Research Frontiers (REFR) investor relations material

Executive summary

• Navigated major supply chain disruption due to Gauzy's financial restructuring, causing production slowdowns and delays in SPD film supply, but customer and licensee commitment remained strong and new licensees and applications, including black SPD technology, were added.

• Supported ongoing automotive and aircraft OEM programs, winning two new major aircraft projects, and continued development of advanced retrofit products for the architectural market.

• Company operates as a single segment focused on SPD technology licensing and development, with global licensees and primary revenue from automotive and architectural markets.

• Revenue is highly concentrated among a few licensees, with significant exposure to Gauzy and Vision Systems.

• Management expects supplier production issues to be resolved soon and remains confident in long-term growth opportunities across automotive, aerospace, architectural, and consumer markets.

Financial highlights

• Revenue for Q2 2026 was $86,346, down from $129,904 in Q2 2025; six-month revenue was $222,665, down from $689,680 year-over-year.

• Net loss for Q2 2026 was $660,168 ($0.02/share), improved from $803,826 ($0.02/share) in Q2 2025; six-month net loss was $1,185,533 ($0.03/share), compared to $981,513 ($0.03/share) in 2025.

• Operating expenses for Q2 2026 decreased to $627,216 from $775,922 in Q2 2025; six-month operating expenses fell to $1,148,598 from $1,412,398.

• Cash and cash equivalents as of June 30, 2026 were $1,087,956, up from $664,299 at December 31, 2025.

• Shareholders' equity increased to $1,123,093 as of June 30, 2026 from $933,626 at December 31, 2025.

Outlook and guidance

• Expectation that Gauzy will soon emerge from restructuring, restoring and expanding SPD film production, with multiple contingency plans in place for SPD film supply, including potential new manufacturers or direct asset acquisition if needed.

• Anticipate pent-up demand to drive increased volumes and new project launches as production resumes.

• Expects revenue growth as new car models and other SPD-SmartGlass products are introduced, with continued production efficiencies and market expansion.

• Company does not expect to need additional capital in the next 12 months but acknowledges uncertainty if operational cash flow targets are not met.

• Remain confident in long-term growth opportunities across automotive, aerospace, architectural, and consumer markets.