ASTI 10-K & 10-Q changes, risk factors and insider trading
Ascent Solar Technologies, Inc. · Nasdaq · Semiconductors & Related Devices · CIK 1350102 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
“Depending on market liquidity at the time, sales of such newly issued additional shares into the market may cause the trading price of our common stock to fall.”see in full comparison
We may be unable to manage the expansion of our operations and strategic alliances effectively. We will need to significantly expand our operations and form beneficial strategic alliances in order to reduce manufacturing costs through economies of scale and partnerships, secure contracts of commercially material amounts with reputable customers and capture a meaningful share of our target markets.see in full comparisonTo date,While we havenot successfullyformedsuchsome strategic alliances and will continue expand our partnership base, these strategic alliances are in early stages and we can give no assurances thatwethese relationships willbegenerateableourtodesireddo so.results. To manage the expansion of our operations and alliances, we will be required to improve our operational and financial systems, oversight, procedures and controls and expand, train and manage our growing employee base. Our management team will also be required to maintain and cultivate our relationships with partners, customers, suppliers and other third parties and attract new partners, customers and suppliers. In addition, our current and planned operations, personnel, facility size and configuration, systems and internal procedures and controls, even when augmented through strategic alliances, might be inadequate or insufficient to support our future growth. If we cannot manage our growth effectively, we may be unable to take advantage of market opportunities, execute our business strategies or respond to competitive pressures, resulting in a material and adverse effect to our business, results of operations and financial condition.
Duringsee in full comparison2024,2025, we entered into multiple financing agreements to fund operations, raising approximately$17.2$7.3 million in gross proceeds,ofwhich$6.1includesmillionwarrantwas used to pay down debt and repurchase fully ratcheting warrants.exercises. We do not expect that sales revenue and cash flows will be sufficient to support operations and cash requirements for the foreseeable future, and we will depend on raising additional capital to maintain operations until we become profitable. There is no assurance that we will be able to raise additional capital on acceptable terms or at all. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our existing stockholders could be significantly diluted, and these newly issued securities may have rights, preferences or privileges senior to those of existing stockholders. If we raise additional funds through debt financing, which may involve restrictive covenants, our ability to operate our business may be restricted. If adequate funds are not available or are not available on acceptable terms, if and when needed, our ability to fund our operations, take advantage of unanticipated opportunities, develop or enhance our products, expand capacity or otherwise respond to competitive pressures could be significantly limited, and our business, results of operations and financial condition could be materially and adversely affected.
Failure to consummate strategic relationships with key partners in our various target market segments, such as defense, transportation, space and near space, and the respective implementations of the right strategic partnerships to enter these various specified markets, could adversely affect our projected sales, growth and revenues. We intend to sell thin-film PV modules for use in power beaming, space, near space solar, andsee in full comparisonagrivoltaicsandpanelotherapplications.markets that require durable specialty solar products. Our marketing and distribution strategy is to form strategic relationships with direct customers, distributors, value added resellers and e-commerce to provide a foothold in these target markets. If we are unable to successfully establish working relationships with such market participants or if, due to cost, technical or other factors, our products prove unsuitable for use in such applications; our projected revenues and operating results could be adversely affected.
Full comparison: every changed paragraph (6)
During 2024,2025, we entered into multiple financing agreements to fund operations, raising approximately $17.2$7.3 million in gross proceeds, of which $6.1includes millionwarrant was used to pay down debt and repurchase fully ratcheting warrants.exercises. We do not expect that sales revenue and cash flows will be sufficient to support operations and cash requirements for the foreseeable future, and we will depend on raising additional capital to maintain operations until we become profitable. There is no assurance that we will be able to raise additional capital on acceptable terms or at all. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our existing stockholders could be significantly diluted, and these newly issued securities may have rights, preferences or privileges senior to those of existing stockholders. If we raise additional funds through debt financing, which may involve restrictive covenants, our ability to operate our business may be restricted. If adequate funds are not available or are not available on acceptable terms, if and when needed, our ability to fund our operations, take advantage of unanticipated opportunities, develop or enhance our products, expand capacity or otherwise respond to competitive pressures could be significantly limited, and our business, results of operations and financial condition could be materially and adversely affected.
