Participants

Joe Harary; President & Chief Executive Officer; Research Frontiers Inc

Jeff Harvey

Michael Forrester

Chuck Michaels

Avi Gross

John Nelson

August Berman

Alan Ginsberg

Alan Yakuboff; Analyst; Kingsview Partners

William Brazzel

Presentation

Operator

Good afternoon, and welcome to Research Frontiers investor conference call to discuss the fourth quarter and full year 2024 results of operations and recent developments.
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 shareholders on this call.
Some statements today may contain forward-looking information identified by words such as expect, anticipate, and forecast. These reflect current beliefs and actual results may differ materially from those expressed due to various risk factors, including those detailed in our SEC filings. Research Frontiers assumes no obligation to update or revise these statements.
Today's call is in listen-only mode, with a Q&A session to follow. (Operator Instructions)
The call is being recorded, and I will be available for -- and will be available for replay on Research Frontiers' website at smartglass.com for the next 90 days. If you find that your questions has been substantially answered as a courtesy, and to allow time, for other shareholders to ask their questions. (Operator Instructions)
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 Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

Joe Harary

Thank you, Paul. Hello, everyone, and welcome to our fourth quarter and full year of 2024 investor conference call. First of all, we've been asked by our largest shareholders to try to make these quarterly calls shorter and more focused, so we'll try to do this with your help. And my remarks today will be relatively brief, and it's certainly easier to keep things short when the news is good.
Let's start with our financial results. Revenues were up 47% to $1.336 million. This was an increase of $426,000 in royalty income over last year. This was driven by a 48% increase in royalties from the automotive market and an increase of 57% from aircraft. Total expenses this year were down more than $165,000, which is a 6% reduction in an inflationary environment.
Our expenses are the lowest they've been since 1996, and we have focused on operational efficiency consistently throughout the year. The total improvement in our bottom line this year was $597,000, and this gets us clAlan Yakuboff oser to profitability. Our net loss for the entire year was $0.04 per share compared to $0.06 per share last year. This is the lowest annual per share loss since we went public 38 years ago.
Moving from our income statement to our balance sheet. We had $2 million in cash as of the end of 2024 and working capital of $2.5 million. Cash went down by $482,000 for the entire year or an average of $40,000 per month. Our burn rate is much lower than ever before. We have no debt and sufficient working capital for more than the next five years. Both our domestic and foreign patent portfolios currently extend to 2037.
Moving now to highlights from our business this year. 2024 marked notable growth in our Ferrari business and McLaren business as well as the introduction towards the end of 2024 of the Cadillac CELESTIQ with its amazing SPD SmartGlass roof. SPD remains a highly popular chosen option on the Ferrari and the Ferrari Purosangue and multiple McLaren car models and is standard equipment on the Cadillac CELESTIQ.
Commercial airlines have begun to put SPD in their cabin windows, most notably in both Boeing and Airbus aircraft as decision-making has moved from the OEMs to their airline customers. We also have steady business in small, medium and large VIP corporate jets as well.
We see the growth coming from the addition of new vehicles in 2025. Some of these were expected in 2024, but the launch of the entire model was delayed for reasons unrelated to our SPD SmartGlass.
We are also working on major high-volume projects for 2026 and the volumes for these projects could dwarf anything that we or Gauzy have spoken about publicly to date.
We also expect that you'll see the introduction of more architectural projects this year, both with the traditional method of replacing the glass with SPD SmartGlass and also retrofitting SPD SmartGlass to the inside of homes and buildings to make the building envelope smart. No one else out there can retrofit smart windows.
This retrofit application promises to make it less expensive and less disruptive to building occupants to convert existing buildings from having ordinary glass to SPD SmartGlass and will speed up the sales cycle considerably.
Our licensee with this patented retrofit system has built an impressive manufacturing facility with high capacity supporting this retrofit application. Next year, we can see market expansion from other areas as well.
Let me now speak about the recently announced Black Particle, which many of you have asked about. This is something that the smart glass industry has sought for decades. We and Gauzy have had sustained efforts on this, working together since day one. And even prior to Gauzy becoming a licensee, Research Frontiers has been searching for the right materials for decades.
It might be helpful now for me to explain a little bit about the physics behind SPD technology. There are nanoparticles that are randomly suspended in capsules filled with special polymeric and non-polymeric liquids. When an electric field is applied, these special particles line up and allow light to pass through. When they are unpowered, they naturally return due to browning motion to a random state that blocks light.
The current particle appears blue because they are very, very efficient at blocking all areas of the visible spectrum except for blue light. And that is why when you have an SPD window inside, it will look black because there's very little blue light in interior lighting. But when you move that same piece of glass outside, the blue light in daylight is the only area of the visible spectrum that is transmitted, and that is why SPD windows appear to be sapphire blue when it's outdoors and you're looking through it. This is where the significance of the Black Particle comes in now.
So if we could also block blue light in this process, the window would appear gray or black. And I want to reiterate that black SPD that has been shown behind closed doors at Gauzy's booth at CES in January were R&D samples. And even though they were R&D samples, they had an impressive range of light transmission and other optical characteristics. More work needs to be done to refine things, and we are making excellent progress.
