Research Frontiers (REFR) investor relations material

Executive summary

• First quarter 2026 results were impacted by timing of revenue recognition and the absence of prior year upfront license revenue, leading to a year-over-year revenue decline.

• Sequential royalty growth from automotive and aircraft markets was noted from Q4 2025 to Q1 2026.

• Strategic initiatives and SPD-Smart product developments advanced in automotive, aircraft, and architectural retrofit markets.

• Operational and liquidity challenges at key licensee Gauzy, due to French rehabilitation proceedings, temporarily affected payments and financial strength.

• Despite disruptions, SPD production, development, and customer engagement continued across automotive, aerospace, and architectural markets.

Financial highlights

• Cash and cash equivalents rose to $1,279,301 as of March 31, 2026, up from $664,299 at year-end 2025.

• Fee income for Q1 2026 was $136,319, down from $559,776 in Q1 2025.

• Net loss widened to $525,365 from $177,687 year-over-year.

• The company remains debt-free.

• Operating and R&D expenses declined year-over-year.

Outlook and guidance

• Optimism expressed for approval of Gauzy's continuation plan, which would strengthen both Gauzy and the SPD ecosystem.

• Long-term opportunities for SPD technology seen as significant, with a more diversified and mature platform than ever before.

• Management highlighted ongoing progress in automotive, aircraft, and architectural SPD-Smart initiatives, with continued R&D and product development expected.

• Focus remains on supporting licensees, advancing next-gen SPD, and positioning for sustained growth.