From JH:
My comment:””””
Thank you for the clear explanation.
30 years in refr, and it never occurred to me that there were grades and therefore cost differences with Ito coatings. I’ve kept thinking that pdlc’s Ito use cost the same as spd and waiting for some spd cost reduction to meet demand. But the spd cost is not the issue. Maybe the black adds enough value but truly, the problem seems intractable
.“””
Joe’s reply in full”””
Not at all an intractable problem. As a matter of fact, it's pretty straightforward: each new car model or tick up in take rates smooths out the choppiness of only having 4 to 6 months of production call outs. And once architectural comes online in fuller force, that also contributes to being able to commit in higher volumes of components such as ITO-PET.
To use a baseball analogy: one can swing for the fences and try to hit a grand slam (eg View, Halio. etc.), play in the pee wee leagues and still strike out consistently (eg CRKN), or you could win ball games by hitting singles, doubles, and triples consistently to score runs and keep getting up to bat for more (REFR).
The investments in developing the technology, bringing it to market, showing its reliability, and being known as the highest performing Smart Glass technology, has been made. The investments in the factories and sales and distribution networks have also been made.
So now what's left is a steady progress towards reducing variable costs. Every car model, every architectural project, and to a smaller extent every aircraft or boat, helps in this regard.
Joe
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Joseph M. Harary, President and CEO
Research Frontiers Incorporated
240 Crossways Park Drive
Woodbury, New York 11797-2033
Tel: 516-364-1902 ext. 220 or 888-SPD-REFR ext.220
Fax: 516-364-3798
Email: Harary@SmartGlass.com
Internet: smartglass.com
"Can Your Glass Do This?"
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