Good afternoon, ladies and gentlemen. Welcome to the Research Frontiers’ Investor Conference Call to Discuss the Fourth Quarter and Full Year 2019 Results 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 later today in the Investors section of Research Frontiers' Web site 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, forecasts 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. In some cases, the company has responded directly to e-mail questions prior to this call, or will do so afterwards, in order to answer more questions of general interest to shareholders on this call. If you find that your question has been substantially answered, as a courtesy and to allow others time, other shareholders to ask their questions, please remove yourself from the queue by pressing pound one. Also, we ask that you keep your questions brief in the interest of time.I would now like to turn the conference over to Joe Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

Thank you, Ross. And good afternoon, everyone, and thanks for being here. Joining me today is Seth Van Voorhees, our CFO. First, I want to note the passing in January of a very dear friend and our Chief Technology Officer, Steve Slovak. I greatly admired Steve's work. He was an inventor on many of our patents and also worked closely to train our licensees and get them over the finish line. All of us at Research Frontiers miss Steve very much, and my report to you today is dedicated to him.With our licensees Research Frontiers does operations on every continent in the world other than Antarctica. Because of this, all of us think about our business virtually 24x7. But there are two special times each year when I take a moment to reflect back on what we have accomplished and what we need to be doing to succeed. One such time is our annual stockholders meeting in June. The other is on our year-end conference call for investors, this one today.So let me take some time this afternoon to reflect upon and discuss with all of you the past year and the year to come. We judge our performance in three main areas, financial stability, operational efficiency and business growth. The first two areas, financial stability and operational efficiency, not only give us the resources to accomplish our targets but they're especially important during volatile business and market period, such as this one.We achieved positive results in all three areas this year. It is pretty straightforward to summarize the activities in this area. Let's start with the key initiatives that we outlined in prior conference calls. The main one to highlight is business growth. Extending our business and where SPD technology is being used is very important. Our largest market…

[Operator Instructions] First question comes from Alan Ginsberg.

My condolences to Steve Slovak's family. And the question has to do with that. How are you going to replace him? He seemed to be a key member of your research team.

Steve was a good friend and certainly a key member of our Research Frontiers team. I can't say I've met a better problem-solver or talented scientist with the exception perhaps of Bob Sacks. They both were tremendous scientists that really brought Research Frontiers from the lab to the real world. We have a different skill set that we need now. Now that the technology is in the marketplace and a lot of the things that we work on as technical support for our licensees in areas like lamination, and durability, and testing and other areas like that, we would probably need someone with a different skill set than Steve. But that's not to minimize the tremendous, tremendous work that he's done for us. And he's, as I mentioned earlier, the inventor and in many cases the lead inventor on a lot of our key patents.

So are you looking for other people to replace him or do you have enough staff now?

Well, we have enough staff but we're looking to expand the services that we can provide our licensees to make sure that they have no issues. So part of my recent tour of Europe especially was to solicit comments from our key licensees as to what type of R&D and tech support they would need.

Our next question comes from Mike [Forester]. Please go ahead, Mike.

You mentioned or commented about [Genentech]. Didn't they get a contract from Boeing in regard to windows or continuing to provide windows to the Boeing airplanes?

No, they do the 787 and they've an option on 777.

Well, in that regard, can you -- and I understood also that they had a very reduced transition speed from dark to light. Can you comment on that and how Research Frontiers was unsuccessful in persuading Boeing to go with SPD product?

Yes, I could touch on that briefly. A lot of this work was actually very detailed and focused work done by our licensees. But when you say substantially reduced switching speed, it's still over a minute to switch. I just was on one of the Dreamliner that had that technology coming back from Europe, and it's still slow and it's still dis-uniform and you'd get the, what we call the donut hole effect. The only thing I could say is that unless Gentex highly subsidize the window as an incentive, the only thing I could tell you is that there was negative inertia in switching, because apparently when Boeing had certified with the FAA, the original electrochromic windows for the Dreamliner, they went through a tremendously difficult process. We haven't had the same difficulties. But I think they were a little gun shy on trying to go through anything again with that technology. So there was a little bit of inertia in that case.

And in regard to, you’re coming about the cost and I think it was $1.7 billion of one-time cost. Do you anticipate any I guess new funding or non-cash expenses occurring in the next couple of years?

Mike, those were mostly non-cash costs. So it didn't really affect our requirement for funding. And a lot of them had to deal with some fairly esoteric accounting treatment on how a prior stock offering was handled and structured. And quite frankly, I think it was news to everyone, including our audit team that the accounting treatment would be that way. But it doesn't matter because we closed it out, so we don't have to worry about market fluctuations causing non-cash charges as a result of that.

So you're not answering any...

And then the other component, which may or may not repeat, is going to be dependent on the amount of stock options granted in the future, because that's also a non-cash charge. But if I remember correctly, a large chunk of that was based on a very esoteric accounting treatment for a stock offering we did.

All right, thank you.

You're welcome. And just to reiterate, it didn't really have any cash impact on us at all.

Our next question comes from Leonard [Litz]. Please go ahead, Leonard.

A couple of questions. Is there any way you can quantify the volume of business that'll come in this year from these different sources. It sounds fairly substantial and would it come increasing quarter-to-quarter, or how do you see that?

