Research Frontiers Inc Earnings Call

Good afternoon, ladies and gentlemen, welcome to research Frontiers Investor Conference call to discuss the third 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 open 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 Dot smart glass Dot com.

And we 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 $19 95.

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 S. E C.

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 E mail to at Pryor.

To this conference.

To this conference call excuse me either in their 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 answered.

Has been Skus me 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 two.

Also we ask that you keep your questions brief in the interest of time.

I would now like to turn the conference call over to Joe How Ari President and Chief Executive Officer of research Frontiers. Please.

Please go ahead Sir.

Thank you, Paul and Hello, everyone and welcome to our third quarter of 2023 Investor Conference call.

First let me start off by saying a number of our shareholders have asked about galaxy and their safety and business with the war going on in Israel.

Some of the questions to date has Israeli war with Hamas impacted gas these business operations in any significant way.

Please comment on the effect if any of the war in the Middle East is having on <unk> operations in Israel is gassy currently producing and shipping SPD film coating to their plant in Germany.

Galaxy is worldwide locations, but can it continue to function effectively if its headquarters is located.

Location is seriously impacted by conflict.

Well first of all I want to thank all of you for your concern in El Paso, and I and everyone. At Gallagher you really appreciate the messages enquiring about their safety.

Fully everyone is safe.

And while I'm horrified by the situation in Israel, and see things happening in the world that I never thought I'd see in my lifetime or ever.

I can report that galaxies operations have not been interrupted by the war there of course, they pay attention to it how can one not do that.

Good entrepreneur must factor in things like resources and competition and Israeli entrepreneur has a whole different dimension of things to add to that normally and especially right now in Calgary has been incredibly busy both before and after October seven.

And they've been admirably admirably, Jud dream juggling work and family safety and doing it with very calm determination.

Everyone pulls together in normal times, and especially now.

And they know they have investors and employees and customers and they are depending on them.

We've been working with them daily and things appear much closer to normal than one would expect.

As a matter of fact, the only reason he all peso cannot be on this call. Today is that he has a pack business schedule and that should give you an idea about business pressing on even more time.

But once again, thank you and on behalf of the Ali asked me to thank everyone for their <unk>.

Good wishes and concerns.

The Tesla cyber truck was announced in 2019 with production slated for late 2021.

Reports now indicate that production will start in November 30th or this year 2023.

When the first prototype of the cyber truck was demonstrated at the launch event my friend Franz von <unk> thousand Tesla's chief designer through a metal ball at the bullet proof glass and it correct.

When I first met Alon Moskin person it was that the model S concept launch event in New York and prior to that Tesla was making the Tesla roadster.

The body being produced by Lotus out of fiberglass.

And another in person meeting Alon Musk was trying to figure out how to produce 10000 cars a year.

Well in 2020 to Tesla produced 1.3 dollars 7 million vehicles, which was a 47% increase over 2021 and in 2023 Tesla is expected to produce and sell around $1 8 million vehicles far more than the 10000 they were originally.

To figure out how to produce so what do all these things tell us.

That if you're in the automotive industry, even the most capable players don't always get it right.

At least not right away.

And sometimes there is technical issues like the glass on the cyber truck prototype, which incidentally was not our smart glass at the time.

And sometimes it's timing issues as shown by the multiple blaze and the introduction of the cyber truck.

But for the most part a company that had never produced the car is now the dominant player in the electric vehicle market with the highest margins and volumes.

In other words things get done and they often get done in a big way.

But rarely on schedule and almost never in a straight line.

This is the world of the automotive manufacturer and its also the world we live in.

We are told Timeframes and sometimes they're delayed as witnessed by the first car to use our technology.

Okay convertible roadster, which was five months overdue.

Once again, not because of our glass by the way.

And sometimes things are ahead of schedule DSL convertible came out with our glass and it was ahead of the target date.

And sometimes marketing plans change just six months before the launch of the Cadillac Celestica at CES that has the project did not know when it would be launched and when it would be announced.

It came out six months later with much fanfare.

So we do our best to operate in this environment and we've tried to strike a balance between providing guidance when we can do our shareholders.

We're simply waiting for something to happen announcing it afterwards, so there's a balance there.

