[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Research Frontiers Incorporated as of June 30, 2025, show a decrease in total assets and shareholders' equity compared to December 31, 2024, with a year-over-year decline in fee income and a significant increase in net loss, primarily driven by lower royalties and higher operating expenses, leading to a reduction in cash and cash equivalents [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets decreased to $3.17 million from $4.04 million at the end of 2024, primarily due to a reduction in cash and cash equivalents, while total liabilities saw a slight decrease and total shareholders' equity declined from $2.60 million to $1.80 million, largely due to the accumulated deficit Condensed Consolidated Balance Sheet Highlights (in USD) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,274,276 | $1,994,186 | | Total current assets | $1,971,930 | $2,745,889 | | Total assets | $3,172,806 | $4,039,647 | | **Liabilities & Equity** | | | | Total current liabilities | $280,235 | $269,027 | | Total liabilities | $1,374,780 | $1,435,312 | | Total shareholders' equity | $1,798,026 | $2,604,335 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, fee income dropped sharply to $129,904 from $489,594 in Q2 2024, leading to a significantly wider operating loss of $815,104, with the net loss for the quarter at $803,826, or $0.02 per share, and the six-month results showing a similar trend of decreasing fee income and nearly doubling net loss year-over-year Statement of Operations Summary (in USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Fee income | $129,904 | $489,594 | $689,680 | $802,972 | | Operating loss | $(815,104) | $(116,134) | $(1,054,681) | $(585,884) | | Net loss | $(803,826) | $(94,022) | $(981,513) | $(536,626) | | Basic and diluted net loss per share | $(0.02) | $(0.00) | $(0.03) | $(0.02) | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity decreased from $2.60 million at the beginning of 2025 to $1.80 million by June 30, 2025, primarily driven by a net loss of $981,513 for the six-month period, partially offset by $175,204 in share-based compensation - For the six months ended June 30, 2025, total shareholders' equity decreased by approximately **$806,000**, mainly due to the net loss of **$981,513**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $719,701, an increase from $577,972 in the same period of 2024, leading to the company's cash and cash equivalents balance falling from $1.99 million at the start of the year to $1.27 million at the end of the period Cash Flow Summary (in USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(719,701) | $(577,972) | | Net decrease in cash and cash equivalents | $(719,910) | $(569,456) | | Cash and cash equivalents at end of period | $1,274,276 | $1,906,502 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business as a single segment focused on licensing its SPD-Smart light-control technology, highlighting significant reliance on the automotive market, revenue concentration among a few licensees, and the post-quarter bankruptcy filing of a major European licensee that accounted for 33% of revenue in the first half of 2025, alongside the company's receipt of an Employee Retention Credit under the CARES Act - The company operates in a single business segment, licensing its patented SPD-Smart light-control technology to over 40 licensees serving aerospace, architectural, automotive, marine, and display markets[21](index=21&type=chunk)[24](index=24&type=chunk) - For the first six months of 2025, **99%** of the company's revenue was generated from sources outside the United States, a significant increase from **61%** in the same period of 2024[24](index=24&type=chunk) - Subsequent to June 30, 2025, a significant European licensee, which accounted for **33%** of revenue in the first half of 2025, filed for bankruptcy, with the company having no outstanding accounts receivable from this licensee[46](index=46&type=chunk) - The company recorded **$175,204** in share-based compensation during the six months ended June 30, 2025, related to stock options granted in June 2025[52](index=52&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 73% decrease in Q2 2025 fee income primarily to lower royalties from the automotive market and the disruption caused by a major European licensee's bankruptcy, with operating expenses rising due to non-cash stock option compensation and credit loss expenses, widening the net loss, yet management asserts the company has sufficient working capital for more than the next five years despite operational challenges and cash burn [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Fee income for Q2 2025 fell by $359,690 (**73%**) year-over-year, mainly due to reduced automotive royalties and the bankruptcy of a licensee supplying Ferrari, which has since transitioned to another of the company's licensees, while operating expenses increased by $299,024 in the quarter, driven by non-cash compensation and credit loss expenses, and for the six-month period, fee income decreased by 14%, with net loss widening from $536,626 to $981,513 - Q2 2025 fee income decreased by **73%** YoY, primarily due to lower automotive