Item
7.01 Regulation FD Disclosure
Hamburg,
Germany. April 1, 2019
– Over nine years ago Research Frontiers Inc.
(Nasdaq:
REFR)
and Vision Systems launched a development program together with one goal in mind: to bring the best experience possible
to passengers on aircraft. Joining this effort were Hitachi Chemical and Gauzy, which now have production lines in Japan, Israel
and
one now being built in Germany
, to produce SPD-Smart light-control film used in Vision Systems’ electronically
dimmable windows (EDWs).
This
week, at the Aircraft Interiors Expo (AIX) in Hamburg, visitors are seeing the results of an estimated $200+ million investment
by these companies to bring the best in comfort, enjoyment, safety and functionality to airline passengers. The performance and
reliability of these Vision Systems’ products surpass all other products on the market, including “electrochromic”
EDWs.
Carl
Putman, President of Vision Systems noted: “The airline industry’s experience with EDWs has clearly shown that passengers
do not want to wait minutes for their window to shade, want any electronic switching to be uniform and instant to avoid the “doughnut
hole” effect often noticed by passengers with electrochromic windows on aircraft, and want to reject unwanted heat and glare
from the cabin. In all of these categories, the SPD-Smart light control technology that we use in our Nuance and Noctis EDWs far
outperforms existing electrochromic technology in use on the Boeing 787.”
Joseph
M. Harary, President of Research Frontiers added: “Research Frontiers, Gauzy, Hitachi and Vision Systems have all made substantial
investments in world-class R&D, engineering and production facilities producing the highest performing smart window technology
in the world. And products using Research Frontiers’ technology have been reliably used for many years in some of the most
extreme environmental conditions on earth. When world class material science meets focused product engineering and a dedication
to producing ‘the best or nothing” for the world’s most discerning customers, the results become apparent.”
The
film used in Vision Systems’ EDWs, invented and patented by Research Frontiers, is the core component in SPD-SmartGlass
systems – allowing users to instantly, precisely and uniformly control the shading of glass or plastic, either manually
or automatically. Products using Research Frontiers’ SmartGlass technology are being used in tens of thousands of cars,
aircraft, yachts, trains, homes, offices, museums and other buildings. SPD-Smart light control technology is also the longest
EDW technology in use in the aircraft and automotive industries.
The
goal in commercial aviation is to improve the passenger experience, and meeting this major industry goal has been the SPD industry’s
collaborative focus of the technological and product development effort. The latest generation of Vision Systems’ SPD-Smart
EDWs offer potent and unique solutions to improving how passengers feel while in flight. By allowing passengers and flight crews
to precisely tune the tint of the SPD-Smart EDW to control the amount of daylight coming through windows, passengers continue
to comfortably enjoy views, rather than blocking their view with a shade. The system delivers other important passenger experience
benefits including a cooler and quieter cabin due to remarkable thermal and acoustic insulation.
Vision
Systems’ SPD-Smart EDWs Block More Heat Making the Aircraft Cabin More Comfortable
Transmission
of solar radiation through cabin windows has historically been the weak link in providing airline passengers relief from oppressive
outside elements including heat. Vision Systems SPD-Smart EDWs beat the sources of heat before they enter the cabin to improve
the passenger experience and to help operators reduce on-ground cooling requirements. “Electrochromic” technology
does not.
In
an aircraft, the increase in cabin temperature resulting from solar radiation entering through windows is most potent when on
the ground, and passengers suffer as a result. Cabin warming results from IR radiation and from visible light entering through
windows, in approximately equal amounts. During boarding and disembarking, heat generates discomfort for the passengers and implies
strong air-conditioning… unless the aircraft uses Vision Systems SPD-equipped EDWs.
Vision
Systems’ EDWs include very high-performing IR-blocking materials to protect from the portion of cabin heating that is due
to IR rays. However, IR radiation only represents part of solar heat gain through windows. The portion of the solar spectrum that
we can see – Visible Light – is about an equal contributor to an aircraft cabin interior rapidly becoming hot on the
ground. For passenger comfort,
visible light must be blocked
. Vision Systems’ SPD-based EDWs provide the solution
by automatically switching to their darkest, maximum heat-rejecting state when unpowered on the ground.
