Research Frontiers Incorporated

Good afternoon, ladies and gentlemen. Welcome to Research Frontiers Investor Conference Call to discuss the third quarter 2021 results of operations and recent developments. During today's presentation, all parties will be in a listen-only mode. And following the presentation, the conference will be open for questions by pressing star 1. This conference is being recorded today. A replay of this conference call will be available starting later today in the Investors section of Research Frontier's website at www.smartglass.com and will be available for replay for the next 90 days. Please note that some of the comments made today may contain forward-looking information. The words expect, anticipate, plans, forecasts, and similar expressions are intended to identify forward-looking statements. Statements that are not historical facts are forward-looking statements that are made pursuant to the safe harbor provisions that are part of the Securities Litigation Reform Act of 1995. These statements reflect the company's current beliefs and a number of important factors could cause actual results for future periods to differ materially from those expressed. Significant factors that could cause results to differ from those anticipated are described in our filings with the SEC. Research Frontiers undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties. The company will be answering many of the questions that were emailed to it prior to this conference call, either in their presentation or as part of the Q&A session at the end. In some cases, the company has responded directly to email questions prior to this call or will do so afterwards in order to answer more questions of general interest to the shareholders on this call. If you find that your question has been substantially answered as a courtesy and to allow time for other shareholders to ask their questions, please remove yourself from the queue by pressing star 2. Also, we ask that you keep your questions brief in the interest of time. I would now like to turn the conference over to Joe Harari, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

Thanks Paul and hello everyone and welcome to our third quarter 2021 investor conference call. This year we showed our lowest loss in 26 years and I'm sure it did not escape notice that in today's 10-Q filings and related specialies we were able to use a word that neither we nor any other smart window shading company was ever able to use before. We had earned a profit in the third quarter. As I have said in the past, however, because of the nature of our business, revenues can be choppy depending on the timing of projects, vehicle production volumes, square footage of glass being used in projects, and other factors. We and the other companies in our industry are purely hunting elephants. Sometimes we land an elephant or two in a quarter, and sometimes we take down a whole... These animal lovers like myself out there, but I thought that the metaphor was instructive. This quarter we had three major new events. Two involved loyalties due in the automotive and auto markets from licensees past activities. The third was a government contract in the area of specialty automotive. More information about these developments are in our 10 keys, but I can't say more, especially when you deal with certain areas of our government. Besides landing some big elephants, we had success over the years hunting herds. Examples of this are having our technology go into serial production with McClaren. We kicked off this year in January with a new customer. Cadillac announced at the prestigious Consumer Electronics Show, or CES, that they were introducing the new all-electric luxury flagship, the Celestique, with an all-SPD smart glass four-quadrant roof. More importantly, the prestigious publication GM Authority, with over 3 million readers, highlighted the range-extending benefits of SPD Smart Glass in this and other electric vehicles with a highly coveted 5.5% increase in driving range. They also noted the significance of the 4 grams per kilometer reduction in fuel emissions when SPD Smart Glass is used in internal combustion engine vehicles. But these are not the only benefits. We also make people more comfortable and safer and protect the interiors of cars. And as Bentley has noted in their public presentations about the future of sunroofs within Bentley, there is a greater need for smart glass roofs because of the movement-fixed, non-movable panoramic roofs in cars. Bentley noted that SPD smart glass can also reduce the weight of the roof at 13 pounds and eliminate the need for 54 components. This reduces costs and further increases driving range and reliability while contributing to stability of the car on the road. These benefits in the automotive industry were also discussed in many other prestigious automotive publications, such as Automotive News, Autoline, the Detroit Free Press, Wars Automotive News, and others. More recently, we appeared on the Automotive News Daily News program, First Shift, and also on the widely followed Daily Drive podcast. I invite you to check some of these articles and videos out on our website and our social media platforms. And with our strategic benefits in the areas of electric vehicle range extension and reducing CO2 emissions in ICE vehicles, I expect automotive attention and activity to continue to accelerate, especially when you consider that Hyundai, Sekisui, and others heavily involved in the automotive industry have made substantial investments in our industry through equity investments in our licensee galaxy. Let's talk about important developments in other key markets for our SPD smart glass technologies. Airbus announced this year that their A220 VIP jet would have SPD smart glass electronically dimmable windows. Airbus has already announced orders for 15 of these transportation category size jets. Each of these A220 aircraft will have SPD electronically dimmable windows covering 50 structural windows. This year, aircraft manufacturer EPIC has started delivering jets to customers with FPD Smart EDWs. These planes are quite popular with a backlog, and our licensee vision systems expects a good year ahead. In addition to the Airbus and EPIC, there are a number of other new aircraft models that have not yet been announced by our licensees in the aircraft industry who our vision systems inspect at Ganesha Clima. In yachts, Hatteras now has SPD Smart Skylights in three different production yachts. They join Troy Lee and his design in the production yacht area. Also, mega and custom yacht builders enjoy giving the best to their customers with SPD Smart Glass, and you can expect other boats and cruise ships as well to deploy us. This year, our shareholders saw Panasonic combine OLED display technology with SPD film to make high-definition displays and televisions, that turn into curved windows at the touch of a button. And last month, you also saw LG display do this for transportation vehicle windows at the Munich Auto Show. You also saw BMW introduce in Munich a stunning concept car using SPD SmartClap to control the look and output of the car's headlights. And while we're still on the topic of new markets, let's talk about the architectural market. As many of you know from prior conference calls, with the opening of Jassy's Stuttgart factory in the fourth quarter of 29 and its ability to FPD film 1.8 meters wide, this allowed us for the first time to practically address the large potential architectural market. The architectural market uses twice as much of the world's glass as the automotive market. Smart homes and buildings are potentially our largest, as evidenced by the high valuations that some of our competitors are aspiring for, on just this market alone. And we also learned in the process of competitive bidding on some very large architectural projects for SPD that we actually have gone from having a size disadvantage, and I'm referring to when SPD foam was only coated one meter wide, to now having a size advantage over electrochromics, since they can do similar widths to gauzy foam, 120 meters, but have limitations on the height of the window, and of course, bigger an electrochromic window gets overall the slower it gets with pin switching taking tens of minutes with electrochromics compared to two seconds with spd regardless of the size of the window in trains a licensee jowsey delivered spd smart glass train glass to their customer rehau for the deutsch von idea train rehau is a large supplier to the train and other industries with over 20 000 employees and i started to talk to them 2019 about using SPD in trains, and I'm really pleased that it has progressed the way it has in that industry. Trains use a lot of glass, and SPD's smart process preserves views on such iconic luxury and sightseeing trains as the Shikishimi train in Japan and the Rocky Mountaineer trains in North America. The Deutsche Bahn train opens up SPD to a much larger new market, commuter and regional transport rails. We talked about the new markets. Now let's talk about financial stability and why this is important. Our financial strength and low overhead and operating costs enabled us to survive and even thrive during the whole world events, supply chain disruptions, and other calamities that have affected other industries. These resources have also enabled us to move forward firmness. As of the end of this past third quarter, Your company had working capital of $4.2 million, including $2 million in cash. We continue to have no debt and have been debt free for 26 years. We have very steady, low, and predictable expenses and cash to last for at least the next two years. So now let me take some other questions that our shareholders have emailed to me.

Chuck Michaels asks,