And many people, including myself and our licensees were disappointed to learn that in Asia and mid priced auto manufacturer has decided to move back the introduction of its special luxury addition for the first half of next year.

We share what we know when we can.

And often it is just what we were told and in the World. We live in it's not possible to thread the needle in terms of timing.

So there is that balance and.

The Asian automaker has moved the timetable back.

By about half of the year, but.

It is still on track there.

Fortunately, we plan for such contingency contingencies to make sure we're not going to run out of resources before anticipated events happen.

For the past 37 years, we've been debt free.

We have been successful at raising capital long before we may need it to keep the number of shares outstanding relatively low compared to our peers.

For the past eight years, we've been constantly focusing on reducing operating expenses.

Some of our competitors are not so fortunate or successful at achieving the same thing and we're rapidly running out of cash.

While they may measure their cash runway in terms of weeks, we have over five years worth of cash and continue to be debt free.

View is trading pre reverse stock split at less than a nickel per share.

And cracking is that less than half a penny.

At research Frontiers, we don't want our shareholders to have to speculate about whether our technology will make it out of the lab and into the real world.

It is already done that in multiple industries.

We don't want our shareholders staff to speculate about whether the technology will be high performing and reliable two qualities that are essential in any upscale market.

Mercedes and then Mclaren and then general Motors and then Ferrari all have proven this in serial production.

Airbus and Boeing and numerous other jet and turboprop and helicopter manufacturers are also proving this.

New products. In addition to the manufacturers I, just mentioned will be coming out.

Since our last conference call, we added yet another auto manufacturer project. This one is from North America.

Now as a caveat. So this new project do we have an estimated timeline in volumes yes.

Will there be a straight line towards commercial production on that timeline maybe.

Maybe yes, maybe no.

However, our long standing experience in both this industry and this industry has taught us to plan for both things coming out ahead of schedule and things coming up behind schedule.

Let's go to the numbers our fee income was up 46% for the first nine months of this year.

The motive income was up 81% in Q3 2023 compared to Q3 2022.

For the first nine months of this year automotive fee income was up over 120% from last year.

Ferrari has shown healthy growth in sales each quarter of this year, so their new pure segue.

Our net loss is substantially lower and we're looking forward to becoming cash flow positive and profitable by executing on our business plan.

We expect revenue in all market segments to increase as new car models aircraft trains and other products using our SPD smart glass technology are introduced into the market.

And with that I look forward to answering your questions and we took some of them that were emailed to us and included them in my presentation earlier, here's some additional questions that were emailed to us.

And in some cases I'm combining several related questions into one.

John Nelson It asks in the markets that the film is sold into which markets sales are growing fastest quarter over quarter and year over year.

Clearly automotive followed by aircraft and we expect architectural to become more significant in 2024 and later years.

Another question by Mr. Nelson any potential new markets that are fr plans to move into.

Well I'm certainly excited about our <unk>.

Bread and butter industry growth prospects more cars.

Trains and planes.

The traditional usage as far as non traditional markets I'm, particularly excited about the use of SPD with transparent OLED technology for displays.

And alternative areas of the car to the sudden moves such as headlights heads up displays in Sun visors.

And then Sun visors, both as an attach pfizer or built into the windshield.

I'm also excited about some of the new projects for SPD Smart glass in architectural and there we believe its going to be both in retrofit and new installations.

I think that's going to be very significant.

Next question given the slow sales of Evs and no announced adoptions the market for SPD may not be a high priority considering say Ford is losing $40000 a vehicle.

The market is slowing down as the lack of interest stems from the lack of charging stations.

Coupled with the auto strikes I presume the royalties from the auto sector are now pushed out further.

And also why have we not heard about any architectural wins well. Thank you Jeff for that question.

First of all based on what's in the pipeline I expect architectural projects, both new and retrofit in 2024.

And I don't think the UAW strike affected us at all.

In Europe and in Asia, and the strike is also basically over now and things are returning to normal rig.

Regarding Evs I think a lot of companies were caught up in the EV development momentum and did not fully realize the economic and technical technical challenges.

I don't think that will help us however.

It will affect us however, I don't think its going to hurt us.

First some companies like BMW and Mercedes.

