Research Frontiers believes that the SPD industry is in the initial phase of growth. SPD light-control technology may have wide commercial applicability in many types of products and industries where variable light-control is desired. Some existing product applications for SPD-Smart glass or plastic window products include the following:

• ●	Automotive:
  	sunroofs, sunvisors, side windows and rear windows;
  ●	Aerospace and marine:
  	windows, doors, partitions, sunvisors, and skylights.
  ●	Architectural:
  	commercial and residential windows, doors, skylights, and partitions for new construction , replacement, and retrofit applications;

  
  
  
  
  
  

  Automotive sunroofs, sunvisors, side windows and rear windows;

• Architectural commercial and residential windows, doors, skylights, and partitions for new construction , replacement, and retrofit applications;
• Aerospace and marine windows, doors, partitions and sunvisors.

    Some of the early sales and uses of SPD technology have been low volume commercial installations and some have involved concept and test installations by licensees and their customers (see “Trends and Recent Developments” below). Some of our licensees consider the stage of development, product introduction strategies and timetables, and other plans to be proprietary or secret, and assecret. Unless required to disclose such this information, cannot be disclosed by Research Frontiersthe Company may limit its disclosure of licensees activities until such licensees, or their customers, make their own public announcements of planned or actual product launches.

    Higher volume sales is now expected, initiated by the recent launch by Daimler AGSome of the Magic Sky Control™ all glass roof option (usingearly sales and uses of SPD technology) ontechnology were to low volume commercial installations and some have involved concept and test installations by licensees and their Mercedes-Benz SLK and SL vehicles. Research Frontiers believes that within the different industry applications listed above, automotive sunroofs and all glass roofs such as the recently launched Magic Sky Control roof on the Mercedes-Benz SLK, sunvisors and side and rear windows for vehicles, aircraft window shades and certain architectural applications will be the earliest adopters of the Company’s technology the largest and most predictable near and intermediate term market for its technology will be the automotive glass market.

    In addition to the product applications listed above, SPD-SmartGlass technology may also offer potential benefits in the development of new flat panel displays, eyewear, and self-dimming automotive rear-view mirrors. However, such products need additional product design, engineering or testing before an evaluation of the commercial potential of such SPD-SmartGlass products can be determined.

customers. Recent progress with regard to market development and commercialization activity has been the result of focused and active efforts by Research Frontiers and its key production and end-product licensees who have invested in product development and improvements, production facilities, increased production capacity, durability, performance testing, quality control and assurance, and marketing programs. Licensees supplying film

Beginning in late 2011, higher volume sales of SPD products commenced with the launch by Daimler AG of the Magic Sky Control™ all glass roof option on their Mercedes-Benz SLK. In early 2012, sales of the Magic Sky Control™ all glass roof option commenced on their Mercedes-Benz SL. In mid-2014, sales of the Magic Sky Control™ all glass roof option commenced on the new S-Class Coupe with other Mercedes-Benz S-Class variants expected to end-product licensees have announced increases, or plans to do so,begin offering the Magic Sky Control™ all glass roof option in their production capacity. 2015.

Research Frontiers believes that with the normal progression of product and manufacturing improvements, and as licensees become more experienced at the lamination, fabrication and installation of SPD-Smart products for various applications, the adoption rates for SPD-Smart products will grow and accelerate, which we expect will increase the stream of royalty income for the Company. Research Frontiers believes the largest and most predictable near and intermediate term market for its technology will be automotive glass.

As part of their marketing and branding programs, many of our licensees have developedtheir own trademarks for SPD-Smart emulsion, film, and end-products and these are listed in their respective press releases, product brochures, advertising and other promotional materials. Research Frontiers uses the following trademarks: SPD-Smart™, SPD-SmartGlass™, VaryFast™, SPD-CleanTech™, SPD Clean Technology™, SmartGlass™, The View of the Future - EverywhereFuture-Everywhere you Look™, Powered by SPD™, Powered by SPD-CleanTech™, Powered by SPD Clean Technology™, SG Enabled™, SPD Green and Clean™, SPD On-Board™, Speed Matters™, VariGuard™ and Visit SmartGlass.com - toSmartGlass.com-to change your view of the world™.

In each of the last three fiscal years the Company has devoted substantially all of its time to the development of one class of products, namely SPD-Smart light-control technology, and therefore revenue analysis by class is not provided herein. Information about our operationoperations and those of our licensees is included below and in our financial statements and notes thereto.

The Company does not believe that future sales will be seasonal in any material respect. The Company does not currently directly manufacture or market products on its own but rather depends on activities of its licensees.licensees and vendors. Due to the nature of the Company’stheCompany’s business operations and the fact that the Company is not presently a manufacturer, there is no backlog of orders for the Company’s products.

The Company believes that compliance with federal, state and local provisions which have been enacted or adopted regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, will not have a material effect upon the capital expenditures, earnings and competitive position of the Company. The Company has no material capital expenditures for environmental control facilities planned for the remainder of its current fiscal year or its next succeeding fiscal year.

EmployeesEmployees:

On March 13, 201210, 2015 the Company had thirteen full-time employees, five of whom are technical personnel, and the rest of whom perform legal, finance, marketing, investor relations, and administrative functions. Of these employees, three have obtained doctorates in chemistry, one has a mastersamaster’s degree in chemistry, one has extensive industrial experience in electronics and electrical engineering, and one has majored in physics. FourThree employees also have additional postgraduate degrees in business administration, including one doctorate in organization and management.administration. Also the Company’s suppliers and licensees have people on their teams with advanced degrees in a number of areas relevant to the commercial development of products using the Company’s technology. The successThesuccess of the Company is dependent upon, among other things, the services of its senior management, the loss of which could have a material adverse effect upon the prospects of the Company.

Smart Glass Industry TrendsTrends:

    While economic activity around the world is still recovering from a severe downturn, there alsoThere are favorable converging global trends in the major near-term markets for smart glass and SPD-Smart products. These trends are gaining momentumThe potential for smart glass products is significant and strength. is expected to attain economies of scale with increasing high volume production. This increased production is also expected to bring down end product costs and expand market opportunities.

In both public and private sectors across the world, there are substantial efforts targeted toward the promotion and use of energy efficient smart glass materials, including those used in automobiles, windows and other architectural glazings, aircraft and boats. For example, as part of its sustainable design strategies, the architectural community is actively increasing the use of daylight harvesting and building automation systems to more effectively capture and control natural light as part of energyreduction strategies to offset electricity used by artificial lighting. In addition to design, aesthetic and other benefits, this expanded use of glass also supports a growing body of research which finds that the presence of and control over incoming natural light improves the well-being and productivity of individuals. Products using SPD-Smart light-control technology – sunroofs, windows, skylights, partitionscontinue to be exhibited at trade shows, conferences, and others –industry events, with such products not only being exhibited by our licensees but also by their customers and by OEMs. While there can playbe no assurance that these trends will continue, to the extent that they do continue, each is expected to have a beneficial effect on future interest in SPD-Smart technology.

In June 2014, Markets and Markets issued a global smart window study. This report indicates that the Smart Glass market was worth $1,581.4 million in 2013, and is expected to reach $5,814 million by 2020, at an important role in supporting these converging global trends.estimated Compound Annual Growth Rate (CAGR) of 20% from 2014 to 2020.

Automotive Market:

In the automotive industry, global trends include the introduction of larger sunroofs and panoramic roof panels in transportation vehicles, and a higher percentage of these vehicles having a sunroof or using more glass in the roof. In 2011, Daimler AG introduced its new Mercedes-Benz SLK and SL roadsters which offers as an option the Magic Sky Control glass roof using the Company’s SPD-SmartGlass technology. In March 2012, Daimler introduced its third vehicle, the Mercedes-Benz Viano PEARL, using SPD-SmartGlass technology at the 82nd Geneva International Motor Show. The special limited edition of the Mercedes-Benz Viano Pearl features as standard equipment SPD-SmartGlass technology in the luxury van’s four rear side windows, allowing rear passengers enhanced privacy as well as instant heat, light and glare control.

     Automobile manufacturers are beginning to introduce “cielo” glass systems where the windshield of the vehicle joins with the glass in the roof of the vehicle to form one continuous piece of curved glass. The SPD-Smart component of these cielo systems can start with the blue band on the top of the windshield (the rest of the windshield would not use any kind of dark tint because regulations require that the main part of the windshield not have less than 70% light transmission at all times) and extend back to encompass the entire glass roof. Some automakers have incorporated SPD-SmartGlass in concept vehicles, with some of these concept vehicles being exhibited at major auto shows, and a growing number of automakers are developing SPD-SmartGlass products for production vehicles as well. SPD-SmartGlass has also been shown in armored automotive glass applications, recreational vehicles, and a new market is also beginning to develop for personalized custom conversions of automobiles for owners who wish to express themselves through the design of the cars they own and/or drive.

Aircraft Market:

In the aircraft industry there is a trend towards larger windows with more passenger control and functionality. In the“transport category” (primarily large commercial passenger aircraft) segment, the world's two largest aircraft manufacturersare both promoting the size of the windows in new aircraft platforms already being delivered (e.g. Boeing 787 and AirbusA350). In the “general aviation” category (primarily business jets, private or chartered smaller aircraft) this trend is true as well. For example Gulfstream is promoting the size of the windows on their G650 platform, and Bombardier highlights the size of the cabin window on the upcoming Global 7000 and 8000 platforms. Several OEMs either already offer, or have announced their interest to include, electronically dimmable windows in their aircraft– including Boeing, Airbus, Bombardier, Embraer, Beechcraft, HondaJet, Eurocopter, Dassault, Nextant and Epic.

Electronically dimmable windows for aircraft may use SPD technology, or may use other smart window technologies such as liquid crystal or electrochromic technology. A window system using electrochromic technology was introduced in the Boeing 787. There have been concerns raised that this aircraft's electronically dimmable windows are not dark enough for long haul flights, transmit too much heat into the cabin, and have a switching speed that is too slow.

The Company believes its SPD technology offers important performance advantages over other technologies including faster, more uniform response time, greater light-blockage, superior heat-rejection when the aircraft is parked on the ramp, superior acoustic insulation, an automated dimming system to continuously maintain a constant level of light in the cabin in real-time, and weight-savings. To date, SPD technology is also the only commercially available light-control smart window technology known to have passed the stringent safety and durability tests required by the aviation industry and to have received a Supplemental Type Certificate (STC) from the Federal Aviation Administration. Today SPD-Smart electronically dimmable windows are flying in 33 models of various aircraft including those used in commercial aviation, general aviation and military aviation. SPD-Smart products have also been selected by aircraft manufacturers as standard equipment onupcoming new production platforms including Honda Aircraft’s HondaJet, and Dassult Aviation’s Falcon 5X.Leading companies manufacturing electromechanical pleated window shades have products that incorporate SPD-Smart windows into their designs, and Tier 1 suppliers of other cabin systems (e.g. cabin management systems) are featuring SPD-Smart electronically dimmable windows in mockups.

