Ascent Solar Technologies, Inc 10-Q for FY2022 Q1

About this 10-Q

Headline figures

Ascent Solar Technologies, Inc. (ASTI)

10-Q 2022-05-12 For: 2022-03-31

Added on April 08, 2026

Ascent Solar Technologies, Inc filed this 10-Q on May 12, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $566.21K; up 242.8% from $165.16K a year earlier
Net loss: $4.3M; compared with net income of $1.85M a year earlier
Diluted EPS: -$0.20; compared with $0.05 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 March 31, 2022 and December 31, 2021	1
	Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income - For the Three Months Ended March 31, 2022 and 2021	2
	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) - for the Three Months Ended March 31, 2022 and 2021	3
	Unaudited Condensed Consolidated Statements of Cash Flow - For the Three Months Ended March 31, 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	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4.	Controls and Procedures	19
PART II. OTHER INFORMATION		21
Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3.	Defaults Upon Senior Securities	21
Item 4.	Mine Safety Disclosures	21
Item 5.	Other Information	21
Item 6.	Exhibits	22
SIGNATURES		25

	March 31,			December 31,
	2022			2021
ASSETS
Current Assets:
Cash and cash equivalents	$	3,028,362		$	5,961,760
Trade receivables, net of allowance of $26,000 and $26,000, respectively		561,254			49,250
Inventories, net		637,620			592,172
Prepaid and other current assets		659,538			247,736
Total current assets		4,886,774			6,850,918

Property, Plant and Equipment:		22,483,386			22,425,935
Accumulated depreciation		(22,158,146	)		(22,146,273	)
Property, Plant and Equipment, net		325,240			279,662

Other Assets:
Operating lease right-of-use assets, net		4,816,017			4,984,688
Patents, net of accumulated amortization of $139,842 and $135,050 respectively		82,111			86,595
Equity method investment		97,665			21,205
Other non-current assets		625,000			625,000
Total Assets	$	10,832,807		$	12,848,068
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	600,600		$	642,165
Related party payables		45,000			45,000
Accrued expenses		1,395,350			991,534
Accrued interest		490,778			475,671
Notes payable		250,000			250,000
Current portion of operating lease liability		665,585			646,742
Total current liabilities		3,447,313			3,051,112
Long-Term Liabilities:
Non-current operating lease liabilities		4,356,168			4,532,490
Non-current convertible notes, net		946,053			8,076,847
Accrued warranty liability		21,225			21,225
Total liabilities		8,770,759			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 ($813,558 and $801,533 Liquidation Preference, respectively)		5			5
Common stock, $0.0001 par value, 500,000,000 authorized; 30,586,804 and 4,786,804 shares issued and outstanding, respectively		3,059			479
Additional paid in capital		434,146,118			424,948,698
Accumulated deficit		(432,080,037	)		(427,782,788	)
Accumulated other comprehensive loss		(7,097	)		-
Total stockholders’ equity (deficit)		2,062,048			(2,833,606	)
Total Liabilities and Stockholders’ Equity (Deficit)	$	10,832,807		$	12,848,068




☒	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 March 31,
	2022			2021
Revenues
Products	$	54,210		$	165,158
Milestone and engineering		512,000			-
Total Revenues		566,210			165,158
Costs and Expenses
Costs of revenue		532,890			72,782
Research, development and manufacturing operations		1,406,322			728,036
Selling, general and administrative		821,266			561,709
Depreciation and amortization		16,665			12,872
Total Costs and Expenses		2,777,143			1,375,399
Loss from Operations		(2,210,933	)		(1,210,241	)
Other Income/(Expense)
Other income/(expense), net		-			800
Interest expense		(2,086,314	)		(562,079	)
Change in fair value of derivatives and gain/(loss) on extinguishment of liabilities, net		-			3,617,904
Total Other Income/(Expense)		(2,086,314	)		3,056,625
Income/(Loss) on Equity Method Investments		(2	)		-
Net Income/(Loss)	$	(4,297,249	)	$	1,846,384
Net Income/(Loss) Per Share (Basic)	$	(0.20	)	$	0.51
Net Income/(Loss) Per Share (Diluted)	$	(0.20	)	$	0.05
Weighted Average Common Shares Outstanding (Basic)		21,671,248			3,633,730
Weighted Average Common Shares Outstanding (Diluted)		21,671,248			32,511,508
Other Comprehensive Income/(Loss)
Foreign currency translation gain/(loss)		(7,097	)		-
Net Comprehensive Income/(Loss)	$	(4,304,346	)	$	1,846,384