And Tesla have a leg up on other traditional car company is trying to make Tvs much higher margins than let's say four.

Also the same five 5% increase in driving range for Evs applies to increase gas mileage for internal combustion engine vehicles.

And as also added in Ice's four grams per kilometer reduction in Cotwo emissions.

It will be fine either way.

I mean, there's even an argument Jeff that.

If EV slowed down youre going to have to do more to reduce C. O two emissions through.

The reduction techniques of using things like smart glass. So it may actually help us although I'm not rooting for a reduction in Evs I think summer very good vehicles and some have challenges that eventually it will be overcome.

Next question LG is introducing multiple models of transparent OLED for commercial and residential applications I would think that any used in windows and in outdoor sunny environment. We need SPD do you have any ballpark estimate as to what percentage of these different markets might use SPD.

Thank you.

That's why I agree that anytime a transparent OLED OLED is used outdoors or with daylight behind it such as turning the window in your home into a TV or putting it info on a vehicle window like BMW spoke about at CES This year with there.

<unk> smart glass equipped car.

They demo then.

Highlights at Oliver Gypsies, keynote address youre going to need SPD film anytime there's daylight behind display I think youre going to need it.

I don't think anyone can predict today, including LG the penetration rates, there, but I think that the markets are enormous.

And I mentioned earlier, it's one of the new markets for SPD that I'm quite excited about.

Another question Hi, Joe in the Q1 2023 conference call you talked about retrofit SPD windows.

Quoting me, but we have a very well established mature well capitalized licensee that has developed their own retrofit solution for architectural and we see that as being a game changer for architectural SPD smart windows too.

And then in Q2 I'm quoted as saying.

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 we're all pushing for that because I think we all understand that in the architectural market. It's a game changer.

Well. Thank you Rick for the question as I mentioned earlier. This is one of the new emerging areas that I'm quite excited about and expect retrofit architectural applications to come online next year and just to kind of maybe put a little bit more detail into why I think it's a game changer right now.

You either have to take out your glass and put a new glass, which.

In our residential application for home is not that big of a deal but for building.

Our multifamily unit, which is the primary of four <unk>.

Smart glass.

You'd have to put up scaffolding, if you're in New York get landlord approval in all sorts of things, so being able to retrofit it from the inside like the system. We have allows us to do I think is definitely a game changer and would substantially reduce the costs and <unk>.

Simply allow a building to be retrofitted, perhaps even over a weekend.

When there's nobody in the building, it's an office building.

Another Jeff asked.

Four questions. We've answered three of them is the fourth does.

<unk> management believes the company website is adequate and upgrading with fresh content in the new design is unnecessary.

Well thanks for that question Jeff.

Business to business company. So while websites are important it's less critical than if we were a b to C business.

And then I am sure some differences of opinion.

Some of the automakers, we work with actually have complemented us on our current website.

So I don't think it's affecting sales and <unk>.

Where to go and they want to get the best switchable glass, but having said that.

And to put this in context and 1995 when the Internet was first becoming commercialized we saw the potential.

In 1995, there are an estimated 23500 websites in the world.

We were one of them.

And I actually had to learn HTML coding because the current tools for web design just didn't exist back then.

And today there is over one 5 billion estimated websites around the world.

Over the years, we've gone through multiple evolutions of our web site and while it may not be an immediate priority I am sure we will upgrade it.

While opinions can differ on our website, there's always room for improvement in everything we do so something that we will probably focus on.

Next question.

The lucid car has a large sunroof and I have read that they are complaining about the interior heat.

Has anyone approached research frontiers for a solution well. Thank you Mr. Houghton for that question.

Yes, we actually have an ongoing project with lucid to help them with this.

And we're seeing heat buildup inside the vehicle is becoming more and more of a problem in need of a solution, especially with panoramic glass roofs.

Becoming more common.

And if you just go out there and look at the blogs, you'll see a lot of people are complaining about a number of different vehicles that have massive heat buildup.

I remember there was a wonderful video actually when the Mclaren first came out.

The automotive news reported that was doing the test drive did a video and he was talking about how the prior version of it like sitting in a microwave oven, but how cool the SPD smart glass was in that vehicle and how cool to the touch it was.

