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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Ascent Solar Technologies Inc (PK) | USOTC:ASTI | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 10.00 | 9.60 | 11.00 | 0.00 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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
|
Large accelerated filer
|
|
o
|
|
Accelerated filer
|
|
o
|
Non-accelerated filer
|
|
x
|
|
Smaller reporting company
|
|
x
|
|
|
|
|
Emerging growth company
|
|
o
|
|
|
|
|
||
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
•
|
Our limited operating history and lack of profitability;
|
•
|
Our ability to develop demand for, and sales of, our products;
|
•
|
Our ability to attract and retain qualified personnel to implement our business plan and corporate growth strategies;
|
•
|
Our ability to develop sales, marketing and distribution capabilities;
|
•
|
Our ability to successfully develop and maintain strategic relationships with key partners, including OEMs, system integrators, distributors, retailers and e-commerce companies, who deal directly with end users in our target markets;
|
•
|
The accuracy of our estimates and projections;
|
•
|
Our ability to secure additional financing to fund our short-term and long-term financial needs;
|
•
|
Our ability to maintain the listing of our common stock on the OTCBB Market;
|
•
|
The commencement, or outcome, of legal proceedings against us, or by us, including ongoing ligation proceedings;
|
•
|
Changes in our business plan or corporate strategies;
|
•
|
The extent to which we are able to manage the growth of our operations effectively, both domestically and abroad, whether directly owned or indirectly through licenses;
|
•
|
The supply, availability and price of equipment, components and raw materials, including the elements needed to produce our photovoltaic modules;
|
•
|
Our ability to expand and protect the intellectual property portfolio that relates to our consumer electronics, photovoltaic modules and processes;
|
•
|
Our ability to implement remediation measures to address material weaknesses in internal control;
|
•
|
General economic and business conditions, and in particular, conditions specific to consumer electronics and the solar power industry; and
|
•
|
Other risks and uncertainties discussed in greater detail in the section captioned "Risk Factors."
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
ASSETS (substantially pledged)
|
|
|
|
|
||||
Current Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
24,505
|
|
|
$
|
18,159
|
|
Trade receivables, net of allowance of $45,362 and $45,644, respectively
|
|
22,403
|
|
|
165,160
|
|
||
Inventories, net
|
|
684,390
|
|
|
660,791
|
|
||
Prepaid expenses and other current assets
|
|
164,325
|
|
|
138,369
|
|
||
Total current assets
|
|
895,623
|
|
|
982,479
|
|
||
Property, Plant and Equipment:
|
|
32,911,969
|
|
|
36,621,187
|
|
||
Less accumulated depreciation and amortization
|
|
(28,632,301
|
)
|
|
(32,207,829
|
)
|
||
|
|
4,279,668
|
|
|
4,413,358
|
|
||
Other Assets:
|
|
|
|
|
||||
Patents, net of accumulated amortization of $408,612 and $363,533, respectively
|
|
826,711
|
|
|
862,429
|
|
||
Other non-current assets
|
|
—
|
|
|
34,061
|
|
||
|
|
826,711
|
|
|
896,490
|
|
||
Total Assets
|
|
$
|
6,002,002
|
|
|
$
|
6,292,327
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
||||
Current Liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
1,457,378
|
|
|
$
|
2,318,655
|
|
Related party payables
|
|
460,000
|
|
|
270,740
|
|
||
Accrued expenses
|
|
1,510,558
|
|
|
1,562,435
|
|
||
Accrued interest
|
|
1,775,647
|
|
|
1,198,279
|
|
||
Notes payable
|
|
1,506,530
|
|
|
1,516,530
|
|
||
Current portion of long-term debt
|
|
—
|
|
|
349,093
|
|
||
Mortgage
|
|
5,917,315
|
|
|
—
|
|
||
Secured promissory notes, net of discount of $1,341,915 and $2,824,365, respectively
|
|
5,830,982
|
|
|
3,447,380
|
|
||
Promissory notes, net of discounts of $30,000 and $104,583, respectively