Architectural Market:

The architectural community is actively increasing the use of daylight harvesting, green building technologies and building automation systems to more effectively capture and control natural light as part of energy reduction strategies to offset cooling/heating costs and electricity used by artificial lighting. In addition to design, aesthetic and other benefits, this, the expanded use of glass also supports a growing body of research which finds that the presence of and control over incomingnatural light improves an individual’s well-being and productivity. Products using SPD-Smart light-control technology– sunroofs, windows, skylights, partitions and others– can play an important role in supporting these converging global trends.

For architectural applications, various market forces and the distinctive features of SPD-SmartGlass are having an upwarda positive influence on interest for SPD-Smart products. Many architects are specifying more glass in their designs to satisfy building occupants’buildingoccupants’ desire for greater connectedness with the outside environment. Also significantIn addition, there is the heightened attention toincreasing interest in improving energy efficiency in both commercial and residential buildings. Various studies indicate that buildings in the United States and Europe now account for an estimated 39-40% of total energy use and upwards of 70% or more of electricity consumption. Many architects and building owners are striving for sustainable, "green" buildings that are highly energy-efficient, reduce environmental impact, and improve occupant health and well-being. In addition, the design community is increasingly interested in advanced daylighting systems in buildings that lower electrical lighting usage 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 advanced solutions often are needed to optimize operating efficiencies. SPD-Smart architectural products instantly and precisely provide shading, glare control and heat management solutions for offices and homes, especially when these products are available for new construction, replacement and retrofit projects. These products include insulated glass units, single-panel retrofits, unusually shaped glazings, and products with advanced fabrications such as those with ballistic- and blast-resistant capabilities.

Marine Market:

    In the aerospace industry there is also a trend towards larger windows. In the “transport category” (primarily large commercial passenger aircraft) segment, the world's two largest aircraft manufacturers are both promoting the size of the windows in new aircraft platforms either already being delivered (e.g. Boeing 787) or in pre-production (e.g. Airbus A350). In the “general aviation” category (primarily private or chartered smaller aircraft) this trend is true as well, for example Gulfstream is promoting the size of the windows in the upcoming G650 platform. Several OEMs either already offer, or have announced their interest to include, electronic smart window shades in their aircraft – including Boeing, Airbus, Bombardier, Hawker Beechcraft, HondaJet and Nextant. Qantas Airlines currently has SPD-Smart window shades installed in the first class lavatories in all of their Airbus A380 aircraft.

    Electronic aircraft window shades may use SPD technology, or may use other smart window technologies such as liquid crystal or electrochromic technology. For use in aircraft, SPD-Smart window shades are made of shatterproof plastic instead of glass to save weight for a given window thickness and to avoid breakage risks. The Company believes its SPD technology offers important performance advantages over other technologies including faster, more uniform response time, greater light-blockage, maximum heat-rejection when the aircraft is parked on the ramp, and weight-savings. To date, SPD technology is also the only commercially available light-control smart window technology known to have passed the stringent safety and durability tests required by the aviation industry and to have received a Supplemental Type Certificate (STC) from the Federal Aviation Administration. Today SPD-Smart window shades are flying in 26 models of various aircraft including those used in commercial aviation, general aviation and military aviation. Two leading companies manufacturing electromechanical pleated window shades have announced new products that incorporate SPD dimmable windows into their designs.

In the marine application, where light-control needs are especially important, many yacht manufacturers currently employ less than ideal glazing solutions as they try to satisfy various shading and solar control objectives. For example, some report having to use as many as five different types of glass in a typical yacht to satisfy diverse glazing needs. SPD-Smart marine products can reduce the number of different types of glass used in these yachts because of its increased functionality, superior performance and versatility. SPD-Smart marine products provide an innovation that allows these operators to manage incomingmanageincoming light, glare and heat while achieving privacy or maintaining one’s view as desired. In October 2011, Cheoy Lee Shipyards unveiled the Alpha, its most advanced production yacht, which is fully-equipped with the latest yacht design features including SPD-SmartGlass supplied by Research Frontiers licensee Diamond Sea Glaze. The Alpha has approximately 150 square feet of SPD-SmartGlass at various places throughout the vessel and it is the first large-scale production yacht to make such extensive use of SPD-SmartGlass.

    Products using SPD-Smart technology continue to be exhibited at trade shows, conferences, and industry events, with such products not only being exhibited by our licensees but also by their customers and by OEMs. While there can be no assurance that these trends will continue, to the extent that they do continue, each is expected to have a beneficial effect on future fee income for the Company.

    In January 2011, Freedonia Group (a leading market research firm) issued a global flat glass study that projects 6.0 percent annual growth for this market through 2014 (valued at $89 billion in 2014). This study indicated that Flat Glass demand over this time period will be influenced by favorable expectations in building construction and motor vehicles. The Advanced Flat Glass market, a specialty segment of the Flat Glass market, is expected to grow at a faster rate.

    SPD-Smart glass products compete in the solar control segment of the Advanced Flat Glass market. In December 2010, Freedonia Group issued a US Advanced Flat Glass study that projects 9.1 percent annual growth for this market through 2014 (valued at $7.0 billion in 2014). This study further projects that solar control glass, a segment of the advanced flat glass market, is expected to grow at an annual growth rate in excess of twelve percent from 2009 to 2014 (valued at $2.1 billion in 2014).

Historical Background and Recent DevelopmentsDevelopments:

SPD-Smart Film ProductionProduction:

An important material used in SPD-Smart end-products is SPD light-control film that varies the tint of glass or plastic. In early 2007, our licensee Hitachi Chemical began producing their initial SPD-Smart light-control film on their first factory line. During the second half of 2009, Hitachi Chemical announced that they had begun mass production on their new, larger capacity production line and expanded their annual production capacity to 400,000 square meters (over 4.3 million square feet). Unlike prior production lines,

Hitachi Chemical’s new production line is dedicated exclusively to the production of SPD-Smart film. In July 2009, Hitachi Chemical launched its website dedicated to its SPD-Smart light control film and during 2009, Hitachi Chemical outlined in its press releases and public presentations that it plans to "accelerate the use of SPD film, which holds significant potential for growth" and noted that "SPD film is positioned as one of the key emerging products promoted by Hitachi Chemical to become a future leading product for the company."

Customers for Hitachi Chemical's SPD-Smart film are end-product licensees of Research Frontiers. These licensees receive the film, laminate it intobetween glass or plastic substrates, and then fabricate end-products which are sold into various industries. Most of end-product licensees pay Research Frontiers a royalty on the sale of these end-products that typically range from 10-15%.

In 2010, Hitachi Chemical expanded its SPD film product portfolio by initiating commercial production of a “lighter” version of its film. Both the SPD “dark” and “light”versions of the films provide verya high rangesrange of visible light transmission. SPDTheSPD “dark” film has a range of approximately 0.5% to 55.0%, and SPD “light” film has a range of approximately 2% to 65%to65%. This leads to contrast ratios (the ratio of clear to dark light transmission) of up to 110:1. The commercialization of both “dark”both“dark” and “light”versions of SPD-film provides greater design and performance options for various end-product applications.

In addition, in February 2012 the Company filedDecember 2014, Research Frontiers was granted a patent application relating to the production of SPD-films with even higher light and dark transmission states than currently are available commercially.

    In addition to Hitachi Chemical, two licensedTwo other companies are currently making or developing SPD-Smart light-control film under license from Research Frontiers using SPD-Smart emulsion produced by our licensee DIC Corporation (formerly known as Dainippon Ink and Chemicals).emulsion. These two companies are licensed to sell SPD-Smart light-control film to other licensees of Research Frontiers. One company in Italy, Isoclima S.p.A., is also licensed by Research Frontiers to make and sell architectural and automotive end-products worldwide. Neither of these companies has yet announced commercial SPD film products for sale.

In February 2010, iGlass acquired a license from Research Frontiers also licensed Australia’s ID Research Pty Ltd. (the parent company of IGlass Pty Limited)granting it the right to make and sell SPD-Smart film worldwide, and to makemanufacture and sell SPD-Smart architectural smart window productsend-products in Australia, New Zealand and South Africa. The license also grants ID Research Pty Ltd the worldwide right to manufacture and sell SPD emulsion and film to end-product licensees of Research Frontiers. The licensefollows a $1.5 million grant to ID Research Pty Ltd from the Government of Victoria's Science Agenda (VSA) Investment Fund for "Electro Responsive Material Coatings for Switchable Automotive Tinted Glass." The proceeds of this investmentare to upgrade and modify the company’s factory to produce SPD light-control film.

SPD-Smart Automotive ProductsProducts:

Research Frontiers and its licensees are currently working with multiple automotive manufacturers to introduce SPD-Smart windows, sunroofs and roof systems on both concept and production vehicles. Research Frontiers’ end-product licensees in this sector include: American Glass Products, Asahi Glass, BOS Automotive, Custom Glass, Daimler AG, DuPont, GKN Aerospace Transparency Systems, Isoclima, Pilkington Glass, Pittsburgh Glass Works, (formerly the automotive glass division of PPG Industries)Saint-Gobain Vision Systems, Tint-It JSC and Vision Systems.Advnanotech. The Company’s automotive glass licensees account for the majority of all glass producedglassproduced for the automotivemarket throughout the world.

    In September 2008, the automotive glass business of PPG Industries (now known as Pittsburgh Glass Works, LLC), was licensed to make SPD-Smart automotive glass products, including windows, sunroofs and roof glass systems. Pittsburg Glass Works (PGW) is North America’s largest automotive glass producer. PGW cited the importance of this work with SPD-Smart automotive products in their October 2009 press release highlighting milestones achieved during their first year as an independent company after being previously a wholly-owned subsidiary of PPG Industries.Automotive OEMs:

In September 2009, Pilkington Group Limited, a subsidiary of Nippon Sheet Glass (the world’s largest supplier of glass used in buildings and cars), expanded its license for SPD-Smart architectural products to include automotive end-products. In March 2011, Pilkington Automotive introduced its brand SPD-SmartGlass automotive glazing products known as Sundym Select™. Pilkington describes Sundym Select as providing “the highest level of solar protection available in any, mass produced, vehicle glazing to date.” Pilkington and its parent company Nippon Sheet Glass (also a licensee of Research Frontiers) are now supplying Sundym Select for the Mercedes-Benz SLK Magic Sky Control roof.