Anyway today, we've discussed a lot of exciting topics and I'll now ask our operator, Paul to open up the conference to any additional questions.

Participating today might have that we haven't already covered.

Okay.

If you would like to ask a question. Please press star one on your telephone keypad now.

You will be placed into the queue in the order received.

Please be prepared to ask your question when prompted.

Once again, if you have a question. Please press star one on your telephone keypad now.

And our first question is from France. This court Teva.

Your line is open.

Good afternoon, Joe.

Hi, How're you doing.

Pretty good last conference call you mentioned that the shareholders are going to be greatly rewarded.

This particular 2023 do you stand by that statement.

Well the timing is obviously off our stock is down and as a shareholder I don't.

I'm not happy about that because my net worth is tied up in this company.

Macquarie, but I do I do think that part of this was the delay in the Asian vehicle that we were expecting to have happened in the fourth quarter.

<unk>.

Like I said.

We take ownership of that.

Yes, with all the uncertainty why would you make such statement Joe.

Because we were told.

We were told that that would be the timing and then we were told at the timing changed.

That's the nature of the automotive industry.

But it's the nature of the CEO to present themselves in such a case study doesn't bring all that together for all the shareholders don't you agree.

That's a fair point.

Like I said, we do the best we can with the information were given.

I mean, the the alternative is just wait for.

Everything to happen and announced that after the fact, but I think that a lot of people would prefer to get at least a sense as to the directions that we're moving in and the progress we're making.

Yeah.

Okay.

And I was Ryan I'll admit.

It was a judgment call and I was wrong on that one.

Thank you.

Thank you.

Yes.

And our next question comes from John Nelson.

Your line is open.

Hi, Joe.

Hey, John.

By the way.

Sure you renewed investment in the company.

Well it's.

Talking about.

Potential shall I am.

Feeling feeling good about my investment in research frontiers.

The press release states that.

Fee income during the first nine months was up 46%.

Just as last year.

Nine months last year.

And then Ian count for the third quarter was up nine.

<unk> quarter.

<unk> to last year's quarter.

Why.

Why.

What accounted why the difference.

Yes, a lot of it is timing I mean, when you're comparing quarter to quarter there could be specific events in one particular quarter last year that where there was a blip up and when you take a longer.

A period of time like nine months versus nine months, you get a little more smoothed out and that's why.

Automotive income was up substantially for the nine months.

Okay.

And also as I mentioned earlier I think.

You started to see Ferrari really kick in.

With.

With good growth in the adoption of SPD.

Okay.

Thank you.

Thanks, a lot.

And as a reminder, if you do have a question. Please press star one on your telephone keypad now.

And our next question comes from Brady.

Your line is open.

Hi, Joe Grady here.

Hey.

Yeah.

Can you give us a little picture.

When the actual billings would start with LNG.

All of our license agreements have a provision that the licensee typically pays US 45 days after the end of the quarter.

In which a product is sold.

So.

There may be products sold as part of the development process and things like that but the real numbers come in when it hits the consumer markets just like automotive just like aircraft just like architectural.

So that would mean.

Maybe.

Early January.

When they decide to introduce the products, that's when you'll start to see.

Revenues kick in and I understand there's also a lot of license fees.

Have to achieve a minimum royalty before you see additional income.

<unk>.

They would have to exceed the minimum royalty for the year before you start.

Being accretive new income so.

Just to use numbers, if somebody out of $100000 minimum royalty that means and a 10% royalty, let's say for automotive.

You only see new revenue come in after they've achieved the $1 million and sales of product.

Which would generate a $100000 in royalty income then.

The next dollar after that generates another additional revenue.

Okay. Thank you.

Thanks, a lot art.

Okay.

If there are any final questions. Please press star one on your phone now.

And we have a question from David Pear diesel.

Your line is open.

Hi, Joe.

Hey, Dave I had been a sure I've been a shareholder for 29 years now.

Still waiting.

And given that the price of the stock is where it is I'm concerned once again about de listing can you talk about.

The timing of when <unk> could be delisted and ramifications and all that.

Sure so.

First of all I don't expect it to happen.

And I don't think we're going to have to do what our two competitors did with the 60 to one reverse stock split just to get their stock over a dollar.

And one of them is already drifted down and got another delisting notice but.

