Q4 2023 Research Frontiers Inc Earnings Call

Operator: Beep Good afternoon, ladies and gentlemen. Welcome to Research Frontiers' Investor Conference Call to discuss the fourth quarter and full year 2023 results of operations and research during today's presentation. All parties will be in a listen-only mode.

Good afternoon, ladies and gentlemen, welcome to research Frontiers Investor Conference call to discuss the fourth quarter and full year 2023 results of operations and recent developments.

During today's presentations.

All parties will be in a listen only mode.

Operator: Following the presentation, Comp will be open for questions by pressing star 1. This conference call is being recorded today. The replay of this conference call will be available starting later today in the Investors section of Research Frontier's website at www.smartclass.com and will be available for replay for the next Please note that some of the comments made today may contain forwarding, the words XSPECT. Participate. Plan. Forecast. 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 provision, that is.

And 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, that's smart class 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 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.

Operator: Part of the Securities Litigation Reform Act of 1990. These statements reflect the company's current beliefs that a number of important factors could cause actual results for future periods to differ materially from those expected. Significant factors that could cause results to differ from those anticipated are described in our filings with the, Research Frontiers undertakes no obligation to update or revise these forward-looking statements to reflect new events or developments. The company will be answering many of the questions that were emailed to Pryor.

That are <unk>.

Part of the Securities Litigation Reform Act of 1995.

These statements reflect the company's current beliefs.

A number of important factors could cause actual results for future periods to differ materially from those expressed <unk>.

Significant factors that could cause results to differ from those anticipated are described in our filings with the SEC.

Research Frontiers undertakes.

Undertakes no obligation to update or revise these forward looking statements to reflect new events or uncertainties.

The company will be answering many of the questions that were emailed to it prior to this conference call either in their presentation or as part of the Q&A session at the yet.

Operator: Conference call, either in their presentation or as part of the Q&A session at. In some cases, the company has responded directly to email questions prior to this meeting, or we'll do so after, in order to answer more questions of general interest to shareholders. If you find that your question has been substantially answered, as a courtesy, and to allow time for other shareholders to ask their questions. Please remove yourself from the queue by pressing.

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 of more questions of general interest to shareholders. On this call. If you find that your question has been substantially answered as a courtesy and to allow time for other shareholders to ask their questions. Please remove yourself from the queue by pressing star two.

Operator: Also, we ask that you keep your questions brief in the comments section. I would now like to turn the conference over to Joe Harary, President and Chief Executive Officer of Research. Please go ahead. Thank you, Paul. And hello, everyone.

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.

Hey, Thank you, Paul and Hello, everyone and welcome to our fourth quarter and full year of 2023 Investor Conference call.

Joe Harary: And welcome to our fourth quarter and full year 2023 Investor Conference call. As you have seen from the numbers that we released about 30 minutes ago in our 10-K, revenues were up quite substantially, 109% this past year. Costs have been reduced, and we're much closer to profitability. Today, we're going to discuss what's underneath these numbers and why we can all expect 2024 to be an even better year for Research Frontiers and its shareholders and licensees. Research Frontiers is the market leader in the smart glass market. We're also the most diversified company in the smart glass industry with product applications in automotive, aircraft, architectural glass, marine glass, and augmented reality displays and other areas, including consumer products. We're also the most diversified in terms of the skills and capabilities of the companies we work with and geographically diverse, with licensees operating on almost every continent except Antarctica.

As you have seen from the numbers that we released about 30 minutes ago, and our 10-K revenues were up quite substantially 109% and this past year cost have been reduced and we're much closer to profitability.

Today, we're going to discuss what's underneath these numbers and why we can all expect 2020 for it to be an even better year for research frontiers, and its shareholders and licensees.

Research frontiers as the market leader in glass.

We were also the most diversified company in the smart glass industry with products applications in automotive aircraft architectural glass marine glass and augmented reality displays and other areas, including consumer products.

We're also the most diversified in terms of skills and capabilities of the companies, we work with and geographically diverse with licensees operating on almost every continent, except Antarctica.

Joe Harary: This broad and diverse footprint allows us to coordinate, collaborate, and service the needs of our customers locally and rapidly wherever they are. Right now, the markets we primarily serve are automotive and aircraft, and this has been our bread and butter since 2011, when the first Mercedes came out in series production with our technology. We were the first to apply switchable pin technology to the aircraft industry in both general aviation and transport category aircraft. We are the only switchable TIN technology manufacturer in helicopters.

This broad and diverse footprint allows us to coordinate and collaborate and service the needs of our customers locally and rapidly wherever they are.

Right now the markets, we primarily serve or automotive and aircraft and this has been our bread and butter since 2011, when the first Mercedes came out in series production with our technology in it.

We were the first to apply switchable tint technology to the aircraft industry and both general aviation and transport category aircraft.

We are the only switchable tint technology in helicopters.

Joe Harary: And this past year, it was introduced on several aircraft produced by Airbus and, more recently, by Boeing. Perhaps of even greater significance here is the change in the way that the switchable tint technology being used in these aircraft was selected. It was selected by the customer and not just by the manufacturer.

And this past year, we were introduced on several aircraft produced by Airbus and more recently by Boeing.

Yeah.

Perhaps of even greater significance here is the change in the way that the switchable tint technology being used in these aircraft with selected.

It was selected by the customer and not just by the manufacturer.

Joe Harary: That is the result of the sustained and focused effort by Research Frontiers and our licensees to highlight the benefits that SPD technology brings to the passengers, to the cabin crew, and to the Comfort and Passenger Experience for Everyone on Board. In terms of reliability and confidence, SPD smart technology is the longest-running smart glass technology being used in cars and aircraft and even architectural applications, which up until recently was something we didn't speak about. Fortunately, Gauzy is able to currently produce a much wider film than Hitachi Chemical was able to produce in the past. This has opened up the architectural markets to new products, including an elegant and easy-to-implement retrofit solution with the potential to dramatically reduce the cost, to streamline the installation process. Smart Windows throughout the world I'm happy to say today that this retrofit solution is not only ready for use, but it's already passed years and years of field testing.

That is a result of the sustained and focused effort by research frontiers, and our licensees to highlight the benefits that SPD technology brings to the passengers to the cabin crew.

And to the comfort and passenger experience of everyone on board.

In terms of reliability and confidence SPD Smart technology is the longest smart glass technology being used in cars and aircraft and even architectural applications, which up until recently with something we didn't speak about too much.

Fortunately gals, he's able to currently produce much wider film that Hitachi chemical was able to produce in the past. This has opened up the architectural markets with new products, including an elegant and easy to implement retrofit solution with the potential to dramatically reduce the costs and streamline the installation process.

A smart windows throughout the world.

I'm happy to say today that this retrofit solution is not only ready to for us, but it's already past years and years of field testing with.

Joe Harary: We're quite excited about it because it has the enormous revenue potential for research frontiers in our licensing and also makes incorporating or adding a smart window system to any home or building in the world a much easier decision. Let's talk more about the three areas we see for near-term focus in the architectural model, but let's first focus on the benefits. Energy Efficiency, Elegant Shading Capabilities, and View Preservation. Homes, offices, and apartments with magnificent views don't want to block them, so blinds are the best option. SPD Smart Glass allows you to tune the amount of light coming in from clear to blocking 99.5% of the light, making them very effective shading devices and energy saver

We're quite excited about it because it is the enormous revenue potential for research frontiers, and our licensees and also makes incorporating our adding a smart window system to any home or building in the world a much easier decision.

Let's talk more about the three areas, we see for near term focus in the architectural market.

First let's first focus on the benefits energy efficiency elegant trading capabilities and view preservation.

Homes offices and apartments with magnificent views don't want to block them with shades or blinds ASP.

<unk> Smart glass allows you to tune the amount of light coming in from clear to blocking 99, 5% of the light, making them very effective shading devices and energy in saving energy in some cases homeowners saw a 20% reduction in electricity usage in areas of the home that use just SPD smart skyler.

Joe Harary: In some cases, homeowners saw a 20% reduction in electricity usage in areas of the home that used just SPD Smart Skylights. And let's talk about skylights for a moment. They're typically hard to shade and quite expensive. At the National Home Builders Show about a week ago, I saw skylight shades add about $500 to $700 to the cost of a skylight.

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Unless further talk about skylights for a moment, there typically hard to shade and quite expensive to shade.

At the National Homebuilders show about a week ago I saw skylite shades add about 500 to $700 to the cost of the skylight.

Joe Harary: Add the contractor markup, and it's even higher. So we're quite cost-effective in that market and can eliminate the space, mechanical systems that can break, and, of course, the cost and maintenance that skylight shades require. Next, let's talk about government building upgrades. There are GSA government mandates for upgrading non-energy efficient glass in government buildings with more efficient energy efficient glass.

Add the contractor market, Mark up and it's even higher.

So we're quite cost effective in that market and can eliminate the space mechanical systems that can break and of course, the cost and maintenance that skylight shades require.

Next let's talk about architectural.

Government building upgrades.

There are GSA government mandates for upgrading non energy efficient glass and government buildings with more efficient energy efficient glass.

Joe Harary: Some of our key licensees are already approved and on the GSA list and supplying advanced window products to the U.S. and state and local governments, including embassies, courthouses, schools, prisons, and other facilities. This is a large and natural near-term customer for SPD Smart Window. The GSA is actually, I think, the largest customer in the world.

Some of our key licensees are already approved and on the GSA list and supplying advanced window products to the U S and state and local governments, including embassies courthouses schools prisons and other facilities.

This is a large and natural near term customer for SPD smart windows.

The GSA is actually I think the largest customer in the world.

Joe Harary: And with the new retrofit application for SPD SmartGlass, the broader market for homes, office buildings, and apartments has now become wide open. And with government incentives such as the investment tax credit introduced by the Dynamic Glass Act that gives a 30 to 50 percent tax credit to users, and similar incentives around the world by other governments, the economics behind introducing smart glass as a result of all these factors have become much better as governments have begun to financially support this with various incentives. We've spoken about cost reductions through streamlined implementation techniques such as retrofit applications and government incentives. Another factor that has reduced costs is production efficiency and the way that SPD films are made and distributed throughout the world.

And with the new retrofit application for SPD smart glass, the broader market for homes office buildings and apartments now becomes wide open.

And with government incentives such as the investment tax credit introduced by the dynamic Glass Act that gives us 30% to 50% tax credit to users and similar incentives around the world by other governments, the economics behind introducing smart glass as a result of all these factors have become much better as governments have begun to financially support.

Port this with various incentives.

We've spoken about cost reductions through streamline implementation techniques, such as the retrofit applications and government incentives.

Another factor that has reduced costs as the production efficiencies and the way that SPD film has made and distributed throughout the world.

Joe Harary: We are fortunate to have the leadership and vision of our licensee, strategic investor, and partner, Gowzy, in this area. We have had a very strong working relationship with GALSI from day one, and this past year, their business expansion, along with very positive developments in our industry, have both significantly increased the frequency with which we meet and collaborate. We're working with them in Israel, Germany, France, China, South Korea, and, of course, throughout the United States.

We are fortunate to have the leadership and vision of our licensee strategic investor and partner <unk> in this area.

We have had a very strong working relationship with <unk> from day, one and this past year their business expansion along with a very positive developments in our industry have both significantly increased the frequency in which we meet and collaborate.

We're working with them in Israel, Germany, France, China, South Korea and of course throughout the United States and just this week alone we introduced a new automotive project Galaxy in Asia.

Joe Harary: And just this week alone, we introduced a new automotive project to Galaxy and Asia. Returning back to cars for a moment, let's look at the numbers there. It is clearly our largest market now, but it may be supplanted in the medium term by architectural or information display applications such as augmented reality. We had an overall increase in royalty income in 2023 compared to 2022 of 69%, which is, in itself, a quite healthy growth rate. Even more dramatic, automotive royalties were up by triple digits (178%) between 2023 and 2022. And even within 2023, automotive royalty income more than doubled between the third and fourth quarters of this year. As many of you know, Ferrari introduced an all-glass roof in their new sold-out four-door Puro Sangue. However, if you want a glass roof on this car, it must have SPD Smart Glass. You don't have a choice.

