Analysis Frontiers Integrated (REFR) This fall 2023 Earnings Name Transcript

Analysis Frontiers Integrated (NASDAQ:REFR) This fall 2023 Earnings Convention Name March 7, 2024 4:30 PM ET

Firm Individuals

Joe Harary – President and Chief Government Officer

Convention Name Individuals

Ted Campbell – Non-public Investor

Alan Ginsberg – Non-public Investor

Gerald Sherman – Strategic Planning Group

Artwork Brady – Non-public Investor

John Nelson – Non-public Investor

August Berman – Non-public Investor

Mike Zelnick – Non-public Investor

Bruce Denny – Non-public Investor

Jeff Harvey – Non-public Investor

Seth Nickerson – Non-public Investor

Operator

Good afternoon, girls and gents. Welcome to Analysis Frontiers Investor Convention Name to debate the Fourth Quarter and Full Yr 2023 Outcomes of operations and up to date developments.

Throughout immediately’s displays, all events will likely be in a listen-only mode. [Operator Instructions] This convention is being recorded immediately. A replay of this convention name will likely be obtainable beginning later immediately within the Buyers part of Analysis Frontiers web site at www.smartglass.com and will likely be obtainable for replay for the following 90 days.

Please observe that a number of the feedback made immediately could include forward-looking Information. The phrases count on, anticipate, plans, forecasts and comparable expressions are meant to establish forward-looking statements. Statements that aren’t historic details are forward-looking statements which can be made pursuant to the secure harbor provisions which can be a part of the Securities Litigation Reform Act of 1995.

These statements replicate the corporate’s present beliefs, that various vital elements may trigger precise outcomes for future intervals to vary materially from these expressed. Vital elements that would trigger outcomes to vary from these anticipated are described in our filings with the SEC. Analysis Frontiers undertakes no obligation to replace or revise these forward-looking statements to replicate new occasions or uncertainties.

The corporate will likely be answering most of the questions that had been e-mailed to IT previous to this convention name, both of their presentation or as a part of the Q&A session on the finish. In some instances, the corporate has responded on to e-mail questions previous to this name, or will accomplish that afterwards, with a view to reply extra questions of basic curiosity to shareholders on this name. [Operator Instructions] Additionally, we ask that you just hold your questions transient within the curiosity of time.

I might now like to show the convention over to Joe Harary, President and Chief Government Officer of Analysis Frontiers. Please go forward, sir.

Joe Harary

Hey, thanks, Paul, and hey everybody, and welcome to our fourth quarter and full yr 2023 investor convention name. As you might have seen from the numbers that we launched about half-hour in the past in our 10-Okay, revenues had been up fairly considerably, 109% on this previous yr, prices have been lowered and we’re a lot nearer to profitability. In the present day, we’ll talk about what’s beneath these numbers and why we will all count on 2024 to be a good higher yr for Analysis Frontiers and its shareholders and licensees.

Analysis Frontiers is the market chief in good glass. We’re additionally probably the most diversified firm within the good glass business, with product purposes in automotive, plane, architectural glass, marine glass, and augmented actuality shows, and different areas, together with shopper merchandise. We’re additionally probably the most diversified by way of expertise and capabilities of the businesses we work with and geographically various, with licensees working on nearly each continent besides Antarctica. This broad and various footprint permits us to coordinate, collaborate and repair the wants of our prospects domestically and quickly, wherever they’re.

Proper now, the markets we primarily serve are automotive and plane, and this has been our bread and butter since 2011, when the primary Mercedes got here out in collection manufacturing with our Technology in IT. We had been the primary to use switchable tint Technology to the plane business in each basic aviation and transport class plane.

We’re the one switchable tint Technology in helicopters. And this previous yr, we had been launched on a number of plane produced by Airbus and extra not too long ago by Boeing. Maybe of even higher significance right here is the change in the best way that the switchable tint Technology being utilized in these plane was chosen. IT was chosen by the client and never simply by the producer. That may be a results of the sustained and targeted effort by Analysis Frontiers and our licensees to focus on the advantages that SPD Technology brings to the passengers, to the cabin crew, and to the consolation and passenger expertise of everybody on board.

By way of reliability and confidence, SPD-Sensible Technology is the longest good glass Technology being utilized in vehicles and plane, and even architectural purposes, which up till not too long ago was one thing we did not discuss an excessive amount of.

Fortuitously, Gauzy is ready to at the moment produce a lot wider movie than Hitachi Chemical was in a position to produce up to now. This has opened up the architectural markets with new merchandise, together with a chic and straightforward to implement retrofit resolution with the potential to dramatically scale back the prices and streamline the set up means of good home windows all through the world.

I am joyful to say immediately that this retrofit resolution shouldn’t be solely prepared to be used, however IT‘s already handed years and years of subject testing. We’re fairly enthusiastic about IT as a result of IT has the big income potential for Analysis Frontiers and our licensees, and likewise makes incorporating or including a wise window system to any house or constructing on the earth a a lot simpler determination.

Let’s discuss extra concerning the three areas we see for near-term focus within the architectural market. First, let’s first deal with the advantages, vitality effectivity, elegant shading capabilities, and look at preservation. Properties, workplaces and flats with magnificent views do not need to block them with shades or blinds. SPD-SmartGlass means that you can tune the quantity of sunshine coming in from clear to blocking 99.5% of the sunshine, making them very efficient shading gadgets and saving vitality. In some instances, householders noticed a 20% discount in electrical energy utilization in areas of the house that use simply SPD-Sensible skylights.

And let’s additional discuss skylights for a second. They’re usually laborious to shade and fairly costly to shade. On the nationwide house builders present a couple of week in the past, I noticed skylight shades add about $500 to $700 to the price of a skylight. Add the contractor markup and IT‘s even larger. So we’re fairly price efficient in that market and may remove the area, mechanical methods that may break, and naturally, the price and upkeep that skylight shades require.

Subsequent, let’s discuss architectural authorities constructing upgrades. There are GSA authorities mandates for upgrading non-energy environment friendly glass in authorities buildings with extra environment friendly vitality environment friendly glass. A few of our key licensees are already authorised and on the GSA record, and supplying superior window merchandise to the U.S. and state and native governments, together with embassies, courthouses, faculties, prisons, and different amenities. This can be a massive and pure near-term buyer for SPD-Sensible home windows.

The GSA is definitely, I feel, the most important buyer on the earth. And with the brand new retrofit purposes for SPD-SmartGlass, the broader marketplace for properties, workplace buildings, and flats now turns into large open. And with authorities incentives such because the funding tax credit score launched by the Dynamic Glass Act that provides a 30% to 50% tax credit score to customers and comparable incentives world wide by different governments, the economics behind introducing good glass because of all these elements have turn out to be significantly better as governments have begun to financially assist this with varied incentives.

We have spoken about price reductions via streamlined implementation methods such because the retrofit purposes and authorities incentives. One other issue that has lowered prices is the manufacturing efficiencies in the best way that SPD movie is made and distributed all through the world. We’re lucky to have the management and imaginative and prescient of our licensee, strategic investor and accomplice, Gauzy, on this space.