|
|
954,437
|
|
|
1,239,854
|
|
||
Convertible notes, net of discounts of $853,672 and $394,011, respectively
|
|
2,004,241
|
|
|
1,852,722
|
|
||
Embedded derivative liability
|
|
7,064,541
|
|
|
10,114,452
|
|
||
Total current liabilities
|
|
28,481,629
|
|
|
23,870,140
|
|
||
Long-term debt, net of current portion
|
|
—
|
|
|
5,028,969
|
|
||
Accrued Warranty Liability
|
|
24,861
|
|
|
29,114
|
|
||
Total Liabilities
|
|
28,506,490
|
|
|
28,928,223
|
|
||
Commitments and Contingencies
|
|
—
|
|
|
—
|
|
||
Stockholders’ Deficit:
|
|
|
|
|
||||
Series A preferred stock, $.0001 par value; 750,000 shares authorized as of September 30, 2019 and December 31, 2018; 48,100 and 60,756 shares issued and outstanding as of September 30, 2019 and December 31, 2018 ($691,571 and $822,620 Liquidation Preference, respectively)
|
|
5
|
|
|
6
|
|
||
Common stock, $0.0001 par value, 20,000,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 2,856,539,850 and 63,537,885 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
|
|
285,654
|
|
|
6,354
|
|
||
Additional paid in capital
|
|
397,674,171
|
|
|
395,889,712
|
|
||
Accumulated deficit
|
|
(420,464,318
|
)
|
|
(418,531,968
|
)
|
||
Total stockholders’ deficit
|
|
(22,504,488
|
)
|
|
(22,635,896
|
)
|
||
Total Liabilities and Stockholders’ Deficit
|
|
$
|
6,002,002
|
|
|
$
|
6,292,327
|
|
|
|
|
|
|
|
||||||||||||||
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|
||||||||||||||
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
||||||||
Revenues
|
|
$
|
338,373
|
|
|
$
|
32,001
|
|
|
|
$
|
628,124
|
|
|
$
|
512,473
|
|
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenues
|
|
74,271
|
|
|
—
|
|
|
|
282,825
|
|
|
503,609
|
|
|
|
||||
Research, development and manufacturing operations
|
|
460,775
|
|
|
516,782
|
|
|
|
1,078,842
|
|
|
2,389,863
|
|
|
|
||||
Selling, general and administrative
|
|
633,566
|
|
|
607,784
|
|
|
|
1,545,852
|
|
|
2,243,925
|
|
|
|
||||
Depreciation and amortization
|
|
58,154
|
|
|
91,104
|
|
|
|
185,163
|
|
|
289,324
|
|
|
|
||||
Total Costs and Expenses
|
|
1,226,766
|
|
|
1,215,670
|
|
|
|
3,092,682
|
|
|
5,426,721
|
|
|
|
||||
Loss from Operations
|
|
(888,393
|
)
|
|
(1,183,669
|
)
|
|
|
(2,464,558
|
)
|
|
(4,914,248
|
)
|
|
|
||||
Other Income/(Expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other Income, net
|
|
6,000
|
|
|
13,144
|
|
|
|
842,500
|
|
|
13,144
|
|
|
|
||||
Interest Expense
|
|
(1,907,895
|
)
|
|
(1,730,717
|
)
|
|
|
(6,740,340
|
)
|
|
(5,279,259
|
)
|
|
|
||||
Change in fair value of derivatives and gain/(loss) on extinguishment of liabilities, net
|
|
1,510,883
|
|
|
3,284,736
|
|
|
|
6,430,048
|
|
|
2,599,870
|
|
|
|
||||
Total Other Income/(Expense)
|
|
(391,012
|
)
|
|
1,567,163
|
|
|
|
532,208
|
|
|
(2,666,245
|
)
|
|
|
||||
Net Loss
|
|
$
|
(1,279,405
|
)
|
|
$
|
383,494
|
|
|
|
$
|
(1,932,350
|
)
|
|
$
|
(7,580,493
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net Loss Per Share (Basic and Diluted)
|
|
$
|
(0.001
|
)
|
|
$
|
0.20
|
|
|
|
$
|
(0.003
|
)
|
|
$
|
(0.45
|
)
|
|
|
Weighted Average Common Shares Outstanding (Basic and Diluted)
|
|
1,457,404,260
|
|
|
22,739,044
|
|
|
|
705,196,069
|
|
|
16,827,420
|
|
|
|
|
|
Common Stock
|
|
Series A Preferred Stock
|
|
Additional
Paid-In Capital |
|
Accumulated
Deficit |
|
Total
Stockholders’ Equity (Deficit) |
||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||
Balance, June 30, 2019
|
|
696,089,337
|
|
|
$
|
69,609
|
|
|
48,100
|
|
|
$
|
5
|
|
|
$
|
397,258,622
|
|
|
$
|
(419,184,913
|
)
|
|
$
|
(21,856,677
|
)
|
Interest and Dividend Expense paid with Common Stock
|
|
89,313,372
|
|
|
8,932
|
|
|
—
|
|
|
—
|
|
|
7,393
|
|
|
—
|
|
|
16,325
|
|
|||||
Conversion of St.George Note into Common Shares
|
|
457,222,223
|
|
|
45,722
|
|
|
—
|
|
|
—
|
|
|
43,278
|
|
|
—
|
|
|
89,000
|
|
|||||
Conversion of BayBridge Note into Common Shares
|
|
605,769,231
|
|
|
60,577
|
|
|
—
|
|
|
—
|
|
|
25,423
|
|
|
—
|
|
|
86,000
|