    In February 2011, Research Frontiers announced that Daimler AG will usebegan using SPD-SmartGlass technology in its Magic Sky Control^™ panoramic glass roof as an option on its new Mercedes-Benz 2012 SLK. In December 2011, the Company further announced that2012, Daimler AG will also offerbegan offering its Magic Sky Control^™ panoramic glass roof as an option on its new Mercedes-Benz 2013 SL (expected to be available during 2012).SL. These SPD products allow drivers and passengers to change the tint of the car roof from dark to clear quickly with a touch of a button. The SLK and SL will beare the first large-scale series production vehicles to offer SPD-SmartGlass. The Research Frontiers licensees involved with the production of the Magic Sky Control^™ roof for the SLK and SL include Hitachi Chemical, which manufactures the SPD-Smart light-control film in Japan and has recently announced its capacity to manufacture 4.3 million square feet of SPD film per year. Japan.Automotive glass companies Nippon Sheet Glass in Japan and its subsidiary, Pilkington, in the UK and Germany then processand laminatelaminates Hitachi’s SPD film into the glass for the Magic Sky Control^™ roof.

In March 2012,late-2014, Daimler introducedAG began offering its Magic Sky Control™ as an option on the new Mercedes-Benz S-Class Coupe with other S-Class variants (i.e. Standard Wheel base W222, Long Wheel Base V222, Maybach S600 X222 and the MaybachPullman Limousine) expected to offer Magic Sky Control™ as an option in 2015. The all-new Mercedes-Benz S-Class is the third large-scale serial production vehicle to offer Magic Sky Control™ using SPD-Smart technology. The Research Frontiers’Frontiers licensees involved with the production of the Magic Sky Control^™ roof for the S-Class include Hitachi Chemical, which manufactures the SPD-Smart light-control film and Asahi Glass Corporation which then process and laminates Hitachi’s SPDfilm into the glass for the Magic Sky Control^™ roof.

The S-Class will offer the largest panoramic Magic Sky Control™ roof ever put into serial production. The surface areaof the panoramic roof using SPD-SmartGlass technology aton the 82nd Geneva International Motor Show. The special limited editionS-Class is approximately three times the size of the Viano Pearl features as standard equipment SPD-SmartGlassroof glass used on the current SLK and SL roadster, and third-party market forecasters estimate that the total vehicle production volumes for the S-Class will be higher than the SLK and SL roadsters combined.

A key factor in the broad adoption of SPD technology in various automotive windows is its cost. Typically the luxury van’s four side windows incost for new technology products decrease substantially as production volumes increase. Royalty for the rearS-Class vehicles are expected to be approximately $150-250/car. In contrast, the royalty for the SLK and SL vehicles have been $100-150/car. The roof on the S-Class is approximately 3 times the area of the vehicle, allowing passengers enhanced privacy as well as instant heat, lightSLK and glare control. This isSL vehicles. As a consequence, the first vehicle produced by an automotive OEM that offers automotive side windows made using SPD light-control technology. The Viano Pearlcost per square foot of the S-Class vehicles is expected to be available beginning in July 2012. This SPD-SmartGlass used in48% less per square foot than theMagic Sky Control™ all glass roof option for the Viano Pearl will be manufactured by Research Frontiers’ licensee Isoclima S.p.A.SLK or SL.

    In January 2010, Vision Systems acquired a license fromResearch Frontiers believes that the Company to manufacture and sell SPD-Smart products for markets including recreational vehicles, buses, trucks, mobile cranes and construction vehicles in all countries of Europe. During 2010, Vision Systems featured its “Nuance” brand of SPD-Smart automotive dimmable windows at InnoTrans 2010 (Berlin, Germany) and at the 63^rd IAA Commercial Vehicle conference (Hanover, Germany). During April 2011, Vision Systems exhibited its SPD-Smart aerospace products at the 2011 Aircraft Interiors Expo (Hamburg, Germany) and at the 2011 Bombardier Operators Conference and Tradeshow (Toronto, Canada). In May 2011, Vision Systems SPD-Smart products were exhibited in an OEM’s mock-up at the 11th Annual European Business Aviation Convention & Exhibition (EBACE) (Geneva, Switzerland). In June 2011, Vision Systems SPD-Smart aircraft window shades were featured in the business class sectionaddition of the Bombardier CSeries aircraft mockup at the 49th International Paris Air Show (Le Bourget Airport in France). Also in that month, Vision Systems exhibited itsS-Class car model is also significant since it applies our SPD-Smart transportation products at AGIR 2011 (La Rochelle, France), an automotive trade exhibition dedicatedlight-control technology to the managementbroader class of vehicles by moving beyond roadsters to coupes and operationpassenger sedans. Historically, since its debut over 40 years ago, the S-Class represents the premier platform to introduce new technologies to the customer, which in many cases expand to the other less expensive model lines within the Mercedes-Benz brand.

Other automakers continue to develop and evaluate the use of public transport including buses, coaches, tramwaysSPD technology in their windows systems. Such window systems include sunroofs, side-windows, rear-windows and fleet vehicles. Vision Systems’ aerospace and ground transportation products were exhibited in October 2011 at the NBAA 2011 – the National Business Aviation Association’s 64th Annual Meeting and Convention (LasVegas, Nevada) – where HondaJet also exhibited this licensees’ SPD-Smart products in its mock-up. During that month, SAFRA SAS exhibited bus roof glass produced with Vision Systems’ SPD-Smart Nuance product for the transportation industry at the 23rd National Meeting of Public Transport (Strasbourg, France), and another automotive exhibited a skydome for a motorhome made with Vision Systems’ SPD-SmartGlass at the 46th Salon de Vehicules de Loisirs (Paris, France). Later October, Vision Systems exhibited its SPD-Smart ground transportation products at Busworld Kortrijk 2011 (Kortrijk Xpo, Belgium). In November 2011, Bombardier Aerospace featured Vision Systems’ SPD-Smart aircraft windows in CSeries aircraft cabin mock-up at the 2011 Dubai Airshow (Dubai, United Arab Emirates).front-window visors.

    Vision Systems announcedSome automakers have incorporated SPD-SmartGlass in January 2012 that Notin, manufacturerconcept vehicles, with some of motorhomes and campers, has selected Visions Systems’ Nuance brand of SPD-SmartGlass for the skylight of Notin's Angara luxury motorhome. The SPD-Smart skylight is standard equipment on the Angara. Production and shipments of the Angara are scheduled to commence in 2012. In February 2012, Vision Systems’ SPD-Smart aerospace products werethese concept vehicles being exhibited at the 2012 Singapore Airshow (Changi International Airport, Singapore).major auto shows:

Automotive Aftermarket:

While the highest volume market for which SPD-Smart technology is being developed is new car production by the world’stheworld’s automakers, the aftermarket upgrade market also presents near-term opportunities in the automotive market. Research Frontiers licensee American Glass Products (AGP) is offering its Vario Plus Sky SPD-SmartGlass to the automotive aftermarket. In March of 2013 Research Frontiers announced that it had added two new licensees, Tint-It JSC and Advnanotech, both of whom are targeting the automotive aftermarket in Russia.

Recreational Vehicles//Motor Homes:

In September 2014, Global Caravan Technologies, Inc. unveiled the CR-1 Carbon which features the MagicView™ roofand MagicView™ windshield with SPD-SmartGlass. This special glass which totals 28 square feet, was jointly developed with Research Frontiers licensee Vision Systems. SPD nanotechnology on this vehicle allows infinitely variable control of privacy between blackout and clear, and can be controlled by any smart-phone or other smart-devices. In addition tocontrolling the level of light and glare coming into the RV, the MagicView™ SPD-SmartGlass on RVs offers many other advantages. This technology provides unsurpassed thermal insulation: SPD-SmartGlass substantially rejects solar heat from entering RVs through windows. The SPD-SmartGlass achieves its maximum dark state when the RV is parked/turned off and no power is consumed.

Vision Systems announced in January 2012 that Notin, manufacturer of motorhomes and campers, has selected VisionsSystems’ Nuance brand of SPD-SmartGlass for the skylight of Notin's Angara luxury motorhome. The SPD-Smart skylight is standard equipment on the Angara. In October 2013 at Busworld 2013, Vision Systems showcased a new sun visor using SPD-Smart light-control film technology and a light sensor to automatically and dynamically adjust the sun visor to deal with changing light and glare conditions. Vision Systems indicated that they have been working for almost two years with a major automotive OEM to test the ease of installation, reliability, design and performance of their new sun visor in real world conditions. They further indicated that customer reaction regarding the effectiveness and ease of use of this product has been excellent. The fact that this feature can be installed in the aftermarket should bring these benefits to a wider range of drivers.

Rail Transport:

In September 2014, Poma (a leading supplier of cable transport systems) showcased at Innotrans 2014 its Cabine H2 cable car. The windows in this cable transport vehicle used Research Frontiers licensee Vision Systems' "Nuance" SPD solution. Innotrans 2014 is the largest international trade fair for rail transport technology with over 160,000 visitors and is held every two years in Berlin, Germany. At this fair Bombardier, featured their "FLEXITY 2" tram platform using an electronically dimmable window produced by Vision Systems. In addition, AGC, one of the largest producers of flat glass in the world, featured its "WONDERLITE" SPD-SmartGlass train window.

Automotive Armored Glass Market:

Within the automotive market, a potentially additional sector is the armored glass market. Armored glass (sometimes referred(sometimesreferred to as “transparent armor” and “bullet-resistant glass”) encompasses the military, non-military government, and civilian markets. In addition, SPD-Smart technology in this market not only provides the benefits of light-control and UV blockage, it also adds enhancedenhances security by introducing darker tints and privacy. A number of the Company’s licensees including American Glass Products, GKN, Isoclima and Pittsburgh Glass Works are recognized industry leaders in the armored glass market.

SPD-Smart Aircraft Products:

Two aircraft manufacturers have selected SPD-Smart dimmable window products as standard equipment in upcoming new production aircraft:

Aircraft manufacturers have incorporated SPD-Smart electronically dimmable windows in mockups, with some of these mockups being exhibited at major aviation shows:

Tier 1 suppliers of cabin systems have featured SPD-Smart electronically dimmable windows in mockups, with some of these mockups being exhibited at major aviation shows:

The latest generation of SPD-Smart electronically dimmable windows provides the aircraft industry's only complete solution to managing in real-time the environmental challenges that outside conditions inflict on the cabin interior and passengers including light, glare, heat and noise.

Level of darkness:

Solar radiation onboard aircraft is extreme, and requires a dimmable window that creates an environment dark enough for passengers to sleep, even during daylight hours. Research Frontiers licensees now offer SPD-Smart windows that can be set to block over 99.96% of incoming light, to meet the needs of OEMs and their customers.

Switching speed:

Whenever a passenger wants relief from glare, SPD-Smart aircraft windows offer immediate response. Due to instant switching, an infinite number of light-transmission states can be selected by the passenger or flight crew, from clear to blackout, and any level of view-preserving tint in between.

Heat-blocking:

Aircraft cabins can become hot when the aircraft is parked because of solar heat streaming through windows. The result is an uncomfortably warm cabin upon boarding or the need to use jet fuel or auxiliary power units before boarding to cool down the cabin. SPD-Smart aircraft windows automatically switch to their maximum heat-blocking state, even when the aircraft is parked unpowered, and the cabin remains cool.

