Forward-Looking
Statements
Information
included in this Annual Report on Form 10-K may contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect our current
expectations concerning future events and results. We generally use the words “believes,” “expects,” “intends,”
“plans,” “anticipates,” “likely,” “will” and similar expressions to identify forward-looking
statements. Such forward-looking statements, including those concerning our expectations, involve risks, uncertainties and other
factors, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results,
to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
These risks, uncertainties and factors include, but are not limited to, those factors set forth in this Annual Report on Form
10-K under “Item 1A. – Risk Factors” below. Except as required by applicable law, including the securities laws
of the United States, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating
the information presented in this Annual Report on Form 10-K.
General:
As
used herein, “we,” “us,” “our,” the “Company” or “Research Frontiers”
means Research Frontiers Incorporated unless otherwise indicated. Research Frontiers operates in a single business segment which
is engaged in the development and marketing of technology and devices to control the flow of light (see Note 1 to the Consolidated
Financial Statements). We develop and license our patented suspended particle device (“SPD-Smart”) light-control technology
to other companies that manufacture and/or market the: (i) SPD-Smart chemical emulsion, (ii) light-control film made from the
chemical emulsion, (iii) the light-control panels made by laminating the film, (iv) electronics to power end-products incorporating
the film, or (v) lamination services for, and the end-products themselves such as “smart” windows, skylights and sunroofs.
Research Frontiers currently has over 40 companies that, in the aggregate, are licensed to primarily serve five major SPD-Smart
application areas (aerospace, architectural, automotive, marine and display products) in every country of the world.
The
Company has entered into a number of license agreements covering its light control technology. During 2020, five licensees accounted
for 18%, 16%, 12%, 12%, and 12%, respectively, of fee income recognized during the year. During 2019, three licensees accounted
for 38%, 12% and 10%, respectively, of fee income recognized for the year.
Research
Frontiers was incorporated in New York in 1965 to continue early work that Dr. Edwin Land, founder of Polaroid Corporation, and
others had done in the area of light-control beginning in the 1930s. Research Frontiers was reincorporated in Delaware in 1989.
Since 1965, Research Frontiers has actively worked to develop and license its own SPD technology, which it protects using patents,
trade secrets and know-how. Although patent and trade secret protection is not a guarantee of commercial success, Research Frontiers
currently has 246 patents that have been issued worldwide. In addition, the Company has current patent applications in the US
and other countries that if granted, would add a significant number of additional patents to its portfolio. The Company has and
continues to devote significant resources to develop, license and protect its intellectual property position.
SPD-Smart
products use microscopic light-absorbing nanoparticles that are typically suspended in a film. These particles align when an electrical
voltage is applied, thus permitting light to pass through the film. Adjustment of the voltage to the SPD film gives users the
ability to quickly, precisely and consistently regulate the amount of light, glare and heat passing through the window, skylight,
sunroof, window shade or other SPD-Smart end-product. This SPD film can be incorporated between two layers of glass or plastic,
or combinations of both, to produce a laminate that has enhanced energy efficiency, light-control and security performance properties.
Research
Frontiers believes that the SPD industry is in the initial phase of growth. SPD light-control technology may have commercial applicability
in many products where variable light-control is desired. Some existing product applications for SPD-Smart glass or plastic include
the following:
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Automotive:
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sunroofs,
sun visors, side windows and rear windows;
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Aerospace
and marine:
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windows,
doors, partitions, sun visors, skylights, and lateral cockpit windows;
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Architectural:
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commercial
and residential windows, doors, skylights, and partitions for new construction, replacement, and retrofit applications.
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In
addition to the product applications listed above, SPD-SmartGlass technology may also offer potential benefits in the development
of new flat panel displays, light conservation panels, neonatal and other incubators, consumer electronics, eyewear, self-dimming
automotive rear-view mirrors and other reflective information displays. However, such products need additional product design,
engineering or testing before the commercial potential of such SPD-SmartGlass products can be determined.
Some
of our licensees consider the stage of development, product introduction strategies and timetables, and other plans to be proprietary
or secret. Unless required to disclose such information, the Company may limit its disclosure of licensees’ activities until
such licensees, or their customers, make their own public announcements of planned or actual product launches.
Some
of the early sales and uses of SPD technology were to low volume commercial installations and some have involved concept and test
installations by licensees and their customers. Recent progress with regard to market development and commercialization activity
has been the result of focused and active efforts by Research Frontiers and its key licensees who have invested in product development
and improvements, production facilities, increased production capacity, durability, performance testing, quality control and assurance,
and marketing programs.
Beginning
in late 2011, higher volume sales of SPD products commenced with the launch by Daimler AG of the Magic Sky Control™ all
glass roof option on their Mercedes-Benz SLK (subsequently renamed SLC). In early 2012, sales of the Magic Sky Control™
all glass roof option commenced on their Mercedes-Benz SL. In mid-2014, sales of the Magic Sky Control™ all glass roof option
commenced on the new S-Class Coupe with other Mercedes-Benz S-Class variants began offering the Magic Sky Control™ all glass
roof option in 2015 and 2016. These vehicles are reaching the latter part of their model lifecycle. In some cases, such as the
SLC and S-Class Coupe, there has been indications that these models may be discontinued completely at the end of their current
model lifecycle. In the case of the SL roadster, it is expected that the next version of the SL roadster might use a canvas roof
instead of the current switchable and static tint glass roofs. It has not been announced whether plans for the next models of
the S-Class and Maybach vehicles will include any switchable glass technology in the sunroofs or windows.
Research
Frontiers believes that with the normal progression of product and manufacturing improvements, and as licensees become more experienced
at the lamination, fabrication and installation of SPD-Smart products for various applications, the adoption rates for SPD-Smart
products will grow and accelerate, which we expect will increase the stream of royalty income for the Company. Research Frontiers
believes the largest and most predictable near and intermediate term market for its technology will be automotive glass.
As
part of their marketing and branding programs, many of our licensees have developed their own trademarks for SPD-Smart emulsion,
film, and end-products and these are listed in their respective press releases, product brochures, advertising and other promotional
materials. Research Frontiers uses the following trademarks: SPD-Smart™, SPD-SmartGlass™, VaryFast™, SPD-CleanTech™,
SPD Clean Technology™, SmartGlass™, The View of the Future - Everywhere you Look™, Powered by SPD™, Powered
by SPD-CleanTech™, Powered by SPD Clean Technology™, SG Enabled™, SPD Green and Clean™, SPD On-Board™,
Speed Matters™ and Visit SmartGlass.com - to change your view of the world™.
In
each of the last three fiscal years the Company devoted substantially all of its time to the development of one class of products,
namely SPD-Smart light-control technology, and therefore revenue analysis by class is not provided herein. Information about our
operations and those of our licensees is included below and in our financial statements and notes thereto.
The
Company does not believe that future sales will be seasonal in any material respect. The Company does not currently directly manufacture
products on its own but rather depends on activities of its licensees and vendors. Due to the nature of the Company’s business
operations and the fact that the Company is not presently a manufacturer, there is no backlog of orders for the Company’s
products.
The
Company believes that compliance with federal, state and local provisions which have been enacted or adopted regulating the discharge
of materials into the environment, or otherwise relating to the protection of the environment, will not have a material effect
upon the capital expenditures, earnings and competitive position of the Company. The Company has no material capital expenditures
for environmental control facilities planned for the remainder of its current fiscal year or its next succeeding fiscal year.
Employees:
On
March 11, 2021, the Company had six full-time employees, two of whom are technical personnel, and the rest of whom perform legal,
finance, marketing, investor relations, and administrative functions. Of these employees, one has obtained a doctorate in chemistry
and one has extensive industrial experience in electronics and electrical engineering. One employee also has a postgraduate degree
in business administration, and one has a doctorate in jurisprudence. Also, the Company’s suppliers and licensees have people
on their teams with advanced degrees in a number of areas relevant to the commercial development of products using the Company’s
technology. The success of the Company is dependent upon, among other things, the services of its senior management, the loss
of which could have a material adverse effect upon the prospects of the Company.
Smart
Glass Industry Trends:
There
are favorable converging global trends in the major near-term markets for smart glass and SPD-Smart products. The potential for
smart glass products is significant and is expected to attain economies of scale with increasing high-volume production. This
increased production is also expected to bring down end product costs and expand market opportunities.
In
both public and private sectors across the world, there are substantial efforts targeted toward the promotion and use of energy
efficient smart glass materials, including those used in automobiles, windows and other architectural glazings, aircraft and boats.
Products using SPD-Smart technology continue to be exhibited at trade shows, conferences, and industry events, with such products
not only being exhibited by our licensees but also by their customers and by OEMs. While there can be no assurance that these
trends will continue, to the extent that they do continue, each is expected to have a beneficial effect on future interest in
SPD-Smart technology.
In
October 2019, MarketsandMarkets issued Smart Glass Market by Technology (Suspended Particle Display, Electrochromic, Liquid
Crystal, Photochromic, Thermochromic), Application (Architecture, Transportation, Consumer Electronics), and Geography - Global
Forecast to 2023. This market research report concludes that the smart glass market is expected to grow from USD $2.8 billion
in 2016 to reach USD $8.35 billion by 2023, with a growth rate of 16.6% between 2017 and 2023. Key conclusions in this report
included:
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Smart
glass, especially active glass, provides a higher control over heat and light at the will of the user, thereby providing considerable
electricity cost-savings and conclusively making the construction spaces more environment-friendly.
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Smart
glass technology has been in existence for the last few decades; however, its demand is gathering momentum on account of improved
innovation in raw materials and technologies and the possibility for new applications across various sectors. North America
and Europe have been at the forefront of this trend. Smart glass demand is growing in the Asia Pacific region on account of
its growing building and construction, electronics, and transportation sectors.
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One
of the biggest hindrances to the growth of smart glass industry demand is its higher cost. The higher cost of raw material
and its limited availability is undermining its penetration at a larger scale. Constant innovations are happening in terms
of raw material, product design, and work capacity, which will simultaneously attract new users and provide opportunity to
manufacturers to rationalize the product cost over the forecast period.
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In
June 2019, Grand View Research issued Smart Glass Market Size, Share & Trends Analysis (SPD, PDLC, Liquid Crystal, Electrochromic),
By Application (Consumer Electronics, Architectural Transportation), And Segments Forecast, 2019-2025. This market research
report concludes that the smart glass market is expected to grow from USD $3.7 billion in 2018 to reach USD $8.6 billion by 2025
reflecting a growth rate of 15.2%. Key conclusions in this report include:
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Smart
glass has gained importance due to its inherent capability of thermal and acoustic insulation, energy conservation, and aesthetic
3D designer proposition.
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The
automotive and residential applications have witnessed a dynamic phase change in functionalities from legacy weather protection
features to seclusion apparatus and advanced energy-conserving.
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Architecturally
advanced construction philosophies incorporating the installation of large windows in the majority of buildings are projected
to drive demand in Europe.
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The
transportation segment accounted for the highest market share in 2018 and is projected to retain its leading position throughout
the forecast years. The segment is further categorized into automotive, aircraft, and marine.
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Automotive
sector is the largest consumer of switchable glass and captured the largest revenue share of more than 70% in 2018.
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The
technology provides protection from UV rays and controls heat inside the vehicles by limiting energy consumption.
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Initiative
for reducing CO2 emissions and minimizing energy consumption are encouraging manufacturers to develop anti-heat glass
and glazing solutions.
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High
demand for luxury automobiles, especially in Asia Pacific, is driving the market growth.
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Major
aerospace manufacturers, such as The Boeing Company, Beechcraft Corporation, Airbus SA, Bombardier Inc., and Embraer S.A.,
are shifting towards electronically dimmable windows.
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Automotive
Market:
In
the automotive industry, global trends include the introduction of larger sunroofs and panoramic roof panels in transportation
vehicles, and a higher percentage of these vehicles having a sunroof or using more glass in the roof.
SPD-SmartGlass
has also been shown in armored automotive glass applications, recreational vehicles, and a new market is also beginning to develop
for personalized custom conversions of automobiles for owners who wish to express themselves through the design of the cars they
own and/or drive.
Aircraft
Market:
In
the aircraft industry, there is a trend towards larger windows with more passenger control and functionality, and an increased
investment in improving the passenger experience. In the “transport category” (primarily large commercial passenger
aircraft) segment, the world’s two largest aircraft manufacturers are both promoting the size of the windows in new aircraft
platforms already being delivered (e.g. Boeing 787 and Airbus A350). In the “general aviation” category (primarily
business jets, private or chartered smaller aircraft) this trend is true as well. For example, Gulfstream is promoting the size
of the windows on their G650 platform as well as their upcoming G700 flagship aircraft, and Bombardier highlights the size of
the cabin window on the Global 7000 and 8000 platforms. Several OEMs either already offer, or have announced their interest to
include, electronically dimmable windows in their aircraft – including Boeing, Airbus, Bombardier, Embraer, Textron-Beechcraft,
HondaJet, Airbus Helicopters, Airbus Corporate Jets, Bell Helicopter, Dassault, Epic and One Aviation. Electronically dimmable
windows for aircraft may use SPD technology, or may use other smart window technologies such as liquid crystal or electrochromic
technology. A window system using electrochromic technology was introduced in the Boeing 787. There have been concerns raised
that this aircraft’s electronically dimmable windows are not dark enough for long haul flights, transmit
too much heat into the cabin, and have a switching speed that is too slow.