We may be unable to manage the expansion of our operations and strategic alliances effectively. We will need to significantly expand our operations and form beneficial strategic alliances in order to reduce manufacturing costs through economies of scale and partnerships, secure contracts of commercially material amounts with reputable customers and capture a meaningful share of our target markets. To date,While we have not successfully formed suchsome strategic alliances and will continue expand our partnership base, these strategic alliances are in early stages and we can give no assurances that wethese relationships will begenerate ableour todesired do so.results. To manage the expansion of our operations and alliances, we will be required to improve our operational and financial systems, oversight, procedures and controls and expand, train and manage our growing employee base. Our management team will also be required to maintain and cultivate our relationships with partners, customers, suppliers and other third parties and attract new partners, customers and suppliers. In addition, our current and planned operations, personnel, facility size and configuration, systems and internal procedures and controls, even when augmented through strategic alliances, might be inadequate or insufficient to support our future growth. If we cannot manage our growth effectively, we may be unable to take advantage of market opportunities, execute our business strategies or respond to competitive pressures, resulting in a material and adverse effect to our business, results of operations and financial condition.
We are targeting emerging markets for a significant portion of our planned product sales. These markets are new and may not develop as rapidly as we expect or may not develop at all. Our target markets include power beaming, space, near space, and agrivoltaicsother markets.markets that require durable specialty solar products. Although certain areas of these markets have started to develop, some of them are in their infancy. We believe these markets have significant long-term potential; however, some or all of these markets may not develop and emerge as we expect. If the markets do develop as expected, there may be other products that could provide a superior product or a comparable product at lower prices than our products. If these markets do not develop as we expect, or if competitors are better able to capitalize on these markets our revenues and product margins may be negatively affected.
Failure to consummate strategic relationships with key partners in our various target market segments, such as defense, transportation, space and near space, and the respective implementations of the right strategic partnerships to enter these various specified markets, could adversely affect our projected sales, growth and revenues. We intend to sell thin-film PV modules for use in power beaming, space, near space solar, and agrivoltaicsand panelother applications.markets that require durable specialty solar products. Our marketing and distribution strategy is to form strategic relationships with direct customers, distributors, value added resellers and e-commerce to provide a foothold in these target markets. If we are unable to successfully establish working relationships with such market participants or if, due to cost, technical or other factors, our products prove unsuitable for use in such applications; our projected revenues and operating results could be adversely affected.
Depending on market liquidity at the time, sales of such newly issued additional shares into the market may cause the trading price of our common stock to fall.
In September 2024, the Company received written notice from Nasdaq indicating that the Company had regained compliance with the bid price requirement and the equity requirement. The Company willwas be subjectsubjected to a one year Nasdaq Listing Panel Monitor.
Management's Discussion & Analysis (MD&A)
Removed heading “Revenue Recognition:”
Removed heading “Recently Issued Accounting Standards”
Largest changes
“Cost of revenues. Cost of revenues is comprised primarily of repair and maintenance, direct labor and overhead expenses. Our cost of revenues decreased by $1,743,965, or 92% for the year ended December 31, 2024 when compared to the same period in 2023. The decrease in cost of revenues is primarily due to the decrease in manufacturing activities and sales as the Company continued to focused on product and technology improvements.”see in full comparison
“Cost of revenues. Cost of revenues is comprised primarily of material costs, repair and maintenance, direct labor and overhead expenses. Our cost of revenues increased by $47,956, or 32% for the year ended December 31, 2025, when compared to the same period in 2024. The increase in cost of revenues is primarily due to the increase in product revenue.”see in full comparison