Other performance benefits:

Additional challenges stated by OEMs and their customers that have been successfully met by SPD-Smart dimmable aircraft windows include:

Aircraft Window Licensee - InspecTech Aero Service Inc.

Research Frontiers' licensee InspecTech Aero Service Inc. markets its iShade and eShade brands of SPD-Smart windows to both the OEM new production segment and aftermarket segment of the aviation industry. Building on previously announced milestones including the selection by Hawker Beechcraft Corporation of InspecTech smart window shades for aftermarket installation on King Air aircraft, and receiving a Supplemental Type Certificate (STC) for all models of King Air aircraft by the FAA, InspecTech and its strategic partners are working with a growing number of aircraft manufacturers and their customers and are selling SPD-Smart dimmable windows for fixed wing aircraft and helicopters. InspecTech’s SPD-Smart products have been installed on 33 models of helicopters and commercial, corporate, and military aircraft.

InspecTech’s SPD-Smart aircraft windows are now available for any aircraft as an aftermarket installation worldwide, and for new production aircraft. In February 2008,the transportcategory of the industry, InspecTech’s SPD-Smart products have been installed in selected areas on all Airbus A380 aircraft delivered by Airbus to Qantas Airlines to date, making SPD-Smart window shades the first and only instantly dimmable window shade flying on commercial airlines.

In 2014, InspecTech marked the 13-year anniversary of the world’s first dimmable aircraft windows. SPD-Smart iShades installed in 2001 are still in service, validating the superior durability of iShades over any other shadingsystem. InspecTech’sSPD-Smart product line has evolved as a result of working closely with aircraft OEMs, private jet owners, and the changing certification requirements of the FAA. Recent improvements include:

InspecTech has strategic partners that manufacture traditional pleated shades, combining InspecTech’s SPD-Smart iShadedimmable window with a pleated shade. The integration of InspecTech’s iShade greatly enhances the flexibility and light-control capability now available to these partners’ customers. SPD-Smart products offer a combination of performance benefits in a single system– view preservation, variable shading, complete privacy, and a broader set of interior design options with the addition of a pleated shade. Aircraft owners and operators can maintain the soft fabrics and warm colors of traditional pleated or roller shades, and benefit from the SPD-Smart film technology used in InspecTech’s iShades. Thisintegration highlights the creative potential and adaptability of SPD technology.

At the end of 2014, InspecTech’s sales of its iShade and eShade brands of SPD-Smart dimmable windows had extended to installation on 33 different aircraft models.

Aircraft Window Licensee - Vision Systems

In November 2011, licensee Vision Systems exhibited its Nuance and Noctis brands of SPD-Smart aircraft cabin windows at the Dubai Airshow in Dubai, United Arab Emirates. Nuance and Noctis SPD-Smart aerospace windows offer instant and precise light-control at every level which provides OEMs and private aircraft owners a solar protection solution that enhances flying comfort and supports fuel efficiency. These electronically dimmable aircraft and helicopter window shades and cabin dividers are impact-resistant, completely silent, available in flat and curved surfaces, and can be controlledby the cabin management system or by passengers. Vision Systems’ Noctis SPD-Smart product line offers enhanced blackout solar protection and complete privacy. Also at the November 2011 Dubai Airshow, Vision Systems announced that Bombardier Aerospace was featuring Vision Systems’ SPD-Smart aircraft windows in Bombardier’s CSeries aircraft cabinmock-up. Bombardier equipped the business class windows in its mock-up with Vision Systems’ SPD-Smart Noctis aerospace windows. Developed for the 100- to 149-seat market segment, the CSeries family of aircraft is Bombardier’s all new mainlinetransport solution.

In March 2012, Vision Systems announced that the company has invested over $750,000 to expand its existing factory in France to add a production facility dedicated to the manufacture of its SPD-Smart Nuance and Noctis aerospace and transportation windows and cabin dividers.

In April 2013, Vision Systems debuted its new SPD-Smart window with integrated electronics and controls directly on the window at the 2013 Hamburg Air Show. Developed with strategic partner Vaupell, a world leader in the production of aircraft interior subassemblies for commercial aerospace applications, it became the first dimmable window with integrated electronics and control panel directly on the aesthetically attractive window reveal.

In June 2013 at the Paris Air Show, Vision Systems announced it will open its first-ever U.S. SPD-SmartGlass factory, investing nearly $1.2 million in capital expenditures to serve customers with strong U.S. operations. The new factory was highlighted by Florida Governor Rick Scott and Vision Systems President and CEO Carl Putman, with Research Frontiers President and CEO Joseph M. Harary and others in attendance for this special announcement. This announcement of a further expansion to the United States indicates an acceleration of existing and projected business in North and South America where major aircraft OEMs and customers of Vision Systems are located, including HondaJet and Gulfstream.

In October 2013, at the 2013 AIX Americas show, Vision System’s strategic partner Vaupell announced they are offeringthe industry a complete SPD-Smart light-control window system– VisionSystems’ SPD-Smart Noctis window and controlsystem, integrated with Vaupell’s window assembly. This product offering was showcased at Vaupell’s AIX Americas booth. Vision Systems and Vaupell entered into a strategic partnership to develop and offer SPD-Smart Noctis and Nuance windowsto OEMs, including Vaupell’s longstanding customer Boeing.

In October 2013, at the 2013 NBAA, Vision Systems unveiled Energia–the world’s first self-powered dimmable window for aircraft cabins. Energia adds the many practical, technical, and financial benefits of solar power to the instant switching speed, wide range of light transmission, and relief from light, glare and heat that SPD-Smart aircraft windows already provide. Energia operates without using the aircraft’s electrical system because it integrates a transparent photovoltaiclayer that is capable of producing its own energy– from the sun, or from artificial light sources. Energia facilitates the installation of dimmable windows on new production and aftermarket aircraft. It is completely independent of the cabin’s wiring, and no modifications to the aircraft’s existing electrical system are required. Energia was developed in collaboration with Sunpartner Technologies, Vision Systems partner and the inventor and manufacturer of the transparent photovoltaic panel. In March 2014, Vision Systems announced that Energia had been selected as a finalist in the prestigious 2014 Crystal Cabin Award.

In May 2014, at the 2014 EBACE show in Geneva, Switzerland, Vision Systems unveiled a new SPD-Smart dimmable window product that offerspassengers the ability to independently control the tint of different “zones” within the samewindow. At the same show, Vision Systems announced an improvement in the optical performance of its Nuance SPD-Smart dimmable windows– a product offering wider amplitude between clear and dark.

In December 2014, at the 2014 MEBA show in Dubai, U.A.E., Vision Systems unveiled a new generation of its Energia photovoltaic autonomous SPD-Smart dimmable window– the new product is capable of producing more energy than prior the generation.

Aircraft Window Licensee - GKN Aerospace Transparency Systems acquired a

In January 2011, Research Frontiers and GKN Aerospace Transparency Systems publicly announced the expansion of the scope of the former license from us coveringagreement to include the sale of SPD-Smart armored glasswindows, window shades, interior partitions, cabin dividers and other products for vehicles (as discussed below, thisaircraft. The earlier license was also expanded in late 2010 to also include aircraft products).agreement with GKN is a world leader infocused on SPD-Smart products for armored transportation vehicles for both militaryapplications. GKN Aerospace is the world-leading supplier of cockpit transparencies and civilian vehicles. Since then,passenger cabin windows.

In October 2013, in apress release at the 2013 NBAA in Las Vegas, GKN has exhibitedstated: “In addition to the Global 7000/8000,the aircraft transparencies operation equips the Beechcraft KingAir, the Lear 35/45 and 60– and the complete Embraeraircraft family. The company’s latest passenger windows are the largest and most effective on the market and GKN Aerospace is developing new dimmable cabin management technology that will include full cabin blackout– providing passengers with new levels of comfort and environmental control duringtheir journey.”

Aircraft Window Licensee - SmartGlass International Ltd.

In 2010, Research Frontiers and SmartGlass International Ltd. announced an agreement to expand the scope ofSmartGlass International’s license. Under this agreement, SmartGlass International is authorized to manufacture and offer SPD-Smart products, including aerospace windows, worldwide. Prior to this agreement, SmartGlass International was licensed to offer SPD-Smart architectural products worldwide outside of North America.

In 2014 the Company was advised that Smart Glass International is being liquidated. Sales by SmartGlass International in this market have been negligible and we do not expect their armored SPD-Smart automotive glassliquidation to have a material impact on Research Frontiers or its revenues going forward.

Aircraft Window Licensee - Isoclima, S.p.A.

In March 2012, at various military and industry trade shows. In September 2009, GKNthe 2012 Aircraft Interiors Expo in Hamburg, Germany, Isoclima S.p.A. announced that it had been awarded a $425,000 contractIsoclima’sCromaLite brand of SPD-Smart aerospace windows made their world premier. CromaLiteis Isoclima’s SPD-Smart solar control glazing product and enables users to efficiently control the transmitted solar radiation in both the visible and the solarrange. Dr. Alberto Bertolini, Executive Director of Isoclima, commented: “Our CromaLite brandof SPD-Smart window offers many valuable light-control benefits: instant shading, glare control, UV rejection, the desire for passenger comfort, and keeping aircraft cool when they are on the ground. We are very excited by the Combating Terrorism Technical Support Office (CTTSO) of the United States Department of Defense to develop instantly dimmable SPD-Smart bullet resistant windows. GKN reported that it has successfully moved to the next phase of this government project. In October 2011, GKN exhibited its SPD-Smart armored automotive window at AUSA 2011 in Washington, D.C.reactions we have received from OEMs and is pursuing commercial opportunities for its SPD-based products.

    In September 2010, licensee Isoclima exhibited various products from its CromaLite brand of SPD-SmartGlass at Glasstec 2010, a major industry event. At the Frankfurt International Auto Show (Frankfurt, Germany), auto manufacturer Mercedes-Benz exhibited its Viano Vision Pearl luxury concept van using SPD-SmartGlass™ technology. The Viano Vision Pearl luxury van on display featured SPD-SmartGlass technology in the three glass roof panels, the rear window, and four side windows. All of these glazings were supplied by Research Frontiers’ licensee Isoclima S.p.A. In November 2011, Isoclima exhibited its CromaLite brand of SPD-SmartGlasscabin designers who are here at the 2011 Marine Equipment Trade Show (METS) (Amsterdam RAIConvention Centre, The Netherlands).Aircraft Interiors Expo, and are excited about our growing portfolio of SPD-SmartCromaLite solutions for the transportation and architectural markets.”

