Ascent Solar Technologies, Inc 10-Q for FY2021 Q1

About this 10-Q

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Ascent Solar Technologies, Inc. (ASTI)

10-Q 2021-05-24 For: 2021-03-31

Added on April 08, 2026

Ascent Solar Technologies, Inc filed this 10-Q on May 24, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $165.16K; up 3938.1% from $4090 a year earlier
Net income: $1.85M; down 71.1% from net income of $6.39M a year earlier

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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)

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common	ASTI	OTC

PART I. FINANCIAL INFORMATION		1
Item 1.	Condensed Consolidated Financial Statements (unaudited)	1
	Condensed Consolidated Balance Sheets - as of March 31, 2021 (unaudited) and December 31, 2020	1
	Condensed Consolidated Statements of Operations - For the Three months ended March 31, 2021 (unaudited) and March 31, 2020	2
	Condensed Consolidated Statements of Changes in Stockholder's Deficit - for the Three months ended March 31, 2021 (unaudited) and March 31, 2020	3
	Condensed Consolidated Statements of Cash Flow - For the Three months ended March 31, 2021 (unaudited) and March 31, 2020	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	27
PART II. OTHER INFORMATION		29
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30
SIGNATURES		32

	March 31,			December 31,
	2021			2020
ASSETS
Current Assets:
Cash and cash equivalents	$	3,658,431		$	167,725
Trade receivables, net of allowance of $26,000 and $45,883, respectively		17,639			5,539
Inventories		664,800			534,431
Prepaid and other current assets		108,167			71,575
Total current assets		4,449,037			779,270
Property, Plant and Equipment:		24,867,176			24,867,176
Accumulated depreciation		(24,851,132	)		(24,848,408	)
		16,044			18,768
Other Assets:
Operating lease right-of-use assets, net		5,475,161			5,633,663
Patents, net of accumulated amortization of $477,250 and $467,102, respectively		412,040			439,836
Other non-current assets		625,000			500,000
		6,512,201			6,573,499
Total Assets		10,977,282			7,371,537
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable	$	622,650		$	736,986
Related party payables		32,500			135,834
Accrued expenses		1,206,139			1,518,212
Accrued interest		443,476			438,063
Notes payable		250,000			250,000
Current portion of operating lease liability		592,774			575,404
Promissory notes, net		193,200			193,200
Embedded derivative liability		-			5,303,984
Total current liabilities		3,340,739			9,151,683
Long-Term Liabilities:
Non-current operating lease liabilities		5,021,754			5,179,229
Non-current secured promissory notes, net		-			5,405,637
Non-current convertible notes, net		7,960,849			7,813,048
Accrued warranty liability		13,680			14,143
Total liabilities		16,337,022			27,563,740
Stockholders’ Deficit:
Series A preferred stock, $.0001 par value; 750,000 shares authorized; 48,100 and 48,100 shares issued and outstanding, respectively ($764,790 and $752,765 Liquidation Preference, respectively)		5			5
Common stock, $0.0001 par value, 20,000,000,000 authorized; 18,345,583,473 and 18,102,583,473 shares issued and outstanding, respectively		1,834,558			1,810,258
Additional paid in capital		412,742,098			399,780,319
Accumulated deficit		(419,936,401	)		(421,782,785	)
Total stockholders’ deficit		(5,359,740	)		(20,192,203	)
Total Liabilities and Stockholders’ Deficit	$	10,977,282		$	7,371,537




☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the Three Months Ended March 31,
	2021			2020
Revenues
Products	$	165,158		$	4,090
Total Revenues		165,158			4,090
Costs and Expenses
Costs of revenue		72,782			72,706
Research, development and manufacturing operations		728,036			159,464
Selling, general and administrative		561,709			69,522
Depreciation and amortization		12,872			56,263
Total Costs and Expenses		1,375,399			357,955
Loss from Operations		(1,210,241	)		(353,865	)
Other Income/(Expense)
Other income/(expense), net		800			259,600
Interest expense		(562,079	)		(1,230,692	)
Change in fair value of derivatives and gain on extinguishment of liabilities, net		3,617,904			7,717,150
Total Other Income/(Expense)		3,056,625			6,746,058
Net Income	$	1,846,384		$	6,392,193
Net Income Per Share (Basic)	$	-		$	-
Net Income Per Share (Diluted)	$	-		$	-
Weighted Average Common Shares Outstanding (Basic)		18,168,650,140			4,759,161,650
Weighted Average Common Shares Outstanding (Diluted)		162,557,539,029			56,998,995,050

	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 December 31, 2020		48,100	$	5		1,300	$	-		18,102,583,473	$	1,810,258	$	399,780,319	$	(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		-		-		-		-		75,000,000		7,500		2,992,500		-			3,000,000
Conversion of Global Ichiban Note into Common Shares		-		-		-		-		168,000,000		16,800		5,783,200		-			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	$	-		18,345,583,473	$	1,834,558	$	412,742,098	$	(419,936,401	)	$	(5,359,740	)

	For the Three Months Ended
	March 31,
	2021			2020
Operating Activities:
Net income/(loss)	$	1,846,384		$	6,392,193
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization		12,874			56,265
Operating lease asset amortization		158,502			—
Realized (gain) on sale and foreclosure of assets		—			(254,600	)
Amortization of deferred financing costs		—			2,692
Non-cash interest expense		—			117,514
Amortization of debt discount		542,164			771,447
Bad debt expense		—			(141	)
Warranty reserve		(463	)		(7,260	)
Gain on extinguishment of liabilities, net		(3,617,904	)		(7,717,150	)
Changes in operating assets and liabilities:
Accounts receivable		(12,100	)		141
Inventories		(130,369	)		23,860
Prepaid expenses and other current assets		(161,592	)		5,365
Accounts payable		(114,339	)		(293,125	)
Related party payable		(103,334	)		—
Operating lease liabilities		(140,105	)		—
Accrued interest		5,413			333,435
Accrued expenses		(312,073	)		319,921
Net cash (used in) operating activities		(2,026,942	)		(249,443	)
Investing Activities:
Proceeds on sale of Assets		—			254,600
Patent activity costs		17,648			(157	)
Net cash provided by investing activities		17,648			254,443
Financing Activities:
Repayment of debt		—			(5,000	)
Proceeds from issuance of stock		5,500,000			—
Net cash provided by (used in) financing activities		5,500,000			(5,000	)
Net change in cash and cash equivalents		3,490,706			—
Cash and cash equivalents at beginning of period		167,725			—
Cash and cash equivalents at end of period	$	3,658,431		$	—
Supplemental Cash Flow Information:
Non-Cash Transactions:
Non-cash conversions of preferred stock and convertible notes to equity	$	5,800,000		$	—

	As of March 31,			As of December 31,
	2021			2020
Building	$	-		$	-
Furniture, fixtures, computer hardware and computer software		489,421			489,421
Manufacturing machinery and equipment		24,377,755			24,377,755
Depreciable property, plant and equipment		24,867,176			24,867,176
Less: Accumulated depreciation and amortization		(24,851,132	)		(24,848,408	)
Net property, plant and equipment	$	16,044		$	18,768

Remainder of 2021	$	720,000
2022	$	988,800
2023	$	1,018,464
2024	$	1,049,018
2025	$	1,080,488
Thereafter	$	2,259,194
Total lease payments	$	7,115,964
Less amounts representing interest	$	(1,501,436	)
Present value of lease liability	$	5,614,528

