Dragni Dragnev

Solarwindow Technologies Inc. (OTCMKTS:WNDW) Crashes After Reporting

by Dragni Dragnev July 15, 2016

Solarwindow Technologies Inc. (OTCMKTS:WNDW, WNDW message board) had been fluctuating around the $4 mark ever since March – but now that its latest 10-Q is out, it looks like that state of affairs will suffer some brutal corrections.

WNDW's latest 10-Q hit the web on July 12, just before the market closed that day. This gave investors plenty of time to look at the report and decide to abandon ship first thing in the morning. Why?

Well, suffice it to say that once more, the financial section looked rather uninspiring:

  • Cash and cash equivalents - $123 thousand
  • Total current assets - $572 thousand
  • Total current liabilities - $2.5 million
  • Quarterly net loss – $2 million

One could even go as far as to call this set of numbers a strict downgrade from what the company gave investors last time – although whether or not that is indeed the case remains debatable.

What is not up for debate is whether or not toxic funding is still an issue for WNDW, because in spite of the fact that just over a million new shares have been issued in the last reported quarter, the potential damage to investor value conversions and warrants can do seems immeasurable.

About half a million of the company's current outstanding debt is in the form of notes that could be transformed into shares of its common stock at a 15% discount. That may not seem too bad, but this is where the story begins rather than where it ends.

There are currently millions of warrants for the purchase of WNDW shares outstanding that could be exercised by their holders to buy shares of the company's common stock at rates as low as $1.37.

What boggles the mind is that most of this information is not really new – WNDW has been a notable example of idle underachiever for a long time now. So how did it manage to maintain a market cap of more than $110 MILLION for months and months on end?

There seems to be no reasonable explanation for this – but now that the investors' attention has been drawn to the company's shortcomings, the glaring discrepancy in question is swiftly being addressed.

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