research frontiers incorporated (refr)
KANNUALREPORT submitted under Section 13 or 15 (d)
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9399 Research Frontier (
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Total market value of voting and non-voting
Voting Ordinary Shares held by non-shareholders
Affiliates of registrants as of June 30, 2016 (
The last working day of the second fiscal season recently completed by the registrant)
Based on the transaction price of $3.
$65 is $63,953,333.
When doing this calculation, it is known that all direct and indirect shares owned by company directors and executives are known, and all direct and indirect shares known to be owned by other persons holding 5% of the Company\'s common stock are deemed to be held by the company\'s \"affiliates, the award for the restricted stock granted is considered to have been issued in full and pending.
This agreement shall not prejudice the right of the company or any such person to deny that any such director, executive officer or shareholder is a \"affiliated company.
2017, the registrant has 24,043,846 outstanding ordinary shares. PARTIITEM1.
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Forward-looking statements are not statements of historical facts, but reflect our expectations of future events and results.
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These risks, uncertainties and factors include, but are not limited to, those factors presented in this Annual Report on form 10
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-Risk factors \".
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Whether it\'s a result of new information, future events, or other reasons, look at the report.
Please be advised not to rely too much on this progress
When evaluating the information provided in the Annual Report on Form 10, view the reportK.
General: as described in this article, \"we\", \"Company\" or \"research frontier\" means the research frontier that is incorporated unless otherwise stated.
Research Frontier operates in a single business unit engaged in technology and equipment development and marketing to control the flow of light (see Note 1).
We develop and license our patented floating particle device (“SPD-Smart”)light-
Control technology to other companies that manufacture and/or sell the following products :(i)SPD-
Intelligent chemical emulsion ,(ii)light-
Control film made of chemical emulsion ,(iii)the light-
Control panel made of laminated film ,(iv)
From electronics to power terminals
A product that contains a movie, or (v)
Laminate service and end-
Products such as \"smart\" windows, skylights and skylights themselves.
There are currently more than 40 companies at the research frontier, and in general, these companies are authorized to serve mainly the four social democratic parties.
Field of intelligent applications (
Aerospace, construction, automotive and seafood)
In every country in the world.
In addition, in 2013, we launched our VariGuard business unit, which marketed and sold the Social Democratic Party-
Smart products are direct to customers for special purposes such as protecting artwork and light
Sensitive documents in museums and private collections. SPD-
Microscope for smart products
Absorption nanoparticles are usually suspended in the film.
These particles align when applied voltage, allowing light to pass through the film.
The adjustment of the Social Democratic party film voltage enables the user to quickly, accurately and consistently adjust the light, glare and heat through the window, Skylight, curtains or other social democratic partySmart end-product.
This SPD film can be integrated between two layers of glass or plastic, or between the combinations of the two to produce an energy-efficient laminated material
Control and security performance properties.
SPD frontiers believes that the Social Democratic party industry is in the early stage of growth. SPD light-
Control technology may have commercial application value in many products
Control is required.
Some existing product applications
● Cars: sunroof, sunshades, side windows and rear windows;
● Aerospace and Ocean: windows, doors, partitions, sunshades and sunroof.
● Building: commercial and residential windows, doors, skylights and partitions for new construction, replacement and renovation applications;
In addition to the product app listed above, the Social Democratic Party-
SmartGlass technology may also be developing new flat panel displays, glasses, and
Rear side dimming of car
Mirrors and other reflection information are displayed.
However, before assessing the commercial potential of such products, additional product design, engineering or testing is required for such products
Smart glass products can be determined.
Some of our licensees consider the development phase, the product introduction strategy and schedule, and other plans to be owner or secret.
Unless such information is required to be disclosed, the company may restrict the disclosure of the activities of the licensee until such licensee or its customers issue their own announcement of the planned or actual product.
Some of the earlier sales and use of the Social Democratic Party technology were to reduce the commercial installation, and some involved the concept and test installation of the licensee and its customers.
The recent progress made in market development and commercial activities is the result of the research frontier and the concentrated and active efforts of its key permit holders investing in product development and improvement, production facilities, and increased production capacity, durability, performance testing, quality control and assurance, and marketing initiatives.
