0001493152-26-021790
SEC filingRevenue fell 75.6% due to a non-recurring license fee, while operating losses widened as cost reductions only partially offset the decline.
Revenue for Q1 2026 was $136K, down 75.6% from $560K in Q1 2025. Management attributes this decline primarily to a large upfront fee recognized under ASC 606 from a new license agreement signed in Q1 2025 that did not recur in the current period. This highlights the lumpy nature of the company's revenue, which depends on the timing of new license signings and upfront payments. Excluding such one-time items, the underlying royalty stream from automotive and architectural licensees remains modest.
Management expects revenue to increase as new car models and other products using SPD-SmartGlass technology are introduced. The company plans to use its cash for R&D on SPD light valves, expanded marketing, and working capital. Key risks include dependence on automotive OEM adoption rates, the timing of new license agreements, and the ability to control costs while investing for growth.