Joe's reply:
Being able to forward commit to large quantities of PET-ITO can reduce the costs considerably. The issue that we and our licensees often face however is that even in full serial production, the licensee typically only gets 4-5 month production callouts from the OEM. So you need multiple models and multiple OEMs to be able to sufficiently predict needed PET-ITO quantities.
So, the million-dollar question is, does PET-TIO take care of a roadblock that existed in prior production and now no longer is an issue? Does this mean Gauzy has already committed to at least one large production contract?
I do not believe that the article was cobbled together, but rather the summary highlighted things that are new and relevant right now. No long history, but an up-to-date opinion. It was filed under "Unloved and Underfollowed" category. We make up the "unloved" category. I get it. No shade here.
Summary
- High-margin licensing model: REFR doesn’t manufacture, it’s a royalty model that delivers 90%+ margins, as a result, even modest sales growth will quickly flip the company to profitability.
- Automotive ramp: Multiple new vehicle programs are set to launch globally over the next 12–18 months, including the company’s largest revenue opportunity to date.
- Architectural retrofit breakthrough: A partner is rolling out a new low-cost, easy-install retrofit window solution, with the potential of tens of millions in first-year sales, more than enough to make REFR profitable on this segment alone.
- Falling manufacturing costs: Manufacturing partner, Gauzy is expanding SPD production capacity with improving order visibility, solving the long-standing cost bottleneck, opening the door to broader adoption across markets.
- Technology edge & IP moat: SPD is proven to reduce heat, UV, and energy use, and a new “Dark Particle” innovation unlocking fully black glass coming in 2026. Patents on the technology extend to 2037, protecting the runway for long-term growth
I get that people are jaded, but talking with pilot and how the SPD windows cut down the GPU fees ( I had to ask what GPU was -- Ground Power Unit, but came to understand that airport fees for this are very high and charged by the minute) and allows less battery depletion , etc, and more benefits. He's taking the flyers to one of the next meetings where pilots gather. And has promised me the "Samuel Alito" seat to Maui when he gets the new longer distant plane coming in 2028.
ND |
