Q4 2025 Research Frontiers Inc Earnings Call

March 5, 2026

Operator: 5 results of operations and recent developments. 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. 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. Some statements today may contain forward-looking information identified by words such as expect, anticipate, and forecast. 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. Research Frontiers assumes no obligation to update or revise these statements. Today's call is in a listen-only mode with a Q&A session to follow. To ask a question, press star one.

Time for results of operations and recent developments. 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. 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.

The statements today may contain forward-looking information identified by words such as expect, anticipate and forecast.

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.

Research Frontiers assumes, no obligation to update or revise the statements.

Today's call is in a listen-only mode with a Q&A session to follow to ask a question. Press star 1, the call is being recorded and will be available for replay on Research Frontiers website at smartglass.com for the next 90 days.

During the question and answer portion of today's call if you find that your question has been substantially answered.

As a courtesy and to allow time. For other shareholders to ask their questions. Please remove yourself from the queue, by pressing star 2.

Operator: The call is being recorded and will be available for replay on Research Frontiers' website at smartglass.com for the next 90 days. During the question and answer portion of today's call, if you find that your question has been substantially answered, as a courtesy and to allow time for other shareholders to ask their questions, please remove yourself from the queue by pressing star 2. Also, we ask that you keep your questions brief in the interest of time. I would now like to turn the conference over to Joe Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

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

I would now like to turn the conference over to Joe Harari president and chief executive officer of research, Frontiers. Please go ahead sir.

And thank you, Paul. And thank you everyone for joining us for our year end and fourth quarter 2025 conference call.

2025 was the year of not just incremental developments, but structural adjustments in the supply chain and meaningful expansion in our Automotive pipeline architectural, retrofit execution, and new product development and capital positioning.

Joseph M. Harary: Thank you, Paul, and thank you everyone for joining us for our year-end and Q4 2025 conference call. 2025 was a year of not just incremental developments, but structural adjustments in the supply chain and meaningful expansion in our automotive pipeline, architectural retrofit execution, and new product development and capital positioning. This call is important because when you step back and look at 2024 and 2025 together, the trajectory of this becomes clearer. We have maintained production continuity in automotive through licensee transitions, expanded OEM engagement with high unit volume vehicle programs, allowing cost reductions by our licensees and expanded engagement through other areas of the vehicle besides just the sunroof. We've seen Ferrari expand production of cars with SPD-SmartGlass and Cadillac enter the market with SPD. We've seen Mercedes showcase SPD broadly in a concept vehicle and launched architectural retrofit initiatives.

Joe Harary: Thank you, Paul, and thank you everyone for joining us for our year-end and Q4 2025 conference call. 2025 was a year of not just incremental developments, but structural adjustments in the supply chain and meaningful expansion in our automotive pipeline, architectural retrofit execution, and new product development and capital positioning. This call is important because when you step back and look at 2024 and 2025 together, the trajectory of this becomes clearer. We have maintained production continuity in automotive through licensee transitions, expanded OEM engagement with high unit volume vehicle programs, allowing cost reductions by our licensees and expanded engagement through other areas of the vehicle besides just the sunroof. We've seen Ferrari expand production of cars with SPD-SmartGlass and Cadillac enter the market with SPD. We've seen Mercedes showcase SPD broadly in a concept vehicle and launched architectural retrofit initiatives.

this call is important because when you step back and look at 2024 and 2025 together, the trajectory of this becomes clearer

We have maintained production continuity and Automotive through licensee transitions, expanded OEM engagement with high unit volume vehicle. Programs allowing cost reductions by our licenses and expanded engagement through other areas of the vehicle besides just the sunroof.

we've seen Ferrari expand production of cars with SPD Smart Glass and Cadillac engine the market with SPD

We've seen Mercedes showcase, SPD broadly in a concept vehicle and launched architectural retrofit initiatives.

Uh, we've seen advancement in the black SPD development. We've strengthened our balance sheet and our licenses. And I think this is important are making new Investments that are specific to SPD business and they're moving forward and winning new business. We're going to talk about that later.

Joseph M. Harary: We've seen advancement in the black SPD development. We've strengthened our balance sheet and our licensees, and I think this is important, are making new investments that are specific to SPD business, and they're moving forward and winning new business. We're gonna talk about that later. I'll begin with financial results in our recent financing and then address Gauzy directly and then transition to the significant positive developments that have occurred since our last conference call. For the full year 2025 and continuing in 2026, we remain debt-free. We've strengthened our working capital. Our royalties improved when adjusted for one-time licensee events early in the year. Let me now just address our February financing directly because we've gotten some questions about it.

Joe Harary: We've seen advancement in the black SPD development. We've strengthened our balance sheet and our licensees, and I think this is important, are making new investments that are specific to SPD business, and they're moving forward and winning new business. We're gonna talk about that later. I'll begin with financial results in our recent financing and then address Gauzy directly and then transition to the significant positive developments that have occurred since our last conference call. For the full year 2025 and continuing in 2026, we remain debt-free. We've strengthened our working capital. Our royalties improved when adjusted for one-time licensee events early in the year. Let me now just address our February financing directly because we've gotten some questions about it.

I'll begin with financial results and our recent financing and then address gallzy directly and then transition to the significant positive developments that have occurred since our last conference call.

For the full year, 2025 and continuing in 2026, we remain debt-free. We strengthened our working capital, uh, our royalties improved when adjusted for 1-time, licensee events, early in the year. And, uh, let me now, just address our February financing directly, because we've gotten some questions about it and keep in mind. Um, I'm trying to save time by answering as many questions as possible. And I have, uh, basically taken questions that have been given to us and included many of them in my presentation. So, um, hopefully that'll allow us to officially cover a lot of ground, because there's a lot of good things to talk about.

Joseph M. Harary: Keep in mind, I'm trying to save time by answering as many questions as possible, and I've basically taken questions that have been given to us and included many of them in my presentation. Hopefully that'll allow us to efficiently cover a lot of ground because there's a lot of good things to talk about. As we disclosed in our 18 February 2026 Form 8-K, we completed an oversubscribed $1.1 million private placement at $1 per share with 5-year warrants that are at increasing exercise prices. This offering included accredited investors, several family members of one of our directors, and also importantly, the owner of one of our SPD licensees. I think even more significant, the one responsible for the SPD architectural retrofit application. We all believe that the retrofit represents a potentially very significant market.

Joe Harary: Keep in mind, I'm trying to save time by answering as many questions as possible, and I've basically taken questions that have been given to us and included many of them in my presentation. Hopefully that'll allow us to efficiently cover a lot of ground because there's a lot of good things to talk about. As we disclosed in our 18 February 2026 Form 8-K, we completed an oversubscribed $1.1 million private placement at $1 per share with 5-year warrants that are at increasing exercise prices. This offering included accredited investors, several family members of one of our directors, and also importantly, the owner of one of our SPD licensees. I think even more significant, the one responsible for the SPD architectural retrofit application. We all believe that the retrofit represents a potentially very significant market.

As we disclosed, in our February 18th, 2026 form a k, we completed an oversubscribed 1.1 million, private placement at a dollar per share with 5-year warrants that are at increasing exercise prices.

Why closest to execution of this invests? Its own Capital, alongside long-term shareholders. I think that speaks clearly about their confidence in that opportunity.

Joseph M. Harary: When the licensee closest to execution of this invests its own capital alongside long-term shareholders, I think that speaks clearly about their confidence in that opportunity. Let me clarify something that I addressed in prior calls. I had stated that we would not need to raise capital if we were paid what we were owed and if we did not experience additional disruptions, and there were several in 2025. I also said we might raise capital for strategic reasons. In 2025, all of these elements were present. We experienced AGP-related developments, Gauzy's French subsidiary rehabilitation process, and slower collection of certain receivables, some of which are now being collected as we speak. At the same time, we saw expanding opportunities in automotive programs, architectural retrofit, and black SPD development, as well as new product opportunities.

Joe Harary: When the licensee closest to execution of this invests its own capital alongside long-term shareholders, I think that speaks clearly about their confidence in that opportunity. Let me clarify something that I addressed in prior calls. I had stated that we would not need to raise capital if we were paid what we were owed and if we did not experience additional disruptions, and there were several in 2025. I also said we might raise capital for strategic reasons. In 2025, all of these elements were present. We experienced AGP-related developments, Gauzy's French subsidiary rehabilitation process, and slower collection of certain receivables, some of which are now being collected as we speak. At the same time, we saw expanding opportunities in automotive programs, architectural retrofit, and black SPD development, as well as new product opportunities.

And let me clarify something that I addressed in Prior calls. I had stated that we would not need to raise Capital. If we were paid, what we were owed. And if we did not experience additional disruptions and there, there were several in 2025 and I also said, we might raise capital for strategic reasons.

In 2025.

All of these elements were present.

We experienced AGP related developments gazi's French subsidiary, Rehabilitation process and slower collection of certain receivables. Some of which are now being collected as we speak. At the same time, we saw expanding opportunities in automotive, programs architectural retrofit and black SPD development, as well as new products opportunities.

Given that combination, we believed that we believed that it was prudent to modestly reinforce the balance sheet. We deliberately kept the offering small and focused and it was done at a market price.

Participants were long-term holders who other than our licensee had participated in Prior friends and family offerings including our last 1 in September 2022.

Joseph M. Harary: Given that combination, we believed that it was prudent to modestly reinforce the balance sheet. We deliberately kept the offering small and focused. It was done at a market price. Participants were long-term holders who, other than our licensee, had participated in prior friends and family offerings, including our last one in September 2022. The shares were not registered for resale and are subject to at least a six-month holding period. We enter 2026 with strength, liquidity, no debt, and resources to execute on our business. I know a lot of people have been frustrated by the silence that has been coming out of our licensee, Gauzy. Let me now address Gauzy directly. In mid-November, Gauzy's French subsidiaries entered into a court-supervised rehabilitation proceeding in France. This applies specifically to the French entities.

Joe Harary: Given that combination, we believed that it was prudent to modestly reinforce the balance sheet. We deliberately kept the offering small and focused. It was done at a market price. Participants were long-term holders who, other than our licensee, had participated in prior friends and family offerings, including our last one in September 2022. The shares were not registered for resale and are subject to at least a six-month holding period. We enter 2026 with strength, liquidity, no debt, and resources to execute on our business. I know a lot of people have been frustrated by the silence that has been coming out of our licensee, Gauzy. Let me now address Gauzy directly. In mid-November, Gauzy's French subsidiaries entered into a court-supervised rehabilitation proceeding in France. This applies specifically to the French entities.

The shares were not registered for resale and are subject to at least a 6-month holding period.

We enter 2026 with strength and liquidity and no debt and resources to execute on our business.

I know a lot of people have been frustrated by the silence that has been coming out of life or licensee ghausi. So let me now address ghausi directly.

In mid November gazi's French subsidiaries.

Uh, entered into a court supervised Rehabilitation proceeding in France?

This applies specifically to the French entities.

It does not apply to gazi's German SPD Film. Production facility, it does not apply to SPD Emulsion production in Israel.

However, as 1 would expect through most business organizations, this filing has had some Ripple effects.

Liquidity has been reallocated by gazi to satisfy the re the French Rehabilitation monitors,

That allocation appears to have temporarily reduced access to liquidity.

Joseph M. Harary: It does not apply to Gauzy's German SPD film production facility. It does not apply to SPD emulsion production in Israel. However, as one would expect through most business organizations, this filing has had some ripple effects. Liquidity has been reallocated by Gauzy to satisfy the French rehabilitation monitors. That allocation appears to have temporarily reduced access to liquidity in other areas of the company, and Gauzy is actively working to address this. Senior management time and attention has understandably at Gauzy been focused on stabilizing and addressing these matters. In addition, Gauzy reduced headcount, and let me just say that sometimes workforce reductions are never easy, but by adjusting expenses and overhead, it can strengthen the long-term sustainability of a company. These actions by Gauzy appear aimed at lowering operating expenses, reducing capital requirements, and moving toward a more stable operating profile for Gauzy.

Joe Harary: It does not apply to Gauzy's German SPD film production facility. It does not apply to SPD emulsion production in Israel. However, as one would expect through most business organizations, this filing has had some ripple effects. Liquidity has been reallocated by Gauzy to satisfy the French rehabilitation monitors. That allocation appears to have temporarily reduced access to liquidity in other areas of the company, and Gauzy is actively working to address this. Senior management time and attention has understandably at Gauzy been focused on stabilizing and addressing these matters. In addition, Gauzy reduced headcount, and let me just say that sometimes workforce reductions are never easy, but by adjusting expenses and overhead, it can strengthen the long-term sustainability of a company. These actions by Gauzy appear aimed at lowering operating expenses, reducing capital requirements, and moving toward a more stable operating profile for Gauzy.

Other area in other areas of the company and gazi is actively working to address this.

Senior Management time and attention is understandably. Understandably at gazi been focused on stabilizing and addressing these matters.

in addition, gazi reduced headcount, and let me just say that sometimes Workforce reductions are never easy but by adjusting expenses and overhead, it can strengthen the long-term sustainability of a company

these actions by gazi appear aimed at lowering operating expenses, reducing Capital requirements and moving toward a more stable operating profile for gallzy

and even the midst of midst, of all of this, SPD Emulsion production in Israel and SPD Film Production in Germany, continues.

in the midst of this automotive and Architectural development programs, continue and expand

gazi is reconstituting its board to restore.

