Research Frontiers Inc (REFR) 2025 Q2 法說會逐字稿

Good afternoon and welcome to Research Frontiers' investor conference call to discuss the second-quarter 2025 results of operation and recent developments. The company will be answering many of the questions that were e-mailed 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 e-mail questions prior to this call or will do so afterwards in order to answer more questions of general interest to shareholders on the call.

下午好，歡迎參加 Research Frontiers 的投資者電話會議，本次會議將討論 2025 年第二季的經營業績和近期發展。該公司將在本次電話會議的演示中或最後的問答環節中回答許多在會議召開前透過電子郵件提出的問題。在某些情況下，公司已在本次電話會議之前直接回復了電子郵件提問，或者將在電話會議之後回复，以便在電話會議上回答股東們普遍關心的更多問題。

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 detailed in our SEC filings. Research Frontiers assumes no obligation to update or revise these statements. (Operator Instructions) The call is being recorded and will be available for replay on Research Frontiers website at smartglass.com for the next 90 days. (Operator Instructions)

今天的一些聲明可能包含前瞻性訊息，這些訊息通常使用「預期」、「預期」和「預測」等詞語來表示。這些反映了我們目前的看法，但由於各種風險因素（包括我們在提交給美國證券交易委員會的文件中詳細列出的風險因素），實際結果可能與所表達的結果有重大差異。Research Frontiers 不承擔更新或修改這些聲明的義務。（操作員說明）本次通話正在錄音，錄音將在 Research Frontiers 網站 smartglass.com 上提供 90 天的回放。（操作說明）

I will now turn the conference over to Joe Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

現在我將把會議交給 Research Frontiers 的總裁兼執行長 Joe Harary。請繼續，先生。

Thank you, Erica. Hello, everyone, and welcome to our second-quarter of 2025 investor conference call. From an accounting perspective, the second quarter of 2025 results look disappointing, but much of this relates to one-time and noncash charges and expenses that we elected to take in the second quarter. I'll go into this in more detail.

謝謝你，艾麗卡。大家好，歡迎參加我們2025年第二季投資人電話會議。從會計角度來看，2025 年第二季的業績令人失望，但這主要是由於我們選擇在第二季計入的一次性非現金支出和費用造成的。我會更詳細地解釋這一點。

From an operational perspective, things were actually much better with higher economic activity and sales of SPD SmartGlass during the second half of this year and lower cash expenses. But when you back out onetime accounting charges from the bankruptcy and replacement of 1 of our licensees supplying Ferrari and noncash accounting charges from options issued last year that were approved for issuance by our shareholders this year, expenses would be essentially the same or lower than last year and royalties would be up compared to last year. Deliveries of the Cadillac CELESTIQ to GM customers have started. Sales of SPD SmartGlass sunroofs to Cadillac in Q2 2025 were substantial multiples higher than Q4 2024 and Q1 2025 combined.

從營運角度來看，情況實際上要好得多，今年下半年經濟活動增加，SPD SmartGlass 的銷售額上升，現金支出減少。但是，如果扣除因破產和更換一家法拉利供應商而產生的一次性會計費用，以及因去年發行的期權（今年已獲股東批准發行）而產生的非現金會計費用，則支出將與去年基本持平或更低，而特許權使用費將比去年有所增加。凱迪拉克CELESTIQ已開始向通用汽車客戶交付。2025 年第二季 SPD SmartGlass 天窗在凱迪拉克的銷售量將比 2024 年第四季和 2025 年第一季的總和高出許多倍。

Ferrari roof sales were strong in the first quarter of 2025. However, because of the bankruptcy filing of the European licensee that was supplying Ferrari with the bankruptcy coming from this licensee's loss and from other customers not Ferrari, this licensee shut down operations in Q2 2025 so we did not book any royalty income from them for Q2 and wrote off some amounts. This is why royalty income was down this quarter. Also, this bankruptcy filing was anticipated by Ferrari, Gauzy and Research Frontiers and another existing licensee of ours in Europe was successfully transitioned to supply Ferrari and additional production for Ferrari has already started by this licensee.

2025年第一季度，法拉利車頂的銷售量強勁。然而，由於向法拉利供貨的歐洲被許可方申請破產，破產原因是該被許可方自身虧損以及法拉利以外的其他客戶虧損，該被許可方於 2025 年第二季度停止運營，因此我們沒有確認第二季度來自該被許可方的任何特許權使用費收入，並註銷了一些金額。這就是本季版稅收入下降的原因。此外，法拉利、Gauzy 和 Research Frontiers 都預料到了此次破產申請，我們在歐洲的另一家現有授權商已成功過渡到為法拉利供貨，並且該授權商已經開始為法拉利進行額外的生產。

Now we get into a little bit of the accounting. Because we don't book additional royalty income until a licensee meets its minimum annual royalties, we have not yet seen additional royalty income from this additional supplier to Ferrari yet. So we booked nothing for the second quarter from the licensee that went bankrupt and we weren't able to include any royalty income from the replacement licensee. Based upon the way our royalties under our license agreement were accounted for and the ramp-up of sales to Ferrari, we expect to see additional income from this licensee recorded in the third and fourth quarters of 2025 relating to the Ferrari business.

現在我們來簡單了解一下會計方面的內容。由於我們只有在被授權人達到其最低年度特許權使用費後才會確認額外的特許權使用費收入，因此我們尚未收到來自這家法拉利新供應商的額外特許權使用費收入。因此，由於被授權者破產，我們第二季度沒有收到任何款項，也無法計入來自替代被授權人的任何特許權使用費收入。根據我們授權協議中規定的特許權使用費的會計處理方式以及對法拉利銷售額的成長，我們預計在 2025 年第三季和第四季度，我們將從該被授權者獲得與法拉利業務相關的額外收入。

We also expect additional royalty income from other automotive projects starting in Q3 2025. Continued sales of SPD SmartGlass roofs for Mercedes and McLaren also occurred in the first half of 2025. Also, as I mentioned, we elected to make in the second quarter certain accounting charges and treatment relating to the bankruptcy filed in the second quarter by one of our licensees. Backing out these, royalty income would be up compared to last year. Also, I note this comes off of a very strong first quarter of 2025 with 79% revenue growth from Q1 over the prior year and 214% from the prior quarter.

我們也預計從 2025 年第三季開始，其他汽車專案也將帶來額外的特許權使用費收入。2025 年上半年，梅賽德斯-奔馳和麥克拉倫的 SPD SmartGlass 車頂也繼續銷售。另外，正如我之前提到的，我們選擇在第二季度對與我們的一家被授權人在第二季申請破產相關的某些會計費用和處理方式進行結算。扣除這些費用後，版稅收入將比去年增加。另外，我注意到，這是在 2025 年第一季表現非常強勁的基礎上實現的，第一季營收比去年同期成長了 79%，比上一季成長了 214%。

This growth and momentum for Research Frontiers was driven by increased demand for SPD SmartGlass particularly in the automotive sector and also in the aircraft sector with growing interest in new projects in the architectural market. We continue to expect revenue in all market segments to increase further as new car models and other products using the company's SPD SmartGlass technology are introduced into the market. And apart from these blips in accounting treatment, our net loss would have been lower this quarter and we are moving forward towards being cash flow positive.

Research Frontiers 的成長和發展勢頭得益於對 SPD 智慧玻璃的需求不斷增長，尤其是在汽車行業和航空航天行業，同時建築市場對新項目的有趣也日益濃厚。我們預計，隨著採用該公司 SPD SmartGlass 技術的新車型和其他產品陸續進入市場，所有細分市場的收入將繼續增長。撇開這些會計處理上的小插曲不談，我們本季的淨虧損本應更低，而且我們正朝著實現現金流為正的目標邁進。

Turning to our financial condition and liquidity. We continue to manage our resources effectively. As of June 30, 2025, our cash and cash equivalents stood at approximately $1.3 million, it's $100,000 less than last quarter, and our working capital was approximately $1.7 million. We continue to be debt free. We continue to also see progress in significant developments across our markets.

接下來談談我們的財務狀況和流動性。我們繼續有效管理資源。截至 2025 年 6 月 30 日，我們的現金及現金等價物約為 130 萬美元，比上一季減少了 10 萬美元，我們的營運資金約為 170 萬美元。我們仍然沒有負債。我們也持續看到各市場在重大發展上取得進展。

Our SPD Smart technology is currently licensed or used by many major companies serving five major application areas; aerospace, architectural, automotive, marine, and display products in almost every country in the world.

我們的 SPD Smart 技術目前已獲得許多大型公司的授權或使用，這些公司服務於五大主要應用領域：航空航太、建築、汽車、船舶和顯示產品，幾乎遍及世界各國。

As I mentioned earlier, we included some questions previously sent in by our shareholders in our presentation today. I'll now answer some questions that have been e-mailed to us. So the first question comes from John Nelson. There's a number of questions here. SPD Black development update?

正如我之前提到的，我們在今天的簡報中包含了一些股東先前提出的問題。現在我將回答一些透過電子郵件發送給我們的問題。第一個問題來自約翰·尼爾森。這裡有很多問題。SPD Black 開發進度如何？

I'm happy to report, John, that Gauzy may go into more detail on this on their call next week on August 13. But everything is going well and faster than I anticipated. I was recently in Israel visiting their factory and saw the latest SPD film and it looks really, really great. It looks far better than what I saw in January at CES. And I think even more important than what I think, the key OEMs really like it as well.

約翰，我很高興地告訴你，Gauzy 可能會在下週 8 月 13 日的電話會議上對此進行更詳細的說明。但一切進展順利，比我預想的還要快。我最近去以色列參觀了他們的工廠，看到了最新的SPD薄膜，看起來真的很棒。它看起來比我一月份在CES上看到的要好得多。而且我認為更重要的是，主要的汽車製造商也非常喜歡它。

You asked me about how the architectural window project is going and has it officially launched? Well, it's launched on the development side. We've submitted samples to testing for energy efficiency. We've worked out all of the details in terms of wiring and installation and production and things like that.

