Good afternoon, ladies and gentlemen. Welcome to Research Frontiers' Investor Conference Call to discuss the first quarter of 2020 results and recent development. [Operator Instructions] This conference is being recorded today. A replay of this call will be available starting later today 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 entering many of the questions that were e-mailed to it prior to this conference call, either in the 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 the call or will do so afterwards. In order to answer more questions of general interest to shareholders on this call. [Operator Instructions] Also, we ask that you keep your questions brief in the interest of time.I'll now turn the call over to Joe Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

Thank you, Erica, and good afternoon, everyone, and thanks for being here. Joining me today is Seth Van Voorhees, our CFO.In our last investor conference call, we discussed our results of operations and developments for the last fiscal year. We will leave that conference call available for a while on our website, so you can refer to it. You will see that last year, we had many accomplishments that position Research Frontiers for strong growth. Based upon the questions we received from investors prior to this call, the main 2 areas that I will be discussing today is: one, any expected impact of the COVID-19 pandemic on our business; and two, Hyundai's recent investment in the SPD-SmartGlass industry.COVID-19 has affected everyone. From an economic standpoint, Research Frontiers will be fine, but it did take a very personal toll. 3 weeks ago, today, my wife lost her father quite unexpectedly to COVID-19. My report to you is dedicated to him today. My dear father-in-law was in good health and actively working. I will miss him and his love and wise counsel, and I urge everyone to please be careful and stay healthy and safe. Your health and safety is of utmost importance.As a company, we have taken steps to protect the health and well-being of our employees, our licensees and their customers. We are all restricting travel, practicing social distancing and working remotely whenever possible. We have also taken steps to protect our business. We have always run our company very conservatively from a fiscal standpoint. We have been debt-free since we went public in 1986. We have raised money prior to needing it, so that we would have the resources available to us when needed. The wisdom of this approach started by our founder, Bob Saxe, has become particularly evident…

[Operator Instructions] Our first question comes from Art Brady [ph].

Joe, I'm just wondering, can you elucidate a little bit more what's happening in Brazil?

Well, I had the pleasure of visiting SER. They have a very aggressive operation, and they're one of the two market leaders, AGP, our other licensee being the other one. They've a really good business in terms of aftermarket. They work with the blindado doors, which are the companies that will take a car in the aftermarket and update it with armored steel. In this case, a catalog type material that's actually lighter, it's stronger than Kevlar for the door panels and other nontransparent areas and in the transparent area, using SPD. And it adds some real benefits because, first of all, it's an aftermarket product in general.So, they have an infrastructure in place in Brazil to have many shops actually do these kind of upgrades, which is very good for our business because I think it's -- because of the security situation over there, a more developed market. It's about 3x larger. It's about 1,500 cars per month in Brazil in the armored glass market compared to about 500 cars per month in Mexico, which is the second-largest market. And as I alluded to earlier, you'll probably see some extremely high-profile and highly visible uses of our technology in the not-too-distant future, even here in the United States?

Joe, can you also comment on Isoclima? We haven't heard about their participation in quite a while.

Art, they are very active. They're working on many different industries, but primarily automotive and aircraft, and they're working with major players in those areas. So they are a good company that has done a great job. And when it comes to understanding glass and glass structure, they're probably the best in the world. So we're really honored to have people like Dr. McCulley, who probably knows more about Gorilla Glass and Corning even though. I hope [indiscernible].

Any new products that they are actually putting into production at this point?

Sure. Like I mentioned, the aircraft and automotive primarily, including some from Mercedes.

Our next question comes from Thomas McCarthy [ph].

You mentioned that Hitachi can, in 1 shift, make 400, did you say square feet or square meters?

No, it's 400,000 square meters per year per shift. So that's their annual production per shift.

400,000 square meters annually?

Annually. So that's about 1.3 million. I'm sorry, we did 3 shifts?

Yes. 1.2. Right. Okay. And Gauzy?

500 meters -- square feet, sorry. I -- sometimes I switch between the two. And you are saying Gauzy?

No, let's go back to Hitachi. I want to make sure I understand. They can produce in 1 shift, 400,000 square feet annually.

No, meters. 400,000 square meters per year per shift.

Okay. And what did you just say about feet?

That's about each 400,000 square meters is about 1.3 million square feet per shift.

Well, I was thinking you were multiplying it by 3 shifts. I'm sorry.

No.

Okay. Now in terms of Gauzy, you said 1 million. And is that 400,000 square meters per year?

Square meters per year, right.

And that's just one shift.

It's the blend of what they expect their production requirements to be. I'm not allowed to go into more detail than that.

All right, fine. Now question is all this film that's being produced, are there ready customers for it or is it being stockpiled?

Nobody in the industry, including Hitachi, stockpiles to film. When they make it, it's usually for a customer order, they'll have some in inventory, but not much. That's just a kind of deal with inventory management and there's a need for workshop.

