Q4 2024 Research Frontiers Inc Earnings Call
Speaker Change: Good afternoon and welcome to Research Frontiers Investor Conference call to discuss the fourth quarter and full year 2024 results of operations and recent developments.
Speaker Change: 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 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: Some statements today may contain for looking information identified by words such as expect, anticipate, and forecast.
Speaker Change: These reflect current beliefs and actual results may differ materially from those expressed due to various risk factors, including those detailed in our SEC filings.
Speaker Change: Research Frontiers assumes no obligation to update or revise the statements.
Speaker Change: Today's call is in listen only mode with a Q&A session to follow. To ask a question, please press star one. The call is being recorded and I will be available for
Speaker Change: and will be available for replay on Research Frontier's website at smartclass.com for the next 90 days.
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 two.
Also, we ask that you keep your questions brief in the interest of time.
Speaker Change: I would now like to turn a conference over to Joe Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.
Joe Harary: Thank you, Paul. Hello everyone and welcome to our fourth quarter and full year of 2024 investor conference call.
Joe Harary: First of all, we've been asked by our larger shareholders to try to make these quarterly calls shorter and more focused, so we'll try to do this with your help. And my remarks today will be relatively brief and it's certainly easier to keep things short when the news is good. Let's start with our financial results.
Joe Harary: Revenues were up 47% to $1.336 million. This was an increase of $426,000 in royalty income over the last year.
Joe Harary: This was driven by a 48% increase in royalties from the automotive market and an increase of 57% from aircraft.
Joe Harary: Total expenses this year were down, more than 165,000, which is a 6% reduction in an inflationary environment.
Joe Harary: Our expenses are the lowest they've been since 1996, and we have focused on operational efficiency consistently throughout the year.
Joe Harary: The total improvement in our bottom line this year was $597,000 and this gets us closer to profitability.
Joe Harary: Our net loss for the entire year was 4 cents per share compared to 6 cents per share last year. This is the lowest annual per share loss since we went public 38 years ago.
Joe Harary: Moving from our income statement to our balance sheet, we had $2 million in cash as of the end of 2024 and working capital with $2.5 million.
Joe Harary: Cash went down by 482,000 for the entire year for an average of $40,000 per month.
or Barn Raid is much lower.
Joe Harary: Never before. We have no debt and sufficient working capital from more than the next five years.
Joe Harary: Both are domestic and foreign patent portfolios currently extend to 2037
Joe Harary: Moving now to highlights from our businesses here, 2024 marked notable growth in our Ferrari business and McLaren business, as well as the introduction towards the end of 2024 of the Cadillac Solesteak with its amazing SPD smart-last roof.
Joe Harary: SPD remains a highly popular, chosen option on the Ferrari and the Ferrari Pura Sangue and multiple McLaren car models and its standard equipment on the Cadillac Celesteak.
Joe Harary: Commercial airlines have begun to put SPD in their cabin windows, most notably in both Boeing and Airbus aircraft, as decision-making has moved from the OEMs to their airline customers.
Joe Harary: We also have steady business and small, medium and large VIP corporate jets as well.
Joe Harary: We see the growth coming from the addition of the new vehicles in 2025. Some of these were expected in 2024, but the launch of the entire model was delayed for reasons unrelated to our SPD smartlasts.
Joe Harary: We're also working on major high-volume projects for 2026 and the volumes for these projects could dwarf anything that we or Gazi have spoken about publicly to date.
Joe Harary: We also expect that you'll see the introduction of more architectural projects this year, both with the traditional method of replacing the glass with SPD smart glass and also retrofitting SPD smart glass to the inside of homes and buildings to make the building envelope smart.
No one else out there can retrofit smart windows.
Joe Harary: This retrofit application promises to make it less expensive and less disruptive to building occupants to convert existing buildings from having ordinary glass to SPD smart glass and will speed up the sales cycle considerably.
Joe Harary: Our licensee with this patented retrofit system has built an impressive manufacturing facility with high capacity supporting this retrofit application.
Joe Harary: Next year, we can see market expansion from other areas as well.
Joe Harary: Let me now speak about the recently announced Black Particle which many of you have asked about.
Joe Harary: This is something that the smart glass industry has sought for decades.