你問我建築窗戶專案進度如何，是否已經正式啟動？嗯，它已經在開發端上線了。我們已將樣品送去進行能源效率測試。我們已經把佈線、安裝、生產等方面的所有細節都敲定了。

And you ask can you identify the licensee for us?

你問能否幫我們找出被授權人？

Yes, it's LTI Smart Glass, which is in Massachusetts and AIT, which is their affiliate in Largo, Florida. And you asked about some of the projects. They're definitely in the works.

是的，是位於麻薩諸塞州的 LTI Smart Glass 公司，以及位於佛羅裡達州拉戈的 AIT 公司，後者是 LTI Smart Glass 的附屬公司。你問了一些關於專案的問題。它們肯定正在籌備中。

And you asked the last question, any effects on your business from ongoing US trade and tariff policy?

您問了最後一個問題，美國目前的貿易和關稅政策對貴公司有何影響？

No effect that we could see. Basically, the general automotive industry for example was shaken up quite a bit by tariffs, but they seem to have settled in now and stabilized. The areas that we're in weren't affected at all, but the general market in automotive was affected.

我們沒觀察到任何效果。基本上，例如，整個汽車行業都受到了關稅的巨大衝擊，但現在似乎已經穩定下來了。我們所在的地區完全沒有受到影響，但整個汽車市場都受到了影響。

Okay. Next question is from Steve A. With world opinion turning against Israel, how is Gauzy managing this situation and are they losing business opportunities from this situation and is it affecting REFR?

好的。下一個問題來自 Steve A.：隨著世界輿論轉向反對以色列，Gauzy 是如何應對這種情況的？他們是否因此失去了商機？這種情況是否對 REFR 產生了影響？

First of all, Steve, I disagree that world opinion has turned against Israel and neither we nor they have seen any business loss from this. So thankfully, everything is in good shape there. And now that the markets that we're in are starting to stabilize as people get used to things like the tariff regime and the negotiations there are pretty much done in most major markets. I think everything is approaching back to normal again. They weren't affected directly because they have worldwide operations.

首先，史蒂夫，我不同意世界輿論已經轉向反對以色列的說法，而我們和他們都沒有因此遭受任何商業損失。謝天謝地，那裡一切狀況良好。現在，隨著人們逐漸適應關稅制度等問題，我們所處的市場開始趨於穩定，而且大多數主要市場的談判也基本完成。我認為一切都在逐漸恢復正常。由於他們的業務遍及全球，所以沒有直接受到影響。

Your second question, Steve, was with the stock market broadening out, including small caps, you have a great opportunity to present good news to get the stock price moving and much higher. This opportunity should not be lost. We have been stuck in this pattern for so many years. We need to get out of this present cycle.

史蒂夫，你的第二個問題是，隨著股市的擴張，包括小盤股在內，你現在有一個很好的機會發布利好消息，從而推動股價上漲。不應錯失良機。我們多年來一直被困在這種模式中。我們需要擺脫目前的這種惡性循環。

First of all, let me say amen to that. I'm not sure that I would say that the stock market is broadening out to include small caps. If you look at, for example, a comparison of the Russell 2000 relative to the NASDAQ 100, that relationship hit an all-time low last week. So small caps still continue to lag behind the Magnificent 7 in participating. So small caps haven't really rebounded yet from that.

首先，我對此表示贊同。我不確定我是否應該說股市正在向小型股擴展。例如，如果你比較羅素 2000 指數和納斯達克 100 指數，你會發現它們之間的關係在上週跌至歷史最低點。因此，小型股在參與度方面仍然落後於「七大巨頭」。所以小型股還沒有真正從那次下跌中反彈。

And as far as being stuck in this pattern for so many years, I looked at that same chart and this decline in the Russell 2000 compared to the Russell 100 really has been in a downturn for the past 5 years. Hopefully, that will turn itself around. However, in our case, our plan is to become so big that they can't ignore us no matter where we are in that market.

至於多年來一直陷入這種模式，我查看了同一張圖表，羅素 2000 指數相對於羅素 100 指數的下跌趨勢在過去 5 年裡確實一直處於下行狀態。希望情況能夠好轉。但是，就我們而言，我們的計劃是發展壯大到無論我們在市場上的哪個位置，他們都無法忽視我們。

Rick Cyrils asks is the Chevrolet Corvette using SPD in their tinting roof system and you also asked a question about the architectural retrofit market, which I've already answered.

Rick Cyrils 問雪佛蘭 Corvette 是否在其車頂著色系統中使用了 SPD 技術，他也問了一個關於建築改造市場的問題，我已經回答過了。

Getting to the Corvette, it's somewhat of a mystery. I've heard mixed things around the industry about whether it's going to appear. I haven't seen in any of our licensee royalty reports any report of supplying that market. And I can't say much about it other than regardless of what they put in there, we may have other business within GM outside of the Cadillac that we're currently in that I know of already, but it's not something I could talk about on this call, but hopefully more details later.

如何才能得到這輛克爾維特跑車，這多少有點神秘。我聽到業內人士對它是否會面世說法不一。我在我們所有被授權者的特許權使用費報告中都沒有看到任何關於向該市場供貨的報告。除了他們最終決定之外，我不能透露太多。據我所知，除了我們目前參與的凱迪拉克項目之外，通用汽車內部可能還有其他業務，但這不是我能在這次電話會議上談論的內容，希望以後能有更多細節。

Carrie Christie asked what happened with the VW i7, another PDLC roof win for a major player not REFR. Why is SPD used in multiple prototypes and production is given to another competitor? SPD is supposed to be a superior product at a competitive price.

Carrie Christie 詢問大眾 i7 的情況，這是另一款採用 PDLC 車頂的車型，對於主要製造商來說，它並非 REFR。為什麼SPD被用於多個原型設計，而生產卻交給了另一家競爭對手？SPD 應該是一款性能卓越且價格極具競爭力的產品。

Well, let's take one part of that first and I think this explains a lot. The competitive price. Well, our prices have come down quite a bit based on increased volumes and they could come down quite a bit more with additional projects coming online. Right now PDLC is much cheaper than SPD. So my guess is if somebody puts it in a car, it's because they're comparing apples to oranges not understanding that they taste different.

好，我們先來看其中的一部分，我認為這可以解釋很多問題。價格很有競爭力。由於銷量增加，我們的價格已經下降了不少，隨著更多項目的上線，價格可能還會進一步下降。目前PDLC比SPD便宜很多。所以我猜，如果有人把它放在車裡，那是因為他們把蘋果和橘子放在一起比較，卻不明白它們的味道不一樣。

And the VW i7 was talked about three to five years ago, but it doesn't change the nature of what I'm saying, which is VW has been focused on PDLC in all of their cars and even it's spilled over to Rivian because VW invested about $10 billion in Rivian.

大眾 i7 早在三到五年前就被討論過了，但這並不會改變我所說的本質，那就是大眾汽車一直專注於在其所有汽車中使用 PDLC 技術，甚至這種技術也延伸到了 Rivian，因為大眾汽車在 Rivian 投資了大約 100 億美元。

So I imagine they're trying to use the same platforms and other products. That will change. I sat in a Rivian the other day and the car is beautiful. The roof really left a lot to be desired. You can clearly see whether the roof was in the clear or the frosted state that a lot of light was coming through.

所以我認為他們正在嘗試使用相同的平台和其他產品。這種情況將會改變。前幾天我坐進了一輛Rivian車裡，這車真漂亮。屋頂實在令人不敢恭維。你可以清楚地看到屋頂是透明的還是磨砂的，有很多光線可以透過磨砂玻璃照射進來。

You could clearly see things like light bulbs in the showroom ceiling and things like that that were coming through. So it's not really doing much at all to block the heat, light and glare that's coming in and that's really the reason you put this in there.

你可以清楚地看到展廳天花板上的燈泡之類的東西透出來。所以它實際上並沒有起到阻擋熱量、光線和眩光的作用，而這正是你把它放在那裡的真正原因。

Maybe turning to something else, which is future projects for SPD, we're beginning to see more and more of those come on board. So while some projects may go to PDLC due to momentum within an automaker, I think a lot of companies are waking up to the fact and now they're actually even telling us explicitly that they know that SPD has better performance than PDLC. So that kind of confirms once again that the price is still being offered at a lower price. It could be that they're being subsidized to get market share. Whatever the reason, subsidizing to get market share only works to a small extent and eventually they're going to need to have economic pricing.

或許可以轉向其他方面，例如西雅圖警察局的未來項目，我們開始看到越來越多的此類項目加入。因此，雖然有些項目可能會因為汽車製造商內部的勢頭而採用 PDLC，但我認為許多公司正在意識到這一點，現在他們甚至明確地告訴我們，他們知道 SPD 的性能優於 PDLC。所以這再次證實了該產品仍然以較低價格出售。有可能他們獲得了補貼以獲得市場份額。無論出於什麼原因，透過補貼來獲取市場份額只能起到很小的作用，最終他們還是需要採取經濟定價策略。

Another one question from Elliott. How should we think about royalties for the retrofit windows? On sunroof, you had mentioned royalties of about $100 per sunroof depending on size. What do you hope to collect on architectural window replacements?

艾利歐特又問了一個問題。我們該如何考慮改造窗戶的專利費問題？關於天窗，您曾提到過，根據尺寸不同，每個天窗的特許權使用費約為 100 美元。您希望從建築窗戶更換中獲得多少收入？

Our licensee in this area is actually projecting sales in the first year in the high tens of millions of dollars. And if we have a 10% or 15%, right now it's a 15% royalty; but I imagine in high volume, they're going to ask me to reduce the royalty to 10% and depending on the volumes, I certainly would consider it. You're talking about royalty levels that can make us clearly profitable even in the first year of the retrofit being on the market. After that, we expect multiples of that. When I say we, the licensee that is producing and marketing this.