	Global Ichiban			St. George			BD 1			Total
Secured Notes Principal Balance at December 31, 2019	$	5,012,897		$	2,160,000		$	—		$	7,172,897
New notes		6,400,000			—			—			6,400,000
Note conversions		(600,000	)		—			—			(600,000	)
Note assignments		—			(2,160,000	)		2,160,000			—
Notes Exchanged		(5,012,897	)		—			(2,160,000	)		(7,172,897	)
Secured Notes Principal Balance at December 31, 2020		5,800,000			—			—			5,800,000
Less: remaining discount		(394,363	)		—			—			(394,363	)
Secured Notes, net of discount, at December 31, 2020		5,405,637			—			—			5,405,637
Note conversions		(5,800,000	)		—			—			(5,800,000	)
Secured Notes Principal Balance at March 31, 2021		—			—			—			—
Less: remaining discount		—			—			—			—
Secured Notes, net of discount, at March 31, 2021	$	—		$	—		$	—		$	—

	Investor 1			Investor 2			BD 1			SBA		Total
Promissory Notes Principal Balance at December 31, 2019	$	494,437		$	615,000		$	—		$	—	$	1,109,437
New principal		—			35,000			—			193,200		228,200
Notes assigned		(494,437	)		(650,000	)		1,144,437			—		—
Notes exchanged		—			—			(1,144,437	)		—		(1,144,437	)
Promissory Notes Principal Balance at December 31, 2020		—			—			—			193,200		193,200
Less: remaining discount		—			—			—			—		—
Promissory Notes Principal Balance at December 31, 2020		—			—			—			193,200		193,200
New principal		—			—			—			—		—
Notes exchanged		—			—			—			—		—
Promissory Notes Principal Balance at March 31, 2021		—			—			—			193,200		193,200
Less: remaining discount		—			—			—			—		—
Promissory Notes, net of discount, at March 31, 2021	$	—		$	—		$	—		$	193,200	$	193,200

	Principal Balance 12/31/2019		New Notes		Notes assigned or exchanged			Notes converted			Principal Balance 12/31/2020		Less: Discount Balance			Net Principal Balance 12/31/2020
October 2016 Notes	$	330,000	$	—	$	(330,000	)	$	—		$	—	$	—		$	—
St. George Notes		617,663		—		(617,663	)		—			—		—			—
BayBridge Notes		940,600		—		(940,600	)		—			—		—			—
Bellridge Notes		496,000		—		(451,000	)		(45,000	)		—		—			—
Power Up Notes		106,820		—		(106,820	)		—			—		—			—
Widjaja Note		330,000		—		(330,000	)		—			—		—			—
GS Capital Notes		169,500		—		(169,500	)		—			—		—			—
Penumbra Note (related party)		—		250,000		(250,000	)		—			—		—			—
BD 1 Notes (related party)		—		10,500,000		—			—			10,500,000		(2,936,952	)		7,563,048
Crowdex Note (related party)		—		—		250,000			—			250,000		—			250,000
	$	2,990,583	$	10,750,000	$	(2,945,583	)	$	(45,000	)	$	10,750,000	$	(2,936,952	)	$	7,813,048

	As of March 31,		As of December 31,
	2021		2020
Raw materials	$	594,700	$	525,626
Work in process		14,690		—
Finished goods		55,410		8,805
Total	$	664,800	$	534,431

	Principal Balance 12/31/2020		New Notes/Adjustments		Notes assigned or exchanged		Notes converted		Principal Balance 3/31/2021		Less: Discount Balance			Net Principal Balance 3/31/2021
BD 1 Notes (related party)		10,500,000		—		—		—		10,500,000		(2,789,151	)		7,710,849
Crowdex Note (related party)		250,000		—		—		—		250,000		—			250,000
	$	10,750,000	$	—	$	—	$	—	$	10,750,000	$	(2,789,151	)	$	7,960,849

Derivative Liability Balance as of December 31, 2020		5,303,984
Liability extinguished		(5,303,984	)
Derivative Liability Balance as of March 31, 2021	$	—