The
Company believes its SPD technology offers important performance advantages over other technologies including faster, more uniform
response time, superior heat-rejection when the aircraft is parked on the ramp, superior acoustic insulation, an automated dimming
system to continuously maintain a constant level of light in the cabin in real-time, and weight-savings. Leading companies manufacturing
electromechanical pleated window shades have products that incorporate SPD-Smart windows into their designs, and Tier 1 suppliers
of other cabin systems (e.g. cabin management systems) are featuring SPD-Smart electronically dimmable windows in mockups.
SPD
technology is also the only commercially available light-control smart window technology known to have passed the stringent safety
and durability tests required by the aviation industry and to have received a Supplemental Type Certificate (STC) from the Federal
Aviation Administration. Today, SPD-Smart electronically dimmable windows are flying on over 40 models of various aircraft including
those used in commercial aviation, general aviation and military aviation. SPD-Smart products have been selected by aircraft manufacturers
as standard equipment on new production platforms including the Honda Aircraft HondaJet, Textron-Beechcraft King Air 250, 350i
and C90GTx, Epic Aircraft E1000, and One Aviation Eclipse 700.
Architectural
Market:
The
architectural community is actively increasing the use of daylight harvesting, green building technologies and building automation
systems to more effectively capture and control natural light as part of energy reduction strategies to offset cooling/heating
costs and electricity used by artificial lighting. In addition to design, aesthetic and other benefits, the expanded use of glass
also supports a growing body of research which finds that the presence of and control over incoming natural light improves an
individual’s well-being and productivity. Products using SPD-Smart light-control technology – sunroofs, windows, skylights,
partitions and others – can play an important role in supporting these converging global trends.
For
architectural applications, various market forces and the distinctive features of SPD-SmartGlass are having a positive influence
on interest for SPD-Smart products. Many architects are specifying more glass in their designs to satisfy building occupants’
desire for greater connectedness with the outside environment. In addition, there is increasing interest in improving energy efficiency
in both commercial and residential buildings. Various studies indicate that buildings in the United States and Europe now account
for an estimated 39-40% of total energy use and upwards of 70% or more of electricity consumption. Many architects and building
owners are striving for sustainable, “green” buildings that are highly energy-efficient, reduce environmental impact,
and improve occupant health and well-being. In addition, the design community is increasingly interested in advanced daylighting
systems in buildings that lower electrical lighting usage and reduce heating and cooling loads. Because of this, the ability to
control light, glare and heat in these building applications is very important and advanced solutions often are needed to optimize
operating efficiencies. SPD-Smart architectural products instantly and precisely provide shading, glare control and heat management
solutions for offices and homes, especially when these products are available for new construction, replacement and retrofit projects.
These products include insulated glass units, single-panel retrofits, unusually shaped glazings, and products with advanced fabrications
such as those with ballistic- and blast-resistant capabilities.
In
2015, Research Frontiers’ patented SPD-SmartGlass technology was selected as the exclusive smart glass for the USA Pavilion
at the World’s Fair, Expo Milano 2015. The USA Pavilion featured 312 large panels of SPD-SmartGlass manufactured under license
from Research Frontiers by Isoclima S.p.A. Each panel measures approximately 1 meter by 3 meters, making the total surface area
in the roof more than 10,000 square feet. This is the largest known installation of smart glass in the world for a roof application
and was seen by over 6 million people.
Marine
Market:
In
the marine application, where light-control needs are especially important, many yacht manufacturers currently employ less than
ideal glazing solutions as they try to satisfy various shading and solar control objectives. For example, some report having to
use as many as five different types of glass in a typical yacht to satisfy diverse glazing needs. SPD-Smart marine products can
reduce the number of different types of glass used in these yachts because of their increased functionality, superior performance
and versatility. SPD-Smart marine products provide an innovation that allows these operators to manage incoming light, glare and
heat while achieving privacy or maintaining one’s view as desired.
Historical
Background and Recent Developments:
1.
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SPD-Smart
Film Production
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Hitachi
Chemical
An
important material used in SPD-Smart end-products is SPD light-control film that varies the tint of glass or plastic. In early
2007, our licensee Hitachi Chemical began producing its initial SPD-Smart light-control film on its first factory line. During
the second half of 2009, Hitachi Chemical announced that it had begun mass production on its new, larger capacity production line
and expanded its annual production capacity to 400,000 square meters (over 4.3 million square feet).
Hitachi
Chemical’s production line is dedicated exclusively to the production of SPD-Smart film. In July 2009, Hitachi Chemical
launched its website dedicated to its SPD-Smart light control film and during 2009, Hitachi Chemical outlined in its press releases
and public presentations that it plans to “accelerate the use of SPD film, which holds significant potential for growth”
and noted that “SPD film is positioned as one of the key emerging products promoted by Hitachi Chemical to become a future
leading product for the company.”
Hitachi
Chemical expanded its SPD film product portfolio by initiating commercial production of a “lighter” version of its
film. Both the SPD “dark” and “light” versions of the films provide a high range of visible light transmission.
The best-selling SPD “dark” film has a range of approximately 0.5% to 55.0%. This leads to contrast ratios (the ratio
of clear to dark light transmission) of up to 110:1. The commercialization of both “dark” and “light”
versions of SPD-film provides greater design and performance options for end-product applications.
Gauzy
Ltd.
In
October 2018, Gauzy Ltd. announced that it will be producing SPD-Smart light control film for the entire SPD-SmartGlass industry.
The announcement came at a ceremony to celebrate the inauguration of Gauzy’s production line to produce SPD-Smart light
control film in Tel Aviv-Jaffo.
Gauzy
initially announced that its Tel-Aviv film production line has a capacity to produce up to 364,000 square meters of film per year
per shift, and that its initial production will be 1.2 meters wide, and in 2019 it planned on expanding its SPD film coating capabilities
to 1.5 meters wide rolls, and in 2020 to 1.8 meters wide rolls. In February 2019 Gauzy announced that it would be expanding its
SPD film production capacity by having SPD emulsion produced in Tel Aviv and that this emulsion would be coated into SPD-Smart
light control film in a new dedicated factory being built by Gauzy in Stuttgart, Germany.
In
December 2019, Gauzy Ltd. celebrated the opening of its second production facility in Stuttgart, Germany to produce SPD-Smart
light control film for the entire SPD-SmartGlass industry. This state-of-the-art facility, with specially designed coating and
curing areas, will give Gauzy the capacity to coat over one million square meters of SPD film per year in widths of up to 1.8
meters.
In
January 2020, Research Frontiers, Gauzy Ltd. and their customers showed 175 thousand attendees at this year’s CES new ways
to benefit from SPD-SmartGlass.
In
April 2020, Gauzy Ltd. announced that it secured Series C investments from Hyundai Motor Company, Blue Red Partners VC, and Avery
Dennison. This strategic investment marks the first known equity investment by an automotive OEM in Research Frontiers’
entire industry. As part of the announcement of this investment, Gauzy confirmed that its state-of-the-art material synthesis
facility in Israel, and its custom SPD production line strategically located in Germany, are currently operating and producing
SPD emulsion and light control film for the automotive, aircraft, and architectural industries, with modified staffing and procedures
to protect Gauzy’s employees during the COVID-19 pandemic.
Customers
for Hitachi Chemical’s and Gauzy’s SPD-Smart film are end-product licensees of Research Frontiers. These licensees
receive the film, laminate it between glass or plastic substrates, and then fabricate end-products which are sold into various
industries. Most end-product licensees pay Research Frontiers a royalty on the sale of these end-products that typically range
from 10-15%.
Others
Other
companies are currently licensed by Research Frontiers to sell SPD-Smart light-control film to licensees of Research Frontiers.
None of these other companies has yet announced commercial SPD film for sale.
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SPD-Smart
Automotive Products:
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Research
Frontiers and its licensees are currently working with multiple automotive manufacturers to introduce SPD-Smart windows, sunroofs
and roof systems on both concept and production vehicles. Research Frontiers’ end-product licensees in this sector include
industry leaders American Glass Products, Asahi Glass, Custom Glass, Daimler AG, Isoclima, Pilkington Glass, Pittsburgh Glass
Works, Saint-Gobain, SER, and Vision Systems. The Company’s automotive glass licensees account for the majority of all glass
produced for the automotive market throughout the world.
Automotive
OEMs:
In
2011, Daimler AG began using SPD-SmartGlass technology in its Magic Sky Control™ panoramic glass roof as an option on its
new Mercedes-Benz 2012 SLK. In 2012, Daimler AG began offering its Magic Sky Control™ panoramic glass roof as an option
on its new Mercedes-Benz 2013 SL. These SPD products allow drivers and passengers to change the tint of the car roof from dark
to clear quickly with a touch of a button. The SLK and SL are the first large-scale series production vehicles to offer SPD-SmartGlass.
The Research Frontiers licensees involved with the production of the Magic Sky Control™ roof for the SLK and SL include
Hitachi Chemical, which manufactures the SPD-Smart light-control film in Japan. Automotive glass companies Nippon Sheet Glass
in Japan and its subsidiary, Pilkington, in the UK and Germany then process and laminates Hitachi’s SPD film into the glass
for the Magic Sky Control™ roof.
In
late 2014, Daimler AG began offering its Magic Sky Control™ as an option on the new Mercedes-Benz S-Class Coupe. In 2015,
other S-Class variants (i.e. Standard Wheel base W222, Long Wheel Base V222, Maybach S600 X222 and the Maybach Pullman Limousine)
began offering Magic Sky Control™ as an option. The current Mercedes-Benz S-Class is the third large-scale serial production
vehicle to offer Magic Sky Control™ using SPD-Smart technology.
The
S-Class Coupe offers the largest panoramic Magic Sky Control™ roof ever put into serial production. The surface area of
the panoramic roof using SPD-SmartGlass technology on the S-Class is approximately three times the size of the roof glass used
on the current SLC and SL roadster. With the addition of the new 2018 S450 and S450 4MATIC S-Class Sedans, a total of 14 Mercedes-Benz
model variants have now offered this remarkable panoramic smart glass roof:
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S
450 S-Class Sedan
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S
450 4MATIC S-Class Sedan
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S
560 4MATIC S-Class Sedan
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AMG
S 63 S-Class Sedan
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Mercedes-Maybach
S 560 4MATIC
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S550
4MATIC S-Class Coupe
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AMG
S63 S-Class Coupe
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AMG
S65 S-Class Coupe
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SLC
300 Roadster
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AMG
SLC 43 Roadster
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SL
450 Roadster
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SL
550 Roadster
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AMG
SL63 Roadster
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AMG
SL65 Roadster (Standard Equipment)
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A
key factor in the broad adoption of SPD technology in various automotive windows is its cost. Typically, the cost for new technology
products decreases as production volumes increase. The price per square foot of SPD-SmartGlass reported by our licensees has gone
down over time in the automotive market. Royalties from the Magic Sky Control panoramic roofs generate a royalty of 10% of the
selling price of these roofs by our licensees to Daimler. The roofs on the S-Class are approximately two to three times the surface
area of the roofs on the SLC and SL vehicles.
Research
Frontiers believes that the addition of the S-Class car model is also significant because it applies our SPD-Smart light-control
technology to the broader class of vehicles by moving beyond roadsters to coupes and passenger sedans. Historically, since its
debut over 40 years ago, the S-Class represents the premier platform to introduce new technologies to the customer, which in many
cases expand to the other less expensive model lines within the Mercedes-Benz brand.
In
November 2015 at the Los Angeles Auto Show, Mercedes-Benz launched a refreshed Mercedes-Benz SL. The press release from Mercedes-Benz
stated, “Another feature which has been retained is the unique optional extra MAGIC SKY CONTROL: when closed, the panoramic
vario-roof automatically changes from dark to transparent or vice-versa within just a few seconds.” The MAGIC SKY CONTROL
feature is a carry-over from the previous model. Other new features include a new front end, new headlamps, more powerful engines,
and a new transmission, among many others.
In
January 2016 at the North American International Auto Show in Detroit, Mercedes-Benz premiered the new Mercedes-Benz SLC. The
press release from Mercedes-Benz when the SLC was first announced stated, “A feature that continues to be unique to the
SLC is the panoramic vario-roof with Magic Sky Control – this glass roof is lightened or darkened at the touch of a button.
This means that it provides an open-air feeling at any time, but when required gives welcome shade under a hot sun.” The
Magic Sky Control feature, using Research Frontiers SPD-SmartGlass technology, is a carry-over from the SLC’s predecessor
model, the SLK roadster.