Yeah.

You know typically the NASDAQ rules require that if you trade below a dollar for a certain period of time, then you have 180 days to come into compliance and trade above $1.

And if that doesn't happen typically theres another six month period that is granted.

And usually what companies have done is do things like what viewing.

Crown did which is reverse stock splits to try to get their stock above the dollar.

I don't expect that to happen I think we're kind of in a.

A period, where there hasnt been any news and im pretty confident that there will be good news.

Well within the timeframe I just mentioned so I'm not at all even thinking about it.

Okay. Thank you.

Thanks, a lot Dave.

Yeah.

And our next question comes from David Forster.

Your line is open.

Actually it's Michael Forrester, if you can hear Michael Forrester, Hey, How're, you doing Michael I apologize Michael Force.

In regard to.

We had two suppliers to the film Galaxy for one and Hitachi, which I think sold to us its interest.

Is there a problem in getting people to adapt the SPD technology because of a lack of multiple suppliers.

No.

There's more to the Hitachi.

Sorry, which I think people will be pleased with when they hear about it but.

But no we haven't encountered that what the automakers, especially where they'd like to have multiple suppliers have been focusing on is on multiple sources of lamination.

But do they have a glass laminated or that.

Which is the person that's at the company that sets the price for the automaker.

For things like Sun roofs, it's having multiples in that part of the supply chain that has been important and we have basic.

Basically the who's who of the auto glass industry license so.

The automakers seem very comfortable with everything in this recent North American project.

We went through a good list of potential licensees to supply the project and they were all companies that the.

The automaker.

Welcome working with so that's been fine.

Well.

Well you brought up at the beginning.

You know problems in Israel right now.

And I'm just it strikes me that if its realistically that go out and see as the only producer of volume of scale there.

As a limit on what Lz concurrently produce and maybe they haven't hit the limit yet but is that a barrier do you get that feedback from them.

<unk> customers.

No.

I know, it's a it's a fair question, though.

So let me delve a little bit deeper into that.

That.

Maybe give people some comfort on that <unk> actually has locations throughout the world.

It's not just in one place.

And.

They also have multiple locations even within Israel.

So <unk> got God forbid something happened to their.

Our main facility in Tel Aviv, JASO and I've seen.

The iron dome at work and it works quite well so it's a.

A low chance in a populated area like that of.

Something striking but even if it did theres a facility not 10 minutes away that things can be moved too and then there's also facilities in Germany and other places that can can houses so.

Unfortunately, the light the world they live in.

You know involves contingency planning that we don't have to do in New York.

At least right and thankfully not right now so.

So.

It's very much part of their strategic planning too.

To be able to deal with situations like that.

And another.

Sure.

Yeah.

You know you've talked about the reduction of costs primarily <unk>.

Administrative or internal.

And I at research Frontiers.

Yeah at research Frontiers.

The other focus on cost is that the end product side in there we've gotten the cost of the SPD film to a fraction of what it was in the beginning.

Well.

Ill preface my question with I understand you have contracts with various licensees and I presume.

Correct me if I'm wrong.

That a typical provision is that the licensee gets that treat cheapest price that's offered to any licensee.

Now or in the voucher.

Oh no.

No. There's no most favorite is no most favorite nation provisions.

But you know.

With volume you get discounts.

And if somebody is.

Developing a large use of SPD film for example, they'll get a better price I'm sure from Gal Z than someone that's doing a couple of.

Windows.

Well our.

Return as I understand it is typically 10%.

10% in automotive, 15% in the other markets.

Of the and that revenue in that regard if we offered you know 95%.

Two a big buyer.

So that it increases the use of the product in gets other competitors of that buyer.

<unk> competing.

Has that been considered as a way of even though we lose some revenue.

It's certainly been yes, yes no.

I mean look.

And that's an excellent question.

Maximizing revenue because we get paid based on revenue.

Is positive for research frontiers, so going from let's say, 10% to nine 5%.

If there was huge volumes and a product that someone could commit to.

Is definitely something we've considered and discussed.

The issue, though is that.

For that to happen the licensee has to commit to large volumes.

And for that to happen there automotive customer has to commit to large volumes.