We’ve got had a really sturdy working relationship with Gauzy from day one and this previous yr, their enterprise enlargement, together with very constructive developments in our business, have each considerably elevated the frequency wherein we meet and collaborate. We’re working with them in Israel, Germany, France, China, South Korea, and naturally, all through the US.

And simply this week alone, we launched a brand new automotive undertaking to Gauzy in Asia. Returning again to automotive for a second, let’s take a look at the numbers there. IT is clearly our largest market now, however IT could also be supplanted within the medium time period by architectural or Information show purposes corresponding to augmented actuality.

We had an general improve in royalty revenue in 2023 in comparison with 2022 of 69%, which is in itself a fairly wholesome development fee. Much more dramatic, automotive royalties had been up by triple digits, 178% between 2023 and 2022, and even inside 2023, automotive royalty revenue greater than doubled between the third and fourth quarters of this yr. As a lot of you already know, Ferrari launched an all glass roof of their new offered out four-door Purosangue.

If you need a glass roof on this automotive, IT should have SPD-SmartGlass in IT. You do not have a selection. Gross sales began in Q1 2023 for our licensees supplying Ferrari, and greater than tripled between the primary and third quarter of this yr, after which unit volumes greater than doubled once more between the third quarter and the extra not too long ago reported fourth quarter.

And we count on continued development within the Ferrari program based mostly on this pattern and likewise based mostly upon larger SPD movie orders at Gauzy for 2024 from our licensee that is supplying Ferrari. We additionally count on larger automotive royalties in 2024 based mostly upon new merchandise and fashions, together with the one from Asia and a few new fashions to be produced in Europe.

With that, I stay up for answering your questions, and we’ll take a number of the ones which were emailed to us first. To begin with, thanks Jared A. Jeff Okay, Jeff H, Chuck M, Bob P, Robert B, Steve A, and John Nelson to your questions, and likewise thanks to your variety phrases concerning the security of Gauzy, whose operations have fortunately not been disrupted by the conflict in Israel and are all secure. To save lots of time and to have the ability to cowl extra floor right here immediately. I’ve answered many of those questions in my presentation.

I’ll handle a few of them additional in my closing remarks, and naturally, if I do not absolutely reply them within the curiosity of time, please observe up with me by e mail. So listed here are a number of the further questions that had been emailed to us, and in some instances, I am combining a number of associated questions into one. Joe, are you able to touch upon the lawsuit that was introduced in opposition to Analysis Frontiers, Gauzy, and Imaginative and prescient Techniques in Florida?

Properly, this was not too long ago resolved, and IT was a complete victory for us. The Federal Court docket threw out all of the claims in opposition to our firms. Nevertheless, even previous to this submitting, we’ve got at all times maintained that IT was a lawsuit that by no means ought to have been introduced, and that this was as a result of there was, after all, no infringing or different improper exercise. However extra considerably for the long run was the truth that the courtroom agreed with us as to the impact and validity of the availability that’s in all of our license agreements in a single kind or one other, that provides us a license again within the good glass associated mental property of our licensees when their license terminates or expires.

The truth that this provision was blessed by the courtroom is a major precedent. This provision principally says that if a license settlement ends for any purpose, Analysis Frontiers and thru us, our licensees will get the appropriate to make use of the invention and enhancements developed by our licensees referring to good glass. This has resulted within the enlargement of our mental property portfolio. And from an financial standpoint, this ruling additionally has significance as a result of the courtroom awarded us sanctions in opposition to the lawyer and regulation agency that introduced the swimsuit for his or her conduct on this case. Our not too long ago filed proof of damages places this quantity at over $600,000 at the moment.

One other query, we’ve heard nothing on the event of black particles. Is that this nonetheless a risk, and does IT provide a higher alternative?

Thanks, Jeff [ph]. Properly, thanks, Jeff, for the query. We, in addition to Gauzy have been actively working all through the years to develop a extra colour impartial type of SPD apart from the present blue particle. And we’ve got achieved this in the best way that current supplies are fabricated. However we’d like to additionally change the particles themselves utilized in our SPD movie to do that.

And we’ve made nice progress at Analysis Frontiers. And I can’t converse for Gauzy, however our progress will definitely profit them. So keep tuned on that. And to reply your different query, once we are profitable with a brand new particle, IT definitely would additional improve the markets and alternatives for our SPD-SmartGlass. New product enhancements at all times try this. Nevertheless, you’ll be able to see from our outcomes of operations reported for 2023 that the present blue coloured SPD can also be gaining nice traction throughout a number of industries and for brand new makes use of.

We’ve mentioned numerous thrilling matters to this point immediately, and I’ll now ask our operator, Paul, to open up the convention to any further questions folks collaborating immediately may need had that haven’t already been coated.

Query-and-Reply Session

Operator

Thanks, Mr. Harary. [Operator Instructions] And our first query comes from Ted Campbell, a Non-public Investor. Your line is open.

Ted Campbell

Hey, Joe, how are you?

Joe Harary

Ted, IT’s nice to listen to from you. I hope you’ve been effectively.

Ted Campbell

I’ve been effectively. Thanks for asking. IT’s at all times a pleasure speaking with you. And I simply needed to congratulate you on a pleasant fourth quarter, a very nice fourth quarter, and an improved 2023. IT’s nice to see the rise in revenues for each of these, however particularly this fourth quarter. Is that one thing you assume we’re going to…

Joe Harary

Sure. I imply thanks, Ted. I can’t take full credit score although. IT’s a crew effort amongst us and our licensees, however we’ve all labored laborious, and I’m actually happy with IT as effectively. However thanks for that.

Ted Campbell

I do know that. I recognize all people’s laborious work. However is that this improve in revenues, particularly within the fourth quarter? You assume that’s one thing we will construct on within the 2024, or was this like a one-time occasion within the fourth quarter?

Joe Harary

I feel based mostly on the traits that we’re seeing, I imply numerous that was attributable to Ferrari approaching Board with their all glass roof, utilizing our Technology. And based mostly on the movie orders for 2024 by the licensee that’s supplying Ferrari, I count on that to truly develop fairly a bit within the coming yr. So sure, I don’t assume IT’s a one-time occasion.

Ted Campbell

So that you assume this…

Joe Harary

IT’s not a one-time occasion. Yeah, positively. We’ll construct on IT. Plus, we’ve got a automotive approaching Board from Asia that everyone’s fairly enthusiastic about that’s extra of a medium sized automotive. After which additionally a pair extra vehicles which can be being produced in Europe that will likely be new introductions for SPD. So, sure, I feel that we’re going to do fairly effectively within the coming yr.

Ted Campbell

Sure. I’m excited concerning the upcoming fashions. However I additionally favored your feedback on the retrofit market. I’m actually trying ahead to revenues coming from that.

Joe Harary

I feel IT’s a sport changer, and I recognize you choosing up on that. Proper now, in case you needed to place a wise window in a constructing, you bought to take out the glass. And in case you’re on a constructing that has a couple of or two flooring, it’s a must to put up scaffolding, which may be very costly and disruptive to the retail shops on the bottom flooring and issues like that.

