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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2024
or
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TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Transition Period from to
Commission File No. 001-32919
Ascent Solar Technologies, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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20-3672603 |
(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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12300 Grant Street, Thornton, CO |
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80241 |
(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number including area code: 720-872-5000
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
Trading Symbol(s) |
Name of exchange on which registered |
Common |
ASTI |
Nasdaq Capital Markets |
Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:
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Large accelerated filer |
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of August 6, 2024, there were 102,344,843 shares of our common stock issued and outstanding.
ASCENT SOLAR TECHNOLOGIES, INC.
Quarterly Report on Form 10-Q
For the Period Ended June 30, 2024
Table of Contents
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes “forward-looking statements” that involve risks and uncertainties. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future net sales or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, business trends and other information that is not historical information and, in particular, appear under headings including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Overview.” When used in this Quarterly Report, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts,” “foresees,” “likely,” “may,” “should,” “goal,” “target,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon information available to us on the date of this Quarterly Report.
These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things, the matters discussed in this Quarterly Report in the sections captioned “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Factors you should consider that could cause these differences are:
•Our operating history and lack of profitability;
•Our ability to develop demand for, and sales of, our products;
•Our ability to attract and retain qualified personnel to implement our business plan and corporate growth strategies;
•Our ability to develop sales, marketing and distribution capabilities;
•Our ability to successfully develop and maintain strategic relationships with key partners;
•The accuracy of our estimates and projections;
•Our ability to secure additional financing to fund our short-term and long-term financial needs;
•Our ability to maintain the listing of our common stock on the Nasdaq Capital Market.
•The commencement, or outcome, of legal proceedings against us, or by us, including ongoing litigation proceedings;
•Changes in our business plan or corporate strategies;
•The extent to which we are able to manage the growth of our operations effectively, both domestically and abroad, whether directly owned or indirectly through licenses;
•The supply, availability and price of equipment, components and raw materials, including the elements needed to produce our photovoltaic modules;
•Our ability to expand and protect the intellectual property portfolio that relates to our photovoltaic modules and processes;
•Our ability to maintain effective internal controls over financial reporting;
•Our ability to achieve projected operational performance and cost metrics;
•General economic and business conditions, and in particular, conditions specific to the solar power industry; and
•Other risks and uncertainties discussed in greater detail elsewhere in this Quarterly Report and in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023
There may be other factors that could cause our actual results to differ materially from the results referred to in the forward-looking statements. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances after the date made, or to reflect the occurrence of unanticipated events, except as required by law.
References to “we,” “us,” “our,” “Ascent,” “Ascent Solar” or the “Company” in this Quarterly Report mean Ascent Solar Technologies, Inc.
PART I. FINANCIAL INFORMATION
Item 1. Condensed Financial Statements
CONDENSED BALANCE SHEETS
(unaudited)
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June 30, |
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December 31, |
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2024 |
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2023 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
5,785,058 |
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$ |
1,048,733 |