So they have to either make the standard equipment and then you know how much glass youre, putting in a vehicle and how much of it is smart glass or commit to a certain make right.

So you know once again, how much glass, you're putting or the way. It is now it's the customer deciding the configuration of what cars. They won.

And.

And thats less predictable for the automaker obviously.

Less predictable.

The glass laminating licensee so.

If someone's willing to make a commitment we certainly would consider a reduction if it was an impediment or if we can get more.

More revenue out of it.

Because our costs lastly, fixed.

Last topic.

Ah I see that there is one.

Once were purchased can you tell us what the.

Lowest cost price to purchase.

Stock of research frontiers by a warrant holder.

I'd have to look at.

I don't have that number in front of me. It's in our 10-Q that will be weighted average and the exercise price of the warrants.

Some go as high as $5.

Yeah. Some go some are exercisable at four 430.

Some are exercisable at lower prices.

No warrants were purchased though I mean, there was some that were exercised in.

In the first nine months of this year because they were in the money.

And I think that was at 138, if I remember right per share.

Alright, well last question are there any worrying holders.

Who could purchase stock now at a price.

Last in the market.

No.

Alright.

Thanks.

Thanks, a lot Michael.

We have a question from John Nelson.

Your line is hi, Joe Hi.

Hi, Joe.

Follow up.

Earlier in the call you mentioned the project near and Dear to.

Both of us do to them.

Can you put some massive potential size of the market.

The.

The visor project, we either attached or.

Built into our built into the windshield right.

Yeah.

Can you share without naming names.

Share any further details on the visor project.

So I could probably talk about what's been public.

Only and.

In the in the Mclaren, There's one version of the Mclaren that has what's called the cello roof, which is a.

A panoramic roof that kind of wraps down into the windshield of the car. If you can imagine so that.

That band between the windshield and the roof is not metal. It's so it's a curve piece of glass and they've actually done the sun visor built into that.

It's been done in low volume.

And.

For other manufacturers that have much higher volumes, we've had development projects.

Building that into this into the windshield itself and what's cool about that John is that you can actually do multi segmented.

Yeah.

Multiple multiple segments in the in the Sun visor.

And if you combine that with let's say a photo sell that detects.

Where the.

Hello.

Hello.

Oh, I'm sorry, Mr Hurry.

We seem to have lost you.

Okay is that better now.

Yes sure Baxter.

Okay. Thank you, yes, so you can adjust to which segment of the Sun visor actually goes up and down.

Or it goes dark or light with a photocell went to build it into the windshield.

Alright, thank you.

Our next question comes from Alan Ginsberg.

Your line is open.

Yes, Hello, Joe how are you.

Hey, Alan how are you.

I'm good.

My question is a follow up too.

One of the previous.

Questions.

And that has to do with suppliers.

No I understand what you said about fabricators et cetera, but.

I'm sure that.

And users also look at the situation in Israel. So you mentioned.

Hitachi and that we'll be hearing something in.

I am very interested in that as a second supplier.

So.

Can you give us a little.

More color on that.

At this point.

Yeah.

Yeah.

Hello.

Yes.

Mr. Harry I think we've lost you again.

And ladies and gentlemen.

Sam we're having technical difficulty Mr. Hardy are you there.

Hum.

Okay.

Okay.

Mr. Hari can you hear us.

And once again, ladies and gentlemen, please standby, we're just having a bit of time.

Nickel difficulties.

Harare back him on second thank you.

[music].

Mr. How are your back.

Okay. Thank you I apologize, we had a voice over internet issue and I think it's been resolved now.

Yeah.

Hello.

Yes.

Can you hear me.

Yes.

On the line with you know Joe Alan.

You still are okay, yes, sorry, I'll ask Joe Hi, Hi.

Asked you about.

Hitachi and that's when we got cutoff.

Yes at this point I'm not able to give more details about that but I think everyone will be very happy with.

Some of the details when they do come out and hopefully there'll be a.

Time soon when I can do that.

So is that a near term thing that we might hear something about it.

It's not within my control, but it could be very near term.

Okay. That's important to me thank you.

Youre welcome.

Yeah.

And as a reminder, if there are any final questions. Please press star one on your phone now.

And we have a question from Tom Smith.

Your line is open.

Hi, Joe.