Its NASDAQ compliance.

They postponed, their third quarter 2025 conference call due to the timing of the French filing.

Joseph M. Harary: Even in the midst of all of this, SPD emulsion production in Israel and SPD film production in Germany continues. In the midst of this, automotive and architectural development programs continue and expand. Gauzy is reconstituting its board to restore its Nasdaq compliance. They postponed their Q3 2025 conference call due to the timing of the French filing. I think it's important to understand that as a foreign issuer, they're required to file financials only semi-annually. As a foreign issuer, their Q3 filing was purely voluntary, and their annual filing is not due until the end of April. They're on a bit of a different SEC reporting schedule than we are as a US reporting company. From our standpoint, we remain in regular contact with them almost daily.

Joe Harary: Even in the midst of all of this, SPD emulsion production in Israel and SPD film production in Germany continues. In the midst of this, automotive and architectural development programs continue and expand. Gauzy is reconstituting its board to restore its Nasdaq compliance. They postponed their Q3 2025 conference call due to the timing of the French filing. I think it's important to understand that as a foreign issuer, they're required to file financials only semi-annually. As a foreign issuer, their Q3 filing was purely voluntary, and their annual filing is not due until the end of April. They're on a bit of a different SEC reporting schedule than we are as a US reporting company. From our standpoint, we remain in regular contact with them almost daily.

But I think it's important to understand that as a foreign issuer. They're required to file financials, only semiannually and, as a foreign issuer, their third quarter filing was purely voluntarily voluntary and their annual filing is not due until the end of April. So they're on a bit of a different as we see reporting scheduled and we are as a US reporting company.

From our standpoint. We remain in regular contact with them um almost daily uh production inside and outside of France continues.

Program execution continues.

And progress on multiple fronts continues even during these restructuring efforts by Galaxy and we'll talk about some of those things, a little later on the call.

so now let me move from

The discussion about stabilization to the acceleration of our business.

Joseph M. Harary: Production inside and outside of France continues, program execution continues, and progress on multiple fronts continues even during these restructuring efforts by Gauzy. We'll talk about some of those things a little later on in the call. Now let me move from the discussion about stabilization to the acceleration of our business. While restructuring efforts were underway, development did not pause. Since our November call, expansion has accelerated. Ferrari continues to produce vehicles utilizing SPD-SmartGlass, even though licensed supplier AGP and their European affiliate, Soliver, both filed for bankruptcy protection in 2025, this had a six-figure impact on recorded royalties for us during 2025. We successfully transitioned the Ferrari business to another licensee, Isoclima. Even though this transition occurred midyear, Isoclima's sales levels exceeded their minimum annual royalty thresholds in Q3 and Q4 of 2025.

Joe Harary: Production inside and outside of France continues, program execution continues, and progress on multiple fronts continues even during these restructuring efforts by Gauzy. We'll talk about some of those things a little later on in the call. Now let me move from the discussion about stabilization to the acceleration of our business. While restructuring efforts were underway, development did not pause. Since our November call, expansion has accelerated. Ferrari continues to produce vehicles utilizing SPD-SmartGlass, even though licensed supplier AGP and their European affiliate, Soliver, both filed for bankruptcy protection in 2025, this had a six-figure impact on recorded royalties for us during 2025. We successfully transitioned the Ferrari business to another licensee, Isoclima. Even though this transition occurred midyear, Isoclima's sales levels exceeded their minimum annual royalty thresholds in Q3 and Q4 of 2025.

While restructuring efforts were underway development, did not pause. Since our November call expansion has accelerated

Ferrari. Continues to produce Vehicles. Utilizing SPD Smart Glass.

This had a 6-figure impact on recorded.

Royalties for us during 2025.

But we successfully transitioned, the Ferrari business to another licensee ESO klema.

And even though this transition occurred midyear Esa claim is sales levels, exceeded their minimum annual royalty thresholds in the third and fourth quarter of 2025

Now, maintaining continuity through a supply chain. Uh, shift requires execution, even when 1 has to Zig and zag and we had to do that. So initially, um, AGP asked that we transition the Ferrari business to their sister company,

Joseph M. Harary: Maintaining continuity through a supply chain shift requires execution, even when one has to zig and zag, and we had to do that. Initially, AGP asked that we transition the Ferrari business to their sister company, Soliver in Belgium. When some of the key suppliers, not SPD, but you know, just in general for automotive glass, pulled their support, they moved it back to their production in Peru. That didn't survive, so we had to shift it over to Isoclima. I think that, you know, while that was certainly challenging for everybody, we successfully emerged, and I think it illustrates pretty clearly the strength and the robustness of our supply chain. Moving from Ferrari to Cadillac, they also entered the market with SPD-SmartGlass in the Cadillac Celestiq this year.

Joe Harary: Maintaining continuity through a supply chain shift requires execution, even when one has to zig and zag, and we had to do that. Initially, AGP asked that we transition the Ferrari business to their sister company, Soliver in Belgium. When some of the key suppliers, not SPD, but you know, just in general for automotive glass, pulled their support, they moved it back to their production in Peru. That didn't survive, so we had to shift it over to Isoclima. I think that, you know, while that was certainly challenging for everybody, we successfully emerged, and I think it illustrates pretty clearly the strength and the robustness of our supply chain. Moving from Ferrari to Cadillac, they also entered the market with SPD-SmartGlass in the Cadillac Celestiq this year.

Uh, solver in Belgium. And when some of the key suppliers, uh, not SPD but, you know, just in general for automotive glass, uh, pulled their support, uh, they moved it back to their production in Peru. Um, and then, that didn't survive. So we had to shift it over to Esau CLA. But I think that, you know, while that was certainly challenging for everybody, um, we we successfully emerged and I think it illustrates, um, pretty clearly the strength and the robustness of our supply chain.

Uh, moving from Ferrari to Cadillac. They also entered the market with SPD Smart Glass and the Cadillac Celeste this year and the Celeste is General Motors Flagship Ultra luxury vehicle.

And it has garnered great industry and press accolades.

With a strong and positive focus on the 4 quadrant SPD smart roof.

Joseph M. Harary: The Celestiq is General Motors' flagship ultra-luxury vehicle, and it has garnered great industry and press accolades with a strong and positive focus on the four-quadrant SPD-Smart Roof. It represents adoption by a major US OEM, our first, and also validates SPD in a next-generation engineered platform for General Motors. We believe this will result in substantial additional business for us. It's certainly significant that SPD-SmartGlass was chosen and introduced in European ultra-performance and American ultra-luxury vehicles. Mercedes also recently unveiled a concept vehicle featuring SPD integrated across much of the car, not just the roof. I think it was 75% of the surface area of the glass. As those familiar with the automotive industry understand, concept vehicles often signal direction.

Joe Harary: The Celestiq is General Motors' flagship ultra-luxury vehicle, and it has garnered great industry and press accolades with a strong and positive focus on the four-quadrant SPD-Smart Roof. It represents adoption by a major US OEM, our first, and also validates SPD in a next-generation engineered platform for General Motors. We believe this will result in substantial additional business for us. It's certainly significant that SPD-SmartGlass was chosen and introduced in European ultra-performance and American ultra-luxury vehicles. Mercedes also recently unveiled a concept vehicle featuring SPD integrated across much of the car, not just the roof. I think it was 75% of the surface area of the glass. As those familiar with the automotive industry understand, concept vehicles often signal direction.

It red represents adoption by a major US OEM our first and also validates SPD and a Next Generation engineered platform for General Motors. We believe this will result in substantial additional business for us.

And it's certainly significant that SPD Smart Glass was chosen and introduced in European Ultra performance and American Ultra Luxury vehicles.

Mercedes also recently unveiled. The concept vehicle featuring SPD into credit across much of the car, not just the roof. I think it was 75% of the surface area of the glass.

As those familiar with the automotive industry, understand.

Concept vehicles often signal Direction.

They reflect where engineering resources are being allocated and based upon feedback where marketing resources are deployed and what makes it into ultimately new vehicles.

Let's reflect since our November 2025 conference call, I was the keynote speaker, at the automotive glazing Summit in Detroit.

We now have high volume quotations on 4 models.

Joseph M. Harary: They reflect where engineering resources are being allocated and based upon feedback, where marketing resources are deployed and what makes it into ultimately new vehicles. Let's reflect. Since our November 2025 conference call, I was the keynote speaker at the North American Vehicle Glazing Innovation Summit in Detroit. We now have high volume quotations on 4 models of automotive in the automotive sector. Since our last conference call, we have also started work with a new European OEM, and in addition to those models, which can represent hundreds of thousands of units, we also have specialty programs with potential annual volumes in the tens of thousands of units that recently came on board since the last conference call. The automotive pipeline today is broader than at any point in our history. To talk a little bit now about some of the new products and technical advances.

Joe Harary: They reflect where engineering resources are being allocated and based upon feedback, where marketing resources are deployed and what makes it into ultimately new vehicles. Let's reflect. Since our November 2025 conference call, I was the keynote speaker at the North American Vehicle Glazing Innovation Summit in Detroit. We now have high volume quotations on 4 models of automotive in the automotive sector. Since our last conference call, we have also started work with a new European OEM, and in addition to those models, which can represent hundreds of thousands of units, we also have specialty programs with potential annual volumes in the tens of thousands of units that recently came on board since the last conference call. The automotive pipeline today is broader than at any point in our history. To talk a little bit now about some of the new products and technical advances.

Of Automotive, uh, in the automotive sector. Since our last conference call, we have also started work with new, a new European OEM.

And in addition to those models, which can represent hundreds of thousands of units, we also have specialty programs with potential annual volumes in the tens of thousands of units that recently came on board since the last conference call.

The automotive pipeline today is broader than at any point in our history.

We talked a little bit now, about some of the, uh, new products and Technical advances, SPD black continues to advance. And oems have made clear their preference for glazing applications that require a neutral or black aesthetic.

Black SPD addresses that requirement and broadens the market.

Joseph M. Harary: SPD continues to advance, and OEMs have made clear their preference for glazing applications that require a neutral or black aesthetic. black SPD addresses that requirement and broadens the market. We are also advancing new SPD film variants, optical refinements, IR and UV integration, improved manufacturing and yield, and broader access to key ancillary technologies to make a super smart window. These are adoption-enabling refinements driven by OEM feedback, and of course, we listen carefully to the customer writing the checks. Moving now to the architectural market. Since our last conference call, we and our licensee, AIT, also known as LTI SmartGlass, launched the retrofit architectural SPD product at GlassBuild America in Orlando. We have identified four initial retrofit projects of different sizes. Each highlights a different advantage of the SPD retrofit system, which is why they were selected.

Joe Harary: SPD continues to advance, and OEMs have made clear their preference for glazing applications that require a neutral or black aesthetic. black SPD addresses that requirement and broadens the market. We are also advancing new SPD film variants, optical refinements, IR and UV integration, improved manufacturing and yield, and broader access to key ancillary technologies to make a super smart window. These are adoption-enabling refinements driven by OEM feedback, and of course, we listen carefully to the customer writing the checks. Moving now to the architectural market. Since our last conference call, we and our licensee, AIT, also known as LTI SmartGlass, launched the retrofit architectural SPD product at GlassBuild America in Orlando. We have identified four initial retrofit projects of different sizes. Each highlights a different advantage of the SPD retrofit system, which is why they were selected.

We are also advancing new SPD film variants Optical refinements, ir and UV integration improved, manufacturing and yield. And broader access to key ancillary Technologies to make a super smart window.

These are adoption enabling refinements driven by OEM feedback and of course we listen carefully to the customer writing the checks.

Moving now to the architectural Market.

Um, since our last conference call we and our licensee AIT also known as LTI Smart. Glass launched the retrofit architectural, SPD product that glass build America in Orlando.

We have identified 4 initial retrofit projects of different sizes. Each highlights a different advantage of the SPD retrofit system, which is why they were selected.

In multiple cases, removing exterior glazing would be disruptive or costly.

To give an example. In 1 case, the building is a historically, designated building.

Electrochromic glass.

Joseph M. Harary: In multiple cases, removing exterior glazing would be disruptive or costly. To give an example, in 1 case, the building is a historically designated building. That project initially specified SageGlass electrochromic glass. Because SageGlass and their electrochromics required exterior glass removal and replacement, and something that was actually restricted because of the historical designation, the project pivoted from electrochromic to SPD retrofit. Instead of replacing the facade, SPD upgrades performance from inside the existing frame. Why is this significant? The installed base of buildings globally is vastly larger than annual new construction, and the SPD retrofit system dramatically expands our addressable market and compresses manufacturing and installation time without requiring facade replacement or structural or occupant disruption. You could stay in the building while they do it. Other projects in the retrofit market also span residential and commercial buildings, as well as government installations.