McLaren
was the second auto manufacturer to adopt the Company’s SPD-SmartGlass technology for series production in the automotive
market. The following new production cars by McLaren Automotive featured SPD-SmartGlass technology in their roofs: the McLaren
GT, McLaren 720S Spyder and McLaren Speedtail (which also incorporated SPD-SmartGlass technology in the windshield as a built-in
sun visor and also other areas of the car). The McLaren GT and 720S Spyder have been in production for several years, and the
McLaren Speedtail was first delivered to customers in January 2020. Since then, McLaren has included SPD-SmartGlass in additional
production models.
General
Motors was the third auto manufacturer to announce that it was putting SPD-SmartGlass into series production in the roof of their
new electric ultra-luxury flagship vehicle, the Cadillac Celestiq. The SPD-SmartGlass sunroof for the Celestiq gives occupants
control over individual segments of the sunroof above them to better customize and enhance the driving experience in terms of
comfort, security, and the reduction of heat, light and glare into the vehicle. The Celestiq with its SPD-SmartGlass roof was
launched at CES 2021in January 2021.
Also
in terms of new product development in the automotive industry, in August 2020, Daimay, the world’s largest supplier of
automotive sun visors, licensed Research Frontiers’ SPD-Smart light-control film technology for use in automotive sun visors.
SPD-Smart light-control film technology will enable Daimay to develop products that automatically and dynamically adjust the sun
visor to manage changing light and glare conditions. Daimay is developing this product in conjunction with a specific automotive
manufacturer customer.
In
the Asian automotive market, in April 2020, Gauzy Ltd. announced that it secured Series C investments from Hyundai Motor Company,
Blue Red Partners VC, and Avery Dennison. This strategic investment marks the first known equity investment by an automotive OEM
in Research Frontiers’ entire industry. As part of the announcement of this investment, Gauzy confirmed that its state-of-the-art
material synthesis facility in Israel, and its custom SPD production line strategically located in Germany, are currently operating
and producing SPD emulsion and light control film for the automotive, aircraft, and architectural industries.
In
January 2020, Research Frontiers, Gauzy Ltd. and their customers showed 175 thousand attendees at the CES new ways to benefit
from SPD-SmartGlass, including some unique automotive information displays with improved readability and performance.
Other
automakers continue to develop and evaluate the use of SPD technology in their windows systems. Such window systems include sunroofs,
side-windows, rear-windows and sun visors. Some automakers and their suppliers have incorporated SPD-SmartGlass in concept vehicles,
with some of these concept vehicles being exhibited at major auto shows:
●
|
March
2019:
|
|
|
|
At
the 2019 Geneva Auto Show, Mercedes-Benz SLC roadster, SL roadster, S-Class Sedan and Maybach vehicles in serial production
were presented using the Company’s SPD-SmartGlass technology
|
|
|
●
|
January
2019:
|
|
|
|
At
least four different companies showcased SPD-Smart products at CES 2019 in the automotive and consumer electronics industries.
|
|
|
●
|
November
2018:
|
|
|
|
Two
concept electric vehicles debuted at the 2018 Los Angeles Auto Show featured SPD-SmartGlass and were also showcased at various
automotive and other major industry trade shows during 2019 and early 2020. These two vehicles are scheduled to be in production
in 2020.
|
|
|
|
At
various trade shows beginning with electronics 2018 in Munich in November, Texas Instruments demonstrated a control unit reference
design (TIDA-020013) created to more intelligently and efficiently power SPD-SmartGlass electronically dimmable glass using
a standard 12-volt automotive battery. The interactive demonstration is paired with gesture control to lighten or tint glass
with the SPD-SmartGlass technology.
|
|
|
|
The
SPD-SmartGlass sunroof application gives occupants more control over the lighting in their car, removes unwanted heat, light
and glare, and increases the driving range of electric vehicles. It also miniaturizes the electronics package and reduces
the cost of the entire system to the auto maker, while also improving power efficiency. Engineers can use the TI reference
design to accelerate their own designs using electronically dimmable glass. The design includes TI’s highly efficient
power management circuits and a 32-bit C2000™ real-time MCU to help generate the necessary signal to drive and control
substantial surface areas.
|
●
|
January
2018:
|
|
|
|
A
number of different companies showcased SPD-Smart products at CES 2018. In the automotive industry, Fisker debuted its new
Fisker E-Motion with a unique and innovative four-segment SPD SmartGlass roof. In addition to use in its large curved panoramic
roof, Fisker says that it plans to offer SPD-SmartGlass technology on the side windows of this new electric vehicle.
|
|
|
|
Continental
Corporation (“Continental”) also showcased its Intelligent Glass Control system using SPD technology at CES 2018
to demonstrate how it makes cars safer, more private and comfortable, lighter and more energy-efficient.
|
|
|
●
|
January
2017:
|
Corning
introduced a concept car that features an SPD-SmartGlass panoramic roof and rear glass at the 2017 Consumer Electronics Show.
This large roof and curved rear glass is made using SPD-SmartGlass light-control film laminated between Corning’s Gorilla®
Glass, a special chemically-strengthened thin and lightweight glass.
At
the 2017 Consumer Electronics Show, Continental Corporation (“Continental”) showcased an advanced version of its SPD-equipped
vehicle that it originally showcased at the 2016 Consumer Electronics Show. This vehicle has enhanced and more sophisticated electronics,
Continental indicated that its Intelligent Glass Control system increases passenger comfort and lowers CO2 emissions by keeping
the interior of the vehicle cooler. As a result, smaller, more efficient and lighter air conditioning units could be used. Calculations
showed a reduction in CO2 emissions of four grams per kilometer. Continental also estimates that its Intelligent Glass Control
system can increase the driving range of electric vehicles by 5.5%
●
|
January
2016:
|
|
|
|
Continental
Corporation showcased its “Intelligent Glass Control” system on a demonstration vehicle at a special event at
the Consumer Electronics Show (CES) in Las Vegas. This vehicle, a Ford Mondeo station wagon, used SPD-SmartGlass technology
to enable the glass in all eleven side and rear windows and in the top sun visor portion of the windshield to change its transparency
and darken instantly through electric control signals.
|
|
|
●
|
March
2015:
|
|
|
|
The
Lincoln Motor Company, the luxury automotive brand of the Ford Motor Company, introduced the Lincoln Continental Concept car
using an SPD-SmartGlass electronically tinting sunroof. This Lincoln Continental Concept car featuring SPD-SmartGlass also
made its Asian debut at Auto Shanghai in April 2015.
|
|
|
●
|
September
2012:
|
|
|
|
BMW
debuted at the Paris Motor Show its new BMW Concept Active Tourer. This vehicle’s entire composite glass roof uses patented
SPD-SmartGlass technology.
|
●
|
March
2012:
|
|
|
|
Mercedes-Benz
debuted at the Geneva International Motor Show its public evaluation of the Limited Edition Viano Pearl. This vehicle displays
the capabilities and conceptual use of SPD-SmartGlass on the side glass of vehicles from Mercedes-Benz.
|
|
|
●
|
December
2011:
|
|
|
|
Toyota
debuted its FS Hybrid Concept at the 2011 Tokyo Motor Show in Tokyo, Japan. The FS Hybrid Concept demonstrated the use of
SPD-Smart™ technology in side glass.
|
●
|
September
2011:
|
|
|
|
Audi
debuted its A2 concept car at the Frankfurt International Auto Show in Frankfurt, Germany. The A2 is an electric-powered passenger
car equipped with a large SPD-Smart™ panoramic glass roof.
|
3.
|
Automotive
Aftermarket:
|
While
the highest volume market for which SPD-Smart technology is being developed is new car production by the world’s automakers,
the aftermarket upgrade market also presents opportunities in the automotive market. Research Frontiers licensee American Glass
Products (AGP) is offering its Vario Plus Sky SPD-SmartGlass to the automotive aftermarket as well as to the automotive OEM market
for serial production. In March of 2013, Research Frontiers announced that it had added two new licensees, Tint-It JSC and Advnanotech,
both of whom are targeting the automotive aftermarket in Russia. In May of 2017, Hanamac International Ltd. acquired a license
from Research Frontiers to produce and sell SPD-SmartGlass automotive windows for the South Korean aftermarket.
In
August 2019, Research Frontiers licensed São Paulo, Brazil based SER Company to make SPD-SmartGlass primarily for the automotive
armored glass aftermarket in Brazil. SER Company is a Brazilian leader in the development of technologies and solutions for ballistic
cars in the protection and security sector.
4.
|
Recreational
Vehicles//Motor Homes/Busses and Motorcoaches:
|
Most
motorcoach windows use heavily tinted windows to manage excessive light, glare or heat. While this reduces somewhat the time the
shade has to be down, it remains ineffective for many conditions. Also, it limits passengers’ experience of views during
dusk, nighttime and dawn hours. This is due to the fact that when outside light levels are low, a heavily tinted window blocks
or degrades elements of the scene outside. During these hours, the high optical clarity of SPD-SmartGlass in the “clear”
state eliminates this problem.
Features
of SPD-SmartGlass electronically dimmable windows (“EDWs”) for motorcoaches include:
|
○
|
Different
zones of an EDW can be independently controlled.
|
|
|
|
|
○
|
All
EDWs can be controlled centrally with a master control, or automatically with light sensors.
|
|
|
|
|
○
|
The
level of noise in the motorcoach is reduced.
|
|
|
|
|
○
|
The
EDWs automatically turn to the darkest state when the motorcoach engine is off, keeping
the interior cooler and offering lower air-conditioning consumption and greater energy
savings.
|
|
|
|
|
○
|
An
ergonomic SPD-Smart dimmable motorcoach sun visor increases safety.
|
|
|
|
|
○
|
The
electronics are integrated into the EDW, which facilitates OEM and aftermarket installations.
|
Vision
Systems exhibited its SPD-SmartGlass technology for the coach marketplace at the UMA Motorcoach Expo in Nashville, TN. Vision
Systems showcased an EDW with integrated information display that provides travel information such as time, temperature, remaining
distance to the next stop, or service availability. Also at the show, Vision Systems’ unveiled an SPD-SmartGlass solution
for the driver environment with an ergonomic SPD-Smart dimmable sun visor integrated into the upper part of the windshield, avoiding
the need for the driver to handle a shade, which partially blocks the view.
Vision
Systems also exhibited its SPD-SmartGlass technology solutions for the coach marketplace at the UMA Motorcoach Expo.
●
|
May
2017:
|
|
|
|
At
Caravan Salon in Dusseldorf, Germany, premium recreational vehicle supplier Lippert Components, and Knaus, a leading manufacturer
of leisure vehicles in Europe, both featured the world premiere of dimmable windows using SPD-SmartGlass technology. These
electronically dimmable smart windows, which dramatically improve the recreational vehicle passenger experience, were supplied
by Vision Systems, a licensee of Research Frontiers.
|
|
|
●
|
September
2014:
|
|
|
|
Global
Caravan Technologies, Inc. unveiled the CR-1 Carbon which features the MagicView™ roof and MagicView™ windshield
with SPD-SmartGlass. This special glass, which totals 28 square feet, was jointly developed with Research Frontiers’
licensee Vision Systems. SPD nanotechnology on this vehicle allows infinitely variable control of privacy between blackout
and clear and can be controlled by any smart-phone or other smart-devices. In addition to controlling the level of light and
glare coming into the RV, the MagicView™ SPD-SmartGlass on RVs offers many other advantages. This technology provides
unsurpassed thermal insulation: SPD-SmartGlass substantially rejects solar heat from entering RVs through windows. The SPD-SmartGlass
achieves its maximum dark state when the RV is parked/turned off and no power is consumed.
|
|
|
●
|
January
2012:
|
|
|
|
Vision
Systems announced that Notin, manufacturer of motorhomes and campers, selected Visions Systems’ Nuance brand of SPD-SmartGlass
for the skylight of Notin’s Angara luxury motorhome. In October 2013 at Busworld 2013, Vision Systems showcased a new
sun visor using SPD-Smart light-control film technology and a light sensor to automatically and dynamically adjust the sun
visor to deal with changing light and glare conditions. Vision Systems indicated that it has been working for almost two years
with a major automotive OEM to test the ease of installation, reliability, design and performance of its new sun visor in
real world conditions. It further indicated that customer reaction regarding the effectiveness and ease of use of this product
has been excellent. The fact that this feature can be installed in the aftermarket should bring these benefits to a wider
range of drivers.
|
In
February 2020, Vision Systems presented its SPD-SmartGlass marine products at the Middle East Rail show in Dubai, UAE, including
a multi-zone SPD-SmartGlass dimmable window, and a dimmable divider with an integrated information display, and a concept of glass
partition playing videos. The multi-zone solution exhibited is an SPD-SmartGlass panel that resembles a digital shade, providing
tinting control of a chosen zone to protect from unwanted light and glare, for improving the passenger experience. Vision Systems
also exhibited an SPD-SmartGlass dimmable divider with an integrated information display that gives travel information such as
time, temperature, remaining distance to next stop, or service availability.