Hi, Tom how are you good good.

So as you probably seen there was rumors of cyber truck might have sort of electrochromic.

The conference call mentioned that cyber truck and.

And you mentioned not at that time it didn't have SPD.

I don't think investors have much I don't want you to read too much I don't want you to read too much into that it was more it was more of a an example of a vehicle that.

Came out from a very reputable and innovative auto manufacturer that that that had its share of delays and technical issues too.

A world we live in.

Sure Thanks for asking that.

And then how 'bout, Ruby and anything on Arabian talk because there seem to be growing and they had shown SPD before.

Yes, they had shown SPD and we hope that they will show it again, because they are having issues with the heat buildup inside the vehicle so.

We were.

We're out there as a solution for many many people.

And then as far as the Honda you said first half I mean, thats kind of a large timeframe.

More towards Q1 or Q2 or do you just have no idea.

I'm reluctant to give more of a precise timing because last time I did I was once called out on it so.

So if you don't mind I got to leave it somewhat.

Somewhat long term.

Has there been any more kind of what you're talking about that.

Yes.

First half we're talking about within the next.

Six to eight months.

Is there any been any more confirmation on it or is it a stand where the confirmation was before or is it look it more certain or you can't say you don't know.

It's looking more certain but I you know I like I said I'm reluctant to make any predictions given the fact that.

One of them just bit me in the butt.

Okay alright, thank you. Thanks.

Thanks.

Okay.

Thank you and we have a question from John Nelson.

Your line is open.

Hi.

And we got Joel we got cut off.

Sorry about that John might happen.

We had an internet asks me that set.

Did I Miss anything on comments any more comments on the app or details on the.

Visor project.

Other than.

We have development efforts in the past and currently.

Both in the windshield and as a standalone and.

And that Mclaren had actually put it in series production and you can have a system, where it detects where the sun is on the horizon and decides which segment to darken enlightened based on.

Where the Sun is so.

It's something that I think is it.

A very good application in something near and Dear to my heart as well.

And quite a bit.

Partnering picture in tranches.

Yes.

Okay.

One partner for both fixed and attached or.

Two part difference.

Different different different licensees.

Okay excellent. Thank you very much. Thanks, Thanks, a lot John.

And our next question is from Tom Mccarthy.

Your line is open.

Hi, Joe.

Hey, Tom how are you.

Right.

Enjoying retirement.

And as a former financial adviser.

I'm very aware that.

The investment community is going to be looking at research frontiers and painting it with the same brush.

As it did view and crown and.

Other similar companies or similar products that arent.

Going to be successful.

In other words.

Research Frontiers is going to have to do a good strong.

So PR.

Initiative I believe to really get the investment community to take a serious look at it.

What are the plans to do that.

Sure. So that's a fair question and something that both we and Galaxy incidentally have discussed.

<unk> discussed many many times in terms of that there are big differences between us and crown in us in view.

First of all the economics.

View is a bad company in my opinion because.

The technology doesn't perform well and they had an accounting fraud issue and.

It's not for a lack of sales it's for lack of performance in a highly subsidize their sales. So they lost $250 million in cash last year, we didn't.

And I can pretty much assure you that there's nobody in our supply chain that is building a business around that business model of <unk>.

Hi, Lee subsidizing to.

To the point of losing massive amounts of money. It's just not in anyone's DNA every project has to stand on its own economically and it will and that's one of the key differences and at Crown doesn't have a product that came out the doors. So I don't think anybody is comparing us to them.

<unk> been a lot of promises over the years and moving goalposts and things like that but they're smart window insert has not come out yet and it's always around the corner.

So I don't think we have to worry too much about that.

And you have things like the.

Dynamic Glass Act, that's part of the I R a that.

It's giving tax credits for smart windows, So that changes the economics also in our favor.

So I wouldn't really say that views a fair comparison I think that is certainly something that.

We and <unk> have to work to distinguish ourselves from and we do yes.

Yes, but it's not a it's not a direct comparison.

And.

I've been I've been in the last.

Three to four conference calls.

<unk> out from time to time, some of the differences between us and them.

But on the marketing side, you have a window that goes darker goes wider and switches faster. It's not a direct comparison, we are much better performing than them.