Joe Harary: In multiple cases, removing exterior glazing would be disruptive or costly. To give an example, in 1 case, the building is a historically designated building. That project initially specified SageGlass electrochromic glass. Because SageGlass and their electrochromics required exterior glass removal and replacement, and something that was actually restricted because of the historical designation, the project pivoted from electrochromic to SPD retrofit. Instead of replacing the facade, SPD upgrades performance from inside the existing frame. Why is this significant? The installed base of buildings globally is vastly larger than annual new construction, and the SPD retrofit system dramatically expands our addressable market and compresses manufacturing and installation time without requiring facade replacement or structural or occupant disruption. You could stay in the building while they do it. Other projects in the retrofit market also span residential and commercial buildings, as well as government installations.

But because sage and their electrochromics required exterior. Glass removal and replacement and something that was actually restricted because of the historical designation the project pivoted from electrochromic to SPD retrofit,

Set of replacing. The facade SPD upgrades performance from inside the existing frame.

Why is this significant the installed base of buildings globally? Its vastly larger than annual new construction and the SPD retrofit system retrofit system dramatically expands or addressable market and compresses manufacturing and installation time without requiring facade replacement or structural or occupant disruption.

You can stay in the building while they do it, other projects, in the retrofit Market also span residential and commercial buildings, as well as Government installations.

And since our product launched last quarter, we are focusing on developing some new and Innovative ancillary systems and peripherals for the retrofit application.

with that, I look forward to answering your questions and we'll first include some of the questions previously sent in by our shareholders, uh, in

Joseph M. Harary: Since our product launch last quarter, we are focusing on developing some new and innovative ancillary systems and peripherals for the retrofit application. With that, I look forward to answering your questions. We'll first include some of the questions previously sent in by our shareholders. First, without pulling any punches, here are the additional questions we received that were emailed to us. In some cases, I'm combining several related questions into one. Also we covered some of these topics earlier, but I thought it would be helpful for you to hear some of the questions and for me to go into more detail. Joe, how concerned are you about Gauzy's French rehabilitation proceeding? What happens if things deteriorate further? Well, that's a fair question. By the way, all indications are that they're not going to deteriorate further.

Joe Harary: Since our product launch last quarter, we are focusing on developing some new and innovative ancillary systems and peripherals for the retrofit application. With that, I look forward to answering your questions. We'll first include some of the questions previously sent in by our shareholders. First, without pulling any punches, here are the additional questions we received that were emailed to us. In some cases, I'm combining several related questions into one. Also we covered some of these topics earlier, but I thought it would be helpful for you to hear some of the questions and for me to go into more detail. Joe, how concerned are you about Gauzy's French rehabilitation proceeding? What happens if things deteriorate further? Well, that's a fair question. By the way, all indications are that they're not going to deteriorate further.

So first without pulling any punches here are the additional questions, we received that were emailed to us, and in some cases I'm combining several related questions into 1 and also we covered some of these topics earlier, but I thought it would be helpful for you to you to hear some of the questions and for me to go into more detail.

Joe, How concerned are you about? Gazi's front, Rehabilitation preceding. What happens if things deteriorate further

Well, that's a fair question and by the way, all indications are that they're not going to deteriorate further. They're actually, uh, improving from where I sit.

First, it's important to separate the French subsidiary proceedings from the broader organization.

The rehabilitation process applies specifically and only to gazi's French subsidiaries. It does not apply to the German, SPD Film Production.

Outside of strict guard or the SPD Emulsion production operations in Israel.

Joseph M. Harary: They're actually improving from where I sit. First, it's important to separate the French subsidiary proceedings from the broader organization. The rehabilitation process applies specifically and only to GAU's French subsidiaries. It does not apply to the German SPD film production outside of Stuttgart or the SPD emulsion production operations in Israel. SPD film production in Germany continues, and SPD emulsion production in Israel continues. Automotive and architectural development programs continue. Market development and new business development for SPD continues. Yes, the French filing required liquidity allocation and management attention. Yes, GAU reduced headcount as a part of the restructuring. Restructuring, when done properly, can be a very healthy change that strengthens the company. You know, we of course, remain in regular contact with GAU. From our standpoint, we see operational continuity in SPD production and program execution.

Joe Harary: They're actually improving from where I sit. First, it's important to separate the French subsidiary proceedings from the broader organization. The rehabilitation process applies specifically and only to GAU's French subsidiaries. It does not apply to the German SPD film production outside of Stuttgart or the SPD emulsion production operations in Israel. SPD film production in Germany continues, and SPD emulsion production in Israel continues. Automotive and architectural development programs continue. Market development and new business development for SPD continues. Yes, the French filing required liquidity allocation and management attention. Yes, GAU reduced headcount as a part of the restructuring. Restructuring, when done properly, can be a very healthy change that strengthens the company. You know, we of course, remain in regular contact with GAU. From our standpoint, we see operational continuity in SPD production and program execution.

SPD Film Production, in Germany, continues.

And SPD Emulsion production in Israel continues.

Automotive and Architectural development programs. Continue.

Market development and new business development for SPD continues. And yes, the French filing required liquidity. All allocation and management attention, and yes. Gazi reduced headquart as a part of the restructuring, but restructuring when done properly can be very healthy, very healthy change that strengthens the company.

And you know we of course remain in regular contact with gallzy and from our standpoint we see operational continuity and SPD production and program execution.

Joseph M. Harary: I'm gonna take another question that's related to that. Do I have a contingency plan if Gauzy does not perform? The answer, Michael, is yes. We do. We have a plan A, B, C, and D. My preference is not to have to use any of those. Another question from Mr. Erdman. What can you say about the war? Well, war is bad. And if I had to say what was the most disruptive thing to our business. We have some key technical developments that are on the verge of happening within Gauzy, and we have some key meetings with companies outside of Israel that are going to be scheduled for this month or early next month. Really the limiting factor on both was when are they gonna open up the Israeli airspace.

Um, I'm going to take another question that's related to that. Do I have a contingency plan of Galaxy? Does not perform? Uh, the answer. Michael is. Yes. Uh, we do. We have a plan, A B, C and D. Um, my preference is not to have to use any of those. Um, another question from uh, Mr. Erdman, what can you say about the War? Uh, well war is bad. Um, and if I had to say what was the most disruptive thing to our business?

Joe Harary: I'm gonna take another question that's related to that. Do I have a contingency plan if Gauzy does not perform? The answer, Michael, is yes. We do. We have a plan A, B, C, and D. My preference is not to have to use any of those. Another question from Mr. Erdman. What can you say about the war? Well, war is bad. And if I had to say what was the most disruptive thing to our business. We have some key technical developments that are on the verge of happening within Gauzy, and we have some key meetings with companies outside of Israel that are going to be scheduled for this month or early next month. Really the limiting factor on both was when are they gonna open up the Israeli airspace.

Um, we have some key technical developments that are on the verge of happening within ghausi and um we have some key meetings with um companies outside of Israel that uh are going to be scheduled for this month or early next month and really the limiting factor on both was when are they going to open up? Uh,

the Israeli airspace, um,

Planes to other countries then trains and buses uh, including a 6 hour bus ride uh, to get home. Um they're very

Joseph M. Harary: Right now it's closed. I heard today, I think it was, that they're reopening it on Sunday. In some cases, people outside of Israel at Gauzy had to take planes to other countries, then trains and buses, including a six-hour bus ride, to get home. They're very able to operate on, you know, in these environments where that happens. You know, kudos to them for the strength and determination to do that. I got another question. Can you provide a postmortem why we didn't get a business on... There's a couple of class car models mentioned. This is from Jared. I'm gonna talk about three of them that are on his list. The only one I'm not talking about is Mercedes, and that's because of some active discussions going on.

Joe Harary: Right now it's closed. I heard today, I think it was, that they're reopening it on Sunday. In some cases, people outside of Israel at Gauzy had to take planes to other countries, then trains and buses, including a six-hour bus ride, to get home. They're very able to operate on, you know, in these environments where that happens. You know, kudos to them for the strength and determination to do that. I got another question. Can you provide a postmortem why we didn't get a business on... There's a couple of class car models mentioned. This is from Jared. I'm gonna talk about three of them that are on his list. The only one I'm not talking about is Mercedes, and that's because of some active discussions going on.

Able to operate on, you know, in these environments where that happens. So um you know, kudos to them for the strength and determination um to do that. Um, I got another question. Um,

Mercedes. Um and that's because of some active discussions going on but um, 1 of them was VW. Why don't we get the VW business? Or the rivian business, which is someone related since they kind of share a lot of the platforms together.

VW. Initially with the Porsche tycon went with a pdlc product.

and,

um,

I don't know why they did so I can't answer the question. Why didn't we get the business? Um,

Joseph M. Harary: One of them was VW. Why didn't we get the VW business or the Rivian business, which is somewhat related since they kinda share a lot of the platforms together. VW initially with the Porsche Taycan went with a PDLC product. I don't know why they did, so I can't answer the question, why didn't we get the business? I'm sure that they were told some things about the performance and reliability of PDLC, as was these other companies. It's probably interesting to note that they took the PDLC out of the, out of the Taycan. Sometimes what's promised isn't always delivered. The question also said, what about in particular Corvette? I know the reason.

Joe Harary: One of them was VW. Why didn't we get the VW business or the Rivian business, which is somewhat related since they kinda share a lot of the platforms together. VW initially with the Porsche Taycan went with a PDLC product. I don't know why they did, so I can't answer the question, why didn't we get the business? I'm sure that they were told some things about the performance and reliability of PDLC, as was these other companies. It's probably interesting to note that they took the PDLC out of the, out of the Taycan. Sometimes what's promised isn't always delivered. The question also said, what about in particular Corvette? I know the reason.

I'm sure that they were told some things about the performance and reliability of pdlc as was these other companies. Um,

It's probably interesting to note that they took the pdlc out of the, um, out of the tycon. So, sometimes, what's promised isn't always delivered. Um, and um, uh, and the question also said, what about in particularly Corvette? Um, I know the reason

it has nothing to do with performance and um and as many people on the call, may know um a company that is a well-known supplier of other products to uh to Corvette

Asked.

A supply a electrochromic sunroof uh it was announced with a lot of fanfare uh in August of this year by Corvette.

Joseph M. Harary: It has nothing to do with performance, as many people on the call may know, a company that is a well-known supplier of other products to Corvette asked to supply a electrochromic sunroof. It was announced with a lot of fanfare in August of this year by Corvette. There was some good press accolades, they realized that they couldn't produce it in scale, and they took it off the configuration list. Another question I got is there... This is from John Nelson. Is there a possibility that SPD can be used on Corvette roofs as a replacement for the sad option that GM offered earlier in 2025? Well, thank you for calling it a sad option. I don't wanna disparage anybody, I'm just reading literally the question. Thank you, John.

Joe Harary: It has nothing to do with performance, as many people on the call may know, a company that is a well-known supplier of other products to Corvette asked to supply a electrochromic sunroof. It was announced with a lot of fanfare in August of this year by Corvette. There was some good press accolades, they realized that they couldn't produce it in scale, and they took it off the configuration list. Another question I got is there... This is from John Nelson. Is there a possibility that SPD can be used on Corvette roofs as a replacement for the sad option that GM offered earlier in 2025? Well, thank you for calling it a sad option. I don't wanna disparage anybody, I'm just reading literally the question. Thank you, John.

there was some good press accolades and then

they realized that they couldn't produce it in scale and they took it off the configuration list. So, um,

Another question I got is is there and this is from John Nelson, is there a possibility that SPD can be used on Corvette, roofs as a replacement for the sad option that GM?

Joseph M. Harary: Not that I disagree, by the way. Yeah, as a matter of fact, I think our chances are much higher as a result of what happened there. I think people realized that what we've accomplished in automotive is unprecedented. We're in four different OEMs. That means four different quality assurance requirements, four different supply chain preferences, and we were successfully introduced in serious production in all of them. It's something that I highlighted at the Detroit Automotive Glazing Summit that I was the keynote and chairman of. I think now it's becoming crystal clear to a lot of the OEMs, you know, how hard that is to do what we and our licensees did and what it means to have a reliable supply chain like we have. Let me go back to some other questions.

Joe Harary: Not that I disagree, by the way. Yeah, as a matter of fact, I think our chances are much higher as a result of what happened there. I think people realized that what we've accomplished in automotive is unprecedented. We're in four different OEMs. That means four different quality assurance requirements, four different supply chain preferences, and we were successfully introduced in serious production in all of them. It's something that I highlighted at the Detroit Automotive Glazing Summit that I was the keynote and chairman of. I think now it's becoming crystal clear to a lot of the OEMs, you know, how hard that is to do what we and our licensees did and what it means to have a reliable supply chain like we have. Let me go back to some other questions.

Offered earlier in 2025. Um, well, thank you for calling at a sad option. I, I don't want to disparage, anybody, but I'm just reading literally the question. So thank you, John. Uh, not that I disagree by the way. Um yeah. Matter of fact, I think our chances are much higher um as a result of um what happened there. I think people realize that well we've accomplished an automotive is unprecedented. We're in 4 different oems, that means 4 different quality assurance requirements uh 4 different supply chain preferences. Um and we were successfully introduced in series production in all of them. So it's something that I highlighted at the Detroit Automotive glazing Summit that I was the keynote and chairman of, um, but I think now it's becoming crystal clear to a lot of the

The oems.

You know how hard that is to do it? What we and our licenses did and, um, and what it means to have a reliable supply chain, like we have,

um,

let me go back. Um,

to, um, some other questions um,

Do we see, you know stabilization efforts underway at at gallzy? Uh, yeah. Not only that but continued execution across all their active programs and they're making progress and they're fixing, uh, what are mostly entirely.