Now speaking from decades of experience, we know that there's a big difference between being a black particle, having it stay black when it's put into a liquid suspension and then putting it into a film. The samples at CES accomplished all of these things beautifully. They were very well received by the special customers who saw it.
The next step is going from R&D samples to engineering samples. These would be closer to the final product. After the current engineering sample stage, we then go into mass production. I've been asked how long does it take between the engineering sample stage and mass production stage, and that's relatively easy to explain. The SPD film coater that Gauzy has near Stuttgart, Germany has been designed to be quite flexible in how it's configured. That means that almost every relevant variable that you can think of between film coating width, SPD emulsion coating thickness, line speeds, et cetera, can be adjusted in mass production on the existing line.
The specially designed coating head itself on Gauzy's SPD film coater is also capable of handling many different materials. If the final engineered materials are close in reology, such as viscosity and flow characteristics to the current SPD emulsion using the blue particle, the mass production of the black particle SPD film can happen very quickly thereafter.
Typically, there are some adjustments that are always made whenever you change a material that you're coding and the production experts at Gauzy and at Research Frontiers are quite adept and experienced at doing this.
Now from a market perspective, the black particle is a nice alternative to the current one, but is by no means a necessary item. The current blue particle also can be made to look black or gray with post-production steps after the film is made. And in areas like sunroofs or skylights where you're looking up at the sky, the sapphire blue color may actually be preferable.
For areas like side windows in cars, planes and homes and offices, black or gray may be preferable, and those are the primary areas where we believe that the black SPD can result in a meaningful market expansion beyond what we're doing now. Once again, this is not a necessary condition to commercial success, but it is extremely desirable and can expand the markets for SPD glass, as I explained, something that the SmartGlass industry has been trying to do for decades.
We have said that we can at this point and at the joint -- we've said what we can at this point and the joint announcement that Gauzy and Research Frontiers made at CES is the extent of what we could talk about at this time, especially on an open call where competitors to our licensees have access, but stay tuned.
With that, I look forward to answering the questions that I've not already answered in the course of my presentation. I'll read some of the additional questions that were e-mailed to us. And I'm, in some cases, combining several questions into one. One question is, I'd like to know where our income comes from, Asia, Europe, the United States, et cetera. So most of – and Rod, thank you for that question. Most of the revenues and the sales are occurring in Europe and in South America from the licensees there. We do have also licensees headquartered in Asia with production both there and in Europe and of course The United States. So, you have a mix around the world of production and that mix may shift more demonstrably towards The United States as the architectural application comes online and also as new cars that may be domestic come online as well.
We go to the next question here. Judy asks, I’m hoping for the best, but expecting the worst. If the administration goes ahead with its planned 25% tariffs on Canadian and Mexican auto parts, can you indicate if the retail price of the SPD pipeline vehicles will be affected? No, I don’t expect that this is going to have a meaningful impact on our revenues based on these tariffs. And thanks for the question, Judy. First, that as a former economist at the US Central Bank in the 1980s, my personal view is that free trade is usually the best solution. However, that only works when there’s a level playing field. And I think the tariffs are meant to create that, as well as address border security and the flow of fentanyl into The United States.
My guess is that if these other countries handle the border security and fentanyl issues, the tariffs will revert back to where they were. And to answer your specific question, I don’t believe that these tariffs will have a significant impact on our automotive and other business.
Over the past few decades, there have been high import duties in some areas of the world on cars, for example, and that market typically is not affected mostly in the premium car area. So tariffs will have an effect, we believe, on less expensive cars that are more price sensitive. But I do not believe that it will affect our business or our revenues meaningfully.
John Nelson asked, are there any design ins for LTI’s architectural retrofit product that you can talk about? Yes, we have double government projects and some commercial projects that we are targeting and focusing on right now, and I’m actually meeting next week with them about it.
And the other question was indications that Ferrari and your other car customers could expand usage to windshields or windows. And yes, 2025, I believe, will show SPD and other areas of the vehicle besides just Sunroof’s job. So thanks for that question.
Jared Albert, some of the questions we’ve already answered, but any real world indication that there’s room for SPD in a PDLC sunroof world outside of the super expensive aspirational kind of vehicles and the timeline for the architectural retrofit?
Well, I mentioned that we expect the retrofit to generate revenues this year. And in terms of your question about cars that use PDLC, first of all, we are working with carmakers that are not the super expensive ones that you referred to in your question. So yes, we do expect that there is plenty of room and probably a preference because I think the automakers are beginning to see based on what we’re talking to them about that the PDLC sunroofs are not doing the job that they anticipated in terms of blocking heat and glare inside a vehicle. So, very much so, I believe that, if anything, those PDLC sunroofs are already wired for SPD as far as I'm concerned, and there'll be a lot more cars like that using it.
Okay. Well, we've discussed a lot of the questions so far that have been e-mailed to us. I'm going to ask our operator, Paul, to open up the conference to any additional questions people participating today might have that we haven't already covered.
And in the interest of time, please try to keep them limited to questions of general interest. And if you want to get into more specifics, we could certainly do that by e-mail or calls offline.

