Q3 2024 Research Frontiers Inc Earnings Call
Speaker Change: Good afternoon ladies and gentlemen. Welcome to the Research Frontiers Investor Conference Call to discuss the third quarter of 2024 results of operations and recent developments.
Speaker Change: During today's presentation, all parties will be in a listen-only mode, and following the presentation, the conference will be open for questions by pressing star 1.
Speaker Change: This conference is being recorded today. A replay of this conference call will be available starting later today in the investor section of Research Frontiers' website at www.smartglass.com and will be available for replay for the next 90 days.
Speaker Change: Please note that some of the comments made today may contain forward-looking information. The words expect, anticipate, plans, forecast, and similar expressions are intended to identify forward-looking statements.
Speaker Change: Statements that are not historical facts are forward-looking statements that are made pursuant to applicable safe harbor provisions. These statements reflect the company's current beliefs and a number of important factors that could cause actual results for future periods to differ materially from those expressed.
Speaker Change: Significant factors that could cause results to differ from those anticipated are described in our filings with the SEC.
Speaker Change: Research Frontiers undertakes no obligation to update or revise the forward-looking statements to reflect new events or uncertainties.
Speaker Change: The company will be answering many of the questions that were emailed to it prior to this conference call, either in the presentation or as part of the Q&A session at the end.
Speaker Change: In some cases, the company has responded directly to email questions prior to this call or will do so afterwards, in order to answer more questions of general interest to shareholders on this call.
Speaker Change: If you find that your question has been substantially answered, as a courtesy and to allow time for other shareholders to ask their questions, please remove yourself from the queue by pressing star 2. Also, we ask that you keep your questions brief in the interest of time.
Speaker Change: I'll now turn the call over to Joe Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.
Joe Harary: Thank you, Eric, and hello, everyone, and welcome to our third quarter of 2024 Investor Conference Call.
Joe Harary: As we anticipated in previous calls based upon the leading indicators that we typically look at, we saw strong momentum this quarter.
Joe Harary: Compared to Q3 last year, royalty income grew over 115%, fueled by triple-digit growth in our two largest markets, the automotive and aircraft markets.
Joe Harary: For the first nine months of this year, royalty income rose by over 93% compared to the same period last year.
Joe Harary: This was driven by double-digit percentage growth in the aircraft and architectural markets and triple-digit percentage growth in our largest market, the automotive market.
Joe Harary: In fact, we're on track to almost double the number of roofs sold to Ferrari and triple the number of roofs sold to McLaren compared to last year.
Joe Harary: This marks our seventh consecutive quarter of revenue growth, and looking ahead, we expect to finish the year with double-digit revenue growth over last year.
Joe Harary: In fact, as of the end of the third quarter of this year, we have already surpassed revenues for all of last year.
Joe Harary: Our expenses were down by $92,000 this quarter alone and by over $150,000 over the nine months.
Joe Harary: With higher revenues and lower expenses, our quarterly net loss is one third of last year, and for the full nine months is about half, translating to zero cents or almost break even per share for the quarter, and two cents per share for the full nine months.
Joe Harary: Barring strategic reasons, we do not anticipate needing additional capital in the near term. We remain debt-free with over 1.65 million dollars in cash and stable working capital sufficient for more than five years of operations.
Joe Harary: Now let's break down these results by market so we can all better understand where we are and what we could all expect.
Joe Harary: There has been a steady march forward in the automotive and aircraft industries towards the adoption of RSPD smart glass technology.
Joe Harary: starting with Mercedes, then McLaren, then Ferrari, and now this quarter, Cadillac.
Joe Harary: In aircraft, our bread and butter were SPD Smart EDW windows and turboprops like the King Air, and jets like the HondaJet, and now much larger aircraft from Daher, Dassault, and especially Boeing and Airbus aircraft,
all with far more windows per plane.
Joe Harary: And more vehicle introductions using SPD technology are expected as early as this coming year.
Joe Harary: Sales of cars using our SBD smart glass technology at Ferrari and McLaren remain quite strong and Cadillac is just starting now.
Joe Harary: An extremely high percentage of Ferrari customers and McLaren customers are all opting for the SPD Smart Glass Roof. And the SPD Smart Glass Roof is standard on the Cadillac Celestic.
Joe Harary: We are on track to almost double the number of roofs sold to Ferrari and triple the number of roofs sold to McLaren compared to last year.
Joe Harary: So, there are excellent results with existing models as SBD smart glass roof options become more and more popular on the cars that offer it.
Now regarding new customers and new models.
Joe Harary: After good meetings in Asia in August, and in Europe starting in September and October, and more recently this week, I am quite optimistic that we will see multiple new car models with SPD SmartGlass come out as early as 2025 from car makers in these different regions of the world.
Joe Harary: What's particularly exciting is that the manufacturing cost of products using our technology has decreased significantly, making it feasible for use for the first time in moderately priced vehicles.
Joe Harary: This creates opportunities for higher volumes of SPD smart glass technology and middle market cars worldwide.
Joe Harary: Our launch project in Asia for this is still on track.
Joe Harary: All of this and the expansion both among new OEMs and the extension to new car models within each OEM reinforces the strong validation of the value of our SPD smart glass technology that we offer to the automotive market.
Joe Harary: Following LTI's retrofit product debut in AIA in June, we're seeing increased interest in SPD projects worldwide.
Joe Harary: While details aren't yet public, we expect further growth as architects adopt SPD for its energy-saving and instant glare control capabilities.
Joe Harary: As recently as this week, we discussed more new projects and opportunities for SPD in the architectural market and their specifications.
Joe Harary: I spent some time discussing our largest market, automotive, and new models coming out there shortly, as well as architectural markets.
Joe Harary: I now want to move to our second-largest royalty-generating market aircraft.
Joe Harary: there have been fund a fundamental improvement in that market for us as well
This stems from the way that decisions are made.
Joe Harary: For general aviation aircraft, we're on the HondaJet and the King Air, among other aircraft. In those and other areas, the OEM made the decision about putting our high-performing SPD technology on the aircraft.
Joe Harary: The significant shift is that in the larger aircraft made by Boeing and Airbus, now the customer decides.
Joe Harary: This has been tremendously enabling for our licensees selling SPD-EDWs because the performance in terms of switching speed is instantaneous and the wide change in tint also being uniform has made it an easier choice by the customer to pick SPD.
Joe Harary: And airlines and owners are picking SPD when given the choice.
Joe Harary: And personally I question, why anyone would need privacy from people looking in through the top of their sunroof, especially since the SPD solution blocks 99, 5% of the light.
So both technologies will deliver privacy, but SPD also delivers the heat light and glare control, which is essential for energy efficiency and occupant comfort.
Joe Harary: From a benefit standpoint, it's clear that SPD smart glass offers the most practical benefits and that the ones and the ones that the carmakers need.
Joe Harary: I am also pretty confident that the automakers monitor these user forums.
Joe Harary: And aware that the <unk> solution leaves a lot to be desired.
Joe Harary: Let's talk about the other path of.
Joe Harary: Of getting an alternative technology into the car that I mentioned earlier, which is trying to avoid 200 or 50 or so patents.
Joe Harary: You can see that some older and much lower performing technologies in SPD are currently trying to be introduced.
Joe Harary: When personal computers first came out I'm going to show my age here.
