10-Q: SolarWindow Technologies Reports Q2 2025 Results: Losses Widen Amid Increased R&D and Business Development

SolarWindow Technologies reports increased losses for Q2 2025 due to higher operating expenses, despite having sufficient cash for the next twelve months.

Summary

• SolarWindow Technologies, Inc. reported its financial results for the quarter ended February 28, 2025.
• The company has not generated any revenue since inception and has sustained recurring losses and negative cash flows from operations.
• The net loss from continuing operations increased to $630,044 for the three months ended February 28, 2025, compared to $441,560 for the same period in 2024.
• The net loss from continuing operations increased to $1,181,136 for the six months ended February 28, 2025, compared to $941,062 for the same period in 2024.
• The company's operating expenses increased, primarily due to higher selling, general, and administrative expenses, as well as research and development costs.
• As of February 28, 2025, the company had $3,797,520 in cash and working capital of $3,573,448.
• The company believes it has sufficient cash to meet its funding requirements over the next twelve months.
• The company will need to raise additional capital to commercialize its electricity-generating coatings and application methodology.
• The company is a party to a Cooperative Research and Development Agreement (CRADA) with the U.S. Department of Energy's National Renewable Energy Laboratory (NREL), which has been extended to December 31, 2025.
• The company is working to have a Cease Trade Order (CTO) revoked by the British Columbia Securities Commission (BCSC).

Sentiment

Score: 4

Explanation: The sentiment is neutral to slightly negative. While the company has sufficient cash for the next twelve months and is making progress with its CRADA, it continues to incur losses and requires additional funding for commercialization. The ongoing Cease Trade Order also adds uncertainty.

Positives

• The company believes it has sufficient cash to meet its funding requirements over the next twelve months.
• The Cooperative Research and Development Agreement (CRADA) with the National Renewable Energy Laboratory (NREL) has been extended to December 31, 2025.
• The company received payment of funds related to an equipment deposit during the three months ended February 28, 2025.

Negatives

• The company has not generated any revenue since inception and has sustained recurring losses and negative cash flows from operations.
• The net loss from continuing operations increased for both the three and six months ended February 28, 2025.
• The company will need to raise additional capital to commercialize its electricity-generating coatings and application methodology.
• The company is subject to a Cease Trade Order (CTO) from the British Columbia Securities Commission (BCSC).

Risks

• The company's ability to continue as a going concern is dependent on raising additional capital or generating positive cash flow.
• The company's product development programs involve ongoing R&D and product development efforts, and the commitment of significant resources to support the extensive invention, design, engineering, testing, prototyping, and intellectual property initiatives carried-out by our contract engineers, scientists, and consultants.
• There is no assurance that the company will successfully be able to design, develop, manufacture, or sell any commercial products in the future.
• The actual cost and time required to commercialize the company's SolarWindow technology may vary significantly depending on various factors.
• The company is actively seeking additional technologies and product licensing, joint venture arrangements, and manufacturing process integration relationships with commercial partners and industry; and organizations which have established technical competencies, market reach, and mature distribution networks in the solar PV, building-integrated PV, and alternative and renewable energy market industries.
• The company is working to have a Cease Trade Order (CTO) revoked by the British Columbia Securities Commission (BCSC), and there is no assurance that the BCSC will grant the revocation.

Future Outlook

Based upon current and near-term anticipated level of operations and expenditures, management believes that cash on hand should be sufficient to enable the company to continue operations over the next twelve months following the issuance of this Quarterly Report on Form 10-Q; however, additional financing will be necessary to meet capital requirements and continue to operate.

Management Comments

• Management anticipates further expanding these activities, and incurring additional expenses related thereto.

Industry Context

The company operates in the renewable energy sector, specifically focusing on building-integrated photovoltaics (BIPV). The company is actively seeking additional technologies and product licensing, joint venture arrangements, and manufacturing process integration relationships with commercial partners and industry; and organizations which have established technical competencies, market reach, and mature distribution networks in the solar PV, building-integrated PV, and alternative and renewable energy market industries.

Comparison to Industry Standards

• It is difficult to compare SolarWindow Technologies directly to industry standards due to its unique technology and pre-revenue stage.
• Companies like First Solar, SunPower, and Tesla (Solar) are established players in the solar industry, but their focus is primarily on traditional solar panels rather than transparent coatings.
• BIPV companies such as Onyx Solar and Saint-Gobain are more directly comparable, but detailed financial information for these companies is not always readily available.
• SolarWindow's reliance on R&D and partnerships is a common strategy for early-stage technology companies in the renewable energy sector.

Related Party Transactions

• Joseph Sierchio, one of the Company's directors, has maintained his role as the Company's general counsel since its inception, and, beginning in August 2020, as Principal of Sierchio Law, LLP pursuant to an engagement letter which provided for an annual fee of $ 175,000 , payable in equal monthly installments, in exchange for general counsel services, and the reimbursement of expenses.
• Beginning November 2023, Mr. Sierchio began serving as general counsel on an hourly basis at the rate of $750 per hour.
• Fees for legal services billed by Sierchio Law, LLP totaled approximately $75,000 and $80,685 for the three months ended February 28, 2025 and February 29, 2024, respectively, and $136,700 and $124,435 for the six months ended February 28, 2025 and February 29, 2024, respectively.
• As of February 28, 2025, the Company recognized a related party payable to Sierchio Law, LLP of $97,500, including $95,000 related to legal services and $2,500 related to the quarterly board fee for the three months ended February 28, 2025.
• As of August 31, 2024, the Company recognized a related party payable to Sierchio Law, LLP of $40,225, including $37,725 related to legal services and $2,500 related to the quarterly board fee for the three months ended August 31, 2024.

Stakeholder Impact

• Shareholders: Continued losses and the need for additional capital may dilute existing shareholders' equity.
• Employees: The company's ability to continue operations and fund R&D efforts impacts job security and potential for growth.
• Customers: The development and commercialization of SolarWindow products could provide innovative renewable energy solutions.
• Suppliers: The company's R&D activities and potential commercialization could create opportunities for suppliers of materials and equipment.
• Creditors: The company's ability to repay debts depends on its ability to raise capital or generate positive cash flow.

Next Steps

• Continue research and development efforts under the NREL CRADA.
• Seek additional technologies and product licensing, joint venture arrangements, and manufacturing process integration relationships with commercial partners.
• Pursue the revocation of the Cease Trade Order (CTO) from the British Columbia Securities Commission (BCSC).
• Raise additional capital through private or public equity financings.

Key Dates

Keywords

SolarWindow Technologies, financial results, net loss, operating expenses, research and development, cash flow, CRADA, NREL, CTO, BCSC, LiquidElectricity Coatings, SolarWindow, electricity-generating coatings, photovoltaic, renewable energy