Good afternoon, and welcome to Research Frontiers investor conference call to discuss the third quarter 2025 results of operations 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 of 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. [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] Now I'd like to turn the conference over to Joe Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

Thank you, and hello, everyone, and welcome to our third quarter of 2025 investor conference call. Automotive and total royalties were up year-over-year and sequentially when we back out onetime events from 2024. As of the end of the third quarter, we remained debt-free with over $1.1 million in cash and our working capital position remains solid. Our architectural retrofit system debuted this week at GlassBuild 2025 in Orlando. The show ended earlier today, so my voice may be a little horse from speaking with customers since Tuesday. We had an outstanding response. John Nelson had asked by e-mail a few questions about the show. What was the response? Were there any orders obtained for either the retrofit or the IGU products? We had a steady stream for all 3 days of interested parties, John, and they were amazed at SPD's performance and the ease of installation and elegance of the design of the system. Full spec sheets for different configurations of SPD windows for architects, designers and facility managers were handed out. John also asked, how are you planning to market these products and to whom were any orders obtained? Initial customers are expected to be the government buildings through AIT Group's status as an approved GSA vendor, embassies across the world and commercial buildings such as high rises and office buildings. Homes are possible as well, and we are working together on some high-end projects there as well. We've also identified and are discussing specs for at least 2 major and highly visible projects. The idea for GlassBuild and all of the shows and conferences we attend is to get the conversation started and for AIT Group, Gauzy and RFI to have real-world demonstrations underway. We and our licensees plan to build on that momentum through major trade…

[Operator Instructions] Our first question comes from James Leo of RBC.

So I mean this call is kind of like Groundhog Day. I mean it's the same call over and over again. I look at the 5-year growth rate of the company at minus 3%. And I'm just curious where are all these car sales that you've been saying we're going to be coming?

Okay. Well, I try to go into a little bit of it, James. Ferrari has been doing very, very well for us, increasing.

We know about Ferrari already, right?

Yes. But the accounting treatment, when you had a licensee go bankrupt in the second quarter and another licensee step in and have to meet their minimum royalties before you can book new income as part of it. But I expect -- and in my closing remarks, I'm going to talk about some exciting things about what's coming in the automotive.

I mean, how many quarters ago did you announce that there was going to be a high production car coming out? Was that 2 years ago?

And we'll be talking about that. Things take a while in the automotive industry, and we do it right as I think history has demonstrated. But if you wouldn't mind holding the rest of your question for the closing remarks, and if I haven't answered them, you could always call me. I'm happy to talk to you.

Next, we'll hear from John Nelson, an investor.

Joe, just an idea kind of afterthought. Since the retrofit product is so, I would call it, revolutionary and since it is -- you've indicated it is production ready, would it make any sense to see if any of the new shows or podcast would be interested in profiling your product?

Yes. And we actually have a couple of those in discussion right now. What I want to do, I mean, the best way to experience the retrofit, John, is to actually see it work because it's incredibly easy and elegant. I mean it's -- they did -- the AIT Group, which owns LTI, our licensee, has really just worked out so many, what I'll call subtle details. For example, you pop this into a window frame and you want to make sure that you're getting a good seal. You want to create an air space to create even better energy efficiency. You want to make sure that there's no moisture in there that gets trapped. So a lot of things and of course, the wiring. And we actually are developing several different methods of wiring, including what I think is really, really exciting and quite doable, which is an autonomous window. What I mean by that is it's self-powered. So you pop this into the window frame and you don't have to call an electrician and everything is there. When I was at the show in Orlando, as soon as I walked in, I was handed a maybe a 1.5-inch long key fob remote control. It's a 10-volt remote control, no wires, and I was able to control the SPD windows and dim them and do all of the things. And this was off-the-shelf controller, which means you can actually substantially reduce cost by not requiring specialty electronics and also more easily integrate into building control systems. And a lot of people use [ Lutron ] systems. So the fact that it works with the low-voltage Lutron stuff is very important, too. So these are the kind of things that we want to get -- make more visual for people so that people could actually see how easy it is to work with. And the hard work -- the harder you work, the easier and more elegant it looks, and there's been a lot of hard work that Gauzy and AIT Group and Research Frontiers has put into this to make it look easy.