Joe Harary: First popular computer chip with the Intel X T chip at.
Joe Harary: In about two years later, the <unk> chip came out.
Joe Harary: And after that various Pentium and dual core processor chips came out.
Joe Harary: Moore's law named after Gordon Moore says that computing power doubles every 18 to 24 months or so.
Joe Harary: So if you take a 20 year lifespan of a patent and tried to use technology that has 20 years older than what's available today <unk>.
Joe Harary: You undoubtedly would get much lower performance in the case of a computer chip over a 20 year lifespan. The effective computing power was 1000 times better with the new technology.
Joe Harary: And the reason I use a 20 year lifespan as an example is because thats the typical term of a pattern.
Joe Harary: So if someone wanted to use off patent SPD, they're using 20 year old technology or de risking substantial liability for infringement as well as the ability to be shutdown in any area of the world that respects intellectual property rights.
My experience has been that no reputable carmaker that sells cars outside of China will introduce a car using infringing technologies.
Joe Harary: I'm going to show my age again, a similar analogy might be someone trying to introduce an eight track tapes here into a car today, just not going to work.
Joe Harary: The third path to getting an alternative technology into a car is similar and related to the benefits discussion. We just had its cost versus performance and carmakers are trying to figure out whether cheaper smart glass technologies, such as PD L. C are going to deliver any functional difference and deliver on their promises.
Joe Harary: <unk>.
Joe Harary: We know the answer to that but they just have to see it for themselves sometimes.
Joe Harary: And carmakers typically try to make the best car. They can at a price point that competes with others in their price class for that model.
Joe Harary: Sometimes a few dollars is the difference between being in one class or another for these carmakers.
Joe Harary: In this situation leads sometimes to bad decisions.
Joe Harary: <unk> Influencers, certainly have an impact and I'm sure that automakers pay attention to consumer sentiment and complaints.
Joe Harary: And of course different technologies products and products in the automotive market it coexist with each other.
Joe Harary: Take tires. For example, there are many different manufacturers of tires of varying quality and performance that automakers put on their cars and sometimes it's a matter of getting to a particular price point.
Joe Harary: But if there's too big of a difference between the cost of the tires and they all had roughly.
Joe Harary: The ability to do a similar job.
Joe Harary: Then the Oems would pick the cheapest solution.
Joe Harary: But in our case theyre not so it brings us back more directly to the question about PD L C versus SPD <unk>.
Joe Harary: Those technologies will coexist for a little while but the fact of the matter remains that PD LC does little or nothing to.
Joe Harary: The block heat from visible light, which makes up half of the heat entering a vehicle through the roof.
Joe Harary: So thats, where the tire analogy, sometimes somewhat breaks down because you don't have relatively similar performance between two technologies.
Joe Harary: And it comes down to being an education process, we and our licensees are doing that education and at the same time, we're also working hard and succeeding at bringing down the cost differential between PD LC SPD.
Joe Harary: And that will also make the decision, making a much different easier and favorable process for us and for SPD.
Speaker Change: Our next question comes from Jordan.
Speaker Change: <unk> produced a press release about Ferrari as adoption of SPD glass, a few weeks ago.
Speaker Change: Research Frontiers did not will research frontiers submit a public press release, but when the Asian OEM model becomes official thanks Jordan.
Speaker Change: Well Jordan.
Speaker Change: We expect to make such announcements.
Speaker Change: First let me say that sometimes automakers can put interesting conditions on who what when and even how something can be said.
Speaker Change: RFID vision systems, and gals have all experienced this over the years.
Speaker Change: Excuse me.
Speaker Change: Yeah.
Speaker Change: We're already put some conditions on the recent press release rather than wait.
Speaker Change: <unk> had been a long time to clarify our remove such conditions, we and <unk> decided to release, what we could sooner rather than later and with <unk> naming research frontiers and SPD technology in their press release.
Speaker Change: Also.
Speaker Change: Even though <unk> put out the Ferrari press release on October 23rd RFID noted Ferrari much earlier.
Speaker Change: Okay.
Speaker Change: As a matter of fact.
Speaker Change: A little more than two years ago I started talking about the Ferrari Piero sanguine by name even before the car came out.
Speaker Change: In fact, I actually discussed it on all nine of our last conference calls.
Speaker Change: Yes.
Speaker Change: And just to complete the question, we hope that the Asian carmaker as well as the other Oems in the car models that I mentioned earlier are in our near term pipeline that many of the things that we've been saying on these conference calls will be confirmed directly multiple times.
Speaker Change: Next question is somewhat of a technical one.
Speaker Change: Joe can you. Please comment on the recently completed study on SPD conducted in Saudi Arabia.
Joe Harary: Well thanks for the question the studies entitled Daylighting optimization of integrated suspended particle devices glazing and different school typologies.
Speaker Change: And that's a mouthful.
Speaker Change: And it highlights SPD smart glasses substantial benefits for energy efficiency, and Daylighting control, particularly in hot climates like Saudi Arabia.
Speaker Change: Prior to this the most visible study on SPD was from Cambridge University and it found that SPD was very effective and maintaining building temperatures by its ability to vary the tint of glass.
Speaker Change: <unk>.
Speaker Change: The new study goes a bit further it talks about.
Speaker Change: The best places in different areas of the building to use SPD to meet design and engineering challenges and to optimize the environment with a focus that are just on temperature, but on energy efficiency and daylighting.
And some of the key insights from this study include this is pretty remarkable.
Speaker Change: So they compared SPD to high energy efficient low E double glazing.
Speaker Change: And the study concluded that compared to.
Speaker Change: These low E G use SPD smart glass reduced net energy consumption by up to 58%.
Speaker Change: Thanks to the dynamic control of heat and light.
Speaker Change: And also this feature eliminates the need for additional shading devices heading both energy and maintenance costs.
Speaker Change: The other thing with Daylighting optimization.
Speaker Change: The SPD study.
Speaker Change: Hi.
Speaker Change: The glass that we used at a dynamic range of one.
Speaker Change: 1% to 60% light transmission.
Speaker Change: For reducing glare and enhancing visual comfort.
Speaker Change: And the study demonstrates that SPD is effectiveness across various building elements like skylights courtyards and clearer story windows was dramatic.
Speaker Change: Years ago over 6 million visitors saw these and other benefits of SPD firsthand that the world's fair USA pavilion.
Speaker Change: Their SPD glass was integrated into a 10000 square foot roof controlled in real time, allowing for automatic adjustments well as manual adjustments.
Speaker Change: For instance, in the peak Sun, the glass darkens to reduce heat and protect occupants, but during evening events that created that dynamic flashing disco event and the roof.
Speaker Change: What the study also noted in Saudi Arabia was that SPD smart glass is especially advantageous for hard to shade areas like skylights and atrium.
Speaker Change: Offering a simpler more reliable solution that mechanical stating systems.
Speaker Change: This flexibility helps architects tailored lighting to specific zones, such as maintaining optimal lighting in classrooms or enhancing user comfort in any environment.
Speaker Change: Notice that the study is zeroed in on the optimum tent to be used on different areas of the building and this is quite helpful data for architects and highlights the benefits further of SPD Smart glass technology. So let's say for example, you are trying to maintain a 30% transmission rate and your skylights are glass atrium, which they said was the good target.