Joe Harary: We and Galzie have had sustained efforts on this, working together since day one.
Joe Harary: It might be helpful now for me to explain a little bit about the physics behind SPD technology.
Joe Harary: There are nanoparticles that are randomly suspended in capsules filled with special polymeric and non-polymeric liquids.
Joe Harary: When an electric shield is applied, these special particles line up and allow light to pass through.
Joe Harary: When they're unpowered, they naturally return due to Brownie motion to a random state that blocks life.
Joe Harary: The current particle appears blue because they are very very efficient at blocking all areas of the visible spectrum except for blue light.
Joe Harary: And that is why when you have an SPD window inside it will look black because it is very little blue light in interior lighting.
Joe Harary: Well, when you move that same piece of glass outside, the blue light in daylight is the only area of the visible spectrum that is transmitted, and that is why SPD windows appear to be sapphire blue when it's outdoors and you're looking through it.
Joe Harary: This is where the significance of the black particle comes in now.
The window would appear gray or black [inaudible]
Joe Harary: And I want to reiterate that Black SVD that has been shown behind closed doors at Galsy's booth at CDS in January were R&D samples.
Joe Harary: And even though there were R&D samples, they had an impressive range of light transmission and other optical characteristics.
Joe Harary: Warworth needs to be done to refine things and we are making excellent progress.
Joe Harary: Now, speaking from decades of experience, we know that there's a big difference between seeing a black particle, having it stay black when it's put into a liquid's suspension, and then putting it into a film.
Joe Harary: The samples that CES accomplished all of these things beautifully, they were very well received by the special customers who saw it.
Joe Harary: The next step is going from R&D samples to engineering samples
These would be closer to the final product.
Joe Harary: After the current engineering sample stage, we then go into mass production.
Joe Harary: I've been asked how long does it take between the engineering sample stage and mass production stage and that's relatively easy to explain.
Joe Harary: The SPD film coater that Galsy has near Stuttgart, Germany has been designed to be quite flexible in how it's configured.
Joe Harary: That means that almost every relevant variable that you can think of between film coding with, SPD Emulsion coding thickness, line speeds, etc. can be adjusted in mass production on the existing line.
Joe Harary: The specially designed coating head itself on Gousy's SPD foam coder is also capable of handling many but different materials.
Joe Harary: If the final engineered materials are close in reality such as viscosity and flow characteristics to the current SPD emulsion using the blue particle, then mass production of the black particle of the SPD film can happen very quickly thereafter.
Joe Harary: Typically, there are some adjustments that are always made whenever you change a material that you're coding and the production experts at Galaxy and at Research Frontiers are quite a depth and experience that doing this.
Joe Harary: Now from a market perspective, the black particle is a nice alternative to the current one.
What is, by no means, a necessary item.
Joe Harary: The current blue particle also can be made to look black or gray with post-production steps after the film is made and in areas like sunrise or skylights where you're looking up at the sky, the sapphire blue color may actually be preferable.
Joe Harary: The areas like Seigwood, those in cars, planes, and homes and offices, Black or gray maybe profitable, and those are the primary areas where we believe that the Black SPD can result in a meaningful market expansion beyond what we're doing now.
Joe Harary: Once again, this is not in necessary condition to commercial success, but it is extremely desirable and can expand the markets for SPD glass as they explain, claimed something that the smart glass industry has been trying to do for decades.
Joe Harary: We have said that we can at this point and at the joint, we've said what we can at this point and the joint announcement that Gaussian Research Frontier has made at CDS is the extent of what we could talk about at this time especially at an open call where competitors to our licensees have access.
Let's stay tuned.
Joe Harary: With that, I look forward to answering the questions that I've not already answered in the course of my presentation. I'll read some of the additional questions that were emailed to us.
Joe Harary: One question is, I'd like to know where our income comes from, Asia, Europe , the United States,
Speaker Change: So, thank you for that question. Most of the...
Speaker Change: Revenues in the sales are occurring in Europe and in South America from the licensees there. We do have also...
Speaker Change: Licensities Headquartered in Asia with production both there and in Europe and of course the United States so you have a mix around the world of
Let me go to the next question here.
Judy asks Sam.