SPD-Smart Architectural ProductsProducts:

Research Frontiers and its licensees are currently working with multiple architectural customers to introduce SPD-Smart products including windows, skylights, partitions and doors. The architectural markets for these products are highly fragmented and in general have a high sensitivity to price. In the near term, the Company expects SPD-SmartGlass products primarily will be commercialized in specialty applications and/or sectors that value its distinctive performance attributes.attributes including fast switching speed regardless of window size, a very wide range of visible light transmission, infinite light-controlbetween its dark and clear states, and availability in unusual shapes and sizes. Research Frontiers’ end-product licensees in this sector include: Advnanotech (ADV), American Glass Products (AGP), Asahi Glass, Cricursa Cristales Curvados, ID ResearchIDResearch Pty LtdLtd. (“iGlass”i-Glass”), Innovative Glass, LTI SmartGlass, Prelco, Isoclima, Traco (a business unit of Alcoa), Mecanica de Vidros Industria E Comercio (“MDV”), and SmartGlass International Ltd.Tint-It JSC.

In March 2015, it was announced that Research Frontiers’ patented SPD-SmartGlass technology has been selected as the exclusive smart glass for the USA Pavilion at this year’s World’s Fair, Expo Milano 2015, which is expected to attract 20-30 million people from May through October. The USA Pavilion will have 312 large panels of SPD-SmartGlass manufactured under license from Research Frontiers by Isoclima S.p.A. Each panel measures approximately 1 meter by 3 meters, making the total surface area in the roof more than 10,000 square feet. This is the largest known installation of smart glass in the world for a roof application.

SPD-Smart windows, skylights, doors and partitions offer various benefits in architectural applications. During 2009, independent tests were conducted by DSET Laboratories, a division of Atlas Material Testing Technology, in accordance with ASTM and ASHRAE testing and calculation protocols. These test results demonstrate that SPD-Smart windows have excellent solar heat rejection and control capabilities.

In January 2011 SmartGlass International announced that a new study published by the Department of Engineering at the University of Cambridge concluded that SPD-Smart light-control windows are exceptionally energy efficient, reducing solar heat gain by as much as 90%. The Cambridge study indicated that the real-world testing "confirms theoretical predictions that SPD glass holds great energy saving potential and is a technology that can really help to reduce energy wastage of glass facades." In addition to SPD-Smart technology, the Cambridge study discussed alternative dynamic glazing technologies that could be used in windows (e.g. electrochromics) and reported that SPD-Smart technology did not have the disadvantages that limited the potential of these alternative technologies. For example, the study cited that an electrochromic window that is 2.4 square meters can take up to 30 minutes to change from clear to dark.

    Research Frontiers licensee SmartGlass International has announced completion of several high visibility SPD-SmartGlass installations. During February 2012, the company announced installation of SPD-SmartGlass at CERN, the European Organization for Nuclear Research, is one of the world’s largest and most respected centers for scientific research. SmartGlass International installed SPD-SmartGlass in CERN’s Globe of Science and Innovation Housing which will house a permanent exhibition and is intended to serve as a venue for a wide range of activities, conferences and other events, In February 2011, SmartGlass International announced it supplied retrofit SPD-SmartGlass to five London television studios of the Associated Press. The SPD-SmartGlass used in these projects harvested daylight when it's needed, improved occupant comfort by providing controllable solar shading during peak light conditions, and preserved views. Just prior to this installation, it was announced that SmartGlass International installed retrofit SPD-SmartGlass panels at the set of "Daybreak," the breakfast anchor program from ITV, one of the UK's largest commercial television networks. SmartGlass International also has established a division known as SmartGlass Medical which is a dedicated manufacturer of electronically switchable glass for the medical sector. In February 2011, SmartGlass International exhibited SPD-SmartGlass at Patient Safety 2011 in London, England. Patient Safety 2011 is the United Kingdom’s premier forum for issues related of the country’s National Health Service hospitals.

In November 2011, Research Frontiers licensee Innovative Glass Corporation was awarded two 2010 Crystal Achievement Awards for their smart window product line using our SPD-Smart light-control technology. In October 2010, their SPD-SmartGlass product was awarded WFX’s (Worship Facilities Conference & Expo) New Product award for Best BuildingBestBuilding System Material Product/Window. Innovative Glass also has announcedcompleted or is working on a variety of SPD-SmartGlass projects in the commercial, residential and institutional markets. JSC, Innovative Glass exhibited its SPD-SmartGlassarchitectural products at Glass Expo Northeast in Hauppauge, New York. Glass Expo Northeast is the region’s largestconference and trade show dedicated to the architectural glass and metal industry.

Research Frontiers licensee SmartGlass International has announced completion of several high visibility SPD-SmartGlass installations. During February 2012, the company announced installation of SPD-SmartGlass at CERN, the EuropeanOrganization for Nuclear Research, which is one of the world’s largest and most respected centers for scientific research.SmartGlass International installed SPD-SmartGlass in CERN’s Globe of Science and Innovation that will house a permanentexhibition and is intended to serve as a venue for a wide range of activities, conferences and other events, In February 2011, SmartGlass International announced it supplied retrofit SPD-SmartGlass to five London television studios of the Associated Press. The SPD-SmartGlass used in these projects harvests daylight when it's needed, improves occupant comfort by providing controllable solar shading during peak light conditions, and preserves views. Just prior to this installation, it was announced that SmartGlass International installed retrofit SPD-SmartGlass panels at the set of "Daybreak," the breakfast anchor program from ITV, one of the UK's largest commercial television networks.

Research Frontiers has added a number of SPD-SmartGlassnew architectural projects including:

• residential projects in Florida for hurricane-rated windows
• commercial projects in California including a high-tech R&D optics laboratory that used 24 large SPD-Smart panels, each of which are each 9 feet tall by 3 feet wide
• an upcoming high-profile project in lower Manhattan specifyinglicensees over the use of 43 SPD-Smart polycarbonate panels
• a project emphasizing energy efficient smart windows at Fort Knox, Kentucky
• retrofits of existing windows for a luxury home
• exterior windows in a recording studio
• retrofits of skylights for a nature center at a New Mexico state park
• interior partition for a television studio at a leading consumer electronics manufacturer
• doors for a commercial office
• interior partitions for developer of medical software
• interiorlast several years. In 2014, Research Frontiers added Teknoglass Solutions LLP and exterior windows for a residential project in California

     In November 2011, licensee LTI Smart Glass exhibited SPD-SmartGlass at the Build Boston 2011 architectural trade event in Boston, MA. Known as a pioneer in the processing and laminating of electrified films, the LTI Smart Glass product line includes high-performance SPD-Smart ballistic- and blast-rated glazings, in addition to conventional SPD-Smart windows, doors, skylights and partitions.

     In February 2010, ID Research Pty Ltd (IDR) (the parent company of iGlass Pty Limited)Diamond Glass. Teknoglass Solutions LLP acquired a license from Research Frontiers granting it the rightInc. to manufacturemake and sell SPD-SmartSPD-SmartGlass architectural end-productssmart window products in Australia, New Zealandthe United Kingdom and South Africa. TheRepublic of Ireland. Diamond Glass acquired a license also grants IDfrom Research Pty Ltd the worldwide rightFrontiers Inc. to manufacturemake and sell SPD emulsion and film to end-product licenseesSPD-SmartGlass architectural smart window products throughout Europe. In November of Research Frontiers. The license follows a $1.5 million grant to ID Research Pty Ltd from the Government of Victoria's Science Agenda (VSA) Investment Fund for "Electro Responsive Material Coatings for Switchable Automotive Tinted Glass." The proceeds of this investment are to upgrade and modify the company’s factory to produce SPD light-control film.

SPD-Smart Aircraft Products

     Research Frontiers’ worldwide presence in the aviation industry includes four end-product licensees: GKN Aerospace, InspecTech Aero Service, SmartGlass International (in partnership with Schott AG) and Vision Systems.2013 Research Frontiers its licensees, and strategic partners of its licensees are currently working with “transport category” (primarily large commercial aircraft) and “general aviation category” (primarily private and chartered smaller aircraft) aerospace customers to introduce SPD-Smart aircraft products including windows and partitions. The SPD aviation infrastructure is actively working in both new aircraft production and aftermarket installation programs.

Aviation Licensee InspecTech Aero Service Inc.

     Research Frontiers' licensee InspecTech Aero Service Inc. markets its iShade brand of SPD-Smart windows to both the OEM new production segment and aftermarket segment of the aviation industry. Building on previously announced milestones including the selection by Hawker Beechcraft Corporation of InspecTech smart window shades for aftermarket installation on King Air aircraft, and receiving a Supplemental Type Certificate (STC) for all models of King Air aircraft by the FAA, InspecTech and its strategic partners are working with a growing number of aircraft manufacturers and their customers and are selling SPD-Smart dimmable windows for fixed wing aircraft and helicopters. InspecTech’s SPD-Smart products have been installed on 26 models of helicopters and commercial, corporate, and military aircraft.

     InspecTech’s SPD-Smart aircraft windows are the industry’s only dynamic switchable window shades that are now available for any aircraft as an aftermarket installation worldwide, and for new production aircraft. In the transport category of the industry, InspecTech’s SPD-Smart products have been installed in selected areas on all Airbus A380 aircraft delivered by Airbus to Qantas Airlines to date, making SPD-Smart window shades the first and only instantly dimmable window shade flying on commercial airlines.

     In April 2011, InspecTech announcedit had a new modellicensee, MDV, who is targeting the architectural market in Brazil. In March of its SPD-Smart iShade dimmable window, branded iShade iQ. This model, in2013 Research Frontiers announced that it had added two new licensees, Tint-It JSC and Advnanotech, both of whom are targeting the architectural market (in addition to the light, glare and heat control made possible by its use of SPD-Smart technology, also reduces noise levelsautomotive aftermarket discussed previously) in the cabin.Russia.

     Also in April 2011, InspecTech exhibited its iShade iQ brand of SPD-Smart window at the 2011 Aircraft Interiors Expo in Hamburg, Germany. It was announced that one of InspecTech’s strategic partners, a premier aircraft pleated shade manufacturers, also promoted SPD-Smart aircraft products at this expo.Lou Martin & Associates showcased their E3 brand of SPD-Smart dimmable window developed with licensee InspecTech. This aircraft cabin window shading system integrates Lou Martin’s electromechanical pleated shade with InspecTech’s SPD-Smart iShade dimmable window.

     In October 2011, InspecTech’s SPD-Smart dimmable windows had a substantial presence at NBAA 2011 – the National Business Aviation Association’s 64th Annual Meeting and Convention. The NBAA is the year’s most significant event for the business aviation industry. This event brings together business leaders, government officials, manufacturers, corporate aviation department personnel and others involved in nearly all aspects of business aviation. InspecTech exhibited its SPD-Smart iShade aerospace window shades. Lou Martin & Associates and MSA Aircraft Products, two strategic partners of InspecTech, exhibited InspecTech’s iShade in combination with a pleated shade at their respective booths. In addition, an aircraft manufacturer unveiled an aircraft installed with InspecTech iShades.