Returning back to automotive for a moment, let's look at the numbers there.

It is clearly our largest market now, but it may be supplanted supplanted in the medium term by architectural or information display applications such as augmented reality.

We had an overall increase in royalty income in 2023 compared to 2022 of 69%, which is in itself a quite healthy growth rate.

Even more dramatic automotive royalties were up by triple digits, 178% between 2023 and 2022 and.

And even within 2023 automotive royalty income more than doubled between the third and fourth quarters of this year.

As many of you know Ferrari introduced an all glass roof in their new sold out four door pure a segue.

If you want a glass roof on this car and must have SPD smart glass in it you don't have a choice.

Joe Harary: Sales started in Q1 2023 for our licensees supplying Ferrari and more than tripled between the first and third quarters of this year. And then unit volumes more than doubled again between the third quarter and the more recently reported fourth quarter, and we expect continued growth in the Ferrari program based on this trend and also based upon higher SPD film orders at GALSI for 2024 from our licensee that's supplying Ferrari. We also expect higher automotive royalties in 2024 based on new products and models, including the one from Asia, and some new models to be produced in Europe. With that, I look forward to answering your questions. And we'll take some of the ones that have been emailed to us first.

Sales started in Q1 2023 for our licensees supplying Ferrari and more than tripled between the first and third quarter of this year and then unit volumes more than doubled again between the third quarter and the more recently reported fourth quarter and.

And we expect continued growth in the Ferrari program based on this trend and also based upon higher SPD film orders at Gals, you for 2024 from our licensee that supplying Ferrari.

We also expect higher automotive royalties in 2024 based upon new products and models, including the one from Asia and some new models to be produced in Europe.

With that I look forward to answering your questions and we'll take some of the ones that have been emailed to US first first of all thank you Jared a Jeff K Geoff H Chuck.

Joe Harary: First of all, thank you, Jarrod A., Jeff K., Jeff H., Chuck M., Bob P., Robert B., Steve A., and John Nelson for your questions. And also, thank you for your kind words about the safety of GOWSI. Operations have thankfully not been disrupted by the war in Israel and are also, To save time and to be able to cover more ground here today, I've answered many of these questions in my presentation. I will address some of them further in my closing remarks. And, of course, if I don't fully answer them in the interest of time, please follow up with me by email. So here are some of the additional questions that were emailed to us. And in some cases, I'm combining several related questions into one.

Bob.

Robert B, Steve and John Nelson for your questions and also thank you for your kind words about the safety of Galaxy.

Whose operations.

Operations are thankfully not been disrupted by the war in Israel and are all safe.

To save time and to be able to cover more ground here today I've answered many of these questions and my presentation I will address some of them further in my closing remarks and of course if.

If I don't fully answer them in the interest of time, please follow up with me by email.

So here's some of the additional questions that were emailed to us and in some cases I'm combining several related questions into one.

Joe Harary: Joe, can you comment on the lawsuit that was brought against Research Frontiers, GALSI, and Vision Systems in Florida? Well, this was recently resolved, and it was a total victory for us. The federal court threw out all the claims against our company.

Joe can you comment on the lawsuit that was brought against research Frontiers Galaxy and vision systems in Florida.

Well this was recently resolved and it was a total victory for us the federal court throughout all the claims against our companies.

Joe Harary: However, even prior to this filing, we've always maintained that it was a lawsuit that never should have been brought. And this is because there was, of course, no infringing or other improper activity, but more significantly for the future was the fact that the court agreed with us as to the effect and validity of the provision that is in all of our license agreements, in one form or another, that gives us a license back in the smart glass-related intellectual property of our licensees when their license terminates or expires. The fact that this provision was blessed by the court is a significant precedent. This provision basically says that if a license agreement ends for any reason, Research Frontiers, and through us, our licensees, get the right to use the invention and improvements developed by our licensees relating to smart. This has resulted in this expansion of our intellectual property portfolio. And from an economic standpoint, this ruling also has significance because the court awarded us sanctions against the attorney and law firm that brought the suit for their conduct in this case.

However, even prior to this filing we've always maintained that it was a lawsuit that never should have been brought.

And this is because there was of course, no infringing or other improper activity, but more significantly for the future was the fact that the court agreed with us as to the effect and validity of the provision that is in all of our license agreements in one form or another that gives us the license back in the smart glass related intellectual property of our licensees.

When their licensee when their license terminates or expires.

The fact that this provision was blessed by the court as a significant precedent.

This provision basically says that if a license agreement and for any reason research frontiers and through us our licensees.

Gets the right to use the invention improve and improvements developed by our licensees relating to smart glass.

This has resulted in the expansion of our intellectual property portfolio.

And from an economic standpoint. This rolling also has significance because the court awarded of sanctions against the attorney in law firm that brought the suite for their conduct in this case, our recently filed proof of damages puts us amount at over $600000 currently.

Joe Harary: A recently filed proof of damages puts this amount at over $600,000 currently. Another question: we've heard nothing on the development of black particles. Is this still a possibility? And does it offer a greater opportunity?

Another question, we've heard nothing under development of Black particles is this still a possibility and does it offer a greater opportunity things, Jeff H well, thanks, Jeff for the question.

Joe Harary: Thanks, Jeff H. Well, thanks, Jeff, for the question. We, as well as GALSI, have been actively working throughout the years to develop a more color-neutral form of SPD besides the current blue particles. And we have achieved this in the way that existing materials are fabricated, but we'd love to also change the particles themselves used in our SPD film to do this.

We as well as galaxy have been actively working throughout the years to develop a more color neutral form of SPD. Besides the current blue particle.

And we've achieved this in the way that.

Existing materials are fabricated, but we'd love to also change the particles themselves used in our SPD film to do this and we've made great progress at research Frontiers, and I can't speak for Galaxy, but our progress will certainly benefit them. So stay tuned on that and to answer your other question.

Joe Harary: And we've made great progress at Research Frontiers, and I can't speak for GALSI, but our progress will certainly benefit them. So stay tuned on that. And to answer your other question, when we are successful with a new particle, it certainly will further enhance the markets and opportunities for our SPD smart glass. New product improvements always do that.

When we are successful with the new particle it certainly would further enhance the markets and opportunities for our SPD smart glass new product improvements always do that however, you can see from our results of operations reported for 2023 that the existing blue colored SPD is also gaining great traction across multiple industries.

Operator: However, you can see from our results of operations reported for 2023 that the existing blue-colored SPD is also gaining great traction across multiple industries and for new users. We've discussed a lot of exciting topics so far today, and I'll now ask our operator, Paul, to open up the conference to any additional questions people participating today might have had that haven't already been covered. Thank you, Ms. Harary.

And for new users.

Okay.

We've.

<unk> a lot of exciting topics, so far today and I'll now ask our operator, Paul to open up the conference to any additional questions people participating today might have had that haven't already been covered.

Thank you Mr. Ari if he 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.

Please be prepared to ask a question when prompted.

Operator: If you would like to ask a question... Press star 1 on your telephone. Be prepared to ask your question whenever you are ready again.

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

And our first question comes from Ted Campbell, a private investor.

Ted Campbell: The telephone call comes from Ted Campbell. Hey Joe, how are you? Ted, it's great to hear from you. I hope you've been well. I've been well, thanks for asking.

Your line is open.

Hey, Joe how are you.

Ted it's great to hear from you I hope you have been well.

Well thanks for asking.

Always a pleasure talking with you and I.

Just wanted to congratulate you on.

Nice fourth quarter really nice fourth quarter, and an improved 2023.

Joe Harary: It's always a pleasure talking with you, and I just wanted to congratulate you on a really nice fourth quarter and an improved 2023. It's great to see the increase in revenues for both of those, but especially this fourth quarter, because that's something you think we're going to build on. Thank you, Ted. I can't take full credit, though.

It's great to see the increase in revenues for both the dose, but especially this fourth quarter.

Good afternoon.

Thank you.

Can't take I can't take full credit, though it's a it's a team effort among us and our licensees, but we've all worked hard and I'm really pleased with it as well, but thank you for that.

I appreciate everybody's hard work.

But I'd say its the increase in revenues, especially in the fourth quarter, you think thats something.

Ted Campbell: It's a team effort among us and our licensees, but we've all worked hard, and I'm really pleased with it as well. But thank you for that. Oh, I know that. I appreciate everybody's hard work.

We can build out in the 2024 or was this like a one time event in the fourth quarter.

Oh I think based on.

The trends that we're seeing I mean for a lot of that was was due to Ferrari coming on board with they're all glass roof, using our technology and based on the film orders for 2024 by the licensee that supplying Ferrari I expect that to.

Joe Harary: But is this increase in revenues, especially in the fourth quarter, do you think that's something we can build on in 2024, or is this like a one-time event in the fourth quarter? Oh, I think based on the trends that we're seeing, a lot of that was due to Ferrari coming on board with their all-glass roof using our technology. And, you know, based on the film orders for 2024 by the licensee that's supplying Ferrari, I expect that to actually grow quite a bit in the coming year. So yeah, I don't think it's a one-time event.

Actually grow quite a bit.

In the coming year.

So, yes, I don't think its a one time.

Got it one time event, yeah definitely will go down it plus we have.

You know a car coming on board from Asia that everybody is quite excited about that's more of a medium sized car and.

And then also a couple of more cars that are being produced in Europe.

That will be new introductions for SPD. So, yes, I think that we're going to do quite well in the coming year.

Joe Harary: It's not a one-time event. Yeah, definitely, we'll build on it. Plus, we have, you know, a car coming on board from Asia that everybody's quite excited about. That's more of a medium-sized car.

I am excited about the upcoming models, but I also would relate to your comments on the retrofit market.

Really looking forward to revenues coming from that.

I think it's a game changer.

Joe Harary: And, and then also, a couple more cars that are being produced in Europe that will, you know, be new introductions for SPD. So yeah, I think that we're going to do quite well in the coming years. Yeah, I'm excited about the upcoming battles, but I also like your comments on the retrofit market. I'm really looking forward to revenues coming from that. I think it's a game changer. You know, and I appreciate you picking up on that. Right now, if you wanted to put a smart window in a building, you would have to take out the glass. And if you're in a building that has more than one or two floors, you have to put up scaffolding, which is very expensive and disruptive to the retail stores on the ground floor and things like that.

And I appreciate you picking up on that.

Right now if you wanted to put a smart window into building you got to take out the glass and if you're on a building that has more than one or two floor is you have to put up scaffolding, which is very expensive and disruptive.

The retail stores on the on the ground floor and things like that so.

This retrofit solution allows you actually to install smart windows from the inside of the building.

You don't have to put up scaffolding you don't forget landlord approval, we still have to do a lot of things that can either add to the caster or increase the delays in getting a system in.

And we've seen installations of this system, where you come in over the weekend and do it so.

Joe Harary: So this retrofit solution allows you to install smart windows from the inside of the building. And you don't have to put up scaffolding. You don't have to get landlord approval.

You're probably not even up.

Disrupting the workflow in an existing office.

Alright, well I don't want to hog anybody elses time, you're asking questions but.

Joe Harary: You don't have to do a lot of things that can either add to the cost or increase the delays in getting a system in. And, you know, we've seen installations of this system where you come in over the weekend and do it. So you're probably not even up, you know, disrupting the workflow in an existing office.

Always good talking to you and thanks again to everybody at research Frontiers and Ghazi for all the hard work you put in.

Thank you Tim I appreciate it very much.

All right have a good one.

Okay.

Thank you.