Question and Answer Session

Operator

(Operator Instructions) Jeff Harvey, an investor.

Jeff Harvey

Hi Joe. First of all, the fourth quarter was about half the third quarter. What was the reason for that?

Joe Harary

A lot of our revenue comes from automotive and a lot of carmakers cut production in the fourth quarter to clear out what's on the factory showroom for the next year.

Jeff Harvey

Okay. Given the fact that you've gotten some airlines to put the windows in and Gauzy announced last time that's 50,000 cars or something. The problem we have as an investor is nobody knows about this company because neither you nor Gauzy have been able to put out any press releases about new business.
I mean, what can we expect going forward this year to let people know about Research Frontiers because there certainly aren't any analysts that are going to follow this company until there's something that's worthwhile for them to take a look at.
And I mean, we've been stuck in this mode for a long time and I realize that you have legal obligations with these companies. But can we expect if you get an architectural contract that you could announce something like that?

Joe Harary

Thanks for the question.

Jeff Harvey

I'd like to see you go to some investor conferences and talk about your company.

Joe Harary

Right. Well, we will start to do that and we've been lining some up. But getting back to your original point about trying to say things about projects. Obviously, we have to defer to the request of the customers, but we've been pretty good at getting information out.
We talked about Ferrari for the last two years before the car was even introduced. with McLaren and Mercedes and Cadillac, in some cases, they've done the talking, in some cases, we have. And Gauzy and Research Frontiers have it in our best interest to announce what we can. So, we've been working together on that as well. But thank you for the question.

Jeff Harvey

(inaudible) as much as you can.

Joe Harary

Thank you. We will. We want to do that, too. It makes it easier to sell more cars later, too.

Operator

Michael Forrester, an investor.

Michael Forrester

Yes. My question has to do with the black SPD developed by Gauzy and I guess, Research Frontiers. Is Gauzy going to apply for a patent or is Research Frontiers going to apply for a patent on that black particle SPD?