Um, cash flow.

Joseph M. Harary: Do we see, you know, stabilization efforts underway at Gauzy? Yeah, not only that, but continued execution across all their active programs. They're making progress, and they're fixing what are mostly entirely cash flow issues caused by the French bankruptcy. I think once that's done, everything comes together again nicely. Like I said earlier, we're in very close contact almost daily with them. You know, we've been trying to help them navigate as best we can through some of these issues and, you know, they're very receptive to that. All right, here's another tough question. When do you expect meaningful revenue growth from these automotive programs? In general, what gives you confidence that 2026 and beyond will be better? Well, thank you for that. Let me start not as an excuse, but an observation.

Joe Harary: Do we see, you know, stabilization efforts underway at Gauzy? Yeah, not only that, but continued execution across all their active programs. They're making progress, and they're fixing what are mostly entirely cash flow issues caused by the French bankruptcy. I think once that's done, everything comes together again nicely. Like I said earlier, we're in very close contact almost daily with them. You know, we've been trying to help them navigate as best we can through some of these issues and, you know, they're very receptive to that. All right, here's another tough question. When do you expect meaningful revenue growth from these automotive programs? In general, what gives you confidence that 2026 and beyond will be better? Well, thank you for that. Let me start not as an excuse, but an observation.

Uh, issues caused by the French bankruptcy, I think, once that's done, everything comes together again nicely. And like I said earlier, we're in very close contact, almost daily with them. And, you know, we've been trying to help them navigate as best, we can through some of these issues and, you know, they're very receptive to that.

Um, all right. Here's another tough question. Um, when do you expect meaningful Revenue growth from these Automotive programs and in general, what gives you confidence that 2026 and Beyond will be better.

Well, thank you, uh, for that. Um, let me start.

Not as an excuse but an observation Automotive integration takes time.

Um, you're talking about um vehicles that have thousands and thousands of parts and purchasing decisions and a lot of that has to be coordinated. Um, fortunately, we have a couple of things going on, uh, number 1,

Even though these things take time, we started them a while ago. So they're very much well underway. And also,

Joseph M. Harary: Automotive integration takes time. You're talking about vehicles that have thousands and thousands of parts and purchasing decisions, and a lot of that has to be coordinated. Fortunately, we have a couple of things going on. Number 1, even though these things take time, we started them a while ago, so they're very much well underway. Also, another thing that's extremely helpful, and I think every day it becomes clearer to the OEMs, our SPD technology has been validated across 4 OEMs. In the auto industry, you know, that's unprecedented, and we have even more OEMs in aircraft. I think that, you know, that reliability and continuity and maturity of the technology, I think has been very helpful.

Joe Harary: Automotive integration takes time. You're talking about vehicles that have thousands and thousands of parts and purchasing decisions, and a lot of that has to be coordinated. Fortunately, we have a couple of things going on. Number 1, even though these things take time, we started them a while ago, so they're very much well underway. Also, another thing that's extremely helpful, and I think every day it becomes clearer to the OEMs, our SPD technology has been validated across 4 OEMs. In the auto industry, you know, that's unprecedented, and we have even more OEMs in aircraft. I think that, you know, that reliability and continuity and maturity of the technology, I think has been very helpful.

And I think every day it becomes, clear to the oems, our SPD technology has been validated across 4 o 4 oems.

And in the Auto industry, uh you know that's unprecedented and we have even more oems and aircraft. So I think that

And continuity and maturity of the technology I think has been very helpful.

You know, but but the bottom line is, the seeds have been planted uh, getting back to the question and they've been nourished and now you're seeing them begin to grow and really, what matters?

Uh, and why I think this year is going to be different. And and, and this is going to continue is the breadth of our Pipeline and the

engagement of engineering that we have. Um, today we have

Joseph M. Harary: You know, the bottom line is the seeds have been planted, getting back to the question, they've been nourished, and now you're seeing them begin to grow. Really what matters, and why I think this year is going to be different and this is gonna continue, is the breadth of our pipeline and the engagement of engineering that we have. Today, we have Ferrari and McLaren models in production. We have Cadillac newly entered into production with some legs, basically within General Motors, some of which I alluded to earlier. Mercedes showcased casing SPD broadly in a concept platform. Four high volume quotations allowing us to get our costs down meaningfully. Additional new European OEM programs and specialty programs with tens of thousands of unit potential.

Joe Harary: You know, the bottom line is the seeds have been planted, getting back to the question, they've been nourished, and now you're seeing them begin to grow. Really what matters, and why I think this year is going to be different and this is gonna continue, is the breadth of our pipeline and the engagement of engineering that we have. Today, we have Ferrari and McLaren models in production. We have Cadillac newly entered into production with some legs, basically within General Motors, some of which I alluded to earlier. Mercedes showcased casing SPD broadly in a concept platform. Four high volume quotations allowing us to get our costs down meaningfully. Additional new European OEM programs and specialty programs with tens of thousands of unit potential.

Ferrari and McLaren models in production. We have Cadillac newly entered into production with some legs. Um, basically, within General Motors, uh, some of which I alluded to earlier, uh, Mercedes showcased, casing SPD broadly in a concept platform for high volume quotations, allow allowing us to get our costs down meaningfully.

uh additional new European OEM programs and Specialty programs with tens of thousands of unit potential and also uh I think

What's helpful is the new SPD related investment by our licenses so that breath is broader than at any point in our history. And that's why I think 2026 and Beyond will be different and you know, and as programs move from quotation to production Revenue follows but not before not any any automotive industry and not with a licensing model. So um we focus on execution and integration getting it into cars reliably.

Joseph M. Harary: I think what's helpful is the new SPD-related investment by our licensees. That breadth is broader than at any point in our history, and that's why I think 2026 and beyond will be different. You know, as programs move from quotation to production, revenue follows, but not before, not in the, in the automotive industry and not with a licensing model. We focus on execution and integration, getting it into cars reliably. Then for revenue for us and for our licensees, that follows integration. That's what we've been doing. It's very simple. Next question. Ferrari is low volume. Cadillac is ultra-low volume. Isn't this still a niche technology?

Joe Harary: I think what's helpful is the new SPD-related investment by our licensees. That breadth is broader than at any point in our history, and that's why I think 2026 and beyond will be different. You know, as programs move from quotation to production, revenue follows, but not before, not in the, in the automotive industry and not with a licensing model. We focus on execution and integration, getting it into cars reliably. Then for revenue for us and for our licensees, that follows integration. That's what we've been doing. It's very simple. Next question. Ferrari is low volume. Cadillac is ultra-low volume. Isn't this still a niche technology?

And then for revenue for us and for our lenses that follows integration. And that's what we've been doing, it's very simple.

Uh, next question.

Uh, Ferrari is low, volume. Cadillac is ultra low volume is in this still a niche technology.

Uh, well, Ferrari and Cadillac, and prior to the Mercedes and McLaren all validated performance of SPD technology and the ability of our supply chain to reliably produce for serial production, I might add produce for serial production across 4 different. Oems with 4, different requirements and 4 different production processes in 4 different. Uh procurement processes. We did it.

Joseph M. Harary: Well, Ferrari and Cadillac, prior to them, Mercedes and McLaren, all validated performance of SPD technology and the ability of our supply chain to reliably produce for serial production. I might add, produce for serial production across four different OEMs with four different requirements, four different production processes, and four different procurement processes. We did it. What matters now is expansion. We have four high volume quotations in the automotive industry. We also have specialty programs in the tens of thousands of unit range, and we also have broader glazing integration discussions beyond just sunroofs. The pipeline today is about scalability and not just halo vehicles. It's about cost, and it's about performance. We've always had great performance, but, you know, the scalability and the cost are things that we're now showing people we can do.

Joe Harary: Well, Ferrari and Cadillac, prior to them, Mercedes and McLaren, all validated performance of SPD technology and the ability of our supply chain to reliably produce for serial production. I might add, produce for serial production across four different OEMs with four different requirements, four different production processes, and four different procurement processes. We did it. What matters now is expansion. We have four high volume quotations in the automotive industry. We also have specialty programs in the tens of thousands of unit range, and we also have broader glazing integration discussions beyond just sunroofs. The pipeline today is about scalability and not just halo vehicles. It's about cost, and it's about performance. We've always had great performance, but, you know, the scalability and the cost are things that we're now showing people we can do.

Uh, what matters now is expansion and we have 4 high volume quotations. That uh in the automotive industry, we also have specialty programs in the tens of thousands of unit range and we also have broader glazing integration discussions Beyond just sunroofs. Uh so

The pipeline today is about scalability, and not just Halo Vehicles, it's about cost and it's about performance and we've always had great performance. But, uh, you know, the scalability and the cost are things that we're now showing people we can do.

Uh, another tough question. Also, Automotive related. If this technology is so compelling, why hasn't a major OEM adopted across all vehicles already?

Well, from your mouth to God's ears that it happens then.

Joseph M. Harary: Another tough question, also automotive related. If this technology is so compelling, why hasn't a major OEM adopted across all vehicles already? Well, from your mouth to God's ears that it happens, then it might, and I'll give you an example of why that might happen. Automotive adoption is very model specific, at least in the beginning, and very platform specific. OEMs integrate technology based on cost targets, feature positioning, and design cycles, and also what their competition is doing. We're now seeing broader glazing discussions beyond just sunroof panels, and that represents platform expansion. A useful historical analogy is anti-lock brakes. They began as a very expensive item, I mean, a fairly significant percentage of the car. Mercedes took a risk on that one.

Joe Harary: Another tough question, also automotive related. If this technology is so compelling, why hasn't a major OEM adopted across all vehicles already? Well, from your mouth to God's ears that it happens, then it might, and I'll give you an example of why that might happen. Automotive adoption is very model specific, at least in the beginning, and very platform specific. OEMs integrate technology based on cost targets, feature positioning, and design cycles, and also what their competition is doing. We're now seeing broader glazing discussions beyond just sunroof panels, and that represents platform expansion. A useful historical analogy is anti-lock brakes. They began as a very expensive item, I mean, a fairly significant percentage of the car. Mercedes took a risk on that one.

It might and I'll give you an example of why that might happen. But Automotive adoption is very model specific at least in the beginning and very platform specific oem's integrate Technology based on cost targets, feature, positioning and design cycles, and also what their competition is doing. But we're now seeing broader glazing discussions Beyond just sunroof panels and that represents platform expansion and a useful historical analogy is anti-lock brakes. They began as a very expensive item, I mean, it's fairly significant percentage of the car. Um, but Mercedes took a, a risk on that 1. Um, and even though it was very expensive, uh, and they put it in first and high-end Vehicles, it eventually became standard across the industry. And, you know, as many of, you know, we have very good relations with Mercedes and we speak to them often and we have um,

You know, pretty much an Insider's viewpoint on how they think about things.

Joseph M. Harary: Even though it was very expensive, they put it in first in high-end vehicles, it eventually became standard across the industry. You know, as many of you know, we have very good relations with Mercedes, and we speak to them often. We have, you know, pretty much an insider's viewpoint on how they think about things. I asked the guy that developed the S-Class, and of course, I met him in connection with our work on the SLK-Class and the SL-Class, and then the Maybach and the S-Class.

and I asked the guy that developed the S-class,

Joe Harary: Even though it was very expensive, they put it in first in high-end vehicles, it eventually became standard across the industry. You know, as many of you know, we have very good relations with Mercedes, and we speak to them often. We have, you know, pretty much an insider's viewpoint on how they think about things. I asked the guy that developed the S-Class, and of course, I met him in connection with our work on the SLK-Class and the SL-Class, and then the Maybach and the S-Class.

And of course I met him.

um, in connection with our work, on the SLK and the SL, and then the Maybach and the um, and the uh S-class

And we had a lot of discussions and I said to him, I said, hands, did you ever have any regrets about a decision? You made? He goes, well, not about SPD, but I did have 1 regret, we had developed a dynamic shop shock absorber system. That would take the 6 cameras in a car and feed the data into dynamically changing, the shock absorbers on the car.

Joseph M. Harary: We had a lot of discussions, and I said to him, I said, Hans, did you ever have any regrets about a decision you made? He goes, Well, not about SPD, but I did have one regret. We had developed a dynamic shock absorber system that would take the six cameras in a car and feed the data into dynamically changing the shock absorbers on the car. We could... You know, we wanted to call it either Magic Carpet Ride or Magic Glide Control. It made the car really, really smooth to drive. One day, Dieter Zetsche walked into my office and said BMW wants to license this from us. The regret I made is I said no. Had I said yes, that would have gotten the cost of that down.

Joe Harary: We had a lot of discussions, and I said to him, I said, Hans, did you ever have any regrets about a decision you made? He goes, Well, not about SPD, but I did have one regret. We had developed a dynamic shock absorber system that would take the six cameras in a car and feed the data into dynamically changing the shock absorbers on the car. We could... You know, we wanted to call it either Magic Carpet Ride or Magic Glide Control. It made the car really, really smooth to drive. One day, Dieter Zetsche walked into my office and said BMW wants to license this from us. The regret I made is I said no. Had I said yes, that would have gotten the cost of that down.