Our next question comes from.

Alan Ginsberg, a private investor.

Your line is open.

Yes, Hi, Joe how are you.

Ted Campbell: All right, well, I don't want to hog anybody else's time asking questions, but it's always good talking to you, and thanks again to everybody at Research Frontiers in Ghazi for all the hard work you put in. Thank you, Ted. I appreciate it very much.

Hey, Alan how are you.

I'm fine.

Last call you mentioned.

Hitachi in passing but I've heard nothing since then.

Is there anything going on there, which might lead us to believe that they might have.

Joe Harary: All right, have a good one, and trace. Our next question comes from Alan Ginsberg, Private, Myself.

Again be part of our.

The manufacturing process here.

I think you haven't seen the last of Hitachi as technology I think that.

Alan Ginsberg: Yeah. Hi Joe. How are you?

Joe Harary: Hey Alan, how are you? I'm fine. On our last call, you mentioned Hitachi in passing, but I've heard nothing since. Is there anything going on there?

Part of this I have to defer until the time when that could be more fully announced but.

It's good for the industry.

So you think there is a chance that they are going to be reintroducing different products.

Joe Harary: might lead us to believe that they might again be part of the manufacturing process here. I think you haven't seen the last of Hitachi's technology. I think that part of this I have to defer until a time when that could be more fully announced. But, you know, it's good for the industry. So you think there's a chance that they're going to reintroduce Product? I think you're going to see their technology come into the marketplace, perhaps on different paths than you would expect, but, you know, significant for us. And today still, obviously, they still have a life.

I think youre going to see their technology come.

Coming to the marketplace, perhaps from different paths and you would expect but but cigna.

Significant for us.

And today, it's still obviously, they still have a license even though they still have a license.

Still other license, even though the company itself was sold.

To show a danko and then renamed itself.

Our license still is intact.

Okay. Thanks, that's all I wanted to ask.

Thank you.

Welcome.

Yeah.

Our next question comes from Gerard Sherman Strategic planning group.

Your line is open.

Joe Harary: Even though they still have a license, they still have a license, even though the company itself was sold to Showa Danko and then renamed itself, the license is still intact. Okay, thanks, that's all I wanted to add. Thank you. Our next question comes from Jarrod Sherman. Richard Clanning. Thank you. Hi, Joe.

Thank you Hi, Joe.

Question for you on the cash flow situation and their current cash you guys have in the bank.

I was kind of under the impression from the last couple of calls that we had.

Our year running room and now after reading this last financial that came out it looks like you've got a negative cash flow of about $1 million for next year.

Jarrod Sherman: Question for you on the cash flow situation and the current cash you guys have in the bank. I was kind of under the impression from the last couple of calls that we had, you know, like a four-year running room, and now, after reading this last financial report that came out, it looks like you've got a negative cash flow of about a million dollars for next year. You know, are you— No, what are you? Are you— Yeah.

No.

Yes.

Yeah.

We actually have a five year runway, we put that in the press release.

What youre seeing is kind of an accounting way of expressing it which the way. They they test things is do you have enough cash to last year at least 12 months from the filing date, but if you look at our if you look at our.

Joe Harary: Yeah. We actually have a five-year runway. We put that in the press release. What you're seeing is kind of an accounting way of expressing it, which the way they test things is, do you have enough cash to last you at least 12 months from the filing date?

N DNA section or in the press release that came out it's about a five year runway now some of that is cash on hand, we had two and a half million dollars at the end of the year.

And you know much slower burn rate as we approach breakeven and and then also anticipated revenues from the existing projects. So I don't know, if we're going to raise money or not.

Joe Harary: Right. But if you look at our MD&A section or in the press release that came out, it's about a five-year runway. Now, some of that is cash on hand.

You know Mercedes or Ferrari or Mclaren wants to make a strategic investment I might say, yes.

Joe Harary: We had $2.5 million at the end of the year and, you know, a much lower burn rate as we approach break-even, and then also anticipated revenues from the existing project. So I don't know if we're going to raise money or not. You know, if Mercedes or Ferrari or McLaren wants to make a strategic investment, I might say yes. That's always good. Gauzy has a strategic investment from Hyundai, and that's been very helpful for their business. So you never know where those things can lead you, but I don't anticipate doing an offer.

That's always good.

<unk> has a strategic investment from Hyundai and that's been very helpful for their business. So you never know where those things can lead you, but I don't I don't anticipate doing.

And offering.

Okay, Alright, great. Thank you.

As a reminder.

Minder, if you do have a question. Please press star one on your phone now and our next question comes from Leonard <unk> a.

Private investor your.

Your line is open.

Hey, good afternoon, Joe.

Hey, Latam great to hear from you.

It's great to be here Buddy.

Hi.

When do you when do you think we're going to be.

Over the.

Hum.

Joe Harary: Okay, all right, great. Thank you, Thank you. Reminder, if you do have a question, please use the Q&A box on your screen. Star. Leonard Lieber, Unknown Attendee, Unknown Speaker.

Positive cash flow second happen in 'twenty four.

I don't know if the trends continue it's a possibility.

I don't want to predict when we become cash flow positive or profitable but.

Leonard Litzau: Hey, good afternoon, Joe. Hey Len, great to hear from you. It's great to be here, buddy. When do you think we're going to be? over, over the hum.

Because that depends on things outside of our control, but a lot of those seeds that we planted over the last several years are beginning to see pop up nicely and.

Joe Harary: Negative Cash Flow. Is that going to happen in 24? I don't know if if the trends continue, it's a possibility. I don't want to predict when we become cash flow positive or profitable. But because that depends on things outside of our control, but a lot of those seeds that we've planted over the last several years are beginning to pop up nicely, and we're also seeing a kind of movement towards SPD in the automotive industry, which is more predictable for us. So I have a greater degree of confidence, you know, that we're on the right path. They're using it in more windows, then, right?

And we're also seeing a.

<unk>.

Our movement towards SPD in the automotive industry, which is more predictable for us. So I have a greater degree of confidence that we're on the right path there.

They are using it more windows head right.

More windows and a lot of people are beginning to realize in the automotive industry. The benefits of putting this in a vehicle and the shortcomings of what other technologies that are promise the world than having delivered it.

So I think youll.

Joe Harary: More windows and a lot of people are beginning to realize in the automotive industry the benefits of putting this in a vehicle and the shortcomings of what other technologies that have promised the world and haven't delivered have. So I think you'll see that there are a lot more cars that are using SPD than anything else and new ones coming in or switching over from other technologies. I think that'll all be very good for us and for our lives. Okay, and have you had any recent retrofits with the government buildings recently?

Youll see that Theres, a lot more cars that are using SPD than anything else and new ones coming in are switching over from it from other technologies to us. So I think that will all be very good for us and for our licensees.

Okay.

You had some retrofit.

Government buildings recently.

We've added over the last several years as part of test programs to make sure that the system is.

Reliable and easy to work with an easy to implement and.

And we've improved the system even more since those initial tests started but everything is moving in a very positive direction.

Joe Harary: We've had it over the last several years as part of test programs to make sure that the system is reliable and easy to work with and easy to implement, and we've improved the system even more since those initial tests started, but everything is moving in a very positive direction, and I think that's the game changer for architecture and then with the tax credits. You know, it would seem like. You know, everybody, how long do those last?

I think thats the game changer for architectural.

And then with the tax credits.

It would seem like.

Everybody how long did those last do you know how many years that we can look forward to that.

It's a fairly complicated calculation, but I think you can get a lot of it upfront. So it makes implementation a lot easier.

And you know.

You never know what the government when they're going to.

Yes.

Joe Harary: Do you know how many years we can look forward to that? It's a fairly complicated calculation, but I think you can get a lot of it up front, so it makes implementation a lot easier, and you never know with the government when they're going to either increase or decrease a program. They usually increase it. Yeah, but it's not, you know, I mean, it's nice to be mentioned in the same sentences as other recognizable energy efficient technologies, solar energy, and other things. It just adds a lot of credibility, you know, that Smart Glass in general and us specifically have made it. You know, I have the record.

Either increase or decrease our program, they usually increase them though.

Yes, but it's not.

I mean, it's nice to be mentioned in the same sentence is as other recognizable energy efficient technologies like solar energy and other things like that.

This adds a lot of credibility that smart glass in general and specifically of have made it.

Got the recognition.

Yes, those projections I saw the other day from.

Again that way.

On the marketing company and so the reason they did pension you very much as it was their clients had tableware.

Leonard Litzau: Yeah, with those projections I saw the other day from again, that was from a marketing company. And so the reason they didn't mention you very much is because it was their clients that they were making the comments for, because that's right. So I talked to the analyst, and that's what he told me. So that's fine. Yeah, I don't mind. I don't mind if anyone increases awareness of smart glasses. You know, I'm so confident in our performance.

The comments for because that's right.

So I talked to the analysts to that's what he told me so that's okay.

Yeah.

That's why I don't mind, I don't mind, if anyone increases awareness of smart glass.

So confident in our performance and.

As youll find probably the cost have come down fairly considerably to the point, where we can.

We can get into the mid level cars, which tells you something.

Joe Harary: And, you know, as you'll probably find, the costs have come down fairly considerably to the point where we can get into the mid-level cars, which tells you something. And because of that, it makes us cost competitive, you know, on a real economic basis, not on a subsidized basis, like some companies do. So on a real basis, we're cost competitive. And, you know, we don't take on business; it's not going to be profitable for our licensees.

And because of that it makes us <unk>.

Cost competitive.

On a real economic basis, not on a subsidized basis like some companies do.

So on a real basis, we're cost competitive and.

We don't take on business is not going to be profitable for our licensees.

But.

But it's nice to be able to.

To have the awareness built out by these other companies and then take the business.

Yes.

Okay, well, thank you very much Joe.

Thanks Lynn.

Our next question comes from Art Brady, a private Investor Your line is open.

Art Brady: But, But it's nice to be able to have the awareness built up by these other companies and then take the business. Yeah. Okay, well, thank you very much, Joe. Thanks, Len. Our next question comes from Art. Private. Hi Jarrod, Art Brady here.

Hi, Joe.

Hey, how are you.

Good.

I'm just kind of curious.

If you and Gary.

Hi.

Let me conversation.

Got it.

Using smart glass.

Hello.

Yes.

Either smart yes.

You mean, no no concrete or would just smart glass.

Joe Harary: Hey Art, how are you? I'm just kind of curious if you and Gauzy have had any conversation regarding the building of homes using smart glass, in other words, a whole house built out of smart glass. You mean, no, no concrete or wood, just smart glass? Yeah, like, we haven't had that conversation yet. We have not had that conversation, but I'll say that the old adage about people living in glass houses isn't true. With our glass, with our glass, it would protect you from rocks and privacy.

Right.

Yes.

I Havent had that conversation.

Ed.

We have not had that conversation, but I will say that the old adage about people living in Glasshouses shouldnt throw rocks.

With our glass with eyeglass it would protect you from the rocks and the privacy so it's possible.

I think.

Some individuals would go wrong over it especially nature lovers.

And the considerations.

Yes.

Yes.

Chris.

One of the car companies.

Art Brady: So it's definitely possible. I think there are Some individuals would go wild over it, especially your nature lovers, and the considerations are that this is part of the real future because if one of the car companies, from what I heard, was building a car out of smart glass, we could actually build a house out of smart glass, and I think you guys should really give it significant consideration, especially what's going on with the possible building of facilities down in the future on the moon and Mars. Okay, well, I think we're going to go for the low-hanging fruit first, but it's such a big market that I don't rule anything out. But but thanks for the question, Art.

Uh huh.

Whereas the brewery.

Smart glass, we could ask Julie.

Our house.

Tomorrow.

And I think you guys sure.

We gave it significant.

Asia, especially with what's going on.

Interac tick.

Possible.

Sure.

Down in the future.

