Good afternoon, ladies and Gentlemen. Welcome to Research Frontiers Investor Conference Call to discuss results for the second quarter of 2015 and recent developments. During today’s presentation all parties will be in a listen-only mode. [Operator Instructions] This conference is being recorded today. A replay of this conference call will be available starting at 12:00 PM on August 7, 2015 in the Investors Section of Research Frontiers website at www.smartglass.com, and will be available for replay for the next 90 days. Please note that some of the comments made today may contain forward-looking information. The words expect, anticipate, plans, forecast and similar expressions are intended to identify forward-looking statements. Statements that are not historical facts are forward-looking statements that are made pursuant to the Safe Harbor Provisions that are part of the Securities Litigation Reform Act of 1995. These statements reflect the company’s current beliefs, and a number of important factors could cause actual results for future periods to differ materially from those expressed. Significant factors that could cause results to differ from those anticipated are described in our filings with the SEC. Research Frontiers undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties. The company will be answering many of the questions that were e-mailed to it prior to this conference call either in their presentation or as part of the Q&A session at the end. [Operator Instructions] Also we ask that you keep your question brief in the interest of time. I would now like to turn the conference over to Joseph Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

Thank you, Gary. And as Gary mentioned, we’re going to try to answer as many questions over e-mail to us as possible. But if we haven’t, there will be an opportunity later on to get your questions answered. Joining me today is Seth Van Voorhees, who is our CFO and also heads up our VariGuard division. The quarterly result for the second quarter marks the beginning of a major inflection point for Research Frontiers. The most important thing for all of us is revenues. Fee income in the second quarter of 2015 increased by $407,875, or a 103% above the second quarter 2014 fee income of $803,494. Fee income in the second quarter increased by $424,116 from the first quarter of 2015, that’s a 112% increase. These are meaningful increases driven by increased royalties generated from the automotive market and from the use of our glass in the USA Pavilion at the Milan World’s Fair. But I think that it’s also significant to note that revenues do not yet reflect sales from the high volume S-Class Sedan, the three different Textron aircraft models that were announced in May for the upcoming HondaJet. Operating and R&D expenses decreased by about $250,000 in the second quarter. In terms of liquidity and capital resources, our working capital at the end of June was $8.5 million. We have no debt outstanding. And the net cash used in operating activities was $3.3 million in fiscal year 2014. Cash used in operating activities is expected to decline or turn cash flow positive as revenues increased in the future. So, there will be no need that we can foresee for us to raise any additional capital. So what’s been driving all of these activities? Well, it’s been a very busy second quarter and we’ll discuss some of…

We will now begin the question-and-answer session. [Operator Instructions] At this time, we will pause momentarily to assemble our roster. Our first question comes from Michael Kay with Kay Associates. Please go ahead. Mr. Kay, your line is open. I’m sorry, Mr. Kay, your line is not open. The first question comes from Jeff Harvey, a private investor. Please go ahead.

Hi, Joe.

Hey, Jeff, how are you?

Good. Glad to see some good revenue coming in. A couple of things. First of all, I think, it’s time to actually put out a press release to the newswires rather than just file a 10-Q. I think it’s time to let to these newswires see what’s going on with the company. So I would encourage you to do that in the future.

Yes. Thanks, Jeff. And also in that respect, I’d like to announce to the call that we had retained the MZ Group as an investor relations firm. And they specialize in presenting emerging companies, especially, licensing companies like ours to the market. We asked around some of our larger institutional investors who they get their best ideas from and MZ Group's name came up consistently. So we’re very excited not only to do what you suggest, which is to start issuing press releases about revenues. But also to now bring the story to a wider audience of very sophisticated longer-term institutional investors.

Well, I’m glad to hear that, that’s good news. Secondly, can you give us any update or any insight as to the other automotive manufacturers such as BMW or Audi, who may obviously maybe looking in this technology?

We’re working, Jeff, with all of the major premium OEMs in the world. And some of them since the success of the S-Class is just beginning to become apparent to them, have come up with some interesting additional ways of using our technology. So in addition to what I consider the lower-hanging fruit, which is the roof glass because of the heat benefits, and the ability to have drivers be better connected with the outside world. We’re starting to see actually some real creative thinking among the premium automotive engineers out there. So, I think, if we have to project out a couple of years, of course, we’re going to see a number of different OEMs have SPD in the roofs. But I think you’ll see some interesting other applications as well.

Great. Thank you. You’re doing a great job. Thanks, Joe.

Thanks, Jeff.

[Operator Instructions] The next question comes from Michael Kay with Kay Associates. Please go ahead.

Hello, Joe, very nice increase in fee income. But the – since the – a good part of the increase was due to the architectural roof at the pavilion. So that that would be looked upon as a nonrecurring source of income, is that true?

Right, but almost as much came from other sources, so, we’re very excited about that. And as I mentioned when you consider that, we haven’t began yet to see the revenues from the V222 S-Class or the Textron aircraft. I think it’s a nice pleasant surprise for everyone. And it also is something that we’ve all been waiting for. We indicated that as we get closer to the introduction of those models, you’re going to expect to see a ramp up of revenues begin.

And is there any, I think that really in the long-run, the architectural market would be really the major source of fee income. Is there any indication that some major architectural and construction firms have decided to use SPD in some other major projects?

