Financial Data and Key Metrics Changes - Automotive and total royalties increased year over year and sequentially when excluding one-time events from 2024 [3] - As of September 30, 2025, the company held approximately $1.13 million in cash and had working capital of $1.4 million, remaining debt-free [7][8] - Royalty income from Ferrari sales will be fully recordable in the fourth quarter, with expectations for revenue growth across all market segments [6][7] Business Line Data and Key Metrics Changes - The architectural retrofit system was launched at Glass Build 2025, receiving positive feedback from attendees [3][4] - The company has identified initial customers for the retrofit system, including government buildings and commercial high-rises [3] - Royalty income from automotive sales was impacted by a licensee transition, but overall royalties in Q3 were higher than the previous year after adjusting for one-time events [5][6] Market Data and Key Metrics Changes - The company is experiencing significant interest in its SPD Smart Glass technology across multiple industries, including aerospace, automotive, and architectural markets [8][31] - The government is a major customer, promoting SPD Smart Glass through tax incentives, which is expected to accelerate adoption [31] Company Strategy and Development Direction - The company plans to build on momentum from trade shows and is focusing on major upcoming events to showcase its products [4][9] - Continuous innovation is a priority, with developments such as black SPD film expected to enter production soon [38][39] - The company aims to maintain a low-risk, asset-light business model while expanding its global reach through licensing [42][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that while progress may take longer than anticipated, the company is consistently moving forward with its projects [30][39] - The automotive industry is viewed as a challenging but promising market, with increasing demand for SPD technology [31][43] - The company is positioned for meaningful growth with multiple new car model introductions and the retrofit launch underway [44] Other Important Information - The company has a full pipeline of projects and opportunities, with significant developments expected in the near term [8][39] - Management highlighted the importance of maintaining high performance and reliability in the smart glass industry, especially in comparison to competitors [37][43] Q&A Session Summary Question: Where are all the car sales that have been projected? - Management explained that accounting treatment related to licensee transitions affected reported royalties, but they expect significant automotive sales moving forward [15][16] Question: Is there interest in profiling the retrofit product in media? - Management confirmed that discussions are ongoing to feature the retrofit product in shows and podcasts [17] Question: What was the product installed in the White House? - The product was an anti-eavesdropping bullet-resistant glass, which can also incorporate SPD technology [23][24] Question: How capable is the supply chain setup for the architectural market? - Management indicated that the supply chain is robust, with multiple facilities dedicated to production and lamination [27][28] Question: What is the status of the black SPD film? - Management stated that the development of black SPD is very advanced and will be discussed in closing remarks [26] Question: What caused the slowdown in Hyundai's project? - Management noted that the slowdown was related to the car itself rather than the SPD technology [26]

Core Insights - Research Frontiers Inc. reported its financial results for the third quarter of 2025, highlighting a positive response to its newly introduced SPD-Smart retrofit window system and growth in the automotive market [1][3][4]. Company Developments - The SPD-Smart retrofit window system was launched at GlassBuild 2025, enabling retrofitting of SPD-SmartGlass in various buildings, receiving positive feedback from industry professionals [3]. - Royalty income from the automotive segment increased year-over-year and sequentially, with the transfer of the Ferrari SPD-SmartGlass business to a new licensee leading to full recognition of related royalties in Q4 [3][4]. - The company’s technology will be showcased at the Automotive Glazing Conference in Detroit, emphasizing its leadership in the automotive glazing sector [3][7]. Technology and Market Position - SPD-SmartGlass technology is gaining global traction, outperforming competitors in clarity, speed, durability, and shading range [4][7]. - Developments in black SPD film and prefabricated lamination stacks are expected to enhance optical performance and reduce production costs, facilitating faster market adoption [7]. Financial Performance - For Q3 2025, Research Frontiers reported a net loss of $1.28 million, compared to a net loss of $703,442 in Q3 2024, with operating expenses increasing [14]. - The company remains debt-free, with cash and cash equivalents of $1.13 million and working capital of $1.4 million as of September 30, 2025, reflecting disciplined financial management [7][14]. - Total current assets decreased to $1.61 million from $2.75 million in the previous year, while total liabilities decreased to $1.27 million from $1.44 million [11][12].