royalties and the bankruptcy of a European licensee that supplied Ferrari, with Ferrari transitioning its business to another existing licensee[69](index=69&type=chunk) - Q2 2025 operating expenses increased by **$299,024** YoY, mainly due to higher non-cash compensation cost (**$165,000**) and higher credit loss expense (**$124,000**)[70](index=70&type=chunk) Net Loss Comparison (in USD) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three months ended June 30 | **$803,826 ($0.02/share)** | **$94,022 ($0.00/share)** | | Six months ended June 30 | **$981,513 ($0.03/share)** | **$536,626 ($0.02/share)** | [Financial Condition, Liquidity and Capital Resources](index=18&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company's cash and cash equivalents decreased by $719,910 during the first six months of 2025, ending the period with approximately $1.3 million, yet management states that current working capital of $1.7 million is sufficient to fund operations for more than the next five years - As of June 30, 2025, the company had cash and cash equivalents of approximately **$1.3 million** and working capital of **$1.7 million**[80](index=80&type=chunk) - Management expects to have sufficient working capital for more than the next five years of operations[81](index=81&type=chunk)[82](index=82&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material change in its market risk disclosures from what was presented in its Annual Report on Form 10-K for the year ended December 31, 2024 - There has been no material change in the company's market risk since the last annual report[84](index=84&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and acting interim CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, and concluded they were effective, with no material changes in internal control over financial reporting during the quarter - The company's management concluded that disclosure controls and procedures were effective as of June 30, 2025[85](index=85&type=chunk) - No material changes were made to the internal control over financial reporting during the three months ended June 30, 2025[86](index=86&type=chunk) [PART II - OTHER INFORMATION](index=20&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 6. Exhibits](index=20&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications (Rule 13a-14(a)/15d-14(a) and Section 1350) and Inline XBRL data files - The report includes certifications from CEO Joseph M Harary and various Inline XBRL documents as exhibits[88](index=88&type=chunk) [SIGNATURES](index=21&type=section&id=SIGNATURES) - The report is signed by Joseph M Harary, serving as President, CEO, and acting interim CFO, on August 7, 2025[90](index=90&type=chunk)

Core Viewpoint - Research Frontiers Inc. is set to release its second quarter 2025 financial results on August 7, 2025, and will host a conference call to discuss these results and recent developments [1]. Company Overview - Research Frontiers (Nasdaq: REFR) is a publicly traded technology company that develops patented SPD-Smart light-control film technology, enabling users to control the shading of glass or plastic products [2]. - The company's smart glass technology has been licensed to various well-known companies in the chemical, material science, and glass industries, with applications in tens of thousands of vehicles, aircraft, yachts, trains, homes, offices, museums, and other buildings [2].

Financial Data and Key Metrics Changes - In Q1 2025, royalty revenues increased over 79% to $560,000, which is an increase of more than $246,000 compared to Q1 2024 [4] - Royalty income was up 214% sequentially from Q4 2024, reflecting a strong growth trajectory [5] - The net loss for Q1 2025 was $177,687, or $0.01 per common share, which is $265,000 or 60% lower than the first quarter of the previous year [5][6] - Cash and cash equivalents stood at approximately $1,400,000, with working capital around $2,300,000, indicating a strong liquidity position [6] Business Line Data and Key Metrics Changes - The automotive market saw a 128% increase in royalties compared to Q1 2024 and a 267% increase compared to Q4 2024, driving overall revenue growth [5] - Revenues from the aircraft market also increased sequentially in Q1 2025 compared to Q4 2024, contributing to the positive financial results [5] Market Data and Key Metrics Changes - The company expects revenue growth across all market segments as new car models and products utilizing SPD SmartGlass technology are introduced [5] - The architectural market is anticipated to grow significantly, particularly with the launch of retrofit applications that simplify installation and reduce costs [16] Company Strategy and Development Direction - The company is focused on maintaining a low-risk business model while encouraging diversification and expanding its global footprint [10] - Strategic partnerships, particularly with Gauzy, are emphasized as crucial for reinforcing market position and expanding production capacity [111] - The company is excited about the potential of the retrofit application in the architectural market, which is expected to minimize tenant disruption and costs [99][101] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards profitability, citing steady revenue growth and effective expense management [108] - The outlook for the smart glass industry remains promising, driven by superior technology, increasing demand, and regulatory support [112] - Management highlighted the importance of innovation and execution in driving shareholder value [113] Other Important Information - The company remains debt-free and does not anticipate needing to raise capital unless for strategic reasons [6] - Regulatory support, such as the Dynamic Glass Act, is expected to encourage the adoption of SPD SmartGlass in buildings [110] Q&A Session Summary Question: What is the advantage of the dark particle technology? - The dark particle is considered the "holy grail" due to its aesthetic and technical benefits, including a more neutral color and improved light blocking capabilities [23][26] Question: Are there any projects on hold waiting for the commercialization of the dark particle? - No projects are on hold; the dark particle is seen as an improvement but not a barrier to current projects [31] Question: Will the upcoming shareholders meeting be open to everyone? - Yes, the meeting is open to all shareholders, but it will primarily be administrative [32][33] Question: Are there any products to demonstrate at the meeting? - The company has a design center showcasing various smart glass technologies, but the dark particle will not be demonstrated until it is commercialized [34][35] Question: How is the company addressing the impact of U.S. trade tariffs? - The company has not seen significant effects from tariffs, particularly in the premium market, as demand remains strong [37][76] Question: What is the status of the retrofit application for office windows? - The retrofit application is expected to significantly reduce installation disruption and costs, with projects already underway [99][101]

Financial Data and Key Metrics Changes - In Q1 2025, royalty revenues increased over 79% to $560,000, which is an increase of more than $246,000 compared to Q1 2024 [4] - Royalty income was up 214% sequentially from Q4 2024, reflecting a strong demand in the automotive market [5] - The net loss for Q1 2025 was $177,687, or $0.01 per common share, which is $265,000 or 60% lower than the first quarter of the previous year [5][6] - Cash and cash equivalents stood at approximately $1,400,000, with working capital around $2,300,000, indicating a strong liquidity position [6] Business Line Data and Key Metrics Changes - Royalty revenues from the automotive market were up 128% compared to Q1 2024 and up 267% compared to Q4 2024 [5] - Revenues from the aircraft market also showed sequential growth in Q1 2025 compared to Q4 2024 [5] Market Data and Key Metrics Changes - The company is seeing increased demand for SPD SmartGlass in the automotive sector, with new car models expected to be introduced in 2025 [5][11] - The architectural market is anticipated to grow, particularly with the launch of retrofit applications [15][90] Company Strategy and Development Direction - The company aims to leverage its strong position in the smart glass technology market, focusing on automotive and architectural applications [10][90] - The introduction of retrofit applications is seen as a game changer, simplifying installation and reducing costs [15][90] - Regulatory support, such as the Dynamic Glass Act, is expected to encourage the adoption of SPD SmartGlass in buildings [90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards profitability, citing steady revenue growth and effective expense management [88][92] - The outlook for the smart glass industry remains promising, driven by superior technology and increasing demand [92][93] Other Important Information - The company remains debt-free and does not anticipate raising capital unless for strategic reasons [6][92] - The relationship with Gauzy, a key licensee, is strong and collaborative, contributing to the company's growth [91] Q&A Session Summary Question: What is the advantage of the dark particle technology? - The dark particle is considered the "holy grail" due to its aesthetic and technical benefits, potentially blocking more light and providing a neutral color [23][25] Question: Are there any effects of U.S. trade tariff policy on the business? - The premium market is not significantly affected by tariffs, and the company has a worldwide footprint that mitigates risks [35][60] Question: What progress is being made in the display area with LG? - There is ongoing public visibility in embedding OLED displays in windows, indicating a trend towards multifunctional glass [40] Question: What is the status of the dynamic glass act and office windows? - The retrofit application for office windows is expected to minimize disruption and costs, with projects already underway [80][84]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited financial statements show its financial position, performance, and cash flows for Q1 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $3.77 million, driven by a reduction in cash and cash equivalents Condensed Consolidated Balance Sheets | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $1,352,805 | $1,994,186 | | Royalties receivable, net | $969,059 | $658,213 | | **Total Assets** | **$3,768,086** | **$4,039,647** | | **Current Liabilities** | | | | Total current liabilities | $210,708 | $269,027 | | **Total Liabilities** | **$1,341,438** | **$1,435,312** | | **Total Shareholders' Equity** | **$2,426,648** | **$2,604,335** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) A significant increase in fee income reduced the company's operating and net loss in Q1 2025 Condensed Consolidated Statements of Operations | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Fee income | $559,776 | $313,378 | | Total expenses | $799,353 | $783,128 | | Operating loss | $(239,577) | $(469,750) | | Net loss | $(177,687) | $(442,604) | | Basic and diluted net loss per common share | $(0.01) | $(0.01) | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity decreased solely due to the net loss incurred during the first quarter of 2025 - The change in shareholders' equity for the three months ended March 31, 2025, was solely due to the **net loss of $177,687**, as there were no equity transactions during the period[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased due to a higher cash burn from operating activities in Q1 2025 Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(641,271) | $(391,120) | | Net cash used in investing activities | $(110) | $(50) | | Net cash provided by financing activities | $0 | $8,670 | | **Net decrease in cash** | **$(641,381)** | **$(382,500)** | | **Cash at end of period** | **$1,352,805** | **$2,093,458** | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies, business operations, revenue recognition, and lease obligations [Note 2. Business](index=8&type=section&id=Note%202.%20Business) The company develops SPD technology and has sufficient working capital for the next 12 months - The company develops and markets SPD technology for applications in architectural, automotive, marine, aerospace, and other industries[20](index=20&type=chunk) - As of March 31, 2025, the company had **working capital of approximately $2.3 million** and cash of $1.4 million, which is expected to be sufficient for at least the next 12 months[21](index=21&type=chunk) [Note 3. Segment Information](index=9&type=section&id=Note%203.%20Segment%20Information) The company operates as a single segment, with all revenue generated from outside the United States - The company operates as a single business segment, licensing its SPD-Smart light-control technology to over 40 licensees worldwide[23](index=23&type=chunk) - For the three-month periods ending March 31, 2025 and 2024, **100% of the company's revenue was generated from sources outside of the United States**[23](index=23&type=chunk) [Note 5. Revenue Recognition](index=10&type=section&id=Note%205.%20Revenue%20Recognition) Revenue from license agreements is recognized based on three distinct performance obligations - The company identifies three performance obligations in its license agreements: Grant of Use, Technical Support, and access to New Improvements[32](index=32&type=chunk) - Revenue from the 'Grant of Use' is recognized upfront, while revenue from 'Technical Support' and 'New Improvements' is recognized over the contract period, which can lead to higher revenue recognition in the first period of a new contract[36](index=36&type=chunk)[38](index=38&type=chunk) - During Q1 2025, the company entered a new license agreement and **recognized $226,400** related to the Grant of Use performance obligation[42](index=42&type=chunk) [Note 6. Fee Income](index=12&type=section&id=Note%206.%20Fee%20Income) Fee income shows significant customer concentration, with four licensees comprising 93% of the total - In Q1 2025, four licensees accounted for approximately **40%, 33%, 10%, and 10% of total fee income**[44](index=44&type=chunk) - In Q1 2024, four licensees accounted for approximately **39%, 19%, 19%, and 10% of total fee income**[44](index=44&type=chunk) [Note 10. Leases](index=13&type=section&id=Note%2010.%20Leases) The company holds an operating lease with a remaining term of 6.8 years and liabilities of $1.26 million Maturities of Operating Lease Liabilities | Maturities of Operating Lease Liabilities | Amount | | :--- | :--- | | Year 1 | $219,000 | | Years 2-3 | $454,000 | | Years 4-5 | $485,000 | | Thereafter | $447,000 | | **Total lease payments** | **$1,605,000** | | Less: Imputed lease interest | $(340,459) | | **Present value of lease liabilities** | **$1,264,541** | [Note 11. Related Party](index=14&type=section&id=Note%2011.