In
stark contrast to SPD-Smart EDWs, electrochromic EDWs switch
transparent
when the aircraft is unpowered, letting a source
of heat invade the cabin, because a transparent EDW is in its most heat-transmissive state. Electrochromic EDWs can be switched
dark but only if costly on-board or ground power is applied. Also, electrochromic technology uses a chemical reaction to change
states, and this is an exothermic reaction, meaning that heat is
released
into the cabin when the EDW is in the dark mode.
(An electrochromic EDW operates like the charging and discharging of a battery.) SPD does not use a chemical reaction, and no
heat is released in either its dark or clear states.
No
manual intervention by passengers, flight crews, or ground crews is required for Vision Systems’ EDWs to switch to the maximum
heat-blocking state when needed most, and operators’ costs in air-conditioning are significantly reduced. Passengers embark
and disembark in a cool cabin, enjoying greater thermal comfort for a better well-being. (For airlines that want the windows to
be clear at certain times, Vision Systems EDWs and certified electronics can easily integrate with cabin management and safety
systems on the aircraft to automatically and instantly go to a clear state when passengers need the assistance of light coming
through the aircraft windows.)
Vision
Systems’ SPD EDWs Switch Tint Substantially Faster with Better Uniformity, Giving Passengers
Instantaneous Control Over
their Environment
Vision
Systems’ SPD-Smart EDWs have a switching speed of 0.65 seconds from the darkest tint to the clearest state, against switching
speeds measured in minutes for electrochromic EDWs, and 3 seconds from clearest to darkest, regardless of the size of the window.
This enables passengers to instantly change the opacity of their window to regulate daylight and glare. Instant relief from oppressive
light and glare is vital to passenger comfort onboard aircraft. Instant privacy is also offered in Vision Systems’ EDWs.
Vision
Systems’ SPD EDWs Replace the Window Opening’s Plastic “Dust Pane,” Offering Superior Optical
Properties,
and Saving Fuel and Cabin Space
The
latest generation of Vision Systems’ EDWs provide unprecedented optical performance with haze well below the visible threshold
for their “Nuance Dark” brand of SPD-Smart EDW solution. There is another
very
important aspect to the view
out the window experienced by passengers. With SPD technology, Vision Systems’ EDWs use extremely thin, lightweight, scratch-resistant
chemically strengthened glass. Because of this, their EDWs can replace the window opening’s traditional “dust pane”
– the plastic window closest to the passenger. Dust panes are well known to be poor optically – after minimal use,
they become scratched, hazy and have other deficiencies – and they degrade passengers’ experience looking out the
window.
In
addition to delivering superior optical performance, Vision Systems’ ability to locate SPD-Smart EDWs in place of dust panes
offer passengers and airlines other benefits. For example, the net weight of the window assembly is reduced, which reduces fuel
consumption. Also, this can save interior cabin space – an ongoing industry objective.
This
feature is another major advantage Vision Systems has against electrochromic EDWs. Unlike an SPD EDW, electrochromic EDWs cannot
replace the dust pane – it is still required. Instead, the EDW must be
added
to the traditional window assembly –
they must be integrated between the dust pane and the outermost “structural window,” with air gaps in between each
type of transparency. This is a much heavier window assembly configuration, takes up more space, and the passengers still must
endure the inferior optics of the dust pane.
Vision
Systems’ SPD EDWs Reduce More Noise Inside the Cabin
Transmission
of noise through cabin windows is the weak link in providing passengers relief from another type of outside element. A quieter
aircraft cabin is a major industry objective, and Vision Systems provides the superior solution in this area as well. SPD technology
is film-based, and the EDW’s multi-layered laminated fabrication involves other noise barriers providing acoustic insulation
for a quiet atmosphere. Electrochromic EDWs have inferior noise attenuation performance because of the nature of the materials
used and how they must be configured.
Vision
Systems’ SPD EDWs Add More Unique Functionality Inside the Cabin
Vision
Systems’ in-house developed control switch electronics are fully integrated directly into the window. This facilitates rapid
installation during new construction as well as for aftermarket upgrades. It also reduces maintenance expenses. In contrast, electrochromic
EDWs cannot integrate control switch electronics on the window, because these EDWs are located behind the window opening’s
plastic dust pane. Without the possibility of integration, it is necessary to locate the control switch on the seat or lining.
During maintenance of an electrochromic window, multiple aircraft interior components must be removed in order to access the EDW.