Financial Data and Key Metrics Changes - The company generated revenues of $20.1 million for Q2 2025, with a gross margin of 21.4%, down from 27% in the prior year period [14][15] - Total operating expenses increased to $16.8 million from $14.5 million year-over-year, primarily due to higher corporate expenses and increased depreciation and R&D expenses [16][17] - Adjusted EBITDA was negative $8.7 million, compared to negative $3.9 million in the prior year [17] - Free cash flow improved to an outflow of $5.2 million from negative $11.5 million year-over-year [18] - The company ended the quarter with total liquidity of $36.2 million, including $35 million available under an undrawn credit line [18][19] Business Line Data and Key Metrics Changes - The backlog of orders reached a record $43 million to be shipped in 2025, indicating strong customer demand [6][14] - The aeronautics segment is the largest contributor to the backlog, with $21.3 million associated with this division [48] - The warehouse division reported a gross margin of 23%, down from 37% in the prior year, reflecting lower segment revenue and a change in product mix [15] Market Data and Key Metrics Changes - The global automotive smart glass market is projected to grow from $16 billion in 2024 to over $25 billion by 2028, with the company positioned to capitalize on this growth [8] - The marine lab market is valued at $6.2 billion, with the company expanding its presence in this sector [9] Company Strategy and Development Direction - The company aims to strengthen its balance sheet through debt financing, having closed on $15 million under favorable terms [5][19] - Strategic expansion into the marine sector and the aeronautics division is a focus, with new product launches planned for early 2026 [10][11] - The company is committed to non-dilutive capital sources to fund operations until achieving cash flow profitability [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year guidance despite shipment delays due to external factors, including a conflict in the region [6][29] - The second half of 2025 is expected to be significantly stronger than the first half, supported by a record backlog of orders [6][20] - Management emphasized the importance of operational discipline and cash management strategies to improve cash flow productivity [18] Other Important Information - The company has made significant board changes to align with its public company evolution, welcoming back a former director with expertise in global expansion and M&A [12] - The company is focused on enhancing its innovation pipeline across all business divisions [23] Q&A Session Summary Question: Can you elaborate on the timing dynamics affecting revenue? - Management acknowledged shifts in delivery timing and expressed confidence in meeting annual guidance despite some deliveries moving to the second half of the year [26][29] Question: What is the confidence level for the second half revenue ramp? - Management confirmed the company is prepared to deliver $45 million to $50 million quarters, aligning with sales order cadence [31][32] Question: Can you discuss liquidity dynamics going forward? - Management highlighted a $35 million credit line available for use and expressed confidence in achieving cash flow positive status [36][38] Question: What are the levers expected to achieve positive EBITDA this year? - Management indicated that achieving over $31 million in revenue would lead to positive adjusted EBITDA, with improved gross margins expected in the second half [43][45] Question: How does the backlog mix look for key contributors? - The aeronautics segment is the largest contributor to the backlog, with management confident in meeting targets for this division [47][48] Question: How will working capital items change to support increased shipping capacity? - Management noted that 80% of the business is factored, allowing for immediate cash flow upon invoicing, which supports production planning [50][52]

