Ascent Solar Technologies, Inc 10-Q for FY2021 Q3

About this 10-Q

Headline figures

Ascent Solar Technologies, Inc. (ASTI)

10-Q 2021-11-10 For: 2021-09-30

Added on April 08, 2026

Ascent Solar Technologies, Inc filed this 10-Q on November 10, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $11.72K; up 86.3% from $6293 a year earlier
Net loss: $2.56M; compared with net income of $2.59M a year earlier
Diluted EPS: $0.00; compared with $0.00 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
Item 1.	Unaudited Condensed Consolidated Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets - as of September 30, 2021 and December 31, 2020	1
	Unaudited Condensed Consolidated Statements of Operations - For the Three and Nine Months Ended September 30, 2021 and September 30, 2020	2
	Unaudited Condensed Consolidated Statements of Changes in Stockholder's Deficit - for the Three and Nine Months Ended September 30, 2021 and September 30, 2020	3
	Unaudited Condensed Consolidated Statements of Cash Flow - For the Nine Months Ended September 30, 2021 and September 30, 2020	5
	Notes to the Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
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	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25
SIGNATURES		27

	September 30,			December 31,
	2021			2020
ASSETS
Current Assets:
Cash and cash equivalents	$	4,281,094		$	167,725
Trade receivables, net of allowance of $26,000 and $45,833, respectively		3,971			5,539
Inventories, net		615,674			534,431
Prepaid and other current assets		189,730			71,575
Total current assets		5,090,469			779,270

Property, Plant and Equipment:		24,148,192			24,867,176
Accumulated depreciation		(23,964,362	)		(24,848,408	)
Property, Plant and Equipment, net		183,830			18,768

Other Assets:
Operating lease right-of-use assets, net		5,150,718			5,633,663
Patents, net of accumulated amortization of $495,745 and $467,102, respectively		393,545			439,836
Other non-current assets		625,000			500,000
Total Assets	$	11,443,562		$	7,371,537
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable	$	650,720		$	736,986
Related party payables		45,000			135,834
Accrued expenses		1,031,017			1,518,212
Accrued interest		479,872			438,063
Notes payable		250,000			250,000
Current portion of operating lease liability		628,438			575,404
Promissory notes, net		-			193,200
Convertible notes, net		250,000			-
Embedded derivative liability		-			5,303,984
Total current liabilities		3,335,047			9,151,683
Long-Term Liabilities:
Non-current operating lease liabilities		4,698,431			5,179,229
Non-current secured promissory notes, net		-			5,405,637
Non-current convertible notes, net		8,006,452			7,813,048
Accrued warranty liability		21,225			14,143
Total liabilities		16,061,155			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 ($789,241 and $752,765 Liquidation Preference, respectively)		5			5
Common stock, $0.0001 par value, 30,000,000,000 authorized; 19,678,916,809 and 18,102,583,473 shares issued and outstanding, respectively		1,967,891			1,810,258
Additional paid in capital		417,608,765			399,780,319
Accumulated deficit		(424,194,254	)		(421,782,785	)
Total stockholders’ deficit		(4,617,593	)		(20,192,203	)
Total Liabilities and Stockholders’ Deficit	$	11,443,562		$	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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Revenues
Products	$	11,723		$	6,293		$	557,369		$	60,445
Total Revenues		11,723			6,293			557,369			60,445
Costs and Expenses
Costs of revenue		687,885			5,528			1,184,528			101,156
Research, development and manufacturing operations		1,086,513			150,060			2,716,395			485,592
Selling, general and administrative		882,641			315,660			2,244,771			505,053
Depreciation and amortization		15,111			26,325			40,047			137,978
Total Costs and Expenses		2,672,150			497,573			6,185,741			1,229,779
Loss from Operations		(2,660,427	)		(491,280	)		(5,628,372	)		(1,169,334	)
Other Income/(Expense)
Other income/(expense), net		67,644			3,055,366			68,443			3,314,966
Interest expense		(167,983	)		(963,648	)		(899,533	)		(3,227,112	)
Change in fair value of derivatives and gain/(loss) on extinguishment of liabilities, net		195,852			990,183			4,047,993			8,707,333
Total Other Income/(Expense)		95,513			3,081,901			3,216,903			8,795,187
Net Income/(Loss)	$	(2,564,914	)	$	2,590,621		$	(2,411,469	)	$	7,625,853
Net Income/(Loss) Per Share (Basic)	$	(0.00	)	$	0.00		$	(0.00	)	$	0.00
Net Income/(Loss) Per Share (Diluted)	$	(0.00	)	$	0.00		$	(0.00	)	$	0.00
Weighted Average Common Shares Outstanding (Basic)		19,074,521,203			5,230,490,450			18,531,805,287			5,053,300,857
Weighted Average Common Shares Outstanding (Diluted)		19,074,521,203			66,848,261,292			18,531,805,287			65,693,072,463

	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		-		-		-			-		-		-		-			153,445			153,445
Balance at June 30, 2021		48,100		5		3,800			-		18,345,583,473		1,834,558		412,742,098			(421,629,340	)		(7,052,679	)
Proceeds from issuance of Common Shares		-		-		-			-		333,333,336		33,333		4,966,667			-			5,000,000
Conversion of TubeSolar Series 1A Preferred Stock into Common Shares		-		-		(100	)		-		1,000,000,000		100,000		(100,000	)
Net Loss		-		-		-			-		-		-		-			(2,564,914	)		(2,564,914	)
Balance at September 30, 2021		48,100	$	5		3,700		$	-		19,678,916,809	$	1,967,891	$	417,608,765		$	(424,194,254	)	$	(4,617,593	)

