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SolarWindow Technologies Inc (OTCMKTS:WNDW) Needs To Deliver

SolarWindow Technologies Inc (OTCMKTS:WNDW) Needs To Deliver
Written by
Alex Carlson
Published on
March 4, 2016
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InsidrFinancial

Source: solarwindow.com

SolarWindow Technologies Inc (OTCMKTS:WNDW) has been one of the most talked about names on the OTC markets. We have been following the stock for quite some time and like the stock's volatility, liquidity and timely press releases. The company has come under attack from short sellers and we here at Insider Financial have defended the company in the past.

The problem we are having now is that we are starting to question the company's progress after the most recent press release. The press release said that SolarWindow had entered into Phase 3 of its technology agreement with the Department of Energy. It stated:

"SolarWindow Technologies, Inc. (WNDW), the leading developer of first-of-its-kind transparent electricity-generating coatings for glass and flexible plastics, today announced that it has entered into Phase III of its Cooperative Research and Development Agreement (CRADA) with the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL). The primary development goal of the Agreement is the commercialization of SolarWindow™ products."

The stock rallied over $1 on the news as investors got excited thinking that the company was one step closer to commercialization. However, on closer examination and a Google search of "Phase 3 Cooperative Research and Development Agreement" returns several government handbooks. One of which says that there are 5 Phases to the CRADA process. In other words, Phase 3 still means the company is a long way off from realizing commercialization in cooperation with the DOE. After investors realized this, the stock sold off and came right back down again.

Furthermore, when SolarWindow was New Energy Technologies, the original agreement was announced March 30, 2011. The company has been working with the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) for 5 years and has now just entered Phase 3. At the rate the company is going, it will be 4 more years before it gets to Phase 5.

To get to Phase 5, SolarWindow will need to raise more money. We believe the company probably needs $25 million to achieve commercialization. Usually a company like SolarWindow will enter into an agreement with an investment bank. However, we have not seen such an announcement. Instead, SolarWindow has launched a direct-to-investors capital raise using the Securities and Exchange Commission’s (SEC) recently enacted Rule 506(c). We really don't think this approach will generate the funds necessary to advance the company's commercialization efforts.

The reality is that SolarWindow and its management team need to start delivering. We want to see results and not press releases. Last month, CEO John Conklin issued a press release that basically said SolarWindow will solve the world's energy crisis, cure cancer, and put a man on Mars. Some highlights include:

Until now, however, no technology has been able to convert those solar rays into electricity like SolarWindow™, making it possibly the single greatest breakthrough technology in clean energy ever.

Our transparent window technology is so revolutionary that it has been presented before members of the U.S. Congress, has won awards and received recognition in many well-known publications.

Unlike any product before, according to validated modeling, SolarWindow™ produces 50 times greater energy than rooftop panels, has a one year modeled payback and even works in the shade.

SolarWindow™ could turn entire buildings into power generators and, as CNBC stated, “give our cities the ability to harvest their own energy needs.”

This press release looks to have been written not by the company, but instead by a financial copywriter. There are no facts, just pie in the sky potential. What we want to see is facts because it's the company's potential that has drawn our interest in WNDW. Just have a look at what the company does:

SolarWindow Technologies, Inc. is a developer of next generation, transparent electricity-generating SolarWindow coatings. SolarWindow coatings generate electricity on see-through glass and flexible plastics with colored tints popular to skyscraper glass. Unlike conventional systems, SolarWindow can be applied to all four sides of tall towers, generating electricity using natural and artificial light conditions and even shaded areas. SolarWindow uses organic materials, which are dissolved into liquid, ideal for low-cost high-output manufacturing; and is the subject of a patent pending technology.

The company’s Proprietary Power Production & Financial Model (Power & Financial Model) uses photovoltaic (PV) modeling calculations that are consistent with renewable energy practitioner standards for assessing, evaluating and estimating renewable energy for a PV project. The Power & Financial Model estimator takes into consideration building geographic location, solar radiation for flat-plate collectors (SolarWindow irradiance is derated to account for 360 degree building orientation and vertical installation), climate zone energy use and generalized skyscraper building characteristics when estimating PV power and energy production, and carbon dioxide equivalents. Actual power, energy production and carbon dioxide equivalents modeled may vary based upon building-to-building situational characteristics and varying installation methodologies.

WNDW is indeed an exciting name on the OTC markets and it's a great one for traders. We want to see the company succeed, but we want to see results. As we like to say, show us it works. Show us what can be done. Show us a path to commercialization. Show us that the company can and will raise the money needed to get to the next level. Quit with the press releases written by a financial copywriter. That strategy is no longer working and the company risks losing any and all credibility with the investing public if it keeps this up. We will be updating Insider Financial as soon as we know more. For continuing coverage on WNDW and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!

Disclosure: We have no position in WNDW and have not been compensated for this article.

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