Joe Harary

Since a lot of this work was done jointly, we obviously want to have as strong a patent protection as possible. But I'm not going to talk on an open call about IP strategy because most companies will do a combination of both, and that's probably no exception here.

Michael Forrester

Well, the history, as I see it, is that the SPD film is part of the -- what Gauzy refers to as solar-powered smart glass.

Joe Harary

That's different. that's different. Solar-powered smart glass is the combination of photovoltaics with smart glass. So that would apply to any type of smart glass that they make, PDLC or SPD. It was demonstrated at CES. We've had other licensees develop a combination of transparent photovoltaics and SPD. And because our power requirements are so low, it's very feasible to do that. And some of the retrofit applications are also using some proprietary systems to make these things self-powered. So if you think about what that means in a retrofit, you may not need an electrician to ever come to the site. You just pop this into the into the window frame and you're done. So it's going to be an exciting time.

Michael Forrester

Yeah. You mentioned that the patent expiration is 2037, which is only 12 years away. -- when is...

Joe Harary

Yeah. And we always have new things coming online.

Michael Forrester

When is the last time Research Frontiers applied for a patent?

Joe Harary

We have a pretty extensive patenting effort. So we spent quite a bit of money protecting.

Michael Forrester

Most of them are before the year 2000.

Joe Harary

Michael, I'm not going to go into IP strategies. Sometimes you protect things with trade secrets and sometimes you protect it with patents.

Michael Forrester

But I asked a specific question. When is the last time Research Frontiers.

Joe Harary

I'll have to look that up. We have things in the works, too.

Michael Forrester

All right.

Joe Harary

Thank you.

Operator

Chuck Michaels, an investor.

Chuck Michaels

Yes. Hi, Joe.

Joe Harary

Hey, Chuck.

Chuck Michaels

On your website, I looked on your website and I saw financials for the year, but I didn't see this year versus 2024 versus 2023, but I didn't see anything for the last quarter. Do you have quarterly financials somewhere I can look at?

Joe Harary

No. So the 10-K only reports yearly. You can derive the quarter from those numbers and comparing it to the nine months. But the 10-K and the financial press releases have to follow a certain format according to the SEC. So that's what we did.

Chuck Michaels

I see. So can you tell us what the loss was for the quarter?

Joe Harary

It was lower than last year this quarter.

Chuck Michaels

But can you tell us what it was?

Joe Harary

I'd have to look it up because we don't break it out that way. But if you want offline or you could derive it, you could derive it from comparing the nine-month loss and the 12-month loss

Chuck Michaels

Okay.

Joe Harary

To subtract one from the other. Our loss per share was $0.04 for the whole year, though, which is the lowest it's been since we went public.

Chuck Michaels

Yes, I saw that. That's great. Also, I had a question -- you had mentioned some hopefully, rather large sales coming through in 2026?

Joe Harary

Right.

Chuck Michaels

How confident --

Joe Harary

That's not to say, we won't have -- yes, that's not to say we won't have large sales in 2025. But in the context of what I said, what we're expecting in 2026 may dwarf anything we've ever talked about or Gauzy has ever talked about.

Chuck Michaels

Yes.

Joe Harary

And by the way, they have their conference call on Monday, so I urge everybody to listen to that as well. I'm looking forward to it.

Chuck Michaels

Right. I am as well. Okay. So how confident are you on the timing on that? Do you have any -- give us any information with regard to that?

Joe Harary

Well, I've mentioned it on the call, which means I'm relatively confident that what I say on these calls is going to happen. It doesn't always happen. I mean, we had the CEO of Ford announced on CNBC that our glass was going to be in the Lincoln Continental and it didn't. So, sometimes things happen between the cup and the lip. But for the most part, they happen on the -- in the way that we expect. Not always on the timetable, though.

Chuck Michaels

Right. I understand. And likewise, I know you've mentioned a number of quarters about a car -- one or more cars coming out in the near future, and they don't seem to come out either. I don't know if that was the Lincoln or if that's something else.

Joe Harary

No, no, this is something else. The Lincoln was many years ago when that -- when they were rebranding their car. Yes. We expect these cars to come out, like I said earlier in the call. They just -- they were delayed past 2024 when we thought they were coming out, but not because of SPD.