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Trade receivables, net of allowance of $0 and $0, respectively |
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22,324 |
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- |
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Inventories, net |
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460,856 |
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447,496 |
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Prepaid and other current assets |
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149,451 |
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39,279 |
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Total current assets |
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6,417,689 |
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1,535,508 |
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Property, Plant and Equipment: |
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19,679,497 |
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21,177,892 |
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Accumulated depreciation |
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(19,412,704 |
) |
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(20,131,008 |
) |
Property, Plant and Equipment, net |
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266,793 |
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1,046,884 |
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Other Assets: |
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Operating lease right-of-use assets, net |
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2,129,854 |
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2,364,672 |
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Patents, net of accumulated amortization of $178,704 and $173,387
respectively |
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48,661 |
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53,978 |
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Equity method investment |
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64,931 |
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68,867 |
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Other non-current assets |
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1,228,399 |
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1,228,797 |
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3,471,845 |
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3,716,314 |
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Total Assets |
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$ |
10,156,327 |
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$ |
6,298,706 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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Current Liabilities: |
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Accounts payable |
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$ |
657,140 |
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$ |
579,237 |
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Related party payables |
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5,769 |
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4,231 |
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Accrued expenses |
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1,096,959 |
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1,354,159 |
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Accrued payroll |
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238,834 |
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160,477 |
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Accrued professional services fees |
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161,258 |
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849,282 |
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Accrued interest |
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638,633 |
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628,145 |
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Current portion of operating lease liability |
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533,503 |
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491,440 |
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Conversions payable (Note 12) |
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- |
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1,089,160 |
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Current portion of convertible notes, net |
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- |
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354,936 |
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Bridge loan |
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637,751 |
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- |