Innotrans,
the leading international trade fair for transport technology, was the stage for the world premier of new EDW solutions using
SPD-SmartGlass technology. AGC and Vision Systems launched their respective latest generations of SPD-SmartGlass EDWs for the
rail industry. In addition, Continental also new electronic control products for SPD-SmartGlass EDWs at the show.
Vision
Systems at InnoTrans
Some
of the products using SPD-SmartGlass for the train industry being showcased this week in Berlin include:
|
●
|
EDWs
with integrated control system electronics (on the passenger window EDW itself), for rapid installation in both new train
car production, and retrofitting existing train cars.
|
|
●
|
SPD-SmartGlass
solutions for the driver cabin, to eliminate glare on the dashboard with side and back window EDWs, and/or SPD sun visors
integrated into the windshield.
|
|
●
|
“Info-Vision”
window, which integrates an electroluminescent display into SPD-SmartGlass windows. This combines the benefits of the EDW
with information available directly on the window, such as time to destination, remaining distance, temperature, service options,
and train schedules.
|
In
addition to the above information, Vision Systems confirmed at Innotrans that it was working on other high-volume train projects
with major commuter train manufacturers and operators.
AGC
at InnoTrans
AGC,
a leading Tier 1 supplier of transparencies to the rail industry for over 50 years, is also prominently featuring SPD-SmartGlass
EDWs. In a recent article entitled AGC at Innotrans with smart glass for transportation, it was noted, “AGC’s booth
will feature AGC’s smart glasses for transportation… Wonderlite light control glazing, that switches from clear to
dark at the simple touch of a button.” Wonderlite is AGC’s brand name for its SPD-SmartGlass EDWs.
Global
Rail News published an article about Continental at Innotrans, noting, “The level of transparency… of the glass can
be adjusted via a control system, which can be programmed to respond to external conditions, such as sensor data on sunlight intensity.”
Continental
at InnoTrans
Continental
unveiled a number of new innovations, including an intelligent technology for darkening glass panes and a range of individual
surface designs…. The ‘Intelligent Glass Control’ (IGC) system by Continental provides passengers with the flexibility
to adjust the amount of light and the color of their window or other glazed areas to suit their needs. The technology, which was
originally developed for the automotive industry, relies on a film sandwiched between two panes of glass and connected to an electronic
control unit (ECU).
Vision
Systems announced to the press in September 2017 that it had just signed a contract to supply SPD-Smart Nuance windows for a new
proposed special Shinkansen bullet train which will be put in service for the 2020 Tokyo Olympics.
●
|
May
2017:
|
|
|
|
AGC
Asahi Glass announced its light control glass, WONDERLITETM, was adopted for JR East luxury sleeper train, Train Suite Shiki-shima
(“Shiki-shima”), which began service on May 1. JR East’s luxury sleeper train Shiki-shima, conceptualized
as a train for ‘enjoying changes in time and space’, has been designed with individualized themes for each compartment.
Of particular note, the front carriage, containing a special area for enjoying panoramic views of Japan’s landscape,
has been outfitted with WONDERLITETM light control glass, which makes it possible to adjust passing sunlight simply with a
switch.
|
|
|
●
|
September
2016:
|
|
|
|
Vision
Systems, with its customers/strategic partners, exhibited many different types of SPD-Smart products at InnoTrans 2016. Products
included:
|
|
(a)
|
A
full-scale train cabin mockup equipped with many SPD-Smart passenger windows
|
|
(b)
|
SPD-Smart
windows with integrated transparent information displays
|
|
|
|
|
(c)
|
SPD-Smart
contrast enhancement filters for displays
|
|
|
|
|
(d)
|
SPD-Smart
windows with multi-zone switching capabilities
|
|
|
|
|
(e)
|
Train
passenger SPD-Smart windows
|
|
|
|
|
(f)
|
Aftermarket
driver cabin SPD-Smart windows
|
●
|
September
2014:
|
|
|
|
In
September 2014, Poma (a leading supplier of cable transport systems) showcased at Innotrans 2014 its Cabine H2 cable car.
The windows in this cable transport vehicle used Research Frontiers licensee Vision Systems’ “Nuance” SPD
solution. Innotrans 2014 is the largest international trade fair for rail transport technology with over 160,000 visitors
and is held every two years in Berlin, Germany. At this fair, Bombardier featured its “FLEXITY 2” tram platform
using an electronically dimmable window produced by Vision Systems. In addition, AGC, one of the largest producers of flat
glass in the world, featured its “WONDERLITE” SPD-SmartGlass train window.
|
6.
|
Automotive
Armored Glass Market:
|
Within
the automotive market, a potentially additional sector is the armored glass market. Armored glass (sometimes referred to as “transparent
armor” and “bullet-resistant glass”) encompasses the military, non-military government, and civilian markets.
In addition, SPD-Smart technology in this market not only provides the benefits of light-control and UV blockage, it also enhances
security by introducing darker tints and privacy. A number of the Company’s licensees including American Glass Products,
GKN, Isoclima, SER and Pittsburgh Glass Works are recognized industry leaders in the armored glass market.
In
August 2019, Research Frontiers licensed São Paulo, Brazil based SER Company to make SPD-SmartGlass primarily for the automotive
armored glass aftermarket in Brazil. SER Company is a Brazilian leader in the development of technologies and solutions for ballistic
cars in the protection and security sector.
7.
|
SPD-Smart
Aircraft Products:
|
Four
aircraft manufacturers have announced that they have selected SPD-Smart dimmable window products as standard or optional equipment
for their production aircraft:
●
|
Honda
Aircraft Company:
|
The
HondaJet, with first delivery in December 2015, comes with SPD-Smart electronically dimmable windows as standard equipment on
all passenger windows.
●
|
Textron-Beechcraft
has SPD-Smart electronically dimmable windows as standard equipment on models of its King Air aircraft:
|
|
●
|
The
King Air 250, with first delivery during 2015
|
|
|
|
|
●
|
The
King Air 350i, with first delivery during 2015
|
|
|
|
|
●
|
The
King Air C90GTx, with first deliveries during the first quarter of 2016
|
●
|
ONE
Aviation announced the selection of SPD-Smart electronically dimmable windows for its upcoming Eclipse 700 platform.
|
|
|
●
|
Epic
Aircraft has selected SPD-Smart electronically dimmable windows for its upcoming Epic E1000 aircraft.
|
The
Falcon 5X was scheduled to come with SPD-Smart electronically dimmable skylights as standard equipment. Subsequently, however,
Dassault announced in December 2017 that it was terminating the Falcon 5X program and announced the launch of a new Falcon program
featuring the same skylight as the Falcon 5X. This aircraft, the Falcon 6X is scheduled to enter into service in 2022.
Other
aircraft manufacturers and their suppliers continue to develop and evaluate the use of SPD technology in their window systems.
Aircraft manufacturers and SPD product suppliers have incorporated SPD-Smart electronically dimmable windows in mockups, with
some of these mockups being exhibited at major aviation shows:
Vision
Systems unveiled its aircraft and helicopter SPD-Smart solutions at the Dubai Airshow in Dubai, UAE. Among the products presented
at the show were an SPD-Smart electronically dimmable helicopter window, and a multizone SPD-Smart dimmable aircraft window with
an integrated control panel. Vision Systems also unveiled an SPD-Smart partition combining an electronically dimmable system with
an information display based on electroluminescent technology. Whether on windows or dividers, this solution can either be set
in transparent or dark mode when no information is displayed, or show short travel information. The background opacity can then
adjust automatically for perfect contrast and readability.
Vision
Systems presented its SPD-Smart EDWs at the Aircraft Interiors Expo (AIX) in Hamburg, Germany. Its system delivers important passenger
experience benefits including a cooler and quieter cabin due to remarkable thermal and acoustic insulation. The following chart
summarizes some of the performance advantages highlighted at the show that 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
|
Vision
Systems presented its second-generation SPD-Smart EDWs, branded Nuance V2, with enhanced optics and a lower cost at the NBAA business
aviation show. The solutions on display at Vision Systems’ NBAA included:
|
○
|
Multizone:
This Nuance V2 solution allows independent control of light and glare through different “zones” of an SPD-Smart
EDW, to any level of tint.
|
|
|
|
|
○
|
Variable
light control with diffused light / privacy control: This SPD-Smart solution enables instant and precise dimming from clear
to very dark, plus an opaque white or dark feature for privacy and enjoying soft, diffused daylight through the EDW.
|
|
|
|
|
○
|
Interactive:
Vision System’s Info-Vision is the first smart information window integrating SPD-Smart and electroluminescent technologies.
This economical innovation, for use in windows and cabin dividers, provides passengers with travel and other information right
on the window. The tint of the Info-Vision EDW can automatically adjust in real-time, providing optimal contrast and readability.
|
|
|
|
|
○
|
Cabin
Divider: The Nuance V2 cabin divider enables adjustable levels of privacy between classes and allows flight attendants the
ability to view multiple cabins whenever needed.
|
Fokker
Services, in partnership with InspecTech Aero Service, featured their Element EDW brand of SPD-Smart EDWs at the AIX commercial
aviation show in Hamburg, Germany:
|
○
|
An
Airbus A320 mockup was demonstrated, which includes two Element EDWs integrated into a sidewall. The EDWs replace the inboard
“scratch lens” (the surface closest to the passenger), resulting in benefits including improved optical clarity,
and the perception of larger windows as the scratch lens panel has a larger surface area than the structural window.
|
|
|
|
|
○
|
Fokker
showcased a Boeing 737 cabin mockup which includes Element EDWs.
|
At
the AIX show in Hamburg, Vision Systems unveiled the world premiere of Vision System’s Info-Vision, the first smart information
window integrating both SPD-Smart and electroluminescent technologies. This economical innovation, for use in windows and cabin
dividers, provides passengers with travel information right on the panel. The tint of the Info-Vision window or divider can automatically
adjust in real-time, providing optimal contrast and readability. Other SPD-Smart EDW solutions from Vision Systems featured at
AIX in Hamburg include:
|
○
|
Second-generation
Nuance V2 and Nuance V2 Ultra-Dark: enhanced optics and lower cost.
|
|
|
|
|
○
|
Nuance
Smart-Shell: a retrofit EDW product covering cockpit side windows.
|
|
|
|
|
○
|
Nuance
Energia: a dimmable sun visor integrating a transparent photovoltaic film for self-power.
|
PPG
Aerospace, in partnership with Vision Systems, launched a new product at the National Business Aviation Association Convention
and Exhibition in Las Vegas, Nevada. Nuance V2 Ultra Clear is a new product responding to the industry requests for aircraft cabin
shading systems that allow for brighter cabin interiors, while providing for more effective shading. This Electronically Dimmable
Window (EDW) solution uses patented SPD-Smart light control technology developed by Research Frontiers.
ONE
Aviation announced the selection of the ALTEOS EDW by PPG for its new Eclipse 700 aircraft. The Eclipse 700 aircraft is an upgraded
version of its Eclipse 500/550. The Alteos EDW utilizes the NUANCE V2 shading product by Vision Systems that uses SPD-Smart light-control
technology from Research Frontiers. As ONE Aviation stated in the announcement, “A priority at ONE Aviation is to maximize
ease of use and passenger comfort. The PPG ALTEOS system provides both with simple and effective control of window shading.”
Vision
Systems and PPG Aerospace announced that they have reached a commercial agreement to work together on developing new applications
utilizing Vision Systems’ EDW shading solutions for aircraft. These solutions use Research Frontiers’ SPD-Smart EDW
technology and also combine the considerable experience that both PPG Aerospace and Vision Systems have in supplying the aircraft
industry with EDW systems. As stated in their press release, “The agreement provides a framework for PPG and Vision Systems
to pursue opportunities in commercial, regional, military and general aviation applications that capitalize on each company’s
expertise.”
At
the MRO Europe conference Fokker Services, a division of GKN Aerospace, launched “Element EDW,” a new electronically
dimmable window system for commercial airliners. Developed in collaboration with Research Frontiers licensee InspecTech Aero Service,
this “smart transparency” controls and manages both beneficial and undesirable outside elements coming into aircraft
cabins through passenger windows.
Vision
Systems exhibited SPD-Smart EDWs at Aircraft Interiors Expo Asia and at the National Business Aviation Association (NBAA) Business
Aviation Convention & Exhibition. These products improve the airline passenger experience by controlling light, glare, heat
and noise entering the cabin.
Easier
SPD-Smart EDW control switches from InspecTech Aero Service were featured at the EBACE aircraft show on the newly redesigned King
Air 350i and 250 that were on display by Textron-Beechcraft. Also, at EBACE it was reported that the King Air C90GTx (the third
King Air to offer SPD-Smart EDWs as standard equipment) has received FAA certification, and Textron highlighted the improved EDWs
on its newly redesigned aircraft as an important cabin enhancement.
