RESEARCH FRONTIERS INC Q1 FY2026 earnings call

• Joe Herary discussed first quarter financial results affected by accounting treatment and Gauzy's French proceedings. • Gauzy's situation is improving, flow of funds beginning to loosen, court hearing in France on May 12 with possible outcomes including approval of continuation plan. • Automotive projects continue, Asian vehicle program active with black SPD, progress on black SPD. • Aerospace deliveries continued, architectural retrofit initiatives advanced, discussions with GM regarding SPD, sun visor development active.

First quarter reported revenues were affected by timing of revenue recognition under license agreements and nonrecurrence of upfront revenue from a new license agreement in 2025. Royalties from automotive and aircraft markets increased sequentially from Q4 2025 to Q1 2026. Cash and cash equivalents increased to approximately $1.28 million as of March 31, 2026 compared to $664,000 at year-end 2025. Operating and R&D expenses declined compared to same period last year. The processing of payments to Research Frontiers and revenue recognition slowed due to French proceedings involving Gauzy's French subsidiaries, temporarily affecting liquidity and financial strength.

• Believes long-term opportunities for SPD Technology remain significant. • Focus remains on supporting licensees and customers, advancing next-generation SPD technologies, positioning for long-term growth.

• Temporary operational and liquidity impacts from French rehabilitation proceedings involving Gauzy's French subsidiaries. • Uncertainty regarding the outcome of the court hearing in France affecting Gauzy's situation and Research Frontiers' financials.

Q: Whether Gauzy continues to produce and deliver SPD film on schedule and if current situation limits new business opportunities.

A: While there have been delays, SPD production activity continued and multiple automotive, aerospace and architectural programs remain active.

Q: Whether mid-market Asian vehicle program may involve black SPD technology.

A: Asian program remains active and involves black SPD.

Q: Whether large volume quotations have been awarded.

A: Awards go to licensees, discussions active in multiple areas including supply licensee selection.

Q: Whether there have been renewed discussions with General Motors regarding SPD.

A: SPD is a capable technology, recent GM experience with another supplier helped show SPD's strength.

Q: Regarding sun visor development.

A: SPD well suited for dynamic visor applications, development discussions active