SOLARWINDOW TECHNOLOGIES: Dialogue and evaluation by administration of the monetary place and working outcomes (Type 10-Q)

Ahead-looking statements

This Report on Type 10-Q accommodates forward-looking statements which contain
assumptions and describe our future plans, methods, and expectations, and are
usually identifiable by use of phrases resembling "could," "will," "ought to,"
"anticipate," "anticipate," "estimate," "imagine," "intend," or "venture," or the
destructive of those phrases or different variations on these phrases or comparable
terminology. These statements are expressed in good religion and primarily based upon a
affordable foundation when made, however there could be no assurance that these
expectations shall be achieved or completed.



Such forward-looking statements embody statements concerning, amongst different
issues, (a) the potential markets for our applied sciences, our potential
profitability, and money flows, (b) our development methods, (c) expectations from
our ongoing analysis and improvement actions, (d) anticipated developments within the
know-how business, (e) our future financing plans, and (f) our anticipated
wants for working capital. This data could contain identified and unknown dangers,
uncertainties, and different elements which will trigger our precise outcomes, efficiency,
or achievements to be materially completely different from the longer term outcomes, efficiency,
or achievements expressed or implied by any forward-looking statements. These
statements could also be discovered below "Administration's Dialogue and Evaluation of Monetary
Situation and Outcomes of Operations" in addition to on this Type 10-Q usually.
Precise occasions or outcomes could differ materially from these mentioned in
forward-looking statements because of numerous elements, together with, with out
limitation, the issues described on this Type 10-Q usually. In gentle of those
dangers and uncertainties, there could be no assurance that the forward-looking
statements contained on this submitting will the truth is happen. Along with the
data expressly required to be included on this submitting, we'll present
such additional materials data, if any, as could also be essential to make the
required statements, in gentle of the circumstances below which they're made,
not deceptive.



Though forward-looking statements on this report replicate the great religion
judgment of our administration, forward-looking statements are inherently topic to
identified and unknown dangers, enterprise, financial and different dangers and uncertainties
which will trigger precise outcomes to be materially completely different from these mentioned in
these forward-looking statements. Readers are urged to not place undue reliance
on these forward-looking statements, which converse solely as of the date of this
report. We assume no obligation to replace any forward-looking statements in
order to replicate any occasion or circumstance which will come up after the date of this
report, aside from as could also be required by relevant regulation or regulation. Readers
are urged to rigorously assessment and take into account the varied disclosures made by us in
our filings with the Securities and Trade Fee which try to advise
 events of the dangers and elements which will have an effect on our enterprise,
monetary situation, outcomes of operation and money flows. If a number of of
these dangers or uncertainties materialize, or if the underlying assumptions show
incorrect our precise outcomes could fluctuate materially from these anticipated or
projected.



Besides the place the context in any other case requires and for functions of this Type 10-Q
solely, the phrases "we," "us," "our," "Firm" "our Firm," and "SolarWindow"
confer with SolarWindow Applied sciences, Inc., a Nevada company.



Overview



We're a developer of clear electricity-generating coatings, and strategies
for his or her software to varied supplies (collectively, "LiquidElectricity™
Coatings"). When utilized in ultra-thin layers to inflexible glass, and versatile glass
and plastic surfaces our LiquidElectricity™ Coatings remodel in any other case
atypical surfaces into photovoltaic gadgets able to producing electrical energy
from pure solar, synthetic gentle, and low, shaded, or mirrored gentle
situations whereas sustaining transparency.



Now we have overcome main technical challenges and achieved many necessary
milestones leading to an enlargement of the potential purposes of
LiquidElectricity™ Coatings which span a number of industries, together with
architectural, automotive, agrivoltaic, aerospace, business transportation and
marine. Our LiquidElectricity™ Coatings are below improvement with assist from
business contract corporations and on the U.S. Division of Vitality'sNationwide
Renewable Vitality Laboratory, by way of Cooperative Analysis and Improvement
Agreements.





  15



Analysis and associated agreements

We’re get together to sure agreements associated to the event of our know-how.

Stevenson-Wydler cooperative analysis and improvement settlement with the
Alliance for Sustainable Vitality



On March 18, 2011, we entered into the NREL CRADA with Alliance for Sustainable
Vitality, the operator of the NREL below its U.S. Division of Vitality contract to
advance the business improvement of our know-how. Below phrases of the NREL
CRADA, NREL researchers make use of our unique mental property ("IP"),
newly developed IP, and NREL's background IP with a view to work in the direction of particular
product improvement targets, established by the Firm. Below the phrases of the
NREL CRADA, we agreed to reimburse Alliance for Sustainable Vitality for submitting
charges related to all documented, out-of-pocket prices immediately associated to
patent software preparation and filings, and upkeep of the patent
purposes.