We wanted to call it either Magic Carpet Ride or magic Glide control. Uh, it made the car really, really smooth to drive.

And 1 day Jeter Zeta walked into my office and said, BMW wants to license this from us.

And the regret I made is I said no.

Because had I said, yes, that would have gotten the cost of that down.

And if I got the cost of it down by licensing BMW so that the unit volumes for our supplier were much higher.

Then it would have gone to other car makers, too.

And then it would have been in every 1 of our cars. So, Magic Ride Control, would have been in everything in Mercedes, and we'd have a better performing vehicle. So

Joseph M. Harary: If I got the cost of it down by licensing BMW so that the unit volumes for our supplier were much higher, then it would have gone to other car makers, too. It would have been in every one of our cars. Magic Ride Control would have been in everything at Mercedes, and we'd have a better performing vehicle. The thinking is, this happens more than I thought it would, that OEMs do share technology, and, you know, when they don't, they regret it sometimes. In our case, adoption, I think across every model within an OEM will happen when we address two things that we spoke about earlier, cost and color. We have already discussed the significant progress we made in both of these key areas.

Joe Harary: If I got the cost of it down by licensing BMW so that the unit volumes for our supplier were much higher, then it would have gone to other car makers, too. It would have been in every one of our cars. Magic Ride Control would have been in everything at Mercedes, and we'd have a better performing vehicle. The thinking is, this happens more than I thought it would, that OEMs do share technology, and, you know, when they don't, they regret it sometimes. In our case, adoption, I think across every model within an OEM will happen when we address two things that we spoke about earlier, cost and color. We have already discussed the significant progress we made in both of these key areas.

The thinking is and this happens more than I thought it would uh that oems do Share technology and you know, when they don't, they regret it sometimes. Um,

So in our case adoption, I think across every model within an oem will happen when we address 2 things that we spoke about earlier.

Cost and color.

We have already discussed the significant progress, we made in both of these key areas.

Um, next question, which I asked myself every day because I'm an investor is, why should investors be patient.

Um, well first of all, it's a little easier for me to be patient because I have more information, um, as you'd expect as to what's going on and what's in the pipeline. But I think if you look at this, even from an outside Viewpoint, um,

investors should be patient because the infrastructure has already been built.

Joseph M. Harary: Next question, which I ask myself every day because I'm an investor, is why should investors be patient? Well, first of all, it's a little easier for me to be patient because I have more information, as you'd expect as to what's going on and what's in the pipeline. I think if you look at this even from an outside viewpoint, investors should be patient because the infrastructure has already been built. You know, we have invested over $125 million in SPD and its markets. That's done. Because these major investments have been made and validated by significant customers, I think that's another reason to be patient. Diversification has increased. Diversification across multiple OEMs, diversification across now you're beginning to see different places in a car where this could be used, and you'll see more of that.

Joe Harary: Next question, which I ask myself every day because I'm an investor, is why should investors be patient? Well, first of all, it's a little easier for me to be patient because I have more information, as you'd expect as to what's going on and what's in the pipeline. I think if you look at this even from an outside viewpoint, investors should be patient because the infrastructure has already been built. You know, we have invested over $125 million in SPD and its markets. That's done. Because these major investments have been made and validated by significant customers, I think that's another reason to be patient. Diversification has increased. Diversification across multiple OEMs, diversification across now you're beginning to see different places in a car where this could be used, and you'll see more of that.

You know, we have invested over 125 million dollars in SPD, and its markets, that's done.

Because these major Investments have been made in validated by significant customers. I think that's another reason to be patient and diversification has increased diversification across multiple oems diversification across. Now, you're beginning to see different places in the car where this could be used, and you'll see more of that.

Um, I think we should be patient because

Production continuity, continuity has been maintained. Um,

I'll mention it very briefly because people sometimes say, well, why do you talk about the competition? Uh, I pay attention to the competition. Um, we've had several competitors, go bankrupt.

Joseph M. Harary: I think we should be patient because production continuity has been maintained. I'll mention it very briefly because people sometimes say, Well, why do you talk about the competition? I pay attention to the competition. We've had several competitors go bankrupt. The most recent, which you may not be aware of, was iRise, which is the company that makes architectural liquid crystal, not PDLC, but liquid crystal. Sometimes when you see something that looks like SPD, it was the iRise product in an architectural application. Well, they ended up liquidating, and that was within the last month or so.

Joe Harary: I think we should be patient because production continuity has been maintained. I'll mention it very briefly because people sometimes say, Well, why do you talk about the competition? I pay attention to the competition. We've had several competitors go bankrupt. The most recent, which you may not be aware of, was iRise, which is the company that makes architectural liquid crystal, not PDLC, but liquid crystal. Sometimes when you see something that looks like SPD, it was the iRise product in an architectural application. Well, they ended up liquidating, and that was within the last month or so.

Uh the most recent which you may not be aware of was irise which is the company that makes architectural Liquid Crystal. Not pdlc but liquid crystals. So sometimes when you see something that looks like, SPD it was the iris product in an architectural application. Uh, well, they ended up liquidating.

And that was within the last month or so, uh, so it's a tough industry. Um, but I think by being smarter,

And not that I'm the smarter 1 but just setting up a business that was smarter. Um, we've been able to have that production continuity that no 1 else has had. Um, new OEM programs have opened another reason to be patient because those things are seeds that have been planted that will will Sprout. The architectural retrofit greatly expands the addressable Market

Joseph M. Harary: It's a tough industry, but I think by being smarter, and not that I'm the smarter one, but just setting up a business that was smarter, we've been able to have that production continuity that no one else has had. New OEM programs have opened. Another reason to be patient, because those things are seeds that have been planted that will sprout. The architectural retrofit greatly expands the addressable market, these are all structural developments. Durable growth follows those structural expansions, those foundations that we build. We've also set the table for lower costs and higher revenues, all without requiring large capital expenditures or erosion of profit margins at Research Frontiers. We've built strong foundations and they're, we're growing from them, and I think that's why investors should be patient.

Joe Harary: It's a tough industry, but I think by being smarter, and not that I'm the smarter one, but just setting up a business that was smarter, we've been able to have that production continuity that no one else has had. New OEM programs have opened. Another reason to be patient, because those things are seeds that have been planted that will sprout. The architectural retrofit greatly expands the addressable market, these are all structural developments. Durable growth follows those structural expansions, those foundations that we build. We've also set the table for lower costs and higher revenues, all without requiring large capital expenditures or erosion of profit margins at Research Frontiers. We've built strong foundations and they're, we're growing from them, and I think that's why investors should be patient.

and these are all structural developments and durable, growth follows. Those structural expansions those foundations that we build.

so,

We've also set the table for lower costs and higher revenues. All without requiring large Capital expenditures or erosion of profit. Margins at research, Frontiers

So we've built strong foundations in their uh we're growing from them and I think that's why investors should be patient.

Joseph M. Harary: Well, we discussed a lot of exciting topics so far today, and I'll now ask our operator, Paul, to please open up the conference to any additional questions people participating today might have had that have not already been covered. Just one caveat, we have covered a lot of ground. The call was running a little bit long because there's a lot of exciting things that we wanted to talk about and share with you. If we've not fully answered any of your questions, but they've been substantially answered, email us rather than ask it on the call because we wanna leave time for as many other questions as possible. Paul, if you can open up the Q&A for live questions, I'd appreciate it.

Joe Harary: Well, we discussed a lot of exciting topics so far today, and I'll now ask our operator, Paul, to please open up the conference to any additional questions people participating today might have had that have not already been covered. Just one caveat, we have covered a lot of ground. The call was running a little bit long because there's a lot of exciting things that we wanted to talk about and share with you. If we've not fully answered any of your questions, but they've been substantially answered, email us rather than ask it on the call because we wanna leave time for as many other questions as possible. Paul, if you can open up the Q&A for live questions, I'd appreciate it.

Well, we discussed a lot of exciting topics so far today and I'll now ask our operator Paul to please. Open up the conference to any additional questions. People participating today might have had that have not already been covered and just 1 caveat. Um, we we have covered a lot of ground, the call was running a little bit long because there's a lot of exciting things that we want to talk about and share with you. Um, so if we've not fully answered any of your questions but there have been substantially answered um email us. Um, rather than ask it on the call because we want to leave time for as many other questions as possible.

so Paul, if you can

Open up the Q&A for live uh questions. I'd appreciate it.

If you would like to ask a question, please press star 1 on your telephone keypad now and you'll be placed into the queue in the order received.

Please be prepared to ask your question when prompted.

Operator: If you would like to ask a question, please press star one on your telephone keypad now, and you'll be placed into the queue in the order received. Please be prepared to ask your question when prompted. Once again, if you would like to ask a question, please press star one on your phone now. Our first question comes from Jeff Harvey, an investor.

And our first question comes from Jeff harvie an investor.

So, uh, gowy announced a $50 million funding proposal that obviously hasn't gone forward. At least, I haven't seen anything to indicate that uh that the funding has been in place.

Um, so that's a little disturbing.

the other thing is that, I think having, yeah, let me let me address that first because, um, having

You know.

Jeff Harvey: Gauzy announced a $50 million funding proposal that obviously hasn't gone forward. At least I haven't seen anything to indicate that the funding has been in place. That's a little disturbing. The other thing is-

Joseph M. Harary: Yeah, I get it. Let me address that first because, having, you know, cut my teeth on corporate transactions as a lawyer and, you know, also as a CEO of Research Frontiers, it's not that it hasn't gone forward, equity credit lines require a registration statement be filed with the SEC, and they go effective. Due to kind of the timing of the year, I believe that Gauzy would have to actually have their audited financials in place in order for them to file that registration statement. You know, I think, but I think it's also probably important, and I don't think I'm revealing anything that I shouldn't about Gauzy's funding plans, but that's more of an intermediate funding plan.

Joe Harary: Yeah, I get it. Let me address that first because, having, you know, cut my teeth on corporate transactions as a lawyer and, you know, also as a CEO of Research Frontiers, it's not that it hasn't gone forward, equity credit lines require a registration statement be filed with the SEC, and they go effective. Due to kind of the timing of the year, I believe that Gauzy would have to actually have their audited financials in place in order for them to file that registration statement. You know, I think, but I think it's also probably important, and I don't think I'm revealing anything that I shouldn't about Gauzy's funding plans, but that's more of an intermediate funding plan.

Cut my teeth on corporate transactions as a lawyer and, you know, also as a CEO of research Frontier, um, it it's not that it hasn't gone forward, but Equity Credit lines, require a registration statement and be filed with the SEC and they go effective. Um, due to kind of the timing of the year. Um, I believe that gallzy would have to actually have their audited financials in place, uh, in order for them to file that registration statement. So you know I think um but but I think it's also probably important and I don't think I'm I'm revealing anything that I shouldn't uh about gazi's funding plans, but that's more of an intermediate funding plan. They don't need that much money to execute on their business plan and move it forward and they have access to

Joseph M. Harary: They don't need that much money to execute on their business plan and move it forward, and they have access to, more immediate shorter-term capital. That's meant to take care of some of the debt that they have with a particular lender at a higher interest rate. You know, it's nice to reduce your interest expense. We don't have any debt, so we don't have any interest expense, but they're a different company, so they do. Anyway, I didn't mean to cut you off. I just wanted to address the question while it was fresh. I think you had another question or comment.

Joe Harary: They don't need that much money to execute on their business plan and move it forward, and they have access to, more immediate shorter-term capital. That's meant to take care of some of the debt that they have with a particular lender at a higher interest rate. You know, it's nice to reduce your interest expense. We don't have any debt, so we don't have any interest expense, but they're a different company, so they do. Anyway, I didn't mean to cut you off. I just wanted to address the question while it was fresh. I think you had another question or comment.

To, um, more immediate shorter term Capital that's meant, that's meant to take care of some of the debt that uh they have with um, with a particular lender at a higher interest rate. And, you know, it's nice to reduce your interest expense. We don't have any debt so we don't have any interest expense but um, there are different companies so they do. Um, anyway, I didn't mean to cut you off. I just wanted to address the question while it was fresh. Um, I think you had another question or comment. Yeah, 2 other things. Um, first of all,

The Stock's been under a dollar for, I would think a getting to a point where they're going to get another letter from the SEC about getting delisted be being under a dollar, but I also you're talking about Galaxy stock. Yes. You're talking about Galaxy stock? Yeah.

Correct.

Jeff Harvey: Yeah, 2 other things. First of all, the stock's been under $1 for, I would think it getting to a point where they're gonna get another letter from the SEC about getting delisted being under $1. I also...

Um, so I think that's kind of doing. The other thing is, I would think that they're not going to be able to pay you on time the way you'd like to be paid until they get their financial house in order. So, um, I would think that you're

Joseph M. Harary: You're talking about Gauzy stock.

Joe Harary: You're talking about Gauzy stock.

Jeff Harvey: Yes.

Joseph M. Harary: You're talking about Gauzy stock, yeah.

Joe Harary: You're talking about Gauzy stock, yeah.

Jeff Harvey: Correct.

Joseph M. Harary: Right.

Joe Harary: Right.