Vision
Systems debuted an Acti-Vision interactive aircraft window at the EBACE aircraft show that not only dims but brings the passenger
important information such as flight status, moving map, satellite imagery, and even tourist information about what the passenger
is looking at out the window via a transparent video touchscreen built into the window.
Vision
Systems introduced a solution for the light and glare issues commonly experienced in aircraft cockpits at the Aircraft Interiors
Expo. Vision Systems’ Nuance Smart Shell, using Research Frontiers SPD-Smart EDW technology, is designed for lateral cockpit
windows, which account for a large percentage of light and glare entering cockpits, and are extremely difficult to shade. The
Nuance Smart Shell EDW covers the entire window surface area and brings dynamic solar control to aircraft cockpits – providing
automated management of intense high-altitude light and glare, and protection from harmful UV radiation.
Vision
Systems demonstrated its Nuance Touchless SPD-Smart EDW at the 2015 Aircraft Interiors Expo in Hamburg, Germany. The new system
allows passengers to use gestures, much like those used to operate a smart phone, to control the tint of their aircraft windows,
but without ever having to touch the window or any other aircraft interior component.
Isoclima
showcased its CromaLite brand of SPD-Smart electronically dimmable windows at the Aircraft Interiors Expo in Hamburg, Germany.
Vision
Systems unveiled its SPD-Smart Opti-Visor electronically dimmable sun visor for the aircraft market at the Helicopter Association
International Heli-Expo in Orlando, Florida.
At
the 2014 MEBA show in Dubai, U.A.E., Vision Systems unveiled a new generation of its Energia photovoltaic autonomous SPD-Smart
dimmable window – the new product is capable of producing more energy than the prior generation.
Epic
Aircraft featured SPD-Smart windows in the mock-up of its upcoming E1000 aircraft. The mock-up was unveiled at 2014 NBAA in Orlando,
Florida.
At
the 2014 EBACE show in Geneva, Switzerland, Vision Systems unveiled a new SPD-Smart dimmable window product that offers passengers
the ability to independently control the tint of different “zones” within the same window. At the same show, Vision
Systems announced an improvement in the optical performance of its Nuance SPD-Smart dimmable windows – a product offering
wider amplitude between clear and dark.
BAE
Systems featured SPD-Smart electronically dimmable windows in its cabin management system mock-up at the 2014 Hamburg Airshow.
The windows can be controlled by the BAE system.
Vaupell
featured an SPD-Smart electronically dimmable window in its commercial airliner window assembly at the 2014 Hamburg Airshow.
At
the 2013 AIX Americas show, Vision Systems’ strategic partner Vaupell announced they are offering the industry a complete
SPD-Smart light-control window system – Vision Systems’ SPD-Smart Noctis window and control system, integrated with
Vaupell’s window assembly. This product offering was showcased at Vaupell’s AIX Americas booth. Vision Systems and
Vaupell entered into a strategic partnership to develop and offer SPD-Smart Noctis and Nuance windows to OEMs, including Vaupell’s
longstanding customer Boeing.
At
the 2013 NBAA, Vision Systems unveiled Energia – the world’s first self-powered dimmable window for aircraft cabins.
Energia adds the many practical, technical, and financial benefits of solar power to the instant switching speed, wide range of
light transmission, and relief from light, glare and heat that SPD-Smart aircraft windows already provide. Energia operates without
using the aircraft’s electrical system because it integrates a transparent photovoltaic layer that is capable of producing
its own energy – from the sun, or from artificial light sources. Energia facilitates the installation of dimmable windows
on new production and aftermarket aircraft. It is completely independent of the cabin’s wiring, and no modifications to
the aircraft’s existing electrical system are required. Energia was developed in collaboration with Sunpartner Technologies,
Vision Systems partner and the inventor and manufacturer of the transparent photovoltaic panel. In March 2014, Vision Systems
announced that Energia had been selected as a finalist in the prestigious 2014 Crystal Cabin Award.
In
a press release at the 2013 NBAA in Las Vegas, GKN stated: “In addition to the Global 7000/8000, the aircraft transparencies
operation equips the Beechcraft KingAir, the Lear 35/45 and 60 – and the complete Embraer aircraft family. The company’s
latest passenger windows are the largest and most effective on the market and GKN Aerospace is developing new dimmable cabin management
technology that will include full cabin blackout – providing passengers with new levels of comfort and environmental control
during their journey.”
At
the Paris Air Show, Vision Systems announced it will open its first-ever U.S. SPD-SmartGlass factory, investing nearly $1.2 million
in capital expenditures to serve customers with strong U.S. operations. The new factory was highlighted by Florida Governor Rick
Scott and Vision Systems President and CEO Carl Putman, with Research Frontiers President and CEO Joseph M. Harary and others
in attendance for this special announcement. This announcement of a further expansion to the United States indicates an acceleration
of existing and projected business in North and South America where major aircraft OEMs and customers of Vision Systems are located,
including HondaJet and Gulfstream.
Eurocopter
featured SPD-Smart windows, and SPD-Smart cabin partitions, in the mock-up of its EC175 helicopter. The mock-up was unveiled at
EBACE 2013 in Geneva, Switzerland.
Vision
Systems debuted its new SPD-Smart window with integrated electronics and controls directly on the window at the 2013 Hamburg Air
Show. Developed with strategic partner Vaupell, a world leader in the production of aircraft interior subassemblies for commercial
aerospace applications, it became the first dimmable window with integrated electronics and control panel directly on the aesthetically
attractive window reveal.
Honda
Aircraft Company featured HondaJet SPD-Smart cabin windows at the 2012 National Business Aviation Association (NBAA) Annual Meeting
& Convention. The HondaJet’s passenger windows will use SPD technology as standard equipment. SPD-Smart Nuance windows
for the HondaJet went into production at Vision Systems’ new Melbourne, Florida factory.
InspecTech
announced enhancements to its electronics architecture used to control its iShade to enable the SPD-Smart electronically dimmable
windows to switch to their clearest state in the event of a power loss – that was a request made by certain OEMs. InspecTech’s
iShades now offer “the best of both worlds” - when unpowered on the ramp, the windows automatically switch to their
darkest, maximum heat-rejecting state, and when in the air, they instantly switch to the clear state in the event of a loss of
power.
InspecTech
announced improvements to its iShade iQ including a higher light transmission, greater contrast ratio, unprecedented optical clarity,
superior acoustic and thermal insulation properties, and lighter weight.
At
the 2012 Aircraft Interiors Expo in Hamburg, Germany, Isoclima S.p.A. announced that Isoclima’s CromaLite brand of SPD-Smart
aerospace windows made its world premiere. CromaLite is Isoclima’s SPD-Smart solar control glazing product and enables users
to efficiently control the transmitted solar radiation in both the visible and the solar range. Dr. Alberto Bertolini, Executive
Director of Isoclima, commented: “Our CromaLite brand of SPD-Smart window offers many valuable light-control benefits: instant
shading, glare control, UV rejection, the desire for passenger comfort, and keeping aircraft cool when they are on the ground.
We are very excited by the reactions we have received from OEMs and cabin designers who are here at the Aircraft Interiors Expo
and are excited about our growing portfolio of SPD-Smart CromaLite solutions for the transportation and architectural markets.”
Vision
Systems announced that the company has invested over $750,000 to expand its existing factory in France to add a production facility
dedicated to the manufacture of its SPD-Smart Nuance and Noctis aerospace and transportation windows and cabin dividers.
Bombardier
Aerospace featured SPD-Smart aircraft windows in its CSeries aircraft cabin mock-up at the 2011 Dubai Airshow, equipping the business
class windows in its mock-up with SPD-Smart aerospace windows.
Vision
Systems exhibited its Nuance and Noctis brands of SPD-Smart aircraft cabin windows at the Dubai Airshow in Dubai, United Arab
Emirates. Nuance and Noctis SPD-Smart aerospace windows offer instant and precise light-control at every level which provides
OEMs and private aircraft owners a solar protection solution that enhances flying comfort and supports fuel efficiency. These
electronically dimmable aircraft and helicopter window shades and cabin dividers are impact-resistant, completely silent, available
in flat and curved surfaces, and can be controlled by the cabin management system or by passengers. Vision Systems’ Noctis
SPD-Smart product line offers enhanced blackout solar protection and complete privacy. Also, at the November 2011 Dubai Airshow,
Vision Systems announced that Bombardier Aerospace was featuring Vision Systems’ SPD-Smart aircraft windows in Bombardier’s
CSeries aircraft cabin mock-up. Bombardier equipped the business class windows in its mock-up with Vision Systems’ SPD-Smart
Noctis aerospace windows. Developed for the 100- to 149-seat market segment, the CSeries family of aircraft is Bombardier’s
all new mainline transport solution.
InspecTech
announced a new model of its SPD-Smart iShade window, branded iShade iQ. This model, in addition to the light, glare and heat
control, also reduces noise levels in the cabin.
Research
Frontiers and GKN Aerospace Transparency Systems publicly announced the expansion of the scope of the former license agreement
to include the sale of SPD-Smart windows, window shades, interior partitions, cabin dividers and other products for aircraft.
The earlier license agreement with GKN focused on SPD-Smart products for armored transportation applications. GKN Aerospace is
the world-leading supplier of cockpit transparencies and passenger cabin windows.
Key
performance requirements for aircraft light-control windows:
●
|
Level
of darkness:
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|
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|
Solar
radiation onboard aircraft is extreme and requires a dimmable window that creates an environment dark enough for passengers
to sleep, even during daylight hours. Research Frontiers licensees now offer SPD-Smart windows that can be set to block over
99.96% of incoming light, to meet the needs of OEMs and their customers.
|
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●
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Switching
speed:
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|
|
|
Whenever
a passenger wants relief from glare, SPD-Smart aircraft windows offer immediate response. Due to instant switching, an infinite
number of light-transmission states can be selected by the passenger or flight crew, from clear to blackout, and any level
of view-preserving tint in between.
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●
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Heat-blocking:
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|
Aircraft
cabins can become hot when the aircraft is parked because of solar heat streaming through windows. The result is an uncomfortably
warm cabin upon boarding or the need to use jet fuel or auxiliary power units before boarding to cool down the cabin. SPD-Smart
aircraft windows automatically switch to their maximum heat-blocking state, even when the aircraft is parked unpowered, and
the cabin remains cool.
|
Additional
challenges stated by OEMs and their customers that have been successfully met by SPD-Smart dimmable aircraft windows include:
●
|
Noise-blocking:
the ability to reduce the amount of noise transmitted through windows
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●
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Curved
shapes: the ability to offer curved windows to meet interior design needs
|
●
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Weight-reduction:
the ability to fabricate dimmable windows using lightweight plastics and thin chemically strengthened glass
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|
●
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FAA
and EASA certification: the ability to demonstrate full compliance with all FAA and EASA requirements
|
8.
|
SPD-Smart
Architectural Products:
|
Research
Frontiers and its licensees are currently working with multiple architectural customers to introduce SPD-Smart products including
windows, skylights, partitions and doors. The architectural markets for these products are highly fragmented and in general have
a high sensitivity to price. In the near term, the Company expects SPD-SmartGlass products primarily will be commercialized in
specialty applications and/or sectors that value its distinctive performance attributes including fast switching speed regardless
of window size, a very wide range of visible light transmission, infinite light-control between its dark and clear states, and
availability in unusual shapes and sizes. Research Frontiers’ end-product licensees in this sector include industry leaders
such as: American Glass Products (AGP), Asahi Glass, Cricursa Cristales Curvados, Gauzy, Glatic, Innovative Glass, Isoclima, LTI
SmartGlass, NSG UMU Products Co., Ltd Prelco, Isoclima, Smartglass International and Traco (a business unit of Alcoa).
In
December 2019, Research Frontiers licensed Seoul, South Korea based Glatic Co., Ltd. to produce and sell SPD-SmartGlass smart
windows for the South Korean architectural market.
In
January 2017, Research Frontiers and NSG UMU Products Co., Ltd. announced that UMU Products has acquired a license from Research
Frontiers to produce and sell SPD-SmartGlass architectural intelligent products throughout the United States, Canada, Mexico,
Japan, the People’s Republic of China and Taiwan. The non-exclusive license grants UMU Products, a subsidiary of world-leading
glass manufacturer Nippon Sheet Glass, the right to manufacture and sell SPD-SmartGlass products including windows, doors, solar
shading screens, curtainwalls, skylights and other intelligent smart glass architectural products.
In
September 2016, Smartglass International announced that its Solar SmartGlass brand of SPD-SmartGlass has been selected for both
new construction and retrofit projects. An example of a retrofit project is the University of Edinburgh’s historic McEwan
Hall. The interior of this hall, built in 1897, is being refurbished. In an article on the Smartglass International website, the
company indicates that its Solar SmartGlass “…will be retrofitted to the internal building walls to protect the beautiful
paintings and features for many more years to come. The glass will increase the functionality of the space by allowing instant
control over the amount of light entering the hall. Smartglass International will create bespoke solar switchable panels that
will be fitted inside each of the 13 circular oculi, each more than 2 metres in diameter.”