Positive March 6, 2013, we have now entered section II of our NREL CRADA. Below the phrases of the settlement, the researchers will additional work to:

· Additional enhance the effectivity and transparency of our know-how;

· The optimization of {the electrical} output energy (present and voltage);

Optimization of the applying of coatings and the applying of energetic coats

processes that enable LiquidElectricity ™ coatings to generate

electrical energy on glass surfaces;

Develop improved coatings that generate electrical energy by enhancing efficiency,

processing, reliability and sturdiness;

· Optimization of the efficiency of LiquidElectricity ™ coating on versatile substrates; and

Improvement of excessive velocity, giant space roll to roll (R2R) and sheet to sheet

   (S2S) coating software strategies required for commercial-scale constructing
   built-in photovoltaic ("BIPV") merchandise and home windows.




On December 28, 2015, we entered into one other modification to the NREL CRADA
(the "Modification"). Below the Modification, (i) the date of completion was
prolonged to December 2019; and (ii) the Firm and the NREL will work collectively
in the direction of reaching particular product improvement targets and goals for the
goal of making ready to commercialize our OPV-based clear
electricity-generating coatings for numerous purposes, together with BIPV, glass
and versatile plastics.


Over the course of our collaborative analysis and improvement efforts with the
NREL below the CRADA, each events have agreed to modifications to increase the
date of completion. The Firm and NREL have entered into eight such No Value
Time Extensions ("NCTE"). Below the phrases of every NCTE, all phrases and situations
of the NREL CRADA stay in full pressure and impact with out change. The present
NCTE was executed on September 15, 2020 and extends the date of completion to
December 31, 2021. As of February 28, 2021, the Firm had a capitalized asset
steadiness of $346,837 associated to deferred analysis and improvement prices for
advances to Alliance for Sustainable Vitality for work to be carried out below
the
NREL CRADA.


US Division of Vitality (DOE) Workplace of Vitality Effectivity and Renewable Vitality (EERE) Superior Manufacturing Workplace (AMO) Cooperative Analysis and improvement settlement

On March 15, 2018 the Firm was awarded it is first-ever AMM CRADA by the DOE
EERE AMO. SolarWindow was awarded the AMM CRADA after submitting a proposal
outlining its coating applied sciences and fabrication strategies to the DOE'sRoll-to-Roll Superior Supplies Manufacturing Consortium, led by ORNL and
partnering with ANL, LBNL, and NREL. The AMM CRADA shall be carried out with the
DOE by SolarWindow, ANL, and NREL.



On September 15, 2020, we entered into NCTE that extends the date of completion
to December 31, 2021 pursuant to which researchers work in the direction of particular product
improvement targets outlined within the AMM CRADA.



By way of the developments of AMM CRADA, the Firm completed initiatives to
enhance and optimize its laser patterning system and strategies of fabrication for
software of our electricity-generating coatings on versatile plastics. As soon as
optimized for business, this development is predicted to cut back course of time,
enhance gadget efficiency, and scale back the prices of LiquidElectricity™ Coating
primarily based plastic merchandise. One other goal of the AMM CRADA is to develop and
reveal a singular high-throughput course of methodology for semitransparent OPV
modules suitable with excessive course of speeds for a lot of completely different superior materials
manufacturing methods.



  16




Outcomes of Operations



Our working outcomes for the fiscal quarter ended February 28, 2021 is probably not
indicative of the outcomes that could be anticipated for the fiscal 12 months ending August
31, 2021 due to the COVID-19 pandemic and different potential helpful or
detrimental unexpected occurrences. As well as, our quarterly outcomes of
operations have different previously and are possible to take action once more sooner or later.
As such, we imagine that period-to-period comparisons of our outcomes of
operations shouldn't be relied upon as a sign of our future efficiency.



The next tables current the weather of our consolidated working outcomes for the intervals indicated:


                                                                                             2021 in comparison with 2020
                                         Three Months Ended     Three Months Ended       Enhance /         Proportion
                                         February 28, 2021      February 29, 2020        (Lower)           Change
Working bills:
Promoting, basic & administrative       $          464,370     $          392,922     $       71,448              18 %
Analysis and improvement                           224,275                352,965           (128,690 )           (36 )%
Inventory compensation                               1,463,904                434,656          1,029,248             237 %
Whole Working expense                 $        2,152,549$        1,180,543$      972,006              82 %