Speaker Change: With changing outdoor lighting conditions, such as any movement of the sun or time of day, the ability to dynamically adjust the 10th of glass. The result in this 30% light transmission is quite easy and automatic with SPD.
Speaker Change: And the study also noted that SPD smart glass helps achieve balanced daylighting distribution and clearer story windows.
Speaker Change: So basically the idea here is that there can be on demand control for example.
Speaker Change: When I was at CERN, where the Super particle collider is in Switzerland. They use.
Speaker Change: Use our SPD smart glass and the large dome at the visitor center and when the head of CERN met me and gave me a tour the facility. He noticed that they constantly used SPD smart glass in different ways. For example, if they are having an event under the dome. They may let more light in.
Speaker Change: If theyre doing a multimedia presentation inside the dome that will darken the glass at the top of the film using the SPD.
Speaker Change: So there is the on demand application of SPD and Theres also the set it and forget it ability where in real time, the glass can change instantly and automatically based on your user preferences to maintain constant control over key light and glare.
Speaker Change: One of the questions. We got from John Nelson will AI be used to control our glass and it's very very simple to do that and here's a good example, where you could either use simple methods like.
Speaker Change: Photo cells or timers are building control systems, where you could use AI to automatically tell the glass what to do and because we have instant.
Speaker Change: Response time John.
John Nelson: You get much better results than having to wait 40 minutes for your windows to switch as you would with a electrochromic window.
John Nelson: So just getting back to the Saudi Arabian study it concludes that SPD smart glass.
Proves to be an efficient adaptable daylighting solution with transformative potential across various types of spaces, especially in climates were controlling heat and light is crucial. The study also adds to the body of knowledge started by the prestigious Cambridge University study about the benefits of SPD technology.
John Nelson: Among architects and building designers and engineers.
Speaker Change: Getting back to some of the other series of questions that John Nelson had asked.
Speaker Change: Or which ill answer here or including my closing remarks.
Speaker Change: Any indications at Ferrari is going to expand the SPD roof option to other models.
Speaker Change: John we expect that to happen.
Speaker Change: Based upon recent discussions Ive had with Ferrari and also because it has happened with all of the other Oems that adopted SPD.
Speaker Change: And also when you consider this as a highly successful future Ferrari.
Speaker Change: For a variety of I think it looks very good.
Speaker Change: Any potential for SPD used by the military for aircraft and our vehicles, yes answer to that is yes.
Speaker Change: <unk>.
Speaker Change: Here's what about competition I've seen ads by home depot for Smart glass Windows and storm doors are these any of these using SPD.
Speaker Change: The ones in the home depot.
Speaker Change: Note. This is a small surface area of PD L see think of it as like an electronic people.
Speaker Change: And the economics and requirements of these big box stores are not really conducive to SPD.
Speaker Change: Which will likely require a premium window and custom sizes for our high end homes, so things like store stocking requirements for the lack of <unk>.
Speaker Change: Standard sizes for premium Windows.
Speaker Change: It.
Speaker Change: In an ideal distribution approach for SPD <unk>.
Speaker Change: Keep in mind, we're in the high end the custom windows.
Speaker Change: <unk>.
Speaker Change: It would be very.
Speaker Change: Hard for our licensees too.
Speaker Change: The stock the inventory.
Speaker Change: What might be needed as opposed to what's actually needed at all of these stores, but I do look leave open the possibility of using the retrofit application to address distribution in these stores. So similar to when you are buying carpet you come you have your home measured and then they come and install it and thats kind of what the retrofit.
Speaker Change: Location is going to allow us to do and just this week, we had some very specific discussions about that and even the analogy too.
Speaker Change: The carpet sales.
Speaker Change: Another question from a different shareholder in light of Tuesday's election results can you indicate whether appeal of the dynamic last act with significantly reduced spd's chances of architectural success or has the film cost decreased enough to minimize the possible impact.
Speaker Change: Well, let me first say, it's always better to have smart when does receive a 30% to 50% investment tax credit like they do now.
Speaker Change: And I also don't know.
Speaker Change: Whether the entire inflation reduction act may be repealed.
Speaker Change: Whether it'll be less in place or maybe just some of the pork barrel or other provisions will be repealed.
Speaker Change: As a former.
Speaker Change: Federal Reserve economists I've always refused to call the legislation.
Speaker Change: The inflation reduction act because many of the provisions had the opposite effect.
Speaker Change: And so I appreciate the question. The fact that you refer to it as the dynamic glass act or as <unk> referred to in the.
Speaker Change: Ben Zynga interview that came out yesterday, sometimes we call. This the <unk> Act.
Speaker Change: And it's important to keep the dynamic glass act separate and distinct from the overall inflation reduction Act.
Speaker Change: And also our area of the dynamic last act.
Speaker Change: To the incentives for other established energy efficient home and office products like energy efficient windows water heaters et cetera. So.
Speaker Change: Hopefully that part will survive and they won't throw the baby out with the bathwater.
Speaker Change: And Youll see this discuss more of you listened to the <unk> zynga.
Speaker Change: All access interview.
Speaker Change: So the bottom line is that while tax incentives are very helpful.
Speaker Change: Our costs have come down naturally because unlike our current and former competitors. There are demonstrable economies of scale that exists with our SPD smart technology that have now allowed us to take on mid market and not just premium market for SPD windows and there's one other thing I want to add here.
The cost of the film the cost of the lamination.
Speaker Change: The reliability of the product proven over tens of thousands of installations.
Speaker Change: You have all.
Worked very hard to.
Speaker Change: Bringing the cost out of the basic materials and there's one other thing which is the delivery system.
Speaker Change: So if you think about how a window is installed in a building.
Speaker Change: There is a lot of cost of ownership.
Speaker Change: I'll I'll mention a few.
Speaker Change: Number one if you're going to put this on an office building in let's say Manhattan.
Speaker Change: If it was just replacing the glass with new Smart glass, you would have to build scafell thing higher unions to do that.
Speaker Change: And also you'd have to.
Speaker Change: Basically take that.
Speaker Change: The property out of circulation.
Speaker Change: And disrupt the tenant's operation. So there is a lot of cost involved with that.
Speaker Change: This week, we also discussed a very specific project and that project.
Speaker Change: Talked about.
Speaker Change: Bid by a competitor where the price per square foot of their glass, which was extremely highly subsidized.
Speaker Change: Lower than ours.
Speaker Change: But when you factored in the fact that.
Speaker Change: Their technology the electrochromic technology is.
Speaker Change: Very sensitive to voltage spec fluctuations and can be burnt out.
Speaker Change: The cost of the controllers.
Speaker Change: Brought the per square foot price and the annual cost of just maintaining those controllers well above SPD. So.
Speaker Change: Even in a subsidized market.
Speaker Change: We have a cost advantage.
Speaker Change: And we've seen that in current bids so.
Speaker Change: A lot of that is just the natural tendency is I mentioned further costs to come down and the other is the delivery system. Because if you think about it it's you're avoiding substantial expenses by not having to do a lot of the things that you would do with an ordinary window.
Speaker Change: So we've discussed a lot of exciting topics, so far today and now I'm going to ask our operator Erica to.
Erica: I'll open up the conference to any additional questions people participating today might have that we have not already covered and remember.