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Other payable |
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250,000 |
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250,000 |
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Total current liabilities |
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4,219,847 |
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|
5,761,067 |
|
Long-Term Liabilities: |
|
|
|
|
|
|
Non-current operating lease liabilities |
|
|
1,762,575 |
|
|
|
2,043,025 |
|
Accrued warranty liability |
|
|
21,225 |
|
|
|
21,225 |
|
Total liabilities |
|
|
6,003,647 |
|
|
|
7,825,317 |
|
Commitments and contingencies (Note 17) |
|
|
|
|
|
|
Stockholders’ Equity (Deficit): |
|
|
|
|
|
|
Series A preferred stock, $.0001 par value; 750,000 shares authorized; 48,100
and 48,100 shares issued and outstanding, respectively ($923,386 and
$899,069 Liquidation Preference, respectively) |
|
|
5 |
|
|
|
5 |
|
Common stock, $0.0001 par value, 500,000,000 authorized; 98,825,076
and 3,583,846 shares issued and outstanding, respectively |
|
|
9,882 |
|
|
|
358 |
|
Additional paid in capital |
|
|
492,598,096 |
|
|
|
480,942,526 |
|
Accumulated deficit |
|
|
(488,462,005 |
) |
|
|
(482,478,436 |
) |
Accumulated other comprehensive loss |
|
|
6,702 |
|
|
|
8,936 |
|
Total stockholders’ equity (deficit) |
|
|
4,152,680 |
|
|
|
(1,526,611 |
) |
Total Liabilities and Stockholders’ Equity (Deficit) |
|
$ |
10,156,327 |
|
|
$ |
6,298,706 |
|
The accompanying notes are an integral part of these unaudited condensed financial statements.
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
27,743 |
|
|
$ |
86,385 |
|
|
$ |
33,343 |
|
|
$ |
185,610 |
|
Milestone and engineering |
|
|
- |
|
|
|
14,916 |
|
|
|
- |
|
|
|
39,916 |
|
Total Revenues |
|
|
27,743 |
|
|
|
101,301 |
|
|
|
33,343 |
|
|
|
225,526 |
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Costs of revenue |
|
|
61,524 |
|
|
|
666,269 |
|
|
|
70,912 |
|
|
|
1,128,064 |
|
Research, development and manufacturing
operations |
|
|
506,001 |
|
|
|
822,321 |
|
|
|
1,113,231 |
|
|
|
2,488,016 |
|
Selling, general and administrative |
|
|
1,611,438 |
|
|
|
1,178,832 |
|
|
|
2,671,489 |
|
|
|
2,770,652 |
|
Share-based compensation |
|
|
185,702 |
|
|
|
560,861 |
|
|
|
444,928 |
|
|
|
1,965,311 |
|
Depreciation and amortization |
|
|
18,651 |
|
|
|
24,443 |
|
|
|
39,408 |
|
|
|
50,224 |
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
524,481 |
|
|
|
- |
|
Total Costs and Expenses |
|
|
2,383,316 |
|
|
|
3,252,726 |
|
|
|
4,864,449 |
|
|
|
8,402,267 |
|
Loss from Operations |
|
|
(2,355,573 |
) |
|
|
(3,151,425 |
) |
|
|
(4,831,106 |
) |
|
|
(8,176,741 |
) |
Other Income/(Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense), net |
|
|
(37,988 |
) |
|
|
- |
|
|
|
26,333 |
|
|
|
10,000 |
|
Warrant settlement (Note 15) |
|
|
(743,459 |
) |
|
|
- |
|
|
|
(743,459 |
) |
|
|
- |
|
Interest expense |
|
|
(307,081 |
) |
|
|
(761,877 |
) |
|
|
(433,635 |
) |
|
|
(1,829,913 |
) |
Total Other Income/(Expense) |
|
|
(1,088,528 |
) |
|
|
(761,877 |
) |
|
|
(1,150,761 |
) |
|
|
(1,819,913 |
) |
Income/(Loss) on Equity Method Investments |
|
|
(1,726 |
) |
|
|
(170 |
) |
|
|
(1,702 |
) |
|
|
(170 |
) |
Net Income/(Loss) |
|
$ |
(3,445,827 |
) |
|
$ |
(3,913,472 |
) |
|
$ |
(5,983,569 |
) |
|
$ |
(9,996,824 |
) |
Net Income/(Loss) Per Share (Basic and Diluted) |
|
$ |
(0.07 |
) |
|
$ |
(66.40 |
) |
|
$ |
(0.21 |
) |
|
$ |
(105.08 |
) |
Weighted Average Common Shares
Outstanding (Basic) |
|
|
50,995,733 |
|
|
|
234,439 |
|
|
|
27,876,905 |
|
|
|
206,041 |
|
Weighted Average Common Shares
Outstanding (Diluted) |
|
|
50,995,733 |
|
|
|
234,439 |
|
|
|
27,876,905 |
|
|
|
206,041 |
|
Other Comprehensive Income/(Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain/(loss) |
|
|
(522 |
) |
|
|
(4,836 |
) |
|
|
(2,234 |
) |
|
|
1,870 |
|
Net Comprehensive Income/(Loss) |
|
$ |
(3,446,349 |
) |
|
$ |
(3,918,308 |
) |
|
$ |
(5,985,803 |
) |
|
$ |
(9,994,954 |
) |
The accompanying notes are an integral part of these unaudited condensed financial statements.
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
(unaudited)
For the Three and Six Months Ended June 30, 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A
Preferred Stock |
|
|
Common Stock |
|
|
Additional
Paid-In |
|
|
Accumulated |
|
|
Other Accumulated Comprehensive |
|
|
Total
Stockholders’
Equity |
|
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Loss |
|
|
(Deficit) |
|
Balance at January 1, 2024 |
|
|
48,100 |
|
|
$ |
5 |
|
|
|
3,583,846 |
|
|
$ |
358 |
|
|
$ |
480,942,526 |
|
|
$ |
(482,478,436 |
) |
|
$ |
8,936 |
|
|
$ |
(1,526,611 |
) |
Conversion of L1 Note
into Common Stock |
|
|
- |
|
|
|
- |
|
|
|
2,411,788 |
|
|
|
241 |
|
|
|
1,256,451 |
|
|
|
- |
|
|
|
- |
|
|
|
1,256,692 |
|
Exercise of prefunded warrants |
|
|
- |
|