     In November 2011, InspecTech exhibited at the NBAA trade show in Las Vegas. Strategic Partners MSA Aircraft Products, and Lou Martin & Associates, also exhibited their products that include InspecTech’s iShade dimmable windows.

     At the end of 2011, InspecTech’s sales of its iShade brand of SPD-Smart dimmable windows had extended to installation on 26 different aircraft models, and its mature SPD-Smart dimmable windows had been on in-service aircraft for ten years.

Aviation Licensee Vision Systems

     In December 2010, licensee Vision Systems exhibited its Nuance brand of SPD-Smart aircraft cabin windows at MEBA 2010 in Dubai, United Arab Emirates. Vision Systems featured an integrated display of three SPD-Smart Nuance aircraft cabin windows, and demonstrated the advanced shading and solar control capabilities available to pilots, crew and passengers when Nuance windows are used with Vision Systems’ onboard control system.

     In April 2011, Vision Systems exhibited its SPD-Smart Nuance and Noctis products at the 2011 Aircraft Interiors Expo in Hamburg, Germany. Vision Systems’ SPD-Smart Nuance aerospace windows offer instant and precise solar protection solutions that enhance flying comfort and support fuel efficiency. Nuance aircraft and helicopter window shades are impact-resistant, completely silent, available in flat and curved surfaces, and can be controlled by the cabin management system or by passengers. The SPD-Smart Noctis shading system provides control of incoming light at every level, offering on-demand blackout solar protection and complete privacy as needed. Also in April 2011, Vision Systems exhibited its Nuance and Noctis Products at the 2011 Bombardier Operators Conference and Tradeshow in Toronto, Canada.

     In May 2011, Vision Systems exhibited at the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, a premier event and the annual meeting place for the European business aviation community.

     On June 20, 2011, it was announced that at the 2011 Paris Air Show, SPD-Smart windows supplied by Vision Systems were presented by an OEM in their full cabin mockup. Later in the month, with authorization from their customer Bombardier Aerospace, Vision Systems revealed additional details. At the Paris Air Show, Bombardier showcased Vision Systems’ Noctis brand of SPD-Smart aircraft window shades in the business class section of the Bombardier C Series aircraft mockup.

     In October 2011, Vision Systems featured its SPD-Smart Nuance and Noctis aircraft and helicopter window shades at the NBAA Annual Meeting and Convention. In addition to Vision Systems exhibiting SPD-Smart products, an unnamed OEM also exhibited Vision Systems’ SPD-Smart aerospace window shades in its mock-up.

AviationLicensee GKN Aerospace Transparency Systems

     In January 2011, Research Frontiers and GKN Aerospace Transparency Systems publicly announced the expansion of the scope of the former license agreement to include the sale of SPD-Smart windows, window shades, interior partitions, cabin dividers and other products for aircraft. The earlier license agreement with GKN focused on SPD-Smart products for armored transportation applications.GKN Aerospace is the world-leading supplier of cockpit transparencies and passenger cabin windows.

     In October 2011, GKN exhibited at NBAA 2011 and showed its SPD-Smart aircraft window to select visitors to its booth.

AviationLicensee SmartGlass International Ltd.

     In 2010, Research Frontiers and SmartGlass International Ltd. announced an agreement to expand the scope of SmartGlass International’s license. Under this agreement, SmartGlass International is authorized to manufacture and offer SPD-Smart products, including aerospace windows, worldwide. Prior to this agreement, SmartGlass International was licensed to offer SPD-Smart architectural products worldwide outside of North America.

In April 2011, SmartGlass International’s SPD-Smart aircraft products were exhibited at the Aircraft Interiors Expo in Hamburg, Germany, at the booth of SmartGlass International’s strategic sales and marketing partner SCHOTT AG.SmartGlass International and the SCHOTT Group have an agreement granting SCHOTT the right to sell SmartGlass International’s SPD-Smart products. In business for more than 125 years, SCHOTT is a world leader in the specialty glass industry and brings its extensive infrastructure of sales, distribution and service – including over 50 sales offices spanning 125 countries – to SmartGlass International and its award-winning SPD-Smart product line.

SPD-Smart Marine ProductsProducts:

Research Frontiers and its licensees are currently working with marine customers to introduce SPD-Smart products including windows, doors and partitions. In December 2010, Diamond Sea Glaze Manufacturing Ltd. acquired a license from Research Frontiers granting it the right to manufacture and sell SPD-Smart marine end-products worldwide. When our patented SPD-Smart light-control technology is used in yacht windows and other products, users can quickly and precisely controlpreciselycontrol and “tune” the amount of light, glare and heat coming through their windows, while preserving their view. Diamond Sea-GlazeDiamondSea-Glaze Manufacturing commenced marketing activities for products using SPD technology during the second quarter of 2011.

In October 2011, Cheoy Lee Shipyards unveiled the Alpha, its most advanced production yacht, which is fully-equipped with the latest yacht design features including SPD-SmartGlass supplied by Research Frontiers licensee Diamond Sea Glaze. The Alpha has approximately 150 square feet of SPD-SmartGlass at various places throughout the vessel and it is the first large-scale production yacht to make such extensive use of SPD-SmartGlass.

In October 2012, Cheoy Lee Shipyards exhibited two yachts– the Alpha 76 Express and the Alpha 76 Flybridge– at the 2012 Fort Lauderdale International Boat Show. These production yachts featured Research Frontiers licensee Diamond SeaGlaze’s DiamondSmart brand of SPD-SmartGlass. In November 2012, licensee Isoclima exhibited its VebLite brand of SPD-SmartGlass for marine applications at the Marine Equipment Trade (METS) Show 2012 in The Netherlands. VebLite isIsoclima’s SPD-Smart solar control and privacy glazing product that functions like a venetian blind. It has multiple segments that provide instantly customizable shading fully controlled by the passenger and can be operated individually to create the effect of a shade being raised or lowered or moved to the side. This precisely controls where incoming heat and glare enter a yacht or boat through a window or rooflite, and also controls privacy levels.

In addition to exhibiting its SPD-Smart marine products at METS 2012, licensee Vision Systems’ SPD-Smart Nuance dimmable marine window was named the category winner in the prestigious METS 2012 Design Award METS (DAME) competition for interior equipment, furnishing, materials and electrical fittings used in cabins. DAME is considered the world’s most prestigious design competition for new marine equipment and accessories. In METS’ news release about the DAME award, it was noted “The Jury felt that Nuance is a major innovation that will benefit designers and owners greatly - with comparatively little increase in cost.”

In February 2013, licensee Isoclima demonstrated its VebLite brand of SPD-SmartGlass for marine applications at SEATEC 2013 in Italy. SEATEC 2013 is a leading international exhibition of technology and design for boats, megayachts and ships.

In November 2013, Hatteras Yachts unveiled their new flagship motor yacht, the 100 Raised Pilothouse with dual SPD-SmartGlass skylights in the galley as standard equipment at the 2013 Fort Lauderdale Boat Show.

VariGuard Business Unit:

In May of 2013 Research Frontiers announced the formation of its VariGuard business unit. This business unit allows the Company to directly address market opportunities for SPD technology outside the scope of its current license agreements or the focus of its licensees. VariGuard is a developmental activity for the Company and its revenues are currently immaterial relative to the Company’s licensing activities.

The VariGuard business unit markets and sells SPD-Smart products directly to customers for specialty uses such as the protection of artwork and light-sensitive documents in museums and private collections. The business uses an optimized fabrication designed specifically for its exhibition panels. The production of these panels is outsourced to current licensees that have experience producing SPD laminates.

Excessive light-exposure is a leading cause of irreversible damage to many precious objects, particularly works on paper, textiles and watercolor. Presently, no display system is able to provide these artifacts with any protection against visible light damage. VariGuard provides the world's first and only display panels that limit an artifact's light-exposure only to when the artifact is being viewed. This provides unequalled protection for light-sensitive artifacts by substantially reducing an artifact's overall lux-hour exposure when compared to conventional display panels.

In May 2013, VariGuard featured its panels in several framing applications at Museum Expo 2013 at the Baltimore Convention Center in Baltimore, MD.

In January 2014, the VariGuard business unit announced that Omega Moulding will distribute its patented light control SmartGlass products for frames and display cases in the United States and Canada. That month Omega Moulding showcased the benefits of VariGuard SmartGlass products at the 15th Annual West Coast Art and Frame Expo and National Conference in Las Vegas, NV.

In June 2014, VariGuard business unit announced that the Smithsonian’s National Postal Museum will use VariGuard’s panels based on SPD-SmartGlass technology at the “Behind the Badge” exhibition in Washington, DC. This exhibit showcases the work of one of the nation’s oldest federal law enforcement agencies and VariGuard panels are featured in display cases that showcase historic light-sensitive artifacts.

In November 2014, VariGuard was invited to present at a meeting of the Washington Conservation Guild which was entitled: “Outsmarting Light: SmartGlass Technology in Exhibitions”. At this meeting, results of the light conservation benefits of its light control panels at the National Postal Museum were reported. This study quantified the dramatic reduction (>86%) in light exposure that artifacts experienced in cases using VariGuard display panels versus traditional glass display panels.

In January 2015, VariGuard exhibited its display panels at a Washington Conservation Guild meeting focused on innovative new conservation technologies at the Smithsonian Institution’s S. Dillon Ripley Center in Washington, DC.

More information about VariGuard can be found on its independent website at www.VariGuard.com.

Marketing Activities and Licensee SupportSupport:

In addition to supporting the efforts of its licensees, the Company also recognizes the need to develop the SPD industry as a whole. As such, the Company continues to plan and execute complementary programs that build awareness and interest in smart glass generally and demand for SPD-Smart technologyproducts specifically. TheseIn 2014, these programs include presentations at various general industry conferences, participation in panel presentations and discussions hosted by academia, development of trade association educational materials, and presentations to architects, designers, and other influential specifiers. For example, during 2011,During 2014 the Company gavegave: (i) keynote presentations at CEDIA Expo 2011 (Indianapolis, IN), Facility Fusion 2011 (Boston, MA), Buildings New York 2011 (New York, NY), The Society of Vacuum Coaters’ Technical Conference (Chicago, IL) andat: (i) the Smart Glass at the National Building Museum (Washington D.C.). Forsixth annual 2014 IDTechEx Energy Harvesting and Storage USA Conference in Santa Clara, California and (ii) the second consecutive year, Research Frontiers exhibited2014 IDTechEx Energy Harvesting and Storage Europe Conference in Berlin, Germany. In addition, the Company presented the benefits and recent developments relating to patented SPD-SmartGlass in at NanoDays 2011 held at the Museum of Scienceglass industry’s largest trade show, Glasstec 2014 in Boston, MA in March. In May 2011, the Company exhibited SPD-SmartGlass at Glass Expo Northeast (Hauppauge, NY). During 2011, the Company gave a number of presentations to architects as an approved provider of the America Institute of Architects’ (AIA) Continuing Education System. The Company expects to participate in additional conferences and events in 2012.

