SOLARWINDOW TECHNOLOGIES, INC. Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations (Kind 10-Q)

Ahead-looking statements

This Report on Kind 10-Q incorporates forward-looking statements which contain
assumptions and describe our future plans, methods, and expectations, and are
usually identifiable by use of phrases akin to "might," "will," "ought to,"
"count on," "anticipate," "estimate," "imagine," "intend," or "mission," or the
unfavorable of those phrases or different variations on these phrases or comparable
terminology. These statements are expressed in good religion and based mostly upon a
cheap foundation when made, however there will be no assurance that these
expectations might 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 progress methods, (c) expectations from
our ongoing analysis and growth actions, (d) anticipated developments within the
know-how trade, (e) our future financing plans, and (f) our anticipated
wants for working capital. This data might contain recognized and unknown dangers,
uncertainties, and different elements that 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 underneath "Administration's Dialogue and Evaluation of Monetary
Situation and Outcomes of Operations" in addition to on this Kind 10-Q usually.
Precise occasions or outcomes might differ materially from these mentioned in
forward-looking statements because of varied elements, together with, with out
limitation, the issues described on this Kind 10-Q usually. In mild of those
dangers and uncertainties, there will be no assurance that the forward-looking
statements contained on this submitting will in reality happen. Along with the
data expressly required to be included on this submitting, we are going to present
such additional materials data, if any, as could also be essential to make the
required statements, in mild of the circumstances underneath 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
recognized and unknown dangers, enterprise, financial and different dangers and uncertainties
that 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 communicate 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 that 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 fastidiously evaluation and take into account the assorted disclosures made by us in
our filings with the Securities and Change Fee which try to advise
 events of the dangers and elements that 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 might differ materially from these anticipated or
projected.



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



Overview



SolarWindow Applied sciences, Inc. is a developer of clear
electricity-generating coatings ("LiquidElectricity™ Coatings"). When utilized in
ultra-thin layers to inflexible glass, and versatile glass and plastic surfaces our
LiquidElectricity™ Coatings rework in any other case odd surfaces into
photovoltaic units able to producing electrical energy from pure solar,
synthetic mild, and low, shaded, or mirrored mild situations whereas
sustaining transparency.



We have now overcome main technical challenges and achieved many essential
milestones leading to an growth of the potential purposes of
LiquidElectricity™ Coatings. Potential purposes of LiquidElectricity™
Coatings span a number of industries, together with architectural, automotive,
agrivoltaic, aerospace, business transportation and marine. Our
LiquidElectricity™ Coatings and SolarWindow™ merchandise are underneath growth with
assist from business contract corporations and on the U.S. Division of Vitality's
Nationwide Renewable Vitality Laboratory, by way of Cooperative Analysis and
Growth Agreements.



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Analysis agreements and associated agreements

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

Stevenson-Wydler Cooperative Analysis and growth with
Sustainable Vitality Alliance



On March 18, 2011, we entered into the NREL CRADA with Alliance for Sustainable
Vitality, the operator of the NREL underneath its U.S. Division of Vitality contract to
advance the business growth of our know-how. Beneath phrases of the NREL
CRADA, NREL researchers make use of our unique mental property ("IP"),
newly developed IP, and NREL's background IP so as to work in the direction of particular
product growth objectives, established by the Firm. Beneath 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 straight associated to
patent utility preparation and filings, and upkeep of the patent
purposes.



At March 6, 2013, now we have entered section II of our NREL CRADA. Beneath the phrases of the settlement, the researchers will moreover work to:

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

· optimize the manufacturing {of electrical} energy (present and voltage);

optimize the applying of energetic layer coatings and the applying

processes that enable LiquidElectricity™ coatings to generate

electrical energy on glazed surfaces;

develop improved electricity-generating coatings by enhancing efficiency,

processing, reliability and sturdiness;

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

growth of high-speed, large-area rolls (R2R) and sheet-fed

   (S2S) coating utility 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"). Beneath the Modification, (i) the date of completion was
prolonged to December 2017; and (ii) the Firm and the NREL will work collectively
in the direction of attaining particular product growth objectives and goals for the
function of getting ready to commercialize our OPV-based clear
electricity-generating coatings for varied purposes, together with BIPV, glass
and versatile plastics.


Over the course of our collaborative analysis and growth efforts with the
NREL underneath the CRADA, each events have agreed to modifications to increase the
date of completion. The Firm and NREL have entered into ten such No Value Time
Extensions ("NCTE"). Beneath 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 December 6, 2021 and extends the date of completion to December
31, 2024. As of November 30, 2021, the Firm had a capitalized asset stability
of $136,508 associated to deferred analysis and growth prices for advances to
Alliance for Sustainable Vitality for work to be carried out underneath the NREL CRADA.













  14




Outcomes of Operations



Our quarterly intervals finish on November 30, February 28, Could 31, and August 31.
Our working outcomes for the fiscal quarter ended November 30, 2021 might not be
indicative of the outcomes that could be anticipated for the fiscal 12 months ending August
31, 2022 due to the COVID-19 pandemic and different potential useful or
detrimental unexpected occurrences. As well as, our quarterly outcomes of
operations have various up to now and are seemingly 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 desk presents the elements of our consolidated outcomes of operations for the intervals indicated:


                                                                                   2021 in comparison with 2020
                                       Three Months Ended November 30,         Improve /         Share
                                           2021                 2020           (Lower)           Change
Working bills:
Promoting, basic & administrative   $        730,301       $    465,961     $       264,340               57 %
Analysis and growth                     341,488            243,156              98,332               40 %
Inventory compensation                           278,863          1,838,532          (1,559,669 )            -85 %
Whole Working expense             $      1,350,652       $  2,547,649     $    (1,196,997 )            -47 %



Comparability of the three months ended November 30, 2021 on the finish of three months
November 30, 2020

Promoting, basic and administrative bills

Promoting, basic and administrative ("SG&A") prices embody all expenditures
incurred aside from analysis and growth 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 November 30, 2021 in comparison with the three months ended November 30, 2020,
SG&A prices elevated due primarily to a $188,298 improve in personnel prices and
$101,438 improve in skilled charges offset by a lower of $25,396 in different
administrative prices.