我們在該地區的授權經銷商預計第一年的銷售額將達到數千萬美元。如果版稅是 10% 或 15%，目前是 15%；但我估計銷量大的時候，他們會要求我把版稅降到 10%，我會根據銷量情況考慮是否同意。您說的版稅水平，即使在改造工程上市的第一年，也能讓我們明顯獲利。此後，我們預計會出現數倍的成長。我說的“我們”，指的是生產和銷售該產品的被授權者。

And if you want their marketing materials, you can see it on the LTI AIT website.

如果您想要他們的行銷資料，可以在 LTI AIT 網站上查看。

Okay. We answered the e-mail questions. Now I'd like to maybe open up the questions-and-answer session, Erica, to additional questions people may have that haven't been answered already. And we ask that you keep your questions limited to questions of general interest. If there's something specific that you want to talk about, a project for your home or something like that, let's talk offline.

好的。我們已回覆郵件中的問題。現在我想開放問答環節，艾莉卡，回答大家可能還有尚未解答的問題。我們要求您的問題僅限於一般性問題。如果您有什麼具體的事情想談，例如您家裡的專案之類的，我們私下聊吧。

But if it's of general interest to shareholders, please ask. And also, we can certainly answer any questions by e-mail or calls afterwards.

但如果股東普遍對此感興趣，請提出。此外，我們之後當然也可以透過電子郵件或電話回答任何問題。

(Operator Instructions) Bill Denny.

（操作說明）比爾·丹尼。

I think you may have answered it a little bit ago. I recently drove the new Audi S5 and they have the tinting technology in their sunroof. I assume that is not from REFR.

我想你可能不久前已經回答過了。最近我試駕了新款奧迪S5，它的天窗採用了著色技術。我假設這不是來自 REFR。

No. Since Audi is part of VW, they tend to consistently have been trying to introduce PDLC. It's not getting a very good reaction, but I think that will change over time.

不。由於奧迪是大眾汽車集團的一部分，他們一直在努力引入PDLC（產品驅動生命週期管理）。目前反應不太好，但我認為隨著時間的推移這種情況會改變。

I was not impressed with it and I kind of figured it wasn't from your company. So I really appreciate you clearing that up.

我對此並不滿意，而且我感覺這肯定不是你們公司的產品。非常感謝你澄清這一點。

Our next question comes from Bruce Danny.

下一個問題來自布魯斯·丹尼。

Joe, on a recent conference call, you said that we have a future project that will dwarf all our previous revenues. And I was wondering if you could at least give us what category it's in, architectural or whatever?

喬，你在最近的一次電話會議上說過，我們未來有一個項目，其收入將遠遠超過我們之前的所有收入。我想問一下，您能否至少告訴我們它屬於哪個類別，建築類還是其他什麼類別？

Domestic and automotive.

家用和汽車。

Our next question comes from John Nelson.

下一個問題來自約翰·尼爾森。

Joe, my question is a replay of prior quarters. The auto sun visor update built in and aftermarket?

喬，我的問題和上個季度的問題類似。自動遮陽板升級是內建的還是後裝的？

Sure. I sent you an e-mail about this last night, which you might have missed. But basically the licensee in that has been somewhat distracted by other events in the automotive industry, including general tariffs and moving their factories from overseas to North America. So I don't have much to report on that yet, but there's a little more detail on what I had sent to you last night.

當然。我昨晚給你發了一封關於此事的電子郵件，你可能錯過了。但基本上，該被許可方在某種程度上被汽車行業的其他事件分散了注意力，包括普遍關稅以及將工廠從海外遷往北美。所以目前我還沒有太多關於這方面的消息可以報告，但我昨晚發給你的信息裡還有一些更詳細的內容。

Our next question comes from Chuck Michael.

下一個問題來自查克·邁克爾。

Two questions really. One was the architectural office windows, you haven't mentioned anything about that today and I thought we were going to make some progress due to domestic as the law was passed on that. And so I haven't heard anything. So if you could comment on that first of all.

其實是兩個問題。其中之一是建築事務所的窗戶，你今天完全沒有提到這件事，我以為我們會因為相關法律的通過而取得一些進展。所以，我什麼消息都沒聽到。首先，如果您能就此發表一下看法就太好了。

Okay. I just wanted to understand about the architectural. I spoke a bit about it in terms of the retrofit being moving forward and that's being spearheaded by LTI AIT, our licensee in Massachusetts and Florida.

好的。我只是想了解一下建築方面的內容。我稍微談到了改造工程的進展情況，這項工作由我們在馬薩諸塞州和佛羅裡達州的授權商 LTI AIT 牽頭。

That's for the architectural. Okay.

那是建築方面的問題。好的。

Right. That's the architectural, yes. And just for everyone's benefit, we think the reason that the retrofit application is going to be a game changer. First of all, no one else could do it. It's been one of the holy grails.

正確的。是的，那是建築方面的問題。為了大家的利益，我們認為改造申請將會改變遊戲規則。首先，其他人根本做不到。它一直是人們夢寐以求的聖杯之一。

The other being the Black SPD, which we talked about also, is being close to fruition here. But the retrofit we believe will substantially change the way people introduce smart glass into their homes and offices. What we mean by that is you can actually install an SPD window from the inside of a building.

另一個是黑人社工組織，我們也討論過，它在這裡也即將實現。但我們相信，這種改造將大大改變人們在家庭和辦公室中引入智慧玻璃的方式。我們的意思是，實際上可以從建築物內部安裝SPD窗戶。

So you don't have to put up scaffolding, you don't have to get landlord approval. It's a lot more like a window shade, but it's not a window shade. It's a sturdy piece of glass that actually adds an extra layer of insulation to the building. And not having to do that means that you can measure and produce windows for any building or home and come in over the weekend so you're not disrupting tenants and installing these in the building. And that's in the private sector and that's somewhat driven by the Dynamic Glass Act because you also get a tax credit.

所以你不需要搭鷹架，也不需要獲得房東的批准。它更像窗簾，但它不是窗簾。這是一塊堅固的玻璃，實際上為建築物增加了一層額外的隔熱層。不必這樣做意味著您可以為任何建築物或房屋測量和生產窗戶，並且可以在周末進行安裝，這樣就不會打擾租戶，也不會影響建築物的正常運作。而且這種情況發生在私營部門，這在一定程度上是由《動態玻璃法案》推動的，因為您還可以獲得稅收抵免。

In the government market, it's even bigger because the GSA has a mandate to upgrade the energy efficiency of their windows. Right now most government buildings have monolithic glass not insulated glass even and this is a great way to upgrade that to be much more energy efficient. And we've actually in the past done types of retrofits in government buildings and they like it. So it kind of proved out that this is not a disruptive process.

在政府市場，這個市場規模更大，因為美國總務署 (GSA) 有義務提升其窗戶的能源效率。目前大多數政府建築都使用單片玻璃，甚至連隔熱玻璃都沒有，而這是一種很好的升級方式，可以大大提高能源效率。我們過去也曾對政府建築進行類似的改造，他們很滿意。所以這在某種程度上證明了這不是一個具有破壞性的過程。

Okay. And the second one I think it's different from what you've described before today. But in several conference calls recently, you've mentioned or you hinted that I guess you can't say too much, but about a new manufacturer coming out with a vehicle soon. And do you have an update on that?

好的。第二個問題，我覺得和你今天之前描述的情況有所不同。但最近幾次電話會議中，你都提到或暗示過（雖然我不能透露太多），即將有一家新的汽車製造商推出一款新車。請問這件事有最新進展嗎？

We have a number. So the Asian automaker is still on track to come out. The car hasn't come out. So that really is related to when the car comes out, but it's very much on track and there's activity between us and them and Gauzy as well. So that's moving.

我們有一個數字。所以這家亞洲汽車製造商仍按計劃推出產品。車還沒開出來。所以這確實與賽車何時上市有關，但目前進展順利，我們和他們以及 Gauzy 之間都有合作。所以這是在推進。

I mentioned some new other projects in Europe and in North America and those also are moving forward. So we continue to move forward in all fronts with everything. Sometimes the customer gets delayed for other reasons, including moving factories or adjusting to the reality of constantly shifting tariffs that now have settled in. So I think things are stabilizing there and we'll start to see things start to move.

我還提到了一些在歐洲和北美的新項目，這些項目也在推進中。因此，我們在各個方面都繼續向前推進。有時，客戶會因為其他原因而延誤，包括搬遷工廠或適應不斷變化的關稅現實（而這些關稅現在已經穩定下來）。所以我認為那裡的情況正在趨於穩定，我們將開始看到事情開始好轉。

Our next question comes from Art Brady.

我們的下一個問題來自阿特·布雷迪。

Joe, Art Brady here. I know in the past you used to do a lot of work with Lincoln and as a matter of fact you used to have a Lincoln car where we had the annual meetings and now we hear zilch from them. What's happening with the Lincoln?

喬，我是阿特·布雷迪。我知道你過去經常和林肯公司合作，事實上，我們每年開會的時候你都有一輛林肯汽車，但現在我們再也聽不到他們的消息了。林肯汽車那邊出了什麼事？

Well, I don't know if you remember, but even the CEO of Ford got on CNBC and said that the SPD SmartGlass roof was definitely going to be in the Continental and then it wasn't. So I don't want to go into too much details, but it didn't have anything to do with us or the supply chain. I think it had more to do with the car itself and you don't see the Continental on the road anymore. But we do have relationships with Ford. There's some projects going on there.