%20Related%20Party) Fee income from related party Gauzy, Ltd represented 11% of total fee income in Q1 2025 - Fee income from related parties Gauzy and Vision Systems was **11% of total fee income in Q1 2025** and 21% in Q1 2024[54](index=54&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 79% increase in fee income, a reduced net loss, and a stable financial outlook [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Fee income rose 79% due to higher automotive royalties, significantly narrowing the company's net loss Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Fee Income | $559,776 | $313,378 | +79% | | Operating Expenses | $636,476 | $633,387 | +0.5% | | R&D Expenditures | $162,877 | $149,741 | +8.8% | | Net Loss | $(177,687) | $(442,604) | -60% | - The increase in fee income was primarily the result of **higher royalties from the automotive market**[66](index=66&type=chunk) - The company recorded **$47,357 of other income** in Q1 2025 from an Employee Retention Credit under the CARES Act[70](index=70&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=16&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company's working capital is sufficient for over five years despite a quarterly cash burn - Cash and cash equivalents **decreased by $641,381 in Q1 2025**, mainly due to cash used to fund operations[73](index=73&type=chunk) - Management currently expects to have **sufficient working capital for more than the next five years** of operations[74](index=74&type=chunk)[75](index=75&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=18&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures remain materially unchanged from the 2024 Annual Report on Form 10-K - There has been **no material change** in the disclosure regarding market risk from the company's most recent Form 10-K[77](index=77&type=chunk) [Item 4. Controls and Procedures](index=18&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes - The Chief Executive Officer and acting interim Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective as of March 31, 2025**[78](index=78&type=chunk) - **No changes in internal control over financial reporting** occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[79](index=79&type=chunk) PART II - OTHER INFORMATION [Item 6. Exhibits](index=19&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including required CEO/CFO certifications - The exhibits filed with this report include **CEO/CFO certifications and Inline XBRL documents**[81](index=81&type=chunk)

Company Overview - Research Frontiers Inc. is a publicly traded technology company specializing in SPD-Smart light-control film technology, enabling precise control of shading in glass or plastic products [2] - The company's technology has been licensed to various well-known companies in the chemical, material science, and glass industries, with applications in cars, aircraft, yachts, trains, homes, offices, museums, and other buildings [2] Upcoming Financial Results - Research Frontiers will release its first quarter 2025 financial results on May 8, 2025 [1] - A conference call is scheduled for 4:30 PM Eastern Time on the same day to discuss the financial and operating results, along with recent developments [1]

Core Insights - Research Frontiers Inc. announced the incorporation of its SPD-SmartGlass technology in the new Mercedes-Benz Vision V show car unveiled at Auto Shanghai 2025 [1][6] - Approximately 75% of the Vision V's glazing area utilizes SPD film, highlighting the growing demand for smart glass technology in the automotive industry [2][4] - The Vision V features a dual smart glass stack combining SPD and PDLC technologies, allowing for seamless transitions between different states of transparency [5] Company Overview - Research Frontiers is a publicly traded technology company specializing in SPD-Smart light-control film technology, which allows for instant and precise control of glass shading [7][8] - The company has licensed its technology to various well-known companies in the chemical, material science, and glass industries, with applications in numerous vehicles, aircraft, yachts, and buildings [8] Industry Trends - SPD-SmartGlass technology is increasingly adopted by leading automotive brands, including Cadillac, Ferrari, and McLaren, as well as in aircraft and luxury trains, showcasing its versatility [4] - The technology offers significant benefits such as reducing cabin temperatures by up to 18 degrees Fahrenheit (10 degrees Celsius), leading to smaller air conditioning systems and energy savings [7] - The automotive industry is moving towards electric, connected, and personalized mobility, with SPD-SmartGlass positioned as a key player in this transformation [6]

Financial Data and Key Metrics Changes - The company reported a loss per share of $0.04 for the entire year, which is the lowest since going public [36] - Revenue for the fourth quarter was about half of that in the third quarter due to automotive production cuts [2] Business Line Data and Key Metrics Changes - The company has seen momentum across multiple markets, indicating potential for significant revenue growth in the future [102] - The automotive sector remains the most predictable market for future revenue, with expectations for large sales in 2026 [105] Market Data and Key Metrics Changes - The company is focused on the premium automotive market, where demand remains strong despite potential tariff impacts [54] - The architectural market presents significant opportunities due to the size of the glass market for buildings and homes [127] Company Strategy and Development Direction - The company aims to maintain an asset-light business model to reduce risks and enhance technology and market expansion [129] - The strategy includes leveraging partnerships with diversified licensees across multiple industries, including automotive, aircraft, and architectural [129] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a