Erica: I have gone through a lot of detail with some of the questions. So please if you can keep your questions short and focused in the interest of time.
Erica: If he would like to ask a question. Please press star one on your telephone keypad now.
Erica: Please into the queue in order to received please be prepare to ask a question when pumpkin. Once again, if you have a question. Please press star one on your phone now.
Speaker Change: Our first question comes from Alan Ginsberg. Please state your question.
Speaker Change: Yes, Hi, Joe how are you.
Joe Harary: Hey, Alan how are you.
Speaker Change: Fine I have two questions both.
Speaker Change: Comments on your prepared remarks, I, just I was curious.
Speaker Change: Saudi study, which sounds very positive did you have.
Speaker Change: It gives me was there a press release on that.
Speaker Change: No we don't we don't.
Speaker Change: We didn't do it that way.
Speaker Change: Yes, it's part of our why it's part of our White papers and it's part of our data that we discussed with architects.
Speaker Change: And what's really good about this also is that for the first time, it's giving some meaningful targets for optimum daylighting intent levels, and which are all different between skylights atrium clearer story windows.
Speaker Change: Classrooms, and other things so.
Speaker Change: It really is giving some really practical data and if you think about the challenges of achieving variable tent I mean right. Now if you didn't have SPD smart glass youre not going to get any change or lighting change with PDL seats.
Speaker Change: All of that out and you're going to have a 40 minute or more delay with electrochromic.
Speaker Change: So and then if youre, putting shades and blinds or curtains. They work they're cumbersome. So no great brought home the fact that I have.
Speaker Change: And I thought that.
Because it's so compelling that our press release would be a good thing for the shareholders to see it certainly would be good for me, we might we might do that and it's not a bad idea and then I'm going to have to discuss that with the <unk> to see if there are any okay. Any restrictions placed on the public use of that okay. I have one other question.
Speaker Change: Again on your prepared remarks on the intellectual property.
Speaker Change: Is it possible to give you to give us some updates on.
Speaker Change: The patents.
Speaker Change: How long day.
Speaker Change: Or in effect and if there are any new patents that type of thing.
Speaker Change: We are we always have new.
Speaker Change: Innovations coming online some are patented some orange I believe our existing patents at least go through 2034 and perhaps.
Speaker Change: Beyond depending on when the ones issue.
Speaker Change: We have about 250 patents worldwide. So it's quite an extensive patent portfolio.
Speaker Change: And yes, we have some pretty exciting stuff coming.
Speaker Change: Some of which people would consider the Holy Grail of our industry, but I don't want to promise.
Speaker Change: <unk> or announce it until it's ready for prime time, and those types of Holy Grail patents, if they do come about will they be in your.
Speaker Change: Our SEC filings that type of thing.
Speaker Change: Yeah to the extent material. They will always we have an obligation to disclose material information so yeah.
Speaker Change: And thanks very much.
Speaker Change: And standpoint, yes from us from a marketing standpoint.
Speaker Change: Holy Grail stuff.
Speaker Change: Meant to generate ever increasing levels of sales, especially in some of the newer applications that we're posting.
Speaker Change: Can make my guess what that is but that's just a guess so I appreciate it.
Speaker Change: All the information thank you very much thank.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Michael Kay. Please state your question.
Speaker Change: Hello, Joe.
Speaker Change: You kind of lightning round questions and sure.
One is let me give you the answers yes, no maybe yes.
Speaker Change: That.
Speaker Change: <unk> is the only company that's making.
Speaker Change: SPD.
Speaker Change: Bill and do they plan to have the plant in the United States.
Speaker Change: You can ask the question about their future plans on their conference call next week.
Speaker Change: However.
Speaker Change: They are the only company they bought the Showa denko business.
Speaker Change: From them so right now Galaxy has.
Speaker Change: The.
Speaker Change: The supply.
Speaker Change: Advantage here.
Speaker Change: They don't have an exclusive license, but right now, they're the only ones and they're doing a great job.
Speaker Change: When you see companies like Ferrari tells you that they want to put this in more and more cars and it's such a successful item.
Speaker Change: It speaks volumes of that in.
Speaker Change: We've been very blessed to have them as partners.
Speaker Change: And also.
Speaker Change: When will the.
Speaker Change: Sun visors be available that can be retrofitted to.
Speaker Change: Existing automobiles.
Speaker Change: We have multiple approaches to getting that into the market. Some are very near term and some are more intermediate and longer term.
Speaker Change: <unk>.
Speaker Change: The intermediate to longer term ones and we're not talking about <unk>.
Speaker Change: Periods of time are.
Speaker Change: Incorporating it into the shade band of the windshield. So if you look on any car, there's something called the Aaas line.
Speaker Change: Regulatory from a regulatory standpoint, you can do anything you want tint wise on the windshield above the S line, so sometimes youll see a blue band across the car. That's usually the shade band then you could do what you want there.
Speaker Change: There's the.
Speaker Change: One way you could either.
Speaker Change: Have the fold down visor traditional advisor, but have the SPD functionality or you can have.
Speaker Change: Other iterations, where it's.
Speaker Change: And aftermarket or semi aftermarket items.
Speaker Change: But was the goals set in terms of when they would be available to the public.
Speaker Change: Our goals are always set and expectations are always set within the companies that are producing this.
Speaker Change: Yeah.
Speaker Change: They're not things I could share.
Speaker Change: Yes, it's been a long time also.
Speaker Change: Do you.
Yeah.
Speaker Change: Is mercedes still involved in any way.
SP, we have an involvement in so does galaxy with Mercedes and.
Speaker Change: I think that a lot of the things that are on their wish list or things that we're going to be able to deliver.
Speaker Change: And.
Speaker Change: When they see all of their.
Speaker Change: Other premium cars.
Speaker Change: Putting SPD on it.
Speaker Change: It just makes them realize that.
Speaker Change: They had the first dance at the problem with the Prettiest girl and maybe they should keep dancing.
Speaker Change: Do you anticipate even though it's way behind that eventually the <unk>.
Speaker Change: <unk> will be the largest for SPD, even surpassing autos and aircraft.
Speaker Change: I think so and I think the drivers of that is the constant reduction in the price of the film.
Speaker Change: The retrofit application and what that really does I mean, I'll just give you. One example of how it can grow very very fast.
Speaker Change: The GSA the government services administration as the buyer of materials for the government.
Speaker Change: Our licensee that has the patents on the retrofit application is.
Speaker Change: He is on the GSA schedule of approved vendors and they currently supply them.
Speaker Change: With different types of advanced glass.
Speaker Change: For the <unk>.
<unk> assay to pick from and it comes on a menu so.
Speaker Change: Just like you go to a restaurant you could order a retrofit window with X y or Z type of glass and that Z type of glass would be SPD.
Speaker Change: So we're kind of already.
Speaker Change: Very much with us.
Speaker Change: Got our toe in the door, it's probably our entire foot, maybe torso and three friends, helping to pry open the door. So.
Speaker Change: And that's the biggest customer in the world. So that's one area, where if you wanted to see stellar growth that could happen and just we were discussing some of the projections.
Speaker Change: They could be astronomical for us and our licensees.
Speaker Change: Even in year one.
Speaker Change: That so something that.