Analysis and Growth


Analysis and Growth ("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 inside R&D price
allocations. Funds underneath 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 growth actions that are capitalized and acknowledged
as expense because the associated providers are carried out. Through the three months ended
November 30, 2021 in comparison with the three months ended November 30, 2020, R&D
prices elevated because of a $9,706 improve in CRADA prices, $83,685
improve in personnel prices and $4,941 improve 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
varied accounting guidelines and is non-cash in nature. Inventory based mostly compensation
expense decreased primarily resulting from present 12 months expense excluding compensation
associated to the prior 12 months which included expense associated to 2,500,000 inventory
buy choices granted within the fourth quarter of fiscal 12 months ended August 31,
2020 to every of Mr. Jatinder S. Bhogal, CEO and Chairman and Mr. John Rhee,
President and Director.





  15



Money and capital assets

Our major money wants are for personnel, skilled and R&D associated charges and
different administrative prices. Our principal sources of liquidity are money and
short-term investments. As of November 30, 2021, the Firm had money of
$11,394,950. We have now financed our operations primarily from the sale of fairness
and debt securities.



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



                                                  Three Months Ended November 30,
                                                      2021               

2020 2021 in comparison with 2020 Web money utilized in working actions ($725,443) ($579,314) $

             146,129
Web money utilized in investing actions                4,996,858          (5,025,565 )             (10,022,423 )
Impact of change price adjustments on money                 (3,921 )             2,866                     6,787
Web improve (lower) in money and money
equivalents                                    $     4,267,494       $  (5,602,013 )   $          (9,869,507 )




Working Actions


Working actions embody internet loss adjusted for sure non-cash gadgets, together with amortization, stock-based compensation expense, realized beneficial properties or losses on disposal of property, plant and gear and the impact of adjustments working capital. The rise in money flows utilized in working actions in comparison with the earlier interval is principally resulting from a rise in R&D prices, personnel prices {and professional} charges offset by a lower in different administrative prices.


Investing Actions


We have now used money primarily for liquid short-term investments, purchases of
furnishings, workplace gear, leasehold enhancements to our Korean places of work and
computer systems and software program. Web funding actions for capital expenditures have been
$3,142 throughout the three months ended November 30, 2021, in comparison with $27,726
throughout the three months ended November 30, 2020. Throughout 2021, we bought a
twelve-month time period deposit within the quantity of $5,000,000 which matured on October
1, 2021.



Indebtedness



None.


Off-balance sheet preparations

We have now no off-balance sheet preparations.


Different Contractual Obligations



In September 2020, the Firm, by way of its wholly owned direct and oblique
subsidiaries, SolarWindow Asia (USA) Corp. and SolarWindow Asia Co., Ltd.,
entered a lease for workplace area in South Korea. The workplace lease expires on
September 23, 2022. Month-to-month hire is roughly $1,200.



On February 26, 2021, SolarWindow Asia Co., Ltd. entered into an residence lease
for the needs of housing overseas personnel. The residence lease expires on
March 7, 2022. Month-to-month hire is roughly $950.



Throughout fiscal 2019 the Firm made funds totaling $1,292,655 in the direction of the
buy of producing gear with an estimated complete price of $1,803,000.
The remaining $510,345 might be paid upon the completion of the gear. For
extra data, see "Notice 4 - Gear" positioned within the footnotes to our
monetary statements.







  16



Current accounting pronouncements not but adopted

See Notice 2 to our Consolidated Monetary Statements, “Presentation of Interim Assertion – Accounting Pronouncements”.

Not too long ago Adopted Accounting Pronouncements

See Notice 2 to our Consolidated Monetary Statements, “Presentation of Interim Assertion – Accounting Pronouncements”.

Important Accounting Insurance policies and Important Judgments and Use of Estimates

Administration's dialogue and evaluation of monetary situation and outcomes of
operations relies upon our consolidated monetary statements, which have been
ready in accordance with U.S. usually accepted accounting ideas. The
preparation of those consolidated monetary statements required using
estimates and judgments that have an effect on the reported quantities of our property,
liabilities, and bills. Administration bases estimates on historic expertise
and different assumptions it believes to be cheap underneath the circumstances and
evaluates these estimates on an on-going foundation. Precise outcomes might differ from
these estimates. There have been no vital adjustments to the crucial
accounting insurance policies and estimates included in our Annual Report on Kind 10-Okay for
the fiscal 12 months ended August 31, 2021.



Associated Get together Transactions


See notice 7 to our consolidated monetary statements for a dialogue of our associated occasion transactions.


Company Info



SolarWindow Applied sciences, Inc., a Nevada company, was integrated in 1998.
The Firm's government places of work are positioned at 9375 E Shea Blvd., Suite 107-B,
Scottsdale AZ 85260. The Firm's phone quantity is (800) 213-0689. Our
Web deal with is www.solarwindow.com. We make out there freed from cost
by way of our Web web site our Annual Reviews on Kind 10-Okay, Quarterly Reviews
on Kind 10-Q, Present Reviews on Kind 8-Okay and amendments to these reviews filed
or furnished pursuant to the Securities Change Act of 1934, as amended, as
quickly as moderately practicable after we electronically file such materials with,
or furnish it to, the Securities and Change Fee ("SEC"). The
data accessible by way of our web site will not be part of this Quarterly
Report on Kind 10-Q.

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