Shares Of SolarWindow Technologies Inc (OTCMKTS:WNDW) Come Crashing Down

Shares of SolarWindow Technologies Inc (OTCMKTS:WNDW) got totally destroyed after the company filed its latest 10-Q. We said last month that shares remained range bound as investors awaited news on the company's efforts to achieve commercialization of its solar window technology. It appears that the latest filing has caused some investors to get nervous and dump their shares. WNDW has also been a favorite of the shorts and no doubt they piled on as well. Now investors are asking if it's time to abandon ship or buy the dip?We'll admit that the 10-Q was not great, especially when you consider that SolarWindow's market cap was over $100 million before it was filed. The filing showed just $123,541 in cash, $596,994 in total assets, $1,038,153 in convertible notes, $4,166,917 in total liabilities, and stockholder's equity of negative $3,569,923. The company has yet to generate a single dollar in revenues and posted a net loss of $2,099,885 in the latest quarter.Since inception, the company has burned through over $34 million in investor capital with the goal to bring its technology to life. Nearly all of this money has come from one man - WNDW's largest individual shareholder Harmel Rayat. Mr Rayat owns nearly 74% of the company and has been the company's main backer and kept it afloat for over 10 years. Obviously, he's a financier who believes in SolarWindow and has put his money where his mouth is. This is in spite of shortsellers relentlessly attacking both Mr Rayat and SolarWindow Technologies.The key for investors to understand is that the 10-Q does not take into account the company's recent capital raise, which was completed last month. The 10-Q represents only the period before May 31. Last month, SolarWindow closed a $3,000,000 second tranche of its two tranche direct-to-investors capital raise efforts. The first tranche of the company’s financing efforts in the amount of $1,367,100 closed on March 31, 2016. A total of 28 persons, all of whom were accredited investors, participated in the capital raise; most were existing shareholders of the company at the time the individual subscribed for additional shares. This is certainly a sign of commitment when you consider the average investor put up $155k and all were existing shareholders. WNDW certainly has one of the most loyal shareholder bases among all OTC companies.The company intends to utilize the proceeds from the Self-Directed Financing to build strategic partnerships with glass, energy, chemical, and building industries, achieve specific development objectives required to commercialize SolarWindow, and engage capital markets to attract both retail and institutional investors. CEO John Conklin said:

“SolarWindow is privileged to have all of our legacy and new shareholders stand by our side as we drive forward with the development of SolarWindow transparent electricity-generating coatings. It has always been a priority of ours to provide our shareholders the opportunity to invest in additional shares at the same price as our company’s major shareholders. This capital raise significantly strengthens our company’s commitment to achieving commercialization. The $4,367,100 capital dramatically enhances the company’s ability to achieve necessary milestones leading to the ultimate goal of commercializing SolarWindow.”

Currently trading with a market cap of $62 million, shares of WNDW have corrected almost 50% in the matter of two trading days. We believe this is an overreaction by the market. No doubt Mr Rayat has participated in the latest funding for the company and ensuring that WNDW remains well-funded. That tells us that we could be getting close to some major developments from WNDW.For the skeptics and non-believers, we simply ask this - why would one investor put in over $30 million of his own money into WNDW? WNDW is like any other venture capital situation where revolutionary technologies take time and require lots of money. With the recent drop in price, WNDW is trading at less than two times the amount of money that has gone into funding the company. If you look at other similar type VC investments, multiples are usually around ten times the amount invested in the company. That's why we believe the recent selloff is a buying opportunity for WNDW investors. To get the latest updates on WNDW, sign up for our free newsletter today!Disclosure: We have no position in WNDW and have not been compensated for this article.