Company Fact Sheet

Research Frontiers (NASDAQ: REFR) is the developer of SPD-Smart light-control technology which allows users to instantly, precisely and uniformly control the shading of glass or plastic, either manually or automatically. Research Frontiers has built an infrastructure of over 40 licensed companies that collectively are capable of serving the growing global demand for smart glass products in automobiles, homes, buildings, museums, aircraft and boats.

Investor Highlights

  • Cumulative investment of approximately $100 million in SPD-SmartGlass technology development ($64 million of NOLs)
  • 180 worldwide patents issued
  • Over 40 companies have already licensed SPD-SmartGlass technology, including a majority of the world’s automotive glass producers
  • Licensing royalties business model based on sales of SPD-SmartGlass end-products (10 - 15% royalty fee range)
  • Daimler adopted SPD technology in the Mercedes-Benz SLK in 2011, SL in 2012, S-Class Coupe in 2014, S-Class Maybach and S550 sedan in 2015
  • SPD-Smart windows are standard equipment on 7 aircraft models with the first aircraft scheduled for Q3-2015 delivery
  • Business model is highly scalable minimizing capital expenditures and operating expenses as SPD-SmartGlass business expands
  • Working Capital of $8.8 M with no debt outstanding

SPD-SmartGlass Technology

Offers a unique combination of performance benefits not found in any other smart glass technology, including:

  • Fast transition speed (2 seconds) between widest range of light and dark tinted states. Speed is not size-dependent!
  • 50-60 times darker to about twice as clear as ordinary sunroof
  • 20-70 times darker than conventional tinted glass to about five times as clear
  • Tinted state rejects up to 95% of heat and 99+% of UV light while not consuming any power
  • Mercedes tests show 10ºC (18ºF) reduction in cabin temperature
  • Reduces CO2 emissions and improves gas mileage/driving range
  • Infinite tunability between light and dark tinted states
NASDAQ REFR
Current Price $1.15
Market Cap $28.37 M
Shares Outstanding 24,043,846.00

Research Frontiers (NASDAQ: REFR) is the developer of SPD-Smart light-control technology which allows users to instantly, precisely and uniformly control the shading of glass or plastic, either manually or automatically. Research Frontiers has built an infrastructure of over 40 licensed companies that collectively are capable of serving the growing global demand for smart glass products in automobiles, homes, buildings, museums, aircraft and boats.

Investor Highlights

  • Cumulative investment of approximately $100 million in SPD-SmartGlass technology development ($64 million of NOLs)
  • 180 worldwide patents issued
  • Over 40 companies have already licensed SPD-SmartGlass technology, including a majority of the world’s automotive glass producers
  • Licensing royalties business model based on sales of SPD-SmartGlass end-products (10 - 15% royalty fee range)
  • Daimler adopted SPD technology in the Mercedes-Benz SLK in 2011, SL in 2012, S-Class Coupe in 2014, S-Class Maybach and S550 sedan in 2015
  • SPD-Smart windows are standard equipment on 7 aircraft models with the first aircraft scheduled for Q3-2015 delivery
  • Business model is highly scalable minimizing capital expenditures and operating expenses as SPD-SmartGlass business expands
  • Working Capital of $8.8 M with no debt outstanding

SPD-SmartGlass Technology

Offers a unique combination of performance benefits not found in any other smart glass technology, including:

  • Fast transition speed (2 seconds) between widest range of light and dark tinted states. Speed is not size-dependent!
  • 50-60 times darker to about twice as clear as ordinary sunroof
  • 20-70 times darker than conventional tinted glass to about five times as clear
  • Tinted state rejects up to 95% of heat and 99+% of UV light while not consuming any power
  • Mercedes tests show 10ºC (18ºF) reduction in cabin temperature
  • Reduces CO2 emissions and improves gas mileage/driving range
  • Infinite tunability between light and dark tinted states

Company Fact Sheet

Core Vertical Market Overview

Automotive Sunroofs
  • IHS Automotive Forecasting 88.6 million units in the Global Light Vehicle Market in 2015
  • Approximately 3% of this total (2 million units) were luxury vehicles with a US$ MSRP = $50K*
  • Approximately 1.6 million of these luxury vehicles have sunroofs that generate glare and heat control issues*
The luxury vehicle sunroof market represents a $200 million annual revenue opportunity at current royalty rates

*Based on 2013 numbers


Aircraft Windows
  • 35,000 new transportation and business jets are forecast to be produced over the next 20 years
  • These jets will create annualized demand for 157K aircraft windows, each requiring a shading product




The aircraft market is a $24MM annual revenue opportunity at an estimated royalty of $75-150 per window
Other Products Architectural, Marine and Specialty Display Glass
  • Manual or automatic controls allow users to instantly and precisely control the amount of light, glare and heat passing through windows, skylights, partitions and doors in yachts, residential and commercial buildings
  • Museums and private collectors worldwide have thousands of manuscripts, textiles, paintings and collectibles that are kept in storage and vaults to protect them from light damage that can now be displayed

Automotive Products

Mercedes Vehicle Introduced
SLK-Class (R172) 2011
SL-Class (R231) 2012
S-CLASS COUPE (C217) November 2014
Maybach S600
(X222 XLWB)
April 2015
S-Class Sedan (V222 LWB) Production scheduled
Q3-2015

Research Frontiers receives a $100-150 royalty per sunroof on Daimler's Mercedes-Benz SLKs and SLs
"Open-air feeling of a roadster even when the weather does not permit one to open the roof."

