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Form 10-Q Ascent Solar Technologie For: Jun 30

August 12, 2022 4:41 PM EDT

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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, 2022

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

OTC

 

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 12, 2022, there were 32,987,415 shares of our common stock issued and outstanding.

 

 

 


 

 

ASCENT SOLAR TECHNOLOGIES, INC.

Quarterly Report on Form 10-Q

For the Period Ended June 30, 2022

Table of Contents

 

PART I. FINANCIAL INFORMATION

 

Item 1.

Unaudited Condensed Consolidated Financial Statements

1

 

Unaudited Condensed Consolidated Balance Sheets - as of June 30, 2022 and December 31, 2021

1

 

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income - For the Three Months Ended June 30, 2022 and 2021

2

 

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) - for the Three Months Ended June 30, 2022 and 2021

3

 

Unaudited Condensed Consolidated Statements of Cash Flow - For the Three Months Ended June 30, 2022 and 2021

5

 

Notes to the Unaudited Condensed Consolidated Financial Statements

6

Item 2.

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

15

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

21

Item 4.

Controls and Procedures

21

PART II. OTHER INFORMATION

23

Item 1.

Legal Proceedings

23

Item 1A.

Risk Factors

23

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

23

Item 3.

Defaults Upon Senior Securities

23

Item 4.

Mine Safety Disclosures

23

Item 5.

Other Information

23

Item 6.

Exhibits

24

SIGNATURES

27

 

 

 

 


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:

 

The impact of the novel coronavirus (“COVID-19”) pandemic on our business, results of operations, cash flows, financial condition and liquidity;

 

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, including OEMs, system integrators, distributors, and e-commerce companies, who deal directly with end users in our target markets;

 

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 OTC 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 consumer electronics, 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 consumer electronics and 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, 2021.

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 Consolidated Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

429,272

 

 

$

5,961,760

 

Trade receivables, net of allowance of $26,000 and $26,000, respectively

 

 

836,074

 

 

 

49,250

 

Inventories, net

 

 

678,106

 

 

 

592,172

 

Prepaid and other current assets

 

 

807,510

 

 

 

247,736

 

Total current assets

 

 

2,750,962

 

 

 

6,850,918

 

 

 

 

 

 

 

 

 

 

Property, Plant and Equipment:

 

 

22,705,921

 

 

 

22,425,935

 

Accumulated depreciation

 

 

(22,171,192

)

 

 

(22,146,273

)

Property, Plant and Equipment, net

 

 

534,729

 

 

 

279,662

 

 

 

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

 

4,665,619

 

 

 

4,984,688

 

Patents, net of accumulated amortization of $144,634 and $135,050

   respectively

 

 

84,203

 

 

 

86,595

 

Equity method investment

 

 

91,409

 

 

 

21,205

 

Other non-current assets

 

 

625,000

 

 

 

625,000

 

Total Assets

 

$

8,751,922

 

 

$

12,848,068

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

827,761

 

 

$

642,165

 

Related party payables

 

 

52,127

 

 

 

45,000

 

Accrued expenses

 

 

1,511,052

 

 

 

991,534

 

Accrued interest

 

 

506,054

 

 

 

475,671

 

Notes payable

 

 

250,000

 

 

 

250,000

 

Current portion of operating lease liability

 

 

689,129

 

 

 

646,742

 

Total current liabilities

 

 

3,836,123

 

 

 

3,051,112

 

Long-Term Liabilities:

 

 

 

 

 

 

 

 

Non-current operating lease liabilities

 

 

4,188,419

 

 

 

4,532,490

 

Non-current convertible notes, net

 

 

963,148

 

 

 

8,076,847

 

Accrued warranty liability

 

 

21,225

 

 

 

21,225

 

Total liabilities

 

 

9,008,915

 

 

 

15,681,674

 

Stockholders’ Equity (Deficit):

 

 

 

 

 

 

 

 

Series A preferred stock, $.0001 par value; 750,000 shares authorized; 48,100

   and 48,100 shares issued and outstanding, respectively ($825,717 and

   $801,533 Liquidation Preference, respectively)

 

 

5

 