     During 2011, Dr. George Elvin, Director of Green Technology Forum, featured SPD-Smart light-control technology in a series of international talks and courses on emerging green technologies. Dr. Elvin is a well-known advisor, speaker and author on emerging technologies and has an extensive academic background.Dusseldorf, Germany.

The Company’s market development department has a number of other initiatives in place. To help guide and prioritize its technical and marketing investments, the Company periodically retains outside strategic marketing and other consultants to help generate increased short- and medium-term market penetrations for each of the major markets for the Company’s light-control technology, and to provide support and guidance to the Company’s licensees worldwide.

The Company has emerged as a leading resource for market research information on the subject of smart glass. Research Frontiers lectures and presents at industry conferences in areas of energy efficiency, daylight harvesting and sustainability. The Company has published independent test data about SPD-SmartGlass, shared the results of its research studies and test data with industry and the media, posted various reference materials to the Company’s website for global dissemination, and published presentations, data and bylined articles.

Research Frontiers maintains an active role with various standards-setting organizations. These organizations, includeincluding ASTM International and the National Fenestration Rating Council (NFRC), both of which have had or continue to havehas an active committeescommittee developing standards for smart glass.smartglass.

In addition to Research Frontiers providing overarching support of licensees’ sales efforts by developing the SPD industry as a whole, leveraging its prominence as a leading resource on the topic of smart glass, and maintaining an active role with standards organizations, Research Frontiers also supports licensees’ marketing and sales efforts directly. Activities include advising and assisting with branding strategies and advertising campaigns, website development and other marketing materials, joint presentations to prospective customers, and additional support. As a focal point of interest in smart glass, resulting in many consumer and business inquiries, Research Frontiers has an active referral program to generate customer leads for its licensees.

As part of this mission to develop the industry and to support our licensees’ acquiring specific SPD projects, in March of 2009 Research Frontiers announcedcompleted the completionconstruction of the SPD-SmartGlass Design Center. Research Frontiers and its licensees have begun to host a series of events at this new facility. This Center is also configured as an interactive and energy-efficient "smart"“smart” executive office and conference room, and is located at the Company's corporate headquarters in Woodbury, New York. The SPD-SmartGlass Design Center features leading-edge SPD-Smart windows of different sizes (some floor-to-ceiling) and framing materials. It has a multi-functional electronic controller system for manual, remote, and automatic smart glassSPD-SmartGlass switching, and windows that can be controlled remotely over the internet or using a smart phone. An interactive exhibit was also competed in 2009 and expanded in 2010 adjacent to the SPD-SmartGlass Design Center to provide guests with a history of smart glass and to showcase state-of-the-art examples of SPD-Smart products. This interactive area also contains other types of smart glass, such as those using liquid crystal and electrochromic technologies, allowing users to operate and experience first-hand the differences in performance characteristics of different types of smart glass. Additional showcases of SPD-SmartGlass are being established in other geographic locations to make it convenient for even more people to experience the benefits of SPD-SmartGlass technology.

Research Frontiers’ Design Center is the only known public forum where customersdesigners, specifiers and end-users can compare performance between SPD-Smart technology and products using other light-control technologies. Research Frontiers believes that the growth of the smart glass industry will be acceleratedaccelerate as more information is made available through direct comparisons. Research Frontiers believes that SPD products will be strongly preferred over competing technologies once a direct comparison is available to potential buyers. Research Frontiers continues to encourage its competitors to participate in public forums where consumers of electronically tintable products can see the relative performance of products that are available.

Licensees of Research FrontiersFrontiers:

     Currently, theThe Company’s 39 licensees are currently categorized into four main areas: materials for making films (emulsions), film, lamination of film to glass or plastic, and end-products. Emulsion makers produce and combine the necessary materials (i.e. SPD particles and various liquids and special polymers) from which SPD-Smart films are made. The film makers coat a thin layer of emulsion between two sheets of plastic film, each of which has a transparent conductive coating. This emulsion is then partly solidified to form an SPD film that allows users to control the amount of light, glare and heat passing through this film. The end-product licensees then integrate this film into a variety of SPD-Smart products, or make electronic systems to control such SPD-Smart products. Some of these end-product licensees do their own lamination of the SPD light-control film to glass or plastic, and some outsource this lamination to other companies. The names of this growing list of licensees, and the year that their license agreements were entered into, are contained in the Exhibit section of this Annual Report on Form 10-K.

Licensees of Research Frontiers whothat incorporate SPD technology into end-products will pay Research Frontiers a royalty of 5-15% of net sales of licensed products under license agreements currently in effect, and may also be required to pay Research Frontiers fees and minimum annual royalties. Licensees whothat sell components (such as SPD emulsion or film) or lamination services to other licensees of Research Frontiers do not pay a royalty on such sale or service, and Research Frontiers will collect a royalty from the licensee incorporating these components into their own SPD-Smart end-products. Research Frontiers’ license agreements typically allow the licensee to terminate the license after some period of time, and give Research Frontiers only limited rights to terminate before the license expires. The licenses granted by the Company are non-exclusive and generally last as long as Research Frontiers’ patents remain in effect. Due to their bankruptcy filings or other termination of their general business activities or for other reasons, the Company does not believe that Polaroid Corporation, Kerros Limited, ThermoView Industries, BRG Group, SPD Technologies, SPD Systems, SmartGlass International and Film Technologies International are pursuing business activities with respect to SPD technology. Also theThe Company and licensee N.V. Bekaert, S.A mutually agreed to terminate their license agreement during 2008 for reasons unrelated to SPD technology. Similarly, the Company and SPD Control Systems agreed to terminate their license agreement in December 2014. The loss of SPD Control Systems as a licensee: (i) is not expected to have a material effect on the financial performance of the Company in the future, and (ii) resulted in a grant back to Research Frontiers of certain rights in SPD Control Systems’ intellectual property. Some of the Company’s other licensees are currently inactive with respect to SPD technology, but may hereafter become active again. To date, the Company has not generated sufficient revenue from its licensees to profitably fund its operations. All of the Company’s license agreements are included as exhibits to the Company’s periodic reports filed with the United States Securities and Exchange Commission (the “SEC”).

The Company plans to continue to exploit its SPD-Smart light-control technology by entering into additional license and other agreements with end-product manufacturers such as manufacturers of flat glass, flat panel displays and automotive products, and with other interested companies who may wish to acquire rights to manufacture and sell the Company’s proprietary emulsions and films. Although the Company believes based upon the status of current negotiations that additional license agreements with third parties will be entered into, there can be no assurance that any such additional license agreements will be consummated, or of the extent to which any current or future licensee of the Company will produce or sell commercial products using the Company’s technology or generate meaningful revenue from sales of such licensed products.

     The Company plans to continue to exploit its SPD-Smart light-control technology by entering into additional license and other agreements with end-product manufacturers such as manufacturers of flat glass, flat panel displays and automotive products, and with other interested companies who may wish to acquire rights to manufacture and sell the Company’s proprietary emulsions and films.

The Company’s plans also call for further development of its technology and the provision of additional technological and marketing assistance to its licensees to develop commercially viable SPD-Smart products, and expand the markets for such products. The Company cannot predict when or if new license agreements will be entered into or the extent to which commercial products will result from its existing or future licensees because of general economic conditions and the risks inherent in the developmental process and because commercialization is dependent upon the efforts of its licensees as well as on the continuing research and development efforts of the Company.

Competitive TechnologiesTechnologies:

The Company believes that its SPD light-control technology has certain performance advantages over other “smart glass” technologies which electrically vary the amount of light passing through windows and other smart products.

The Company believes that pricing and product performance are the two main factors critical to the adoption of smart glass products. Because the non-SPD smart glass technologies listed below do not have published, consistent pricing or cost data that can be relied upon, the Company cannot accurately report its price position relative to these other technologies. In terms of product performance, the Company believes that SPD-SmartGlass technology offers numerous advantages over other smart glass technologies as discussed below.

Variable light transmission technologies can be classified into two basic types: “active” technologies that can be controlled electrically by the user either automatically or manually, and “passive” technologies that can only react to ambient environmental conditions such as changes in lighting or temperature. One type of passive variable light transmission technology is photochromic technology; such devices change their level of transparency in reaction to external ultra-violet radiation. As compared to photochromic technology, the Company’s SPD technology permits the user to adjust the amount of light passing through the viewing area of the device, rather than the viewing area of the photochromic device merely reacting to external radiation without control by the user. In addition, the reaction time necessary to change from light to dark with SPD-Smart technology can be almost instantaneous, as compared to the much slower reaction time for photochromic devices. Also, unlike SPD technology, photochromic technology does not function well at the high and low ends of the temperature range in which smart windows and other devices are normally expected to operate, nor does photochromic technology perform well in vehicles or other enclosed settings where existing glass is blocking incoming ultra-violet light which is required for photochromic devices to operate.

Similarly, thermochromic smart windows are passive systems which change their light transmission properties as sunlight heats or cools the glass. Because the light transmission properties of thermochromic systems are not controlled by the user, their ability to adapt to the specific needs of occupants is very limited. For example, thermochromic glazings will remain tinted on hot days even when occupants desire more daylight to enter the building or when they want to preserve their views. SPD-Smart windows, which require very low amounts of power to operate, allow for much greater control of incoming light, glare and heat and can be adjusted to any level of light transmission from dark to clear at any time. In addition, SPD-Smart windows can block up to 99.5% of incoming light, a level many times darker than thermochromic systems. The added advantage offers much higher levels of privacy and control over incoming solar energy. Companies involved in thermochromic technology include Pleotint, Suntek and Ravenbrick.

Active, user-controllable technologies, sometimes referred to as “smart” technologies, are generally more useful than passive technologies because they allow the user to actually control the state of the window. This control is achieved with a manual adjustment, or automatically when coupled with a timer or sensing device such as a photocell, motion detector, thermostat or other intelligent building system. There are three main types of active devices which are compared below:

• ●	Electrochromic devices (EC)
  ●	Liquid crystal devices (LC)
  ●	Suspended-particle devices (SPD)

  
  

  Electrochromic devices (EC)Technology:

• Liquid crystal devices (LC)
• Suspended-particle devices (SPD)

Electrochromic Technology: Electrochromic windows and rear-view mirrors use a direct current voltage to alter the molecular structure of electrochromic materials (which can be in the form of either a liquid, gel or solid film) causing the material to darken. When compared to electrochromic devices, SPD technology is expected to have numerous potential performance and manufacturing advantages, including some or all of the following:

• faster response time, especially for larger glazings which can take many minutes to switch
• ability to precisely “tune” an infinite number of intermediate light-transmission states
• consistent and uniform switching speed regardless of size of glazing area
• more reliable performance over a wider temperature range 
• higher contrast ratios and the capability of achieving darker shaded states for large area product applications
• unpowered state is dark, maximizing solar heat gain benefits when the room, office or vehicle is not in use
• lower electrical current drain
• higher estimated battery life in applications where batteries are used
• no “iris effect” (where light transmission changes first occur at the outer edges of a window or mirror and then work their way toward the center) when changing from clear to dark and back again
• SPD technology is a film-based technology that can be applied to plastic as well as glass, and which can be applied to curved as well as flat surfaces
• available in single panels for retrofitting existing windows, skylights and doors

Many companies with substantially greater resources than Research Frontiers such as 3M, Gentex Corp., Pilkington, PPG Industries, Saint-Gobain Glass and other large corporations have pursued or are pursuing projects in the electrochromic area. While some of these companies have reportedly discontinued or substantially curtailed their work on electrochromics due to technical problems and issues relating to the expense of these technologies, at least four companies (Gentex, PPG Industries, View (formerly known as Soladigm), and Sage Electrochromics, Soladigm)Electrochromics) are currently working to commercialize electrochromic window products. In 2010,May 2012, Saint-Gobain acquired a 50% equity stake in Sage Electrochromics and mergedcombined all of itstheir respective electrochromic manufacturing and R&D efforts into Sage Electrochromics.developmental efforts.