	For the Nine Months Ended
	September 30,
	2021			2020
Operating Activities:
Net income/(loss)	$	(2,411,469	)	$	7,625,853
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization		40,047			137,978
Operating lease asset amortization		482,945			28,710
Realized (gain) on sale and foreclosure of assets		—			(3,314,966	)
Amortization of deferred financing costs		—			2,692
Non-cash interest expense		—			807,368
Amortization of debt discount		837,767			1,331,417
Bad debt expense		—			(141	)
Warranty reserve		7,082			(7,654	)
Change in fair value of derivatives and gain on extinguishment of liabilities, net		(4,047,993	)		(8,707,333	)
Changes in operating assets and liabilities:
Accounts receivable		1,568			(5,608	)
Inventories		(81,243	)		23,843
Prepaid expenses and other current assets		(243,155	)		(283,912	)
Accounts payable		(86,266	)		(388,113	)
Related party payable		(90,834	)		—
Operating lease liabilities		(427,764	)		(16,129	)
Accrued interest		44,461			1,008,568
Accrued expenses		(252,959	)		283,439
Net cash (used in) operating activities		(6,227,813	)		(1,473,988	)
Investing Activities:
Proceeds on sale of assets		—			254,600
Payments on purchase of assets		(176,466	)		—
Patent activity costs		17,648			(156	)
Net cash (used in) provided by investing activities		(158,818	)		254,444
Financing Activities:
Repayment of debt		—			(145,000	)
Proceeds from issuance of debt		—			443,200
Proceeds from issuance of stock		10,500,000			2,000,000
Net cash provided by financing activities		10,500,000			2,298,200
Net change in cash and cash equivalents		4,113,369			1,078,656
Cash and cash equivalents at beginning of period		167,725			—
Cash and cash equivalents at end of period	$	4,281,094		$	1,078,656
Non-Cash Transactions:
Non-cash conversions of preferred stock and convertible notes to equity	$	5,800,000		$	47,132
Non-cash forgiveness of PPP loan	$	193,200
Operating lease assets obtained in exchange for operating lease liabilities				$	(5,819,489	)
Non-cash mortgage derecognition				$	(6,443,897	)
Non-cash property foreclosure				$	6,443,897

	As of September 30,			As of December 31,
	2021			2020
Furniture, fixtures, computer hardware and computer software	$	437,532		$	489,421
Manufacturing machinery and equipment		23,607,580			-
Manufacturing machinery and equipment, in progress		103,080			24,377,755
Depreciable property, plant and equipment		24,148,192			24,867,176
Less: Accumulated depreciation and amortization		(23,964,362	)		(24,848,408	)
Net property, plant and equipment	$	183,830		$	18,768

Remainder of 2021	$	240,000
2022		988,800
2023		1,018,464
2024		1,049,018
2025		1,080,488
Thereafter		2,259,194
Total lease payments		6,635,964
Less amounts representing interest		(1,309,095	)
Present value of lease liability	$	5,326,869

	Principal Balance 12/31/2020		Less: Discount Balance			Net Principal Balance 12/31/2020		Principal Balance 9/30/2021		Less: Discount Balance			Net Principal Balance 9/30/2021
BD 1 Notes (related party)	$	10,500,000	$	(2,936,952	)	$	7,563,048	$	9,900,000	$	(2,351,060	)	$	7,548,940
Nanyang Notes		-		-			-		600,000		(142,488	)		457,512
Crowdex Note (related party)		250,000		—			250,000		250,000		—			250,000
	$	10,750,000	$	(2,936,952	)	$	7,813,048	$	10,750,000	$	(2,493,548	)	$	8,256,452

Derivative Liability Balance as of December 31, 2020	$	5,303,984
Liability extinguished		(5,303,984	)
Derivative Liability Balance as of September 30, 2021	$	—

Preferred Stock Series Designation	Shares Authorized		Shares Outstanding
Series A		750,000		48,100
Series 1A		5,000		3,700
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		—

	As of September 30,		As of December 31,
	2021		2020
Raw materials	$	614,656	$	525,626
Work in process		992		-
Finished goods		26		8,805
Total	$	615,674	$	534,431


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)

3.16		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated September 23, 2021 (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed September 24, 2021)


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 (filed as 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		Common Stock Securities Purchase Agreement dated August 2, 2021 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed August 5, 2021)

10.2+		Long-Term Supply and Joint Development Agreement dated September 15, 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

+		Certain portions of the exhibit have been omitted pursuant to Rule 601(b)(10) of Regulation S-K. The omitted information is (i) not material and (ii) would likely cause competitive harm to the Company if publicly disclosed.

	ASCENT SOLAR TECHNOLOGIES, INC.

November 10, 2021	By:	/s/ VICTOR LEE
		Lee Kong Hian (aka Victor Lee) President and Chief Executive Officer (Principal Executive Officer)

November 10, 2021	By:	/s/ MICHAEL J. GILBRETH
		Michael J. Gilbreth Chief Financial Officer (Principal Financial and Accounting Officer)


Milestone	Milestone Payment
Upon delivery of 5000 pcs of CIGS FOILS of 244 X 45 mm dimension [***], subject to meeting the technical specification requirements of the said Purchase Order	$[***]
Upon first delivery (5000 pcs) of custom designed CIGS PV foil modules in accordance with TubeSolar's specification, 975 mm length in one piece, not glued (see Appendix C)	$[***]
Upon first delivery (5000 pcs) of custom designed CIGS PV foils in accordance with TubeSolar's specification, 975 mm length in one roll, not glued (see Appendix D)	$[***]