 

 

5

 

Common stock, $0.0001 par value, 500,000,000 authorized; 30,587,415

   and 4,786,804 shares issued and outstanding, respectively

 

 

3,059

 

 

 

479

 

Additional paid in capital

 

 

434,146,118

 

 

 

424,948,698

 

Accumulated deficit

 

 

(434,392,822

)

 

 

(427,782,788

)

Accumulated other comprehensive loss

 

 

(13,353

)

 

 

-

 

Total stockholders’ equity (deficit)

 

 

(256,993

)

 

 

(2,833,606

)

Total Liabilities and Stockholders’ Equity (Deficit)

 

$

8,751,922

 

 

$

12,848,068

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(unaudited)

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

2022

 

 

 

 

2021

 

 

2022

 

 

2021

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

$

627,571

 

 

 

 

$

380,488

 

 

$

681,781

 

 

$

545,646

 

Milestone and engineering

 

10,000

 

 

 

 

 

-

 

 

 

522,000

 

 

 

-

 

Total Revenues

 

637,571

 

 

 

 

 

380,488

 

 

 

1,203,781

 

 

 

545,646

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

576,994

 

 

 

 

 

423,861

 

 

 

1,109,885

 

 

 

496,643

 

Research, development and manufacturing operations

 

1,453,273

 

 

 

 

 

901,850

 

 

 

2,859,595

 

 

 

1,629,886

 

Selling, general and administrative

 

871,881

 

 

 

 

 

800,416

 

 

 

1,693,145

 

 

 

1,362,126

 

Depreciation and amortization

 

17,838

 

 

 

 

 

12,064

 

 

 

34,503

 

 

 

24,936

 

Total Costs and Expenses

 

2,919,986

 

 

 

 

 

2,138,191

 

 

 

5,697,128

 

 

 

3,513,591

 

Loss from Operations

 

(2,282,415

)

 

 

 

 

(1,757,703

)

 

 

(4,493,347

)

 

 

(2,967,945

)

Other Income/(Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expense), net

 

2,000

 

 

 

 

 

-

 

 

 

2,000

 

 

 

800

 

Interest expense

 

(32,370

)

 

 

 

 

(169,472

)

 

 

(2,118,685

)

 

 

(731,550

)

Change in fair value of derivatives and

   gain/(loss) on extinguishment of

   liabilities, net

 

-

 

 

 

 

 

234,236

 

 

 

-

 

 

 

3,852,140

 

Total Other Income/(Expense)

 

(30,370

)

 

 

 

 

64,764

 

 

 

(2,116,685

)

 

 

3,121,390

 

Income/(Loss) on Equity Method Investments

 

-

 

 

 

 

 

-

 

 

 

(2

)

 

 

 

 

Net Income/(Loss)

$

(2,312,785

)

 

 

 

$

(1,692,939

)

 

$

(6,610,034

)

 

$

153,445

 

Net Income/(Loss) Per Share (Basic)

$

(0.08

)

 

 

 

$

(0.46

)

 

$

(0.25

)

 

$

0.04

 

Net Income/(Loss) Per Share (Diluted)

$

(0.08

)

 

 

 

$

(0.46

)

 

$

(0.25

)

 

$

0.01

 

Weighted Average Common Shares

   Outstanding (Basic)

 

30,587,415

 

 

 

 

 

3,669,117

 

 

 

26,154,266

 

 

 

3,651,693

 

Weighted Average Common Shares

   Outstanding (Diluted)

 

30,587,415

 

 

 

 

 

3,669,117

 

 

 

26,154,266

 

 

 

32,668,360

 

Other Comprehensive Income/(Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain/(loss)

 

(6,256

)

 

 

 

 

-

 

 

 

(13,353

)

 

 

-

 

Net Comprehensive Income/(Loss)

$

(2,319,041

)

 

 

 

$

(1,692,939

)

 

$

(6,623,387

)

 

$

153,445

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

2


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

(unaudited)

For the Three and Six Months Ended June 30, 2022

 

 

 

Series A

Preferred Stock

 

 

Series 1A

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, 2022

 

 

48,100

 

 

