Financial Data and Key Metrics Changes - The company made significant further reductions in costs, although specific financial data was not disclosed during the call [6][54]. Business Line Data and Key Metrics Changes - The automotive sector is experiencing a major trend towards electric vehicles, with the U.S. government targeting 50% of all vehicles sold to be zero-emission by 2030. The company's SPD-SmartGlass can increase the driving range of electric vehicles by up to 5.5% [8][9]. - SPD-SmartGlass has been proven to reduce cabin temperatures by 18 degrees Fahrenheit, allowing car manufacturers to reduce the size of air conditioning compressors by up to 40% [11][27]. - The company has about 250 patents on its basic material, which is being utilized in various innovative ways across different industries [12]. Market Data and Key Metrics Changes - The company is seeing increased interest in SPD-SmartGlass for trains, with a recent announcement regarding its use in the Deutsche Bahn Idea Train [14][15]. - In the architectural market, SPD-SmartGlass is competing with electrochromic technologies, with significant performance advantages such as faster tinting times and uniformity of tint [16][18]. Company Strategy and Development Direction - The company is focusing on expanding its presence in the automotive, architectural, aircraft, and mass transit industries, leveraging the growing demand for energy-efficient and lightweight materials [7]. - The company is also working to improve the cost structure of its film production through its partnership with Gauzy, which has a new facility in Germany [23]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the growing demand for SPD-SmartGlass in various sectors, particularly as the automotive industry shifts towards electrification and energy efficiency [8][13]. - The management noted that while there may be a gap between the phasing out of certain models and the introduction of new ones, there are many ongoing projects with various OEMs [106]. Other Important Information - The company is not currently seeing a combination product of SPD and PDLC in automotive applications, as the primary use of PDLC is for privacy, which is less relevant for sunroofs [108]. - The company is actively working with various electric vehicle manufacturers and is optimistic about the potential applications of its technology in hydrogen vehicles as well [72]. Q&A Session Summary Question: Any progress on your film producers bringing down the cost curve? - The facility in Stuttgart, Germany, can produce film at a fraction of the cost of the previous facility, with new equipment delivered to increase efficiency and production capacity [23]. Question: Where are we in terms of SPD film being used in future cars? - The company expects several announcements at the Munich Auto Show, indicating ongoing interest from automotive manufacturers [25]. Question: Is there a combination product with SPD and PDLC expected in the automotive sector? - Management does not foresee a combination product in automotive applications, as PDLC is primarily for privacy, which is not a significant need for sunroofs [26][108]. Question: What is the cost differential between View's technology and Research Frontiers' SPD? - The company has not seen unsubsidized pricing in the electrochromic industry, indicating a significant subsidy in their pricing structure [28]. Question: What is the role of Gauzy in Research Frontiers? - Gauzy is licensed to produce SPD film and has built a state-of-the-art facility in Germany, with a strong collaborative relationship with Research Frontiers [29]. Question: How far along is Gauzy in developing a dark particle? - Gauzy is actively working on this development, and Research Frontiers has existing techniques to work on color and new materials [47]. Question: What is the status of SPD in the architectural market? - The company is involved in several architectural projects, primarily focusing on larger projects like skyscrapers, and is seeing increased sophistication from architects regarding SmartGlass technologies [76][80].
Research Frontiers(REFR) - 2021 Q2 - Earnings Call Transcript