For the year ended December 31, 2025, our cash used in operations was $6,903,966 compared to $8,423,569 for the year ended December 31, 2024,see in full comparisonour cash used in operations was $8,423,569 compared to $9,536,879 for the year ended December 31, 2023,a decrease of$1,113,310.$1,519,603. The decrease is due primarily todecreasestiminginofmanufacturingcashactivities as the Company continues to focus on productflows andtechnologydecreasedimprovements.expenses. For the year ended December 31,2024,2025, cash used in investing activities was$421$107,015 compared to cash used in investing activities of$3,877,366$421 for the year ended December 31,2023.2024.ThisThechangeincrease was primarily due to theresultpurchase oftheaassetcostacquisitioninvestmentinandZurich,fixedSwitzerland in the prior period.assets. During the year ended December 31,2024,2025, cash used in operations of$8,423,569$6,903,966 were primarily funded from20232025 and 2024 financing agreements. For the year ended December 31,2024,2025, our cash provided by financing activities was$10,546,000$6,626,731 compared to$2,962,720$10,546,000 for the year ended December 31,2023,2024, a decrease of $3,919,269. Cash provided by financing activities in 2025 was primarily derived from common stock sales under anincreaseatofthe$7,583,280.market agreement, public and private stock offerings, and warrant exercises. Cash provided by financing activities in 2024 was primarily derived from common stock sales under an at the market agreement, public and privateofferingequity offerings and a series of bridge loans partially offset bytheloanrepayments, warrant repurchase,andrepaymentdebt repayments and the repurchase ofconversionsfullypayablesratchetingassociated with a 2022 offering. During 2023, cash provided by financing activities were primarily attributable to public and private offerings partially offset by repayment of conversion payables and Series 1B preferred stock.warrants.
“Research, Development and Manufacturing Operations Costs: Research, development and manufacturing operations expenses include: …”see in full comparison
Full comparison: every changed paragraph (29)
Significant Accounting Policies and Estimates
For information regarding the Company’s critical and significant accounting policies, as well as recent accounting pronouncements, see Note 2 the financial statements within Item 15 of this Form 10-K.
The Company considers certain accounting estimates to be critical, as their application is made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on the financial condition or results of operations. Detailed below is a discussion of why, to the extent the estimate is material, these estimates are subject to uncertainty and the sensitivity of the reported amounts to the methods and assumptions underlying the estimate’s calculation.
Convertible Debt: The Company evaluates its convertible debt instruments to determine if there is an embedded derivative or other feature that requires bifurcation from the host contract. Please refer to Note 11 for further discussion on convertible debt.
Derivatives: The Company evaluates its financial instruments under FASB ASC 815, "Derivatives and Hedging" to determine whether the instruments contain an embedded derivative. When an embedded derivative is present, the instrument is evaluated for a fair value adjustment upon issuance and at the end of every period. Any adjustments to fair value are treated as gains and losses in fair values of derivatives and are recorded on the Statement of Operations.
Revenue Recognition:
Product revenue. We recognize revenue for the sale of PV product 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 product sales contracts that contain multiple performance obligations, we allocate the transaction price to each performance obligation identified in the contract based on relative standalone selling prices, or estimates of such prices, and recognize the related revenue as control of each individual product is transferred to the customer.
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 is satisfied through achieving manufacturing or cost targets and engineering targets.
Government contract revenue. Revenue from government research and development contracts is generated under terms that are cost plus fee or firm fixed price. We generally recognize this revenue over time using cost-based input methods, which recognize 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, we use 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 our 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 our performance obligations are excluded from our input methods of revenue recognition as the amounts are not reflective of our 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.
Research, Development and Manufacturing Operations Costs: Research, development and manufacturing operations expenses include: 1) technology development costs, which include expenses incurred in researching new technology, improving existing technology and performing federal government research and development contracts, 2) product development costs, which include expenses incurred in developing new products and lowering product design costs, and 3) pre-production and production costs, which include engineering efforts to improve production processes, material yields and equipment utilization, and manufacturing efforts to produce saleable product. Research, development and manufacturing operations costs are expensed as incurred, with the exception of costs related to inventoried raw materials, work-in-process and finished goods, which are expensed as Cost of revenue as products are sold.
Recently Issued Accounting Standards
In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvement to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 improves segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of ASU 2023-07 did not have a material impact on the Company's financial statements.
Management is evaluating the impact of other new pronouncements issued but not effective as of December 31, 2024. See Note 2 for additional information.