$

5

 

 

 

3,700

 

 

$

-

 

 

 

4,787,415

 

 

$

479

 

 

$

424,948,698

 

 

$

(427,782,788

)

 

 

 

 

 

$

(2,833,606

)

Conversion of TubeSolar Series 1A

   Preferred Stock into Common

   Stock

 

 

-

 

 

 

-

 

 

 

(2,400

)

 

 

-

 

 

 

4,800,000

 

 

 

480

 

 

 

(480

)

 

 

-

 

 

 

-

 

 

 

-

 

Conversion of Crowdex Series 1A

   Preferred Stock into Common

   Stock

 

 

-

 

 

 

-

 

 

 

(1,300

)

 

 

-

 

 

 

2,600,000

 

 

 

260

 

 

 

(260

)

 

 

-

 

 

 

-

 

 

 

-

 

Conversion of BD1 Note

   into Common Stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,800,000

 

 

 

1,580

 

 

 

7,898,420

 

 

 

-

 

 

 

-

 

 

 

7,900,000

 

Conversion of Nanyang Note

   into Common Stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,200,000

 

 

 

120

 

 

 

599,880

 

 

 

-

 

 

 

-

 

 

 

600,000

 

Conversion of Fleur Note into

   Common Stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,400,000

 

 

 

140

 

 

 

699,860

 

 

 

-

 

 

 

-

 

 

 

700,000

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,297,249

)

 

 

-

 

 

 

(4,297,249

)

Foreign Currency Translation

   Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(7,097

)

 

 

(7,097

)

Balance at March 31, 2022

 

 

48,100

 

 

$

5

 

 

 

-

 

 

$

-

 

 

 

30,587,415

 

 

$

3,059

 

 

$

434,146,118

 

 

$

(432,080,037

)

 

$

(7,097

)

 

$

2,062,048

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,312,785

)

 

 

-

 

 

 

(2,312,785

)

Foreign Currency Translation

   Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6,256

)

 

 

(6,256

)

Balance at June 30, 2022

 

 

48,100

 

 

$

5

 

 

 

-

 

 

$

-

 

 

 

30,587,415

 

 

$

3,059

 

 

$

434,146,118

 

 

$

(434,392,822

)

 

$

(13,353

)

 

$

(256,993

)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(unaudited)

For the Three and Six Months Ended June 30, 2021

 

 

 

Series A

Preferred Stock

 

 

Series 1A

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders’

Equity

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

Balance at January 1, 2021

 

 

48,100

 

 

$

5

 

 

 

1,300

 

 

$

-

 

 

 

3,660,439

 

 

$

366

 

 

$

401,590,211

 

 

$

(421,782,785

)

 

$

(20,192,203

)

Proceeds from Issuance of

   Series 1A Preferred

   Stock

 

 

-

 

 

 

-

 

 

 

2,500

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,500,000

 

 

 

-

 

 

 

2,500,000

 

Proceeds from Issuance of

   Common Stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,500

 

 

 

2

 

 

 

2,999,998

 

 

 

-

 

 

 

3,000,000

 

Conversion of Global

   Ichiban Note into

   Common Shares

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

33,600

 

 

 

3

 

 

 

5,799,997

 

 

 

-

 

 

 

5,800,000

 

Relieved on Conversion of

   Derivative Liability

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,686,079

 

 

 

-

 

 

 

1,686,079

 

Net Income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,846,384

 

 

 

1,846,384

 

Balance at March 31, 2021

 

 

48,100

 

 

$

5

 

 

 

3,800

 

 

$

-

 

 

 

3,695,539

 

 

$

371

 

 

$

414,576,285

 

 

$

(419,936,401

)

 

$

(5,359,740

)

Net Income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,692,939

)

 

 

(1,692,939

)

Balance at June 30, 2021

 

 

48,100

 

 

$

5

 

 

 

3,800

 

 

$

-

 

 

 

3,695,539

 

 

$

371

 

 

$

414,576,285

 

 

$

(421,629,340

)

 

$

(7,052,679

)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

4


Table of Contents

ASCENT SOLAR TECHNOLOGIES, INC.

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)