At
its annual stockholders meeting in June 2015, Research Frontiers announced a small strategic investment in Zuli Inc. a manufacturer
of smartplugs. At this meeting, Joseph Harary demonstrated how the Zuli Smartplug integrates with SPD SmartGlass products. Mr.
Harary indicated that “Using a Zuli Smartplug, you can walk into a room with your smartphone, and have the lights automatically
turn on, temperature adjust, and the glass in your windows instantly go from an energy-saving dark tint, to clear so you can see
the magnificent views outside your home. Now, walk into another room and have those lights and windows adjust too, while the Zuli
Smartplug automatically shuts off your devices in the room you left to save energy.”
In
March 2015, Research Frontiers’ patented SPD-SmartGlass technology was selected as the exclusive smart glass for the USA
Pavilion at this year’s World’s Fair, Expo Milano 2015 from May through October 2015. The USA Pavilion 312 large panels
of SPD-SmartGlass manufactured under license from Research Frontiers by Isoclima S.p.A. Each panel measures approximately 1 meter
by 3 meters, making the total surface area in the roof more than 10,000 square feet. This is the largest known installation of
smart glass in the world for a roof application and was seen by over six million people.
SPD-Smart
windows, skylights, doors and partitions offer various benefits in architectural applications. During 2009, independent tests
were conducted by DSET Laboratories, a division of Atlas Material Testing Technology, in accordance with ASTM and ASHRAE testing
and calculation protocols. These test results demonstrate that SPD-Smart windows have excellent solar heat rejection and control
capabilities. In January 2011 a study published by the Department of Engineering at the University of Cambridge concluded that
SPD-Smart light-control windows are exceptionally energy efficient, reducing solar heat gain by as much as 90%. The Cambridge
study indicated that the real-world testing “confirms theoretical predictions that SPD glass holds great energy saving potential
and is a technology that can really help to reduce energy wastage of glass facades.” In addition to SPD-Smart technology,
the Cambridge study discussed alternative dynamic glazing technologies that could be used in windows (e.g. electrochromics) and
reported that SPD-Smart technology did not have the disadvantages that limited the potential of these alternative technologies.
For example, the study cited that an electrochromic window that is 2.4 square meters can take up to 30 minutes to change from
clear to dark.
In
November 2011, Research Frontiers’ licensee Innovative Glass Corporation was awarded two 2010 Crystal Achievement Awards
for its smart window product line using our SPD-Smart light-control technology. In October 2010, its SPD-SmartGlass product was
awarded WFX’s (Worship Facilities Conference & Expo) New Product award for Best Building System Material Product/Window.
Innovative Glass has completed or is working on a variety of SPD-SmartGlass projects in the commercial, residential and institutional
markets. Innovative Glass also periodically exhibits its SPD-SmartGlass architectural products at Glass Expo Northeast in Hauppauge,
New York. Glass Expo Northeast is the region’s largest conference and trade show dedicated to the architectural glass and
metal industry.
Research
Frontiers licensee SmartGlass International has announced completion of several high visibility SPD-SmartGlass installations.
During February 2012, the company announced installation of SPD-SmartGlass at CERN, the European Organization for Nuclear Research,
which is one of the world’s largest and most respected centers for scientific research. SmartGlass International installed
SPD-SmartGlass in CERN’s Globe of Science and Innovation that will house a permanent exhibition and is intended to serve
as a venue for a wide range of activities, conferences and other events, In February 2011, SmartGlass International announced
it supplied retrofit SPD-SmartGlass to five London television studios of the Associated Press. The SPD-SmartGlass used in these
projects harvests daylight when it’s needed, improves occupant comfort by providing controllable solar shading during peak
light conditions, and preserves views. Just prior to this installation, it was announced that SmartGlass International installed
retrofit SPD-SmartGlass panels at the set of “Daybreak,” the breakfast anchor program from ITV, one of the UK’s
largest commercial television networks.
In
2014, Research Frontiers added Teknoglass Solutions LLP and Diamond Glass. Teknoglass Solutions LLP acquired a license from Research
Frontiers Inc. to make and sell SPD-SmartGlass architectural smart window products in the United Kingdom and Republic of Ireland.
Diamond Glass acquired a license from Research Frontiers Inc. to make and sell SPD-SmartGlass architectural smart window products
throughout Europe. In November of 2013 Research Frontiers announced that it had a new licensee, MDV, who is targeting the architectural
market in Brazil. In March of 2013 Research Frontiers announced that it had added two new licensees, Tint-It JSC and Advnanotech,
both of whom are targeting the architectural market (in addition to the automotive aftermarket discussed previously) in Russia.
9.
|
SPD-Smart
Marine Products:
|
Research
Frontiers and its licensees are currently working with marine customers to introduce SPD-Smart products including windows, doors
and partitions. When our patented SPD-Smart light-control technology is used in yacht windows and other products, users can quickly
and precisely control and “tune” the amount of light, glare and heat coming through their windows, while preserving
their view. Diamond Sea Glaze Manufacturing commenced marketing activities for products using SPD technology during the second
quarter of 2011 but did not renew its license for SPD-SmartGlass technology for the marine market which terminated at the end
of December 2017.
In
June 2019, Vision Systems exhibited at the Cruise Ship Interiors Expo in Miami, Florida. Building upon its expertise in dimmable
shading systems, Vision Systems exhibited its Electronically Dimmable Windows (EDWs) for solar protection and privacy, including
a curved dimmable solution, a complete privacy solution, and a multizone Electronically Dimmable Window with integrated information
display. Vision Systems’ innovative solutions make it possible to eliminate shades that clutter up the space, block the
view and require regular maintenance. They also allow for a solar protection on windows where shades could not, or be difficult,
to be installed.
In
October 2016, Vision Systems announced at the Monaco Yacht Show and 2016 IBEX new relationships for offering SPD-SmartGlass products
with Taylor Made Systems, ProCurve Glass, and Yachtglass. In addition, the Monaco Yacht Show hosted the world premiere of the
“Edition 1” model of the “ARROW460 – Granturismo,” which has SPD-Smart dimmable glazing products
throughout the Silver Arrows Marine motor yacht supplied by Vision Systems and designed by Mercedes-Benz Design.
In
November 2015, Silver Arrows Marine in conjunction with Mercedes-Benz Style (a design arm of Mercedes-Benz) unveiled a new yacht
called the ARROW460 – Granturismo featuring an SPD-SmartGlass electronically dimmable roof. The roof, which is supplied
by licensee Vision Systems, will be able to be electrically risen, creating a “glass pergola” effect on the yacht.
First customer deliveries of this production yacht are planned to start in early 2016. Vision Systems presented its products at
the 2015 Marine Equipment Trade Show in Amsterdam in November 2015 and at the Monaco Yacht Show in September 2015.
In
November 2013, Hatteras Yachts unveiled its new flagship motor yacht, the 100 Raised Pilothouse with dual SPD-SmartGlass skylights
in the galley as standard equipment at the 2013 Fort Lauderdale Boat Show.
In
February 2013, licensee Isoclima demonstrated its VebLite brand of SPD-SmartGlass for marine applications at SEATEC 2013 in Italy.
SEATEC is a leading international exhibition of technology and design for boats, megayachts and ships.
In
November 2012, licensee Isoclima exhibited its VebLite brand of SPD-SmartGlass for marine applications at the Marine Equipment
Trade (METS) Show 2012 in The Netherlands. VebLite is Isoclima’s SPD-Smart solar control and privacy glazing product that
functions like a venetian blind. It has multiple segments that provide instantly customizable shading fully controlled by the
passenger that can be operated individually to create the effect of a shade being raised or lowered or moved to the side. This
precisely controls where incoming heat and glare enter a yacht or boat through a window or rooflite, and also controls privacy
levels.
In
addition to exhibiting its SPD-Smart marine products at METS 2012, licensee Vision Systems’ SPD-Smart Nuance dimmable marine
window was named the category winner in the prestigious METS 2012 Design Award METS (DAME) competition for interior equipment,
furnishing, materials and electrical fittings used in cabins. DAME is considered the world’s most prestigious design competition
for new marine equipment and accessories. In METS’ news release about the DAME award, it was noted “The Jury felt
that Nuance is a major innovation that will benefit designers and owners greatly - with comparatively little increase in cost.”
In
October 2011, Cheoy Lee Shipyards unveiled the Alpha 76 Express, its most advanced production yacht, which is fully equipped with
the latest yacht design features including SPD-SmartGlass supplied by Research Frontiers licensee Diamond Sea Glaze. The Alpha
has approximately 150 square feet of SPD-SmartGlass at various places throughout the vessel and it is the first large-scale production
yacht to make such extensive use of SPD-SmartGlass. In October 2012, Cheoy Lee Shipyards exhibited two yachts – the Alpha
76 Express and the Alpha 76 Flybridge – at the 2012 Fort Lauderdale International Boat Show with SPD-SmartGlass.
10.
|
VariGuard
SmartGlass:
|
In
May 2013, Research Frontiers announced the formation of its VariGuard SmartGlass business unit. This business unit allowed the
Company to directly address market opportunities for SPD technology outside the scope of its current license agreements or the
focus of its licensees. VariGuard SmartGlass was a developmental activity for the Company and its revenues are currently immaterial
relative to the Company’s licensing activities.
The
VariGuard SmartGlass business unit marketed and sold SPD-Smart products directly to customers for specialty uses such as the protection
of artwork and light-sensitive documents in museums and private collections. The business uses an optimized fabrication designed
specifically for its exhibition panels. The production of these panels is outsourced to current licensees that have experience
producing SPD laminates.
Excessive
light-exposure is a leading cause of irreversible damage to many precious objects, particularly works on paper, textiles and watercolor.
Presently, no display system is able to provide these artifacts with any protection against visible light damage. VariGuard SmartGlass
provides the world’s first and only display panels that limit an artifact’s light-exposure only to when the artifact
is being viewed. This provides unequalled protection for light-sensitive artifacts by substantially reducing an artifact’s
overall lux-hour exposure when compared to conventional display panels.
VariGuard
SmartGlass marketing and exhibition activities include:
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October
2018: In an inauguration ceremony presided over by the King and Queen of Sweden, the country’s Nationalmuseum reopened
after a five-year $132 million renovation. The Nationalmuseum selected ArtRatio’s display case, engineered using VariGuard
SmartGlass, to allow visitors to experience these objects while at the same time providing unprecedented protection against
irreversible damage from exposure to light.
|
Some
of the works being protected by the ArtRatio display case include:
|
●
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Book
of Hours, St. Christopher carrying the Christ Child, watercolour and gold on parchment, Spain, c1400.
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|
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Book
of Hours, Arrest of Christ, watercolour and gold on parchment, France, c1500.
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Ivory
object, Christ on the Cross, France, c1350.
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Book
of Hours, St. Catherine and Kneeling Donor, watercolour and gold on parchment, Netherlands, c1430.
|
|
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Book,
The Hours of Giraldi-Guicciardini: The Rising of Lazarus; Death Carrying a Scythe; 1500-1525, Watercolour, gold on parchment,
Italy.
|
Many
objects in the collection date from the Middle Ages and are highly susceptible to permanent damage from exposure to UV, visible
and infrared light.
Nationalmuseum
Comments:
“The
ArtRatio smart glass table works wonderfully, does its job of protecting our manuscripts and looks great in the room as well!”
Carina Pia Fryklund – Curator, Department of Prints and Drawings, Nationalmuseum
“With
VariGuard SmartGlass we can now show very light sensitive illuminations in a gallery where we also let daylight coming in.”
Joakim Werning – Exhibition Designer, Nationalmuseum
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January
2018: VariGuard SmartGlass showcased its SPD-SmartGlass products at the West Coast Art
and Framing Expo at Omega Moulding’s booth #431.
|
●
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December
2017: To raise awareness of the unprecedented benefits of VariGuard SmartGlass, the Company has launched an advertising campaign
targeting the display case and custom framing industries. The first phase of the campaign utilizes publications from leading
conservation institutions in the US (Journal of the American Institute of Conservation) and the UK (Institute of Conservation)
as well the leading institution for the picture framing industry (Picture Framing Magazine).
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May
2017: VariGuard SmartGlass showcased its SPD-SmartGlass products at the 45th annual meeting of the American Institute for
Conservation of Historic and Artistic Works (AIC) in Chicago at booth #107.
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September
2015: The Church History Museum, operated by The Church of Jesus Christ of Latter-day Saints, installed 22 exhibit cases containing
VariGuard SmartGlass panels to protect light sensitive documents and artifacts. VariGuard panels provide a better viewing
experience (by allowing substantially higher gallery illumination levels), while simultaneously reducing damaging visible
light-exposure to artifacts.