Revenues. Total revenues decreased by $416,367, or by 91%, for the year ended December 31, 2024 when compared to the same period in 2023. This is primarily due to a large customer order and engineering revenue in the prior period that was not repeated in the current period. Additionally, in 2023, the Company recognized revenue from fulfilling a supply agreement under an Asset Purchase Agreement executed in April 2023 that did not repeat in the current period.
Cost of revenues. Cost of revenues is comprised primarily of repair and maintenance, direct labor and overhead expenses. Our cost of revenues decreased by $1,743,965, or 92% for the year ended December 31, 2024 when compared to the same period in 2023. The decrease in cost of revenues is primarily due to the decrease in manufacturing activities and sales as the Company continued to focused on product and technology improvements.
Research, development and manufacturing operations. Research, development and manufacturing operations costs include costs incurred for product development, pre-production and production activities in our manufacturing facility. Research, development and manufacturing operations costs also include costs related to technology development. Research, development and manufacturing operations costs decreased by $921,335 or 29%, for the year ended December 31, 2024 when compared to the same period in 2023. This is primarily due to a decrease in preproduction and manufacturing operations cost as the Company continued to focused on product and technology improvements in 2024.
Selling,Revenues. generalTotal andrevenues administrative. Selling, general and administrative expenses decreasedincreased by $858,186,$34,880, or 16%,by 83%, for the year ended December 31, 20242025, when compared to the same period in 2023.2024. This decrease is primarily due to lowermore personnelcustomer incurredorders duringin the current yearperiod compared to the prior period.
Cost of revenues. Cost of revenues is comprised primarily of material costs, repair and maintenance, direct labor and overhead expenses. Our cost of revenues increased by $47,956, or 32% for the year ended December 31, 2025, when compared to the same period in 2024. The increase in cost of revenues is primarily due to the increase in product revenue.
Research, development and manufacturing operations. Research, development and manufacturing operations costs include costs incurred for product development, pre-production and production activities in our manufacturing facility. Research, development and manufacturing operations costs also include costs related to technology development. Research, development and manufacturing operations costs increased by $142,246 or 6%, for the year ended December 31, 2025, when compared to the same period in 2024. This is primarily due to an increase in research and development cost as the Company continued to focus on product and process improvements in the current period.
Selling, general and administrative. Selling, general and administrative expenses decreased by $408,333, or 9%, for the year ended December 31, 2025, when compared to the same period in 2024. This decrease is primarily due to lower personnel and professional service costs incurred during the current year compared to the prior period.
Share-based compensation. Share-based compensation expense decreased by $1,218,687$109,205 or 54%,11%, for the year ended December 31, 20242025, when compared to the same period in 2023.2024. The decreaseincrease is primarily due to the termination of our former CEO in April 2023. This is partially offset with the Company's RSUstock andoption options grantedgrant to employees, directors, and advisory board in 2024.August 2024 and June 2025, partially offset by lower restricted stock unit expenses in current period.
Impairment loss. The impairment loss decreased by $2,759,234$524,481 or 84%.100%. The Company recognized an impairment loss of $3,283,715$524,481 as part of the agreement to sell the manufacturing assets purchased in Switzerland (see Note 4) during the year ended December 31, 2023 for the manufacturing assets purchased from Flisom.2024. During the current period, the Company recognized an additionalno impairment loss ofwas $524,481 on these manufacturing assets as part of the Company's agreement to sell these assets.recognized.
Other Income/(Expense). Other expense decreased by $632,943 or 107%, for the year ended December 31, 2025 when compared to the same period in 2024. During December 31, 2024, other expense was primarily comprised of other income of approximately $541,000 for the reversal of liabilities related to the Flisom assets (see Note 4) and approximately $165,500 in other income for the settlement of a note payable to a vendor (see Note 8) that were not repeated in the current period. This income was offset by a one-time warrant settlement expense for the repurchase of fully ratcheting warrants sold to investors and higher interest expense due to more debt in the previous year compared to the current year.
