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, advanced.

• Entered a new license agreement with KLIM (Polaris division) for SPD applications in motorcycle visors and sports goggles, signaling continued technology validation.

• Supported ongoing development of Black SPD technology and advanced retrofit products for the architectural market.

• Won two major new aircraft programs and continued support for automotive and aircraft OEMs.

• Company operates as a single segment, with global licensees in North America, Europe, and Asia.

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.

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

• Lower royalties this quarter due to reduced SPD film production and supply chain constraints.

• Conservative accounting for receivables from Gauzy and Vision Systems due to court-supervised proceedings, though management expects full collection.

Outlook and guidance

• Expectation that Gauzy will soon complete restructuring and resume full-scale SPD film production, restoring supply and supporting pent-up demand.

• Multiple contingency plans (A–D) in place for SPD film supply, including potential new manufacturers or direct asset acquisition if needed.

• Anticipate rapid restart of projects and increased volumes as production normalizes, with new and existing customer demand ready to be fulfilled.

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