Joe Harary: The forecast we were given – right, the forecast we were given for what they consider a test market, which I consider substantial volume, is pretty significant.
Unidentified Analyst: And that’s the test market that’s forecasted for SPD, not just the volume of cars, it’s the forecast of SPD.
Joe Harary: Right. These are the number of SPD roofs that are going to be produced.
Unidentified Analyst: Okay. And I’m sure you probably can’t say anything about if it might be or more leaning towards an option or trim package or. You can’t say anything on that.
Joe Harary: I don’t think they know. But if I was going to guess based on what I know about the way car companies implement this, they like to put things as an option, because that’s where they make their money. But sometimes an option can be a very high percentage take rate. If you look at McLaren versus Mercedes, the McLaren take rate for SPD is enormous.
Unidentified Analyst: Yes, no, I’m sorry to interrupt. I’m aware of that. I’m just thinking trim package is technically an option. There’s like a standalone option or a trim package as an option. Trim package would be ideal.
Joe Harary: I don’t know if they’re going to do a trim package. Yes, I don’t know if they’re going to do it as part of a trim package or if they’re going to do it as a standalone option, or, God willing, one day it’ll be standard equipment, because then you could totally downsize the size of your air conditionings to be a fraction of what they are.
Unidentified Analyst: And it could be because the ix is pretty much, I think 95% or more of the PDLC is in 95% of the IX [ph]. So that could happen, but hopefully we at least get out of a trim package. I noticed they started doing that in some cars, too. Well, thanks for your answers.
Joe Harary: Sure. Appreciate it. Thanks for the question, Tom.
Operator: We have a question from Michael J [ph]. Private Investor. Your line is open.
Unidentified Analyst: Hello, Joe. I’d like to ask to what extent is cost still a barrier to having more organizations adopt SPD, especially the architectural one, someone who, you know, posted in quite detail comparing the costs of SPD with non-SPD windows. And it seemed that there still was a great disparity and that cost.
Joe Harary: I didn’t see the post, so I can’t speak to what the post said. But if you look at, and if you go back to my earlier comments about why we’re excited about this Asian car maker, the price of the film, the price of the cost reduction from streamlining due to the retrofit use can be significant. And if you look at some of the costs that you’re comparing it to, like, let’s say the skylight, we’re cheaper than a skylight shade. So it depends on how you analyze the market. The market is going to decide, if someone wants it, they’re going to buy it. But I don’t believe in side by side costs unless you have a context.
Unidentified Analyst: To what extent is Mercedes still using SPD in their vehicles. It seems we don’t have too much information regarding its adoption and other models. So what is the status of Mercedes and SPD?
Joe Harary: We have a very good relationship with the people at Mercedes, and their name pops up on royalty reports from time to time. That’s all I’m going to say.
Unidentified Analyst: Okay. Thank you.
Joe Harary: Thanks a lot, Michael.
Operator: And our next question comes from Seth Nickerson, a Private Investor. Your line is open. Mr. Nickerson, your line is open.
Seth Nickerson: Yes, hi.
Joe Harary: Hey, Seth. How are you?
Seth Nickerson: I’m doing well, Joe. Thanks for asking. I noticed on a chat board that Gauzy had posted about an MOU with LG back in January. I was wondering when….
Joe Harary: Yes, they’ve had, when we were talking about transparent OLED displays, that’s LG, providing, they have a unique technology, which is a transparent form of OLED. And just to kind of go, what’s underneath that? So there’s OLED displays out there, and typically they’re what’s in your television on the wall. A transparent OLED allows you to actually put that on a clear substrate, like a piece of glass, like a window. So the idea is you can turn a window into a television, but if you think about the optics of that, if you have that window face with daylight coming in from behind it, it’s going to wash out the image. So if you now combine that transparent OLED with an SPD film, you have the ability to turn on the OLED, to turn the window, if you will, into a television and block the ambient light by using an SPD film.
So all of a sudden, you go from having a washed out television image to a vibrant, clear one. And then let’s say you want to turn that window, that television, back into a clear window. You would clear up the SPD film and turn off the OLED, and you have a clear window. So that’s the idea. It’s quite remarkable when you see it in practice. And as I mentioned, when we were at CES, there was flat panel displays that had the combination transparent OLED and SPD film at Gauzy’s booth and elsewhere. But also they had an augmented reality windshield, where imagine a piece of construction equipment, for example, and superimposed on the windshield was where all the gas and electrical lines were on the site that you’re digging. So you could see, as you’re digging, where the areas you need to avoid are.