Jeff Harvey: I think that's coming through. The other thing is, I would think that they're not gonna be able to pay you on time the way you'd like to be paid until they get their financial house in order. I would think that your expectations of getting royalty revenue from them, again, are gonna be subdued near the near term. I also worry that -

Expectations and getting royalty revenue from them. Again are going to be subdued near the near term. And I also worry that, let me, let me, let me address that while it's fresh. Okay, I'm sorry. If you have, if it's related, I want to make sure I answer all your questions, Jeff.

So I would think also the potential customers would be reluctant to want to do business with gazi, given their financial distress.

Right. They're they're all excellent observations um Let Let Me Maybe

Joseph M. Harary: Let me address that while it's fresh. Okay, I'm sorry. If it's related. I want to make sure I answer all your questions, Jeff.

Joe Harary: Let me address that while it's fresh. Okay, I'm sorry. If it's related. I want to make sure I answer all your questions, Jeff.

Put some color on it because like I said, I've been in very close contact with, um, with gallzy throughout this process since, uh, uh, pretty much the day of the day after the filing. Um, the bankruptcy filing

Jeff Harvey: I would think also that potential customers would be reluctant to wanna do business with Gauzy given their financial distress.

So um, the first question is, are we going to get paid? And the answer is yes. Um,

Joseph M. Harary: Right. They're all excellent observations. Let me maybe put some color on it because, like I said, I've been in very close contact with Gauzy throughout this process since pretty much the day after the filing, the bankruptcy filing. The first question is, are we gonna get paid? The answer is yes. We, they have stressed to the French... Remember, we get our funding from two sources from Gauzy. Vision Systems, which is in France. Now, that's directly under the control of the French regulators. It's more of a monitor.

Joe Harary: Right. They're all excellent observations. Let me maybe put some color on it because, like I said, I've been in very close contact with Gauzy throughout this process since pretty much the day after the filing, the bankruptcy filing. The first question is, are we gonna get paid? The answer is yes. We, they have stressed to the French... Remember, we get our funding from two sources from Gauzy. Vision Systems, which is in France. Now, that's directly under the control of the French regulators. It's more of a monitor.

We they have stressed to the French. Remember, we? We get our our funding from 2 sources, from Galaxy Vision systems which is in France. Now that's directly under the control of the French regulators.

And it's more of a moderate, a, a monitor. So basically,

Joseph M. Harary: Just like internally, we, you know, we have a list of bills that we have to pay and, you know, my office manager presents it to me as CFO and CEO, and I approve it, and our audit committee looks at it, and it gets approved, and then we pay it. What you're doing is you're adding one level on top of that, but it's a bureaucratic level, which is, you know, a French, you know, bureaucratic official that also has to do that. It could slow down the process. Our invoices have been submitted. I'm told, no guarantee, but I'm told that it typically takes the regulators one to two weeks to approve something like that. You know, we're in the queue.

Joe Harary: Just like internally, we, you know, we have a list of bills that we have to pay and, you know, my office manager presents it to me as CFO and CEO, and I approve it, and our audit committee looks at it, and it gets approved, and then we pay it. What you're doing is you're adding one level on top of that, but it's a bureaucratic level, which is, you know, a French, you know, bureaucratic official that also has to do that. It could slow down the process. Our invoices have been submitted. I'm told, no guarantee, but I'm told that it typically takes the regulators one to two weeks to approve something like that. You know, we're in the queue.

Just like internally, we, you know, we have a list of bills that we have to pay and, you know, uh, my office manager presents it to me as CFO and CEO, and I approve it and our audit committee looks at it. And it gets approved and then we pay it. Um, what you're doing is you're adding 1 level on top of that, but it's a bureaucratic level, which is, uh, you know, a French, uh, you know, bureaucratic, uh, official that also has to do that, so it could slow down the process. Um,

Our invoices have been submitted. Uh, I'm told, uh, no guarantee but I'm told that it typically takes The Regulators 1 to 2 weeks to approve, something like that. Um, so, you know, we're in the queue.

The pre-filing, uh, with the with the filing date.

so anything that existed which is about half of our receivables from gallzy and uh, from Vision systems, rather

Joseph M. Harary: As far as post-filing things, that's a little smoother because really what they do is they treat pre-filing obligations a little bit differently than they do post-filings. November 13th was the pre-filing filing date. Anything that existed, which is about half of our receivables from Gauzy and from Vision Systems rather, is subject to the French regulator, and the other half is ongoing and in the queue for payment. As far as your other question, and it's an excellent observation, are they experiencing any customer concern about their finances? Jeff, that was first question I asked him too, is, you know, is anybody concerned about your viability or... You know? He said, No, Joe, they're not. We are... You know.

Joe Harary: As far as post-filing things, that's a little smoother because really what they do is they treat pre-filing obligations a little bit differently than they do post-filings. November 13th was the pre-filing filing date. Anything that existed, which is about half of our receivables from Gauzy and from Vision Systems rather, is subject to the French regulator, and the other half is ongoing and in the queue for payment. As far as your other question, and it's an excellent observation, are they experiencing any customer concern about their finances? Jeff, that was first question I asked him too, is, you know, is anybody concerned about your viability or... You know? He said, No, Joe, they're not. We are... You know.

Uh is subject to the French regulator and the other half is ongoing and in the queue for payment um as far as your other question and it's an excellent observation, are they experiencing any um customer concern about their finances.

and,

Jeff, that was

first question, I asked him to

Is, you know, is anybody concerned about your viability? Or can, you know and said, no, Joe, they're not. We are, you know, I mean, I'm more focused on SPD film and Emulsion obviously, but, um, companywide. Um, I think, uh, when you consider that the flow of Revenue and product sales is coming out of France, and it's coming out of everywhere else in the world. Um, the customers are continuing to buy and these are some of these are very long-term, lucrative contracts that galaxy has so, um,

Joseph M. Harary: I mean, I'm more focused on SPD film and emulsion obviously, but company-wide, I think when you consider that the flow of revenue and product sales is coming out of France and it's coming out of everywhere else in the world, the customers are continuing to buy. Some of these are very long-term, lucrative contracts that Gauzy has. you know, because they're long-term, the customer has to buy from them, and they have to supply. The challenge is, do you have liquidity to, you know, to supply what's a very large backlog of orders? you know, part of this, you know, I mean, I'll tell you two things. Number one is, the backlog Gauzy was on track to meet their projections for 2025 until the labor unions initiated this reorganization or rehabilitation proceeding.

Joe Harary: I mean, I'm more focused on SPD film and emulsion obviously, but company-wide, I think when you consider that the flow of revenue and product sales is coming out of France and it's coming out of everywhere else in the world, the customers are continuing to buy. Some of these are very long-term, lucrative contracts that Gauzy has. you know, because they're long-term, the customer has to buy from them, and they have to supply. The challenge is, do you have liquidity to, you know, to supply what's a very large backlog of orders? you know, part of this, you know, I mean, I'll tell you two things. Number one is, the backlog Gauzy was on track to meet their projections for 2025 until the labor unions initiated this reorganization or rehabilitation proceeding.

You know, so, um, because they're long term, the customer has to buy from them and they have to supply and the challenges, do you have the liquidity to, you know, to supply, what's a very large backlog of orders? And, you know, part of this

You know.

um I I mean I'll tell you 2 things number 1 is um

The backlog. The Galaxy was on track to meet their projections for 2025 until the labor unions initiated this reorganization or Rehabilitation preceding. Um then everything stopped because all of a sudden

You know, you have to go through the monitor process to get paid if you were a supplier and it's not just us, it's, you know, people that are supplying glass and plastic film and you know, cameras and everything else that, you know, they use in their systems.

Um,

So, it was very important to get that restarted quickly.

Joseph M. Harary: Then everything stopped because all of a sudden, you know, you had to go through the monitor process to get paid if you were a supplier. It's not just us, it's, you know, people that are supplying glass and plastic film and, you know, cameras and everything else that, you know, they use in their systems. It was very important to get that restarted quickly, especially since the backlog was tens of millions of dollars of product sales that were profitable. You know, Gauzy, I think, did what they needed to do, which is, they reallocated some capital and some liquidity from other areas of their company to get that flowing quickly because those had longer lead times. Of course, you have the steady state stuff for Research Frontiers and, you know, our other licensees with the SPD emulsion and film.

Joe Harary: Then everything stopped because all of a sudden, you know, you had to go through the monitor process to get paid if you were a supplier. It's not just us, it's, you know, people that are supplying glass and plastic film and, you know, cameras and everything else that, you know, they use in their systems. It was very important to get that restarted quickly, especially since the backlog was tens of millions of dollars of product sales that were profitable. You know, Gauzy, I think, did what they needed to do, which is, they reallocated some capital and some liquidity from other areas of their company to get that flowing quickly because those had longer lead times. Of course, you have the steady state stuff for Research Frontiers and, you know, our other licensees with the SPD emulsion and film.

Especially since the backlog was tens of millions of dollars of, of product sales that were profitable. So, you know, gallzy I think did what they needed to do, which is, they reallocated some capital, and some liquidity from other areas of their company to get that flowing quickly, because those had longer lead times. And, of course, you have the steady state stuff for research Frontiers and, you know, our other licenses with the SPD Emulsion and film. And you know, I I'll tell you, you know, yesterday, I was speaking to the CTO of gallzy,

and,

They're producing Emulsion. It's ready to go. You know. Can they get it over to Germany? Um,

Joseph M. Harary: You know, I'll tell you know, yesterday I was speaking to the CTO of Gauzy, and they're producing emulsion. It's ready to go, you know. Can they get it over to Germany? Probably after Sunday it'll be a lot easier when they open up the airspace. Prior to the war, they were getting it too. It's not, you know. It's a little bit of a blip. Obviously, you know, you want as few blips as possible. You know, at some point, I imagine, given what Israel has gone through with two wars in May when I was there on seven different fronts. Now this war with Iran.

Joe Harary: You know, I'll tell you know, yesterday I was speaking to the CTO of Gauzy, and they're producing emulsion. It's ready to go, you know. Can they get it over to Germany? Probably after Sunday it'll be a lot easier when they open up the airspace. Prior to the war, they were getting it too. It's not, you know. It's a little bit of a blip. Obviously, you know, you want as few blips as possible. You know, at some point, I imagine, given what Israel has gone through with two wars in May when I was there on seven different fronts. Now this war with Iran.

Probably after Sunday, it'll be a lot easier when they open up the airspace. But um, prior to the war, they were getting it too. So it's not, you know, it's a, it's a little bit of a blip. Um, but obviously um, you know, uh, you want a few blips as possible, you know, at some point I imagine um, given what Israel has gone through with uh, 2 Warsaw.

They may very well move a lot more of their Emulsion production over to Germany. So that and their people so that you have less concern about, you know, airspace is opening and closing, but I think we're on the tail end of of that, kind of disruption. So,

You know.

I think we're good.

All right. Thank you.

You're welcome. Thanks for your questions.

And our next question comes from Michael Forrester, and investor.

Joseph M. Harary: They may very well move a lot more of their emulsion production over to Germany and their people, so that you have less concern about, you know, airspaces opening and closing. I think we're on the tail end of that kind of disruption. You know, I think we're good.

Joe Harary: They may very well move a lot more of their emulsion production over to Germany and their people, so that you have less concern about, you know, airspaces opening and closing. I think we're on the tail end of that kind of disruption. You know, I think we're good.

Good afternoon. Um, my question.

um, arises out of, uh, the third quarter report of research Frontiers

And um, in light of everything, you've said about how positive our whole situation is.

Michael Forster: All right. Thank you.

Jeff Harvey: All right. Thank you.

Joseph M. Harary: You're welcome. Thanks for your questions.

Joe Harary: You're welcome. Thanks for your questions.

Operator: Our next question comes from Michael Forster, an investor.

Michael Forster: Good afternoon. My question arises out of the Q3 report of Research Frontiers and, in light of everything you've said about how positive our whole situation is, it leads me to wonder why do we have a capitalization in January at basically $1 a share plus opportunities to buy more stock at $1.10 a share to a selective group of investors, including family members of a director, when at the end of the Q3 report, it said, quote, "We currently expect to have sufficient working capital for more than the next 5 years of operations." End of quote?

It leads me to wonder. Why do we have a capitalization in January at basically 1 dollar, a share plus opportunities to buy more stock at a dollar? Ten a share.

A selective group of investors including family members of a director.

when in the at the end of the third quarter report, it said,

Quote, we currently expect to have sufficient working capital for more than the next 5 years, about operations.

and a quote,

So, how do you justify that?

Bringing that up and I appreciate the question. So uh as I mentioned earlier, there was a qualifier on that which is assuming we get paid what we're owed and assume there's no more Supply disruptions because we had 1 in the second quarter with AGP as you know and

Joseph M. Harary: Yeah.

Joe Harary: Yeah.

Michael Forster: How do you justify that?

Also, for strategic reasons, and what I said earlier in the call, I'm not sure if you were on, it is all 3 of those factors were present here. Now,

Joseph M. Harary: Sure. Michael, thank you for bringing that up, and I appreciate the question. As I mentioned earlier, there was a qualifier on that, which is assuming we get paid what we're owed and assume there's no more supply disruptions, because we had one in Q2 with AGP, as you know, and also for strategic reasons. What I said earlier in the call, I'm not sure if you were on it, is all three of those factors were present here. You asked about directors participating or their family members participating. That was basically the terms were set, not with the directors, obviously. They were set with the large investors, the anchor investors that were much larger investors in this offering.