So this retrofit resolution permits you really to put in good home windows from the within of the constructing. And also you don’t should put up scaffolding, you don’t should get landlord approval. You don’t should do numerous issues that may both add to the price or improve the delays in getting a system in. And we’ve seen installations of this method the place you are available over the weekend and do IT, so that you’re in all probability not even disrupting the workflow in an current workplace.

Ted Campbell

All proper. Properly, I don’t need to hog anyone else’s time asking questions, however IT’s at all times good speaking to you. And thanks once more and to all people at Analysis Frontiers and Gauzy for all of the laborious work you place in.

Joe Harary

Thanks, Ted. Respect IT very a lot.

Ted Campbell

All proper. Have a superb one.

Joe Harary

You, too.

Operator

Thanks. Our subsequent query comes from Alan Ginsberg, Non-public Investor. Your line is open.

Alan Ginsberg

Sure. Hello, Joe, how are you?

Joe Harary

Hey Alan, how are you?

Alan Ginsberg

I’m high-quality. Final name, you talked about Hitachi in passing, however I’ve heard nothing since then. Is there something occurring there, which could lead us to imagine that they could once more be a part of the manufacturing course of right here?

Joe Harary

I feel you haven’t seen the final of Hitachi’s Technology. I feel that a part of this I’ve to defer till a time when that might be extra absolutely introduced. However IT’s good for the business.

Alan Ginsberg

So that you assume there’s an opportunity that they’re going to be reintroducing completely different merchandise?

Joe Harary

I feel you’re going to see their Technology come into {the marketplace}, maybe from completely different paths than you’ll count on, however important for us.

Alan Ginsberg

And immediately nonetheless – clearly they nonetheless have a license although they nonetheless…

Joe Harary

Proper. They nonetheless have a license. They nonetheless have a license. Despite the fact that the corporate itself was offered to Showa Denko after which renamed itself. The license nonetheless is unbroken.

Alan Ginsberg

Okay. Thanks. That’s all I needed to ask.

Joe Harary

Thanks.

Alan Ginsberg

You’re welcome.

Operator

Our subsequent query comes from Gerald Sherman of Strategic Planning Group. Your line is open.

Gerald Sherman

Thanks. Hello, Joe, query for you on the money move scenario and the present money you guys have within the financial institution. I used to be sort of beneath the impression from the final couple of calls that we had, like a four-year working room. And now after studying this final monetary that got here out, IT appears to be like such as you received a unfavorable money move of about $1 million for subsequent yr. Are you…

Joe Harary

What – sure, we even have a five-year runway. We put that within the press launch. The – what you’re seeing is sort of an accounting approach of expressing IT, which the best way they take a look at issues is, do you might have sufficient money to final you at the least 12 months from the submitting date. However in case you have a look at our MD&A piece or within the press launch that got here out, IT’s a couple of five-year runway. Now, a few of that’s money readily available.

We had $2.5 million on the finish of the yr and far decrease burn fee as we method breakeven, after which additionally anticipated revenues from the present undertaking. So I don’t know if we’re going to lift cash or not. Mercedes or Ferrari or McLaren desires to make a strategic funding, I would say, sure, that’s at all times good. Gauzy has a strategic funding from Hyundai, and that’s been very useful for his or her enterprise. So that you by no means know the place these issues can lead you. However I don’t anticipate doing an providing.

Gerald Sherman

Okay. All proper. Nice. Thanks.

Joe Harary

Thanks.

Operator

[Operator Instructions] And our subsequent query comes from Leonard [indiscernible], a Non-public Investor. Your line is open.

Unidentified Analyst

Hey, good afternoon, Joe.

Joe Harary

Hey Leon, nice to listen to from you.

Unidentified Analyst

IT’s nice to be right here, buddy. When do you assume we’re going to be over the hump to constructive money move? Is that going to occur in 2024?

Joe Harary

I don’t know if the traits proceed, IT’s a risk. I don’t need to predict once we turn out to be money move constructive or worthwhile, however – as a result of that depends upon issues outdoors of our management. However numerous these seeds that we’ve planted during the last a number of years, you’re starting to see pop-up properly. And we’re additionally seeing sort of a motion in the direction of SPD within the automotive business, which is extra predictable for us. So I’ve a higher diploma of confidence that we’re on the appropriate path there.

Unidentified Analyst

They’re utilizing IT extra home windows then, proper.

Joe Harary

Extra home windows, and lots of people are starting to understand within the automotive business the advantages of placing this in a automobile and the shortcomings of what different applied sciences which have promised the world and haven’t delivered IT have. So I feel you’ll see that there’s much more vehicles which can be utilizing SPD than the rest, and new ones coming in or switching over from different applied sciences to us. I feel that’ll all be excellent for us and for our licensees.

Unidentified Analyst

Okay. And also you’ve had some retrofit with the federal government buildings not too long ago?

Joe Harary

We’ve had IT during the last a number of years as a part of take a look at applications to ensure that the system is dependable and straightforward to work with and straightforward to implement. And we’ve improved the system much more since these preliminary checks began. However the whole lot is transferring in a really constructive path. And I feel that’s a sport changer for architectural.

Unidentified Analyst

After which with the tax credit, IT would appear like all people, how lengthy do these final? Are you aware what number of years we will stay up for that?

Joe Harary

IT’s a reasonably difficult calculation, however I feel you may get numerous IT up entrance. So IT makes implementation rather a lot simpler. And also you by no means know with the federal government after they’re going to both improve or lower a program. They often improve them, although.

Unidentified Analyst

Sure.

Joe Harary

However I imply, IT’s good to be talked about in the identical sentences as different recognizable vitality environment friendly applied sciences like photo voltaic vitality and different issues like that. IT simply provides numerous credibility that SmartGlass generally and us particularly have made IT, received the popularity.

Unidentified Analyst

Sure. With these projections, I noticed the opposite day once more that was from a advertising and marketing firm. And so the explanation they didn’t point out you very a lot. Is IT was their purchasers that they had been making the feedback for, as a result of that’s…

Joe Harary

Proper.

Unidentified Analyst

So I talked to the analyst and that’s what he informed me, in order that’s okay. There’s – that’s why what…

Joe Harary

I don’t thoughts if anybody will increase consciousness of SmartGlass. I’m so assured in our efficiency. And as you’ll discover, in all probability the prices have come down pretty significantly, to the purpose the place we will get into the mid degree vehicles, which tells you one thing. And due to that, IT makes us price aggressive on an actual financial foundation, not on a backed foundation like some firms do.

So on an actual foundation, we’re price aggressive and we don’t tackle enterprise. IT’s not going to be worthwhile for our licensees, however IT‘s good to have the ability to have the attention constructed out by these different firms after which take the enterprise.

Unidentified Analyst

Sure. Okay. Properly, thanks very a lot, Joe.

Joe Harary

Thanks, Lynn.

Operator

Our subsequent query comes from Artwork Brady, a Non-public Investor. Your line is open.

Artwork Brady

Hello, Joe. Artwork Brady right here.

Joe Harary

Hey, Artwork, how are you?

Artwork Brady

Good. I am simply sort of curious in case you and Gauzy have had any dialog relating to constructing of properties utilizing good glass. In different phrases, a complete home constructed out of good glass.