Liquid Crystal TechnologyTechnology::

To date, the main types of liquid crystal smart windows have been produced by Taliq Corp. (a subsidiary of Raychem Corp. which has since discontinued its liquid crystal operations and licensed its technology to others)., Asahi Glass Co., Nippon Sheet Glass, Saint-Gobain Glass, Polytronix, Inc., DMDisplays, iGlass Projects Pty Limited, Polytronix, Inc., DMDisplays, and 3M (which has also reportedly discontinued its liquid crystal film making operations). The first threefour companies listed above are also licensees of Research Frontiers Inc. for SPD-Smart technology. Liquid crystal windows only change from a cloudy, opaque milky-white to a clear state, are hazy when viewed at an angle and have no useful intermediate states. As compared to liquid crystal windows, SPD smart windows are expected to have some or all of the following advantages:

• have less haze
• provide shading without loss of view
• operate over a wider temperature range
• use less power
• have higher contrast ratios
• absorb and block more light, rather than simply scatter it
• permit an infinite number of intermediate states between a transparent state and a dark blue state, rather than being just two states.
• offer superior solar heat gain control

In the flat panel display market, further development (such as the achievement of faster switching speeds sufficient for full-motion video applications) is required if the Company expects to compete against display technologies that are currently being used commercially such as liquid crystal displays (“LCDs”) and organic light-emitting diodes (“OLEDs”). Some of the advantages that SPD displays might have include the ability to make displays without using sheet polarizers or alignment layers, and lower light loss and a corresponding reduction in backlighting requirements. However, such products need additional product design, engineering or testing before an evaluation of the commercial potential of such SPD-SmartGlass products can be determined and when, or if, its licensees may begin to penetrate the flat panel display market.

LCDs and other types of displays, liquid crystal windows, as well as electrochromic self-dimmable rear-view mirrors, are already on the market, whereas products incorporating SPD technology (as well as electrochromic windows) have only begun to appear in the marketplace. Therefore, the long-term durability and performance of SPD-Smart displays have not yet been fully ascertained. The companies manufacturing LCD and other display devices, liquid crystal windows, and electrochromic self-dimmable rear-view mirrors and windows, have substantially greater financial resources and manufacturing experience than the Company. There is no assurance that comparable systems having the same advantages of the Company’s SPD technology could not be developed by competitors at a lower cost or that other products could not be developed which would render the Company’s products difficult to market or otherwise render our products obsolete.

Research and DevelopmentDevelopment:

As a result of the Company’s research and development efforts, the Company believes that its SPD technology is now, or with additional development will become, usable in a number of commercial products. Such products may include one or more of the following fields: “smart” windows, doors, skylights and partitions; variable light transmission eyewear such as sunglasses and goggles; self-dimmable automotive sunroofs, sunvisors, and mirrors; display cases/frames; and instruments and other information displays that use digits, letters, graphic images, or other symbols to supply information, including scientific instruments, aviation instruments, automobile dashboard displays and, if certain improvements can be made in various features of the Company’s SPD technology that increases switching speed to the levels needed for video applications, portable computer displays and flat panel television displays.

Even though the Company’s SPD technology has much faster switching speeds than electrochromic technology, current switching speeds are not fast enough for such video applications. The Company believes that most of its research and development efforts have applicability to products that may incorporate the Company’s technology. At its current state of development, the Company’s technology has been judged sufficiently advanced by various of its licensees and their customers for them to proceed with the development, introduction and sale of SPD-Smart products. However, the Company is continuously investing in research and development because it believes that further improvements will result in accelerated and increased market penetration. The Company intends to continue its research and development efforts for the foreseeable future to improve its SPD light-control technology and thereby assist our licensees in the product development, sales and marketing of various existing and new SPD-Smart products.

During the past few years, and during the past year in particular, the Company and/or its licensees have made significant advances relating to materials to enable (1) improved stability of SPD emulsions, (2) a wider range of light transmission, (3) improved film adhesion and cohesion and (4) increased durability of SPD films/laminates.laminates, and (5) cost reductions. These advances have resulted in two patents being issued to the Company by the US patent office and the corresponding foreign patent applications are pending.

The Company has devoted most of the resources it has heretofore expended to research and development activities with the goal of producing commercially viable SPD products and has developed working prototypes of SPD-Smart products for several different applications, with primary emphasis on smart windows for various industries. In addition to working with the Company’s licensees, Research Frontiers has also expanded its efforts to also work directly with some of our licensees’ major customers.

Research Frontiers’ main goals in its research and development include:

• developing wider ranges of light transmission and quicker switching speeds
• developing different colored particles
• reducing the voltage required to operate SPDs
• obtaining data and developing improved materials regarding environmental stability and longevity
• quantifying the degree of energy savings expected by users of the Company’s technology including the degree that SPD technology can control heat and its contribution to energy savings directly and through daylight harvesting strategies in sustainable building designs.
• Continually striving to improve the performance and reducing material/production costs associated with making SPD-Smart products

Excluding non-cash expenses of approximately $108,000, $170,000,$219,000, $648,000, and $26,000,$143,000, associated with the grant of stock options and restricted stock to the Company’s technical personnel, Research Frontiers incurred approximately $1,282,000, $1,235,000,$1,403,000, $1,555,000, and $1,524,000,$1,529,000, during the years ended December 31, 2011, 2010,2014, 2013, and 2009,2012, respectively, for research and development. Research Frontiers plans to engage in substantial continuing research and development activities to invest in future improvements in SPD light-control technology and to expand for its licensees the capabilities of SPD-Smart technology and the markets for SPD-Smart products.

Patents and Proprietary InformationInformation:

Research Frontiers continues to make substantial investments to develop, license and protect its intellectual property position. The Company has 3826 United States and 250158 foreign patents in force. The Company’s United States patents expire at various dates from 20122015 through 2025,2033, while its foreign patents expire at various dates from 20122015 through 2026. 2028.

The Company has current US and foreign patent applications that, if granted, would add approximately 250a significant number of additional patents to its portfolio. The Company believes that its SPD light-control technology is adequately protected by its patent position and by its proprietary technological know-how. However, the validity of the Company’s patents has never been contested in any litigation. The Company also possesses know-how and relies on trade secrets and nondisclosure agreements to protect its technology. The Company generally requires any employee, consultant, or licensee having access to its confidential information to execute an agreement whereby such person agrees to keep such information confidential.

    Research Frontiers’ licensees have directed the Company not to reveal aspects of their activities or those of their customers, which limits the Company’s ability to disclose certain information.

Rights PlanPlan:

In February 2003,2013, the Company’s Board of Directors adopted a Stockholders’ Rights Plan (the “Rights Plan”) and declared a dividend distribution of one right (a “Right”) for each outstanding share of Company common stock to stockholders of record at the close of business on March 3, 2003. 2003 (“Record Time”) and authorized the issuance of one Right in respect of each share of Common Stock issued after the Record Time and prior to the Separation Time.

“Separation Time” shall mean the earlier of the Close of Business on the tenth Business Day (or such later date as the Board of Directors may from time to time fix by resolution adopted prior to the Separation Time that otherwise would have occurred) following but not including (i) the date on which any Person commences a tender or exchange offer that, if consummated, would result in such Person’s becoming an Acquiring Person, and (ii) the date of the first event causing a Flip-in Date to occur; provided that if any tender or exchange offer referred to in clause (i) of this paragraph is cancelled, terminated or otherwise withdrawn prior to the Separation Time without the purchase of any shares of Common Stock pursuant thereto, such offer shall be deemed, for purposes of this paragraph, never to have been made.

Any action we take to protect intellectual property rights could be costly and could require significant amounts of time by key members of executive management and other personnel. Research Frontiers entered into a contingency agreement with its legal proceedings pending by or againstcounsel regarding this matter that reduces the Company requiredCompany’s exposure to be reported underthe costs associated with the prosecution of this Item 3.litigation.

ITEM 4.MINE SAFETY DISCLOSURES

N/A

PART II

ITEM 5.

MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUERAND ISSUER PURCHASES OF EQUITY SECURITIES

(a)Market Information

	(1)		The Company’s common stock is traded on the NASDAQ Capital Market under the symbol “REFR”. As of March 13, 2012,10, 2015, there were 18,907,55523,974,646 shares of common stock outstanding.
	(2)		The following table sets forth the range of the high and low selling prices (as provided by the National Association of Securities Dealers) of the Company’s common stock for each quarterly period within the past two fiscal years:

	Quarter Ended	Low		High
	March 31, 2010	2.61		3.76
	June 30, 2010	2.79		4.70
	September 30, 2010	3.63		4.91
	December 31, 2010	3.95		5.29
	March 31, 2011	6.70		6.88
	June 30, 2011	4.53		4.87
	September 30, 2011	3.50		3.78
	December 31, 2011	3.25		3.51

These quotations may reflect inter-dealer prices, without retail mark-up, mark-down, or commission, and may not necessarily represent actual transactions.

(b)Approximate Number of Security Holders

As of March 9, 2012,6, 2015, there were approximately 436400 holders of record of the Company’s common stock and the closing price of our common stock was $3.56$[5.37] per share. The Company estimates that there are approximately 6,6546,900 beneficial holders of the Company’s common stock.

(c)Dividends

The Company has not declared or paid cash dividends on its common stock for the two most recent fiscal years and does not expect to declare or pay any cash dividends in the foreseeable future. There are no restrictions on the payment of dividends.

(d)Issuer Purchases of Equity Securities

None.

ITEM 6..SELECTED FINANCIAL DATA

The following table sets forth selected data regarding the Company’s operating results and financial position. The data for fiscalforfiscal years 2011, 20102014, 2013, and 20092012 should be readberead in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and our audited consolidated financial statements and notes thereto, which are contained in this Annual Report on Form 10-K.