Other Income/(Expense). Other expense decreased by $835,920 or 59%, for the year ended December 31, 2024 when compared to the same period in 2023. The decrease is due primarily to a decrease in interest expense resulting from the conversions and payoff of the December 2022 convertible debt and other income recognized, partially offset by the warrant settlement expense incurred in 2024. Other income in 2024 also included gain on settlement of liabilities, interest income, and the reversal of Swiss liability. Other income in 2023 included a one-time employee retention credit.
Net Income/(Loss). Our Net Loss was $7,832,755 for the year ended December 31, 2025, compared to Net Loss of $9,130,274 for the year ended December 31, 2024, compared to Net Loss of $17,069,896 for the year ended December 31, 2023, a decrease of $7,939,622.$1,297,519. The decrease is primarily due to the reasons described above.
The Company has continuedlimited limitedindustrial scale production capabilities in its Thornton facility and continues to focus on its research and development activities to improve its PV production at its manufacturing facility.products. The Company does not expect that sales revenue and cash flows will be sufficient to support operations and cash requirements until it has fully implemented itsour productstrategy strategy.of focusing on selling high value PV products and manufacturing at full industrial scale. During the year ended December 31, 20242025, the Company used $8,423,569$6,903,966 in cash for operations.
AdditionalAdditionally, projected revenues are not anticipated to result in a positive cash flow position for the year 20242025 overall and, although as of December 31, 2024,2025, the Company has working capital of $1,432,912,$1,178,902, Management believes that additional financing will be required for the Company to reach a level of sufficient sales to achieve profitability.
For the year ended December 31, 2025, our cash used in operations was $6,903,966 compared to $8,423,569 for the year ended December 31, 2024, our cash used in operations was $8,423,569 compared to $9,536,879 for the year ended December 31, 2023, a decrease of $1,113,310.$1,519,603. The decrease is due primarily to decreasestiming inof manufacturingcash activities as the Company continues to focus on productflows and technologydecreased improvements.expenses. For the year ended December 31, 2024,2025, cash used in investing activities was $421$107,015 compared to cash used in investing activities of $3,877,366$421 for the year ended December 31, 2023.2024. ThisThe changeincrease was primarily due to the resultpurchase of thea assetcost acquisitioninvestment inand Zurich,fixed Switzerland in the prior period.assets. During the year ended December 31, 2024,2025, cash used in operations of $8,423,569$6,903,966 were primarily funded from 20232025 and 2024 financing agreements. For the year ended December 31, 2024,2025, our cash provided by financing activities was $10,546,000$6,626,731 compared to $2,962,720$10,546,000 for the year ended December 31, 2023,2024, a decrease of $3,919,269. Cash provided by financing activities in 2025 was primarily derived from common stock sales under an increaseat ofthe $7,583,280.market agreement, public and private stock offerings, and warrant exercises. Cash provided by financing activities in 2024 was primarily derived from common stock sales under an at the market agreement, public and private offeringequity offerings and a series of bridge loans partially offset by the loan repayments, warrant repurchase, and repaymentdebt repayments and the repurchase of conversionsfully payablesratcheting associated with a 2022 offering. During 2023, cash provided by financing activities were primarily attributable to public and private offerings partially offset by repayment of conversion payables and Series 1B preferred stock.warrants.