Multiple
models of Vision Systems’ EDWs are available to meet the customer requirements:
●
|
multizone
tinting
|
●
|
additional
PDLC film for blackout and privacy
|
●
|
inclusion
of an integrated information display
|
●
|
integrated
plain or transparent touch panel
|
●
|
The
control of the window is also compatible with any Cabin Management System (CMS).
|
The
following chart summarizes some of the performance advantages
Vision
Systems’ SPD-Smart EDWs have over electrochromic EDWs
|
|
SPD-Smart
EDW
|
|
Electrochromic
EDW
|
Switching
Speed
|
|
0.5
– 3 Seconds
|
|
Minutes
|
Uniform
Tinting
|
|
Yes
|
|
No
|
Heat-Blocking
When Aircraft on Ramp and Unpowered
|
|
Extremely
High:
Switches
to Darkest State
|
|
Poor
– Moderate:
Switches
to Clearest State
|
Noise
Blocking
|
|
Extremely
High
|
|
Poor
– Moderate
|
Multizone
Tinting
|
|
Yes
|
|
No
|
Replaces
Dust Pane
|
|
Yes
|
|
No
|
Integrated
Electronics
|
|
Yes
|
|
No
|
Ability
to Include PDLC Film For Additional Blackout and Privacy
|
|
Yes
|
|
No
|
Integrated
Information Display
|
|
Yes
|
|
No
|
Integrated
Touch Panel
|
|
Yes
|
|
No
|
The
SPD-Smart Technology Has Been Reliably Used for Years in Some of the Most
Extreme Environments on Earth
The
markets for SPD-Smart film are well-established. Research Frontiers has licensed over 40 chemical, film, and glass companies which
are selling products for the automotive, aircraft, marine, train, architectural, museum, and consumer electronics industries.
Research
Frontiers patented SPD-SmartGlass technology is the same best-selling smart window technology that can be found on various car
models from Daimler. The MAGIC SKY CONTROL feature, which is now in use on tens of thousands of Mercedes-Benz SLs, SLC/SLKs, Maybach
and S-Class models around the world, use patented SPD-SmartGlass technology developed by Research Frontiers to turn the roof transparent
by electrically aligning tiny particles in a thin film within the glass. With the touch of a button, drivers and passengers can
instantly change the tint of their roof to help keep out harsh sunlight and heat, and create an open-air feeling even when the
sunroof is closed. Glass or plastic using Research Frontiers’ patented SPD-SmartGlass technology effectively blocks UV and
infrared rays in both clear and darkly tinted modes, helping keep the cabin cooler, and protecting passengers and interiors while
also enhancing security inside the vehicle. These benefits become even more important when a car uses large surface areas of glass,
especially in warm climates.
Some
of the other benefits of SPD-SmartGlass include significant heat reduction inside the vehicle (by up to 18ºF/10ºC),
UV protection, glare control, reduced noise and reduced fuel consumption. Independent calculations also show that use of SPD-SmartGlass
can reduce CO2 emissions by four grams per kilometer, and increase the driving range of electric vehicles by approximately 5.5
percent.
Shortly
after its introduction into serial production in the automotive industry, SPD-SmartGlass has become standard equipment on many
different aircraft, and is also used in residential and commercial architectural applications, in trains, yachts and other marine
vehicles, in display applications, and to protect light-sensitive artwork and documents in major museums around the world.
Details
are noted in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
The Research Frontiers press release is also available on the Company’s website at www.SmartGlass.com and at various other
places on the internet.
This
report and the press releases referred to herein may include statements that may constitute “forward-looking” statements
as referenced in the Private Securities Litigation Reform Act of 1995. Those statements usually contain words such as “believe”,
“estimate”, “project”, “intend”, “expect”, or similar expressions. Any forward-looking
statements are made by the Company in good faith, pursuant to the safe-harbor provisions of the Act. These forward-looking statements
reflect management’s current views and projections regarding economic conditions, industry environments and Company performance.
Factors, which could significantly change results, include but are not limited to: sales performance, expense levels, competitive
activity, interest rates, changes in the Company’s financial condition and several business factors. Additional information
regarding these and other factors may be included in the Company’s quarterly 10-Q and 10K filings and other public documents,
copies of which are available from the Company on request. By making these forward-looking statements, the Company undertakes
no obligation to update these statements for revisions or changes after the date of this report.
The
information in this Form 8-K or the press release reproduced herein shall not be deemed “filed” for purposes of Section
18 of the Securities Exchange Act of 1934, nor shall they be deemed incorporated by reference in any filing under the Securities
Act of 1933, except as shall be expressly set forth by specific reference in such filing.