Yes.

Okay, well I think we're going to go for the low hanging fruit first but it's such a big market that I don't rule anything out but thanks for the question Art I appreciate it sure.

Our next question comes from John Nelson, a private investor.

Joe Harary: I appreciate it. Sure. Next question? John Nelson.

John Nelson: Hi Joe, how are you doing? Good. Hey John, how are you doing?

Your line is open.

Hi, Joe how are you doing.

Good Hey, Jon how are you doing and thank you for your question and also your kind words about Gal Z earlier.

Joe Harary: And thank you for your question and also your kind words about GOWSI earlier. Excellent. Thank you. I have a couple questions on the Asian and European car projects that you discussed. Are they just for the sunroof, moonroof, or are they also any, either of them involved with shading the windows. So one of the vehicles is just a sunroof.

Excellent.

Aye.

Couple of questions on the.

Asian and European.

Copper projects that you discussed and are they.

Just for the involving the.

Some rough mone, Ralph or are they also any either of them involved with.

Shading the windows.

So one of one of the vehicles is just the sunroof.

Joe Harary: We're excited about that because the cost to the manufacturer is the lowest I've ever seen since 2010 when Mercedes started with that. So you're talking about a fairly substantial reduction in costs for that. So that's exciting in that respect. And then the other one actually uses side glass as well as roof glass.

We're excited about that because the cost to the manufacturer has the lowest I've ever seen.

Since.

Since 2000 2010, when Mercedes started with that so you are talking about a fairly substantial reduction in costs for that so that's exciting in that respect and then the other one actually uses.

Side glass as well as roof glass so.

Joe Harary: But thank you for the question because that could vastly expand the way, you know, our glass is being used and also the volume. Great. Okay. And then regarding the retrofit solution, are you in, or I should say, are your licensees in a position now to be taking orders? They will be in several months.

But thank you for the question because that could vastly expand the way.

Our glass is being used and also the.

The volumes.

Great Okay.

And then regarding the retrofit.

Solution.

Are you in them or I should say are your licensees in position now to be taking orders.

Joe Harary: Some of the data that we want to now generate with the latest and greatest SPD needs to be generated for the architects. The system itself is ready for prime Time. Now, you know, as part of the selling process, you know, when you go to the architects, they want to know all the data about, you know, energy savings and reflectivity and all the other things that are important to them.

There will be several months some of the data that we want to now generate with the latest and greatest SPD needs to be generated for the architects the system itself.

Is ready for prime time.

Now as part of the selling process. When you go to architects they want to know.

All the data about.

Energy savings and activity in all the all the things that.

Are important to them so that's being generated.

Okay and then.

Joe Harary: So that's being generated. Okay, and then regarding skylights, are the products being worked on? Simply the laminated product for new buildings, or is there a retrofit product being tested for skylights also? Both, both.

Regarding skylights.

Is.

And are the products being worked on.

Simply the laminated product for you or is there a retrofit product being tested for skylights household.

Both both so sometimes when you're putting in a skylight its new glass. So you just put a new smart glass, there and theres, usually wiring very close to where the skylight is anyway coming going through the ceiling or through those areas.

Joe Harary: So sometimes when you're putting in a skylight, it's new glass. So you just put in smart glass there. And there's usually wiring very close to where the skylight is anyway, coming, going through the ceiling or through, you know, those areas.

<unk>.

Joe Harary: With the retrofit, you can do that also. So if you wanted to retrofit an existing skylight with SPD functionality, we've done that. And it actually has very good energy characteristics doing that because it also creates this air gap between the outer glass and the inner SPD pane. So you can actually enhance even further some of the, You know, some of the energy efficiency because you're not really so concerned about losing space like you would like if you put it in your living room on vertical glass on a skylight. Adding that air gap actually could be beneficial. It's not so much of a detriment.

With the retrofit you can do that also so if you wanted to retrofit an existing skylight with an SPD functionality and we've done that and it's actually had very good energy characteristics doing that because it also creates this air gap between the outer glass in the inner SPD pain. So you can actually.

Enhance even further some of the.

Some of the energy efficiency, because you're not really so concerned about losing space like you would like if you put it in your living room on vertical glass.

A skylight.

Adding that air gap actually could be beneficial it's not so much of a detriment.

John Nelson: Okay. Very good. That's all I have.

Okay very good that's all I have thank you.

Joe Harary: Thank you. Great. Answer. Hey, Joe, how are you? Hey, Dr. Berman, how are you?

Thanks, a lot John.

As a reminder, if you do wished.

Wish to ask a question. Please press star one on your phone.

And our next question comes from August permit.

<unk> investor.

Your line is open Sir.

Hey, Joe how are you.

August Berman: I'm well, thank you. Happy, Happy Earnings Day. Nice. Thank you very much.

Hey, Dr. Berman how are you.

Well, Thank you happy happy earnings day.

Thank you very much I hope everyone is as happy as I am about the numbers, absolutely you'll get to see that for sure.

Joe Harary: I hope everyone is as happy as I am about the numbers. Absolutely. No, good to see that for sure. I just had a couple of questions.

I had a couple of questions.

First for the for the press release it looks like there was a slight modification in terms of language for the Asian Asian model.

Joe Harary: First, for the press release, it looks like there was a slight modification in some of the language for the Asian Asian model. Have they have the Asian model indicated it might not be first half 2024? They haven't indicated one way or another; I'd just like to build in a cushion given what happened because we were expecting that in the second half of 2023 and, for reasons unrelated to SPD and more in general with their kind of production, QA issues that they had with the rest of the car, things got delayed. So, you know, just being a little cautious, that's all.

The agent model indicated it might not be first half 'twenty 'twenty four.

They haven't indicated one way or another.

I'd just like to build in a cushion given what happened because we were expecting that in the last in the second half of 2023 and for reasons unrelated to S. P D.

And more in general with their kind of production and QA issues that they had with the rest of the car things got delayed so.

Being a little cautious that's all.

Joe Harary: I understand. And then I also noticed that I mentioned instead of at least one, just referring to one Asian model. Are we still looking at multiple Asian models, or have things changed in our conversation? Things haven't changed. I just, you know, once again, want to be as conservative as possible.

I understand and then it also.

Noticed that I had mentioned that at least one Jeff.

<unk> referenced returns of one <unk>.

Model are we still looking at multiple Asian models or has that been changed and conversation things haven't things haven't changed I, just once again want to be as conservative as possible.

Joe Harary: And, you know, the numbers will speak for themselves, and the car introductions will speak for themselves. And, you know, one of the things I hope happens is that the car makers will be a little bit more forthcoming as to what technology they're using. And if you kind of remember, when Mercedes came out with the SLK, It was a little bit of a sales job, but we needed, we wanted, and we impressed upon them the benefit of making the connection between the name Magic Sky Control and SPD Smart Glass, and they allowed us to do that. When McLaren came out with their SPD roof, they just called it electrochromatic, the generic name. And up until this year, they have, you know, now you're seeing they're starting to refer to themselves as SPD, which I think indicates we're more of a badge of honor now. For a while there, they didn't want to reveal what the secret sauce is in their cars in terms of what technology they were using, but, you know, now it's become a badge of honor. It's like putting in, you know, a Blaupunk or a, you know, Harman Kardon stereo system.

The numbers will speak for themselves in the car introductions will speak for themselves.

One of the things I hope happens.

Is that the carmakers will be a little bit more forthcoming as to what technology. They are using and if you kind of remember.

When Mercedes came out with the S. L K.

It was a little bit of a sales job, but we needed we wanted and we impressed upon them the benefit of making the connection between the name Magic Sky control and SPD Smart glass and they allowed us to do that when Mclaren came out.

With.

With their SPD roof. They just called it electric dramatic the generic term and up until this year. They have now now you're seeing they're starting to refer to as SPD, which.

I think it indicates we're more of a badge of honor now for a while there they don't want to reveal what the secret sauces in their cars and.

What technology that we're using but now it's become a badge of honor its like putting in a ballpark or.

Harman Kardon stereo system, it's a it's a badge of honor to put SPD in there so you're starting to see more carmakers.

Joe Harary: It's, you know, it's a badge of honor to put SPD in there. So you're starting to see more car makers, I think, and I hope they continue to do that where they mention us by name. But if they don't, we'll find a way to make sure that our shareholders know what cars we're in, like Ferrari hasn't mentioned us as S.P.D. in official pronouncements, but McLaren now does, so I. The gate is beginning to open.

Thank and I hope to continue to do that where they mentioned us by name, but if they don't we will.

To find a way to make sure that our shareholders know what cars, we're in like Ferrari hasn't mentioned us.

SPD and official pronouncements, but Mclaren now did so I think you know.

The gate is beginning to open there.

Joe Harary: Yeah, no, I was very, very excited to see that when they came out with that. And we pretty much seem to be in every car for McLaren that has a glass roof. So that's, that's great to see. And hopefully Ferrari kind of falls into the same process as the model.

Yes.

Very excited to see that when they came out would that be pretty much seem to be in every car for Mclaren that had the glass roofs. So that's that's great to see and hopefully Ferrari can it falls at the same the same.

Write offs at the model.

Joe Harary: I just had one other question. When I saw the news, I was very excited. And then I didn't see much follow up afterwards. And I kind of thought maybe it was just because of the poor timing with the 737 Issue.

I just had one other question.

When I saw the news that was very exciting and then I didn't see much follow up afterwards.

Maybe it was just to get the poor timing with the <unk>.

137 issues.

Joe Harary: Are we under an NDA for discussing that further? The Boeing 737, that would be known. Yeah, we're still waiting for permission to talk about the aircraft market, but I will say this, and you kind of raised an interesting thing that may be helpful to everyone on the call. People should pay attention to a couple of things. As I mentioned in the past, pay attention to what you see in patent applications and patents, because it'll tell you companies that are working with our technology that we can't necessarily say they're working with our technology, but also pay attention to what happens at trade shows.

B RV under NDA for discussing that further.

787, yes, we're still we're still waiting for permission.

To talk about the aircraft market, but I will say this.

And you kind of raise an interesting thing that may be helpful to everyone on the call.

People should pay attention to a couple of things I mentioned in the past pay attention to what you're seeing patent applications in patents because it'll tell you have companies that are working with our technology that we can't necessarily say, we're working with our technology, but also pay attention to what happens at Tradeshows.

Joe Harary: Trade shows are not only a forum for us to meet key decision makers and have meaningful conversations with them, but there are a lot of other benefits. And at CES this year, there were a number of things that were publicly... announced, but there are also some things that we're still waiting on permission to be able to talk about publicly. And I'll tell you a little bit about something that we're still waiting for permission to do.

Tradeshows are not only.

Forum for us to meet key decision makers and have meaningful conversations with them.

But there's a lot of other benefits and at CES. This year. There was a number of things that were publicly.

<unk>.

Announced but there are also some things that we're still waiting on permission to be able to talk about publicly.

I'll tell you a little bit about something that we're still waiting on permission for them. So I can't give a lot of details, but I'll give probably enough to make everyone understand.

Joe Harary: So I can't give a lot of details, but I'll give probably enough to make everyone understand where some of these things are going. One specialty vehicle, for example, at CES that's slated for production next year, and it's not a car, incorporated a novel approach to augmented reality in the wind. A key part of this was made possible by a combination of transparent OLED technology by LG and SPD technology that was produced by GALS. And the implementation of this was extremely well done. I mean, you could see the vibrancy added to the augmented reality display by using SPD and the windshield. Joe, are you still there?

Some of these things are going.

One specialty vehicle for example at CES that slot.

For production next year and.

And it's not a car.

<unk> incorporated a novel approach to augmented reality in the windshield.

And a key part of this was made possible by a combination of transparent OLED technology by LG.

And SPD technology that was produced by Galaxy.

And the implementation of this was extremely well done.