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August
2015: The Smithsonian’s National Postal Museum selected VariGuard SmartGlass panels to protect the 1856 British Guiana
One Cent Magenta, the world’s most famous rare postage stamp.
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●
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May
2015: VariGuard SmartGlass exhibited its products at the American Institute for Conservation of Historic and Artistic Works
(“AIC”) 43rd annual meeting in Miami, FL. Seth Van Voorhees, President of the VariGuard SmartGlass business unit
commented: “Our display panels offer the highest level of protection against UV and visible light damage in the industry
and they are being used in cases, frames and wall cases to protect various light sensitive artifacts in museums internationally.
Reinforcing the benefits of VariGuard panels and how they limit light exposure, the Smithsonian National Postal Museum presented
a paper at this meeting entitled “(Year of Light) Lighten Up: Enhancing Visitor Experiences,” which will discuss
the positive impact that VariGuard panels have in protecting valuable artifacts and enhancing the visitor experience.
|
●
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January
2015: VariGuard SmartGlass exhibited its display panels at a Washington Conservation Guild meeting focused on innovative new
conservation technologies at the Smithsonian Institution’s S. Dillon Ripley Center in Washington, DC.
|
●
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November
2014: VariGuard SmartGlass was invited to present at a meeting of the Washington Conservation Guild which was entitled: “Outsmarting
Light: SmartGlass Technology in Exhibitions”. At this meeting, results of the light conservation benefits of its light
control panels at the National Postal Museum were reported. This study quantified the dramatic reduction (>86%) in light
exposure that artifacts experienced in cases using VariGuard SmartGlass display panels versus traditional glass display panels.
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|
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●
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June
2014: VariGuard SmartGlass business unit announced that the Smithsonian’s National Postal Museum will use VariGuard
SmartGlass panels based on SPD-SmartGlass technology at the “Behind the Badge” exhibition in Washington, DC. This
exhibit showcases the work of one of the nation’s oldest federal law enforcement agencies and VariGuard panels are featured
in display cases that showcase historic light-sensitive artifacts.
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|
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●
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January
2014: VariGuard SmartGlass announced that Omega Moulding will distribute its patented light control SmartGlass products for
frames and display cases in the United States and Canada. That month Omega Moulding showcased the benefits of VariGuard SmartGlass
products at the 15th Annual West Coast Art and Frame Expo and National Conference in Las Vegas, NV.
|
|
|
●
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May
2013: VariGuard SmartGlass featured its panels in several framing applications at Museum Expo 2013 at the Baltimore Convention
Center in Baltimore, MD.
|
On
March 14, 2019, the Company suspended its VariGuard SmartGlass business unit activities. Instead, the Company licensed a new entity
to pursue the business opportunities previously pursued by the Company’s VariGuard SmartGlass business unit. This new licensee
continues to use the VariGuard SmartGlass name. The non-exclusive license grants this new licensee the right to manufacture and
sell: (i) SPD-SmartGlass products used in panels, frames, cases, wall cases, appliances or other similar products to protect light-sensitive
documents, artwork or other objects, (ii) SPD-SmartGlass products used in panels, frames, cases, wall cases, appliances or other
similar products to provide “hide and reveal” functionality, and (iii) SPD-SmartGlass products used in a medical device
to provide control and management of visible light.
More
information about VariGuard SmartGlass can be found on its independent website at www.VariGuard.com.
Marketing
Activities and Licensee Support:
In
addition to supporting the efforts of its licensees, the Company also recognizes the need to develop the SPD industry as a whole.
As such, the Company continues to plan and execute complementary programs that build awareness and interest in smart glass generally
and demand for SPD-Smart products specifically. In the last several years, these programs included presentations at various general
industry conferences, participation in panel presentations and discussions hosted by academia, development of trade association
educational materials, and presentations to architects, designers, and other influential specifiers.
In
January 2020, the Company and Gauzy presented at the CES in Las Vegas the benefits of SPD-SmartGlass for the automotive, architectural
and consumer electronics industries. Some examples on display were automotive sunroofs that could be controlled electronically
with a variety of control systems including smart speakers, high definition and projection displays. The use of SPD-SmartGlass
technology enhances the clarity and vibrancy of displayed images, and when used to control the tint of automotive windows, sunroofs
and sun visors, reduces heat, light or glare on demand or automatically. This can increase the driving range of electric vehicles
by up to 5.5% and reduce CO2 emissions by up to four grams per kilometer and reduce air conditioner compressor sizes by 40%.
In
February 2019, Research Frontiers and its licensee Gauzy rang the opening bell at the Nasdaq Market Site in Times Square to announce
Gauzy’s new SPD-Smart light control film factory in Stuttgart, Germany. In early December 2019, Research Frontiers, Gauzy
and executives from the automotive and architectural smart glass industries, invited guests and government officials, celebrated
the opening of Gauzy’s new state-of-the-art production facility in Stuttgart, Germany. In May 2019, Research Frontiers presented
the benefits of SPD-SmartGlass to the Automotive Industry at the 5th International CTI Automotive Glazing USA conference in Novi,
Michigan. In March 2019, the Company presented the benefits of SPD-SmartGlass to the Automotive Industry at the Automotive Glazing
Summit in Berlin, Germany. Both of these presentations focused on a real-world analysis of the use, benefits and reliability of
SPD-SmartGlass in automotive and other glazings. SPD-SmartGlass technology, which allows users to instantly vary the tint of glass
or plastic, is currently being used in the automotive, aircraft, marine, architectural, museum and consumer electronics industries.
In
2018, the Company was invited to speak at the 12th International CTI Conference – Automotive Glazing Europe and at the 3rd
Annual 2018 Disruptive Growth & Healthcare Conference on the subject of disruptive automotive technologies. In 2017 and 2016,
the Company participated in clean tech, emerging growth and automotive glass conferences in Europe, and during 2016 the Company
presented at the Autonomous Vehicle Interior Design & Technology Symposium in Novi, Michigan and was the keynote speaker,
and event chairman, at the annual CTI Automotive Glazing USA Conference in Rochester, Michigan.
The
Company’s market development department has a number of other initiatives in place. To help guide and prioritize its technical
and marketing investments, the Company periodically retains outside strategic marketing and other consultants to help generate
increased short- and medium-term market penetrations for each of the major markets for the Company’s light-control technology,
and to provide support and guidance to the Company’s licensees worldwide.
The
Company has emerged as a leading resource for market research information on the subject of smart glass. Research Frontiers lectures
and presents at industry conferences in areas of energy efficiency, daylight harvesting and sustainability. The Company has published
independent test data about SPD-SmartGlass, shared the results of its research studies and test data with industry and the media,
posted various reference materials to the Company’s website for global dissemination, and published presentations, data
and bylined articles.
Research
Frontiers maintains an active role with various standards-setting organizations, including ASTM International, which has an active
committee developing standards for smartglass.
In
addition to Research Frontiers providing overarching support of licensees’ sales efforts by developing the SPD industry
as a whole, leveraging its prominence as a leading resource on the topic of smart glass, and maintaining an active role with standards
organizations, Research Frontiers also supports licensees’ marketing and sales efforts directly. Activities include advising
and assisting with branding strategies and advertising campaigns, website development and other marketing materials, joint presentations
to prospective customers, and additional support. As a focal point of interest in smart glass, resulting in many consumer and
business inquiries, Research Frontiers has an active referral program to generate customer leads for its licensees.
As
part of this mission to develop the industry and to support our licensees’ acquiring SPD projects, Research Frontiers completed
the construction of the SPD-SmartGlass Design Center. This Center is also configured as an interactive and energy-efficient “smart”
executive office and conference room and is located at the Company’s corporate headquarters in Woodbury, New York. The SPD-SmartGlass
Design Center features leading-edge SPD-Smart windows of different sizes (some floor-to-ceiling) and framing materials. It has
a multi-functional electronic controller system for manual, remote, and automatic SPD-SmartGlass switching, and windows that can
be controlled remotely over the internet or using a smart phone. This interactive area also contains other types of smart glass,
such as those using liquid crystal and electrochromic technologies, allowing users to operate and experience first-hand the differences
in performance characteristics of different types of smart glass. Additional showcases of SPD-SmartGlass are being established
in other geographic locations to make it convenient for even more people to experience the benefits of SPD-SmartGlass technology.
Research
Frontiers’ Design Center is the only known public forum where designers, specifiers and end-users can compare performance
between SPD-Smart technology and products using other light-control technologies. Research Frontiers believes that the growth
of the smart glass industry will accelerate as more information is made available through direct comparisons. Research Frontiers
believes that SPD products will be strongly preferred over competing technologies once a direct comparison is available to potential
buyers. Research Frontiers continues to encourage its competitors to participate in public forums where consumers of electronically
tintable products can see the relative performance of products that are available.
Licensees
of Research Frontiers:
The
Company’s licensees are currently categorized into four main areas: materials for making films (emulsions), film, lamination
of film to glass or plastic, and end-products. Emulsion makers produce and combine the necessary materials (i.e. SPD particles
and various liquids and special polymers) from which SPD-Smart films are made. The film makers coat a thin layer of emulsion between
two sheets of plastic film, each of which has a transparent conductive coating. This emulsion is then partly solidified to form
an SPD film that allows users to control the amount of light, glare and heat passing through this film. The end-product licensees
then integrate this film into a variety of SPD-Smart products or make electronic systems to control such SPD-Smart products. Some
of these end-product licensees do their own lamination of the SPD light-control film to glass or plastic, and some outsource this
lamination to other companies. The names of Research Frontiers’ licensees, and the year that their license agreements were
entered into, are available on the Company’s SmartGlass.com website and with its filings with the Securities and Exchange
Commission.
Licensees
of Research Frontiers that incorporate SPD technology into end-products will pay Research Frontiers a royalty of 5-15% of net
sales of licensed products under license agreements currently in effect and may also be required to pay Research Frontiers fees
and minimum annual royalties. Licensees that sell components (such as SPD emulsion or film) or lamination services to other licensees
of Research Frontiers do not pay a royalty on such sale or service, and Research Frontiers will collect a royalty from the licensee
incorporating these components into their own SPD-Smart end-products. Research Frontiers’ license agreements typically allow
the licensee to terminate the license after some period of time and give Research Frontiers only limited rights to terminate before
the license expires. The licenses granted by the Company are non-exclusive and generally last as long as Research Frontiers’
patents remain in effect. Due to their bankruptcy filings or other termination of their general business activities or for other
reasons, the Company does not believe that Polaroid Corporation, Kerros Limited, ThermoView Industries, BRG Group, MDV, Hanamac,
SPD Technologies, SPD Systems, and Film Technologies International are pursuing business activities with respect to SPD technology.
The Company and SPD Control Systems agreed to terminate their license agreement in December 2014 which resulted in a grant back
to Research Frontiers of certain rights in SPD Control Systems’ intellectual property. Some of the Company’s other
licensees are currently inactive with respect to SPD technology, but may hereafter become active again. To date, the Company has
not generated sufficient revenue from its licensees to profitably fund its operations.
The
Company plans to continue to exploit its SPD-Smart light-control technology by entering into additional license and other agreements
with end-product manufacturers such as manufacturers of flat glass, flat panel displays and automotive products, and with other
interested companies who may wish to acquire rights to manufacture and sell the Company’s proprietary emulsions and films.
Although the Company believes based upon the status of current negotiations that additional license agreements with third parties
will be entered into, there can be no assurance that any such additional license agreements will be consummated, or of the extent
to which any current or future licensee of the Company will produce or sell commercial products using the Company’s technology
or generate meaningful revenue from sales of such licensed products.
The
Company’s plans also call for further development of its technology and the provision of additional technological and marketing
assistance to its licensees to develop commercially viable SPD-Smart products and expand the markets for such products. The Company
cannot predict when or if new license agreements will be entered into or the extent to which commercial products will result from
its existing or future licensees because of general economic conditions and the risks inherent in the developmental process and
because commercialization is dependent upon the efforts of its licensees as well as on the continuing research and development
efforts of the Company.
Competitive
Technologies:
The
Company believes that SPD light-control technology, in which particles move under the influence of an electric field, has certain
performance advantages over other “smart glass” technologies.
The
Company believes that pricing and product performance are the two main factors critical to the adoption of smart glass products.
Because the non-SPD smart glass technologies listed below do not have published, consistent pricing or cost data that can be relied
upon, the Company cannot accurately report its price position relative to these other technologies. In terms of product performance,
the Company believes that SPD-SmartGlass technology offers numerous advantages over other smart glass technologies as discussed
below.