profitable quarter in the coming year, contingent on the timing of vehicle releases and architectural projects [103] - The company is optimistic about the introduction of new vehicles in 2025, which could significantly impact revenues [75] Other Important Information - The company has a robust patent portfolio with 250 patents and an equal number of applications, indicating a strong focus on intellectual property protection [87] - Management highlighted the importance of timely announcements regarding significant contracts to improve stock performance [116] Q&A Session Summary Question: What was the reason for the revenue drop in Q4? - Management indicated that automotive production cuts were the primary reason for the revenue decline in the fourth quarter [2] Question: Can the company provide updates on new business announcements? - Management acknowledged the need for better communication and plans to participate in investor conferences to raise awareness [7][8] Question: What is the status of the black particle SPD patent? - Management stated that they are working on strong patent protection but did not disclose specific strategies during the call [13] Question: Is there any progress on the Sun Visor development? - Management confirmed ongoing development on both OEM and aftermarket sides but deferred specifics to licensees [60] Question: What are the expectations for new vehicle introductions in 2025? - Management expects several new vehicle introductions in 2025, with a shorter lead time for implementation compared to previous years [75] Question: How does the royalty structure for the black particles compare to existing agreements? - Management indicated that the royalty structure would likely remain similar, with potential for increased revenue due to higher sales volumes [85]

Financial Data and Key Metrics Changes - Revenues increased by 47% to $1.336 million, driven by a $426,000 increase in royalty income, with a 48% rise in automotive royalties and a 57% increase from aircraft [4][5] - Total expenses decreased by over $165,000, representing a 6% reduction, marking the lowest expense level since 1996 [4] - The net loss for the year was $0.04 per share, an improvement from $0.06 per share last year, indicating the lowest annual loss since going public 38 years ago [5] Business Line Data and Key Metrics Changes - Significant growth was noted in the Ferrari and McLaren business lines, alongside the introduction of the Cadillac Celestiq featuring SPD SmartGlass [6] - Commercial airlines have started incorporating SPD in cabin windows, with notable implementations in Boeing and Airbus aircraft [7] Market Data and Key Metrics Changes - Most revenues and sales are generated in Europe and South America, with a potential shift towards the United States as architectural applications and new domestic vehicles come online [18] Company Strategy and Development Direction - The company is focused on operational efficiency and maintaining an asset-light business model, aiming for cash flow positivity and profitability [113][115] - There is an emphasis on expanding into architectural projects, including retrofitting existing buildings with SPD SmartGlass, which is expected to accelerate the sales cycle [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a profitable quarter in the coming year, contingent on the timing of vehicle releases and architectural retrofits [95] - The company anticipates significant sales growth in 2026, potentially surpassing previous expectations [54] Other Important Information - The introduction of the black particle SPD technology is seen as a significant advancement, with potential market expansion opportunities [15][72] - The company has a robust patent portfolio, with ongoing efforts to protect intellectual property related to new technologies [84] Q&A Session Summary Question: What was the reason for the fourth quarter revenue being about half of the third quarter? - Management indicated that automotive production cuts by carmakers to clear inventory were the primary reason [26] Question: Can we expect announcements regarding new business contracts? - Management confirmed that they will aim to announce significant contracts as they materialize [30] Question: Is there any progress on the sun visor development? - Management confirmed ongoing development on both OEM and aftermarket sides [68] Question: What is the expected impact of tariffs on retail prices? - Management does not expect tariffs to significantly impact revenues, particularly in the premium automotive market [19][62] Question: Are there any updates on the black particle SPD technology? - Management highlighted the importance of the black particle and its potential to expand market opportunities, while also noting the need for further development before mass production [72][84]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) of THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarter ended March 31, 2022 Commission File Number 000-14893 RESEARCH FRONTIERS INCORPORATED (Exact name of registrant as specified in its charter) | DELAWARE | 11-2103466 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 240 CROSSWAYS PARK DRIVE | ...