You can see the vibrancy added to the augmented reality display by using SPD and the windshield.

Yes.

Joe are you still there.

Joe Harary: Late. Okay, now I'm back. I'm back.

Ladies and gentlemen, please standby.

Mr. Hari again, please standby we have lost Mr. <unk> and he is okay now I'm back I'm back I apologize.

Joe Harary: I apologize. So, what I was saying is that at CES, there was a specialty vehicle, it's not a car. It was an augmented reality windshield that was made possible because of the combination of SPD film from Galsy and the transparent OLED technology by Lucky LG Group. And it was extremely well done.

So what I was saying is at CES, there was a specialty vehicle, but it's not a car.

And.

It was an augmented reality windshield.

That was made possible because of the combination of SPD film from Galaxy.

And the transparent OLED technology by Lucky LG group.

And.

It was extremely well done and you could see the vibrancy that.

Joe Harary: And you could see the vibrancy that added the the experience that happened with the augmented reality display by using the SPD film and the windshield. This product got a lot of attention in general, and at one point when I was at the booth of this company, the chairman of their South Korean parent corporation came to pay tribute to this vehicle, and he didn't know who I was. I was standing on the side, and I was watching him.

Added the.

That happened with the augmented reality display by using SPD film in the windshield.

This product got a lot of attention in general and at one point when I was at the booths of this company the chairman of the South Korean parent Corporation.

Came to pay tribute to the vehicle.

And he didn't know who it was I was standing on the side and I was watching and he even politely and reverently bowed towards it.

Joe Harary: He even politely and reverently bowed towards it while I was there. And it even made the show newsletter as the What's Hot at CES product on day two of the show, and, While SPD was not mentioned in the public articles about that, we're hoping to be able to talk about this in more detail when we and GALSI have permission for that. But it gives you an idea of some of the things that are very pleasant surprises when you go to some of these shows. So we pay very much attention, and we try to attend all the major trade shows for a variety of reasons, including that. And just so there's no misunderstanding, even though this company is owned by a South Korean company, I'm not referring to the Asian car that we expected towards the end of last year with SPD. That's totally different and very much on track and going through its final development stages. Prior to launch,

Is there and it even made the show newsletter as the what's hard at CES product on day two of the show.

And.

While SPD was not mentioned.

In the public articles about that.

We're hoping to be able to talk about this in more detail when we when.

When we in <unk> have permission on that but it gives you an idea of some of the things that are very pleasant surprises. When you go to some of these shows so we pay very much attention and we tried to return all of the major trade shows for a variety of reasons, including that.

And just so there's no misunderstanding even though this company is owned by a South Korean company.

I'm not referring to the Asian car that we expected towards the end of last year with SPD, that's totally different and very much on track.

Going through its final development stages.

Joe Harary: But, um, and that promises to be a very exciting project because the cost to the manufacturer of our technology has come down so much as to make it feasible for inclusion in a relatively moderately priced vehicle. And that, of course, bodes well for SPD's smart technology being incorporated in much higher volumes across the middle market cars throughout the world. But, you know, pay attention to trade shows, and I think that you'll get some, you know, very good information as to what's going on. Sorry for that long winded answer, Dr. Berman, but I appreciate that.

Prior to launch.

But.

And that promises to be a very exciting project because the cost to the manufacturer of our technology has come down so much as to make it feasible for inclusion in a relatively moderately priced vehicle.

And that of course bodes well for SPD smart technology being incorporated in much higher volumes across the middle market cars throughout the world but.

Pay attention to trade shows and I think thats.

You'll get some.

Very good information as to what's going on.

Okay, sorry for that long winded answer Dr Berman, but I.

I appreciate that and honestly I think I think Jess Jess I think shareholders are volatile.

Joe Harary: And honestly, I think just what shareholders have also noticed is a substantial increase. And just commentary, both mostly by Gowsey, just looking at their social media page, they they've seem to be every couple of days, they mentioned something at Citi. So I think I think this is, and I want to say this is the time. And I'm hoping it is, but it appears that things are more ready than ever before. And yeah, look, you know, good luck to shareholders, and I think I think we're on the right track. So, and thanks for noticing, and thanks for noticing the increased frequency of the communications by GOWSI. Like us, we try to say as much as we can when we have permission, and I think you probably have surmised that the frequency that we communicate with GOWSI is very often.

Cancel increase.

And jet commentary, both mostly by Galaxy.

Just looking at their social media age they seem to be every couple of days I mentioned, something so I think I think this is.

And when I say this at the time.

And I'm, hoping it is but it appears that.

Things are more ready than ever before.

And yes look good luck to shareholders and I think I think we're on a right track so thanks.

Thanks, Thanks, and thanks for noticing and thanks for noticing the increased frequency of the communications by gallons.

Like us we try to say as much as we can when we have permission.

And.

I think you've probably have surmised that the frequency that we communicate with galaxy is very often I mean, it was much less when it was just to talk to you making film, but <unk> just been a wonderful partner, both in making film and in products in them.

Joe Harary: I mean, it was much less when it was just Hitachi making films, but GOWSI has just been a wonderful partner, both in making films and in products, and unlocking new industries and things like that. And they're very visionary and very dedicated to this, and their future is betting on SPD. So we work very closely together, and they were in New York 10 days ago. They're coming back to New York. I've met with them in Israel, I met with them in France, and I met with them in Germany.

<unk>, new industries, and things like that and they're very visionary and very dedicated to this in the future is betting on SPD. So.

We work very closely together and.

They are in New York.

10 days ago, Theyre coming back to New York.

I've met with them in Israel, I met with them in France, I met one that mature many.

Joe Harary: You know, there's just a wealth of opportunity for our industry. And, you know, they and we are very much at the center of that. So, but thanks for noticing that they've become a lot more visible in it. Well, I appreciate it, Joe.

There's just a wealth of opportunity for our industry.

And then we are very much at the center of that so but thanks for noticing.

<unk> become a lot more visible about this yes.

Well I appreciate it thank you.

Joe Harary: Thank you. Thank you. Thanks a lot.

Thanks, a lot.

Thanks.

Our next question comes from Mike Celnik invest.

Investor.

Joe Harary: Unknown Speaker: Thank you. Hi Joe. Hey, Mike, good to hear from you. You too, and I've just been reading your latest report that was posted about an hour ago, and I see that revenues are up 109%. That's what we like to see. That's good. I like triple digits.

Your line is open.

Thank you Hi, Joe.

Hey, Mike good to hear from you.

And you too.

<unk> just been reading your latest report that.

It was posted about an hour ago.

I see.

Revenues are up by 109%, that's what we like to see that that's good.

I like triple digits Yep.

Joe Harary: Yep. The question I have has to do with Boeing and Airbus. I read the other day in the newspaper that... Both companies, and I think some other airlines as well. Unknown Speaker.

Question I have has to do with Boeing and Airbus.

I read the other day in the newspaper that.

Both companies.

And I think some other airlines as well.

Joe Harary: Both companies have received orders from major airlines for hundreds of passenger jets. Large Passenger Jet

Both companies have received orders from major airlines for hundreds of <unk>.

Passenger jets large passenger jets.

Joe Harary: Unknown Attendee, what do you think the prospects are that these orders using SPD will be successful on their windows? Oh, I think they're quite good. And it's a great question. Let me kind of go a little deeper into why I think that. So if we take, for example, The Automotive Market. When Mercedes and Research Frontiers were developing the SPD smart glass product for the SLK, we had blinders on. We were just focusing on doing everything possible to make sure that Mercedes was happy.

What do you think the prospects are that are on.

These orders.

Using SPD <unk>.

And they are windows.

Oh I think they are quite good and it's a great question, let me kind of go a little deeper into why I think that.

So if we take for example.

The automotive market.

When Mercedes and research Frontiers was developing the SPD smart glass product for the S. L K.

Blinders on we were just focusing on doing everything possible to make sure that Mercedes was happy and there was a good strategy because we knew that if they were happy and they have a very good reputation for quality assurance and production in <unk>.

Joe Harary: And it was a good strategy because we knew that if they were happy and they had a very good reputation for quality assurance, production, and innovation, that everyone else would follow. And then you started to see all the other industries fall into place nicely after that. So it was a good strategy to focus on making your launch customer happy. And once it was validated for automotive use, more and more companies like McLaren and General Motors jumped on board because they knew that it was something they could reliably and safely put in their cars. And the same thing with aircraft. I think one of the significant things that happened this year is that we've been chosen for transport category aircraft. You know, the big ones, the big air.

Innovation that everyone else would follow and then you started to see all the other industries fall into place nicely. After that so it was a good strategy to focus on making your launch customer happy.

And once it was validated for automotive use.

More and more companies like Mclaren and general Motors and everyone jumped on board because they knew that it was something they could reliably and safely put in their cars.

And the same thing with aircrafts.

Think one of the significant things that happened this year.

Is that we've been chosen for transport category aircraft.

The big ones the big aircraft.

Joe Harary: And the other thing that I think is significant is that we've gone from being pushed by manufacturers on their customers, that's what they were doing at Boeing and Airbus before, to having the customer decide what technology they want in the aircraft. So, you now have a technology that's been validated. It's in a number of different aircraft, and it's been reliably flying for decades.

And the other thing that I think is significant is that we've.

Gone from being.

Pushed.

By customer by manufacturers on their customers, that's what they were doing at Boeing and Airbus before having the customer decide what technology they want in the aircrafts.

No.

You now have a technology that's been validated its in a number of different aircraft and its been reliably flying for decades.

Joe Harary: And, and you have something that performs better than the current electrochromics that are, You know, two second switching speed with no iris effect compared to a minute and a half for an electrochromic window. So you have something that the customers can see is a much better performing aircraft and Greater Dynamic Range, just a whole host of things, right? So we're excited about that because, when judged on the merits, I don't think there's any reason not to use SPD in an aircraft. And it doesn't have some of the things that, you know, if you go on YouTube, you can see windows that are heating up and catching fire and cracking and doing things with other technologies, because they're more like a battery. And, you know, when a battery gets damaged, it gets hot, you know. Think about your cell phone battery.

And you have something that performs better than the current electrochromic set over there.

Two second switching speed with no iris effect compared to a minute and a half for an electrochromic window to switch.

So you have something that the customers can see it's a much better performing.

Aircraft window.

And <unk>.

Greater dynamic range, just a whole host of things right. So we're excited about that because when judged on the merits I don't think there's any reason not to use SPD and in aircrafts and it doesn't have some of the things that you know if you go on Youtube you could see windows that are heating up and catching fire in cracking and doing things.

With other technologies, because they're more like a battery and you know what.

The battery gets damaged it gets hot think about yourself phone battery.

Joe Harary: So I think that there's a lot of things that are pointing to great success in the aircraft industry and especially the transport category. So, you know, Airbus and Boeing are significant developments, and they're going to have legs. Good to hear. Let's hope that those contacts with those two companies will play out. Thank you, Joe. We stay in good shape with everyone.

So.

I think that Theres, a lot of things that are pointing towards.

Great success in the aircraft industry, and especially the transport category aircraft industry.

So.

Airbus and Boeing I think are significant developments and theyre going to have legs.

Good to hear.

Well, let's hope those.

Those contacts with.

With those two companies.

Out of this year.

We stay in good shape with everyone. Thank you Mike.

Joe Harary: Thank you, Mike. Hi, Joe. How are you? Hey, Dr. Denny, how are you?

Yeah.

Thank you.

Our next question comes from Bruce Danny private Investor.

Your line is open.

Hi, Joe how are you.

Joe Harary: Farewell, thanks. Hey, just one question. Congratulations on everything's going on. My question, I think I've asked in past conference calls. But it always seems like a no-brainer to me to couple the transparent solar cell with our window application. Has anyone ever looked into this that you know of?

Hey, Dr. Danny how are you.

Very well thanks.

Just one question congratulations on everything else going on.