Chuck Michaels

Okay. All right. Thank you very much.

Joe Harary

Thanks so much, Chuck.

Operator

Avi Gross, an investor.

Avi Gross

On the topic of tariffs, royalty of like 10% or 15% paid sometime on top of the tariff or not? Like if you're shipping a module to a car company abroad.

Joe Harary

So typically -- and that's a great question, Avi. Thank you for asking it. So all of our license agreements have a definition of net selling price. And the net selling price is basically the revenues minus some minor things, but it's basically revenues. It's not profit. And you do exclude out things that don't go into the licensee's pocket, like, for example, shipping costs and things like that.
But -- and when you get down to tariffs, you would exclude taxes and sales tax and tariffs and things like that from the calculation of the royalty. However, there's a sub-limitation that limits how much they can deduct for all of those things I just mentioned. So if you add up shipping costs and tariffs and other things, if they go above a certain level, the licensee cannot deduct that from the calculation.
So if we're talking about a 25% tariff, a very small piece of that is going to be deducted, if any. So like I said, they're not going to affect our royalty. It may affect at the lower-end cars, how many cars are sold in general. But when you're in the premium market.
And let me give you a simple example. In China, for example, which was the largest market for Mercedes and BMW and Audi, the cars would typically sell for a multiple of the MSRP, not because necessarily of tariffs, but because the distribution was set up to create certain market leverage so they could command charging a lot for these cars.
And they still sold very well. So at the high end, I don't expect there to be much movement in terms of what the tariffs are doing. And I also -- as someone that's a student of politics and a student of economics don't think they're going to be that long-standing. I may be wrong. I don't want to make the same mistake and say they're transitory that they said about inflation because that didn't happen. But I never said that either, and I never believed it was. But in this case, I do believe that they will be somewhat more temporary than people expect. Hope that answers your question?

Avi Gross

Thank you.

Operator

(Operator Instructions) John Nelson, an investor.

John Nelson

Hi, Joe, a couple of questions. First, one that I always ask is any progress on the Sun Visor development?

Joe Harary

There is both on the OEM side and in the aftermarket side, but I have to leave it to the licensees to continue their work, work with their customers and get the product out. But it's something I believe a lot in.

John Nelson

Okay. Understood. And up in the commercial jet market is Embraer. Have you -- do you have any contacts with them? Are they aware of your product?

Joe Harary

Yes, very much so, very much so. Matter of fact, some of the early expansion that our licensee in the aircraft market, Vision Systems had done from being just European-based to being worldwide was because of Embraer. So -- and their transport category, regional jets are great.

John Nelson

Yes. And do you expect any of the new vehicles for 2025 to be in the middle market for cars?

Joe Harary

Yes. Yes, I do.

John Nelson

Okay. Good. And then just lastly, last conference call, you mentioned work on Holy Grail patents. Are they related to the black particle? Or is this something...

Joe Harary

Well, black is certainly the Holy Grail. And when I talk about that, it's what the whole industry has been trying to get. So we're very excited about the black particle. We're experienced enough to know that we showed at CES was remarkable. I mean, if you saw this up close in personal, you would be extremely impressed with it. But we have to go through the -- from R&D sample stage to engineering sample stage to mass production. And assuming the viscosity and the flow characteristics of the emulsion are similar to the blue, I don't want to minimize it, but it may be simply as easy as pouring more -- different material into the bucket and coating it. There's always adjustments. So I wouldn't expect that to be what really happens. But it shouldn't be that difficult of a material to translate up into mass production.

John Nelson

Good. Very encouraging. That’s all are my questions. Thank you very much.

Joe Harary

Thanks John.

Operator

August Berman, an investor.

August Berman

Hey, Joe, how are you?

Joe Harary

Hey, August. How are you? Dr. Berman, I must say.

August Berman

Calling -- just wanted to see with regards to the 2025, are we talking about introductions? Or do we know -- it's more about revenues from the new vehicles?