Joe Harary

You imply, no concrete or wooden, simply good glass?

Artwork Brady

Sure. Like, one thing like…

Joe Harary

We’ve not had that dialog.

Artwork Brady

What was that?

Joe Harary

We’ve got not had that dialog. However I am going to say that the outdated adage about folks residing in glass homes should not throw rocks with our glass. IT would defend you from the rocks and the privateness. So IT‘s potential.

Artwork Brady

I feel there are some people would go wild over IT, particularly nature lovers. And the concerns are that that is a part of the true future. As a result of if one of many automotive firms, from what I heard, was constructing a automotive out of good glass, we may really construct a home out of good glass. And I feel you guys ought to actually give IT important consideration, particularly what is going on on with interactive, potential constructing of amenities down sooner or later on the Moon and Mars.

Joe Harary

Okay, effectively, I feel we’ll go for the low hanging fruit first, however IT‘s such an enormous market that I do not rule something out. However thanks for the query, Artwork. I recognize IT.

Artwork Brady

Certain.

Operator

Our subsequent query comes from John Nelson, a Non-public Investor. Your line is open.

John Nelson

Hello, Joe. How are you doing?

Joe Harary

Good. Hey, John. How are you doing? And thanks to your query and likewise your variety phrases about Gauzy earlier.

John Nelson

Glorious. Thanks. A few questions on the Asian and European automotive tasks that you just mentioned. Are they only for involving the sunroof, moonroof? Or are in addition they any both of them concerned with shading the home windows.

Joe Harary

So one of many automobiles is only a sunroof. We’re enthusiastic about that as a result of the price of the producer is the bottom I’ve ever seen since 2010 when Mercedes began with that. So that you’re speaking a couple of pretty substantial discount in price for that. In order that’s thrilling in that respect. After which the opposite one really makes use of facet glass in addition to roof glass. However thanks for the query, as a result of that would vastly broaden the best way our glass is getting used and likewise the volumes.

John Nelson

Nice. Okay. After which relating to the retrofit resolution, I ought to say, are your licensees in place now to be taking orders?

Joe Harary

They are going to be in a number of months. A number of the information that we need to now generate with the newest and best SPD must be generated for the architects. The system itself is prepared for primetime. Now, as a part of the promoting course of, while you go to architects, they need to know all the info about vitality financial savings and reflectivity and all of the issues which can be vital to them. In order that’s being generated.

John Nelson

Okay. After which relating to skylights, are the merchandise being labored on merely the laminated product for brand new or is there retrofit product being examined for skylights additionally?

Joe Harary

Each. Each. So generally while you’re placing in a skylight, IT‘s new glass. So that you simply put in good glass there, and there is often wiring very near the place the skylight is anyway, going via the ceiling or via these areas. With the retrofit, you are able to do that additionally. So in case you needed to retrofit an current skylight with an SPD performance, we have performed that. And IT‘s really had excellent vitality traits doing that, as a result of IT additionally creates this air hole between the outer glass and the interior SPD pane.

So you’ll be able to really improve even additional a number of the vitality effectivity, since you’re not likely so involved about dropping area such as you would, like in case you put IT in your lounge on vertical glass on a know skylight, including that air hole really might be helpful. IT‘s not a lot of a detriment.

John Nelson

Okay, excellent. That is all I’ve. Thanks.

Joe Harary

Nice. Thanks rather a lot, John.

Operator

[Operator Instructions] And our subsequent query comes from August Berman, Non-public Investor. Your line is open, sir.

August Berman

Hey, Joe, how are you?

Joe Harary

Hey, Dr. Berman, how are you?

August Berman

I am effectively, thanks. Completely happy earnings day. Good.

Joe Harary

Thanks very a lot. I hope everyone seems to be as joyful as I’m concerning the numbers.

August Berman

Completely. Good to see that for certain. Simply had a few questions. First, for the press launch, IT appears to be like like there was a slight modification in a number of the language for the Asian mannequin. Has the Asian mannequin indicated IT may not be first half, 2024?

Joe Harary

They have not indicated a method or one other. I similar to to construct in a cushion, given what occurred, as a result of we had been anticipating that within the second half of 2023, and for causes unrelated to SPD and extra generally, with their sort of manufacturing and QA points that that they had with the remainder of the automotive, issues received delayed. So being a little bit cautious, that is all.

August Berman

Perceive. After which I additionally seen that IT had talked about, as a substitute of at the least one, simply referring to 1 Asian mannequin. Are we nonetheless taking a look at a number of Asian fashions or have issues modified in dialog?

Joe Harary

Issues have not modified. I simply as soon as once more, need to be as conservative as potential. And the numbers will converse for themselves and the automotive introductions will converse for themselves. And one of many issues I hope occurs is that the automotive makers will likely be a little bit bit extra forthcoming as to what Technology they’re utilizing. And in case you sort of bear in mind, when Mercedes got here out with the SLK, IT was a little bit little bit of a gross sales job, however we wanted, we needed and we impressed upon them the good thing about making the connection between the title Magic Sky Management and SPD-SmartGlass, and so they allowed us to try this. When McLaren got here out with their SPD roof, they only referred to as IT, electrochromatic, the generic time period.

And up till this yr, now you are seeing they’re beginning to seek advice from IT as SPD, which I feel IT signifies we’re extra of a badge of honor now. For some time there, they did not need to reveal what the key sauce is of their vehicles by way of what Technology they had been utilizing, however now IT‘s turn out to be a badge of honor. IT‘s like placing a BLAUPUNKT or Harman Kardon stereo system. IT‘s a badge of honor to place SPD in there.

So that you’re beginning to see extra automotive makers, I feel, and I hope, proceed to try this the place they point out us by title, but when they do not, we’ll discover a method to ensure that our shareholders know what vehicles we’re in. Like, Ferrari hasn’t talked about us as SPD in official pronouncements, however McLaren now did. So I feel the gate is starting to open there.

August Berman

Sure. No, I used to be very excited to see that after they got here out with that. And we just about appear to be in each automotive for McLaren that has a glass roof. In order that’s nice to see and hopefully, Ferrari sort of falls on the similar course of as different fashions. I simply had one different query. After I noticed the information, I used to be very excited, after which I did not see a lot observe up afterwards. And I sort of thought perhaps IT was simply due to poor timing with the 737 points. Are we beneath NDA for discussing that additional the Boeing 737 that…

Joe Harary

Sure. We’re nonetheless ready for permission to speak concerning the plane market. However I’ll say this, and also you sort of raised an attention-grabbing factor that could be useful to everybody on the decision. Individuals ought to take note of a few issues. I discussed up to now, take note of what you see in patent purposes and patents, as a result of IT‘ll inform you firms which can be working with our Technology that we won’t essentially say are working with our Technology, but additionally take note of what occurs at commerce reveals.

And commerce reveals are usually not solely a discussion board for us to fulfill key determination makers and have significant conversations with them, however there’s numerous different advantages. And at CES this yr, there was various issues that had been publicly introduced, however there are additionally some issues that we’re nonetheless ready on permission to have the ability to discuss publicly. And I am going to inform you a little bit bit about one thing that we’re nonetheless ready on permission for.