Speaker Change: Got to be bigger and then you have the more traditional ways of installing the glass in more traditional new construction and things like that and that also is baked because.
Speaker Change: You know.
Speaker Change: Basically almost 70% of the world's glass.
Speaker Change: It's going to the architectural market.
Speaker Change: And the final question.
Speaker Change: Thanks, a couple months ago, you once said that the sweet spot in terms of cost and attractive.
Speaker Change: <unk> two <unk>.
Speaker Change: Car manufacturers had been reached I assume the company is still trying to reduce the cost of SPD, so it'll even out but all of them.
Speaker Change: Yes.
Speaker Change: Yes, all the time so.
Speaker Change: Theres two things you wanted to do you want to.
Speaker Change: Decrease the cost of the materials.
Speaker Change: That are going to the customer and you want to decrease the cost of ownership by constantly making it better and more versatile more durable et cetera. So.
Speaker Change: We're constantly doing that and just simple.
Speaker Change: Simple basic economies of scale, because remember, we're a roll to roll web presses.
Speaker Change: Process of production.
Speaker Change: Sputter coded vacuum deposition process that doesn't really have economies of scale is.
Speaker Change: View is painfully aware of.
Speaker Change: So our yields are high.
Speaker Change: The efficiencies of production are high the logistics are great because you could ship film.
Speaker Change: Where you want in the World and then have it laminated relatively locally.
Speaker Change: So.
Speaker Change: You don't have to ship fragile heavy expensive glass around the world you can.
Speaker Change: So couple rolls of film on Airfreight and get it there the next day without any real meaningful shipment costs. So these are the things that really.
Speaker Change: I think our the Hallmark and then I talked about another one today, which is the.
Speaker Change: The reduction in the cost of delivery through things like the.
Speaker Change: The retrofit application, where you don't have to have.
Speaker Change: Scaffolding put up you don't have to even have maybe.
Speaker Change: Electricians come to the site so lots of benefits there.
Speaker Change: Thank you very much I appreciate your responses to those questions.
Speaker Change: Thank you Professor Kay I appreciate it.
Speaker Change: Yeah.
Speaker Change: Our next question comes from Lennar Lynn Zhao Please state your question.
Speaker Change: Good afternoon, Joe.
Speaker Change: Hey, Lance.
Speaker Change: Galaxies.
Speaker Change: In our original S. One.
Speaker Change: Report.
Speaker Change: They said that they had sold out of all up there.
Speaker Change: Manufacturing.
Speaker Change: The contracts on at all for the year.
Speaker Change: And apparently a lot of things got pushed off from the third quarter to the fourth quarter.
Speaker Change: What happened, yes, most of that most of that that they reported in their most recent revenue guidance.
Speaker Change: Was related to their production of the yen products for aircraft in there.
Speaker Change: And their French facility.
Speaker Change: And if you notice the lead on that was that they got permission from the union to add a shift so.
Speaker Change: Those kind of things don't really.
Speaker Change: Those problems don't really exist in all parts of the world, but in some areas, it's harder to get unions to agree to do things.
Speaker Change: Yes.
Speaker Change: Happy to say also that.
Speaker Change: The Union issue with some of the architectural applications is zero to nonexistent because of the nature of it.
Speaker Change: Okay.
Speaker Change: Both positive things.
Speaker Change: Very much so and the other thing to keep in mind language that.
Speaker Change: Part of this was because of the war and such.
Speaker Change: Sometimes.
Speaker Change: Good decisions come out of bad situations.
Speaker Change: When they went public I'm sure they've got more than their fair share question about what happens if something happens to there.
<unk> Tel Aviv facility.
Speaker Change: So they started expanding even before this because theyre planners.
Speaker Change: I'm also in production outside of Israel.
But when that happened a stepped up that that process.
Speaker Change: So expanding emulsion and film production capability with something that very much was in the works and I will say that in the.
Speaker Change: The automotive market I mean, you see these.
Speaker Change: Very stellar growth rates that have been consistently high.
Speaker Change: There.
Speaker Change: This year they are.
Speaker Change: I've been asked to exceed what their requirements were for.
Speaker Change: For that.
Speaker Change: Certain customers and they've done it stepped up to the plate and they got it done so.
Neither of them there are companies that like to turn down a good business.
Speaker Change: Okay.
Speaker Change: Fourth quarter several pretty exciting.
Speaker Change: I think every quarter going forward is going to be exciting and.
Speaker Change: You know.
Speaker Change: Well, let me leave it at that.
Speaker Change: Okay.
Speaker Change: Thank you for that trial.
Speaker Change: Sure.
Speaker Change: Our next question comes from John Nelson. Please state your question.
John Nelson: Hi, Joe.
John Nelson: A couple of questions just related to comments made earlier.
John Nelson: Sure.
John Nelson: Saudi study.
Related to the Saudi study.
John Nelson: Yes, they are constructing a giant new city in the desert is this.
John Nelson: Well this steady help too.
John Nelson: Market.
John Nelson: SPD too.
John Nelson: For potentially use there.
John Nelson: Well.
John Nelson: I think it will I think that if you consider the whole Saudi Arabian market, they've built remarkable buildings there.
John Nelson: And most of them use glass and glass is very good and very bad in the desert.
John Nelson: Very good and better withstands, a lot of abuse, but it's very bad in that it brings in a lot of heat light and glare.
John Nelson: So being able to control it becomes.
John Nelson: Even more important and if you look at the study.
John Nelson: They were talking about schools, but the study really has applicability on.
John Nelson: Any place that glass is used in a building, whether it's an atrium, which they have plenty of skylights.
Speaker Change: Conference rooms.
Speaker Change: Entrance ways everything like that and what's really good about it is I think that they've now put some.
Speaker Change: Traction underneath what the target should be for designing those buildings, which is very good and.
Speaker Change: If you have a choice of.
Speaker Change: Several ways of achieving those.
Speaker Change: No.
Speaker Change: Tim targets, you know well one is the old fashion way, if you need 30%, Tim do you put glass with a 30% tenant it doesn't switch which means many times during the day it's wrong.
Speaker Change: Because the Sun is moved.
Speaker Change: Or you have hard to shade areas like a glass atrium, I mean imagine trying to put a.
Speaker Change: Our skylite shade.
Speaker Change: You know 50 feet in the air it's very hard to do.
Speaker Change: Or you could have the glass to it so I think it's really going to be a layout.
Speaker Change: Not only in Saudi Arabia, but pretty much anywhere that people are either building corporate headquarters or.
Speaker Change: Museums or very high profile installations, and the city would be great.
Speaker Change:
Speaker Change: When it when it happens.
Speaker Change: Mhm Okay.
Speaker Change: One other thing.
Speaker Change: One other thing I think this is maybe a testament to the importance of the retrofit.
Speaker Change: I was born in West Palm Beach, Florida.
Speaker Change: And.
Speaker Change: And architect friend of mine.
Speaker Change: Told me early on when we first started asking them questions about SPD now we're talking about the 19 nineties.
Speaker Change: You said, Joe we always get the tent wrong, when we design a building here in South Florida.
Speaker Change: What do you mean since like we usually put.
Too heavy a 10th on the outside of the building.
Speaker Change: And because of that we have to waste energy by putting more interior illumination.
Speaker Change: More lighting.
Speaker Change: Four we put two lots of agenda, and we have to spend more money on air conditioning.