嗯，我不知道你是否還記得，福特公司的執行長甚至在CNBC節目中表示，SPD SmartGlass車頂肯定會出現在Continental車型上，但後來卻沒有。所以我不想透露太多細節，但這與我們或供應鏈沒有任何關係。我認為這更多是與汽車本身有關，而且你現在已經在路上看不到Continental了。但我們確實與福特公司有合作關係。那裡正在進行一些項目。

And also, I may say that Gauzy has publicly stated that they have good relations with Ford and projects going on. So I think it's just these things have to percolate into cars on the road.

此外，Gauzy曾公開表示，他們與福特保持著良好的關係，並且正在進行一些項目。所以我覺得這些東西必須慢慢滲透到路上的車子裡才能發揮作用。

You think that will happen in the next 12 to 18 months?

你認為這種情況會在未來12到18個月內發生嗎？

I don't want to put a time frame. It could happen sooner. It could take longer. I would have thought when they announced it -- when the CEO announced that we were going to be in the car that it would have happened in the next week, but it didn't and this was their CEO not me.

我不想設定時間期限。這可能更快發生。可能需要更長時間。我原以為，當他們宣布——也就是CEO宣布我們要坐車的時候——這件事會在下週發生，但並沒有，而且這是他們的CEO，不是我。

Can you also talk a little bit about the whole concept of when you have direct sunlight and you don't have SCD, you really can't use it when there's like sunlight, very strong glare and 6 feet away you cannot read the time.

您能否也談談在陽光直射下，如果沒有SCD（單光子吸收症）的情況下，您真的無法使用它，因為在陽光強烈、眩光很厲害的情況下，6英尺外您根本看不清時間。

I think we'll talk about that offline, Art. It sounds like a very specific idea or application you have and I'm happy to talk to you about it offline. But yes, controlling heat, light and glare is what we do best. So I'm sure that we can be a benefit to what you're thinking about.

我想我們私下再談這件事吧，Art。聽起來你的想法或應用非常具體，我很樂意私下和你討論。沒錯，控制熱度、光線和眩光正是我們最擅長的。所以我相信我們一定能對你的想法有幫助。

I think we got a breakroom for more questions. Art, I'm sorry. Why don't we continue our discussion at another time.

我想我們應該去休息室問更多問題。藝術，對不起。我們不妨改天再繼續討論。

Our next question comes from Leonard Litzau.

下一個問題來自 Leonard Litzau。

I was just looking at the last conference call, you said you had a couple of new things coming out this year, new OEMs and several right behind it for next year.

我剛剛看了上次的電話會議錄影，你說今年會推出一些新產品，新的OEM廠商，明年也會有幾款新產品陸續推出。

We're still moving forward. I think that since that call, we've had other models introduced as well to the mix. So it's something that we and Gauzy aggressively have been pursuing as the automotive market together.

我們仍在前進。我認為自從那次通話之後，我們也引入了其他模型。所以，這是我們和 Gauzy 一直在共同積極開拓的汽車市場領域。

Well, I'm sure you're pursuing it, yes. Do you think we'll see that in the next 6 to 9 months?

是的，我相信你正在努力實現這個目標。你認為我們會在未來6到9個月內看到這種情況嗎？

I'm hopeful, yes.

是的，我抱持著希望。

We are too.

我們也是。

Our next question comes from Francis Coterra.

下一個問題來自弗朗西斯·科特拉。

The Asian car that hasn't been released yet, was that the reason why the prediction for 2023 was going to be good for your shareholders collapsed and we didn't see that come forward?

那款尚未發表的亞洲車型，是否導致你們對2023年股東收益的預測落空，而我們又沒有看到相關消息公佈的原因？

Yes. We expected the car to come out. We were told, Gauzy was told, the R&D people within the Asian carmaker were told and it just didn't happen. No, I think it had something to do with other things in the car.

是的。我們預料到車子會開出來。我們被告知了，高茲被告知了，這家亞洲汽車製造商的研發人員也被告知了，但這件事就是沒有發生。不，我覺得這跟車上的其他東西有關。

Are they going with a different technology or that still.

他們會採用不同的技術，還是仍然使用那種技術？

No. We're having active discussions about not only our current SPD, but the new SPD as well.

不。我們不僅在積極討論我們目前的SPD，而且也在積極討論新的SPD。

Okay. In the architectural market, what's going to be the main driving force for someone to install it, savings, energy savings?

好的。在建築市場中，促使人們安裝它的主要驅動力是什麼？是節省成本還是節能？

One thing I must say, our website has now become really effective at bringing in large projects. I notice the new updated website has attracted very, very large companies and projects and things like that and on those, it's energy efficiency. On the smaller ones, high-end homes and things like that; a lot of times it's view preservation, heat management, privacy. There's a lot of different things that are driving why people have been asking us to retrofit their windows with SPD.

我必須說，我們的網站現在在吸引大型專案方面確實非常有效。我注意到新版網站吸引了許多非常非常大的公司和項目，而這些都與能源效率有關。對於較小的住宅、高端住宅等等；很多時候是為了保護景觀、控制溫度、保護隱私。導致人們要求我們為其窗戶加裝 SPD 的原因有很多。

For a large application?

適用大型應用？

Large and small. But for the large ones, it's mostly crunching the numbers; nuts and bolts, energy efficiency, ease of facility management. There's a lot of different things that have gone into the decision-making on that. If you don't have to, for example, put window shades in a building or if you can replace motorized window shades, which are very, very prone to jamming and error and things like that with something that's very reliable like SPD and give centralized control to the facility manager, these buildings become much easier to optimize for energy efficiency.

大的和小的。但對於大型專案而言，主要還是計算數字；具體細節、能源效率、設施管理的便利性。做出這個決定需要考慮很多不同的因素。例如，如果不必在建築物內安裝窗簾，或者可以用像 SPD 這樣非常可靠的設備替換非常容易卡住和出錯的電動窗簾，並向設施管理人員提供集中控制，那麼這些建築物就更容易優化能源效率。

And if you look at some of the studies that were done, there was a Saudi Arabian study that talked about the optimal place and tint for SPD windows in different parts of different types of buildings and things, and there's other studies as well. You're starting to see architects really drill down now into what I call the nuts and bolts of why you would use it and that's good because the data is very favorable to us.

如果你看看一些已經進行的研究，你會發現沙烏地阿拉伯的一項研究討論了不同類型建築物的不同部位中 SPD 窗戶的最佳位置和顏色，還有其他一些研究。現在，你會看到建築師開始真正深入研究我所說的使用它的根本原因，這很好，因為數據對我們非常有利。

Are there reductions in temperatures?

氣溫有下降嗎？

Yes. Some of the studies that have been done show a 20% reduction in electrical usage in zones that use SPD. In cars, we can reduce the temperature by 18 degrees Fahrenheit. So instead of getting in a car and it being 90 degrees, it's 72 degrees and you haven't used your air conditioning. Each application kind of has its own footprint, if you will, and benefit.

是的。一些研究表明，使用 SPD 的區域用電量減少了 20%。在汽車裡，我們可以將溫度降低華氏18度。所以，你坐進車裡，原本應該是 90 度，現在卻是 72 度，你還沒開冷氣。每個應用程式都有其自身的特性和優勢。

And then it also depends on where the building is and what it's used for.

此外，也要取決於建築物的地理位置和用途。

And being that there are no competitors in that market, price really might not be that much of an issue?

鑑於該市場沒有競爭對手，價格可能真的不是什麼大問題？

Well, everything competes with everything. I mean we may not have smart glass competitors in the architectural market with View and Halio going bankrupt. But we still compete with window shades and vertical blinds and curtains and the more traditional ways of controlling light and shading. So everything has a competitor. We can't go crazy.

嗯，萬物之間都存在著競爭。我的意思是，隨著 View 和 Halio 破產，建築市場可能就沒有智慧玻璃競爭對手了。但我們仍然要與窗簾、垂直百葉窗、窗簾以及其他更傳統的光線和遮光方式競爭。所以任何事物都有競爭對手。我們不能瘋掉。

But on the other hand, there's really demonstrable benefits to use this.

但另一方面，使用這種方法確實有顯而易見的益處。

What type of voltage is needed for your switch?

您的開關需要什麼電壓？

In the architectural applications we're using, it maximizes transparency at around 80 volts so AC and then what you're doing is using milliamps per square foot. So the power draw is negligible even at 80 or 90 volts from a home application. In cars, we're running off the 12-volt battery.

在我們使用的建築應用中，它在 80 伏特左右的交流電下可以最大限度地提高透明度，然後你所做的就是使用每平方英尺的毫安培數。因此，即使在家庭應用中使用 80 或 90 伏特電壓，功耗也微乎其微。在汽車裡，我們使用的是 12 伏特電池。

Which probably goes to a converter to AC.

這很可能是連接到交流轉換器。

Exactly.

確切地。

Our next question comes from Jared Sherman.

下一個問題來自賈里德·謝爾曼。

Who is the licensee that went bankrupt?

破產的持牌人是哪一家？

We're not naming the name, but it was a European licensee that was supplying Ferrari.

我們不透露具體名稱，但是一家歐洲授權商向法拉利供貨。

What's the secret? Like why is it so top secret? I don't understand.

秘訣是什麼？為什麼這是最高機密？我不明白。

Well, I think if you do a search, you'll see which glass companies have gone bankrupt. I just don't feel comfortable revealing private information that I've been given. And to the extent it's been public, you'll find it. It doesn't really matter though because we've moved that over to another European licensee as I said earlier on. So it's not --

我想，如果你搜尋一下，你會發現哪些玻璃公司已經破產了。我不太願意透露別人告訴我的私人資訊。只要是公開的訊息，你都能找到。不過這並不重要，因為正如我之前所說，我們已經將這項業務轉移給了另一家歐洲授權商。所以並非如此--

But how do you guys have a licensee go bankrupt? You don't vet them? Like you don't think it's a big deal, but now we're out a quarter, and we made $100,000 deal. It's a disaster, an absolute disaster.