Preferred Stock Series Designation	Shares Authorized		Shares Outstanding
Series A		750,000		48,100
Series 1A		5,000		3,800
Series B-1		2,000		—
Series B-2		1,000		—
Series C		1,000		—
Series D		3,000		—
Series D-1		2,500		—
Series E		2,800		—
Series F		7,000		—
Series G		2,000		—
Series H		2,500		—
Series I		1,000		—
Series J		1,350		—
Series J-1		1,000		—
Series K		20,000		—

	For the Three Months Ended March 31,
	2021		2020
Research and development	$	—	$	—
Selling, general and administrative		—		—
Total share-based compensation cost	$	—	$	—

	Stock Option Shares		Weighted Average Remaining Contractual Life in Years
Outstanding at December 31, 2019		97	5.18
Granted		—
Exercised		—
Canceled		—
Outstanding at December 31, 2020		97	4.43
Granted		—
Exercised		—
Canceled		—
Outstanding and Exercisable at March 31, 2021		97	4.18

	Increase (Decrease) in Net Income For the Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020
Revenues		161,068
Cost of Revenue		(76	)
Research, development and manufacturing operations		(568,572	)
Selling, general and administrative expenses		(492,187	)
Depreciation and Amortization Expense		43,391
Other Income / Expense
Other income		(258,800	)
Interest Expense		668,613
Non-Cash Change in Fair Value of Derivatives and Gain/Loss on Extinguishment of Liabilities, net		(4,099,246	)
Decrease in Net Income		(4,545,809	)


Exhibit No.		Description

3.1		Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.2 to our Registration Statement on Form SB-2 filed on January 23, 2006 (Reg. No. 333-131216))

3.2		Certificate of Amendment to the Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2011)

3.3		Certificate of Amendment to the Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed February 11, 2014)

3.4		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated August 26, 2014. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed September 2, 2014)

3.5		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated October 27, 2014 (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K dated October 28, 2014)

3.6		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated December 22, 2014. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K dated December 23, 2014)

3.7		Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to our Current Report on Form 8-K filed on February 17, 2009)

3.8		First Amendment to Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.3 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2009)

3.9		Second Amendment to Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed January 25, 2013)

3.10		Third Amendment to Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed December 18, 2015)

3.11		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated May 26, 2016 (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed June 2, 2016)

3.12		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated September 15, 2016 (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed September 16, 2016)

3.13		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated March 16, 2017 (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed March 17, 2017)

3.14		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated July 19, 2018 (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed July 23, 2018)

3.15		Certificate of Designations of Preferences, Rights, and Limitations of Series 1A Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed September 30, 2020)

4.1		Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to our Registration Statement on Form SB-2/A filed on June 6, 2006 (Reg. No. 333-131216))

4.2		Certificate of Designations of Series A Preferred Stock (incorporated by reference to Exhibit 4.2 to our Registration Statement on Form S-3 filed July 1, 2013 (Reg. No. 333-189739))


4.3		Description of Securities (incorporated by reference to Exhibit 4.3 to our Annual Report on Form 10-k filed May 13, 2021)

10.1		Tranche 2 Series 1A Securities Purchase Agreement dated January 4, 2021 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed January 6, 2021)

10.2		Common Stock Purchase Agreement dated March 4, 2021 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed March 10, 2021)

10.3		Settlement Agreement dated March 9, 2021 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed March 10, 2021)

31.1*		Chief Executive Officer Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Chief Financial Officer Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002

32.1*		Chief Executive Officer Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Chief Financial Officer Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002

101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

*		Filed herewith

	ASCENT SOLAR TECHNOLOGIES, INC.

May 24, 2021	By:	/s/ VICTOR LEE
		Lee Kong Hian (aka Victor Lee) President and Chief Executive Officer (Principal Executive Officer)

May 24, 2021	By:	/s/ MICHAEL J. GILBRETH
		Michael J. Gilbreth Chief Financial Officer (Principal Financial and Accounting Officer)


1	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


2	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



May 24, 2021
		/s/ VICTOR LEE
		Victor Lee President and Chief Executive Officer (Principal Executive Officer)