Okay. Got you. So the figures you gave me are production capacity. Are...

Not production.

Sorry?

No. Yes. It's not production itself. It's production capacity.

Okay. Are you able to say anything about what the production figures are?

No, they won't let me.

Okay. Are they working? Are they...

Oh yes, both Gauzy and Hitachi are working,

And they're running a shift each?

They're running film, yes.

Our next question comes from Allen Ginsberg [ph].

I have two things. In January, there was a lot of excitement at Consumer Electronics Show when a Chinese smartphone manufacturer used in a smartphone with McLaren, what seemed like it might be SPD, but there was no press release, whether it was SPD or something else. I wanted you to comment on that, if you will, and then I have one more.

Sure. So that was concept one. That was a concept phone. It wasn't a production phone, although, they do hope it will go into production. And like many manufacturers, they don't like to tell what's technology they're using in their products because it kicks off their competitors. We have actually seen, though, in other markets, too, especially with things like cellphones and other Amazon devices being able to be hacked so that you could take control of the camera on your laptop or your phone or something like that, and increased interest in the privacy covers for the phone video. And also the laptop and...

But is this -- can you comment on whether this is SPD that they were using in this phone or not?

Not unless they do it. Not unless they commented.

All right. Because the way it was described, it seemed like it had to be SPD, but we'll have to wait on that, I guess. The other thing is you had said that you had hired a public relations firm, but I don't know the name of that firm, and there's been very few press releases for a long time. Could you comment on that?

Well, first of all, Alan, we released press releases when there's information. A few weeks ago, we released a press release about Hyundai, so I can't imagine it yes. And I believe you've actually spoken to the Investor Relations person because he's [indiscernible].

But occasionally, I've tried to call him and I haven't been able to get through, his mailbox is full. So you might want to check in to that, all right?

Okay. Yes, I will.

[Operator Instructions] Our next question comes from Basilo [ph].

Joe, condolences for your father-in-law, sorry to hear that.

Thank you.

I just wanted to see if you could give us some color about pricing, especially for the architectural market. It's a very competitive place. So anything you could share that would be appreciated.

I usually get in trouble when I share publicly pricing information. We had one case a couple of years ago where a reporter had quoted an estimate I had given on the per square foot price for SPD-SmartGlass and the licensee called me out saying, I was just quoting a 50% more than that to a customer, and now I have to do some explaining. So I should be very careful. But let me maybe back into the question. We have done an analysis of the architectural market, which is, to a large extent, a very competitive market, you're correct. And we've actually spoken to some of the largest building facade manufacturers in the world. And they are probably the experts on what they need to charge for a window and a window shading system.And based on the numbers that Gauzy gave them and I was in that meeting in Europe, we can meet the current price that they need the window and the shade to be because remember, you don't need both now and you don't need the ancillary motors and rollers and things like that with SPD-Smart glass. So our system could actually be cost competitive and high-volume to an ordinary window with an ordinary window shape based on the projected pricing that Gauzy gave them.

Our next question comes from Ted Eddies [ph].

As the production or the demand starts increasing, are there any other production facilities in the works to produce more sale?

Yes. Gauzy has talked about a third production facility. So they have one for PDLC in Israel in Tel Aviv. They have an SPD only 1 in Sigurd, and they're talking about a third one. And I'm not sure I could tell you where it's going to be, but it will be either in North America or in Asia, most likely.

[Operator Instructions] Our next question comes from Alan Denver [ph].

I had tough times this -- earlier this year also.

I'm sorry to hear that.

COVID problems, yes. Long Island hasn't been any good either, I know. So my question is the very simple one. Has anyone come to the company or to you and asked about being acquired that they could acquire Research Frontiers?

No.

At this time, we have no further phone questions.

Okay. In that case, if we haven't fully answered any questions that were e-mailed to us or in the presentation today or the live Q&A, feel free to email us. And I'd like to now make some closing remarks.Last year was spent building and strengthening Research Frontiers. We needed to have multiple producers of SPD film. This has been done. We needed to have wider SPD films so that we can pursue the architectural glass market. This, too, has been done. We need to have SPD technology available at lower cost to the customer. This has been done. We needed a stronger balance sheet. This too has been on. We wanted to reduce internal expenses, this has been done, not only last year, but in each of the past five years, and we expect cost reductions to continue in the coming year. We needed greater awareness in the various industries as to what SPD-Smart technology could do for customers. We expanded our public relations effort and spoke at various industry conferences. Let's never decide about why customers use our SPD-SmartGlass technology.In automotive, we may cause more 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. In architectural applications, we make buildings more comfortable, energy-efficient and functional. We preserve nice views. We have seen from the hospital market that curtains and chains can collect allergens, dust and germs. With the growing movement as a result of recent events, including the coronavirus, another aspect of our technology, the ability for SmartGlass to be more easily clean than shades or blinds can be important. This worldwide promotion of the benefits of SPD has been quite effective.Customers…

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