但是你們是如何讓被授權者破產的呢？你們不對他們進行審查嗎？你可能覺得這沒什麼大不了的，但現在我們損失了四分之一，而我們原本簽了一筆 10 萬美元的合約。這是一場災難，徹頭徹尾的災難。

All right. Well, excuse me, okay. And I understand your frustration, and I'm as frustrated as you because on June 30 when they filed their bankruptcy, that's when we had to take the accounting action we did. We did get paid by the way. Now we do vet them.

好的。好吧，不好意思。我理解你的沮喪，我也和你一樣沮喪，因為6月30日他們申請破產時，我們就得採取我們所做的會計措施。順便說一句，我們確實拿到了工資。現在我們會對他們進行審查。

They're a well-established company and unfortunately, they overextended themselves with other customers. The Ferrari business was a good business. The rest of the business they had wasn't so good and the customers left them.

他們是一家老牌公司，但不幸的是，他們過度擴張，承接了太多其他客戶。法拉利生意做得很好。他們其他的生意也不太好，顧客都離開了。

And if you know what's happening in the automotive industry, there's always changes in suppliers. This was something that with their overextension, they weren't able to handle. It has nothing to do with SPD. The SPD business was probably the crown jewel of what they had. But given the size of the company and the weight of these other -- the loss of these other customers, they weren't able to sustain it.

如果你了解汽車產業的發展動態，就會知道供應商總是在不斷變化。這是他們由於過度擴張而無法應對的問題。這和感覺統合障礙無關。SPD業務可能是他們所有資產中最耀眼的明珠。但考慮到公司的規模以及其他客戶的流失所帶來的影響，他們無法承受這樣的損失。

It's not a good look. It's just one more thing that goes wrong with you guys over 30 years of the same thing.

這看起來不太好。這只是你們30多年來一直做同樣的事情，又出了一件壞事而已。

Sure. And let me ask you if you have a well-established company that has been in the glass business for decades that goes bankrupt, what do you expect?

當然。那麼，我想問你，如果一家在玻璃產業經營了幾十年的老牌公司破產了，你期望會發生什麼事？

Well, they're not that established then. How well established are they if they went bankrupt? They're not that established. What happens to Gauzy? How's Gauzy?

嗯，那他們還沒那麼成熟。如果他們破產了，表示他們的企業根基有多穩固？他們還沒有那麼成熟。高茲會怎麼樣？高齊怎麼樣了？

Like what happens if Gauzy goes belly up? What do we do then?

如果 Gauzy 破產了會怎麼樣？那我們該怎麼辦？

You could start chasing shadows, but you should understand that one of the benefits of our business model is when somebody goes bankrupt, we were able to move the business seamlessly to another supplier. We didn't lose the Ferrari business and that's I think the important thing, okay? One licensee because of activities unrelated to SPD went bankrupt. I don't run their business.

你可能會開始追逐虛幻的影子，但你應該明白，我們商業模式的優勢之一在於，當有人破產時，我們可以將業務無縫轉移到另一個供應商。我們沒有失去法拉利業務，我認為這才是最重要的，好嗎？一家持牌企業因與SPD無關的活動而破產。我不負責他們的業務。

I get it. I get you don't run their business, but it just seems like we can't move forward at all. We're making no progress. I mean it sounds like you always say we have something next quarter, we're doing well. But there's never any revenue that associates with it, Joe.

我得到它。我知道你並不經營他們的業務，但感覺我們根本無法取得任何進展。我們毫無進展。我的意思是，聽起來你總是說我們下個季度有新動作，我們進展順利。但喬，這從來沒有帶來任何收入。

It's ridiculous.

太荒謬了。

Okay. Look, if you're not happy with the state of affairs, then nobody is forcing you to be a shareholder. But I'm telling you that we got paid in full. We got paid in full for what we were owed, okay? They went bankrupt and we weren't able to book additional revenue for the second quarter.

好的。聽著，如果你對現狀不滿意，也沒人強迫你成為股東。但我可以告訴你，我們已經全額收到款項了。我們已收到應得的全部款項，懂嗎？他們破產了，導致我們第二季無法確認額外的收入。

And the way that our accounting systems are set up under ASC 606 is that the new licensee that took over that business in the second quarter didn't exceed their minimum royalties because of the timing. So we didn't book additional revenue from them and we lost the revenue from one. It's just an accounting issue, okay? From a cash flow standpoint, we're basically whole.

根據 ASC 606 的規定，我們的會計系統是這樣設定的：第二季接管該業務的新被許可人由於時間關係，沒有超過其最低特許權使用費。因此，我們沒有從他們那裡獲得額外的收入，而且還損失了其中一筆收入。這只是個會計問題，好嗎？從現金流的角度來看，我們基本上沒有問題。

So can we expect any guidance for the third quarter that you're going to show that you're going to have a bump in guidance from the original third quarter?

那麼，我們能否期待你們對第三季業績做出任何指引，表明你們的業績指引會比原先的第三季有所上調？

Well, I can't tell you until I get the royalty reports what it is. But I think, yes, we're definitely going to be up from the second quarter.

嗯，我得等拿到版稅申報才能告訴你具體是多少。但我認為，是的，我們肯定會比第二季度有所進步。

Yes. I would hope so.

是的。我希望如此。

No, no. Look, I share your frustration. Nobody likes to pick up an e-mail and see that this happened. But fortunately, we were able to plan for it.

不，不。我理解你的沮喪。誰都不願意打開郵件看到這樣的事情。但幸運的是，我們能夠提前做好計劃。

Our next question comes from Alan Ginsberg.

下一個問題來自艾倫·金斯伯格。

On the same topic that the previous caller just talked to you about.

還是剛才那位來電者跟你談的那個話題。

Yes, about the bankruptcy.

是的，關於破產的事。

Well, not really. It's more like multiple suppliers. For example in this promising area in architectural where you have retrofits, do you just have one supplier? I mean, what would happen if they had a problem? Why wouldn't you have multiple suppliers?

其實不然。更像是多家供應商。例如，在建築改造這個前景看好的領域，是否只有一個供應商？我的意思是，如果他們遇到問題怎麼辦？為什麼不選擇多個供應商？

We do and that's exactly why we were able to transition the business with Ferrari seamlessly because of that. I think one of the thins -- and I'll talk about this more in my closing remarks. But I think one of the things that we were very successfully able to do is minimize risk to investors in our company, okay? If this happened to one of our competitors, View or Sage or Halio, where they lost a major, major either source of supply or customer; that s it. It's game over, nothing happens, they go bankrupt.

的確如此，也正因如此，我們才能與法拉利順利完成業務交接。我認為其中一點是——我將在總結發言中詳細討論這一點。但我認為我們非常成功地做到的一件事是最大限度地降低了公司投資者的風險，好嗎？如果這種情況發生在我們的競爭對手 View、Sage 或 Halio 身上，導致他們失去了一個非常重要的供應來源或客戶，那就結束了。遊戲結束了，什麼事都沒發生，他們破產了。

And they did, last year, two of them went bankrupt, okay?

去年，他們中的兩人破產了，懂嗎？

That doesn't have anything to do with Research Frontiers. You always bring that up.

這和研究前沿組織沒有任何關係。你總是提起這件事。

Alan, but our business model and the fact that we do have a diversified group of licensees allows us to adjust to these things that would kill other companies. We were able to shift this over so that there was no supply disruptions. It may have an accounting blip and not a cash flow blip for us, but we were able to do it. And I think that's one of the hallmarks of our technology and our company is that it's a low risk way of investing in the smart glass market. And if you look at the history, look at the last 30, 40 years, all of these companies that have tried to do what View and Sage and Halio did are roadkill on the side of the road.

艾倫，但我們的商業模式以及我們擁有多元化的授權商群體這一事實，使我們能夠適應這些足以摧毀其他公司的事情。我們成功地轉移了這部分工作，因此沒有造成供應中斷。雖然這可能只是帳面上的小問題，而不是現金流上的小問題，但我們還是做到了。我認為，我們公司的技術和產品的一大特點是，投資智慧玻璃市場是一種低風險的方式。如果你回顧歷史，看看過去 30、40 年，所有試圖效仿 View、Sage 和 Halio 的公司，都成了路邊的過路動物。

They don't have the same risk management approach that we do. We're very good at this.

他們的風險管理方法和我們不一樣。我們非常擅長這個。

But you only have one supplier of film, Gauzy. Why wouldn't you get another one to mitigate what you're talking about in that area?

但你們只有一家薄膜供應商，Gauzy。為什麼不再買一個來緩解你所說的那個方面的問題呢？

If I thought there was a need for it just like when I thought there was a need to find a replacement for the licensee that went bankrupt, we would act on it.

如果我認為有必要這樣做，就像當初我認為需要為破產的被授權人尋找替代者一樣，我們就會採取行動。

Our next question comes from Bruce Danny.

下一個問題來自布魯斯·丹尼。

Saudi Arabia, as you probably know, has a gigantic project called the 1,000 Mile City.

你可能知道，沙烏地阿拉伯有一個名為「千里城」的龐大計畫。

I would love to get into that and we've tried and we are trying. It's a cool project. It would be very interesting to see that. I think it's going to be one of the seven wonders of the world at some point.

我很想參與其中，我們也嘗試過，現在也嘗試過。這是一個很棒的項目。那一定很有意思。我認為它在某個時候會成為世界七大奇蹟之一。

Well, they're saying they want it done by 2030.

他們說希望在2030年之前完成。

If you throw enough money at it, you can do that and if we have a retrofit, you can make it smart.

只要投入足夠的資金，就能做到這一點；如果我們進行改造，就能讓它變得聰明。

Well, I think you should try and get in on the ground floor.

我認為你應該爭取從一開始就參與。

Absolutely and the top floor. We have a presence in Saudi Arabia.

當然，而且是頂層。我們在沙烏地阿拉伯設有分公司。

Our next question comes from Neal Goldman.