|
|
- |
|
|
|
715,111 |
|
|
|
72 |
|
|
|
(72 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
259,234 |
|
|
|
- |
|
|
|
- |
|
|
|
259,234 |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,537,742 |
) |
|
|
- |
|
|
|
(2,537,742 |
) |
Foreign Currency Translation
Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,712 |
) |
|
|
(1,712 |
) |
Balance at March 31, 2024 |
|
|
48,100 |
|
|
$ |
5 |
|
|
|
6,710,745 |
|
|
$ |
671 |
|
|
$ |
482,458,139 |
|
|
$ |
(485,016,178 |
) |
|
$ |
7,224 |
|
|
$ |
(2,550,139 |
) |
Sale of common stock |
|
|
- |
|
|
|
- |
|
|
|
15,179,460 |
|
|
|
1,518 |
|
|
|
4,453,722 |
|
|
|
- |
|
|
|
- |
|
|
|
4,455,240 |
|
Exercise of prefunded warrants |
|
|
- |
|
|
|
- |
|
|
|
21,162,277 |
|
|
|
2,116 |
|
|
|
(2,116 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
79,951 |
|
|
|
8 |
|
|
|
170,741 |
|
|
|
- |
|
|
|
- |
|
|
|
170,749 |
|
Proceeds from sale on ATM facility,
net of expenses of $617,694 |
|
|
- |
|
|
|
- |
|
|
|
55,342,643 |
|
|
|
5,534 |
|
|
|
8,335,686 |
|
|
|
- |
|
|
|
- |
|
|
|
8,341,220 |
|
Common stock issued to settle liabilities |
|
|
- |
|
|
|
- |
|
|
|
350,000 |
|
|
|
35 |
|
|
|
38,465 |
|
|
|
- |
|
|
|
- |
|
|
|
38,500 |
|
Warrant repurchase |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,600,000 |
) |
|
|
- |
|
|
|
- |
|
|
|
(3,600,000 |
) |
Warrant settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
743,459 |
|
|
|
- |
|
|
|
- |
|
|
|
743,459 |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,445,827 |
) |
|
|
- |
|
|
|
(3,445,827 |
) |
Foreign Currency Translation
Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(522 |
) |
|
|
(522 |
) |
Balance at June 30, 2024 |
|
|
48,100 |
|
|
$ |
5 |
|
|
|
98,825,076 |
|
|
$ |
9,882 |
|
|
$ |
492,598,096 |
|
|
$ |
(488,462,005 |
) |
|
$ |
6,702 |
|
|
$ |
4,152,680 |
|
The accompanying notes are an integral part of these unaudited condensed financial statements.
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT
(unaudited)
For the Three and Six Months Ended June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A
Preferred Stock |
|
|
Series 1B
Preferred Stock |
|
|
Common Stock |
|
|
Additional
Paid-In |
|
|
Accumulated |
|
|
Other Accumulated Comprehensive |
|
|
Total
Stockholders’
Equity |
|
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Loss |
|
|
(Deficit) |
|
Balance at January 1, 2023 |
|
|
48,100 |
|
|
$ |
5 |
|
|
|
- |
|
|
$ |
- |
|
|
|
259,323 |
|
|
$ |
26 |
|
|
$ |
448,343,153 |
|
|
$ |
(447,427,862 |
) |
|
$ |
(16,024 |
) |
|
$ |
899,298 |
|
Conversion of L1 Note
into Common Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,200 |
|
|
|
1 |
|
|
|
508,739 |
|
|
|
- |
|
|
|
- |
|
|
|
508,740 |
|
Conversion of Sabby Note into
Common Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,255 |
|
|
|
1 |
|
|
|
1,083,717 |
|
|
|
- |
|
|
|
- |
|
|
|
1,083,718 |
|
Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,404,450 |
|
|
|
- |
|
|
|
- |
|
|
|
1,404,450 |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,083,352 |
) |
|
|
- |
|
|
|
(6,083,352 |
) |
Foreign Currency Translation
Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,706 |
|
|
|
6,706 |
|
Balance at March 31, 2023 |
|
|
48,100 |
|
|
$ |
5 |
|
|
|
- |
|
|
$ |
- |
|
|
|
276,778 |
|
|
$ |
28 |
|
|
$ |
451,340,059 |
|
|
$ |
(453,511,214 |
) |
|
$ |
(9,318 |
) |
|
$ |
(2,180,440 |
) |
Conversion of L1 Note
into Common Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
37,929 |
|
|
|
4 |
|
|
|
732,074 |
|
|
|
- |
|
|
|
- |
|
|
|
732,078 |
|
Conversion of Sabby Note into
Common Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
52,775 |
|
|
|
5 |
|
|
|
1,039,926 |
|
|
|
- |
|
|
|
- |
|
|
|
1,039,931 |
|
Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
560,861 |
|
|
|
- |
|
|
|
- |
|
|
|
560,861 |
|
Proceeds from issuance of
Series 1B Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
900 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
900,000 |
|
|
|
- |
|
|
|
- |
|
|
|
900,000 |
|
Preferred Stock issuance cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,000 |
) |
|
|
|
|
|
|
|
|
(20,000 |
) |
Common stock issued for services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,425 |
|
|
|
- |
|
|
|
92,750 |
|
|
|
- |
|
|
|
- |
|
|
|
92,750 |
|
Down round deemed dividend |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11,653,986 |
|
|
|
(11,653,986 |
) |
|
|
- |
|
|
|
- |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,913,472 |
) |
|
|
- |
|
|
|
(3,913,472 |
) |
Foreign Currency Translation
Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,836 |
) |
|
|
(4,836 |
) |
Balance at June 30, 2023 |
|
|
48,100 |
|
|
$ |
5 |
|
|
|
900 |
|
|
$ |
- |
|
|
|
368,907 |
|
|
$ |
37 |
|
|
$ |
466,299,656 |
|
|
$ |
(469,078,672 |
) |
|
$ |
(14,154 |
) |
|
$ |
(2,793,128 |
) |
The accompanying notes are an integral part of these unaudited condensed financial statements.