What changed in the latest 10-Q
Risk Factors
In addition to the information set forth in this Form 10-Q, you should carefully consider the risk factors disclosed under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our risk factors from those included in our Annual Report on Form 10-K for the year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Comparison of the Six Months Ended June 30, 2026 and 2025”
Largest changes
“Cost of revenue. Cost of revenues is primarily comprised of repair and maintenance, material costs, and direct labor and overhead expenses. Our Cost of revenues increased by $178,809, or 339%, for the six months ended June 30, 2026 when compared to the same period in 2025. This increase is primarily due to the increase in sales.”see in full comparison
“Research, development and manufacturing operations. Research, development and manufacturing operations costs include costs incurred for product development, pre-production and production activities in our manufacturing facility. Research, development and manufacturing operations costs also include costs related to technology development. Research, development and manufacturing operations costs increased by $216,932, or 18%, for the six months ended June 30, 2026 when compared to the same period in 2025. …”see in full comparison
For thesee in full comparisonthreesix months endedMarchJune31,30, 2026, our cash used in operations was$2,020,240$3,809,122 compared to$1,550,030$3,361,544 for thethreesix months endedMarchJune31,30, 2025, an increase of$470,210.$447,578. This increase is due primarily toincreasedtimingpersonnelof cash outflows andprofessionalincreasedcost in current period.expenses. Thethreesix months endedMarchJune31,30, 2026 net cash used in operations of$2,020,240$3,809,122 were primarily funded from 2025 and 2026 financing agreements. For thethreesix months endedMarchJune31,30, 2026, cash used in investing activities was $200,000 compared to$483$2,515 used in investing activities in the prior period. The increase was primarily due to the additional investment in a cost method investment. For thethreesix months endedMarchJune31,30, 2026, our cash provided by financing activities was$15,506,141$15,760,855 compared to$635,585$3,148,175 in the prior period, an increase of$14,870,556.$12,612,680. Cash provided by financing activities in 2026 was primarily derived from the selling common stock under a PIPE agreement and the excise of warrants. Cash provided by financing activities in 2025 was primarily derived from the ATM agreement and public offering partially offset by the bridge loan repayments.
“Due to the high durability enabled by the monolithic integration employed by our technology, the capability to customize modules into different form factors and what we believe is the industry leading light weight and flexibility provided by our modules, we believe that the potential applications for our products are extensive, including integrated solutions anywhere that may need power generation such as power beaming solutions, vehicles in space or in flight or dual-use installations on agricultural land.”see in full comparison
“Additionally, due to the high durability enabled by the monolithic integration employed by our technology, the capability to customize modules into different form factors and what we believe is the industry leading light weight and flexibility provided by our modules, we believe that the potential applications for our products are extensive, including integrated solutions anywhere that may need power generation such as power beaming solutions, vehicles in space or in flight or aquatic solutions.”see in full comparison
Full comparison: every changed paragraph (28)
We are a solar technology company that manufactures in the United States and sells PV solar modules that are flexible, durable, and possess attractive power to weight and power to area performance.ratio. Our technology provides renewable power solutions to high-value production and specialty solar markets where traditional rigid solar panels are not suitable, including space power beaming, aerospace, satellites, near earth orbiting vehicles, fixed wing unmanned aerial vehicles UAV,("UAV"), aquatic,aquatic terrestrial, and other weight-sensitiveweight sensitive markets (including DoD drone and space operations) with transformational high quality, value added product applications. We operate in these target markets because they have highly specialized needs for power generation and offer attractive pricing due to the significant technological requirements.
For the threesix months ended MarchJune 31,30, 2026, we generated $51,944$147,147 of total revenue. As of MarchJune 31,30, 2026, we had an accumulated deficit of $501,618,627.$503,445,211.
Due to the high durability enabled by the monolithic integration employed by our technology, the capability to customize modules into different form factors and what we believe is the industry leading light weight and flexibility provided by our modules, we believe that the potential applications for our products are extensive, including integrated solutions anywhere that may need power generation such as power beaming solutions, vehicles in space or in flight or dual-use installations on agricultural land.
We manufacture our products by affixing a thin CIGS layer to a flexible, plastic substrate using a large format, roll-to-roll process that permits us to fabricate our flexible PV modules in an integrated sequential operation. We use proprietary monolithic integration techniques which enable us to form complete PV modules with little to no costly back-end assembly of inter-cell connections. Traditional PV manufacturers assemble PV modules by bonding or soldering discrete PV cells together. This manufacturing step typically increases manufacturing costs and, at times, proves detrimental to the overall yield and reliability of the finished product. By reducing or eliminating this added step, using our proprietary monolithic integration techniques, we believe we can achieve cost savings in, and increase the reliability of, our PV modules.
Additionally, due to the high durability enabled by the monolithic integration employed by our technology, the capability to customize modules into different form factors and what we believe is the industry leading light weight and flexibility provided by our modules, we believe that the potential applications for our products are extensive, including integrated solutions anywhere that may need power generation such as power beaming solutions, vehicles in space or in flight or aquatic solutions.