下一個問題來自尼爾‧戈德曼。

Couple of questions, Joe. First of all, will the third quarter have a bump up because of the new licensee since you didn't lose any sales, but they didn't meet the minimum number?

喬，我有幾個問題。首先，由於新加盟商的加入，你們的銷售額沒有下降，但他們的銷售額沒有達到最低要求，那麼第三季的業績會不會因為新加盟商的加入而有所增長？

Yes, to the extent that they exceed their MAR for the year and they have a pretty high MAR. So I'm not sure how much of a bump it would be because they still have to exceed it. But if they exceed it, it will definitely bump it up there. And then we have other projects too that we've already been -- some licensees report early. We know that there's Q3 revenue coming from automotive too.

是的，只要他們超過年度最低保證金額 (MAR)，而他們的最低保證金額 (MAR) 就相當高。所以我不太確定這會有多大的提升，因為他們仍然需要超過這個目標。但如果他們超過這個數值，那麼排名肯定會上升。此外，我們還有其他一些計畫已經啟動——一些被授權者會提前報告進度。我們知道第三季汽車產業也會帶來收入。

Okay. And in terms of the architecture, when you're dealing with large commercial buildings and you don't have to use the scaffolding, is there a major even cost savings separate from the heat issue and --

好的。就建築設計而言，如果是大型商業建築，無需使用鷹架，除了隔熱問題之外，是否還能節省一大筆成本？--

Sure, yes. So anybody that's lived in a major city, Neal, is alluding to the scaffolding that you have to put up anytime you work above the sidewalk so that windows, bricks and other things and tools don't fall on pedestrians. It's expensive to put that up. First of all, there's materials and there's labor unions and there's disruption to the business. If you're a retail outlet on the ground floor of one of these buildings, your business suffers.

當然可以。所以，尼爾，任何在大城市生活過的人，都指的是人行道上方工作時必須搭建的鷹架，這樣窗戶、磚塊和其他物品和工具就不會掉落到行人身上。安裝這個很貴。首先，有原料問題，有工會問題，會對企業營運造成乾擾。如果你在這些建築物的一樓經營零售店，你的生意就會受到影響。

The only people that like the scaffolding is me when it's raining because I could take my dog outside and he doesn't get wet. But other than that, we haven't figured out any benefit to it and it's very disruptive. So being able to avoid it by being able to put the smart glass from the inside is a huge, huge benefit.

下雨的時候，我唯一喜歡鷹架的人就是我了，因為我可以帶我的狗出去玩，它不會被淋濕。但除此之外，我們還沒有發現它有任何好處，而且它非常具有破壞性。因此，能夠從內部安裝智慧玻璃來避免這個問題，是一個非常巨大的優勢。

In the past you've indicated that the second half you'll start seeing revenues from architectural.

你過去曾表示，下半年你將開始看到建築設計的收入。

Right. From the retrofit specifically, yes.

正確的。具體來說，就改造而言，是的。

Yes. And you're starting to see that?

是的。你開始明白這一點了嗎？

Yes. And what we're seeing, Neal, is that there just like investors have a different entry point into anything, architects and designers and facility managers also have different entry points. Some are going to want full energy data and things like that and some are saying intuitively I think this is going to make a big difference and I'm going to put it in now without that. And you'll start to see those are the early adopters. And I think the government also will see it as an early adoption thing and that could be a huge customer.

是的。尼爾，我們看到的是，就像投資者進入任何領域都有不同的切入點一樣，建築師、設計師和設施管理人員也有不同的切入點。有些人想要完整的能量數據等等，而有些人則直覺認為這會產生很大的影響，所以我現在就把它放進去，而不用那些數據。你會發現，這些人都是早期採用者。我認為政府也會將其視為早期採用者，而政府可能是龐大的客戶群。

I mean the GSA is I think the largest customer in the world.

我的意思是，美國總務署（GSA）我認為是世界上最大的客戶。

What's the capacity of your supplier of that in dollars?

你的供應商能提供多少美元的貨源？

They can do -- their projection is high tens of millions in year one in sales and I know they have expansion room to do more if they needed to. And the profit on this is high enough where they can easily replicate what they're doing.

他們完全可以做到——他們預計第一年的銷售額將達到數千萬美元，而且我知道如果需要的話，他們還有擴張的空間。而這種做法的利潤非常高，他們很容易就能複製自己的做法。

Okay. So you're saying that it's starting now. You're getting some orders and this is the first year. So let's say, the second half of '25 is the first half of the first year. So you're saying tens of millions between now and June of '26 and then it ramps from there significantly.

好的。所以你的意思是現在就開始了？你們已經接到一些訂單了，而且這還是第一年。假設 2025 年下半年是第一年的上半年。所以你的意思是，從現在到 2026 年 6 月，數量將達到數千萬，然後從那時起數量將大幅增加。

Yes. Although I wouldn't count now as the starting gate because we still -- like I said, there's a continuum of adopters that are going to want lay energy data in, which takes several months to get and things like that. So you'll start to see early adopters come in probably now. But I think when we look at that high tens of millions in sales that are being projected by the licensee, he's talking about when they have everything kind of wrapped up in a bow. So you'll see revenues this year I believe, but you'll see the big revenues start when we have it all tied up and that may be several months before that starting gun happens.

是的。雖然我不會把現在視為起點，因為我們仍然——就像我說的，還有一群用戶想要獲取能源數據，而這需要幾個月的時間才能獲得，諸如此類的事情。所以你現在可能會看到一些早期用戶開始湧入。但我認為，當我們看到被授權方預測的數千萬美元的銷售額時，他指的是一切都安排妥當之後的情況。所以我相信今年你們會看到收入，但真正的大額收入要等到所有環節都安排妥當之後才會開始，而這可能比真正開始盈利的時間早幾個月。

Okay. I assume you'll announce the first meaningful architectural wins using the retrofit.

好的。我猜你們會宣布利用改造方案所取得的首批有意義的建築設計成果。

Yes. And I think that unlike automotive where they're very secretive, I think in architectural they'd be very proud to talk about smart windows because it becomes a building feature that helps them sell or rent space.

是的。我認為，與汽車行業非常注重保密不同，建築業會非常樂意談論智慧窗戶，因為它成為了一種建築特色，有助於他們出售或出租空間。

Our next question comes from Bill Denny.

下一個問題來自比爾·丹尼。

Joe, it's my second question today. I'm a shareholder. And I did hold shares about 26 years ago for some time. So I'm back. My quick question is regarding the automotive industry, I hear a lot about the sunroofs.

喬，這是我今天的第二個問題。我是股東之一。大約26年前，我確實持有過一段時間的股票。我回來了。我的問題是關於汽車行業的，我經常聽到人們談論天窗。

Is the SPD technology also being used in like windows and the doors and around the car?

SPD技術是否也應用於車窗、車門以及汽車周圍？

Yes. So that's a great question, Bill. The primary market up until now has been sunroofs because you have a really demonstrable benefit, 18-degree difference in temperature just by putting it in the sunroof and getting a couple of extra inches of headroom by avoiding the pull across shade and all these other things that increase the comfort, stability and energy efficiency of the car because of just the sunroof. Now Mercedes this past quarter introduced a combination SPD-PDLC in their luxury van and that's on the side windows. And some of the things that we have in development at other automakers are in different areas of the car than even that.

是的。比爾，你問得好。到目前為止，天窗一直是主要的市場，因為它的好處顯而易見：只需打開天窗，車內溫度就能降低 18 度，而且由於避免了拉動遮陽簾，還能獲得額外的幾英寸頭部空間，所有這些優點都能提高汽車的舒適性、穩定性和能源效率。上個季度，梅賽德斯-奔馳在其豪華廂型車中推出了 SPD-PDLC 組合技術，該技術應用於側窗。而我們在其他汽車製造商那裡正在研發的一些技術，甚至涉及汽車的其他領域。

So it will be interesting. I mean, I've made the analogy in the past, but it's maybe becoming a little bit more close to reality that I view what we have almost as like having 250 patents on stainless steel. We haven't figured out all the things that stainless steel is going to be used in, but having the patents on the material is very, very valuable. And I see SPD SmartGlass is just like stainless steel. It's a material that enables people to do things and that becomes a very valuable asset to have as a company.

那將會很有趣。我的意思是，我以前也做過類似的比喻，但現在看來，我們所擁有的幾乎就像擁有 250 項不銹鋼專利一樣，這可能越來越接近現實了。我們還沒有完全弄清楚不銹鋼將被用於哪些領域，但擁有這種材料的專利是非常非常有價值的。我發現 SPD SmartGlass 就像不銹鋼一樣。它是一種能夠幫助人們做事的材料，對於公司而言，擁有它就成為了非常寶貴的資產。

Okay. And one quick follow-up. The residential market, I'm a real estate agent. What's the growth like on residential homes across the country?

好的。還有一個後續問題。我是一名房地產經紀人，主要從事住宅房地產市場。全國住宅市場的成長情況如何？

Well, we're getting inquiries from some really, really high-end homes. We're also getting lower end -- not lower end, but smaller projects. But in terms of focus if we're going to put it in residential homes, it will probably be the bigger ones first and then it will move itself there. It's not a cost issue. It's really just a focus issue because if you have office buildings where there's one decision maker, but thousands of windows, you're going to pursue that first.

我們收到了一些來自非常非常高端住宅的諮詢。我們也開始接到一些低階項目──不是低階項目，而是規模較小的項目。但就重點而言，如果我們要將其應用於住宅，可能會先從大型住宅開始，然後逐漸推廣到其他住宅。這不是成本問題。這其實只是一個關注點的問題，因為如果你有一棟辦公大樓，只有一個決策者，但卻有成千上萬扇窗戶，那麼你一定會先考慮這個決策者。

If you have large homes that are somewhat billboards for the technology because of how nice they are, you would focus on that as well to some extent and then you work your way into the mainstream.