Joe Harary: Sure. Michael, thank you for bringing that up, and I appreciate the question. As I mentioned earlier, there was a qualifier on that, which is assuming we get paid what we're owed and assume there's no more supply disruptions, because we had one in Q2 with AGP, as you know, and also for strategic reasons. What I said earlier in the call, I'm not sure if you were on it, is all three of those factors were present here. You asked about directors participating or their family members participating. That was basically the terms were set, not with the directors, obviously. They were set with the large investors, the anchor investors that were much larger investors in this offering.

Um, you asked, uh, about directors participating or their family members participating. Um,

Uh, that was basically the terms were set. Not with the directors, obviously, they were set with

the large investors, the anchor investors that were much larger investors in this offering and then, um, we were asked hey why don't you have an, you know, director of participation in this and I said, guys, we already circulated our 10K internally, uh, no company in the world would allow a director to buy stock. Once that happens, we're closing on this deal. If there's people, you know, that, um, want to participate on these terms, which have already been set.

Joseph M. Harary: Then, we were asked, Hey, why don't you have an, you know, director participation in this? I said, Guys, we already circulated our 10-K internally. No company in the world would allow a director to buy stock once that happens. We're closing on this deal. If there's people you know that, wanna participate on these terms, which have already been set, they're welcome to come into this. I'll say this to any shareholder out there, where did these friends and family investors come from? A lot of them had amassed large positions in Research Frontiers and wanted more. Because they have large positions, they would call me throughout the year, throughout the years. I got to know them.

Joe Harary: Then, we were asked, Hey, why don't you have an, you know, director participation in this? I said, Guys, we already circulated our 10-K internally. No company in the world would allow a director to buy stock once that happens. We're closing on this deal. If there's people you know that, wanna participate on these terms, which have already been set, they're welcome to come into this. I'll say this to any shareholder out there, where did these friends and family investors come from? A lot of them had amassed large positions in Research Frontiers and wanted more. Because they have large positions, they would call me throughout the year, throughout the years. I got to know them.

They're welcome to come into this and I'll say this to any any shareholder out there. Um where do these friends and family? Investors come from

Uh, a lot of them had had amassed large positions in research, Frontiers and wanted more.

And because they have large positions, they would call me.

Throughout the year, throughout the years? I got to know them. Um, most of the people in this uh round had an invested in the last round which was in September of 2022.

Joseph M. Harary: Most of the people in this round hadn't invested in the last round, which was in September 2022. I knew them there. They had invested in the prior rounds and the prior rounds and the prior rounds. These are long-term shareholders. Maybe just to kind of put a little color on this, if anybody out there is interested in participating in one of these things, assuming we have to do one again, and maybe it's a couple of years before we do it, or maybe it's sooner if there's an, you know, an acquisition we wanna make or a marketing program we wanna launch or something like that, you know, let me know when we're talking.

Joe Harary: Most of the people in this round hadn't invested in the last round, which was in September 2022. I knew them there. They had invested in the prior rounds and the prior rounds and the prior rounds. These are long-term shareholders. Maybe just to kind of put a little color on this, if anybody out there is interested in participating in one of these things, assuming we have to do one again, and maybe it's a couple of years before we do it, or maybe it's sooner if there's an, you know, an acquisition we wanna make or a marketing program we wanna launch or something like that, you know, let me know when we're talking.

Um, so I knew them there and they had invested in the prior rounds and the prior rounds and the prior rounds. So these are long-term shareholders, and maybe just to kind of put a little color on this. Um, if anybody out there is interested in participating in 1 of these things, assuming we have to do 1 again, and maybe it's a couple years before we do it, um, or maybe, or maybe it's sooner if it isn't, you know, an acquisition, we want to make or a marketing program we want to launch or something like that. Um, you know, let me know when we're talking, I'm happy to put your name on a list and we could always figure out if it makes sense for you but um, but um, it's not meant to exclude anyone. But these are people that we know and trust and I'll just to put a little more color on it.

In September 2022, the stock that everyone got had a restrictive Legend, meaning, you cannot sell it in the open market as long as this Legend is on the stock certificate.

Joseph M. Harary: I'm happy to put your name on a list, and we could always figure out if it makes sense for you. It's not meant to exclude anyone, but these are people that we know and trust. Just to put a little more color on it, in September 2022, the stock that everyone got had a restrictive legend, meaning you cannot sell it in the open market as long as this legend is on the stock certificate. Even though they could have taken that certificate legend off 6 months after the September 2022 offering, nobody in that offering did. These are long-term holders. You know, we appreciate that because that's how you get rewarded with a company like this, which has relatively long development cycles with customers, you know, in automotive and in aircraft.

Joe Harary: I'm happy to put your name on a list, and we could always figure out if it makes sense for you. It's not meant to exclude anyone, but these are people that we know and trust. Just to put a little more color on it, in September 2022, the stock that everyone got had a restrictive legend, meaning you cannot sell it in the open market as long as this legend is on the stock certificate. Even though they could have taken that certificate legend off 6 months after the September 2022 offering, nobody in that offering did. These are long-term holders. You know, we appreciate that because that's how you get rewarded with a company like this, which has relatively long development cycles with customers, you know, in automotive and in aircraft.

And even though they could have taken that certificate of Legend off 6 months after the September 22, 22 offering nobody in that offering did.

So these are long-term holders and you know we we appreciate that because that's how you get rewarded with a company like this which has relatively long development Cycles with customers. You know an automotive in an aircraft. I think everyone that works in that industry kind of knows about the development Cycles. But that's why we did it. And that's why we did it with the people we did. And if anyone's interested, love to hear from you, I can't promise you we're going to do this again, but if we do and uh things make sense, we certainly we can send her you.

well, it's not just with respect to their being recapitalization, although the

Joseph M. Harary: I think everyone that works in that industry kinda knows about the development cycles. That's why we did it, and that's why we did it with the people we did. If anyone's interested, love to hear from you. I can't promise you we're gonna do this again, but if we do and things make sense, we certainly would consider you.

Joe Harary: I think everyone that works in that industry kinda knows about the development cycles. That's why we did it, and that's why we did it with the people we did. If anyone's interested, love to hear from you. I can't promise you we're gonna do this again, but if we do and things make sense, we certainly would consider you.

Uh the third quarter report does mention an expectation that there wouldn't this wouldn't happen for 5 years.

but right, and if you listen to the conference call, yeah, if you're listening to the topic call,

Okay, go ahead. I'm sorry I didn't mean to interrupt you.

Well, it's the timing.

I mean.

Michael Forster: It's not just with respect to there being recapitalization, although the Q3 report does mention an expectation that this wouldn't happen for five years.

Situation.

That is the Press so to speak, present it to be.

Joseph M. Harary: Right. If you listen to the conference call. Yeah.

Joe Harary: Right. If you listen to the conference call. Yeah.

Michael Forster: Hang on a second.

Joseph M. Harary: If you listen to the conference call... Okay, go ahead. I'm sorry. I didn't mean to interrupt you.

Joe Harary: If you listen to the conference call... Okay, go ahead. I'm sorry. I didn't mean to interrupt you.

And, uh, I'd love to believe that because I have stock and galaxies is all as well, but they just filed the bankruptcy or thrown into bankruptcy in mid November, and here. It is January Less Than 3 months later.

Michael Forster: Yeah. Well, it's the timing. I mean, you're giving us all this glowing information about how Gauzy's situation isn't as bad as the press, so to speak, present it to be. I'd love to believe that because I have stock in Gauzy as all as well. They just filed the bankruptcy or were thrown into bankruptcy in mid-November, and here it is January, less than three months later, that with Research Frontiers' stock plummeting just as Gauzy is plummeting. The offer is at $1 a share. When you talk about 22, I think it was like $2.30 a share. With better, you know, warrant rewards for those who reward to the company in terms of the total income. I question the timing. Why not wait at least until May?

That was research Frontier stock plummeting just as gaussian is plummeting the offers that 1 dollar a share. When you talk about 22 I think it was like 2 dollars and 30 cents a share and what better you know warrant rewards for those who reward to the company in terms of the total income, I I questioned the timing. Why not? Wait, at least until May we we had at least 12 months before.

Uh or according to the latest quarterly report that we have cash and cash equivalents to take us at least 12 months.

To people who may not need that gift.

I'm not giving a gift to anyone. This is an investment, but I will say this

Michael Forster: We had at least 12 months before, according to the latest quarterly report, that we have cash and cash equivalents to take us at least 12 months.

listen to what I said, please if um, if we were paid, what we were owed

And we didn't have any Supply disruptions.

Joseph M. Harary: Right. Well.

Joe Harary: Right. Well.

Michael Forster: Why is this timing like you're giving a gift to people who may not need that gift?

2 things that didn't happen. By the way we did that we weren't paid. What we were owed and we did have supplies disruptions.

Okay.

and,

Joseph M. Harary: I'm not giving a gift to anyone. I'm not giving a gift to anyone. This is an investment. I will say this. Listen to what I said, please. If, if we were paid what we were owed, and we didn't have any supply disruptions, two things that didn't happen, by the way, we weren't paid what we were owed, and we did have supply disruptions, okay? If we had a strategic reason, we would do another one. Here we are in March. We have something sitting at a French regulator's desk hoping that it gets paid today versus tomorrow. I don't think anybody on this call would want Research Frontiers not have the liquidity to execute on our business plan.

Joe Harary: I'm not giving a gift to anyone. I'm not giving a gift to anyone. This is an investment. I will say this. Listen to what I said, please. If, if we were paid what we were owed, and we didn't have any supply disruptions, two things that didn't happen, by the way, we weren't paid what we were owed, and we did have supply disruptions, okay? If we had a strategic reason, we would do another one. Here we are in March. We have something sitting at a French regulator's desk hoping that it gets paid today versus tomorrow. I don't think anybody on this call would want Research Frontiers not have the liquidity to execute on our business plan.

If we didn't have a strategic, if we had a strategic reason, we would do another 1.

So here we are in March.

We have something sitting at a French Regulators desk hoping that it gets paid today versus tomorrow.

And I don't think anybody on this call.

Would want research Frontiers to have not have the liquidity to execute on our business plan.

So, I'm thinking about the long-term shareholders.

And the execution of the business plan and capitalizing on the successes we've had in multiple markets and something, no 1 else has done. And I'm not going to sit there and roll the dice with your money or my money.

Joseph M. Harary: I'm thinking about the long-term shareholders and the execution of the business plan and capitalizing on the successes we've had in multiple markets, and something no one else has done. I'm not gonna sit there and roll the dice with your money or my money and hope that I get paid on time or hope that there's no more supply disruptions. You wouldn't want a CEO of your company being that reckless.

And hope that I get paid on time or hope that there's no more Supply disruptions you. You you wouldn't want to CEO of your company.

Joe Harary: I'm thinking about the long-term shareholders and the execution of the business plan and capitalizing on the successes we've had in multiple markets, and something no one else has done. I'm not gonna sit there and roll the dice with your money or my money and hope that I get paid on time or hope that there's no more supply disruptions. You wouldn't want a CEO of your company being that reckless.

Being that Reckless.

1 last question. Then for you, in light of what you're predicting, when you get the money and so on.

Are you going to put out a press release of how things are going? So that we might know?

We typically don't put out. Press releases. Yeah. We we typically don't put out press releases unless there's a specific event like the launch of the celestic was a specific event.

Michael Forster: One last question then for you.

Uh, or a major non-financial development.

Joseph M. Harary: Sure.

Joe Harary: Sure.

Michael Forster: In light of what you're predicting, when you get the money and so on, are you gonna put out a press release of how things are going so that we might know?

Joseph M. Harary: We typically don't put out press releases unless there's a specific event, like the launch of the Celestiq was a specific event, or a major non-financial development. The financial developments are on a cadence of being announced quarterly. You know, our next quarterly conference call is in the beginning of May. It's not that far off. The way that the SEC filing schedule falls, early May is when we typically have our Q1 call. You might see it then.

Joe Harary: We typically don't put out press releases unless there's a specific event, like the launch of the Celestiq was a specific event, or a major non-financial development. The financial developments are on a cadence of being announced quarterly. You know, our next quarterly conference call is in the beginning of May. It's not that far off. The way that the SEC filing schedule falls, early May is when we typically have our Q1 call. You might see it then.

But the financial developments are on a Cadence of being announced quarterly and you know, our next quarterly conference call is in the beginning of May, it's not that far off the way that the SEC filing schedule Falls. Um early May is when we typically have our first quarter call you might see it then.

So, by then we should know whether or not research, Frontiers got its licensing fees, uh, from the bankruptcy monitor, right?

Yep. Yep I think you'll see, you know, a change in our receivables if when that happens. And um and in our cash position

And that's not too far off. So, you know, um,

Michael Forster: By then we should know whether or not Research Frontiers got its licensing fees.

You know Financial results we don't result, we don't announce in between quarters, you know but it's close enough where you'll know about it soon enough I think.

Joseph M. Harary: Yep.

Joe Harary: Yep.

Michael Forster: From the bankruptcy monitor, right?