                                                                                           2021 in comparison with 2020
                                         Six Months Ended      Six Months Ended        Enhance /         Proportion
                                         February 28, 2021     February 29, 2020       (Lower)           Change
Working bills:
Promoting, basic & administrative       $         930,332     $         841,484     $       88,848              11 %
Analysis and improvement                          467,432               683,214           (215,782 )           (32 )%
Inventory compensation                              3,302,434               855,626          2,446,808             286 %
Whole Working expense                 $       4,700,198$       2,380,324$    2,319,874              97 %



Comparability of the finished three and 6 months February 28, 2021, on the finish of the three and 6 months February 29, 2020

Promoting, basic and administrative bills

Promoting, basic and administrative ("SG&A") prices embody all expenditures
incurred aside from analysis and improvement associated prices, together with prices
associated to personnel, skilled charges, journey and leisure, public
firm prices, insurance coverage and different workplace associated prices. Through the three months
ended February 28, 2021 in comparison with the three months ended February 29, 2020,
SG&A prices elevated due primarily to a $38,463 enhance in personnel prices and
$61,885 enhance in different administrative prices offset by a lower of $28,901
in skilled charges. Through the six months ended February 28, 2021 in comparison with
the three months ended February 29, 2020, SG&A prices elevated due primarily to
a $56,713 enhance in personnel prices and $131,344 enhance in different
administrative prices offset by a lower of $99,209 in skilled charges.



  17




Analysis and Improvement


Analysis and Improvement ("R&D") prices characterize prices incurred to develop our
SolarWindow™ know-how and are incurred pursuant to our analysis agreements and
agreements with different third-party suppliers and sure inner R&D value
allocations. Funds below these agreements embody salaries and advantages for
R&D personnel, allotted overhead, contract providers and different prices. R&D prices
are expensed when incurred, aside from non-refundable advance funds for
future analysis and improvement actions that are capitalized and acknowledged
as expense because the associated providers are carried out. Through the three months ended
February 28, 2021 in comparison with the three months ended February 29, 2020, R&D
prices decreased because of a $36,598 lower in CRADA prices and $61,867
lower in personnel prices and $30,225 lower in different R&D associated prices.
Through the six months ended February 28, 2021 in comparison with the three months ended
February 29, 2020, R&D prices decreased because of a $87,776 lower in
CRADA prices, $55,280 lower in personnel prices and $72,726 lower in different
R&D associated prices.



Inventory Primarily based Compensation



The Firm grants inventory choices to its Administrators, workers and consultants.
Inventory compensation represents the expense related to the amortization of
our inventory choices. Expense related to equity-based transactions is
calculated and expensed in our monetary statements as required pursuant to
numerous accounting guidelines and is non-cash in nature. Inventory primarily based compensation
expense elevated due primarily to the Firm coming into into an Govt
Consulting Settlement with every of Mr. Jatinder S. Bhogal, CEO and Chairman and
Mr. John Rhee, President and Director, pursuant to which every get together was granted
2,500,000 inventory buy choices within the fourth quarter of fiscal 12 months 2020.

Different Revenue (Expense)



A abstract of our different revenue (expense) for the intervals introduced is as follows:





                                                Three Months Ended      Three Months Ended     2021 in contrast
                                                 February 28, 2021      February 29, 2020         to 2020
Different revenue (expense)
Curiosity revenue                                $           3,279       $           73,845            (70,566 )
Whole different revenue (expense)                   $           3,279       $           73,845     $      (70,566 )




                                Six Months Ended     Six Months Ended     2021 in contrast
                                  February 28,         February 29,          to 2020
Different revenue (expense)
Curiosity revenue                $        22,668$        168,348           (145,680 )
Loss on disposal of belongings              (8,775 )                   -             (8,775 )
Whole different revenue (expense)   $        13,893$        168,348$     (154,455 )




Curiosity revenue pertains to the curiosity earned on our money and money equivalents
and short-term investments. We skilled a lower over the prior 12 months
primarily resulting from a lower within the fee of curiosity earned. The loss on disposal
of mounted belongings pertains to the closing of the Vestal, New York workplace and
associated disposal of workplace gear and furnishings.









  18



Liquidity and capital sources



Our main money wants are for personnel, skilled and improvement associated
charges and insurance coverage. Our principal sources of liquidity are money and money
equivalents and short-term investments. As of February 28, 2021 and August 31,
2020, we had money and money equivalents and short-term investments of $13,477,264
and $14,151,523, respectively. Now we have financed our operations primarily from
the sale of fairness and debt securities. We anticipate the price of funding the South
Korea workplace to be roughly $850,000 over the twelve months ending August
31, 2021.


The next desk presents a abstract of our money flows for the intervals indicated:

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