Speaker Change: I'm hoping for the best, but expecting the worst if the administration goes ahead with this plan 25%
Tariffs on Canadian and Mexican auto parts [inaudible]
Speaker Change: Can you indicate if the retail price of the VESPD pipeline vehicles will be affected?
No, I don't expect that.
This is going to have-
I'm meaningful impact on our revenues based on these tariffs. And thanks for the question, Judy. You know,
First that it's a former economist at the U.S. Central Bank in the 1980s, my personal view is that free trade is usually the best solution.
Speaker Change: However, that only works when there's a level playing field and I think the tariffs are meant to create that as well as address border security and the flow of fentanyl in the United States.
Speaker Change: My guess is that if these other countries handle the border security and fentanyl issues, the tariffs will revert back to where they were.
Speaker Change: And to answer your specific question, I don't believe that these tariffs will have a significant impact on our automotive and other business.
Speaker Change: Market typically is not affected mostly in the premium car area. So Harris will have an effect we believe on less expensive cars that are more price sensitive, but I do not believe that will affect our business or our revenues, meaningfully.
Speaker Change: at John Nelson. Are there any designs for L.D.I.'s Architectural Retrofit Product that you can talk about?
Yes, we have several government projects and some commercial projects.
Speaker Change: that we are targeting and focusing on right now and I'm actually meeting next week with them about it. And the other question was, indications.
Speaker Change: that Ferrari and your other car customers could expand usage to windshields or windows. And yes, 2025, I believe, will show SPD and other areas of the vehicle besides just standards jobs. But thanks for that question.
Speaker Change: Some of the questions we've already answered, but any real world indication that there's room for SPD and a PDL Steve Stunner of World outside of the super expensive aspirational kind of vehicles and the timeline for the architectural retrofit.
Speaker Change: Well, I mentioned that we expect the Renatorial Fit to generate revenues this year, and in terms of your question about cars that use PDLC, first of all,
Speaker Change: We are working with car makers that are not the super expensive ones that you refer to in your question, so yes, we do expect that there's plenty of room and probably a preference.
Speaker Change: because I think the automakers are beginning to see, based on what we're...
Speaker Change: Talking to them about that the PDLC sunroofs are not doing the job that they anticipated in terms of blocking heat and glare inside a vehicle.
Speaker Change: So, you know, very much so I believe that if anything, those PDLC cent roofs are already wired for SPD as far as I'm concerned and they'll be a lot more cars like that using it.
Okay. Well, we've discussed a lot of the questions.
Speaker Change: So far that have been emailed to us. I'm going to ask our operator Paul to open up the conference. Do any additional questions people participating today might have that we haven't already covered and you know in the interest of time please try to keep them limited to questions of general interest.
Speaker Change: If you would like to ask a question, please press star one on your telephone keypad now.
Speaker Change: You'll be placed into the queue in order received.
Please be prepared to ask your question when prompted.
Speaker Change: Once again, if you have a question, please press star one on your phone now.
And our first question comes from Jeff Harvey, an investor.
Jeff Harvey: Hi, Joe. First of all, the fourth quarter was about half the third quarter. What was the reason for that?
Jeff Harvey: A lot of our revenue comes from automotive and a lot of car makers cut production in the fourth quarter to clear out what's on the factory showroom for the next year.
Um...
Speaker Change: Gazi announced last time that 50,000 cars or something. You know, the problem we have is an investor is nobody knows about this company because neither you nor Gazi have been able to put out any press releases about new business.
Speaker Change: I mean, what can we expect going forward this year to...
Speaker Change: Let people know about research frontiers because there aren't certainly aren't any analysts that are going to follow this company until there's something that's worthwhile for them to take a look at. I mean, we've been stuck.
Speaker Change: In this mode for a long time, and I realize that you have legal obligations with these companies, but you know, can we expect if you get an architectural contract, did you get announced something like that?
Speaker Change: Thank you for the question. I'd like to see you go to some investor conferences and talk about your company.
Speaker Change: Right. Well, we will start to do that and we've been lining some up.
Speaker Change: But getting back to your original point about trying to say things about projects obviously we have to defer to the request of the customers but we've been pretty good at getting information out we talked about
Speaker Change: Ferrari for the last two years before the car was even introduced with McLaren and Mercedes and Cadillac in some cases they've done the talking in some cases we have and you know Gaozi and Research Frontiers have it in our
Speaker Change: Best interest to announce what we can, so we've been working together on that as well.