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
|
2024 |
|
|
2023 |
|
Operating Activities: |
|
|
|
|
|
|
Net income/(loss) |
|
$ |
(5,983,569 |
) |
|
$ |
(9,996,824 |
) |
Adjustments to reconcile net income (loss) to cash used in operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
39,408 |
|
|
|
50,224 |
|
Share-based compensation |
|
|
444,924 |
|
|
|
1,965,311 |
|
Stock issued for services |
|
|
38,500 |
|
|
|
— |
|
Stock issued for warrant settlement |
|
|
743,459 |
|
|
|
— |
|
Operating lease asset amortization |
|
|
234,818 |
|
|
|
394,638 |
|
Amortization of debt discount |
|
|
64,017 |
|
|
|
1,542,085 |
|
Loss on equity method investment |
|
|
1,702 |
|
|
|
170 |
|
Inventory reserve expense |
|
|
(35,915 |
) |
|
|
83,357 |
|
Impairment loss |
|
|
524,481 |
|
|
|
— |
|
Other |
|
|
(14,941 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(22,324 |
) |
|
|
(13,147 |
) |
Inventories |
|
|
22,555 |
|
|
|
(146,362 |
) |
Prepaid expenses and other current assets |
|
|
(109,774 |
) |
|
|
17,330 |
|
Accounts payable |
|
|
77,903 |
|
|
|
557,146 |
|
Related party payable |
|
|
1,538 |
|
|
|
(51,971 |
) |
Operating lease liabilities |
|
|
(238,387 |
) |
|
|
(384,708 |
) |
Accrued interest |
|
|
10,488 |
|
|
|
113,909 |
|
Accrued expenses |
|
|
(645,348 |
) |
|
|
(708,984 |
) |
Net cash used in operating activities |
|
|
(4,846,465 |
) |
|
|
(6,577,826 |
) |
Investing Activities: |
|
|
|
|
|
|
Payments on purchase of assets |
|
|
— |
|
|
|
(3,841,373 |
) |
Patent activity costs |
|
|
— |
|
|
|
(8,169 |
) |
Net cash used in investing activities |
|
|
— |
|
|
|
(3,849,542 |
) |
Financing Activities: |
|
|
|
|
|
|
Proceeds from issuance of Series 1B Preferred Stock |
|
|
— |
|
|
|
880,000 |
|
Proceeds from bridge loans |
|
|
1,153,750 |
|
|
|
— |
|
Repayment of bridge loans |
|
|
(560,756 |
) |
|
|
— |
|
Proceeds from issuance of Common Stock |
|
|
12,796,460 |
|
|
|
— |
|
Warrant repurchase |
|
|
(3,600,000 |
) |
|
|
— |
|
Payment of convertible notes and cash payable |
|
|
(206,664 |
) |
|
|
(1,025,423 |
) |
Net cash provided by (used in) financing activities |
|
|
9,582,790 |
|
|
|
(145,423 |
) |
Effect of foreign exchange rate on cash |
|
|
— |
|
|
|
(4,606 |
) |
Net change in cash and cash equivalents |
|
|
4,736,325 |
|
|
|
(10,577,397 |
) |
Cash and cash equivalents at beginning of period |
|
|
1,048,733 |
|
|
|
11,483,018 |
|
Cash and cash equivalents at end of period |
|
$ |
5,785,058 |
|
|
$ |
905,621 |
|
Non-Cash Transactions: |
|
|
|
|
|
|
Exercise of prefunded warrants |
|
$ |
2,188 |
|
|
$ |
— |
|
Non-cash conversions of convertible notes to equity |
|
$ |
1,256,692 |
|
|
$ |
3,364,467 |
|
Down round deemed dividend |
|
$ |
— |
|
|
$ |
11,653,986 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
Cash paid during the year for: |
|
|
|
|
|
|
Interest |
|
$ |
258,000 |
|
|
$ |
173,600 |
|
The accompanying notes are an integral part of these unaudited condensed financial statements.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION
Ascent Solar Technologies, Inc. (the “Company") is focusing on integrating its photovoltaic ("PV") products into scalable and high value markets such as agrivoltaics, aerospace, satellites, near earth orbiting vehicles, and fixed wing unmanned aerial vehicles (“UAV”). The value proposition of Ascent’s proprietary solar technology not only aligns with the needs of customers in these industries, but also overcomes many of the obstacles other solar technologies face in these unique markets. Ascent has the capability to design and develop finished products for end users in these areas as well as collaborate with strategic partners to design and develop custom integrated solutions for products like fixed-wing UAVs. Ascent sees significant overlap of the needs of end users across some of these industries and can achieve economies of scale in sourcing, development, and production in commercializing products for these customers.
NOTE 2. BASIS OF PRESENTATION