That's it. Thank you.

Joseph M. Harary: Yep. Yep. I think you'll see, you know, a change in our receivables if when that happens and in our cash position. That's not too far off. You know, you know, financial results, we don't announce in between quarters, you know. It's close enough where you'll know about it soon enough, I think.

Joe Harary: Yep. Yep. I think you'll see, you know, a change in our receivables if when that happens and in our cash position. That's not too far off. You know, you know, financial results, we don't announce in between quarters, you know. It's close enough where you'll know about it soon enough, I think.

Thanks a lot, Michael.

And our next question comes from John Nelson, an investor

Hi, Joe, uh just a couple of quick questions. Um,

the um,

you mentioned 4 projects with the

Michael Forster: That's it. Thank you.

Joseph M. Harary: Thanks a lot, Michael.

Joe Harary: Thanks a lot, Michael.

Retrofit, uh window. Um, do you have can you give us any idea as to how soon any of those could start?

Operator: Our next question comes from John Nelson, an investor.

John Nelson: Hi, Joe. Just a couple of quick questions. You mentioned four projects with the retrofit window. Do you have, can you give us any idea as to how soon any of those could start?

I think they, I mean they've already started. I mentioned earlier that we're working on some peripherals that go in conjunction with the retrofit window. The retrofit window is a very solid developed product. But now think about any kind of smart window, you're going to want to have um, ways of controlling it in a smart manner, that hopefully will be just as easy to install, uh, and integrate as the glasses. So, um, you know, that's 1 of the things that we're actually,

Joseph M. Harary: I think, I mean, they've already started. I mentioned earlier that we're working on some peripherals that go in conjunction with the retrofit window. The retrofit window is a very solid developed product. Now think about any kind of smart window. You're gonna wanna have ways of controlling it in a smart manner that hopefully will be just as easy to install and integrate as the glasses. You know, that's one of the things that we're actively working on together. That's, you know, LTI, Gauzy, Research Frontiers, and the customers, you know, to give them a choice. That's basically, you know, what it is. We've selected different types of projects because I view these not only as revenue sources. I'm not worried about revenue on this.

Joe Harary: I think, I mean, they've already started. I mentioned earlier that we're working on some peripherals that go in conjunction with the retrofit window. The retrofit window is a very solid developed product. Now think about any kind of smart window. You're gonna wanna have ways of controlling it in a smart manner that hopefully will be just as easy to install and integrate as the glasses. You know, that's one of the things that we're actively working on together. That's, you know, LTI, Gauzy, Research Frontiers, and the customers, you know, to give them a choice. That's basically, you know, what it is. We've selected different types of projects because I view these not only as revenue sources. I'm not worried about revenue on this.

Li working on together. That's, you know, LTI and gallzy and research Frontiers and the customers, um, you know, to give them a choice. Um, so that's basically, you know what it is and we've selected

Different.

types of projects, because

I view these not only as Revenue sources, I'm not worried about revenue on this Revenue, you know, uh, when we decide that we're going full force with this and we have these peripherals all done, you know, AIT has the capacity and the customer base to do this quite quickly without, you know,

buying a Super Bowl ad or anything like that. Um,

but um, but um, but I but I also want to have white papers so that

Joseph M. Harary: Revenue, you know, when we decide that we're going full force with this and we have these peripherals all done, you know, AIT has the capacity and the customer base to do this quite quickly without, you know, buying a Super Bowl ad or anything like that. I also wanna have white papers so that the architects could get their ideas as to, Hey, why would I use this? You know? In some cases, it's obvious. I have a building, you know, facility management building envelope issue that I got to deal with. I need glass on the outer skin of the building. What about things like, you know, one of the residents has, I think, 30 or 40 interior windows that, you know, to take out the glass and put this in, it's a residential project?

Joe Harary: Revenue, you know, when we decide that we're going full force with this and we have these peripherals all done, you know, AIT has the capacity and the customer base to do this quite quickly without, you know, buying a Super Bowl ad or anything like that. I also wanna have white papers so that the architects could get their ideas as to, Hey, why would I use this? You know? In some cases, it's obvious. I have a building, you know, facility management building envelope issue that I got to deal with. I need glass on the outer skin of the building. What about things like, you know, one of the residents has, I think, 30 or 40 interior windows that, you know, to take out the glass and put this in, it's a residential project?

Ideas as to. Hey, why would I use this? You know, in some cases it's obvious. I have a

Building, you know facility management building envelope issue that I got to deal with. I need glass on the outer skin of the building. But what about things like you know, 1 of the residents has, I think 30 or 40 interior windows that you know to take out the glass and put this in its a residential project, you know, would be you know very disruptive to the tenant and very expensive whereas we could just pop it in and be done with it and you know so it's a matter of creating proof points there.

Yeah. Successful application will um uh create

Joseph M. Harary: You know, it would be, you know, very disruptive to the tenant and very expensive, whereas we could just pop it in and be done with it. It's a matter of creating proof points there.

Joe Harary: You know, it would be, you know, very disruptive to the tenant and very expensive, whereas we could just pop it in and be done with it. It's a matter of creating proof points there.

John Nelson: Yeah. Successful application will create awareness, more awareness.

Joseph M. Harary: Right. The good news, John, I think the good news, John, is that in the architectural market, we have a lot more control over that good news getting out, you know, more so than an automotive or aircraft where, you know, you're somewhat beholden to the OEM. You know, here the architects and the homeowners like to brag about what's in their home unless they're Russian oligarchs or something that are trying to lay low. We've had that happen, too.

Joe Harary: Right. The good news, John, I think the good news, John, is that in the architectural market, we have a lot more control over that good news getting out, you know, more so than an automotive or aircraft where, you know, you're somewhat beholden to the OEM. You know, here the architects and the homeowners like to brag about what's in their home unless they're Russian oligarchs or something that are trying to lay low. We've had that happen, too.

Awareness more awareness. Um, right and the good news John. I think I think the good news John, is that in the architectural Market. We have a lot more control over that. Good news getting out, you know, more so than an automotive or aircraft where you know, you're somewhat beholden to the OEM uh, you know, here, The Architects and the homeowners like to brag about what's in their home unless they're Russian oligarchs or something that are trying to lay low. And we've had that happen too, okay? Okay. Um and second question is uh um as Ferrari expressed any interest in expanding the uh SPD roofs to other models.

they have, they have I can't talk about

the specifics on that. But you know, they make a lot of money on the, on the option and they thrilled with the performance. I mean, it it it has the performance of a Ferrari. So what what what wouldn't they like about it? You know.

John Nelson: Okay. Second question is, has Ferrari expressed any interest in expanding the SPD roofs to other models?

Yeah. Okay good. That's it for me. Thank you.

Thanks John, appreciate questions.

Joseph M. Harary: They have. I can't talk about the specifics on that, but, you know, they make a lot of money on the option, and they're thrilled with the performance. I mean, it has the performance of a Ferrari, so why, what wouldn't they like about it? You know?

I think we have 1 more question in the queue. Um,

Joe Harary: They have. I can't talk about the specifics on that, but, you know, they make a lot of money on the option, and they're thrilled with the performance. I mean, it has the performance of a Ferrari, so why, what wouldn't they like about it? You know?

yeah, our next question comes from art, Grady and investor

Good afternoon, gentlemen.

John Nelson: Yep. Okay. Good. That's it for me. Thank you.

Joseph M. Harary: Thanks, John. Appreciate your questions. I think we have one more question in the queue.

Joe Harary: Thanks, John. Appreciate your questions. I think we have one more question in the queue.

Basically, I'm interested in learning a lot more about what is happening with the GL project. The Korean company that concentrates on building kiosks

Operator: Yeah. Our next question comes from Art Grady, an investor.

you know, I'm not going to talk about a specific project and I don't think

Art Grady: Good afternoon, gentlemen. Basically, I'm interested in learning a lot more about what is happening with the Glatic project, the Korean company that concentrates on building kiosks.

Joseph M. Harary: You know, I'm not gonna talk about a specific project, I don't think, you know, given that this has been an hour phone call, we should probably spend a lot of time on specifics. Art, I know you tried to reach me earlier in the week, I typically don't answer shareholder calls, right before SEC filing because I don't wanna get any shareholders in trouble. Feel free to call me tomorrow, and we could talk about that. I know you're a resourceful person, you might have some thoughts on that. I'd like to now maybe make some closing remarks.

Joe Harary: You know, I'm not gonna talk about a specific project, I don't think, you know, given that this has been an hour phone call, we should probably spend a lot of time on specifics. Art, I know you tried to reach me earlier in the week, I typically don't answer shareholder calls, right before SEC filing because I don't wanna get any shareholders in trouble. Feel free to call me tomorrow, and we could talk about that. I know you're a resourceful person, you might have some thoughts on that. I'd like to now maybe make some closing remarks.

You know, given that this has been an hour phone call. We should probably spend a lot of time on specifics, but art, I know you're trying to reach me earlier in the week and I typically don't answer shareholder calls, um, right before SEC filing because I don't want to get any shareholders in trouble, but um, but feel free to call me tomorrow and we could talk about that. And if you have, I know you're a resourceful person. You might have, uh, some thoughts on that. Um, I'd like

I'd like to now maybe make some closing remarks. Um,

when you look at the fact that Ferrari and McLaren,

Have their production.

Joseph M. Harary: When you look at the fact that Ferrari and McLaren have their production continuity going on and Cadillac entering the market and Mercedes integrating SPD broadly in a concept that covered 75% of the car, not just the sunroof, and the expanding OEM quotations, high volume quotations that helped us get the cost down significantly, and black SPD advancing and the architectural retrofit launching and the strengthening of the balance sheet and new investments by our licensees in SPD equipment, and in one case, a direct investment in Research Frontiers through the friends and family offering, you don't see a static company. You see a foundation that's been built, and a technology platform that's being embedded in many of the different places. It's being embedded across geographies worldwide. It's being embedded across vehicle segments. It's being embedded across applications.

Joe Harary: When you look at the fact that Ferrari and McLaren have their production continuity going on and Cadillac entering the market and Mercedes integrating SPD broadly in a concept that covered 75% of the car, not just the sunroof, and the expanding OEM quotations, high volume quotations that helped us get the cost down significantly, and black SPD advancing and the architectural retrofit launching and the strengthening of the balance sheet and new investments by our licensees in SPD equipment, and in one case, a direct investment in Research Frontiers through the friends and family offering, you don't see a static company. You see a foundation that's been built, and a technology platform that's being embedded in many of the different places. It's being embedded across geographies worldwide. It's being embedded across vehicle segments. It's being embedded across applications.

Continuity going on in Cadillac entering the market. In Mercedes integrating SPD broadly in a concept that covered 75% of the car not just the sunroof and the expanding OEM quotations high volume quotations. That helped us get the cost down, significantly and black, SPD advancing, and the architectural retrofit launching and the strengthening of the balance sheet, and new Investments, by our licenses and SPD, um, equipment. Um, and in 1 case, a direct investment in research, Frontier is through the friends and family offering. You don't see a static company, you see a foundation that's been built and a technology platform that's being in many of the different places. It's being embedded across geographies worldwide, it's being a better cross vehicle segments. It's being a bended embedded, across applications.

You know, and the major Investments have already been made and the infrastructure has been built.

Um, and we've always had the best performance of any Smart Glass Technology and SPD continues to deliver industry-leading, performance and cost and color are being addressed and diversification is increased.

Joseph M. Harary: You know, the major investments have already been made, and the infrastructure's been built. We've always had the best performance of any smart glass technology. SPD continues to deliver industry-leading performance. Cost and color are being addressed, and diversification has increased. You know, the breadth of engagement today is stronger than in any point in our history. When you connect these developments together, you see a business that is no longer dependent on a single vehicle or a single OEM or a single customer in general or a single market. We believe all of this positions Research Frontiers for durable, diversified growth as these programs mature and enter the marketplace. With that, I wanna thank everyone for their participation in the conference call today. If we haven't answered your questions, feel free to email me or call.

Joe Harary: You know, the major investments have already been made, and the infrastructure's been built. We've always had the best performance of any smart glass technology. SPD continues to deliver industry-leading performance. Cost and color are being addressed, and diversification has increased. You know, the breadth of engagement today is stronger than in any point in our history. When you connect these developments together, you see a business that is no longer dependent on a single vehicle or a single OEM or a single customer in general or a single market. We believe all of this positions Research Frontiers for durable, diversified growth as these programs mature and enter the marketplace. With that, I wanna thank everyone for their participation in the conference call today. If we haven't answered your questions, feel free to email me or call.

You know, the breadth of Engagement today is stronger than in any point in our history, and when you connect these developments together, you see, a business that is no longer dependent on a single vehicle, or a single OEM, or a single customer in general, or a single Market.

Everyone for their participation in the conference call today, if we haven't answered your questions, feel free to email me or call. Um, we try to do the best we can to respond quickly.

And uh, I look forward to sharing more updates with everyone.

This concludes today's conference call.

Thank you for attending.

Joseph M. Harary: We try to do the best we can to respond quickly. I look forward to sharing more updates with everyone.

Joe Harary: We try to do the best we can to respond quickly. I look forward to sharing more updates with everyone.

Operator: This concludes today's conference call. Thank you for attending.

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