Starting from the end of 2011, with Daimler launching Magic Sky Control, sales of social democratic party products began to increase™Their Mercedes-Benz full glass roof option-Benz SLK.
At the beginning of 2012, sales Magic control™All glass roof options are on their MercedesBenz SL. In mid-
2014. Sales of Magic Sky Control™New S-all glass roof options for start
With other Mercedes-Benz S-
Class variants begin to provide magical sky control™All glass roof options for 2015.
ResearchFrontiers believes that with the normal progress of product and manufacturing improvements, and the licensed party\'s experience in lamination, manufacturing and installation of the Social Democratic Party is becoming more and more abundant.
Intelligent products suitable for various applications, the adoption rate of the Social Democratic Party
We expect smart products to grow and accelerate, which will increase the Company\'s royalty revenue.
Leading researchers believe that the company\'s largest and most predictable market for technology in the near and medium term will be automotive glass.
As part of their marketing and branding initiatives, many of our licensees have developed their own trademarks for the Social Democratic Party
Intelligent emulsion, film and terminal
These products are listed in their respective press releases, product manuals, advertisements and other promotional materials.
The following trademarks are used at the research frontier: Social Democratic Party-Smart™, SPD-
Smart glass™Tile fast™Social Democratic Party-
Cleaning Technology™Social Democratic Party clean technology™Smart glass™Views on the future
You look everywhere. ™Powered by the Social Democratic Party™Powered by the Social Democratic Party
Cleaning Technology™Powered by Social Democratic Party clean technology™Enable SG™The Social Democratic Party is green and clean™In-
Board of Directors™Speed is important. ™, VariGuard™Visit SmartGlass. com -
Change your view of the world™.
In the last three financial years, the company has been working on developing a category of products, the Social Democratic Party-Smart light-
Therefore, income analysis by category is not provided here.
The following and our financial statements and notes contain information about us and our licensee.
The company does not believe that future sales are seasonal in any material way.
The company does not currently produce its own products directly, but relies on the activities of its licensees and suppliers.
Due to the nature of the company\'s business operations and the fact that the company is not a manufacturer at present, there is no backlog of orders for the company\'s products.
The Company believes that compliance with federal, state and local regulations that have been promulgated or passed regulate the discharge of materials into the environment, or in connection with environmental protection, it will not have a significant impact on the company\'s capital expenditure, income and competitive position.
The company does not plan material capital expenditures for environmental control facilities for the remainder of the current fiscal year or for the next fiscal year.
Employee: on the 16th of the Month, 2017, the company has 11
Time staff, 5 of whom are technicians, and the rest perform legal, financial, marketing, investor relations and administrative functions.
Among these employees, three have obtained a doctorate in chemistry, one has a master\'s degree in chemistry, and one has extensive industrial experience in electronics and electrical engineering.
The two employees also have a master\'s degree in business administration and a doctorate in law.
In addition, the company\'s suppliers and licensees have senior degree team members in many areas related to commercial development of products using the company\'s technology.
The success of the company depends, among other things, on the services of its senior management, and the loss of these services may have a significant adverse impact on the company\'s prospects.
Trend of smart glass industry: Major Global Near-
Long term market for smart glass and Social Democratic PartySmart products.
The potential of smart glass products is great, and it is expected that its economies of scale will be realized as production increases.
The increase in production is also expected to reduce the cost of final products and expand market opportunities.
In the public and private sectors around the world, there is a great deal of effort to promote and use energy-efficient smart glass materials, including materials used in cars, windows and other building glass, aircraft and ships
Smart technology continues to be presented at trade shows, conferences and industry events, and these products are not only displayed by our licensees, but also by their customers and OEMs.
While there is no guarantee that these trends will continue, as long as they continue, each trend is expected to have a beneficial impact on future interests --
Smart Glass Market by Technology InSeptember 2016
Electric discoloration, PDLC, thermal discoloration), End-UseIndustry (
Construction, transportation, electricity generation, consumer electronics)-
Global Forecast for 2022.
The market research report concluded that the smart glass market is expected to grow from $2.
It reached $34 billion in 2015.
13 billion by2022, up 19 year on year.
The period from 2016 to 2% was 2022 per cent.
This study shows that the suspended particle device (SPD)
Technology is expected to grow at its highest growth rate during the forecast period.