Are AIT Group and/or Gauzy producing a video demonstrating the product's qualities?

Yes, they will be doing that and also appearing on podcasts and industry things. So we hope to have some nice visual assets to kind of help spread the word better. But also one of the things that I found interesting at the GlassBuild show, first of all, it's extremely well attended by the right people. But when you walked over to actually do the retrofit replacement where you took out -- in this case, they had a large and heavy bullet-resistant glass window. And you could just walk over. I saw one guy who was maybe half my size, easily put this in. So what -- where the real benefit is, and that's -- it's kind of an interesting observation is you can go in there in the course of a weekend and totally upgrade all the windows on a couple of floors of a building. And they did one. It wasn't SPD, but it was for the White House. And unfortunately, you can't close down the White House during the day. So they had -- they said they had to go in there at 5:00 and work till 2:00 a.m. and the secret service was there with their guns ready, but they were able to upgrade the executive building in the White House with this system. So it's quite, quite easy to work with. And we talked about distribution, which I think was one of your earlier questions about how we're going to market and deploy it. We talked about the marketing, but the deployment can be done with pretty much any installer. It's not a high skill to put this into a building once the system -- because of the system. So you could have groups of people in all over the country just go do this. And it's -- think of it as like a very elegant storm window maybe.

Next, we'll hear from an investor, Francis Altera.

The installation in the White House, what was the actual product that they installed?

That was an anti-eavesdropping bullet-resistant glass. So bullet-resistant, you understand, and they can now do Level 10, which means they could stop a 50-caliber round. And they had some there. I wouldn't recommend sending near this stuff when it's being shot at. But the anti-eavesdropping, you can shine a laser on a piece of glass. And if you and I were talking in a room, the glass would vibrate and someone from the outside might be able to shine a laser on the outside of the window and turn the vibrations back into sound, which is sometimes what's done in [ Spycraft ]. So this special film that AIT Group and LTI can put in their windows, and they've done it for the CIA and others. And for Embassies prevents that from happening.

Okay. It's pretty cool. Is that glass capable of having SPD on it?

Yes. So that's a great follow-up question. So the way it would work, let's say, I'm a facility manager or in charge of an Embassy somewhere, the building of an Embassy and we have existing glass, and I want to make it upgraded. What I would do is go on the GSA schedule, which is basically if you're a GSA-approved vendor, the government can buy directly from you. And it's almost like a Chinese menu. So the plan with this is to have AIT Group have a whole different bunch of options for the retrofit. So for example, if I particularly wanted bullet-resistant glass and I wanted bullet resistant up to Level 8 or Level 6 or Level 10, and I wanted it to have the anti-eavesdropping glass and I wanted it to have SPD. I just check a couple of boxes and order it. And that's the idea. It's like a Chinese menu. If I didn't want the anti-eavesdropping, but I want the bullet resistant in the SPD, I would just check those 2 boxes. And obviously, there's different prices for different things. But that's the idea is to make it very easy to deploy across the U.S. government.

How capable is the supply chain setup for the architectural market? And is it right now being focused on the blue tint or the black tint?

Right now, everything is focused on the existing commercial film, which is the blue, Sapphire Blue. One of the nice things about this retrofit system is, let's say, next year, the black comes out, and I happen to upgrade my Embassy or my building with the blue. And I said, money is no object. I really want the black. Someone comes in and within the course of a weekend can redo the whole building with the black. So it's really -- it makes it future-proof, which is great.

How far along is the black?

I'm going to talk about that in my closing remarks, but it's very, very far along.

Okay. Now you mentioned increasing sales with Ferrari. Whatever happened to Hyundai?

