RESEARCH FRONTIERS INC Q3 FY2024 earnings call

1. Automotive and Aircraft: Steady march towards adoption of SPD-SmartGlass technology. Manufacturing costs of SPD products decreased, making it feasible for moderately priced vehicles. Multiple new car models with SPD Smart Glass expected from Asian and European carmakers as early as 2025. 2. Aircraft Market: Revenue growth with double-digit in Q2 and triple-digit in Q3. Larger aircraft now have customer-driven adoption due to SPD's performance, with temperature benefits observed (up to 26°F reduction in cabin temp). 3. Architectural Market: Increased interest in SPD projects due to energy saving and glare control. Saudi study highlights SPD's benefits for energy efficiency in hot climates. 4. Intellectual Property: Extensive patent portfolio with about 250 patents worldwide, expiring at least by 2034, with new innovations in pipeline.

Royalty income saw strong growth: compared to Q3 2023, royalty income grew over 115% driven by triple-digit growth in automotive and aircraft markets. For the first nine months of 2024, royalty income rose over 93%, with double-digit growth in aircraft and architectural markets and triple-digit in automotive. Revenue from automotive is on track to almost double roofs sold to Ferrari and triple to McLaren compared to last year. Expenses were down $92,000 in Q3 and over $150,000 over nine months. Quarterly net loss is one third of last year, and for the full nine months is about half, translating to $0.00 on or almost breakeven per share for the quarter and $0.02 per share for the full nine months.

1. Revenue: Expect to finish 2024 with double-digit revenue growth over last year, already surpassed 2023 revenues by end of Q3 2024. 2. New Models: Anticipate multiple new car models with SPD Smart Glass from Asian and European carmakers as early as 2025. 3. Architectural and Retrofit: Potential for SPD in architectural market, including retrofit applications for distribution in big box stores.

1. Competitive Technologies: PDLC and other technologies exist, but SPD offers superior heat, light, and glare control; concerns about automakers using cheaper, less effective technologies. 2. Intellectual Property: Risk of infringement if using older or unlicensed technologies. 3. Regulatory and Distribution: Challenges with big box store distribution due to economics and standard sizes; impact of legislation like the Dynamic Glass Act on architectural success.

Q: Comment on the Saudi study on SPD?

A: The study entitled 'Daylighting Optimization of Integrated Suspended Particle Devices glazing in different school typologies' highlights SPD-SmartGlass' substantial benefits for energy efficiency and daylighting control, particularly in hot climates like Saudi Arabia, conducted by an external entity, rigorous results, and potential for marketing in Saudi Arabia's new projects.

Q: Updates on patents?

A: Existing patents go through 2034, have about 250 patents worldwide, new innovations in pipeline but timing not announced yet.

Q: Availability of sun visors with SPD?

A: Multiple approaches, near term and intermediate/longer term, incorporating into windshield shade band.

Q: Impact of Boeing strike on SPD certification?

A: Yes, Boeing and airlines have done SPD certification.

Q: Gauzy's press release on Ferrari vs Research Frontiers?

A: Research Frontiers expects to announce Asian OEM models, automakers may have conditions on press releases, but RFI has been discussing Ferrari for over two years.