In addition, it is expected that the transportation market will dominate the smart glass market during the forecast period.
Car market: in the automotive industry, global trends include the introduction of larger skylights and panoramic roof panels in vehicles, and the higher proportion of those cars that have skylights or use more glass on the roof. SPD-
Smartglass shas is also developing in armored car glass applications, leisure vehicles and a new market, provide personalized custom conversions for car owners who want to express themselves through their own owned and/or driven car designs.
Aircraft electronic dimmable windows can be powered by surge technology or other smart window technologies such as LCD or chrome plating.
The Boeing 787 introduced a window system that uses electric discoloration technology.
There are concerns that the electronic dimmable windows of this aircraft are not dark enough for long-distance flights, passing too much heat to the cabin and switching too slowly.
The Company believes that its social democratic party Technology has important performance advantages compared to other technologies, including faster, more uniform response time and better heat dissipation.
When the aircraft stops on the ramp, reject, excellent sound insulation, an automated dim system that can continuously maintain a constant level of light within the cabin in a real environment
Time and weightsavings.
The leading company producing mechanical and electrical pleated curtains has products including the Social Democratic Party
The first-class supplier of smart windows and other cabin systems they design (e. g.
Cabin Management System
Characterized by the Social Democratic Party
Smart electronic dimmable windows in the model.
Construction market: the construction industry is actively increasing the use of daylight harvesting, and green building technology and building automation systems can capture and control natural light more effectively, as part of an energy saving strategy to offset cooling/heating costs and power used by artificial lighting.
In addition to design, aesthetics and other benefits, the widespread use of glass also supports an increasing number of studies that found that the presence and control of natural light entering improved one\'s health
Product use:Smart light-
Control Technology-skylights, windows, skylights, partitions, etc-can play an important role in supporting the convergence of these global trends.
In terms of architectural application, the unique features of various market forces and the Social Democratic Party
SmartGlass has had a positive impact on the interest of the Social Democratic PartySmart products.
Many architects specify more glass in the design to meet the desire of the building occupants to have a greater connection with the external environment.
In addition, there is an increasing interest in improving the energy efficiency of commercial and residential buildings.
Various studies have shown that buildings in the United States and Europe now account for an estimated 39-
It accounts for 40% of total energy use and more than 70% of electricity consumption.
Many architects and building owners are working to build sustainable, high-energy \"green\" buildings
Efficient, reduce the impact on the environment, improve the health and health of the occupantsbeing.
In addition, the design community is increasingly interested in advanced lighting systems in buildings that reduce the use of electrical lighting and reduce heating and cooling loads.
Because of this, the ability to control light, glare and heat in these building applications is very important and often requires advanced solutions to optimize operational efficiency. SPD-
Smart building products provide immediate, precise shading, Glare control, and thermal management solutions for offices and homes, especially when these products are available for new, replacement, and remodeling projects.
These products include insulated glass units, single
Panel renovation, glass of abnormal shape and products with advanced manufacturing, such as products with ballistic trajectoryand blast-
Patent products in the field of research --
SmartGlass technology has been selected as the exclusive smart glass for the US Pavilion at Milan 2015 World Expo.
The American pavilion has a social democratic party with 312 large screens-
Isoclima S. Smart glass manufactured under the research frontier license of Isoclima S. p. A.
Each panel is about 1 m by 3 m in size, making the total surface area of the roof over 10,000 square feet.
This is the world\'s largest known smart glass installation for roof applications, seen by more than 6 million people.
Marine market: Light in marine applications
Control needs are particularly important, and the glass solutions currently used are not ideal when many yacht manufacturers work to meet a variety of shading and solar control objectives.
For example, some reports say that up to five different types of glass are used on a typical yacht in order to meet the needs of different glass windows. SPD-
Intelligent marine products, thanks to their increased functionality, superior performance and versatility, can reduce the number of different types of glass used in these yachts. SPD-
Smart marine products offer an innovation that allows these operators to manage incoming light, glare and heat while achieving privacy or maintaining vision as needed.
Historical background and recent development: Social Democratic Party-
SmartFilm production: important materials used in social democratsSmart end-
The product is a surge lamp-
Control film to change the tone of glass or plastic.
In the early days, our licensed party, Hitachi Chemical, began producing their original Social Democratic Party-Smart light-
Control film on their first line.