So I am unable to give numerous particulars, however I am going to give in all probability sufficient to make everybody perceive the place a few of these issues are going. One specialty automobile, for instance, at CES that is slated for manufacturing subsequent yr, and IT‘s not a automotive, integrated a novel method to augmented actuality within the windshield. And a key a part of this was made potential by a mix of clear OLED Technology by LG and SPD Technology that was produced by Gauzy. And the implementation of this was extraordinarily effectively performed. You possibly can see the vibrancy added to the augmented actuality show through the use of SPD within the windshield.

August Berman

Joe, you continue to there?

Operator

Women and gents, please stand by. We have misplaced. Mr. Harary, once more, please stand by. We have misplaced, Mr. Harary.

Joe Harary

Okay. I am again. I apologize. So what I used to be saying is, at CES, there was a specialty automobile, however IT‘s not a automotive. And IT was an augmented actuality windshield that was made potential due to the mixture of SPD movie from Gauzy and the clear OLED Technology by fortunate LG Group. And IT was extraordinarily effectively performed. And you can see the vibrancy that occurred with the augmented actuality show through the use of the SPD movie within the windshield. This product received numerous consideration generally.

And at one level, after I was on the sales space of this firm, the Chairman of their South Korean mother or father company got here to pay tribute to this automobile. And he did not know who I used to be. I used to be standing on the facet, and I used to be watching him. He even politely and reverently bowed in the direction of IT whereas I used to be there.

And IT even made the present e-newsletter because the what’s scorching at CES product on day two of the present. And whereas SPD was not talked about within the public articles about that, we’re hoping to have the ability to discuss this in additional element once we and Gauzy have permission on that. However IT provides you an thought of a number of the issues which can be very nice surprises while you go to a few of these reveals. So we pay very a lot consideration and we attempt to attend all the key commerce reveals for quite a lot of causes, together with that.

And simply so there’s no misunderstanding, although this firm is owned by a South Korean firm, I’m not referring to the Asian automotive that we anticipated in the direction of the top of final yr with SPD. That’s completely completely different and really a lot on monitor and going via its last growth levels previous to launch.

And that guarantees to be only a very thrilling undertaking, as a result of the price to the manufacture of our Technology has come down a lot as to make IT possible for inclusion in a comparatively reasonably priced automobile. And that, after all, bodes effectively for SPD-Sensible Technology being integrated in a lot larger volumes throughout the center market vehicles all through the world. However take note of commerce reveals, and I feel you’ll get some excellent Information as to what’s occurring. Sorry for that lengthy winded reply, Dr. Berman, however I…

August Berman

I recognize that. And truthfully, I feel shareholders have additionally seen only a substantial improve in simply commentary, principally by Gauzy. Simply taking a look at their social media web page, appears to be each couple of days they talked about one thing SPD. So I need to say that is the time, and I’m hoping IT is. However IT seems that issues are extra prepared than ever earlier than. And, sure, good luck to shareholders. And I feel we’re heading in the right direction.

Joe Harary

And thanks for noticing the elevated frequency of the communications by Gauzy. Like us, we attempt to say as a lot as we will when we’ve got permission. And I feel you in all probability have surmised that the frequency that we talk with Gauzy may be very usually. I imply, IT was a lot much less when IT was simply Hitachi making movie, however Gauzy has simply been an exquisite accomplice, each in making movie and in merchandise and unlocking new industries and issues like that. And so they’re very visionary and really devoted to this. And their future is betting on SPD. So we work very carefully collectively.

And so they had been in New York 10 days in the past. They’re coming again to New York. I’ve met with them in Israel. I’ve met with them in France. I’ve met with them in Germany. There’s only a wealth of alternative for our business and so they and we’re very a lot on the middle of that. However thanks for discover that they’ve turn out to be much more seen about this.

August Berman

Yep. Properly, recognize IT, Joe. Thanks.

Joe Harary

Thanks. Thanks rather a lot.

Operator

Our subsequent query comes from Mike Zelnick, Non-public Investor. Your line is open.

Mike Zelnick

Thanks. Hello, Joe.

Joe Harary

Hey, Mike. Good to listen to from you.

Mike Zelnick

And also you, too. And simply been studying your newest report that was posted about an hour in the past, and I see revenues are up 109%. That’s what we prefer to see. That’s good.

Joe Harary

I like triple digits.

Mike Zelnick

Sure. Query I’ve has to do with Boeing and Airbus. I learn the opposite day within the newspaper that each firms, and I feel another airways as effectively, each firms have obtained orders from main airways for lots of of passenger jets, massive passenger jets. What do you assume the prospects are that on these orders utilizing SPD on their home windows?

Joe Harary

I feel they’re fairly good. And IT’s an incredible query. Let me sort of go a little bit deeper into why I feel that. So if we take, for instance, the automotive market when Mercedes and Analysis Frontiers was creating the SPD-SmartGlass product for the SLK, we had blinders on. We had been simply specializing in doing the whole lot potential to ensure that Mercedes was joyful.

And IT was a superb technique as a result of we knew that in the event that they had been joyful, and so they have an excellent fame for high quality assurance and manufacturing and innovation, that everybody else would observe. And you then began to see all the opposite industries fall into place properly after that. So IT was a superb technique to deal with making your launch buyer joyful.

And as soon as IT was validated for automotive use, increasingly firms like McLaren and Basic Motors and everybody jumped on board as a result of they knew that IT was one thing they might reliably and safely put of their vehicles and the identical factor with plane. I feel one of many important issues that occurred this yr is that we’ve been chosen for transport class plane, the large ones, the large plane.

And the opposite factor that I feel is important is that we’ve gone from being pushed by producers on their prospects. That’s what they had been doing at Boeing and Airbus earlier than, to having the client determine what Technology they need within the plane. So that you now have a Technology that’s been validated, IT’s in various completely different plane and IT’s been reliably flying for many years and you’ve got one thing that performs higher than the present electrochromics which can be there.

Two second switching pace with no iris impact in comparison with a minute and a half for an electrochromic window to modify. So you might have one thing that the shoppers can see as a significantly better performing plane window and higher dynamic vary, only a entire host of issues, proper?

So we’re enthusiastic about that, as a result of when judged on the deserves, I don’t assume there’s any purpose to not use SPD in an plane. And IT doesn’t have a number of the issues that in case you go on YouTube, you can see home windows which can be heating up and catching hearth and cracking and doing issues with different applied sciences as a result of they’re extra like a battery. And when a battery will get broken, IT will get scorching. Take into consideration your mobile phone battery.

So I feel that there’s numerous issues which can be pointing in the direction of nice success within the plane business and particularly the transport class plane. So Airbus and Boeing, I feel, are important developments, and so they’re going to have legs.

Mike Zelnick

Good to listen to. Let’s hope these contacts with these two firms play out this yr. Thanks, Joe.

Joe Harary

We keep in good condition with everybody. Thanks, Mike.

Operator

Thanks. Our subsequent query comes from Bruce Denny, Non-public Investor. Your line is open.

Bruce Denny

Hello, Joe. How are you?

Joe Harary

Hey, Dr. Denny, how are you?

