Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Revenues increased by 47% to $1.336 million, driven by significant growth in royalty income from the automotive and aircraft markets.
• Total expenses decreased by $165,000, marking a 6% reduction in an inflationary environment, showcasing operational efficiency.
• The company reported the lowest annual per share loss since going public, at $0.04 per share compared to $0.06 last year.
• Research Frontiers Inc (NASDAQ:REFR) has no debt and sufficient working capital for more than the next 5 years.
• The introduction of SPD smart glass in new vehicles and architectural projects is expected to drive future growth, with significant projects anticipated for 2025 and 2026.

Negative Points

• Fourth-quarter revenues were about half of the third quarter, attributed to reduced automotive production.
• The company faces challenges in gaining broader market recognition and analyst coverage due to limited public announcements of new business.
• There is uncertainty regarding the timing of new vehicle launches and their impact on revenue, as some expected models were delayed.
• The transition from R&D samples to mass production for the new black SPD particle is still in progress, with no definitive timeline provided.
• The stock price remains low, and investors express frustration over the lack of significant revenue growth and contract announcements.

Q & A Highlights

• Warning! GuruFocus has detected 3 Warning Signs with REFR.

Q: Why was the fourth quarter revenue about half of the third quarter? A: A lot of our revenue comes from automotive, and many carmakers cut production in the fourth quarter to clear out what's on the factory showroom for the next year. - Joe Harari, President and CEO

Q: Can you discuss the impact of potential 25% tariffs on Canadian and Mexican auto parts on SPD pipeline vehicle prices? A: I don't expect these tariffs to have a meaningful impact on our revenues. Historically, tariffs have affected less expensive cars more than premium vehicles, which are less price-sensitive. - Joe Harari, President and CEO

Q: Are there any plans to announce new business or contracts to increase visibility for Research Frontiers? A: We are working on announcing projects when possible, respecting customer requests. We have been discussing our partnerships with Ferrari, McLaren, and Cadillac, and we plan to attend investor conferences to increase visibility. - Joe Harari, President and CEO

Q: What is the status of the black SPD particle development, and will there be a patent application? A: The black SPD particle is in the R&D stage, and we are making progress. We aim to have strong patent protection, but I can't discuss IP strategy on an open call. - Joe Harari, President and CEO

Q: Is there potential for SPD technology in the middle market vehicles in 2025? A: Yes, we expect new vehicles in 2025 to include SPD technology in the middle market segment. - Joe Harari, President and CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.