Financial Data and Key Metrics Changes - The financial results for Q2 2025 were disappointing primarily due to one-time and non-cash charges related to a bankruptcy and the replacement of a licensee supplying Ferrari [4][5] - When excluding these one-time charges, expenses would be essentially the same or lower than last year, and royalties would be up compared to last year [5][7] - Cash and cash equivalents as of June 30, 2025, stood at approximately $1.3 million, a decrease of $100,000 from the previous quarter, while working capital was approximately $1.7 million [9] Business Line Data and Key Metrics Changes - Sales of SPD SmartGlass sunroofs to Cadillac in Q2 2025 were significantly higher than the combined sales in Q4 2024 and Q1 2025 [5] - Royalty income was down this quarter due to the bankruptcy of a European licensee supplying Ferrari, which was anticipated and has since transitioned to another licensee [6][7] - Continued sales of SPD SmartGlass from Mercedes and McLaren occurred in 2025, with expectations for additional income from automotive projects starting in Q3 2025 [7][8] Market Data and Key Metrics Changes - The company experienced a 79% revenue growth from Q1 2025 over the prior year and 214% from the prior quarter, driven by increased demand for SPD SmartGlass in the automotive and aircraft sectors [8] - The architectural market is seeing growing interest, with new projects expected to contribute to revenue increases [8] Company Strategy and Development Direction - The company aims to become a significant player in the market, with plans to introduce new car models and products using SPD SmartGlass technology [8] - The architectural retrofit market is viewed as a game changer, allowing for the installation of SPD windows without scaffolding, thus reducing disruption and costs [40][41] - The company is focusing on energy efficiency and ease of installation as key selling points for their products in both residential and commercial markets [59][90] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the bankruptcy of a licensee but emphasized that the business model allows for seamless transitions to other suppliers [72][81] - The company expects to see revenue increases in the second half of 2025, particularly from architectural projects and automotive sales [90][96] - Management remains optimistic about future growth, citing strong demand and ongoing projects in various sectors [8][93] Other Important Information - The company is currently debt-free and continues to manage resources effectively [9] - The SPD Smart technology is licensed or used by many major companies across five major application areas: aerospace, architectural, automotive, marine, and display products [9] Q&A Session Summary Question: Update on SPD black development - Management reported that development is progressing well and faster than anticipated, with positive feedback from key OEMs [11] Question: Impact of U.S. trade and tariff policy - Management stated that there has been no noticeable effect on business from ongoing trade policies, as the automotive industry has stabilized [13] Question: Concerns about business opportunities due to world opinion on Israel - Management disagreed with the notion that world opinion has turned against Israel and reported no business losses from this situation [14] Question: Future projects and potential revenue - Management indicated that future projects in both architectural and automotive sectors are on track and could significantly increase revenues [31][43] Question: Bankruptcy of a licensee and its implications - Management explained that the bankruptcy was due to the licensee's overextension with other customers and emphasized that the SPD business was not affected [70][72] Question: Architectural retrofit market potential - Management highlighted the potential for high tens of millions in sales from architectural retrofits, with expectations for significant growth in the coming years [23][93]

Market Overview - The high-performance glass products market is categorized into various types, including low-emission glass and solar control glass, with significant growth expected from 2020 to 2031 [3][4]. - The market is projected to see substantial revenue growth across different applications, such as commercial, residential, and industrial buildings [3][4]. Industry Development Status - The overall development of the high-performance glass products industry is characterized by increasing demand and technological advancements [4][8]. - Key factors influencing the industry include favorable conditions such as energy efficiency and sustainability, alongside challenges like high production costs [4][8]. Supply and Demand Forecast - Global supply and demand for high-performance glass products are expected to grow significantly from 2020 to 2031, with detailed forecasts on production capacity, output, and utilization rates [4][20]. - China's production capacity and output are projected to account for a significant share of the global market, indicating its growing influence [4][20]. Regional Analysis - The market analysis reveals varying growth trends across major regions, including North America, Europe, and the Asia-Pacific, with specific revenue and volume forecasts for each region [5][21]. - The Asia-Pacific region, particularly China, is anticipated to dominate both production and consumption of high-performance glass products by 2031 [5][21]. Competitive Landscape - The competitive landscape of the high-performance glass market includes major players with significant market shares, production capacities, and revenue rankings [6][7]. - The industry is characterized by a mix of established companies and emerging players, with ongoing innovations and product developments shaping the competitive dynamics [6][7]. Product Type Analysis - Different product types within the high-performance glass segment are expected to experience varied growth rates, with detailed sales and revenue projections provided for each category [5][13]. - The analysis includes market share assessments for each product type, highlighting the competitive positioning of key players [5][13]. Application Analysis - The demand for high-performance glass products across various applications is projected to grow, with specific forecasts for sales and revenue in commercial, residential, and industrial sectors [6][15]. - The report emphasizes the importance of application-specific trends in driving market growth and shaping product development strategies [6][15]. Industry Trends and Drivers - Key trends driving the high-performance glass industry include advancements in technology, increasing environmental regulations, and a growing focus on energy-efficient building materials [8][20]. - The industry is also influenced by government policies and regulations aimed at promoting sustainable practices and reducing carbon footprints [8][20].

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]

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]