Variable
light transmission technologies can be classified into two basic types: “active” technologies that can be controlled
electrically by the user either automatically or manually, and “passive” technologies that can only react to ambient
environmental conditions such as changes in lighting or temperature. One type of passive variable light transmission technology
is photochromic technology; such devices change their level of transparency in reaction to external ultra-violet radiation. As
compared to photochromic technology, the Company’s SPD technology permits the user to adjust the amount of light passing
through the viewing area of the device, rather than the viewing area of the photochromic device merely reacting to external radiation
without control by the user. In addition, the reaction time necessary to change from light to dark with SPD-Smart technology can
be almost instantaneous, as compared to the much slower reaction time for photochromic devices. Also, unlike SPD technology, photochromic
technology does not function well at the high and low ends of the temperature range in which smart windows and other devices are
normally expected to operate, nor does photochromic technology perform well in vehicles or other enclosed settings where existing
glass is blocking incoming ultra-violet light which is required for photochromic devices to operate.
Similarly,
thermochromic smart windows are passive systems which change their light transmission properties as sunlight heats or cools the
glass. Because the light transmission properties of thermochromic systems are not controlled by the user, their ability to adapt
to the specific needs of occupants is very limited. For example, thermochromic glazings will remain tinted on hot days even when
occupants desire more daylight to enter the building or when they want to preserve their views. SPD-Smart windows, which require
very low amounts of power to operate, allow for much greater control of incoming light, glare and heat and can be adjusted to
any level of light transmission from dark to clear at any time. In addition, SPD-Smart windows can block up to 99.5% of incoming
light, a level many times darker than thermochromic systems. The added advantage offers much higher levels of privacy and control
over incoming solar energy. Companies involved in thermochromic technology include Pleotint, Suntek and Ravenbrick.
Active,
user-controllable technologies, sometimes referred to as “smart” technologies, are generally more useful than passive
technologies because they allow the user to actually control the state of the window. This control is achieved with a manual adjustment,
or automatically when coupled with a timer or sensing device such as a photocell, motion detector, thermostat or other intelligent
building system.
There
are three main types of active devices which are compared below:
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|
Electrochromic
devices (EC)
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|
|
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Liquid
crystal devices (LC)
|
|
|
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Suspended-particle
devices (SPD)
|
Electrochromic
Technology:
Electrochromic
windows and rear-view mirrors use a direct current voltage to alter the molecular structure of electrochromic materials (which
can be in the form of either a liquid, gel or solid film) causing the material to darken. When compared to electrochromic devices,
SPD technology is expected to have numerous potential performance and manufacturing advantages, including some or all of the following:
●
|
significantly
faster response time, especially compared to larger electrochromic glazings
|
|
|
●
|
ability
to precisely “tune” an infinite number of intermediate light-transmission states
|
|
|
●
|
consistent
and uniform switching speed regardless of size of glazing area
|
|
|
●
|
more
reliable performance over a wider temperature range
|
|
|
●
|
higher
contrast ratios and the capability of achieving darker shaded states for large area product applications
|
●
|
unpowered
state is dark, maximizing solar heat gain benefits when the room, office or vehicle is not in use
|
|
|
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lower
electrical current drain
|
|
|
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higher
estimated battery life in applications where batteries are used
|
|
|
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no
“iris effect” (where light transmission changes first occur at the outer edges of a window or mirror and then
work their way toward the center) when changing from clear to dark and back again
|
|
|
●
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SPD
technology is a film-based technology that can be applied to plastic, acrylic, and chemically strengthened glass as well as
glass, and which can be applied to curved as well as flat surfaces
|
|
|
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available
in single panels for retrofitting existing windows, skylights and doors
|
Many
companies with substantially greater resources than Research Frontiers such as 3M, Gentex Corp., Pilkington, PPG Industries, Saint-Gobain
and other large corporations have pursued or are pursuing projects in the electrochromic area. While some of these companies have
reportedly discontinued or substantially curtailed their work on electrochromics due to technical problems and issues relating
to the expense of these technologies, at least four companies (Gentex, PPG Industries, View (formerly known as Soladigm), and
Sage Electrochromics) are currently working to commercialize electrochromic window products. In May 2012, Saint-Gobain acquired
Sage Electrochromics and combined all of their respective electrochromic manufacturing and developmental efforts. In late 2020,
View announced that it was trying to become a public company by merging with a Special Purpose Acquisition Company (“SPAC”)
CF Finance Acquisition Corp. II (Nasdaq: CFII).
Liquid
Crystal Technology:
To
date, the main types of liquid crystal smart windows have been produced by Taliq Corp. (a subsidiary of Raychem Corp. which has
since discontinued its liquid crystal operations and licensed its technology to others), Asahi Glass Co., Gauzy, Nippon Sheet
Glass, Saint-Gobain Glass, iGlass Projects Pty Limited, Polytronix, Inc., DMDisplays, and 3M (which has also reportedly discontinued
its liquid crystal film making operations). The first four companies listed above are also licensees of Research Frontiers Inc.
for SPD-Smart technology. Liquid crystal windows only change from a cloudy, opaque milky-white to a clear state, are hazy when
viewed at an angle and have no useful intermediate states. As compared to liquid crystal windows, SPD smart windows are expected
to have some or all of the following advantages:
●
|
have
less direct and off-angle haze
|
|
|
●
|
In
its intermediate tinted states provides shading without loss of view
|
|
|
●
|
operates
over a wider temperature range
|
|
|
●
|
uses
less power
|
|
|
●
|
higher
contrast ratios
|
|
|
●
|
reduction
in the amount of light transmitted rather than simply scatter it
|
|
|
●
|
permits
an infinite number of intermediate states between a transparent state and a dark blue state, rather than typically just two
states.
|
|
|
●
|
offers
superior solar heat gain control
|
In
the flat panel display market, further development (such as the achievement of faster switching speeds sufficient for full-motion
video applications) is required if the Company expects to compete against display technologies that are currently being used commercially
such as liquid crystal displays (“LCDs”) and organic light-emitting diodes (“OLEDs”). Some of the advantages
that SPD displays might have include the ability to make displays without using sheet polarizers or alignment layers, and lower
light loss and a corresponding reduction in backlighting requirements. However, such products need additional product design,
engineering or testing before an evaluation of the commercial potential of such SPD-SmartGlass products can be determined and
when, or if, its licensees may begin to penetrate the flat panel display market.
LCDs
and other types of displays, liquid crystal windows, as well as electrochromic self-dimmable rear-view mirrors, are already on
the market, whereas products incorporating SPD technology (as well as electrochromic windows) have only begun to appear in the
marketplace. Therefore, the long-term durability and performance of SPD-Smart displays have not yet been fully ascertained. The
companies that manufacture LCD and other display devices, liquid crystal windows, and electrochromic self-dimmable rear-view mirrors
and windows, have substantially greater financial resources and manufacturing experience than the Company. There is no assurance
that comparable systems having the same advantages of the Company’s SPD technology could not be developed by competitors
at a lower cost or that other products could not be developed which would render the Company’s products difficult to market
or otherwise render our products obsolete.
Research
and Development:
As
a result of the Company’s research and development efforts, the Company believes that its SPD technology is now, or with
additional development will become, usable in a number of commercial products. Such products may include one or more of the following
fields: “smart” windows, doors, skylights and partitions; variable light transmission eyewear such as sunglasses and
goggles; self-dimmable automotive sunroofs, windows, sun visors, and mirrors; display cases/frames; and instruments and other
information displays that use digits, letters, graphic images, or other symbols to supply information, including scientific instruments,
aviation instruments, automobile dashboard displays and, if certain improvements can be made in various features of the Company’s
SPD technology that increases switching speed to the levels needed for video applications, portable computer displays and flat
panel television displays.
Even
though the Company’s SPD technology has much faster switching speeds than electrochromic technology, current switching speeds
are not fast enough for such video applications. The Company believes that most of its research and development efforts have applicability
to products that may incorporate the Company’s technology. At its current state of development, the Company’s technology
has been judged sufficiently advanced by various of its licensees and their customers for them to proceed with the development,
introduction and sale of SPD-Smart products. However, the Company is continuously investing in research and development because
it believes that further improvements will result in accelerated and increased market penetration. The Company intends to continue
its research and development efforts for the foreseeable future to improve its SPD light-control technology and thereby assist
our licensees in the product development, sales and marketing of various existing and new SPD-Smart products.
During
the past few years, the Company and/or its licensees have made significant advances relating to materials to enable (1) improved
stability of SPD emulsions, (2) a wider range of light transmission, (3) improved film adhesion and cohesion and (4) increased
durability of SPD films/laminates, and (5) cost reductions. These advances have resulted in 50 patents being issued to the Company
by the US Patent Office and by foreign patent offices between 2018-2020 in addition to other patents and patent applications that
are pending worldwide.
The
Company has devoted most of the resources it has heretofore expended to research and development activities with the goal of producing
commercially viable SPD products and has developed working prototypes of SPD-Smart products for several different applications,
with primary emphasis on smart windows for various industries. In addition to working with the Company’s licensees, Research
Frontiers has also expanded its efforts to also work directly with some of our licensees’ major customers.
Research
Frontiers’ main goals in its research and development include:
●
|
developing
wider ranges of light transmission and quicker switching speeds
|
|
|
●
|
developing
different colored particles
|
|
|
●
|
reducing
the voltage required to operate SPDs
|
|
|
●
|
obtaining
data and developing improved materials regarding environmental stability and longevity
|
|
|
●
|
quantifying
the degree of energy savings expected by users of the Company’s technology including the degree that SPD technology
can control heat and its contribution to energy savings directly and through daylight harvesting strategies in sustainable
building designs
|
|
|
●
|
continually
striving to improve the performance and reducing material/production costs associated with making SPD-Smart products
|
Excluding
non-cash expenses of approximately $17,000 and $143,000, associated with the grant of stock options to the Company’s technical
personnel, Research Frontiers incurred approximately $611,000 and $892,000 during the years ended December 31, 2020 and 2019,
respectively, for research and development costs. Research Frontiers plans to engage in substantial continuing research and development
activities to invest in future improvements in SPD light-control technology and to expand for its licensees the capabilities of
SPD-Smart technology and the markets for SPD-Smart products.
Patents
and Proprietary Information:
Research
Frontiers continues to make substantial investments to develop, license and protect its intellectual property position. The Company
has 17 United States and 229 foreign patents in force. The Company’s United States patents expire at various dates from
2021 through 2037, while its foreign patents expire at various dates from 2021 through 2037.
The
Company has current US and foreign patent applications that, if granted, would add a number of additional patents to its portfolio.
The Company believes that its SPD light-control technology is adequately protected by its patent position and by its proprietary
technological know-how. However, the validity of the Company’s patents has never been contested in any litigation. The Company
also possesses know-how and relies on trade secrets and nondisclosure agreements to protect its technology. The Company generally
requires any employee, consultant, or licensee having access to its confidential information to execute an agreement whereby such
person agrees to keep such information confidential.
Rights
Plan:
In
February 2013, the Company’s Board of Directors adopted a Stockholders’ Rights Plan (the “Rights Plan”)
and declared a dividend distribution of one right (a “Right”) for each outstanding share of Company common stock to
stockholders of record at the close of business on March 3, 2003 (“Record Time”) and authorized the issuance of one
Right in respect of each share of Common Stock issued after the Record Time and prior to the Separation Time.
“Separation
Time” shall mean the earlier of the Close of Business on the tenth Business Day (or such later date as the Board of Directors
may from time to time fix by resolution adopted prior to the Separation Time that otherwise would have occurred) following but
not including (i) the date on which any Person commences a tender or exchange offer that, if consummated, would result in such
Person’s becoming an Acquiring Person, and (ii) the date of the first event causing a Flip-in Date to occur; provided that
if any tender or exchange offer referred to in clause (i) of this paragraph is cancelled, terminated or otherwise withdrawn prior
to the Separation Time without the purchase of any shares of Common Stock pursuant thereto, such offer shall be deemed, for purposes
of this paragraph, never to have been made.
Subject
to certain exceptions listed in the Rights Plan, if a person or group has acquired beneficial ownership of, or commences a tender
or exchange offer for, 15% or more of the Company’s common stock, unless redeemed by the Company’s Board of Directors,
each Right entitles the holder (other than the acquiring person) to purchase from the Company $80 worth of common stock for $40.
If the Company is merged into, or 50% or more of its assets or earning power is sold to, the acquiring company, the Rights will
also enable the holder (other than the acquiring person) to purchase $80 worth of common stock of the acquiring company for $40.
The Rights will expire at the close of business on February 11, 2023, unless the Rights Plan is extended by the Company’s
Board of Directors or unless the Rights are earlier redeemed by the Company at a price of $.0001 per Right. The Rights are not
exercisable during the time when they are redeemable by the Company.
The
above description highlights some of the features of the Company’s Rights Plan and is not a complete description of the
Rights Plan. A more detailed description and copy of the Rights Plan has been filed with the SEC and is available from the Company
upon request.
Available
Information:
Our
principal executive offices are located at 240 Crossways Park Drive, Woodbury, New York 11797, our telephone number is (516) 364-1902,
and our Internet website address is www.SmartGlass.com. We make available free of charge on or through our Internet website our
annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements on Schedule 14A, and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon
as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC.