Solarwindow Technologies Inc (OTCMKTS:WNDW) Closes Flat
Yesterday the stock of Solarwindow Technologies Inc (OTCMKTS:WNDW) failed to move in either direction finishing the session at the exact same closing price as the previous day – $2.58 per share. It seems that the ticker is stabilizing but the company still remains severely over-inflated with a current market cap of $67.9 million.
Such valuations simply cannot be justified by the underlying fundamentals. The financial report for the quarter ended May 31 revealed that back then WNDW had:
• $69 thousand cash
• $247 thousand total current assets
• $2.4 million total current liabilities
• ZERO revenues
• $1.5 million net loss
For the nine-month period WNDW reported net loss of more than $6.3 million. The financials are indeed discouraging but the picture gets even grimmer when you add the $1.45 million convertible promissory note and the 8.8 million warrants with an exercise prices ranging from $0.64 to $1.37 that were outstanding as of May 31. In July 921,875 shares were issued at $0.83 each through the exercise of Series H Warrants.
Despite all of the red flags when WNDW announced that a webcast will be hosted on August 20 investors rushed towards the stock in anticipation. The excitement culminated on the day of the webcast when the ticker almost reached 4 dollar per share. Unfortunately the company’s presentation failed to live up to the hype and investors were left bitterly disappointed. The first-ever demonstration of WNDW‘s electricity generating coating that can be applied on glass and flexible plastics turned out to be a pre-recorded video containing little useful information and a lot of pretty imagery.
The commercialization plan disclosed by WNDW also did its part in driving investors away. According to the company their product will become market ready in the next 28 months.
The lackluster financials, the possibility of millions of shares seeing the light of day at prices many times lower than the current market price, and the fact that WNDW won’t be generating any sales for quite a while longer could cause the stock to plunge even lower down the chart. Even if you truly believe in the potential of the technology use caution when committing to any trades.