In the second half of 2009, Hitachi Chemical announced that they have started mass production on new, larger production lines and expanded their annual production capacity to 400,000 m² (over 4.
3 million square feet).
HitachiChemical\'s production line is dedicated to the production of the Social Democratic Party-Smart film.
On July 2009, Hitachi Chemical released a website specifically for its social democratic party --
On 2009, Hitachi Chemical outlined in its press release and public speech that it plans to \"accelerate the use of the Social Democratic party film, which has great growth potential\" and noted that, \"The Social Democratic party film has been positioned as one of the key emerging products that Hitachi Chemical has pushed to become the company\'s future products.
Social Democratic Party customers of Hitachi Chemical
The smart movie is over.
Products at the forefront of research are licensed.
These licensees receive films, laminate them between glass or plastic substrates, and then manufacture terminals
Products sold to various industries. Mostend-
The licensee of the product pays royalties to the research frontier when selling these terminals
Products usually from 10-15%.
In 2010, Hitachi Chemical expanded its social democratic party film portfolio by starting commercial production of \"lighter\" versions of the film.
Both the \"dark\" and \"light\" versions of these films provide a high range of visible light transmission.
The scope of the \"dark\" film of the Social Democratic Party is about 0. 5% to 55.
0%, the scope of the Social Democratic Party \"light\" film is about 2% to 65%.
This leads to contrast (
Light and Dark transmission ratio)of up to110:1.
Commercialize the \"dark\" and \"light\" versions of the Social Democratic Party
The film provides more design and performance choices for the terminal.
InDecember 2014, research frontier was granted a patent related to the production Social Democratic Party
More commercially available films with higher light and dark transmission than currently available.
Two other companies are developing the Social Democratic Party-Smart light-
Use the Social Democratic Party to obtain permission from the research frontier to control the filmSmart emulsion.
The two companies are allowed to sell the Social Democratic Party-Smart light-
Control the film to other licensees at the forefront of research.
Neither company has announced commercial products to be sold. SPD-
Smart car products: original equipment manufacturer of car: Daimler is starting to use
Smart glass technology in magical sky control™Panoramic glass roof as an option for its new MercedesBenz 2012 SLK.
Daimler began offering magical sky control systems in 2012. ™Panoramic glass roof as a choice for its new MercedesBenz 2013 SL.
These social democratic party products allow drivers and passengers to change the tone of the roof from dark to fast and clear by simply pressing the button.
SLK and SL are the first big-
Providing a series of production vehicles of the Social Democratic PartySmartGlass.
The research frontier involved in the production of Magic Sky Control is licensed™The roofs of SLK and SL include Hitachi Chemical, which produces the Social Democratic Party. Smart light-
Japanese movie Control
Japanese automotive glass company Sheet in Japan and its subsidiaries in the UK and Germany Pilkington subsequently processed and laminated Hitachi\'s social democratic film into glass for magical sky control™Roof.
Daimler began offering its magical sky control in 2014. ™As an option for the new MercedesBenz S-Class Coupe. In 2015other S-Class variant (i. e.
Standard wheel base V222, long wheel base V222, Maybach S600 x22, and Pullman Maybach luxury sedan)
Start offering magical sky control™As an option. The all-new Mercedes-Benz S-
Class is the third largest-
Scale series production vehicles offering magical sky control™Using the Social Democratic Party-
The research frontier involved in the production of Magic Sky Control is licensed™Roof of S-
Including Hitachi Chemical, which produces the Social Democratic Party. Smart light-
Hitachi\'s social party film is then processed and laminated into glass for magical sky control™Roof. TheS-
Provide maximum panoramic Magic Sky Control™The roof was put into production continuously.
Surface area using the panoramic roof of the Social Democratic Party-
Smart glass technology on S-
Class is about three times the roof glass used on current slk and SL sports cars, third-
Market forecasters estimate, S-
Higher than the sum of SLK and SL sports cars.
A key factor in the widespread adoption of social democratic party technology in various car windows is its cost.
Usually, the cost of new technology products will decrease as the production volume increases.
Price per square foot-
According to our authorized manufacturers, SmartGlass has entered the automotive market over time.
S-royalty on the Magic Sky Control panoramic roof
General level vehicles between $150-250/car.