My question was I think about that.

I've asked then.

On past conference calls.

But it always seems like a no brainer to me two couple of D.

Transparent solar cells with our window applications.

Has anyone ever looked into this.

Yes.

Joe Harary: Yes. So, let me give you a couple of examples where it's been successfully implemented. Vision Systems had an aircraft window that generated 20 times as much power as the window needed to operate using transparent photovoltaics. And because of that, they actually put a charging port so you could charge your phone on the aircraft window using a USB port. With the retrofit application, that's something that we're very much looking into is the combination of photovoltaics with SPD. Because if you think about it, then you don't need to have an electrician come to the job site when you're doing the retrofit.

Yes, So let me give you a couple of examples where it has been successfully implemented vision systems had a aircraft window that generated 20 times as much power as the window needed to operate using transparent photovoltaics.

And because of that they actually put a charging ports. So you could charge your phone.

On the aircraft window with a USB port.

With the retrofit application that's something that we're very much looking into is the combination of photovoltaics with SPD because if you think about it then you don't need to have an electrician come to the job site when youre doing the retrofit.

Joe Harary: Unknown Speaker Even in a commercial inflation, you just pop it into the window, and you're good to go. So, and we actually had discussions about that two days ago. Also about that. So yeah, this is very much in the plan. Excellent. So glad to hear it.

Is that even in a commercial installation you just pop it into the window and you're good to go so.

And we actually had discussions about that two days ago.

Also Bob out.

About that so yes. This is this is very much in the plants.

Excellent so glad to hear it. Thank you so much Joe thanks.

Joe Harary: Thank you so much, Joe. Thanks a lot, Line. I'll go. Hey Jeff, how are you?

Thanks, a lot.

Our next question comes from Jeff Harvey a private investor.

Line is open.

Hi, Joe.

Hey, Jeff how are you.

Joe Harary: Good. On your last conference call, you did mention that the car wasn't going to happen until the second half of the year. Yeah, so has that changed any, or do you still anticipate the Asian car in the second half of last year? It was the second half of last year was the, was the, was the original expectation.

Good.

Last conference call you did mentioned that any car.

It wasn't going to happen until the second half of the year.

So he has that changed any are you still anticipate the Asian carrier in the second half of the year.

What was the second half of last year was the.

Was the.

Was the original expectation and then then we basically said well based on what we know it's probably going to be the first half of this year and you know.

Joe Harary: And then, we basically said, well, based on what we know, it's probably going to be the first half of this year. And, you know, my expectation is we're very much on track. But with everything else that kind of caused the delay in the car that wasn't related to SPD, you know, I don't want to pin it down too much.

My expectation is we're very much on track, but with everything else that kind of caused the delay in the car that wasn't related to SPD.

I don't want to.

Joe Harary: But, you know, believe me, when the car company and, you know, implements it, we're all going to be thrilled. So one thing you haven't talked about at all is the display market, which you talked about, I think, last. Isn't there some, isn't there anything going on in the display market? I know you talked about Oh, yeah, or Oh, yeah, no.

Pin it down too much but.

Believe me when when the car company and <unk>.

Implements it we're all going to be thrilled.

So one thing you haven't talked about it all the display market, where he talked about I think last time isn't.

Isn't there isn't there anything going on in the display market I know you talked about Oh, yeah for.

Oh, Yeah, no. So one of the things that.

Joe Harary: So one of the things that we talked about in the past is windows that incorporate a display inside the glass using a combination of either electroluminescent displays and gals, gals, the vision systems have been doing that for years. And things like aircraft windows and train windows and bus windows for years. And then more recently, using transparent OLEDs with an Unknown Attendee, with SPD film to make a very vibrant display. And that's what I was talking about at CES, the specialty vehicle that had an augmented reality display. It was, you know, it was a display that combined transparent OLEDs and an SPD film. And it was just really amazing to look at. I mean, I, you know, it wasn't only me, but the press loved it too.

That we've talked about in the past as windows that incorporate a display.

Inside the glass using a combination of either electro luminescent displays in cows Gal Z vision systems is doing been doing that and.

Things like aircraft Windows in train Windows and bus Windows for years, and then more recently using transparent OLED ads with.

With SPD film to make a very vibrant display and that's what I was talking about at CES.

The specialty vehicle that had an augmented reality display it was a it was a display that.

Combined transparent OLED <unk>.

And SPD film and it was just really amazed.

Amazing to look at I mean I.

What's not only me, but the press loved it too.

Joe Harary: Well, when can we expect to see some business? Well, they're talking about that vehicle coming out next year. And I'm talking about between that in a window, like in a department store. I could come out any time.

But when can we expect to see some business from that.

Well they are talking about that vehicle coming out next year.

No I'm talking about between that display.

A window.

<unk> store.

And that could come at anytime.

Joe Harary: That's just a matter of implementation. And if you look at the kind of frequency that LG, who's kind of leading the charge on that, has been exhibiting this, If you walked around CES, you'd see about four or five different booths from different companies that had transparent OLEDs that, you know, are being used to display things. And when you want that display to be vibrant, you would use SPD, especially if there's ambient light that can wash it out. But do you know that any of those have actually been installed? Oh, there have been, there have been installations, but a lot of that I wouldn't consider high volume. In the past, before LG went into this, they did museums and all sorts of things that, you know, we're combining this, and because of the success of that, they did more. And now they're putting it into more mainstream stuff.

It's just a matter of implementation and if you look at kind of the frequency that LG who's kind of leading the charge on that.

Has been exhibiting this if you went if you walked around C. Yes, you'd see about.

Four or five different foods from different companies that had transparent OLED does that.

We're being used to display things and when you want that display to be vibrant you would use SPD, especially if theres ambient light wash it out but do you know that any of that has actually been installed.

Oh, there been there've been installations, but a lot of that I wouldn't consider high volume.

In the past before LG went into this they did museums and all sorts of things that.

We are.

Combining this and because of the success of that they did more.

And now they're putting it into more mainstream stuff.

Joe Harary: But it's not something that we have predicted. Okay, when do you think we'll actually get some architectural business? I mean, I'm very disappointed that that hasn't happened sooner.

So when do you get but it's not something that we have prediction.

Okay. When do you think we actually get some architectural business I'm very disappointed that that hasn't happened sooner I mean as you know we got I don't know if you heard the earlier I don't know if you heard the earlier part of the call, but there's three three pronged we're going after an architectural one is the hard to hard to shade areas like skylights and then the <unk>.

Joe Harary: I mean, as you know, we got, I don't know if you heard the earlier part of the call, but there are three, three prongs we're going after in architecture. One is the hard to hard to shade areas like skylights. And then the second is government.

Second is government and the third is traditional homes offices and apartments and a game changer on that is the retrofit application.

Joe Harary: And the third is traditional homes, offices, and apartments. And the game changer for that is the retrofit application. You could have sales this year; you could have sales this year, and that, and all of those areas, were last year. It's just, it's a, especially with the retrofit, makes, a lot of sense. The retrofit is really ready now. I live in a house that had, I'm in a climate where everybody has skylights, and I had to spend lots of money to put shades up and all my skylights.

I think you could have sales. This year you could have sales this year in that.

And all of those areas.

Last year end.

Hey.

It's a.

Especially with the retrofit makes it makes a lot of sense.

And I have been the retrofit is really ready now.

I live in a house that had in a climate, where everybody has skylights and I had to spend lots of money to.

But shade that but all my skylight.

Joe Harary: So, It would be great if somebody like Budget Blinds could carry an SBD line that you could go and get and put up. Cover your Skylight. Thinking of a budget blind is the right entry into the market because you have a race to the bottom in terms of innovation and profitability. Your point is well taken that SPD would be a great solution for it. When you consider what your traditional motorized shades in a skylight would cost and also the fact that if you live in an area where there's snow, you can't put these shades on the outside of the skylight.

No.

Be great if somebody like budget blinds can carry.

SPD line that did you go and get and put up in.

February your skylights right right.

Although I don't I don't know a budget lines is the right entre into the market. Because then you kind of a race to the bottom in terms of innovation and profitability, but but but but your point is well taken that.

SPD would be a great solution for it and when you consider what you're <unk>.

Traditional motorized shades and a skylight with cost and also.

If you live in an area, where there's snow.

Now you can put these days on the outside of the skylight has to be on the inside so or inside the glass. So.

Joe Harary: It has to be on the inside or inside the glass. SPD doesn't have those limitations. You can put it in any environment you want.

It has to be so SPD doesn't have those limitations you can put it in any any environment you want.

Joe Harary: Speaking of the airline industry, I did see today that United has stopped ordering new planes because they don't have enough pilots, or, and they're not, well, let me put it this way, they've stopped hiring new pilots because they can't get new planes. So I'm not sure that the growth in the airline industry is going to be that great because certainly Boeing has had an awful lot of problems with everything that they've been. Oh, they certainly have. I hope, I mean, I know Airbus. I hope. I don't think that's a sustained problem.

So speaking of the airline industry I did say today that I think United has stopped ordering new planes.

Because they don't have enough pilots.

And that well, let's put it this way it stopped.

Any new pilots because they can't get new planes.

I'm not sure that the growth in the airline industry is going to be that great. Because certainly Boeing has had an awful lot of problems with everything that they've been working on but.

Suddenly have they certainly have that.

I hope I mean, I know Airbus I Hope I don't think I don't think Thats, a sustained problem I think that it's a <unk>.

Joe Harary: I think that it's a terrible PR problem. I think it's a structural problem within Boeing that needs to be addressed, but I don't think that it's a permanent problem. So I think that, you know, and believe me, there's a lot of them, but remember, Jeff, one thing to remember also: you could retrofit an existing plane with SPD. We do it all the time.

Terrible PR problem and I think it's yes.

It.

It's a structural problem within Boeing that needs to be addressed.

But I don't think that it's a permanent problem. So I think that you know.

Besides and believe me, there's a lot of the <unk>.

I remember, Jeff one thing to remember also.

You could retrofit in existing plane with SPD.

We do it all the time. So you don't have to wait for new you don't have to wait for new planes.

Joe Harary: So you don't have to wait for new planes. I'm surprised it hasn't happened because, like, when I fly down to the church in Caicos, the first thing that the stewardess says is, everybody shuts their blinds. She could just...

I'm surprised it hasn't happened because like when I fly down to the Turks and Caicos first thing that the stewardess says everybody shut their blind Shiga, just right Biogen flipping a switch flipped.

Joe Harary: Right. Imagine flipping a switch. Yeah. Flip the switch.

Joe Harary: Yeah. Right. So besides this Asian company, which is going to be a mid-priced car, are there any other manufacturers that could potentially have a mid-priced car that are going to put SPD on it? We're talking to them, yes, but I think that, you know, because of the strategic relationship that this car company has with one of our licensees, you're probably going to see them have it. Very good. Thank you, Joe. Thanks, Jeff. Good talking to you. We have, is open. I'm back.

Flip a switch right yeah yeah.

Yes.

So besides this agent company, which is going to be a mid priced car are there any other manufacturers that potential have a mid priced car that theyre going to put SPD on.

We're talking to them, yes, but I think that.

Because of the.

The strategic relationship that this car company has with one of our licensees are probably going to see them have at first.

Okay.

Very good thank you Joe.

Thanks, Jeff good talking to you.

We have a question from Leonard <unk> private investor.

Your line is open.

Joe Harary: I'm wondering, is anything going on in the industrial market with SPD? When you say the industrial market, what are you referring to? Well, I'm referring to things like, You know, people that are doing things with Bobcats and, you know, different things.

I'm back I am thank you.

Is there anything going on in the industrial market with SPD.

When you say the industrial market what are you referring to.

Well I'm referring to.

Things like.

Yeah.

People that are doing things with Bob cats.

Different things Oh, yeah. It is.

Joe Harary: Oh, yeah. It's funny you mentioned that. If you were at CES, you probably would have seen a very nice Bobcat.

You mentioned that.

If you were at CES, you probably would have seen in very nice bobcat.

Joe Harary: That's all I'm going to say about it. Okay. Okay. Yeah, hi, Joe.

All I'm going to say about it okay.

Okay.

Okay.

Yeah.

Okay.

And if there are any final questions for the question and answer session. Please press star one now.

Yes.

We have a question from Alex Alan Ginsberg.

Private Investor Your line is open.

Joe Harary: It's a follow-up question. You haven't mentioned anything about sun visors. Has there been any progress in that area? Yeah, there has, is still in development, and a lot of that is driven by when the launch customer wants to come out with something. So it's just like one launch customer has to be the first one, is that it? Yeah, I mean, there's always the possibility this could become an aftermarket. And if somebody else doesn't do it, I would probably just do it.

Yes, Hi, Joe it's a follow up question.

You haven't mentioned anything about Sun visors.

Has there been any progress.

So yes, there has still in development and a lot of that is driven by when the launch customer wants to come out with something.

So it's just like one launch customer has to be the first one is ed it.

Yes, I mean, there's always a possibility this could become a aftermarket and if somebody doesn't do it I would probably just do it but.

Joe Harary: But, you know, I have to also respect the businesses in my life. Thanks a lot. Yeah. Hi Joe. How are you doing?

I have to also respect the businesses in my licensees.

Okay. Thank you.

Thanks, a lot.

Welcome.

Our next question comes from Tom S Private Investor Your line is open.

Yes, Hi, Joe how are you doing.

Joe Harary: Hey, Tom. Oh, yeah, I was gonna ask about the car you mentioned coming out with from Asian Car there. It sounds consistent in your words, and you've been steady with it, so I do have faith it's coming this year. Without revealing too much. I know you can't reveal a lot, but could you give an idea of volume?

Hey, Tom.

Oh, Yeah, I was going to ask you about the car.

Carl you mentioned coming out with from Asian car there.

It sounds consistent in your words and its <unk> been steady with it so I do have faith, that's coming this year.

Without revealing I know you can't reveal a lot, but could you give an idea on the volume even.

Joe Harary: Not exactly an SPD, but even the car? and any anything at all, like, is it going to be a trim package or what? You know, how many we're going to get in on that volume would have SPD. They haven't I don't know what the initial, We're going to call it a test market, but the test market for a car with this volume, worldwide, is pretty high. The test volume is greater than when Mercedes had all of their cars using this. So even a test market for something with this kind of volume was a significant number.

Exactly and SPD, but even the car.

Any anything at all like is it going to be a trend package or what.

We're going to get in them that volume would have SPD they haven't.

I know what the initial.

We're going to call it a test market, but the test market for a car with this volume worldwide. The volume is pretty high.

The test volume is greater than.

When Mercedes had all of their cars using this so.

So you've been a test market for something with this kind of volume was a significant number.

Joe Harary: I also expect, though, that the royalty per car is going to be lower than Mercedes because the price of the roof to this car company is, you know, lower than what Mercedes was paying back in 2010, 2011, there, but it could be significant. So we're excited. Yeah, that's good to hear.

I also expect though that the royalty per car is going to be lower than Mercedes because the price of the roof to this car company is lower.

Slower than what Mercedes is paying back in 2010 2011.

Fair, but it can be significant so we're excited.

Yeah, and that's good to hear one follow up on that when you say the test market in the amount and all that so youre basing this test market on cars that will have SPD not just is.

Joe Harary: One follow-up on that when you say the test market and the amount and all that. So you're basing this test market on cars that will have SPD, not just, Is that like a kind of essentially a forecast of how many because not every car unless it's a standard, the forecast we were given, right, the forecast we were given for what they consider a test market, which I consider a substantial volume is pretty significant. And that's the test market forecasted for SPD, not just the volume of cars. It's the forecast.

Is that like a sign of a essentially a forecast of how many because not every car unless it's <unk>.

Standard the forecast we were given right. The forecast we were given for what they consider a test market, which which I consider substantial volume.

Is pretty significant.

And that's the tenor Michael.

Cat forecasted for SPD, not just the volume of cars, it's a forecast right now.

Joe Harary: Right, right. Now, this is the number of SPD roofs that are going to be produced. Okay, and I'm sure you probably can't say anything about if it's a might be or more leaning towards an option or trim package, or you can't say anything about that. I don't think they know, but if I was going to guess based on what I know about the way car companies implement this, they like to put things as an option because that's where they make their money, but sometimes an option could be a very high percentage take rate.

These are the number of SPD roofs that are going to be produced.

Okay, and I'm sure you probably can't say anything about it.

Might be or more leaning towards a option or trim package. When you can't say anything on that.

I don't think they know, but I would if I was going to guess based on what I know about the way car companies implement this they like to put things as an option because that's where they make their money.

But sometimes an option it could be a very high percentage take rate.

Joe Harary: If you look at McLaren versus Mercedes, the McLaren take rate for SPD is enormous. Yeah, no, I'm sorry to interrupt. I'm aware of that. I'm just thinking a trim package is technically an option. There's like a standalone option or a trim package as an option.

If you look at.

Mclaren versus Mercedes the Mclaren take rate for SPD is enormous.

Alright.

I'm aware, yes, im just thinking trim packages technically an option there is like a standalone option or a trend that sure and often trim package would be ideal.

Joe Harary: A trim package would be ideal, but I don't know if they're going to do a trim package. Yeah, I don't know if they're going to do it as part of a trim package or if they're going to do it as a standalone option or, you know, God willing, one day it'll be standard equipment because then you can totally, you know, downsize the size of your air conditioners to be, you know, a fraction of what they are. And it could be because the IX is pretty much It's So, you know, that could happen. But hopefully, we will at least get out of a trim package.

I don't know if theyre going to do a trim package, yes, I don't know if theyre going to do it as part of a trim package or if they're going to do it as a standalone option or <unk>.

Drilling one day it will be standard equipment. Because then you can totally downsize the size of your air conditioning to be you know.

Fraction of what they are and it could be because the IX is pretty much I think 95% or more of the PDL season, 95% of IX itself.

That could happen, but hopefully we at least get out of a trim package I noticed they started doing it.

Joe Harary: I noticed they started doing, you know, that in some cars too. So, well, thanks for your answers. Sure. Appreciate it. Thanks for the question. Private Investor: Hello, Joe.

Some cars too so well thanks for your answers.

Sure I appreciate it thanks for the question.

We have a question from Michael J private investor.

Line is open.

Hello, Joe I'd like to ask to.

Joe Harary: I'd like to ask, to what extent is cost still a barrier to having more organizations adopt SPD, especially the architectural one? Someone who you know posted in quite detail comparing the cost of SPD with non-SPD windows, and it seemed that there still was a great disparity in that cost. I didn't see the post, so I can't speak to what the post said, but if you look at, and if you go back to my earlier comments about why we're excited about this Asian carmaker, the price of the film, the price of the cost reduction from streamlining due to the retrofit use can be significant. And if you look at some of the costs that you're comparing it to, like let's say the sky The market's gonna decide. If someone wants it, they're going to buy it. But I don't believe in... side-by-side costs unless you have a contact.

To what extent this cost is still a barrier to having.

More organizations at that.

<unk>, especially the architectural one someone.

Well, even now posted quite quite detail comparing the cost of them.

SPD with.

SPD windows and it seems that there is still a great disparity and that cost item.

I didn't say that.

I didn't see the post so I can't speak to.

What the post said, but.

If you look at.

And if you could go back to my earlier comments about why we're excited about this Asian carmaker the price of the film and the price of.

The.

Cost reduction from streamlining due to the retrofit use.

Is it can be significant and if you look at some of the costs that you're comparing it to like let's say the skylight were cheaper than a skylight shade. So.

It depends on how you analyze the market the market is going to decide if someone wants it theyre going to buy it.

But I don't believe in that.

Side by side costs, unless you have a context.

Joe Harary: To what extent is Mercedes still using SPD in their vehicles? It seems we don't have too much information regarding its adoption in other models, so what is the status?

Alright.

Brent is Mercedes still.

Yes.

Hum.

Using SPD and the vehicles. It seems we don't have too much <unk>.

Got it.

<unk> hasn't models, so what is the status.

Joe Harary: We have a very good relationship with the people at Mercedes, and their name pops up on royalty reports from time to time. That's all I'm going to say. Thank you. Thanks a lot, Mike. Investor. Mr. Nelson, your line is open.

Savings and SBB, we have a very good relationship with the people at Mercedes and.

Their name Pops up on royalty reports from time to time, that's all I'm going to say.

Okay. Thank you.

Thanks, a lot Michael.

Yeah.

And our next question comes from Seth Nickerson private Investor Your line is open.

Joe Harary: Yeah, hi. Hi, Seth. How are you?

Mr. Nelson Your line is open.

Joe Harary: I'm doing well. I noticed on a chat board that Gorzy had posted about the MOU with OG back in January. Yeah, they've, they've, yeah, they've had, when we were talking about transparent OLED displays, that's LG providing, they have a unique technology which is a transparent form of OLED. And just to kind of show what's underneath that, so there are OLED, you know, displays out there, and typically, they're what's in your television on the wall.

Yes, hi.

Hey, Seth how are you.

I am doing Roger.

I noticed.

Hi, Chad.

Gauzy has posted.

About an Mou with LG.

Back in January.

Yes, yes.

Yes, they've had.

When we were talking about.

Transparent OLED displays.

That's LG, providing they have.

Unique technology, which is a transparent form of OLED and just to kind of go what's underneath that so theres OLED.

<expletive>.

Plays out there and typically there.

What's in your television on the wall.

Joe Harary: A transparent OLED allows you to actually put that on a clear substrate, like a piece of glass, like a window. So the idea is that you can turn a window into a television. But if you think about the optics of that, if you have that window face with daylight coming in from behind it, it's going to wash out the image. So if you now combine that transparent OLED with an SPD film, You have the ability to turn on the OLED to turn the window, if you will, into a television and block the ambient light by using an SPD film.

Transparent OLED allows you to actually.

Put that on a clear substrate like a piece of glass like a window.

So the idea is you can turn a window into a TV.

But if you think about the optics of that if you have that window faced with daylight coming in from behind it it's going to wash out the image.

So if he now combined that transparent OLED with an SPD film.

You have the ability to.

Turn on the OLED to turn.

Window, if you will into a TV.

And block the ambient light by using an SPD film. So all of a sudden you go from having a washed out television image to a vibrant clear one.

Joe Harary: So all of a sudden, you go from having a washed out television image to a vibrant, clear one. And then, let's say you want to turn that window, that television, back into a clear window. You would clear the SPD film and turn off the OLED.

And then let's say you want to turn that window that TV back into a clear window.

You would clear up the SPD film and turn off the OLED.

Joe Harary: And you have a clear window. So that's the idea, you know, and it's quite remarkable when you see it in practice. And, you know, as I mentioned when we were at CES, there were flat panel displays that had the combination of transparent OLED and SPD film and, you know, a Gauzy's booth and elsewhere, but also, they had an augmented reality windshield where you imagine a piece of construction equipment, for example, and superimposed on the windshield was where all the gas and electrical lines were on the site that you're digging. So you can see as you're digging where the areas you need to avoid are.

And you have a clear window. So that's the idea.

It's quite remarkable when you see it in practice and as.

As I mentioned when we were at CES there was.

Flat panel displays that had the combination.

Transparent OLED in SPD film.

At Galaxy's booths and elsewhere, but also they had an augmented reality.

Windshield.

Sure.

Imagine a piece of construction equipment for example, and superimposed on the windshield was.

Was where all the gas and electrical lines were on the site that youre digging.

C.

As you're digging where the areas you need to avoid.

Joe Harary: Well, you know, if you're on a construction site, and you know there's daylight, it may be hard to read what's on your windshield. So now, with the combination of SPV and transparent OLEDs, you can see quite clearly where the lines are, where the gas lines are, and what to avoid. It was actually kind of cool, too, because they have external cameras on these construction equipment. And you could actually, with a gesture of your hand, move the display over to the side. So let's say you're digging and you want to see where you're digging. You'd look at the camera because sometimes there are blind spots, and the camera would help you.

Well you know if you're on a construction site and there's daylight it maybe hard to read what's on your windshield.

Now with the combination of SPD and transparent OLED <unk>, you can see quite clearly.

The lines, where where the gas lines where want to avoid.

It was actually kind of cool too because they have <unk>.

External cameras on these construction equipment.

And you can actually with a gesture of your hand move the display over to the side. So, let's say you're digging and you want to see where youre digging you'd look at the camera because sometimes there's blind spots and the camera would help you, but let's say it's getting in the way of you doing your job, you're just kind of just touch the screen and swipe it to the side and.

Joe Harary: But let's say it's getting in the way of you doing your job; you just kind of just touch the screen and swipe it to the side, and you know, it's very much like Minority Report, where you can play with these things in real time. So it was quite remarkable. And LG and Gauzy have been working together on this combination for quite a while, and I had encouraged them to do that because we saw that there was some real traction in that market. You know, I was watching the LG CES thing. And at 32 minutes, they brought out their second LED, and they had that silly black screen come up from the bottom. I remember what cause he had, and it seemed like the answer.

It's very much like minority report, where you can just.

With these things in real time.

So it was a quite remarkable in.

LG and Gals, we had been working together on this combination for quite a while.

And I would encourage them to do that because we saw that there was some real traction in that market.

I was watching the LG ges.

And at 32 minutes they brought out there.

And they had that showing black screens Hamastan, Nevada.

I remember we're glad he had.

Like the answer.

Joe Harary: I'm just surprised with the stock languishing below a dollar at times that you wouldn't make a press release about that. Even if we could, if we could make a press release about things, we certainly would. A lot of times we're specifically asked not to or not now, and you have to respect the custom.

Right exactly.

Exactly.

So it's a SaaS languishing like below a dollar at times.

Wouldn't make a press release about that true even if we could.

Yeah.

Could make a press release about things, we certainly would a lot of times, we're specifically asked.

Not to or not now.

And you have to respect the customer.

Joe Harary: True. Okay. Thank you. But Gauzy and I would love nothing more than to be able to talk about that.

Okay. Thank you, but Gaza and I would love nothing more than to be able to talk about that.

Joe Harary: All right, that's that's all I've got. Thank you, Joe. Thanks. Thanks a lot.

Alright, Thanks, that's all I've got it thank you Joe.

Joe Harary: Okay. Thanks. Thanks, Paul.

Thanks, a lot.

And see no further questions I will turn the call back over to Charles.

Thanks, Thanks, Paul and remember if we've not fully answered any questions that were emailed or asked today, just email us and well do our best.

Joe Harary: And remember, if we've not fully answered any questions that were emailed or asked today, just email us, and we'll do our best. Now, a couple of closing remarks. This past year has been transformative for Research Frontiers, marked by financial growth, Strategic Expansions, Innovative Breakthroughs, and New Uses for SPD Smart Glass Technology. And as we look forward, we are committed to continuing this momentum, improving the way people live, work, and get around, and enhancing our global impact. In the past year, Research Frontiers achieved significant accomplishments, including a 109% increase in revenues and a reduction in costs, moving us much closer to profitability.

A couple of closing remarks.

This past year has been transformative for research frontiers marked by financial growth strategic.

Expansions and innovative breakthroughs in new uses for SPD Smart glass technology.

And as we look forward, we are committed to continuing this momentum improving the way people live work and get around and enhancing our global impact.

In the past year research frontiers achieved significant accomplishments, including a 109% increase in revenues and a reduction in costs moving us much closer to profitability.

Joe Harary: The company solidified its market leadership in the smart glass industry, expanded its collective global footprint, and diversified its product applications across automotive, aircraft, and architectural sections, as well as augmented reality and other advanced uses of SPD smart glass technology. Other notable achievements include the introduction of SPD technology in Boeing and Airbus aircraft and the development of the SPD smart glass retrofit solution and triple-digit percentage growth in automotive royalties. A few weeks ago, market research from firm S&S Insider reported that in the smart glass market, quote, the transportation application segment holds a considerable market share of around 48% in 2022, driven by automakers' inclination towards adopting SPD glass, especially in luxury cars. First, let me say it's nice to have our technology accurately and specifically mentioned by name as the leader in the automotive smart glass market. Uh, and as we know, noted their conclusion about the dominance of in the transportation section held true not only in 2022 but, based upon the numbers we just reported for 2023 as well.

The company has solidified its market leadership in the smart glass industry.

Expanded its collective global footprint and diversified its product applications across automotive aircraft and architectural sections as well as augmented reality and other advanced uses of SPD Smart glass technology.

Other notable achievements include the introduction of SPD technology, and Boeing and Airbus aircraft and the development of the SPD Smart glass retrofit out solution and triple digit percentage growth in automotive royalties.

A few weeks ago, the market research from firm SNS insider reported that in the smart glass market quote the transportation applications segment holds a considerable market share of around 48% in 2022, driven by automakers inclination towards adopting SPD glass.

Especially in luxury cars.

Well first let me say nice to have our technology accurately and specifically mentioned by name as the leader in the automotive smart glass market.

And as we note noted their conclusion about the dominance of the transportation section all true not only in 2022, but based upon the numbers, we just reported for 2023 as well.

Joe Harary: And in 2024 and beyond, there may be new markets for SPD that dwarf and build upon our current one. We and our licensees will relentlessly pursue those opportunities as well. We all have an incentive to do that.

And in 2024 and beyond there may be new markets for SPD that dwarf and build upon our current ones.

We get our licensees will relentlessly pursue those opportunities as well.

We all have an incentive to do that.

Joe Harary: This past year, we have gotten into both Boeing and Airbus aircraft for the first time. We've also expanded the number of car models from first Mercedes and then to McLaren and then to General Motors and then to Ferrari. We're looking forward to an upcoming introduction in Asia for the middle market as well as SPD smart glass being introduced in new cars produced in Europe. Our focus has been, and will continue to be, to help our licensees introduce new products into markets, which means hard and coordinated work to meet the time frame of existing customers and also to introduce and constantly push new products across the finish line. All of this is with one goal in mind.

This past year, we have gotten into both Boeing and Airbus aircraft for the first time. We've also expanded the number of car models from first Mercedes and then to Mclaren and then to General Motors and then to Ferrari.

We're looking forward to an upcoming introduction in Asia for the middle market as well as SPD smart glass being introduced in new cars produced in Europe.

Our focus has been and will continue to be to help our licensees introduce new products into markets, which means hard and coordinated work to meet the timeframe of existing customers and also to introduce and constantly push new products across the finish line.

All of this with one goal in mind.

Joe Harary: Growing revenue and becoming significantly profitable. We have made tremendous progress over this past year, significantly increasing our revenues and moving closer to profitability. With the strong growth we're seeing in automotive applications, our expansion into major aircraft manufacturers like Boeing and Airbus, notably through decisions to use our technology by their customers, and the enormous potential of the architectural market, we are well positioned for continued revenue growth in 2024 and beyond. Our strategic partnership with Gauzy has allowed us to increase production efficiencies, reduce costs, ease logistics, expand our product offerings, and enter into new products and applications. Our collective global presence gives us an important competitive advantage. The lawsuit victory we achieved helps solidify and validates the intellectual property position we've built over decades of research and development.

Growing revenue and becoming significantly profitable.

We have made tremendous progress over this past year significantly increasing our revenues and moving closer towards profitability with.

With the strong growth, we're seeing in automotive applications, our expansion into major aircraft manufacturers like Boeing and Airbus, notably through decisions to use our technology by their customers.

And the enormous potential of the architectural market.

We are well positioned for continued revenue growth in 2024 and beyond.

Our strategic partnership with <unk> has allowed us to increase production efficiencies reduce costs is logistics and expand our product offerings and enter into new products and applications.

Our collective global presence gives us an important competitive advantage.

The lawsuit victory, we achieved helps solidify invalidates the intellectual property position, we've built over decades of research and development.

Joe Harary: The federal court's ruling on the licensee IP provision in our contracts is a significant precedent that strengthens our intellectual property portfolio and adds value to what we can do for our licensees. We continue to make advancements to our SPD technology, including developing color-neutral particles that can further enhance the aesthetics and market opportunity. Product and market innovation remains a key priority, with rising energy costs, government incentives for energy efficient buildings, and growing demand for user-controllable tinted glass. The market outlook for smart glass remains extremely promising across the automotive, aerospace, architectural, and other sectors. And now, more real-world examples have been practically demonstrated to show how our SPD smart technology can be used in new applications. Such as adaptive headlights and heads-up displays such as the ones that BMW developed and demonstrated at last year's CEA and the augmented reality displays that this year brings. Looking ahead, we're poised for even greater success. A robust pipeline of new products and technologies promises to revolutionize the way SPD Smart Glass impacts our daily lives and the environment. Research Frontiers is a clear innovation leader and the most diversified player in the smart glass industry. Our patented SPD-SMART technology provides proven performance advantages over competitors.

The federal courts ruling on the licensee IP provision in our contracts is a significant precedent that strengthens our intellectual property portfolio and adds value to what we can do for our licensees.

We continue to make advancements to our SPD technology, including developing color neutral particles that can further enhance the aesthetics and market opportunities.

Product in the market innovation remains a key priority.

With rising energy costs government incentives for energy efficient buildings and growing demand for user controllable tinted glass.

Market outlook for smart glass remains extremely promising across the automotive aerospace architectural and other sections.

And now more real world examples have been practically demonstrate demonstrated to show how our SPD smart technology can be used in new applications.

Such as adaptive headlights, and heads up displays such as the ones that BMW developed and demonstrated at last year's CES and the augmented reality displays at this year's CES.

Looking ahead, we are poised for even greater success.

Our robust pipeline of new products and technologies promises to revolutionize the way SPD smart glass impacts our daily lives and the environment.

Research frontiers as the clear innovation leader and the most diversified player in the smart glass industry, our patented an SPD smart technology provides proven performance advantages over competitors.

Joe Harary: We have built a global licensing network and portfolio of cutting-edge products that are used. 2023 was a year of substantial progress, and we have positioned the company for accelerated growth and financial success in the years ahead. We remain intently focused on execution, innovation, and driving shareholder value. We remain committed to substantially pushing the boundaries of what is possible and enhancing shareholder value in the process. Our journey together continues, and I'm excited about what the future holds for Research Frontiers and our stakeholders. Thank you to everyone who has contributed to our journey thus far. Your support, dedication, and belief in our vision and mission have been instrumental in our success. I look forward to working together to achieve our goals and set new and more ambitious benchmarks in the years ahead.

We have built a global licensing network and portfolio of cutting edge products that were used him.

2023 was a year of substantial progress and we have positioned the company for accelerated growth and financial success in the years ahead.

We remain intently focused on execution innovation and driving shareholder value.

We remain committed to substantially pushing the boundaries of what is possible and enhancing shareholder value.

In the process our journey together continues and I am excited about what the future holds for research frontiers and our stakeholders.

Thank you to everyone, who has contributed to our journey, thus far thus far you.

Your support.

Dedication and belief in our vision and mission have been instrumental in our success.

I look forward to working together to achieve our goals and set new and more ambitious benchmarks in the years to come thank.

Thank you.

That concludes today's conference call. Thank you for attending and have a pleasant day.

Okay.

[music].

Operator: Thank you, there. The host has ended this call. Goodbye.

The House has ended this call goodbye.