Film, which makes the logistics easier, which means we don't have to ship glass across the world We could ship film.

And have it laminated locally so there's a lot of things that are different and we point that out to the customers.

I know that there are major differences.

I'm not talking about potential customers I'm talking about.

Brokerage firms and newsletter writers and research services.

Excuse me.

They can be.

Superficial when they are looking.

That's something new and.

The inclination is going to be.

Do you think that.

<unk> is another view or another crown.

My point is yes, except that I accept that.

That anybody that does even more of a supervision than superficial analysis, we'll see we're not losing a quarter of a $1 billion a year in cash.

We're not subsidizing the product and we're in multiple industries, so it's a little bit different goodbye.

It's very different but but.

Yeah.

The point I'm trying to make I guess and I'm, sorry, I'm belaboring Mrs.

You can expect.

The folks I'm talking about to come to you.

Unless you have gone to them so to speak unless you've.

Right and I think that yeah, yeah, and there is there is.

Our messaging and P. R initiative that is being launched.

You'll you'll see as well terrific, okay keep up the good work Joe.

Thanks, and I appreciate the question.

And our next question is from Gerard Chairman of strategic planning group.

Your line is open.

Thank you.

Joe at what point do you yourself for the board or any other insiders.

All of that.

A fairly cheap price to purchase the shares in the open market I can't I can't think of a better way and you can't control any other news.

Supporting the stock just a quite your own money.

Yeah, well some of our.

The directors have purchased stock.

There is at any given time different levels of information within the company that would restrict people.

Also from buying it.

I'm sure you're familiar with windows opening and closing and.

Right now the window is closed it may open up soon it may not.

Yes, but we don't have we don't have free reign to purchase anytime we want because.

The insider trading rules that apply.

Understand that but I mean, it's been years since you've been you've got a lot of Ferrari.

We've got plenty of Windows that you guys go to that.

Other than a few thousand shares here and there which is not really an impactful purchase I just.

I think that is all well you guys stepped up and actually purchased some shares in the open market.

Yeah, well I.

I agree and we try to do what we can do when we can do it.

They are also within the last year was a.

Fairly significant event that was expected to be right on the horizon, which would have made any kind of purchase and opportune. So.

You know.

You do have restrictions even within a long period of time.

But I hear what you're saying and I appreciate the question.

Okay. Thank you.

Thanks.

Thank you.

Seeing no further questions I'll turn the call back over to Mr. Harare four finals.

Comments.

Thanks, I'm going to make a few closing remarks and thank you Paul.

This year, our fee income was up 46% for the first nine months of the year with automotive income up 81% quarter over quarter and up over 120% for the first nine months of the year compared to last year.

Ferrari has shown healthy growth in sales in each quarter of this year for the near Piero Sanguine and that uses our SPD smart glass in the roof and I'm told that further growth as expected in sales in the fourth quarter.

We expect revenue in all market segments to increase as new car models aircraft trains architectural and other products using our SPD smart glass are introduced into the market.

And we're very much on our way of becoming cash flow positive and profitable by executing on our business plan.

Now Theres, a lot of analogies between sports and business and perhaps I'm just.

Making this analogy because they have the world series on my mind, but in baseball.

Less than 2.7% of games are one at the end with a walk off homerun.

And in football less than 10% of hail Mary passes are completed.

Statistically baseball games and division titles were won.

Mostly by hitting singles.

And if you are investing in research frontiers based on the battery getting a grand Slam home run it has happened several times, but it's much more likely that your success will come from the singles and doubles and triples that we've hit and all the preparation that has gone into that.

We have long standing seeds place throughout many industries.

And I'm pretty sure that we're well on our way to victory.

And have a very good team of players throughout the world to get us there.

And then keeping with the sports analogy and some of the players on the opposing team are on the injury list.

And.

May have even had some career ending mistakes.

But not us.

We will continue to focus on handing singles doubles, and triples, and an occasional homerun and.

And we also hope to throw in a grand Slam from time to time.

We hope you'll be enjoying the game with us and we're working hard to win in all of our industries.

Thank you all.

Yeah.

The research Frontiers as investors conference call has now come to Annette. Thank you for joining and have a pleasant day.

The House has ended this call goodbye.