Growth Strategy: Lowering the cost of SPD-SmartGlass products will increase adoption of technology in the premium automotive sector and open up large opportunities for non-premium vehicles. Increased volume from the S-Class and other models will reduce the production costs of SPD-SmartGlass products.

Aircraft Products

Aircraft Entry into Service Annual Production
HondaJet Q1 2016 ~80 - 100
Dassault Falcon 5X 2017
Textron-Beechcraft King Air 250 Q3 2015 ~35
Textron-Beechcraft King Air 350i Q4 2015 ~70
Textron-Beechcraft King Air C90GTx Q1 2016 ~25

Aftermarket:
  • SPD EDWs can be retrofitted because there is no change needed to structural outer window
  • Aftermarket can be many times larger than OEM market
  • Upgrades can occur during maintenance and when aircraft ownership changes

Other Products

Marine Products
  • Existing Business with Cheoy Lee and Hatteras
Display Panels
  • Cumulative light exposure was reduced by 86% during a high traffic period at the exhibition opening, and by more than 95% during subsequent lower traffic periods
Architectural Products
  • By helping save energy on heating, cooling and lighting, smart windows can have a beneficial impact on 55.8% of the total energy footprint used by commercial and residential buildings

Management Team

Robert Saxe, Chairman & Chief Technology Officer - Bob Saxe is the founder of Research Frontiers and has been Chairman of its Board of Directors since its inception in 1965, and its Treasurer from 1966 to 2005. He graduated from Harvard College in 1956 with an A.B. degree in General Studies (with a major in physics). Mr. Saxe also received an M.B.A. degree from Harvard Business School in 1960. He began his business career doing market research in the glass industry with Corning, Inc. and then worked as a security analyst on Wall Street for Kuhn Loeb & Co. Mr. Saxe founded Research Frontiers in October 1965. He has worked with light-control technology for over 40 years, and is the inventor on many patents and patent applications in the United States and internationally involving light-control technology.

Joseph Harary, President & CEO - Joe Harary joined Research Frontiers Incorporated as its Vice President and General Counsel in 1992 and has been a director of the Company since 1993. After various promotions, he became President and Chief Operating Officer in 2002, and CEO starting in January 2009. Mr. Harary has actively managed and directed all aspects of the Company's business including licensing, raising private and public equity capital, marketing, and government relations. Prior to joining Research Frontiers, Mr. Harary's corporate law practice emphasized technology, licensing, mergers and acquisitions, securities law, and intellectual property law at three prestigious New York City law firms. Mr. Harary graduated Summa Cum Laude from Columbia College with an A.B. degree in economics, and received a Juris Doctor degree from Columbia Law School where he was a Harlan Fiske Stone Scholar as well as an editor of the Columbia Law Review. Prior to attending law school, Mr. Harary worked as an economist with the Federal Reserve Bank of New York. Joe Harary is frequently asked to share his business experience with other companies directly, and as a speaker and published author in the fields of intellectual property, corporate law, and smart glass. Mr. Harary has also served as a guest lecturer at Fordham University's Accelerated MBA Program, and serves on the boards of various charities including the Imagine Academy which helps children with autism and their families.

Seth Van Voorhees, Ph.D., CFO & Vice President of Business Development - Seth Van Voorhees became Research Frontiers' CFO and Vice President - Business Development in January of 2011. Prior to joining Research Frontiers, Mr. Van Voorhees previously was CFO of American Pacific, a publicly-traded specialty chemical manufacturer, and has held investment banking positions at Merrill Lynch, Wasserstein Perella and UBS Warburg. Earlier in his career, he worked at Battelle, Pacific Northwest Laboratories where he focused on advanced battery technology for the US Department of Energy. Mr. Van Voorhees' academic credentials include a doctorate in chemistry from the University of Pennsylvania, a MBA from Columbia University and a BS from SUNY at Stony Brook.

DISCLAIMER. This information is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy any security or related financial instrument. The summary may include "forward-looking statements" with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee accuracy. This document has been furnished to you solely for your information. The information contained herein may not be reproduced, disclosed or redistributed, in whole or in part, by mail, facsimile, electronic or computer transmission or by any other means to any other person, except with prior written consent of the Company. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.


Company Contacts

Joseph M. Harary
President and CEO
Harary@SmartGlass.com

Seth Van Voorhees
VP & CFO
Seth@SmartGlass.com

Michael R. LaPointe
VP - Aerospace Products
LaPointe@SmartGlass.com

Steven Dweck
Chief Marketing Officer
Dweck@SmartGlass.com

Investor Relations Contact

Ted Haberfield
President – MZ North America
Direct: 760-755-2716
thaberfield@mzgroup.us
www.mzgroup.us

Research Frontiers Inc.

240 Crossways Park Drive
Woodbury, NY 11797
516-364-1902
www.SmartGlass-IR.com