Joe Harary

I kind of equate them for the following reason. In the early days, there would be several years lead time between when an automaker wanted to think about putting SPD Smart Glass in a vehicle and when they would put it in, because there was testing. Mercedes went through what they told me, EUR5 million of testing and built special chambers and now they use it on all their materials.
But in the case here of nowadays, there's only a very short time period that's often necessary between when you decide to put SPD Smart Glass in a vehicle and when it goes in. It could be a year, 1.5 years, and we've been working with some of these companies for that period of time. So I think you'll expect introductions in 2025.

August Berman

Got it.

Joe Harary

That's always the big assumption.

August Berman

Right. Okay. And I think maybe part of the frustration last year, just looking at the filings and I'm mentioning Daimler, SPD and then I'm looking at the web and seeing that the 2020 S-Class had been delayed. So I always kind of put -- connected the dots there. But are we still expecting the Asian automobile to come out as well in 2025?

Joe Harary

Yes, we are.

August Berman

Okay. And that’s all I had. Thank you.

Joe Harary

Thanks a lot. Take care.

Operator

Alan Ginsberg, an investor.

Alan Ginsberg

Yeah. Hi, Joe.

Joe Harary

Hey, Alan.

Alan Ginsberg

Hi. One question. The structure of the royalty agreement regarding the black particles, do you expect it to be similar to the royalty agreements that you have in place right now?

Joe Harary

Yeah. I mean that's something that we and Gauzy are going to determine, but I don't see a real need to change the royalty arrangement. We get a 10% to 15% royalty from the customer with the blue material. And you would think that because the black is a better thing, we would get more. But on the other hand, they would probably sell a lot more of the product or sell it at a higher price. So our royalty could go up just with the same percentages in place.

Alan Ginsberg

Right. Your protection is similar with the black particle as it would be intellectual property protection as it would be in your other products. Is that correct?

Joe Harary

Yeah. We're very focused on protecting IP, as you could tell. We have 250 patents and equal number of patent applications. It's quite a bit.

Alan Ginsberg

Okay. Thank you. That’s all I have.

Joe Harary

Thanks Alan.

Alan Ginsberg

All right.

Operator

Alan Yakuboff, Kingsview Partners.

Alan Yakuboff

Joe, how are you doing today?

Joe Harary

Alan, how are you, and I'm sorry, we haven't been able to hook up. I spoke to your partner when you had called, but wasn't able to get back to you.

Alan Yakuboff

No problem. Just a quick question.

Joe Harary

You're here, yes.

Alan Yakuboff

Can you hear me?

Joe Harary

Yes.

Alan Yakuboff

Can you hear me?

Joe Harary

Yes.

Alan Yakuboff

You were up 47% for the year, and that's great. And you're saying you have momentum in all the multiple -- all the markets for this year.

Joe Harary

Right.

Alan Yakuboff

And if you duplicate that number, it's terrific. I know you're going to have some lumpy quarters from time to time, whatever reason. If you see momentum in all these markets, do you anticipate the possibility of a profitable quarter this year? Can you share that if you have?

Joe Harary

Yes, sure. Sure. We almost hit profitability this past year. So I'm certainly looking forward to achieving a truly profitable quarter in the coming year. A lot of it depends on the timing. If the car comes out at the end of the year versus the beginning of the year, that affects our royalties. But -- and also, if the architectural retrofit comes out, that could significantly increase our royalties. So we're very focused on that.

Alan Yakuboff

And the 2026 event that you mentioned or the potential for 2026 is something, any -- can you give us any more detail as far which markets is that going to address? Or is it multiple markets?

Joe Harary

Well, I would say that the most predictable market we have is automotive. So if I'm projecting out to 2026, it's probably on an automotive project and multiple ones actually.

Alan Yakuboff

All right. That’s all I have. Just wanted to be brief. Thank you very much.

Joe Harary

Thanks, Alan. Appreciate it.

Operator

William Brazzel, an investor.

William Brazzel

Yes. Good afternoon.

Joe Harary

Hi. How are you?