Speaker Change: And if we spend more money on air conditioning, sometimes you could do it and sometimes you have to totally revamped your mechanical rooms to be bigger and have less rentable space.
Speaker Change: So what Youre doing this was even before were commercial with us what youre doing.
Speaker Change: It can be very very important now add to that John the layer of the ability to take that basic fact, which is architects nothing wrong with them. They often get it wrong in terms of what tend to put on a building.
Speaker Change: They're not perfect.
Speaker Change: The ability to retrofit that building with SPD.
Speaker Change: They're going to tend to err on the side of less tent in the glass because they know that if they're wrong. They could dial in the tens in those problem areas with SPD. So yeah. It really changes I think that dynamic and the risk profile of doing.
Speaker Change: These.
Speaker Change: Major League beautiful.
Speaker Change: Buildings.
Speaker Change: Mhm.
Speaker Change: That kind of.
Speaker Change: Just kind of an add on question to that is.
Are you.
What else are you do you know.
Speaker Change: And what else are you doing.
Speaker Change: Increase the awareness of the product and its capabilities.
Speaker Change: One thing is you know being on a plane whenever you can because this is a very visual.
Speaker Change: Technology that if you see it in and pressed the button.
Speaker Change: You are hooked I think anybody that has had the opportunity to press and SPD smart glass window, we will always remember that feeling and it doesn't wear off for me you almost 40 years later so.
Speaker Change: Yeah.
Speaker Change: It's that that becomes demonstrable and.
Speaker Change: And also <unk>.
Speaker Change: Coordinating with this ever expanding marketing departments and business development partners at our licensees and I'll talk a little bit more about that in my.
Speaker Change: My closing remarks, but.
Speaker Change: But yeah. The marketing is something that's becoming a lot of fun now that we have architectural with film and iconic brands that are using this and visibility.
Speaker Change: Okay excellent.
Speaker Change: And.
Speaker Change: On the new models mentioned for 2025 introduction.
Speaker Change: It is.
Speaker Change: Yes.
Speaker Change: Decided yet.
Speaker Change: Thank you for picking up on it.
Speaker Change: Yeah. Thank you for picking up on its models plural and 2025.
Speaker Change: [laughter].
Have they decided yet whether it's going to be an option or standard on certain of those models.
Speaker Change: In some cases I think it may be.
Speaker Change: Standard.
Speaker Change: In some cases, it's going to be entirely new uses of SPD I believe so.
Speaker Change: It's going to be kind of exciting because it has the ability to you know to.
Speaker Change: It really open up new thinking about SPD.
Speaker Change: Not just for Sun roofs anymore.
Speaker Change: Okay. Good.
Speaker Change: And then you mentioned LTI and getting specs on several projects without disclosing names can you.
Speaker Change: Describe the types of buildings that these projects are.
Speaker Change: Sure involve well I'll do my best without compromising.
Speaker Change: The fact that we are competing against.
Speaker Change: Some of our electrochromic glass people on it.
Speaker Change:
Speaker Change: But I think we're going to do fine because the data is just so compelling why you would do this but.
Speaker Change: But they are commercial nonresidential.
Speaker Change: They are.
Speaker Change: Big users of glass.
Speaker Change: And you know sophisticated building management systems need sophisticated glass.
Speaker Change: And trading systems, and we check all the boxes so.
Speaker Change: That's about all I can say right now and then on the government side, we've identified a number of projects.
Speaker Change: The government would like to upgrade.
Speaker Change: And.
Speaker Change: That's good because when you think about government buildings.
Speaker Change: First of all you have to GSA mandate.
Speaker Change: To make their buildings more energy efficient and this has been around for.
Speaker Change: Not just the current administration, but the prior administration and that debt.
Speaker Change: That you have these mandates to do this because some of these buildings have just.
Very old monolithic not even insulated glass unit.
Speaker Change: Glass structures and to.
Speaker Change: To upgrade them with the latest and greatest especially with a retrofit becomes a no brainer and what you can do is basically <unk>.
Speaker Change: It out so you may have a certain corner of the building that has a particularly bad.
Speaker Change: Glare problem.
Speaker Change: You put it there first and then you basically expand to other windows on the floor and other floors in the building and other buildings in the area.
Speaker Change: To do this once you've kind of proving it out so it's a way for the government to really get some real.
Speaker Change: Good firm data as to.
Speaker Change: How and why and where to deploy this glass and.
Speaker Change: The thing I must say also as you know.
Speaker Change: My remarkable is you could come in over the course of a weekend and do lots of windows.
Speaker Change: Not really.
Speaker Change: Youre not really taking the building out of service or disrupting the flow of the building.
Speaker Change: In order to upgrade it to smart glass using the retrofits. So it's a very very.
Speaker Change: Compelling area.
Speaker Change: <unk>.
Speaker Change: You know our licensee in that area LTI is expanding.
Speaker Change: To do that.
Speaker Change: Excellent.
Speaker Change: Last question.
Speaker Change: And it kind of is the Boeing strike is settled.
Speaker Change: How are you.
Speaker Change: SPD.
Speaker Change: Either certified or.
Speaker Change: Uh huh.
Speaker Change: Ordered on any of their models.
Speaker Change: Yes.
Speaker Change: Yesterday at the Zynga.
Speaker Change: Interview, that's online Y'all peso said this so I guess I could say it too.
Speaker Change: That two airlines.
Speaker Change: I've done this.
Speaker Change: Okay.
Speaker Change: <unk>.
Speaker Change: That's it thanks very much.
Speaker Change: Thanks, John.
Speaker Change: Our next question comes from Art Brady. Please state your question.
Art Brady: Hi, Joe.
Speaker Change: Hey art.
About three weeks ago Apache.
Speaker Change: I mentioned that.
Speaker Change: Expanding into the bill.
Speaker Change: Building new data centers.
Speaker Change: Im wondering if.
Speaker Change: Any of this has come across your desk.
Speaker Change: Well you got to look at which division of Hitachi did that Hitachi is like general electric Hitachi chemical which was sold to show a danko, which.
<unk> has now been named.
Speaker Change: Reznor Act is.
Speaker Change: It's a different division.
Speaker Change: And I'm not really sure. These data centers would be ideal places for this because they typically don't have windows. So.
Speaker Change: I'm not sure why they would put it up there, but like I've been wrong about many things I could be wrong about that too.
Speaker Change: What they are trying to do is to.
Speaker Change: Data centers in areas, where.
Speaker Change: Very strong amounts of oil.
Speaker Change: So that they can generate.
Speaker Change: Power very regularly.
Art Brady: Right, but the thing to think about art is whether the building itself needs SPD. If it doesn't have any windows and I think that for the most part if you're building a data center, you're going to probably want to make it like a bomb shelter.
Art Brady: Which means no windows.
Art Brady: Very thick concrete and other things so.
Speaker Change: I will.
Speaker Change: I will say, but I don't think its the low hanging fruit at least.
Speaker Change: I Love the question I have.
Speaker Change: To have.
Speaker Change: We had meetings and.
Speaker Change: As you worked into the meeting.
Speaker Change: You had a couple of <unk>.
Speaker Change: Okay.
Speaker Change: Those that had SPD.
Speaker Change: Anything happened with Lincoln that we.