Basis of Presentation: The accompanying unaudited condensed financial statements have been derived from the accounting records of Ascent Solar Technologies, Inc. as of MarchJune 31,30, 2026 and December 31, 2025, and the results of operations for the three and six months ended MarchJune 31,30, 2026 and 2025.
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, 2025. There have been no significant changes to our accounting policies as of MarchJune 31,30, 2026.
Comparison of the Three Months Ended MarchJune 31,30, 2026 and 2025
Total Revenues. Our total revenues increased by $36,320,$78,242, or 232%,461%, for the three months ended MarchJune 31,30, 2026 when compared to the same period in 2025. This is primarily due to more orders and engineering revenue in the current period compared to prior period.
Cost of revenue. Cost of revenues is primarily comprised of repair and maintenance, material costs, and direct labor and overhead expenses. Our Cost of revenues increased by $46,622,$132,187, or 193%,462%, for the three months ended MarchJune 31,30, 2026 when compared to the same period in 2025. TheThis increase in cost of revenues is primarily due to the increase in revenue.sales.
Research, development and manufacturing operations. Research, development and manufacturing operations costs include costs incurred for product development, pre-production and production activities in our manufacturing facility. Research, development and manufacturing operations costs also include costs related to technology development. Research, development and manufacturing operations costs increased by $135,477,$74,376, or 24%,12%, for the three months ended MarchJune 31,30, 2026 when compared to the same period in 2025. This increase is primarily due to an increase in research and development cost as the Company continuingcontinued to focusfocused on product and technology improvements in the current period.
Selling, general and administrative. Selling, general and administrative expenses increased by $489,703,$39,233, or 52%4% for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025. This increase is primarily due to increased personnel and professional service costs incurred in the current period compared to the prior period.
Share-based compensation. Share-based compensation expense decreased by $124,027,$314,614 or 59%78% for the three months ended MarchJune 31,30, 2026 when compared to the same period in 2025. The decrease is primarily due to theless remainingRSU RSUsawards fullyand vestingstock onoptions Januarybeing 1,expensed 2026, which was partially offset byfor the Company'sthree optionmonths grant to employees, directors, and advisory board inended June 2025.30, 2026.
Other Income/Expense. Other income was $86,914$118,358 for the three months ended MarchJune 31,30, 2026, compared to other income of $72,134$25,236 for the same period in 2025, an increase of $14,780,$93,122. or 20%. TheThis increase is primarily due primarily to increasedan other income whichincrease in the current period, is primarily comprised of interest income and decreased interest expense in current period.income.
Net Loss. Our Net Loss increaseddecreased by $502,866,$238,813, or 30%,12%, for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025 due primarily to the items mentioned above.
Comparison of the Six Months Ended June 30, 2026 and 2025
Total Revenues. Our total revenues increased by $114,562, or 352%, for the six months ended June 30, 2026 when compared to the same period in 2025. This is primarily due to more orders and nonrecurring engineering revenue in the current period.
Cost of revenue. Cost of revenues is primarily comprised of repair and maintenance, material costs, and direct labor and overhead expenses. Our Cost of revenues increased by $178,809, or 339%, for the six months ended June 30, 2026 when compared to the same period in 2025. This increase is primarily due to the increase in sales.
Research, development and manufacturing operations. Research, development and manufacturing operations costs include costs incurred for product development, pre-production and production activities in our manufacturing facility. Research, development and manufacturing operations costs also include costs related to technology development. Research, development and manufacturing operations costs increased by $216,932, or 18%, for the six months ended June 30, 2026 when compared to the same period in 2025. This is primarily due to an increase in research and development cost as the Company continued to focused on product and technology improvements in the current period.
Selling, general and administrative. Selling, general and administrative expenses increased by $521,849, or 26% for the six months ended June 30, 2026 compared to the same period in 2025. This increase is primarily due to increased personnel and professional service costs incurred in the current period.
