Joe Harary: I don’t know if you heard the earlier part of the call, but there’s three prongs we’re going after in architectural. One is the hard to shade areas like skylights, and then the second is government, and the third is traditional homes, offices, and apartments. And the game changer on that is the retrofit application. You could have sales this year in that in all of those areas.
Jeff Harvey: Last year, especially with the retrofit, makes a lot of sense.
Joe Harary: The retrofit is really ready now.
Jeff Harvey: I live in a house that had, I’m in a climate where everybody has skylights, and I had to spend lots of money to put shades up in all my skylights. So be great if somebody like Budget Blinds could carry a SPD line that you could go and get and put up and cover your skylights.
Joe Harary: Right. Although I don’t know if Budget Blinds is the right entree into the market, because then you kind of have a race to the bottom in terms of innovation and profitability. But your point is well taken that SPD would be a great solution for it. And when you consider what your traditional motorized shades in a skylight would cost. And also, if you live in an area where there’s snow, you can’t put these shades on the outside of a skylight. It has to be on the inside or inside the glass. So SPD doesn’t have those limitations. You can put it in any environment you want.
Jeff Harvey: So, speaking of the airline industry, I did see today that I think United has stopped ordering new planes because they don’t have enough pilots. Well, put it this way, they’ve stopped hiring new pilots because they can’t get new planes. So, I’m not sure that the growth in the airline industry is going to be that great, because certainly Boeing has had an awful lot of problems with everything that they’ve been working at.
Joe Harary: Well they certainly have. They certainly have.
Jeff Harvey: I hope, I mean, I know Airbus I hope…
Joe Harary: I don’t think that’s a sustained problem. I think that it’s a terrible PR problem. I think it’s a structural problem within Boeing that needs to be addressed. But I don’t think that it’s a permanent problem. So I think that – and believe me, there’s a lot of – but remember, Jeff, one thing to remember also, you could retrofit an existing plane with SPD. We do it all the time. So you don’t have to wait for new planes.
Jeff Harvey: I’m surprised it hasn’t happened because, like when I fly down to the church in Caicos, the first thing that the stewardess says is everybody shut their blinds. She could just…
Joe Harary: Right, imagine flipping a switch. Yeah. Flip a switch.
Jeff Harvey: Yes.
Joe Harary: Yes.
Jeff Harvey: So besides this Asian company, which is going to be a mid price car, are there any other manufacturers that potential have a mid price car that are going to put SPD on?
Joe Harary: We’re talking to them. Yes, but I think, because of the strategic relationship that this car company has with one of our licensees, you’re probably going to see them have it first.
Jeff Harvey: Okay, very good. Thank you, Joe.
Joe Harary: Thanks, Jeff. Good talking to you.
Operator: We have a question from Leonard Litzo [ph], Private Investor. Your line is open.
Unidentified Analyst: I’m back. I’m thinking, is anything going on in the industrial market with SPD?
Joe Harary: When you say the industrial market, what are you referring to?
Unidentified Analyst: Well, I’m referring to things like people are doing things with bobcats, different things around.
Joe Harary: Oh, yeah. It’s funny you mentioned that. If you were at CES, you probably would have seen a very nice bobcat. That’s all I’m going to say about it.
Unidentified Analyst: Okay.
Operator: [Operator Instructions] We have a question from Alan Ginsberg, Private Investor. Your line is open.
Alan Ginsberg: Yes. Hi, Joe. It’s a follow up question. You haven’t mentioned anything about sun visors. Has there been any progress there?
Joe Harary: Yes, there has. Still in development, and a lot of that is driven by when the launch customer wants to come out with something.
Alan Ginsberg: So it’s just like one launch customer has to be the first one. Is that it?
Joe Harary: Yeah. I mean, there’s always the possibility this would become aftermarket, and if somebody doesn’t do it, I would probably just do it. But I have to also respect the businesses and my licensees.
Alan Ginsberg: Okay. Thank you.
Joe Harary: Thanks a lot.
Alan Ginsberg: You’re welcome.
Operator: Our next question comes from Tom S [ph], Private Investor. Your line is open.
Unidentified Analyst: Yeah. Hi, Joe. How you doing?
Joe Harary: Hey, Tom.
Unidentified Analyst: Yes, I was going to ask about the car you mentioned coming out from Asian car there, and it sounds consistent in your words, and you’ve been steady with it, so I do have faith it’s coming this year. Without revealing. I know you can’t reveal a lot, but could you give an idea on volume? Not exactly an SPD, but even the car or anything at all, is it going to be a trim package or how many we’re going to get in of that volume would have SPD?
Joe Harary: They have – I know what the initial, we’re going to call it a test market, but the test market for a car with this volume worldwide, the volume is pretty high. The test volume is greater than when Mercedes had all of their cars using this. So even a test market for something with this kind of volume was a significant number. I also expect, though, that the royalty per car is going to be lower than Mercedes, because the price of the roof to this car company is lower than what Mercedes was paying back in 2010, 2011. But it could be significant. So we’re excited.
Unidentified Analyst: Yeah, and that’s good to hear. One follow up on that. When you say the test market and the amount and all that. So you’re basing this test market on cars that will have SPD, not just is that like kind of essentially a forecast of how many? Because not every car, unless it’s a standard.