Bruce Denny

Very effectively, thanks. Hey, only one query. Congratulations on the whole lot that’s occurring. My query I feel I’ve requested in previous convention calls, however IT at all times looks like a no brainer to me to couple the clear photo voltaic cells with our window purposes. Has anybody ever seemed into this that you already know of?

Joe Harary

Sure. So let me offer you a few examples the place IT’s been efficiently carried out. Imaginative and prescient Techniques had an plane window that generated 20 occasions as a lot energy because the window wanted to function utilizing clear photovoltaics. And due to that, they really put a charging port so you can cost your telephone on the plane window with a USB port. With the retrofit utility that’s one thing that we’re very a lot trying into is the mixture of photovoltaics with SPD, as a result of if you concentrate on IT, you then don’t have to have an electrician come to the job web site while you’re doing the retrofit. Even in a industrial set up, you simply pop IT into the window and also you’re good to go. And we really had discussions about that two days in the past additionally about that. So, yeah, that is very a lot within the plans.

Bruce Denny

Glorious. So glad to listen to IT. Thanks a lot, Joe.

Joe Harary

Thanks rather a lot.

Operator

Our subsequent query comes from Jeff Harvey, a Non-public Investor. Your line is open.

Jeff Harvey

Hello, Joe.

Joe Harary

Hey, Jeff. How are you?

Jeff Harvey

Good. In your final convention name, you probably did point out that the automotive wasn’t going to occur till the second half of the yr. So has that modified any, otherwise you nonetheless anticipate the Asian automotive within the second half of the yr?

Joe Harary

The second half of final yr was the unique expectation, after which we principally stated, effectively, based mostly on what we all know, IT’s in all probability going to be the primary half of this yr. And my expectation is we’re very a lot on monitor. However with the whole lot else that sort of prompted the delay within the automotive that wasn’t associated to SPD. I don’t need to pin IT down an excessive amount of. However imagine me, when the automotive firm implements IT, we’re all going to be thrilled.

Jeff Harvey

So, one factor you haven’t talked about in any respect is the show market, which you talked about, I feel, final time. Isn’t there something occurring within the show market, I do know you’ve talked about earlier than?

Joe Harary

Yeah. No. So, one of many issues that we talked about up to now is home windows that integrated show contained in the glass utilizing a mix of both electroluminescent shows and Gauzy Imaginative and prescient Techniques has been doing that and issues like plane home windows and prepare home windows and bus home windows for years, after which extra not too long ago utilizing clear OLEDs with SPD movie to make a really vibrant show. And that’s what I used to be speaking about at CES, the specialty automobile that had an augmented actuality show. IT was a show that mixed clear OLEDs and an SPD movie. And IT was simply actually wonderful to have a look at. IT wasn’t solely me, however the press beloved IT, too.

Jeff Harvey

However when can we count on to see some enterprise from that?

Joe Harary

Properly, they’re speaking about that automobile popping out subsequent yr.

Jeff Harvey

No, I’m speaking concerning the show in a window, like in a division retailer.

Joe Harary

Properly, that would come out anytime. That’s only a matter of implementation and in case you have a look at sort of the frequency that LG, who’s sort of main the cost on that, has been exhibiting this. When you walked round CES, you’d see about 4 or 5 completely different cubicles from completely different firms that had clear OLEDs that had been getting used to show issues. And while you need that show to be vibrant, you’ll use SPD, particularly if there’s ambient mild that may wash IT out.

Jeff Harvey

However have you learnt that any of which have really been put in?

Joe Harary

Oh, there have been installations, however numerous that I would not contemplate excessive quantity. Prior to now, earlier than LG went into this, they did museums and all kinds of issues that had been combining this. And due to the success of that, they did extra. And now they’re placing IT into extra mainstream stuff. However IT‘s not one thing that we’ve got prediction.

Jeff Harvey

Okay, when do you assume we really get some architectural enterprise? I imply, I am very dissatisfied that that hasn’t occurred sooner, I imply as you already know.

Joe Harary

I do not know in case you heard the sooner a part of the decision, however there’s three prongs we’re going after in architectural. One is the laborious to shade areas like skylights, after which the second is authorities, and the third is conventional properties, workplaces, and flats. And the sport changer on that’s the retrofit utility. You possibly can have gross sales this yr in that in all of these areas.

Jeff Harvey

Final yr, particularly with the retrofit, makes numerous sense.

Joe Harary

The retrofit is basically prepared now.

Jeff Harvey

I reside in a home that had, I am in a local weather the place all people has skylights, and I needed to spend a number of cash to place shades up in all my skylights. So be nice if someone like Funds Blinds may carry a SPD line that you can go and get and put up and canopy your skylights.

Joe Harary

Proper. Though I do not know if Funds Blinds is the appropriate entree into the market, as a result of you then sort of have a race to the underside by way of innovation and profitability. However your level is effectively taken that SPD could be an incredible resolution for IT. And when you think about what your conventional motorized shades in a skylight would price. And likewise, in case you reside in an space the place there’s snow, you’ll be able to’t put these shades on the surface of a skylight. IT must be on the within or contained in the glass. So SPD does not have these limitations. You may put IT in any setting you need.

Jeff Harvey

So, talking of the airline business, I did see immediately that I feel United has stopped ordering new planes as a result of they do not have sufficient pilots. Properly, put IT this fashion, they’ve stopped hiring new pilots as a result of they cannot get new planes. So, I am unsure that the expansion within the airline business goes to be that nice, as a result of definitely Boeing has had an terrible lot of issues with the whole lot that they have been working at.

Joe Harary

Properly they definitely have. They definitely have.

Jeff Harvey

I hope, I imply, I do know Airbus I hope…

Joe Harary

I do not assume that is a sustained downside. I feel that IT‘s a horrible PR downside. I feel IT‘s a structural downside inside Boeing that must be addressed. However I do not assume that IT‘s a everlasting downside. So I feel that – and imagine me, there’s numerous – however bear in mind, Jeff, one factor to recollect additionally, you can retrofit an current airplane with SPD. We do IT on a regular basis. So you do not have to attend for brand new planes.

Jeff Harvey

I am shocked IT hasn’t occurred as a result of, like after I fly all the way down to the church in Caicos, the very first thing that the stewardess says is all people shut their blinds. She may simply…

Joe Harary

Proper, think about flipping a change. Yeah. Flip a change.

Jeff Harvey

Sure.

Joe Harary

Sure.

Jeff Harvey

So apart from this Asian firm, which goes to be a mid value automotive, are there another producers that potential have a mid value automotive which can be going to place SPD on?

Joe Harary

We’re speaking to them. Sure, however I feel, due to the strategic relationship that this automotive firm has with certainly one of our licensees, you are in all probability going to see them have IT first.

Jeff Harvey

Okay, excellent. Thanks, Joe.

Joe Harary

Thanks, Jeff. Good speaking to you.

Operator

We’ve got a query from Leonard Litzo [ph], Non-public Investor. Your line is open.

Unidentified Analyst

I am again. I am considering, is something occurring within the industrial market with SPD?

Joe Harary

Once you say the economic market, what are you referring to?

Unidentified Analyst

Properly, I am referring to issues like persons are doing issues with bobcats, various things round.

