SolarWindow Technologies Inc. (OTCMKTS:WNDW) Takes A Step Back
SolarWindow Technologies Inc. (OTCMKTS:WNDW) lost all of its progress from the previous session yesterday, as the hype surrounding its newest press release started to dissipate.
Talking big can get you attention on the OTC Markets. Many companies and investors know this fact, and often exploit it to their own ends. However, it is also a fact that once the hype that the bold claims have caused tends to dissipate quickly and the ticker tends to fall back down, if it has nothing else of substance holding it up.
WNDW mentioned that it is in a market that may service millions of commercial buildings across the US and the market reacted to that. Then, when people went to check if the company’s boasts actually have any merit, they saw this in its report for the quarter ended May 31, 2015:
- Cash – $69 thousand
- Current assets – $247 thousand
- Current liabilities – $2.4 million
- NO REVENUES EVER
- Net loss – $1.5 million
No wonder the ticker took an immediate step back after the dust started to settle. Even superficial due diligence makes WNDW appear like just another loud boaster that has failed to deliver on any account.
Looking at the company’s share structure and dilution history, one would get the impression that at least investors can rest assured that investor value is not being poisoned by rampant dilution. Well, that may have been the case in the past, but page 9 of the report we mentioned a paragraph ago tells another tale.
On October 7, 2013 WNDW borrowed $3 million to finance its operations. That debt still hasn’t been paid off, and although it has been restructured on occasion, it still converts into warrants for the purchase of WNDW stock at fixed prices nearly half as low as WNDW‘s current price per share. An additional $600 thousand worth of debt that converts into shares at a fixed price of exercise price of $1.20 was also taken on on March 4, 2015.
Investors are advised to pay attention to the detail that in spite of the fact that WNDW‘s financials are horrible, it doesn’t look like it has anything but sporadic bursts of hype going for it and it is swimming in toxic funding, it has a market cap of $62.7 MILLION dollars.
Suffice it to say that that is a ridiculous market evaluation for a company with no revenues or any other kind of achievements to date. The ticker is currently hanging on a precariously high perch – one from which noteholders may easily knock it down. This is why it would not be at all surprising to see WNDW suffer severe corrections in the near future.
