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Related Party
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party

Note 11. Related Party

 

Effective June 4, 2023, the Chairman and CEO of Gauzy, Ltd. (“Gauzy”), one of the Company’s licensees, joined the Board of the Company. Gauzy’s license agreement has been in effect since September 17, 2017 and provides for minimum annual royalties and earned royalties relating to sales of SPD-SmartGlass architectural window products. Because the Company collects a 10-15% percentage royalty from the higher-priced end product sales by Gauzy’s customers purchasing their SPD-Smart light control film, under its license agreement with Gauzy, the Company does not collect a royalty on sales by Gauzy of SPD-Smart light control film to these licensee customers. In addition, the Company’s licensee Vision Systems, Inc. (“Vision Systems”) is a 100% owned subsidiary of Gauzy. For the nine months ended September 30, 2024 and 2023, total fee income related to Gauzy and Vision Systems represented 12% and 23%, respectively, of the Company’s total fee income. For the three months ended September 30, 2024 and 2023, total fee income related to Gauzy and Vision Systems represented 10% and 21%, respectively, of the Company’s total fee income. In addition, as of September 30, 2024 and December 31, 2023, the Company’s accounts receivable from Gauzy and Vision Systems represented 6% and 8%, respectively, of the Company’s total royalty receivables, before reserves.