Joe Harary

Oh, yeah. IT‘s humorous you talked about that. When you had been at CES, you in all probability would have seen a really good bobcat. That is all I will say about IT.

Unidentified Analyst

Okay.

Operator

[Operator Instructions] We’ve got a query from Alan Ginsberg, Non-public Investor. Your line is open.

Alan Ginsberg

Sure. Hello, Joe. IT‘s a observe up query. You have not talked about something about solar visors. Has there been any progress there?

Joe Harary

Sure, there has. Nonetheless in growth, and numerous that’s pushed by when the launch buyer desires to come back out with one thing.

Alan Ginsberg

So IT‘s similar to one launch buyer must be the primary one. Is that IT?

Joe Harary

Yeah. I imply, there’s at all times the likelihood this is able to turn out to be aftermarket, and if someone does not do IT, I might in all probability simply do IT. However I’ve to additionally respect the companies and my licensees.

Alan Ginsberg

Okay. Thanks.

Joe Harary

Thanks rather a lot.

Alan Ginsberg

You are welcome.

Operator

Our subsequent query comes from Tom S [ph], Non-public Investor. Your line is open.

Unidentified Analyst

Yeah. Hello, Joe. The way you doing?

Joe Harary

Hey, Tom.

Unidentified Analyst

Sure, I used to be going to ask concerning the automotive you talked about popping out from Asian automotive there, and IT sounds constant in your phrases, and you’ve got been regular with IT, so I do have religion IT‘s coming this yr. With out revealing. I do know you’ll be able to’t reveal rather a lot, however may you give an thought on quantity? Not precisely an SPD, however even the automotive or something in any respect, is IT going to be a trim bundle or what number of we’ll get in of that quantity would have SPD?

Joe Harary

They’ve – I do know what the preliminary, we’ll name IT a take a look at market, however the take a look at marketplace for a automotive with this quantity worldwide, the quantity is fairly excessive. The take a look at quantity is larger than when Mercedes had all of their vehicles utilizing this. So even a take a look at marketplace for one thing with this sort of quantity was a major quantity. I additionally count on, although, that the royalty per automotive goes to be decrease than Mercedes, as a result of the worth of the roof to this automotive firm is decrease than what Mercedes was paying again in 2010, 2011. However IT might be important. So we’re excited.

Unidentified Analyst

Yeah, and that is good to listen to. One observe up on that. Once you say the take a look at market and the quantity and all that. So that you’re basing this take a look at market on vehicles that can have SPD, not simply is that like sort of basically a forecast of what number of? As a result of not each automotive, except IT‘s a regular.

Joe Harary

The forecast we got – proper, the forecast we got for what they contemplate a take a look at market, which I contemplate substantial quantity, is fairly important.

Unidentified Analyst

And that is the take a look at market that is forecasted for SPD, not simply the quantity of vehicles, IT‘s the forecast of SPD.

Joe Harary

Proper. These are the variety of SPD roofs which can be going to be produced.

Unidentified Analyst

Okay. And I am certain you in all probability cannot say something about if IT is likely to be or extra leaning in the direction of an choice or trim bundle or. You may’t say something on that.

Joe Harary

I do not assume they know. But when I used to be going to guess based mostly on what I find out about the best way automotive firms implement this, they prefer to put issues as an choice, as a result of that is the place they make their cash. However generally an choice generally is a very excessive share take fee. When you have a look at McLaren versus Mercedes, the McLaren take fee for SPD is big.

Unidentified Analyst

Sure, no, I am sorry to interrupt. I am conscious of that. I am simply considering trim bundle is technically an choice. There’s like a standalone choice or a trim bundle as an choice. Trim bundle could be very best.

Joe Harary

I do not know if they are going to do a trim bundle. Sure, I do not know if they are going to do IT as a part of a trim bundle or if they are going to do IT as a standalone choice, or, God prepared, in the future IT‘ll be customary tools, as a result of then you can completely downsize the dimensions of your air conditionings to be a fraction of what they’re.

Unidentified Analyst

And IT might be as a result of the ix is just about, I feel 95% or extra of the PDLC is in 95% of the IX [ph]. So that would occur, however hopefully we at the least get out of a trim bundle. I seen they began doing that in some vehicles, too. Properly, thanks to your solutions.

Joe Harary

Certain. Respect IT. Thanks for the query, Tom.

Operator

We’ve got a query from Michael J [ph]. Non-public Investor. Your line is open.

Unidentified Analyst

Hi there, Joe. I might prefer to ask to what extent is price nonetheless a barrier to having extra organizations undertake SPD, particularly the architectural one, somebody who, you already know, posted in fairly element evaluating the prices of SPD with non-SPD home windows. And IT appeared that there nonetheless was an incredible disparity and that price.

Joe Harary

I did not see the submit, so I am unable to converse to what the submit stated. However in case you have a look at, and in case you return to my earlier feedback about why we’re enthusiastic about this Asian automotive maker, the worth of the movie, the worth of the price discount from streamlining as a result of retrofit use may be important. And in case you have a look at a number of the prices that you just’re evaluating IT to, like, for instance the skylight, we’re cheaper than a skylight shade. So IT depends upon the way you analyze the market. The market goes to determine, if somebody desires IT, they are going to purchase IT. However I do not imagine in facet by facet prices except you might have a context.

Unidentified Analyst

To what extent is Mercedes nonetheless utilizing SPD of their automobiles. IT appears we do not have an excessive amount of Information relating to its adoption and different fashions. So what’s the standing of Mercedes and SPD?

Joe Harary

We’ve got an excellent relationship with the folks at Mercedes, and their title pops up on royalty studies every now and then. That is all I will say.

Unidentified Analyst

Okay. Thanks.

Joe Harary

Thanks rather a lot, Michael.

Operator

And our subsequent query comes from Seth Nickerson, a Non-public Investor. Your line is open. Mr. Nickerson, your line is open.

Seth Nickerson

Sure, hello.

Joe Harary

Hey, Seth. How are you?

Seth Nickerson

I am doing effectively, Joe. Thanks for asking. I seen on a chat board that Gauzy had posted about an MOU with LG again in January. I used to be questioning when….

Joe Harary

Sure, they’ve had, once we had been speaking about clear OLED shows, that is LG, offering, they’ve a novel Technology, which is a clear type of OLED. And simply to sort of go, what’s beneath that? So there’s OLED shows on the market, and usually they’re what’s in your tv on the wall. A clear OLED means that you can really put that on a transparent substrate, like a chunk of glass, like a window. So the thought is you’ll be able to flip a window right into a tv, but when you concentrate on the optics of that, when you’ve got that window face with daylight coming in from behind IT, IT‘s going to clean out the picture.

So in case you now mix that clear OLED with an SPD movie, you might have the power to activate the OLED, to show the window, if you’ll, right into a tv and block the ambient mild through the use of an SPD movie. So rapidly, you go from having a washed out tv picture to a vibrant, clear one. After which for instance you need to flip that window, that tv, again into a transparent window. You’ll clear up the SPD movie and switch off the OLED, and you’ve got a transparent window. In order that’s the thought. IT‘s fairly outstanding while you see IT in follow.