William Brazzel

I’m good. But I want to go back three years ago, because back in February of 2021, the stock was at $3.96. Today, it's up 4.72% to $1.33. And one of your earlier callers talked about the problem with the stock prices, nobody knows about Research Frontier. That's not the problem.
The problem is if you go out and do a roadshow now, you'd be wasting your time and the company's money because these broker-dealers will not be interested until you have significant revenues, and they will contact you and want to have a dialogue. I mean, we need $500,000 to $1 million in revenue is not going to bring them to the table.
I mean, I'm surprised that we're not -- based on what I knew three years ago, you're not in the hundreds of millions of dollars and obviously, that would take care of the stock price. And that's why I'm disappointed and I'm wondering how much longer this is going to take to have that kind of significant revenue, if you can talk about it at this point.

Joe Harary

Sure, sure. Well, I appreciate it. And I'm also in agreement with you that the real money is going to come into Research Frontiers as an investment when we have much higher revenues.

William Brazzel

That's true. We need contracts and the problem is how to it's hard to be confident in that when I've been waiting for these significant contracts for three years.

Joe Harary

Right. No, and I've been -- I'm very sympathetic to what you're saying there. We are working and Gauzy is working as hard as we can to land these contracts sooner to be able to talk about them sooner so that the stock price appreciates sooner. And of course, the least thing I'm worried about is revenue. It's really what can we say about it and what -- and those are the things we're working on right now. But I appreciate the question, and I am in agreement that our stock price will do much better when we could talk about more of this stuff and have higher revenue.

William Brazzel

Because I know all these companies and you have a fiduciary responsibility as a publicly traded company to make those announcements on a timely basis when you do have a significant contract. So I'm not worried about that happening, but I do hope it does happen sometime soon.

Joe Harary

Yeah. Right, right. Well, we try to have as many things in the works so that we could have more and more of those.

William Brazzel

Okay. I'm hopeful, obviously, I've been hanging on.

Joe Harary

Thank you very much. And I appreciate the trust.

William Brazzel

Okay. Thank you for your time.

Joe Harary

Thank you.

Operator

(Operator Instructions)

Joe Harary

I think we've answered a lot of the questions. And if we haven't fully answered the question -- anyone's questions, please feel free to either e-mail us or call us. We're happy to talk to you.
I'd like to make a few closing remarks now, if I could. For the past several years, you've seen a constant increase in revenues year-over-year, and a steady reduction in operating expenses without a reduction in operational or other business accomplishments.
The reason for this is simple. We have a highly desirable and the best-performing smart glass technology in the world. And by increasing revenues, reducing expenses and preserving the best aspects of our asset-light business model, we're steadily moving towards being cash flow positive and profitable.
Because of the nature of the industries we're in, winning a project today often results in many years of business. The typical car model has a seven-year life and the typical aircraft model much longer. We go elephant hunting, and nobody is better at this than us and our licensees, and it creates steady revenues from each of the programs that last for years as we land these programs.
In areas like architectural, the numbers can be even bigger by virtue of the sheer magnitude of the size of the glass market for buildings and homes. Also, the sales cycle can be much shorter than aircraft and automotive, especially now with the SPD SmartGlass retrofit application.
Several of our competitors who have raised massive amounts of money and inevitably spent even more than they raised, notably companies such as View and Halio went bankrupt this year. Another company just got delisted. Part of this relates to the limitations in their technologies. And part of this is that they were only able to approach one market, and part of this was simply not paying attention to key areas of their business.
But by preserving our asset-light business model along the way, we're well positioned to reduce risks, apply more of our resources towards technology and market enhancements and expansion. We can also leverage the expertise in production capacity and capital and technological resources of a large list of diversified licensees by working with them closely from a technological and business development perspective.
This allows us to have a strong presence in multiple industries that others can't, such as automotive, aircraft, architectural, marine and consumer electronics. And with predictable and lower expenses, we can start to pay dividends to our investors more quickly.
I thank you very much for your continued support as we travel together down this road together. And if you believe that the future is smart glass, and I believe all of us here do, and you like diversified asset-light companies and a management team focused on efficiency and driving the company towards profitability, then you've come to the right place. Thank you very much.

Operator

This concludes today's conference call. Thank you for attending.