Share-based compensation. Share-based compensation expense decreased by $438,635 or 71% for the six months ended June 30, 2026 when compared to the same period in 2025. The decrease is primarily due to less RSU awards and stock options being expensed for the six months ended June 30, 2026.
Other Income/Expense. Other income was $205,273 for the six months ended June 30, 2026, compared to other income of $97,371 for the same period in 2025, an increase of $107,902. The increase is due primarily to increased other income which in the current period, is primarily comprised of interest income and decreased interest expense in current period.
Net Loss. Our Net loss increased by $264,053, or 7%, for the six months ended June 30, 2026 compared to the same period in 2025 due primarily to the items mentioned above.
The Company continues to build industrial scale production capabilities in its Thornton facility and focus on its research and development activities to improve its PV products. The Company does not expect that sales revenue and cash flows will be sufficient to support operations and cash requirements until it has fully implemented its strategy of selling high value PV products and manufacturing at full industrial scale. During the threesix months ended MarchJune 31,30, 20262026, the Company used $2,020,240$3,809,122 in cash for operations.
Additionally, projected total revenues are not anticipated to result in a positive cash flow position for the year overall and, as of MarchJune 31,30, 2026, and while the Company has working capital of $14,378,204,$12,875,343, Management believes that additional financing will be required for the Company to reach a level of sufficient sales to achieve profitability.
Statements of Cash Flows Comparison of the threesix months ended MarchJune 31,30, 2026 and 2025
For the threesix months ended MarchJune 31,30, 2026, our cash used in operations was $2,020,240$3,809,122 compared to $1,550,030$3,361,544 for the threesix months ended MarchJune 31,30, 2025, an increase of $470,210.$447,578. This increase is due primarily to increasedtiming personnelof cash outflows and professionalincreased cost in current period.expenses. The threesix months ended MarchJune 31,30, 2026 net cash used in operations of $2,020,240$3,809,122 were primarily funded from 2025 and 2026 financing agreements. For the threesix months ended MarchJune 31,30, 2026, cash used in investing activities was $200,000 compared to $483$2,515 used in investing activities in the prior period. The increase was primarily due to the additional investment in a cost method investment. For the threesix months ended MarchJune 31,30, 2026, our cash provided by financing activities was $15,506,141$15,760,855 compared to $635,585$3,148,175 in the prior period, an increase of $14,870,556.$12,612,680. Cash provided by financing activities in 2026 was primarily derived from the selling common stock under a PIPE agreement and the excise of warrants. Cash provided by financing activities in 2025 was primarily derived from the ATM agreement and public offering partially offset by the bridge loan repayments.
As of MarchJune 31,30, 2026, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.
ASTI insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 4 filings (1 insider, 5 trade dates, 44,115 shares, about $211.1K). Net open-market shares: -44,115 (purchases minus sales); net value about -$211.1K.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-11 | Forrest Reynolds T. |
Open-market sale | 22,152 | $2.89 | $64.0K |
| 2026-08-27 | Forrest Reynolds T. |
Open-market sale | 5,000 | $3.10 | $15.5K |
| 2026-08-25 | Forrest Reynolds T. |
Open-market sale | 4,120 | $3.05 | $12.6K |
| 2026-06-02 | Forrest Reynolds T. |
Open-market sale | 5,000 | $9.45 | $47.2K |
| 2026-05-29 | Forrest Reynolds T. |
Shares withheld for tax | 2,071 | $7.87 | $16.3K |
| 2026-05-29 | Forrest Reynolds T. |
Open-market sale | 7,843 | $9.15 | $71.8K |
| 2026-05-29 | Forrest Reynolds T. |
Option exercise | 10,000 | $1.63 | $16.3K |
| 2026-05-28 | Forrest Reynolds T. |
Shares withheld for tax | 2,407 | $6.77 | $16.3K |
| 2026-05-28 | Forrest Reynolds T. |
Option exercise | 10,000 | $1.63 | $16.3K |
| 2026-05-22 | Forrest Reynolds T. |
Conversion | 28,343 | $2.50 | $70.9K |
Well-known investors holding ASTI (13F)
None of the 59 investors we track reported a position in their latest 13F.