	Series A Preferred Stock				Series 1A Preferred Stock					Common Stock				Additional Paid-In			Accumulated			Other Comprehensive			Total Stockholders’ Equity
	Shares		Amount		Shares			Amount		Shares		Amount		Capital			Deficit			Loss			(Deficit)
Balance at January 1, 2022		48,100	$	5		3,700		$	-		4,786,804	$	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 Income		-		-		-			-		-		-		-			(4,297,249	)		-			(4,297,249	)
Foreign currency translation gain/(loss)		-		-		-			-		-		-		-			-			(7,097	)		(7,097	)
Balance at March 31, 2022		48,100	$	5		-		$	-		30,586,804	$	3,059	$	434,146,118		$	(432,080,037	)	$	(7,097	)	$	2,062,048

	For the Three Months Ended
	March 31,
	2022			2021
Operating Activities:
Net income/(loss)	$	(4,297,249	)	$	1,846,384
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization		16,665			12,874
Operating lease asset amortization		168,671			158,502
Amortization of debt discount		2,069,206			542,164
Loss on equity method investment		2			—
Warranty reserve		—			(463	)
Gain on extinguishment of liabilities, net		—			(3,617,904	)
Changes in operating assets and liabilities:
Accounts receivable		(512,004	)		(12,100	)
Inventories		(45,448	)		(130,369	)
Prepaid expenses and other current assets		(411,802	)		(161,592	)
Accounts payable		(41,565	)		(96,691	)
Related party payable		—			(103,334	)
Operating lease liabilities		(157,479	)		(140,105	)
Accrued interest		15,107			5,413
Accrued expenses		403,816			(312,073	)
Net cash used in operating activities		(2,792,080	)		(2,009,294	)
Investing Activities:
Contributions to equity method investment		(83,559	)		—
Payments on purchase of assets		(57,451	)		—
Patent activity costs		(308	)		—
Net cash used in investing activities		(141,318	)		—
Financing Activities:
Proceeds from issuance of stock		—			5,500,000
Net cash provided by financing activities		—			5,500,000
Net change in cash and cash equivalents		(2,933,398	)		3,490,706
Cash and cash equivalents at beginning of period		5,961,760			167,725
Cash and cash equivalents at end of period	$	3,028,362		$	3,658,431
Non-Cash Transactions:
Non-cash conversions of preferred stock and convertible notes to equity	$	9,200,000		$	5,800,000
Series 1A preferred stock conversion	$	740		$	—

Balance as of January 1, 2022	$	22,500
Additions		198,500
Recognized as revenue		(22,500	)
Balance as of March 31, 2022	$	198,500

	As of March 31,			As of December 31,
	2022			2021
Furniture, fixtures, computer hardware and computer software	$	494,897		$	473,448
Manufacturing machinery and equipment		21,867,097			21,863,624
Manufacturing machinery and equipment, in progress		121,392			88,863
Depreciable property, plant and equipment		22,483,386			22,425,935
Less: Accumulated depreciation and amortization		(22,158,146	)		(22,146,273	)
Net property, plant and equipment	$	325,240		$	279,662

Remainder of 2022	$	741,600
2023		1,018,464
2024		1,049,018
2025		1,080,488
2026		1,112,903
Thereafter		1,146,290
Total lease payments		6,148,763
Less amounts representing interest		(1,127,010	)
Present value of lease liability	$	5,021,753