如果你擁有一些大型住宅，這些住宅因為外觀精美而成為某種技術的廣告牌，那麼你也會在一定程度上關注這一點，然後逐步進入主流市場。

Our next question comes from Jared Albert.

下一個問題來自 Jared Albert。

I got a couple of real quick questions. I don't want to go on and on. But the 1Q '25 was a nice bump, the 4Q '24 was pretty bad and this quarter obviously we see that it has to do with the EGP bankruptcy at least in part. How much of 1Q was stockpiling by Ferrari ahead of this bankruptcy?

我還有幾個很簡短的問題想問。我不想一直說下去。但 2025 年第一季出現了一個不錯的成長，2024 年第四季則相當糟糕，而本季顯然與 EGP 破產至少有部分關係。法拉利在破產前囤積了多少第一季的股票？

I think they started long before that. We've been talking to them for quite a while about what the contingency plans would be if something like that happened. We keep our ears on the ground with everybody that's important to try to make sure that there aren't disruptions. And I think up until a week before the bankruptcy, they thought they were going to reorganize and sell the company. So just with the customers pulling out, it became something that wasn't practical for them.

我認為他們開始的時間遠早於此。我們已經和他們討論了很長一段時間，如果發生類似的事情，他們的緊急應變計畫是什麼。我們密切注意所有重要人士的動向，並努力確保不會有任何干擾。我認為直到破產前一周，他們還認為他們會重組並出售公司。由於顧客紛紛撤離，這對他們來說就變得不切實際了。

So with the current automotive mix kind of ceteris paribus in terms of architecture, somewhere between 4Q and 1Q is kind of the steady state run rate for fee income. That's kind of where we're at now?

因此，在目前汽車產業架構方面，其他條件不變的情況下，費用收入的穩定運行率大概在第四季到第一季之間。我們現在的狀況大概就是這樣？

I don't know if you could say there's a steady state. Fourth quarter is always low for automotive because you're trying to clear things out of the showroom. I don't think Ferrari had that problem by the way. I think they sold anything that they put out there and it wasn't an issue. And some carmakers, I don't think Ferrari had to do this, but some carmakers stopped production.

我不知道是否可以說是存在一種穩定狀態。汽車產業的第四季總是比較淡季，因為大家都在努力清理展廳裡的庫存。順便說一句，我認為法拉利並沒有遇到這個問題。我認為他們推出的產品都賣出去了，所以這不成問題。有些汽車製造商，我覺得法拉利不必這樣做，但有些汽車製造商確實停止了生產。

Jaguar for example wasn't selling into the U.S. for a while until the tariff situation stabilized, but it didn't affect us. But Ferrari, they were merrily selling this roof and making a good profit on it.

例如，捷豹汽車在關稅情況穩定之前有一段時間無法向美國銷售，但這並沒有影響到我們。但是法拉利卻樂此不疲地出售這款車頂，並從中賺取了豐厚的利潤。

Okay. In terms of the Corvette, I was glad you willing to mention it. It has an intermediate state. I noticed that Toyota Crown now has an intermediate PDLC state, but it looks like it just varies behaves. It sounds from what you're saying that you're guiding against the Corvette even though it's a General Motors product.

好的。至於科爾維特跑車，我很高興你願意提及它。它具有中間狀態。我注意到豐田皇冠現在有一個中間的PDLC狀態，但看起來它的行為有所不同。聽起來你好像在反對購買 Corvette，儘管它是通用汽車的產品。

Is that the takeaway that we should not expect the Corvette to be using SPD [indiscernible] I would say.

所以我的結論是，我們不應該指望 Corvette 使用 SPD（聽不清楚）嗎？

Like I said, it's a mystery. I'm hearing different things out in the industry about it. The GM Authority had an article where they said it's a technology similar to what's in the Cadillac, which can mean it's the same thing or it can mean it's a different one, but sort of looks like it. It's like the difference between Kosher and Kocher Style. And then I guess the other part of it is probably I would have seen in our royalty reports some mention of this unless it's such a small amount that it didn't hit the reporting thresholds.

正如我所說，這真是個謎。我在業界聽到了不同的說法。GM Authority 曾發表文章稱，這項技術與凱迪拉克的技術類似，這可能意味著它們是同一種技術，也可能意味著它們是不同的技術，但看起來有點像。這就像猶太潔食和猶太風味之間的區別一樣。另一方面，除非金額太小以至於沒有達到報告門檻，否則我應該會在我們的版稅報告中看到一些相關內容。

But I don't think it's us. I think that will be in other cars outside of Cadillac within GM, but I don't think that's us. And as far as the intermediate states, yes, just to go back to the other question, you can do intermediate states with PDLC too. It doesn't look good at all because what you're doing with PDLC is increasing the haze levels and the light scatter. So an intermediate state would look like a dirty window.

但我認為不是我們。我認為通用汽車旗下除凱迪拉克以外的其他車款也會採用這種技術，但我覺得我們凱迪拉克不會採用。至於中間狀態，是的，回到之前的問題，你也可以使用 PDLC 來實現中間狀態。看起來一點也不好，因為你使用 PDLC 會增加霧度和光散射。所以，中間狀態看起來就像一扇髒兮兮的窗戶。

You know what I mean.

你知道我的意思。

Yes, I understand. Moving on to LTI AIT retro. Should I be concerned that their website is still down in terms of putting in orders for this stuff or am I wrong? The link in the PR is dead and the link from the LTI site doesn't really go anywhere.

是的，我明白了。接下來是LTI AIT回顧。他們的網站仍然無法訪問，導致我無法訂購這些東西，我是否應該擔心？還是我多慮了？新聞稿中的連結已失效，LTI 網站上的連結也無法存取。

Yes. I don't think you should read anything into that. I don't know. But I think that the initial projects are going to be direct sales from people they know like the government. They already supply the U.S.

是的。我覺得你不應該對此做任何解讀。我不知道。但我認為最初的項目將會是直接向他們認識的人（例如政府）銷售。他們已經向美國供貨。

government. So I think that when they have everything ready with the data and everything is tied up in a bow, they probably will reactivate that.

政府。所以我認為，當他們準備好所有數據，一切就緒之後，他們可能會重新啟動它。

Okay. Last question, Joe, very last question. Like the other Jared, we're all disappointed if you called in. But my question is at this point not your insight from being the CEO, but your personal opinion. My personal opinion is SPD is not yet good enough.

好的。最後一個問題，喬，真的是最後一個問題。和其他 Jared 一樣，如果你打電話進來，我們都會很失望。但我現在想問的不是你作為CEO的見解，而是你的個人意見。我個人認為SPD還不夠完善。

PDLC is good enough to get into these models. But we have --

PDLC 的性能足以滿足這些模型的要求。但是我們有--

That's not my personal opinion.

那不是我的個人觀點。

That's my personal opinion. Okay. Let me finish and I will get off the phone to let the big guys have their time. My basic point is that with the sole supplier, you' talked about themselves a sole supplier and they have to protect their margins. But you look at a project like the CLA Shooting Brake and you think there's probably a good, better, best upsell, downsell kind of model internal to them.

這是我的個人意見。好的。等我說完就掛斷電話，讓那些大人物們好好談談。我的基本觀點是，作為唯一供應商，他們必須保護自己的利潤空間。但如果你看看像 CLA Shooting Brake 這樣的項目，你會覺得他們內部可能存在著一種好的、更好的、最好的升級銷售、降級銷售之類的模式。

And so --

所以--

Yes. I'm glad you mentioned because I think -- no, no, no, I think I'd like to actually -- it maybe is where you were going with your question. If not, I apologize for adding more information to the mix, but I think more information is always good. So with the CLA Shooting Brake, we've actually had specific discussions with Mercedes and they were trying to get that in at a particular price point, which wasn't going to happen with SPD. The car itself had to be at a certain price point because of who they're competing against.

是的。很高興你提到了這一點，因為我覺得——不，不，不，我覺得我其實想——這可能就是你提問的真正意義。如果不是，我很抱歉補充更多信息，但我認為信息越多越好。所以對於 CLA Shooting Brake，我們實際上與梅賽德斯進行了具體的討論，他們試圖以特定的價格點推出這款車型，而 SPD 無法做到這一點。由於競爭對手的不同，這款車的價格必須控制在一定範圍內。

It also was very strategically important because the high-end electric vehicles within Mercedes -- and I'm not sharing anything that hasn't been talked about in automotive news or anything like that.

這在策略上也非常重要，因為梅賽德斯-奔馳的高端電動車——我說的這些在汽車新聞或其他類似領域都已經被討論過了。

The high-end electric vehicles at Mercedes, the EQS, the replacement for the S-Class on the electric basis wasn't very successful and they've said that. And what Mercedes told us is Joe is going to be disappointed. But we know that SPD is a better technology. We know that it performs much better and it's going to do what we need it to do. But it's not going to come in at the price point that is going to allow us to achieve our strategic objectives with the Shooting Brake because of the price.

梅賽德斯的高端電動車 EQS，作為 S-Class 轎車的電動替代車型，銷量並不理想，他們也承認了這一點。梅賽德斯告訴我們，喬會很失望的。但我們知道SPD是一項更好的技術。我們知道它的性能要好得多，而且它能夠滿足我們的需求。但由於價格原因，它的價格無法讓我們實現透過 Shooting Brake 車型實現的戰略目標。

And I was told that PDLC for that and maybe it was a subsidized price because someone is trying to get either volume business or something or get their foot in the door at Mercedes was 75% less than the SPD.