The accompanying, unaudited, condensed financial statements have been derived from the accounting records of the Company as of June 30, 2024, and December 31, 2023, and the results of operations for the three and six months ended June 30, 2024, and 2023.
The accompanying, unaudited, condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, these interim financial statements do not include all of the information and footnotes typically found in U.S. GAAP audited annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been included. The Condensed Balance Sheet at December 31, 2023, has been derived from the audited financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. These condensed financial statements and notes should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company’s significant accounting policies were described in Note 2 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes to our accounting policies as of June 30, 2024.
Revenue Recognition:
Product revenue. The Company recognizes revenue for the sale of PV modules and other equipment sales at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. For module and other equipment sales contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices, or estimates of such prices, and recognizes the related revenue as control of each individual product is transferred to the customer.
During the three months ended June 30, 2024 and 2023, the Company recognized product revenue of $27,743 and $86,385, respectively. During the six months ended June 30, 2024 and 2023, the Company recognized product revenue of $33,343 and $185,610, respectively.
Milestone and engineering revenue. Each milestone and engineering arrangement is a separate performance obligation. The transaction price is estimated using the most likely amount method and revenue is recognized as the performance obligation
is satisfied through achieving manufacturing, cost, or engineering targets. During the three months ended June 30, 2024 and 2023, the Company recognized total milestone and engineering revenue of $0 and $14,916, respectively. During the six months ended June 30, 2024 and 2023, the Company recognized total milestone and engineering revenue of $0 and $39,916, respectively.
Government contracts revenue. Revenue from government research and development contracts is generated under terms that are cost plus fee or firm fixed price. The Company generally recognizes this revenue over time using cost-based input methods, which recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. In applying cost-based input methods of revenue recognition, the Company uses the actual costs incurred relative to the total estimated costs to determine our progress towards contract completion and to calculate the corresponding amount of revenue to recognize.
Cost based input methods of revenue recognition are considered a faithful depiction of the Company’s efforts to satisfy long-term government research and development contracts and therefore reflect the performance obligations under such contracts. Costs incurred that do not contribute to satisfying the Company’s performance obligations are excluded from the input methods of revenue recognition as the amounts are not reflective of transferring control under the contract. Costs incurred towards contract completion may include direct costs plus allowable indirect costs and an allocable portion of the fixed fee. If actual and estimated costs to complete a contract indicate a loss, provision is made currently for the loss anticipated on the contract.
No government contract revenue was recognized during the three and six months ended June 30, 2024 and 2023.
Accounts Receivable. As of June 30, 2024 and December 31, 2023, the Company had an accounts receivable, net balance of $22,324 and $0, respectively. As of June 30, 2024 and December 31, 2023, the Company had an allowance for doubtful accounts of $0 and $0, respectively.