Well, one of the reasons that we were very excited about our participation with the USA Pavilion is it does get worldwide attention. I was just told this week that we’re on the shortlist that – for an architectural award because of the USA Pavilion. And, of course, there is no guarantee that will win. But I happen to think that we have the coolest stuff out there. But we also have seen a very noticeable uptake in architectural projects. They certainly are much larger and much more higher profile than what we use to see. And I attribute a lot of that to the fact that architects and designers and developers can experience SPD-SmartGlass some – first hand. I was – when I was there at the USA Pavilion to visit Michelle Obama, I had to come a day earlier because of the time she was arriving. And I attended one of the terrace talks that they had there, which was quite interesting. They had terrace talks about a variety of very important subjects and they were lot like TED Talks. And sitting next to me was a couple that was enjoying the SmartGlass that was above their head. And they didn’t know who I was, and I did not know who they were. But we started talking about the glass, and it turned out that they were principals of one of the major developers in the southern hemisphere. And since then we certainly have received specific projects from them. So you start to see the real benefit of what is like to be in a structure that has the SPD-SmartGlass, appreciate the heat control benefits, and the other benefits, and then figure out fairly quickly how you’re going to deploy it. So, it’s definitely been a very good high profile project for us to generating architectural interest. To add to your more specific question, it’s very hard to predict whether the automotive market will eventually be overtaken by the architectural market. The automotive market has pretty substantial volumes. And if we follow the path that other technologies that were introduced into the automotive market have followed, if you consider that the premium market represents about $250 million revenue opportunity for Research Frontiers. And that only represents 3% by volume roughly of the automotive market. Moving into the mid-level market, which we anticipate like other technologies we will do, can generate substantial revenue for Research Frontiers as well. So, I hope that all the markets become huge and try to overtake each other. But right now our focus and I think the world’s focus should be on the automotive market.

Has there been additional reductions in the price of SPD film, or is that stabilized, the SPD?

You’ve seen a steady decrease in the cost of the film and the end products they use it, and that’s something that’s fairly predictable among technology-based products. So it’s something that we all plan around and we’ve been achieving.

Okay. Thanks for your patience. And the last question is, has there been any progress made, since the last time we spoke, regarding getting an additional company to mass produce SPD maybe one located on in the United States?

That’s very much well underway, and part of our strategic plan, but not something that I comment about when competitors of theirs might be on the call, as well.

Thank you very much and regards to donut.

Thanks, Michael. Thank you.

The next question comes from Ronald Rosato with Capitol Securities Management. Please go ahead.

Hello, Joe. How are you?

Hey, Ron. How is it going?

It’s really nice to see the beginning ramp up of revenue, very nice.

It sure is.

Automotive is very exciting obviously, and that’s where most of the revenue would probably come from. But aircraft is starting to get me excited too. And you did mention that there was an OEM that was putting them in commercial, and you said they were a single-aisle and a double-aisle. Did you mention what OEM that was?

No, I didn’t, nor can I. What we said was that, we kind of broke down the universe of what’s happened in aircraft by contracts that have been announced, contracts that have been signed that are not announced, and then what we – which is eight different models have been contract signed for. But then, we also have a category of aircraft that are under advanced consideration. And these are things that are not just say, we have this cool technology, but things where you’re getting at the RFQ stage with the OEMs, and there they’re 17. And as I mentioned, that includes general aviation, helicopters, but I think, if you look at the overall market, while the general aviation and helicopter market can be significant for us. The transport category, the jetliners basically represent by far the largest market. And in that 17, there are some single-aisle and dual-aisle jetliners that are considering this.

Perfect.

I guess not to belabor the point, but if you look at up until May of this year, there were two aircrafts that had featured electrochromic, which is a competitive technology to ours, as they’re EDW they’re Electronically Dimmable Window. There is a 787 Dreamliner and there was the King Air 350i. And one of them, the 350i has now switched to the better performing, and based on our information less expensive technology. So I think that’s a very good sign for all aircrafts out there.

I agree, Joe. Thank you so much and good job.

Thanks, Ron.

Okay.

The next question comes from Doug Brown, a private investor. Please go ahead.

It was just asked and answered. Thank you.

Oh, good. Thanks, Doug.

This concludes our question-and-answer session. I’d like to turn the conference back over to Joseph Harary for any closing remarks.

Thanks, Gary, and thank you, everyone. Research Frontiers licensees now sell the most smart windows in the world. But with the introduction of SPD smart windows, as standard equipment on aircraft and the production of the Magic Sky Control, SPD SmartGlass roof, estimated to start this quarter on the new highest volume – highest unit volume version of the S-Class Sedan. Research Frontiers has clearly reached and moved beyond an important inflection point in our business. And while I’m not singing it, I can certainly quote Frank Sinatra, when I say that to summarize the best is yet to come. Together, Research Frontiers, our shareholders, and our licensees, and their customers have built a world where millions of people have already enjoyed the seemingly magical and certainly practical benefits of SPD-SmartGlass technology. And with more high volume cars, aircraft, and large architectural projects coming, these benefits will continue to be enjoyed and valued worldwide. Thank you for your support and your participation in today’s investor conference call. And I look forward to continuing to share good news with all of you. Thank you very much.

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.