Speaker Change: Thank you for the question as much as you can.
And our next question comes from Michael Forrester and Investor.
Michael Forrester: Yeah, my question has to do with the Black SPD developed by Gaozi and I guess Research Frontiers.
Michael Forrester: Right. Is Gowsie going to apply for a patent or is recent frontier is going to apply for a patent on that black particle SPD?
Speaker Change: Since a lot of this work was done jointly, we obviously want to have as strong a patent protection as possible, but I'm not going to talk on an open call about IP strategy because most companies will do a combination of both, and that's probably no exception here.
Speaker Change: Well, the history, as I see it, is that the SPD film is part of what Gowsy refers to a solar-powered smart glass.
Speaker Change: That's different. Now, that's different. Solar powered smart glass is the combination of photovoltaics with smart glass.
Speaker Change: So that would apply to any type of smart glass that they make, PDLC or SPD, it was demonstrated at CES, we've had other licensees develop a combination of transparent photovoltaics.
Speaker Change: and SPD, and because our power requirements are so low, it's very feasible to do that, and some of the retrofit applications are also using
Speaker Change: and some proprietary systems to make these things self-powered. So if you think about what that means in a retrofit, you may not need an electrician to ever come to the site. You just pop this into the window frame and you're done. So that's going to be an exciting time when...
Yeah, you mentioned that the patent expiration is
1337, which is so many 12 years away.
Speaker Change: Fred, we always have new things, and we always have new things coming online.
Speaker Change: When is the last time research frontiers applied for a patent?
Speaker Change: We have a pretty extensive patent, patenting effort, so it's quite a bit of money protecting.
Most of them are before the hour two thousand
Michael Forrester: Michael, I'm not going to go into IP strategy. Sometimes you protect things with trade secrets and sometimes you protect it with pens.
But I ask this
Michael Forrester: Pacific question. When is the last time research frontiers? I'll have to look that up.
Michael Forrester: I'll have to look that up. We have things in the works too.
Alright.
Thank you.
And our next question comes from Chuck Michaels, an investor.
Speaker Change: Yes, hi Joe. Hi, I'm on your website. I looked on your website and I saw financials for the year, but I didn't see [inaudible]
you know, this year versus 2004 versus, 24 versus 2023.
Speaker Change: But I didn't see anything for the last quarter. Do you have quarterly financial somewhere I can look at? No, so the 10K only reports yearly. You can derive the quarter from those numbers and comparing it to the nine months.
Speaker Change: But the 10K and the financial press releases have to follow a certain format according to the SEC, so that's what we did.
Speaker Change: I see. So, what can you tell us what the loss was for the quarter?
It was lower than last year, this quarter.
Can you tell us what it was?
Speaker Change: I'd have to look it up because we don't break it out that way, but if you want offline or you could derive it, you could derive it from comparing the nine month loss and the 12 month loss.
Speaker Change: Okay, the subtract one from the other. Our loss per share was four cents for the whole year though, which is...
The lowest expense we run public.
sales. Thank you.
coming through on. [inaudible]
Harary, good morning. Good morning.
Speaker Change: Right. That's not to say we won't have large sales in 2025, but in the context of what I said, what we're expecting in 2026 made to war, if anything we've ever talked about, or galsies ever talked about.
Yeah.
Speaker Change: By the way, they had their conference call on Monday, so I urge everybody to listen to that as well, I'm looking forward to it.
Right. I am I am as well.
Speaker Change: Okay, so how confident are you on the timing on that, do you have any?
and give us any information with God's help.
Speaker Change: Well, I've mentioned it on the call which means I'm relatively confident that what I said these calls was going to happen doesn't always happen. I mean, we had the CEO of Ford announced on CMBC that our glass was going to be in the Lincoln Continental and it didn't.
Speaker Change: So, you know, sometimes things happen between the cup and the lip, but for the most part, they happen on the time table, you know, in the way that we expect, not always on the time table though.
Speaker Change: Right, I understand. And likewise, I know you've mentioned a number of quarters about a part.
Speaker Change: One or more cars coming out in the near future and they don't seem to come out either. I don't know if that was the Lincoln or if that's something else. No, no, this is something else, something else. The Lincoln was many years ago when they were rebranding their car.
Speaker Change: Yeah, we expect these cars to come out like I said earlier in the call. They were delayed past 2024 when we thought they were coming out but not because of SPD.
Okay, all right, thank you very much.
Thanks a lot, Chuck.
Thank you.
Speaker Change: on the topic of tariffs, royalty of like 10 or 15 percent paid some kind of top of the
Speaker Change: or not. Like if you're shipping a module to a car, it's not broad.
Speaker Change: So typically, and that's a great question, Avi, thank you for asking it. So all of our license agreements have a definition of net selling price. And a net selling price is basically the revenues.
Speaker Change: minus some minor things, but it's basically revenues, it's not profit.
and you do exclude out-
Speaker Change: things that don't go into the licensees pocket, like for example shipping costs and things like that, but for the...
Speaker Change: and when you get down to tariffs, you would exclude taxes and sales tax and tariffs and things like that from the calculation of the royalty. However,
Speaker Change: There's a sublimitation that limits how much they can deduct for all of those things I just mentioned. So, you know, if you add up shipping costs and tariffs and other things, if they go above a certain level, the licensee cannot deduct that from the calculation.
Speaker Change: So if we're talking about a 25% tariff, a very small piece of that is going to be deducted if any.
Speaker Change: So, like I said, they're not, they're not going to affect our royalty, it may affect at the low-run cars, how many cars are sold in general, but, you know, when you're in the premium market, you know, and let me give you a simple example in...
Speaker Change: China, for example, which was the largest market for Mercedes and BMW and Audi.
Speaker Change: Charging a lot for these cars and they still sold very well so at the high end I don't expect there to be much much movement in terms of what the tariffs are doing and I also you know as
Speaker Change: Someone that's a student of politics and a student of economics.
Speaker Change: Don't think they're going to be that long-standing. I may be wrong. I don't want to make the same mistake and say they're transitory that they said about inflation because that didn't happen. But I never said that either and I never believed it was. But in this case, I do believe that there will be somewhat more temporary than people expect. [inaudible]
Okay, that answers the question.
Speaker Change: And as a reminder, if you do have a question, please press star one on your phone. We do ask that you keep the questions brief in order to facilitate as many questions as possible.
and just one moment.
Our next question comes from John Nelson, an investor.
Hi, Joe. A couple of questions.
Speaker Change: First time, one that I always ask is any progress on the Sunvisor development?
Speaker Change: There is both on the OEM side and in the aftermarket side, but I have to leave it to the licensees to continue their work with their customers and get the product down, but it is something I believe a lot in.
Okay, understood.
Speaker Change: Jet Market is Embraer. Do you have any contacts with them? Are they aware of your product? Oh, yeah, very much. Very much so. Very much so.
Speaker Change: Matter of fact, some of the early expansion that...
Speaker Change: Our licensee in the aircraft market vision systems had done from being just European base to being worldwide was because of Embryer, and their transport category regional jets That's her great.
Speaker Change: Yep, and do you expect any of the new vehicles for 2025 to be in the middle market?
For cars? Yes.
Yes, I do okay.
Good.
and then just lastly...
last conference call.
You mentioned work on- [inaudible]
Holy Grail Patent, are they?
Speaker Change: Related to the black particle or are you just something? Well, black is certainly the holy grail and when I talk about that, you know, it's what the whole industry has been trying to get. So, you know, we're very excited about the black particle.
Speaker Change: We're experienced enough to know that what we showed at CES was remarkable. I mean, you know, if you saw this up close and personal, you would be extremely impressed with it.
Speaker Change: You know, I don't want to minimize it but it may be simply as easy as pouring in.
Speaker Change: More different material into the bucket and coding it. There's always adjustment so I wouldn't expect that to be what really happens, but it shouldn't be that difficult of a material to translate up into mass production.
Speaker Change: Good, very encouraging. That's all my questions. Thank you very much.
Thanks, John .
and our next question comes from August Berman and the investor.
Joe Harary: Hey, Jill, how are you? Hey, August , how are you, Dr. Berman, I must say, sorry.