And as I discussed, once we had been at CES, there was flat panel shows that had the mixture clear OLED and SPD movie at Gauzy’s sales space and elsewhere. But in addition that they had an augmented actuality windshield, the place think about a chunk of building tools, for instance, and superimposed on the windshield was the place all of the gasoline and electrical traces had been on the positioning that you just’re digging. So you can see, as you are digging, the place the areas that you must keep away from are.

Properly, in case you’re on a building web site and there is daylight, IT could also be laborious to learn what’s in your windshield. So now, with the mixture of SPD and clear OLEDs, you can see fairly clearly the place the traces had been, the place the gasoline traces had been, what to keep away from. IT was really sort of cool too, as a result of they’ve exterior cameras on these building equipments, and you may really, with a gesture of your hand, transfer the show over to the facet. So for instance you are digging, and also you need to see the place you are digging. You’d have a look at the digital camera, as a result of generally there’s blind spots, and the digital camera would show you how to. However for instance IT‘s getting in the best way of you doing all of your job. You simply sort of simply contact the display and swipe IT to the facet. And IT‘s very very like minority report, the place you’ll be able to simply play with these items in actual time.

So IT was fairly outstanding. And LG and Gauzy have been working collectively on this mix for fairly some time. And I had inspired them to try this as a result of we noticed that there was some actual traction in that market.

Seth Nickerson

I used to be watching the LG CES factor, and at 32 minutes, they introduced out their T OLED, and so they had that foolish [ph] black display come up from the underside. And I bear in mind what Gauzy had. IT appeared like the reply.

Joe Harary

Proper precisely.

Seth Nickerson

I am simply shocked with the inventory languishing like, under a greenback at occasions, that you just would not make a press launch about that?

Joe Harary

Sure. Seth if we may make a press launch about issues, we definitely would. Lots of occasions, we’re particularly requested to not or not now, and it’s a must to respect the client.

Seth Nickerson

True. Okay. Thanks.

Joe Harary

However Gauzy and I might love nothing greater than to have the ability to discuss that.

Seth Nickerson

All proper, that is all I’ve received. Thanks, Joe.

Joe Harary

Thanks rather a lot.

Operator

And see no additional questions. I am going to flip the decision again over to our host.

Joe Harary

Thanks, Paul. And bear in mind, if we have not absolutely answered any questions that had been emailed or requested immediately, simply e mail us and we’ll do our greatest. A pair closing remarks this previous yr has been transformative for Analysis Frontiers marked by monetary development, strategic expansions and modern breakthroughs and new makes use of for SPD SmartGlass Technology. And as we glance ahead, we’re dedicated to persevering with this momentum, bettering the best way folks reside, work and get round, and enhancing our international impression.

Prior to now yr, Analysis Frontier has achieved important accomplishments, together with 109% improve in revenues and a discount in price, transferring us a lot nearer to profitability. The corporate solidified its market management within the good glass business, expanded its collective international footprint, and diversified its product purposes throughout automotive, plane and architectural sections, in addition to augmented actuality and different superior makes use of of SPD SmartGlass Technology.

Different notable achievements embody the introduction of SPD Technology in Boeing and Airbus plane and the event of the SPD SmartGlass retrofit resolution and triple digit share development in automotive royalties. Just a few weeks in the past, the market analysis from agency SNS Insider reported that within the good glass market, quote, the transportation utility section holds a substantial market share of round 48% in 2022, pushed by automakers inclination in the direction of adopting SPD glass, particularly in luxurious vehicles.

Properly, first let me say good to have our Technology precisely and particularly talked about by title because the chief within the automotive good glass market. And as we famous, their conclusion concerning the dominance within the transportation part held true not solely in 2022, however based mostly upon the numbers we simply reported for 2023 as effectively. And in 2024 and past, there could also be new markets for SPD that dwarf and construct upon our present ones. We and our licensees will relentlessly pursue these alternatives as effectively. All of us have an incentive to try this.

This previous yr, we’ve got gotten into each Boeing and Airbus plane for the primary time. We have additionally expanded various automotive fashions, from first Mercedes after which to McLaren, after which to Basic Motors after which to Ferrari. We’re trying ahead to an upcoming introduction in Asia for the center market, in addition to SPD SmartGlass being launched in new vehicles produced in Europe.

Our focus has been, and can proceed to be to assist our licensees introduce new merchandise into markets, which implies laborious and coordinated work to fulfill the timeframe of current prospects, and likewise to introduce and always push new merchandise throughout the end line.

All of that is with one objective in thoughts, rising income and changing into considerably worthwhile. We’ve got made large progress over this previous yr considerably rising our revenues and transferring nearer in the direction of profitability. With the sturdy development we’re seeing in automotive purposes, our enlargement into main plane producers like Boeing and Airbus, notably via choices to make use of our Technology by their prospects, and the big potential of the architectural market, we’re effectively positioned for continued income development in 2024 and past.

Our strategic partnership with Gauzy has allowed us to extend manufacturing efficiencies, scale back prices, ease logistics and broaden our product choices and enter into new merchandise and purposes. Our collective international presence provides us an vital aggressive benefit. The lawsuit victory we achieved helps solidify and validates the mental property place we have constructed over a long time of analysis and growth.

The Federal Court docket’s ruling on the licensee IP provision in our contracts is a major precedent that strengthens our mental property portfolio and provides worth to what we will do for our licensees. We proceed to make developments to our SPD Technology, together with creating colour impartial particles that may additional improve the aesthetics and market alternatives. Product and market innovation stays a key precedence.

With rising vitality prices, authorities incentives for vitality environment friendly buildings, and rising demand for person controllable tinted glass, the market outlook for good glass stays extraordinarily promising throughout the automotive, aerospace, architectural and different sections. And now extra actual world examples have been virtually demonstrated to indicate how our SPD good Technology can be utilized in new purposes corresponding to adaptive headlights and heads up shows corresponding to those that BMW developed and demonstrated finally yr’s CES and the augmented actuality shows at this yr’s CES. Wanting forward, we’re poised for even higher success.

Our strong pipeline of latest merchandise and applied sciences guarantees to revolutionize the best way SPD SmartGlass impacts our day by day lives and the setting. Analysis Frontiers is the clear innovation chief and probably the most diversified participant within the good glass business. Our patented SPD good Technology supplies confirmed efficiency benefits over opponents.

We’ve got constructed a world licensing community and portfolio of leading edge merchandise that had been utilized in 2023 was a yr of considerable progress, and we’ve got positioned the corporate for accelerated development and monetary success within the years forward. We stay intently targeted on execution, innovation and driving shareholder worth. We stay dedicated to considerably pushing the boundaries of what’s potential and enhancing shareholder worth within the course of.

Our journey collectively continues and I am enthusiastic about what the long run holds for Analysis Frontiers and our stakeholders. Thanks to everybody who has contributed to our journey to date. Your assist, dedication and perception in our imaginative and prescient and mission have been instrumental in our success.

I stay up for working collectively to attain our objectives and set new and extra bold benchmarks within the years to come back. Thanks.

Operator

That concludes immediately’s convention name. Thanks for attending and have a pleasing day.