The answer is no, I can't quantify it without knowing exactly the production call outs and the take rates for the glass. I will say some recent conversations I have with the OEMs, have said that they targeted certain take rates and they're getting multiples of that and they want to even get more vehicles with this, because the customers are loving the technology. So anecdotally, I expect that in many cases we're going to continue to buck the trend of a smaller number of vehicles being produced every year by, for each car model with increased adoption and expansion to other models. And that's about the most I could say about that without going into some details that our OEM customers want me to say.

And you already said architectural is already part of this year's…

Yes, that one of your questions that I wanted to answer in the presentation, because a lot of people have been wondering about architectural and it was nice to see that up.

In the past, you had a poison pill out there for the stockholders so that somebody couldn't come in and make an offer and it take you away from us. Is that still active?

Yes, the poison pill is still operative. Just to clarify, I know that you're a market professional, so you're probably more used to poison pills. But it would never prevent an offer for fair value from being consummated. What a poison pill typically is meant to, is designed to do is, to make sure that the offers we receive from outside parties are fair. And our Board of Directors under Delaware law has a fiduciary obligation to redeem the poison pill once we're offered what's considered fair value.

But that wouldn't be one of the things you would encourage, I assume?

Not at our current market valuation. But at 10 or 20 times our market valuation, we have a horse race starting at least.

Our next question comes from Todd Brady.

I'm wondering if you could comment on Saint-Gobain and their right tuning technology, which is premised on SPD.

I can't comment more specifically that I'm happy to see that companies like Saint-Gobain and others are active licensees. And a lot of that is driven by the automotive and train customers.

Another question I have is AGP. Has any revenue started to flow from the factory, the new factory that was established?

The answer is I can't disclose any particular licensee’s financials. And in the case of AGP, some of the projects that they're currently working on in the automotive market, they view as highly secretive. So I have to be especially careful in their case, because there's some fairly large things that they're working on that we would like to make sure cross the finish line.

The real question there is, has any revenue started flowing from them yet?

We have royalty income from them, yes.

Our next question comes from Michael Kay. Please go ahead Michael.

I was very surprised that I just learned today, I guess with other shareholders that -- it said VariGuard operation was suspended. What went into the decision to do so? And shouldn't shareholders have been told that development had occurred? It was launched with a great deal of fanfare. So I was...

We actually announced this Michael a year-ago and there was a press release about it. You might've missed it, but that was something that was disclosed. And the thinking behind it is that as a division, it has cost and it has revenues and as a licensee, what it generates is basically going more towards the bottom line. So we felt it was in shareholders’ best interest to spin that off as a licensee.

So it's like a separate entity and just -- and the company would be generating income, royalty income…

It's just like any other licensee now, just like AGC or AGP.

Okay, thank you.

Thanks. Which is why also you saw that revenue from the display market was down in 2019 versus 2018, because all of that went basically into the licensee bucket as opposed to a direct business unit.

Our next question comes from Jared Albert. Please go ahead Jared.

Can you expect to choose cash flow positive and one of the quarters in 2020?

I'm not going to predict financial results until they happen, I apologize. But we came down close in the third quarter of 2019. We were a penny a share loss, so it's certainly possible.

I don't think you can answer it, but do you expect to teach you through to use SPD, you expect they will continue that program?

As I mention, I'm not going to discuss any car models that haven't been officially announced by the OEMs. We've been asked specifically not to do that.

Our next question comes from John Nelson. Please go ahead John.

Could you discuss in brief, whether any key patents expire anytime soon, and whether any significant enhancements to the patent portfolio have been achieved recently?

We have some fairly important inventions that have come up into our company in the last two years. And apart from that, if we just look at what patents have been filed already, the key patents don't start expiring until 2032 I think, or 2033.

And at this time, there are no further questions. I would like to turn the call back to Joe for closing remarks.

Okay, thanks a lot. In past conference calls, I outlined our initiatives for Research Frontiers. These all center around our growth strategy. We began to see the results of this in 2019, and we're working hard in 2020 to also achieve our growth and profitability targets. First, reducing the cost of our SPD-SmartGlass technology to the customer. Simply put, lower cost of our technology opens up wider market penetration. It also allows our technology to be used in new markets. For example, Panasonic and others have shown what the next generation televisions will look like, as well as display advertising, and we're very much part of that.SPD film sales are one of the best near-term leading indicators of future revenues for us, since this film gets put into products in subsequent quarters that generate royalty income for us. In terms of the amount of SPD films sold, 2019 was a record year since inception 12 years ago of commercial SPD film production.We expect the main part of our business growth to come from core businesses, primarily automotive and architectural. As noted earlier, fee income from automotive and architectural markets were up over 40% this year compared to last year. We spoke about the drivers in these two markets before. In automotive, we make cars more efficient, energy efficient, reduce CO2 emissions by 4 grams per kilometer and increase the driving range of electric vehicles by up to 5.5%.We also make people more comfortable and safer and protect the interiors of cars. The auto industry is certainly hearing our message. In architectural applications, we make buildings more comfortable, energy efficient and functional, and more pleasant to work in or live in. We saw expansion and growth in the architecture market in 2019 and we're looking forward to continued growth in 2020.…

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