Speaker Change: We can hook up with them again.
Speaker Change: Yeah, well, we keep good contact with the whole, Florida organization and I've been there many many times even since the Lincoln.
Speaker Change: Dan Carp.
Speaker Change: Continental came out in.
Speaker Change: In concept with our stuff so.
You keep in contact with everyone. You worked with everyone you try to understand their needs and then you figure out the best licensees to help them.
Speaker Change: Achieved those needs and thats pretty simple, but straightforward approach too.
Speaker Change: So all the automakers.
Speaker Change: Okay. Thank you.
Speaker Change: Thanks Art.
Speaker Change: Our next question comes from Michael Foster Please state your question.
In light of this.
Speaker Change: What sounds like a very rosy picture about sales and.
Speaker Change: Im reminded of what you told us when <unk> was added as a film supplier that was a great development because.
Speaker Change: Oems like to have more than one supplier.
Speaker Change: So what has been done to add SPD film producers.
Speaker Change: Beyond Galaxy.
Speaker Change: So theres a balance Michael between.
Speaker Change:
Speaker Change: Having too many.
Speaker Change: So on suppliers and having the ones that you have have every incentive to invest in innovation quality assurance and everything like that otherwise we become like PD L. C, which is a very spotty technology in many areas not a galaxy they do a great.
Speaker Change: PD LC products, which is what we love about them as if they have the same commitment to quality. We do it has not been a <unk>.
Speaker Change: Consideration by any of the carmakers that we're dealing with not one of them has mentioned that as an issue anymore I think they're comfortable with the fact that hey, they've done site audits of galaxy. They know their production facility. They know their capacity, there's not going to be a capacity constrained if you know for.
Speaker Change: G M decided to put this on every car.
Speaker Change: Being able to produce enough film for that.
Speaker Change: And they also know that if there was enough galaxy didn't make the necessary investments to continue to replicate capability like they've been doing throughout the world.
Speaker Change: Could always license new companies to do this so.
Speaker Change: That hasn't been an area, where but the other part of your question I think.
Speaker Change: Is on the end product side, we find that the glass laminate or is are the ones that the carmakers focus on having redundancy on.
Speaker Change: And because they are the ones that are buying the film and pricing it and selling it to the automakers and there we have very good redundancy across multiple suppliers for the automakers, so they like that and.
Speaker Change: Some of our discussions recently have been.
Speaker Change: Making sure that we always preserve at on the end product side.
Speaker Change: Well I wasn't being critical of Galaxy, Let me say this.
Speaker Change: Seem to be you know I don't I didn't think you were I don't think you where I just think it's a good question.
Thank you.
Speaker Change: Williams.
Speaker Change: This great opportunity to sell product.
Speaker Change: It sounds like we would benefit from having somebody else who's producing film just so that there is an adequate supply and that's why I'm asking what has been done to add.
Speaker Change: Film producers.
Speaker Change: Discussion specifically about.
Speaker Change: Our capacity expansion plans and also.
Speaker Change: The ability the ability to talk to other licensees prospective licensees to make film.
Speaker Change: Well I can't say more about it.
Speaker Change: I can't say any more about it it's strategic and there. This is an open call. So.
Speaker Change:
Speaker Change: But it hasnt been a factor in terms of capacity I've looked at <unk> expansion plans. They can make as much film is we think is going to be needed.
Speaker Change: They have every intention of doing that.
Speaker Change: Okay I'm good on the question.
Speaker Change: Okay. Thanks.
Speaker Change: Our next question comes from Chuck Michael Please state your question.
Speaker Change: Hi, Joe I've got a I've got a few questions.
Speaker Change: Exactly.
Speaker Change: Hi, first of all in Iraq actually isn't even a question so much as I read an article that indicated that.
Speaker Change: I was not aware of this previously that flight attendants actually have Chelsea.
Speaker Change: <unk>.
Speaker Change: Just from the light that comes into the airplanes is like on commercial aircraft.
Speaker Change: And I was thinking that possibly that might be something to share.
Speaker Change: Into in terms of marketing SPD.
Speaker Change: Right and similar to what we call truckers arm.
If you look at the left arm of most truckers, they have a higher incidence of skin cancer, because their elbows or sitting right next to the glass are out the window and you know we've talked so much U V, but there's certainly a health benefit there.
Speaker Change: Other thing that.
Speaker Change: It's a little bit crazy.
Speaker Change: It is.
Speaker Change: Is the restrictions that the flight attendants unions placed on their flight attendants that are not necessarily in the flight attendants best interest.
Speaker Change: They cant require them to open and close Windows. For example, so you'll notice sometimes when you land they'll make an announcement voluntarily. Please close your window were flying into Miami international or whatever hung up their hot climate you win.
Speaker Change: They can require the.
Speaker Change: <unk>.
Speaker Change: And that would be much better for the passengers on for the flight attendants, but yeah, the health issues or things that.
Speaker Change: We're very cognizant of and.
Speaker Change: Discussions about <unk>.
Speaker Change: Wireless would be good for health.
Speaker Change: Okay. Good.
Speaker Change: No no I think it was.
Speaker Change: So no question about it I don't know if you've covered I got in about five minutes late on the conference call but.
Speaker Change: I was wondering with Gauss he had a press release about this car vision camera system.
Speaker Change: And I was wondering if that yes.
Speaker Change: Your technology or not.
Speaker Change: It doesn't.
Speaker Change: This smart life Tech, which is the safety Tech division, where they have cameras on buses and things.
Speaker Change: It's a very sophisticated AI base, if that's what you're talking about.
Speaker Change: Sure.
Speaker Change: Moving ahead, a little bit.
Speaker Change: Cars have a lot of sensors.
Speaker Change: And glare can really blindly sensors, so I.
Speaker Change: <unk> rollout.
Speaker Change: The possibility of maybe not in Gen. One of these things, but maybe in gen. Two the SPD, having a more meaningful role in.
Speaker Change: In protecting or make or enhancing the ability of these sensors to do their job and in some cases protecting the sensor from damage.
I see okay.
Speaker Change: One more thing.
I was noticing on your in your financials and your in your press release.
Speaker Change: Cash and cash equivalents.
Speaker Change: Current amount as of the end of September was about double what the decrease in cash and cash equivalents was during last quarter. Sorry are you going to be raising more funds or how is that can be dealt with.
Speaker Change: We don't need to do it as I think we've said in the press release, we don't anticipate raising capital unless there's a strategic reason like you know.
Speaker Change: <unk> wants to make an investment in us or something like that.
Speaker Change: For the next five years at least I think we're going to be fine.
Speaker Change: Okay.
Speaker Change: Alright, guys. Thank you I'll work going down with our loss going down so dramatically.
Speaker Change: Alright that helps.
Speaker Change: Okay. Thank you definitely though.
Thanks.
Speaker Change: Our next question comes from William Baird. Please state your question.
Speaker Change: Thank you.
Speaker Change: Some time ago, Joe you stated that investors would be made happy.
Speaker Change: But that happiness was pushed back a little bit today, you mentioned 2025.
Speaker Change: Are you, saying that the Asian carmaker is going to be named in 2025 and that theyre going to have more than one model.
Speaker Change: Won't be just some growth but.
Speaker Change: Their windows on the Bill Cole as well.