Speaker Change: That's right. I'll tell you, calling just wanted to see with regard to the 2025s, are we talking about introductions, or do we know if it's more about revenues from the Navy vehicles?
Speaker Change: In the early days, there would be several years lead time between when an automaker wanted to think about putting SPD smart glass in a vehicle and when they would put it in, because you know, there was testing Mercedes went through.
Speaker Change: What they told me 5 million euros of testing and built special chambers and now they use it on all the materials but but
You know, in the case here of...
Nowadays, there's only a very short-
Speaker Change: I'm very, that's often necessary between when you decide to put SPD smart glass in a vehicle and when it goes in, you know, it could be a year, year and a half, and you know, we've been working with some of these companies for that period of time, so I think you'll expect introductions in 2025.
Assuming the car has come out. That's always the big, that's always the biggest
Speaker Change: I think it may be part of the frustration last year. We're just looking at the houses filing and I'm mentioning Daimler.
Speaker Change: at the SDD, and then I'm looking at the web and saying that this 2020 S-Class had been delayed, so I always kind of tried to connect it all up there, but do we still...
Speaker Change: Expecting the 80s and not a mill for bail to come out as well. Yes, yes, we are. Yes, we are.
Okay, and that's all I had Joe. Thank you [inaudible]
Thanks a lot.
Take care.
And our next question comes from Alan Ginsberg, an investor.
Yeah, hi, Joe. One quick, Alan.
Yeah, hi. The structure of the royalty agreement.
Speaker Change: Regarding the black particles, do you expect it to be similar to the royalty agreements that you have in place right now?
Speaker Change: Yeah, I mean that's something that we in Gaussian are going to determine, but I don't see a real need to change the royalty.
Arrangement, we get a 10-15%
Speaker Change: Royalty from the customer with the blue material and you would think that because the black is a better thing we would get more but on the other hand they would probably sell a lot more of the product or sell at a higher price so our Royalty could go up just with the you know the same percentages in place. [inaudible]
Speaker Change: But your protection is similar with the black particle as it would be your intellectual property protection as it would be in your other products, is that correct?
Speaker Change: Yeah, we're very focused on protecting IP, as you could tell. We have 250 patents and patent applications, and an equal number of that patent applications.
You know, quite a bit.
Speaker Change: Okay, thank you. It's a lot of. Thanks a lot. Thanks Alan. Right.
[inaudible]
Speaker Change: and our next question comes from Alan Yucoboff of King's View Partners.
Speaker Change: Joe, how are you doing today? Alan, how are you? And I'm sorry we haven't been able to hook up. I spoke to your partner when you had called but wasn't able to get back to you.
No problem.
Just a quick question. But you're here, so yeah.
Do you hear me?
Speaker Change: Yes. Can you hear me? Yeah. Yes, I can. 0.47% for the year and that's great. And you're saying you have momentum in all the markets for this year.
Speaker Change: Right. If you duplicate that number, it's terrific. I know you can have some lumpy quarters from time to time. Whatever reason. Right. If you're if you see momentum in all these markets, do you anticipate the possibility of a profitable quarter this year? Can you?
Thank you.
Sure, we almost hit profitability this past year, so I'm certainly looking forward to
Speaker Change: Achieving a truly profitable quarter in the coming year. A lot of it depends on the timing. If the car comes out at the end of the year versus the beginning of the year, that affects our royalties. But, and also if the architectural retrofit.
Speaker Change: comes out that could significantly increase our royalties, so we're very focused on that.
Speaker Change: and the 2026 event that you mentioned, or the potential for 2026 is something like any. Can you give us any more details for which markets are...
Is that then going to address? [inaudible]
for the Multiple Marks.
Speaker Change: Well, I would say that the most predictable market we have is automotive.
Speaker Change: So, if I'm projecting out to 2026, you know, it's probably an automotive project.
and multiple ones actually.
Speaker Change: All right, that's all I have. We'll just want to be brief
Thank you very much. Thanks Alan, appreciate it.
and our next question comes from William Brasel, an investor.
Yeah, good afternoon.
Hi, how are you? I'm good, but...
Speaker Change: I'm going to go back three years ago, because back in February of 2021, this stock was at $3.96
Today it's up 4.72% to $1.33.