I'm going to talk about that also, but it's still moving forward.

Still moving forward. What caused them or whomever it was to totally not fall through -- follow through with the 2023 projection of us being greatly rewarded. What happened there?

My understanding is it was partly because of the car itself, not the SPD part. And I suspect that if you know that a black is coming and you're not -- you don't have a gun to your head to put the blue in the car, you might wait. Some automakers have expressed that and some haven't. So it might have unintentionally caused a slowdown in some areas. For the most part though, the sunroof for the most part, the sunroofs are fine with the blue. Things like side windows would prefer black.

Is there any difficulties in producing it? Do you have a good sense.

You mean the black or the retrofit? Or both?

Retrofit.

No. No, no. A matter of fact, AIT Group has an entire building devoted to just the framing system for the retrofit.

What about the supply...

That's building #3. And I'm told that building #4 is waiting when they -- if they hit capacity in building #3. So they have expansion room, too.

Yes, but that's the frame. What about prior -- the glass...

Well, they can do glass all the time.

The lamination.

Yes. That's what AIT and LTI do is they have a tremendous operation in -- outside of Tampa in Largo, Florida, and they have another tremendous and even larger operation in Pittsfield, Massachusetts.

Does [indiscernible].

They do it.

Lamination inhouse -- the lamination is done in-house with...

Yes, that's their specialty. Laminated Technologies, LTI is the part of AIT Group that does and has done SPD lamination for our licensees for a long time. They have very good experience.

So Gauzy makes the film, ships it to them and they do the rest.

They laminate it. Right.

Right.

And Gauzy was at the show yes, Gauzy was at the show along with AIT and of course, me.

On our last conference call with Gauzy, they never even discussed SPD. Why did they not even address that? I found that to be somewhat odd. Would you have any [indiscernible].

Yes, I've had this discussion with Gauzy. There's a very sexy high-growth part of their business. That's their switchable film division. And they have a very bread-and-butter part of their business, too, things like the Safety Tech division, which does the cameras for trucks and things like that. And as a new public company, I guess they were advised stick to kind of the more traditional way of presenting your company, which is here are your revenues in each division, here's your EBITDA in each division, and they have about 5 different divisions. So they devote some time to it. From a shareholder value standpoint, I believe they would do much better focusing on the growth areas like SPD. And I've expressed that to them, and I think they're getting that message.

[Operator Instructions] We have no questions at this time. I'll turn it back over to you for any additional or closing comments.

Okay. Thanks a lot. And if we haven't fully answered anyone's questions, either live or by e-mail, please feel free to e-mail us, and we're happy to talk to you. And I'm going to put a lot more detail in my closing remarks. So I think a lot of the questions that have been asked, you'll get a little bit more meat and flavor from it. Success rarely comes in a straight line and how you navigate that path frequently determines the outcome. And some of our competitors never even crossed the finish line and went bankrupt. On our past conference calls together, I've told you about our retrofit application and about how the automotive industry views SPD as the best performing and most reliable switchable tin technology. You're now seeing proof. What we discussed on earlier calls is materializing, sometimes not on the exact time frame we were told, but consistently moving forward. The architectural retrofit application was presented this week at the most prestigious U.S. Glass conference and will appear at additional major events worldwide. Our customers for the retrofit include both government and commercial entities. Direct adoption by the government offers a large opportunity. The GSA is the largest customer in the world, and the government also promotes use of SPD Smart Glass in the private sector through tax incentives, such as the Dynamic Glass Act, which provides 30% to 50% credits. Both of these should accelerate use, especially now with the ease and speed that an existing window can be made SPD Smart. Yesterday's announcement about the Detroit conference, which incidentally is the same venue where we landed Cadillac years ago, and my selection as keynote speaker and Chairman highlight our growing credibility in the automotive industry. Multiple markets and industries are now connecting the dots…

That concludes our meeting today. You may now disconnect.