Speaker Change:
Speaker Change: No I'm, not saying that what I said is that.
Speaker Change: In Asia and in Europe, We expect multiple car models to come out in some of those are going to have.
Speaker Change: Different areas than what people are traditionally used to.
Speaker Change: And our expectation is those come out in 2025.
Speaker Change: I'm not putting it on.
Speaker Change:
Speaker Change: Which one is going to have the non sunroof application and whatever but.
Speaker Change: That's our expectation.
Speaker Change: Okay, So I'm not asking for.
Speaker Change: Which models will have what but you stated that it will be more than just the sum Russ there'll be other windows as well.
Speaker Change #100: Other uses yes, that's what I said, yes.
Speaker Change #101: Okay, which I think is exciting because every time something like this happens and we'll just take for example.
Speaker Change #101: Augmented realities windshield that bobcat put it in their construction.
Speaker Change #101: Vehicle.
Speaker Change #101: At CES.
Speaker Change #101: It Sparks interest.
Speaker Change #101: Other companies were at CES that saw that and approached US and said we want us to.
Speaker Change #101: We like it we saw it work. So every time, there's a new use for this.
Speaker Change #101: <unk>.
Speaker Change #101: Many doors beyond what we have open now.
Speaker Change #101: Okay. Thank you.
Don: Thanks, Don.
Joe Harary: Our next question comes from Tom Mccarthy. Please state your question, Hi, Joe I'm, sorry, if I missed it but I would like more information on the Saudi study.
Joe Harary: Who funded it who are conducted it to how extensive was it a rigorous are the results.
Yeah, It was very rigorous and.
Joe Harary: Had some very good specific information I don't know if you heard.
Joe Harary: Our discussion about it.
Joe Harary: Hum.
Joe Harary: I'm going to refer you to the article itself I don't have it in front of me right now about.
Joe Harary: Who did it who funded it.
Joe Harary: And it wasn't us it wasn't research frontiers so.
Speaker Change #103: Article on your website.
Speaker Change #104: No I mean, they have the copyright in it so they have yes, but you could get it online I think it's been fairly widely available.
Speaker Change #105: How do I access it what's the title of it.
Speaker Change #106: If you listen to the transcript.
Speaker Change #106: Which should be out tomorrow.
Speaker Change #107: Data on it, but but it's a mouthful.
Joe Harary: Okay, sorry, Joe Thanks.
Speaker Change #108: Now lets okay, Tom Youre talking to.
Speaker Change #109: At this time, we have no further questions.
Speaker Change #110: Okay in that case.
Speaker Change #110: If any of you had questions that we haven't fully answered have you thought or anything else just email us we do our best to answer them.
Speaker Change #110: And now I'd like to make some closing remarks.
Speaker Change #110: The outlook for the smart glass industry remains extremely promising and I think we prove that every quarter and every day bolster.
Speaker Change #110: Bolstered by growing revenues, and automotive and aircraft and increasing regulatory support and tax incentives.
Speaker Change #110: And then new product introductions like the retrofit.
Speaker Change #110: Research Frontiers has a solid position and a strong foothold in the smart glass industry.
Speaker Change #110: We're well positioned as the recognized leader with an innovative high performing and reliable solution.
Speaker Change #110: Our recent results underscore that SPD smart glass technology is increasingly viewed as the industry standard solidifying our leadership even further.
Speaker Change #110: With our guidance our entire industry has been strengthened as well with licensees gaining resources to expand and our technology being adopted across a diverse range of products and industries and the interview yesterday Ghazi mentioned.
Speaker Change #110: They had 700 employees when I first met a y'all peso at 50.
Speaker Change #110: Demand is rising from highly visible iconic global brands and their customers further validating our technology is transformative power.
Speaker Change #110: SPD smart glass technology is enhancing customer experiences across sectors, especially in automotive and aerospace where it sets new standards of comfort and energy efficiency and performance.
Speaker Change #110: And in some industries, where the customer such as airlines can finally now choose their selecting SPD as shown by the new Airbus and Boeing programs.
Speaker Change #110: This quarter, we continued our track record of growth and progress with research frontiers, and our licensees building traction and momentum across multiple industries.
Speaker Change #110: Continued growth in our established markets as well as opening up and while we also open up new markets and uses for SPD Smart glass technology.
Speaker Change #110: The third quarter of 2024 marked our seventh consecutive quarter of revenue growth compared to the prior year.
Speaker Change #110: In some areas, where you are the established leader, we have a strong foothold such as in automotive and aerospace.
Speaker Change #110: In other emerging markets for us such as the architectural infotainment.
Speaker Change #110: And information display and consumer electronics.
Speaker Change #110: We're just getting started.
Speaker Change #110: But because it's Virgin territory and because of our track record in the other areas I think we have a leg up there.
Speaker Change #110: We've been in business, the longest and have the largest network of world class companies offering our SPD smart glass technologies.
Speaker Change #110: We built upon our pace of success and high performance and reliability proven across tens of thousands of cars and aircrafts that have been used and used for decades.
Speaker Change #110: No one else has that longevity or track record.
Speaker Change #110: Each partnership each project.
Speaker Change #110: And each installation further validates our leadership and the undeniable value that our SPD smart glass technology brings.
Speaker Change #110: Competitors have tried to do we have succeeded at.
Speaker Change #110: Most have failed or are or are failing.
Speaker Change #110: In my opinion this is because of their flawed business models I costs, bad logistics and inability to scale.
Speaker Change #110: And the poor performance of their technologies.
Speaker Change #110: Just in the second half of this year, we've seen multiple bankruptcies, among our competitors such as view and Helio.
Speaker Change #110: The architectural market for example has proven too difficult for others in our industry.
Speaker Change #110: Not for us.
Speaker Change #110: We see tremendous potential in the retrofit market for buildings offering opportunities to drive sustainable solutions into existing infrastructures worldwide.
Speaker Change #110: No one else can do this.
Speaker Change #110: Because we are a film based light control technology.
Speaker Change #110: Logistics for us and our licensees are far better.
Speaker Change #111: That's pretty smart light control film can easily be shipped anywhere in the world it's needed.
Speaker Change #111: The introduction of SPD into new premium vehicles, as well as current initiatives to tap into the market.
Speaker Change #111: More moderately priced vehicles.
Speaker Change #111: Also marks a significant milestone broadening our reach and making SPD technology more visible and more accessible to a wider audience.
Speaker Change #111: As we look ahead, we can see more clearly what the future holds for our industry.
And research frontiers is more optimistic than ever.
Speaker Change #111: With the support of a strong growing industry network and partners like Galaxy, who share our vision for expanding spt's reach we're well positioned to capitalize on the promising opportunities that lie before us such as the several new car models that I had mentioned earlier in Europe and in Asia that are expected to be introduced in 2025.
Speaker Change #111: Using our SPD smart glass technology, and as I mentioned, some new places in new ways.
Speaker Change #111: Thank you once again for your trust.
Speaker Change #111: Confidence and commitment to our journey.
Speaker Change #111: We look forward to continuing on this exciting path together.
Speaker Change #111: The momentum and to sharing more achievements with you.
Speaker Change #111: We expect like our shareholders further growth visibility.
Speaker Change #111: And success.
Speaker Change #112: This concludes today's conference call. Thank you for attending.