Speaker Change: and one of your earlier callers talked about the problem with the stock prices, nobody knows about research, research frontier.
Speaker Change: That's not the problem. The problem is if you go out and do a road show now, you'll be wasting your time and the company's money because these broker-ditors...
Speaker Change: will not be interested until you have significant revenues and they will contact you.
and wanted to have a dialogue.
I'm in win-aid.
Speaker Change: You know, $500,001 million in revenue is not going to bring them to the table.
Speaker Change: I mean, I'm surprised that we're not based on what I knew three years ago that you're not, you know, in the hundreds of millions of dollars and obviously that would take care of the stock price.
and that's why I'm just appointed, then I'm...
Speaker Change: Wondering how much longer this is going to take to have that kind of significant revenue, if you can talk about it at this point? Sure, well I appreciate it and I'm also
Speaker Change: In agreement with you that the real money is going to come into research frontiers as an investment when we have much higher revenues.
Speaker Change: That's true. So, we need contracts and that's the problem is how do we, it's hard to be confident in that when I've been waiting for these significant contracts for three years.
Right. Now, I've been...
Speaker Change: I'm very sympathetic to what you're saying there. We are working and Gaussian is working as hard as we can to land these contracts sooner to be able to talk about them sooner so that the stock price
The least thing I'm worried about is revenue.
Speaker Change: You know, it's really what can we say about it and what you know and those are the things we're working on right now but I appreciate the question and I am I am an agreement that our stock price will do much better when we can talk about more of this stuff and have higher revenue. I am I am I am I am I am I am
Speaker Change: Because I know these companies and you have a fiduciary responsibility as a publicly traded company to make those announcements on a timely basis when you do have a significant contract. So I'm not worried about that happening, but I just hope it does happen sometime soon.
Speaker Change: Right, right, while we try to have as many things in the works so that we could have more and more of those.
Okay, well, I'm hopeful when I obviously I've been hanging on.
Thank you very much and I appreciate the trust. Okay, thank you for your time.
Thank you.
Speaker Change: And if there are any final questions, please press star one on your phone now.
Speaker Change: Well, I think we've answered a lot of the questions, and if we haven't fully answered...
Speaker Change: The question, anyone's questions, please feel free to either email us or call us. We're happy to talk to you. I like to make a few closing remarks now if I could.
Speaker Change: For the past several years, you've seen a constant increase in revenues year over year and a steady reduction in operating expenses, without a reduction in operational or other business accomplishments.
The reason for this is simple.
Speaker Change: We have a highly desirable and the best performing smart glass technology in the world, and by increasing revenues, reducing expenses, and preserving the best aspects of our asset light business model, we're steadily moving towards being cash flow positive and profitable.
Speaker Change: We go elephant hunting and nobody is better at this than us in our licensees and it creates steady revenues from each of the programs that last for years as we land these programs.
Speaker Change: In areas like Architectural, the numbers can be even bigger by virtue of the sheer magnitude of the size of the glass market for buildings and homes. Also, the cell cycle can be much shorter than aircraft and automotive, especially now with the SPD Smart Glass RetroFid application.
Speaker Change: Several of our competitors who have raised massive amounts of money and inevitably spent even more than they raised, notably companies such as View and Haleo went bankrupt this year.
Speaker Change: Another company just got delisted. Part of this relates to the limitations in their technologies and part of this is that they were only able to approach one market and part of this was simply not paying attention to key areas of their business.
Speaker Change: But by preserving our asset light business model all along the way, we're well positioned to reduce risks, apply more of our resources towards technology and market enhancements and expansion.
Speaker Change: of a large list of diversified licensees by working with them closely from a technological and business development perspective.
Speaker Change: This allows us to have a strong presence in multiple industries that others can't, such as automotive, aircraft, architectural, marine, and consumer electronics.
Speaker Change: We can start to pay dividends to our investors more quickly.
Speaker Change: I thank you very much for your continued support as we travel together, down this road together.
Speaker Change: And if you believe that the future is smart, Louse, and I believe all of us here do.
Speaker Change: and you like diversified asset-like companies and a management team focused on efficiency and driving the company towards profitability and you've come to the right place.
Thank you very much [inaudible]