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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

 

 

 

 

 

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

 

 

 

 

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)

 

 

 

 

 

 

Delaware

 

20-3672603

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

12300 Grant Street, Thornton, CO

 

80241

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number including area code: 720-872-5000

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

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:

 

Large accelerated filer

 

Accelerated filer

 

 

 

 

 

 

 

 

Non-accelerated filer

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

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

 

PART I. FINANCIAL INFORMATION

 

Item 1.

Unaudited Condensed Financial Statements

1

Unaudited Condensed Balance Sheets - as of June 30, 2024 and December 31, 2023

1

Unaudited Condensed Statements of Operations and Comprehensive Income - For the Three and Six Months Ended June 30, 2024 and 2023

2

Unaudited Condensed Statements of Changes in Stockholders’ Equity (Deficit) - For the Three and Six Months Ended June 30, 2024 and 2023

3

Unaudited Condensed Statements of Cash Flow - For the Six Months Ended June 30, 2024 and 2023

5

Notes to the Unaudited Condensed Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

22

Item 4.

Controls and Procedures

22

PART II. OTHER INFORMATION

24

Item 1.

Legal Proceedings

24

Item 1A.

Risk Factors

24

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

25

Item 3.

Defaults Upon Senior Securities

25

Item 4.

Mine Safety Disclosures

25

Item 5.

Other Information

26

Item 6.

Exhibits

27

SIGNATURES

32

 

 

 

 


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.

 


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

CONDENSED BALANCE SHEETS

(unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,785,058

 

 

$

1,048,733

 

Trade receivables, net of allowance of $0 and $0, respectively

 

 

22,324

 

 

 

-

 

Inventories, net

 

 

460,856

 

 

 

447,496

 

Prepaid and other current assets

 

 

149,451

 

 

 

39,279

 

Total current assets

 

 

6,417,689

 

 

 

1,535,508

 

 

 

 

 

 

 

 

Property, Plant and Equipment:

 

 

19,679,497

 

 

 

21,177,892

 

Accumulated depreciation

 

 

(19,412,704

)

 

 

(20,131,008

)

Property, Plant and Equipment, net

 

 

266,793

 

 

 

1,046,884

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

 

2,129,854

 

 

 

2,364,672

 

Patents, net of accumulated amortization of $178,704 and $173,387
   respectively

 

 

48,661

 

 

 

53,978

 

Equity method investment

 

 

64,931

 

 

 

68,867

 

Other non-current assets

 

 

1,228,399

 

 

 

1,228,797

 

 

 

 

3,471,845

 

 

 

3,716,314

 

Total Assets

 

$

10,156,327

 

 

$

6,298,706

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

657,140

 

 

$

579,237

 

Related party payables

 

 

5,769

 

 

 

4,231

 

Accrued expenses

 

 

1,096,959

 

 

 

1,354,159

 

Accrued payroll

 

 

238,834

 

 

 

160,477

 

Accrued professional services fees

 

 

161,258

 

 

 

849,282

 

Accrued interest

 

 

638,633

 

 

 

628,145

 

Current portion of operating lease liability

 

 

533,503

 

 

 

491,440

 

Conversions payable (Note 12)

 

 

-

 

 

 

1,089,160

 

Current portion of convertible notes, net

 

 

-

 

 

 

354,936

 

Bridge loan

 

 

637,751

 

 

 

-

 

Other payable

 

 

250,000

 

 

 

250,000

 

Total current liabilities

 

 

4,219,847

 

 

 

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.

1


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

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.

2


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

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.

3


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

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.

4


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

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.

5


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

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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.