The royalty on the Magic Sky Control roof for SLK and SL vehicles is between $100150/car.
Roof of S-
Class is about two to three times the surface area of the SLK and SL vehicle roof.
According to the research frontier, S-
The Class car model is also important because it applies our Social Democratic Party-Smart light-
By moving from sports cars to sports cars and passenger cars, the control technology is extended to a wider range of vehicle categories.
Historically, since its debut more than 40 years ago,
Class is the main platform for introducing new technologies to customers, and in many cases it extends to other cheaper models of Mercedes-Benz seriesBenz brand.
Innovation 2015 at the Los Angeles motor show, Mercedes-
Mercedes-Benz new Mercedes-Benz-Benz SL.
Press Release from Mercedes
Benzit said, \"another feature that remains is unique optional extra Magic Sky Control: Panoramic View when turned off
Roof changes automatically from dark to transparent or vice
And vice versa in a few seconds.
\"The Magic Sky Control function is carried with you
End with the previous model.
Other new features include new front end, new headlights, more powerful engines, new transmissions, etc.
At the North American International Auto Show in Detroit, Mercedes-2016
The premiere of the new Mercedes-Benz-
Mercedes SLC will be available in the spring of 2016.
Press Release from Mercedes
When the SLC was first announced, Mercedes-Benz said, \"the SLC is still unique and features panoramic variables.
Roof with Magic Sky Control-this glass roof will brighten up with just a push of the button.
This means that it provides an open
There is a feeling of air at any time, but when needed, it will bring us happiness in the hot sun.
\"Using the magical sky control function of the research frontier Social Democratic Party --
Intelligent Glass technology is a kind of carrying
Unlike SLK sports car, the predecessor of SLC.
Other automakers continue to develop and evaluate the use of social democratic party technology in their windows systems.
This window system includes a skylight, sidewindows, rear-
Windows and frontwindow visors.
Some car manufacturers and their suppliers have joined.
Smart glass in concept cars, some of which are on display at major auto shows:
The SmartGlass panoramic roof and rear glass at the 2017 Consumer Electronics Show.
The roof of the big house and the curved back glass were made with the Social Democratic Party.
Smart glass lamp
Control film lamination between Corning gorillas®Glass, a special chemical.
Reinforced thin glass.
● January 2016: At a special event at the Consumer Electronics Show, mainland companies showed their \"smart glass control\" system on the demo car (CES)in Las Vegas.
This Ford Mondeo wagon used the Social Democratic Party-
SmartGlass technology enables the glass of all 11 side windows and rear windows, as well as the top sun visor portion of the windshield, to change transparency and darken immediately through electrical control signals.
● March2015: Luxury car brand TheLincoln Motor Company of Ford Motor Company launched the Lincoln Continental concept car
Electronic coloring skylight for smart glass.
This Lincoln European concept car adopts the Social Democratic Party.
In April 2015, SmartGlass made its debut at the Shanghai auto show.
The first appearance at the Paris auto show was the new BMW concept car Active Tourer.
The entire composite glass roof of this car is patented
Smart glass technology.
● March2016: Mercedes-
For the first time at the Geneva International Auto Show, the limited edition Viano Pearl was announced.
This car shows the function and conceptual use of the Social Democratic Party.
Smart glass on Mercedes-Benz car side glassBenz.
● December11: Toyoda introduced the FS hybrid concept for the first time at 2011 Tokyo auto show in Tokyo, Japan.
The FS hybrid concept demonstrates the use of social democrats-
Intelligence™Side glass technology.
● At the Frankfurt International Motor Show in Frankfurt, Germany, Audi introduced the A2 concept car.
A2 is electric.
Electric passenger car equipped with large social democratic party-
Intelligence™Panoramic glass roof.
Aftermarket: which is the biggest market?
Intelligent technology is a new car being developed by the world\'s automobile manufacturers, and the after-sales market upgrade is also approaching.
Long-term opportunities in the automotive market.
The research field is made by AmericanGlass products (AGP)
Sky Social Democratic Party with its Vario Plus-
Intelligent Glass in auto aftermarket.
On 2013, the leaders in the research field announced that they had added two new licensee Tint-
Both JSC and Advnanotech are targeting the Russian aftermarket.