有人告訴我，PDLC 的價格（可能是補貼價格，因為有人想獲得大量訂單或其他什麼好處，或想藉此機會打入梅賽德斯市場）比 SPD 的價格低 75%。

So going back to your question about is at that price differential if it's sustained, it's going to be tough for somebody to put SPD in when they don't know if the PDLC will kind of perform what it's supposed to do in a general way if I could be very vague because they're very wishy-washy about why they put PDLC in these cars. Rivian put it in. If you sat in one, you'd be unimpressed. Denny I think mentioned before, he sat in an Audi and he was unimpressed with the PDLC. I sat in the ID.4 and the ID.7 and it didn't look very good.

所以回到你的問題，如果價格差異持續下去，那麼對於那些不知道PDLC是否能達到預期效果的人來說，安裝SPD將會很困難。如果我不能說得非常含糊一些，因為他們對於為什麼要在這些車上安裝PDLC的說法非常含糊。Rivian公司安裝的。如果你坐進去體驗一下，你一定會覺得很普通。丹尼之前好像提到過，他坐進一輛奧迪車裡，對PDLC（個人駕駛輔助控制系統）並不滿意。我坐進了 ID.4 和 ID.7，感覺都不太好。

It's not something that --

這不是什麼…--

I've been in an IX and I've been in an S-Class. So I understand that. But my point is and I know I said last question, but I'm going to leave you with this thought because the issue is not price. The issue is the Venn diagram that leads to value. And at this point SPD is too expensive.

我坐過賓士IX，也坐過賓士S-Class。我明白了。但我的意思是，我知道我說過這是最後一個問題，但我還是要留給你們思考一下，因為問題的關鍵不在於價格。問題在於通往價值的維恩圖。而且目前SPD的價格太貴了。

It doesn't offer enough performance advantage over PDLC or it's just too difficult to source for a variety of reasons to that equation.

它相對於 PDLC 而言性能優勢不夠明顯，或者由於各種原因難以獲得。

Not difficult to source, and the price I think is the issue here.

貨源不難找，我認為價格才是問題。

But like, for example, Gauzy has put out a pretty [LAM] stack that I assume reduces some of the issues around refraction and makes it cheaper. So you kind of keep chipping away at the various issues. Maybe you'll get there. And that was really what I was going to ask you about. That was actually the thrust of my question.

但例如，Gauzy 推出了一款相當不錯的 [LAM] 堆棧，我認為它減少了一些與折射有關的問題，而且價格更低。所以你就得一點一點解決各種問題。或許你會到達那裡。而這正是我要問你的問題。這其實正是我問題的重點。

So that's your answer is that there's an incremental improvement to get down to a price where this thing can actually go into stuff.

所以答案是，需要逐步改進才能降低價格，讓這東西能真正應用在各種產品上。

I don't think it's that rational. I think that every time you land the high-end car, you get your cost down on the low-end cars. So I think that's just -- we just keep approaching that point where the performance differential between SPD and PDLC becomes much more important favoring SPD as we get the price down. So it's something we're all working on.

我覺得不太理性。我認為，每次你買到高端車，你就能降低購買低階車的成本。所以我覺得，隨著價格的降低，我們正不斷接近 SPD 和 PDLC 之間的效能差異變得更加重要的臨界點，SPD 將更具優勢。所以這是我們都在努力的事情。

Well, I mean we're the same stable of cars all these years.

嗯，我的意思是，這麼多年我們用的都是同一批車。

Our next question comes from John Nelson.

下一個問題來自約翰·尼爾森。

Joe, I might have missed this, but is the retrofit expected to launch in the third quarter or the second half of this year?

喬，我可能錯過了，但改造計畫預計在今年第三季還是下半年啟動？

Second half. And when I say launch, you'll probably have a soft launch with some key customers and then a bigger launch when you have the data all tied up in a bow.

下半場。我說的發布，可能是指先針對一些重要客戶進行試發布，然後在資料整理完畢後進行更大規模的發布。

At this time we have no further questions. I'll turn it back over to our host for some closing remarks.

目前我們沒有其他問題。我將把時間交還給主持人，請他作總結發言。

Okay. Thanks and thanks, Erica. And if we haven't fully answered any questions that were either e-mailed to us or in our presentation or in the Q&A, just call or e-mail us. We're happy to talk to you.

好的。謝謝，也謝謝你，艾莉卡。如果您透過電子郵件、簡報或問答環節中提出的任何問題我們仍未完全解答，請致電或發送電子郵件給我們。我們很樂意與您交談。

I'm going to make a few closing remarks. I think it's pretty clear not only from us, but from the history of what's happened to our competitors, we're in a tough industry, but also as history has shown, we're tougher. We know that there's never a straight line to success and because of this, we built our business model to reduce risk to our shareholders as new projects for our technology come online and generate more revenue. We have the staying power.

我最後再補充幾點。我認為，不僅從我們自身，而且從我們競爭對手的過往經歷來看，這一點已經很清楚地表明，我們身處一個競爭激烈的行業，但歷史也證明，我們更加堅韌。我們知道通往成功的道路從來都不是一帆風順的，因此，我們建立了商業模式，以降低股東在我們技術的新項目上線並產生更多收入時所面臨的風險。我們擁有持久力。

We buttressed this by investing and having a robust and high-performing technology that controls light and that has been proven itself in tens of thousands of cars, aircraft, boats and buildings. We face competition from the Chinese market mostly from PDLC, which has inferior performance characteristics when used for anything other than privacy or projection applications. We face competition from electrochromics in small surface application areas such as rearview mirrors and to some extent aircraft windows although we're in Boeing and Airbus now. So I think we're starting to do very well there.

我們透過投資和擁有強大而高性能的光控制技術來鞏固這一點，該技術已在數萬輛汽車、飛機、輪船和建築物中得到驗證。我們主要面臨來自中國市場的競爭，主要來自PDLC，PDLC除了用於隱私或投影應用之外，在其他任何應用領域都具有較差的性能特徵。我們在後視鏡等小型表面應用領域以及一定程度上在飛機舷窗領域面臨著電致變色技術的競爭，儘管我們現在已經進入波音和空中巴士市場。所以我覺得我們在這方面做得越來越好了。

But we also have superior performance head-to-head in every high volume area such as sunroofs, panoramic glass roofs, windows for homes, offices, apartment buildings, yachts and cruise ships and museums; high volume, high surface area where electrochromics are just going to get too slow to work and work well. We're not the low-cost alternative to these other technologies. We're the high performance alternative. We don't have to be the low-cost alternative although lower the cost, the better for everybody. And if you look at many technology-based products, there are low performance, low-cost alternatives that exist.

但我們在所有大批量領域，例如天窗、全景玻璃屋頂、住宅、辦公室、公寓大樓、遊艇、遊輪和博物館的窗戶，都擁有卓越的性能；在這些大批量、大表面積的領域，電致變色材料的速度太慢，無法正常工作。我們並不是其他技術的低成本替代方案。我們是高效能的替代方案。我們不必成為低成本的選擇，雖然成本越低對大家都好。如果你觀察許多科技產品，你會發現有很多性能低、成本低的替代品。

I'll give you some examples near and dear to my heart. The automotive industry; take tires, brakes, headlights, infotainment systems or in the consumer electronics; smartphones. History in all these categories show that the high end is the most profitable and also the most enduring because high performance products are more likely to withstand inevitable competition from new entrants. We also have efficiently managed our capital expenditure requirements by keeping operational expenses low and licensing our SPD SmartGlass technology to larger companies who make these capital expenditures and build factories, establish sales networks, employ people and cast a wide footprint worldwide.

我舉幾個對我來說意義非凡的例子。汽車產業，例如輪胎、煞車、頭燈、資訊娛樂系統；或消費性電子產品，例如智慧型手機。所有這些類別的歷史都表明，高端產品利潤最高，也最持久，因為高性能產品更有可能經受住來自新進入者的不可避免的競爭。我們還透過維持較低的營運費用，並將我們的 SPD SmartGlass 技術授權給進行這些資本支出並建造工廠、建立銷售網絡、僱用員工並在全球範圍內廣泛開展業務的大公司，有效地管理了我們的資本支出需求。

Through their efforts, we benefit from these activities. And this quarter showed the importance of diversification. We have a number of licensees. Sometimes they overextend themselves. Sometimes the industries they serve go through ups and downs that they cannot weather and sometimes they lose key customers.

他們的努力使我們受益於這些活動。本季凸顯了多元化的重要性。我們擁有多家特許經營商。有時他們會過度擴張。有時他們所服務的行業會經歷他們無法承受的起伏，有時他們會失去重要的客戶。

When this has happened to our competitors such as View and Halio, they went bankrupt. When this happens to one of our licensees such as the one in Europe supplying Ferrari, we simply diverted this business to another one of our many fine licensees and production continued. And with a 10% to 15% royalty based on revenues from SPD SmartGlass products by our licensees in diverse industries, we're able to capture profitable business and weather the cyclical nature of the industries we're in.

當我們的競爭對手 View 和 Halio 遇到這種情況時，它們都破產了。當這種情況發生在我們的授權經銷商（例如為法拉利供貨的歐洲經銷商）身上時，我們只需將這項業務轉移到我們眾多優秀授權經銷商中的另一家，生產就能繼續進行。我們向各行各業的授權商收取 10% 至 15% 的 SPD SmartGlass 產品收入分成，從而能夠獲得盈利業務，並抵禦我們所在行業的周期性波動。

Research Frontiers created the smart glass industry and our leadership role has helped shape it and we will continue to do so. We appreciate everyone's support as we move forward and continue to expand the use of products using our SPD light control technology to make the world better, more energy efficient, safer and enjoyable. Thank you all very much.

Research Frontiers 開創了智慧玻璃產業，我們的領導地位幫助塑造了這個產業，我們將繼續發揮這樣的作用。我們感謝大家的支持，我們將繼續前進，並不斷擴大使用我們 SPD 光控制技術的產品的應用範圍，使世界變得更美好、更節能、更安全、更令人愉悅。非常感謝大家。

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

今天的電話會議到此結束。謝謝各位的出席。