	Principal Balance 1/1/2022		New Notes		Notes assigned or exchanged			Notes converted			Principal Balance 3/31/2022		Less: Discount Balance			Net Principal Balance 3/31/2022
BD1 Notes (related party)	$	9,900,000	$	—	$	(2,000,000	)	$	(7,900,000	)	$	—	$	—		$	—
Nanyang Note		500,000		—		1,000,000			(600,000	)		900,000		(190,442	)		709,558
Fleur Note		—		—		1,000,000			(700,000	)		300,000		(63,505	)		236,495
	$	10,400,000	$	—	$	—		$	(9,200,000	)	$	1,200,000	$	(253,947	)	$	946,053

Preferred Stock Series Designation	Shares Authorized		Shares Outstanding
Series A		750,000		48,100
Series 1A		5,000		—
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 March 31,		As of December 31,
	2022		2021
Raw materials	$	592,300	$	575,154
Work in process		41,619		15,803
Finished goods		3,700		1,215
Total	$	637,620	$	592,172


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)



3.17		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated January 27, 2022 (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed February 2, 2022)

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 ^CTR		Securities Purchase Agreement, dated January 17, 2006, between the Company and ITN Energy Systems, Inc. (incorporated by reference to Exhibit 10.1 to our Registration Statement on Form SB-2 filed on January 23, 2006 (Reg. No. 333-131216))

10.2^CTR		Invention and Trade Secret Assignment Agreement, dated January 17, 2006, between the Company and ITN Energy Systems, Inc. (incorporated by reference to Exhibit 10.2 to our Registration Statement on Form SB-2 filed on January 23, 2006 (Reg. No. 333-131216))

10.3		Patent Application Assignment Agreement, dated January 17, 2006, between the Company and ITN Energy Systems, Inc. (incorporated by reference to Exhibit 10.3 to our Registration Statement on Form SB-2 filed on January 23, 2006 (Reg. No. 333-131216))

10.4^CTR		License Agreement, dated January 17, 2006, between the Company and ITN Energy Systems, Inc. (incorporated by reference to Exhibit 10.4 to our Registration Statement on Form SB-2 filed on January 23, 2006 (Reg. No. 333-131216))

10.5		Letter Agreement, dated November 23, 2005, among the Company, ITN Energy Systems, Inc. and the University of Delaware (incorporated by reference to Exhibit 10.16 to our Registration Statement on Form SB-2/A filed on May 26, 2006 (Reg. No. 333-131216))

10.6^CTR		License Agreement, dated November 21, 2006, between the Company and UD Technology Corporation (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on November 29, 2006)

10.7		Novation Agreement, dated January 1, 2007, among the Company, ITN Energy Systems, Inc. and the United States Government (incorporated by reference to Exhibit 10.23 to our Annual Report on Form 10-KSB for the year ended December 31, 2006)

10.8†		Executive Employment Agreement, dated April 4, 2014, between the Company and Victor Lee (filed as Exhibit 10.1 to our Current Report on Form 8-K filed on April 9, 2014)

10.9†		Seventh Amended and Restated 2005 Stock Option Plan (incorporated by reference to Annex B of our definitive proxy statement dated April 22, 2016)

10.10†		Seventh Amended and Restated 2008 Restricted Stock Plan Stock Option Plan Plan (incorporated by reference to Annex A of our definitive proxy statement dated April 22, 2016)

10.11+		Industrial Lease for 12300 Grant Street, Thornton, Colorado dated September 21, 2020 (incorporated by reference to Exhibit 10.50 to our Annual Report on Form 10-K filed January 29, 2021)

10.12+		Long-Term Supply and Joint Development Agreement dated September 15, 2021 (incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021)

10.13		Fleur Capital Unsecured Convertible Promissory Note dated January 3, 2022

10.14		Nanyang Unsecured Convertible Promissory Note dated January 21, 2022

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


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

*		Filed herewith

^CTR		Portions of this exhibit have been omitted pursuant to a request for confidential treatment.

†		Denotes management contract or compensatory plan or arrangement.

+		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.

May 12, 2022	By:	/s/ VICTOR LEE
		Lee Kong Hian (aka Victor Lee) President and Chief Executive Officer (Principal Executive Officer)

May 12, 2022	By:	/s/ MICHAEL J. GILBRETH
		Michael J. Gilbreth Chief Financial Officer (Principal Financial and Accounting Officer)