|
|||||
Conversion of Bellridge Note into Common Shares
|
|
474,484,128
|
|
|
47,448
|
|
|
—
|
|
|
—
|
|
|
41,552
|
|
|
—
|
|
|
89,000
|
|
|||||
Conversion of Power Up Note into Common Shares
|
|
155,824,176
|
|
|
15,582
|
|
|
—
|
|
|
—
|
|
|
(982
|
)
|
|
—
|
|
|
14,600
|
|
|||||
Conversion of GS Capital Note into Common Shares
|
|
311,168,154
|
|
|
31,117
|
|
|
—
|
|
|
—
|
|
|
26,601
|
|
|
—
|
|
|
57,718
|
|
|||||
Stock issued for fees
|
|
66,669,229
|
|
|
6,667
|
|
|
—
|
|
|
—
|
|
|
1,098
|
|
|
—
|
|
|
7,765
|
|
|||||
Loss on Extinguishment of Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
271,186
|
|
|
—
|
|
|
271,186
|
|
|||||
Net Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,279,405
|
)
|
|
(1,279,405
|
)
|
|||||
Balance at September 30, 2019
|
|
2,856,539,850
|
|
|
$
|
285,654
|
|
|
48,100
|
|
|
$
|
5
|
|
|
$
|
397,674,171
|
|
|
$
|
(420,464,318
|
)
|
|
$
|
(22,504,488
|
)
|
|
|
Common Stock
|
|
Series A Preferred Stock
|
|
Additional
Paid-In Capital |
|
Accumulated
Deficit |
|
Total
Stockholders’ Equity (Deficit) |
||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||
Balance, June 30, 2018
|
|
18,994,561
|
|
|
$
|
1,900
|
|
|
60,756
|
|
|
$
|
6
|
|
|
$
|
393,838,518
|
|
|
$
|
(410,459,463
|
)
|
|
$
|
(16,619,039
|
)
|
Interest and Dividend Expense paid with Common Stock
|
|
310,656
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
30,398
|
|
|
—
|
|
|
30,429
|
|
|||||
Conversion of St.George Note into Common Shares
|
|
3,142,332
|
|
|
314
|
|
|
—
|
|
|
—
|
|
|
102,186
|
|
|
—
|
|
|
102,500
|
|
|||||
Conversion of BayBridge Note into Common Shares
|
|
1,426,025
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|
51,857
|
|
|
—
|
|
|
52,000
|
|
|||||
Conversion of Bellridge Note into Common Shares
|
|
3,660,498
|
|
|
366
|
|
|
—
|
|
|
—
|
|
|
137,134
|
|
|
—
|
|
|
137,500
|
|
|||||
Conversion of Note Payable into Common Shares
|
|
2,004,169
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
356,542
|
|
|
—
|
|
|
356,742
|
|
|||||
Loss on Extinguishment of Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
601,433
|
|
|
—
|
|
|
601,433
|
|
|||||
Stock based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,476
|
|
|
—
|
|
|
3,476
|
|
|||||
Adjustment for RSS
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,625
|
)
|
|
—
|
|
|
(2,625
|
)
|
|||||
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
383,494
|
|
|
383,494
|
|
|||||
Balance at September 30, 2018
|
|
29,538,241
|
|
|
$
|
2,954
|
|
|
60,756
|
|
|
$
|
6
|
|
|
$
|
395,118,919
|
|
|
$
|
(410,075,969
|
)
|
|
$
|
(14,954,090
|
)
|
|
|
Common Stock
|
|
Series A Preferred Stock
|
|
Additional
Paid-In Capital |
|
Accumulated
Deficit |
|
Total
Stockholders’ Equity (Deficit) |
||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||
Balance, December 31, 2018
|
|
63,537,885
|
|
|
$
|
6,354
|
|
|
60,756
|
|
|
$
|
6
|
|
|
$
|
395,889,712
|
|
|
$
|
(418,531,968
|
)
|
|
$
|
(22,635,896
|
)
|
Interest and Dividend Expense paid with Common Stock
|
|
118,531,773
|
|
|
11,853
|
|
|
—
|
|
|
—
|
|
|
98,489
|
|
|
—
|
|
|
110,342
|
|
|||||
Conversion of St.George Note into Common Shares
|
|
602,361,830
|
|
|
60,236
|
|
|
—
|
|
|
—
|
|
|
194,834
|
|
|
—
|
|
|
255,070
|
|
|||||
Conversion of Global Ichiban Note into Common Shares
|
|
9,595,327
|
|
|
960
|
|
|
—
|
|
|
—
|
|
|
114,040
|
|
|
—
|
|
|
115,000
|
|
|||||
Conversion of BayBridge Note into Common Shares
|
|
790,692,046
|
|
|
79,069
|
|
|
—
|
|
|
—
|
|
|
185,931
|
|
|
—
|
|
|
265,000
|
|
|||||
Conversion of Bellridge Note into Common Shares
|
|
573,601,030
|
|
|
57,360
|
|
|
—
|
|
|
—
|
|
|
144,640
|
|
|
—
|
|
|
202,000
|
|
|||||
Conversion of Power Up Note into Common Shares
|
|
291,431,537
|
|
|
29,143
|
|
|
—
|
|
|
—
|
|
|
210,457
|
|
|
—
|
|
|
239,600
|
|
|||||
Conversion of GS Capital Note into Common Shares
|
|
327,651,670
|
|
|
32,765
|
|
|
—
|
|
|
—
|
|
|
39,953
|
|
|
—
|
|
|
72,718
|
|
|||||
Stock issued for fees
|
|
79,136,751
|
|
|
7,914
|
|
|
—
|
|
|
—
|
|
|
7,911
|
|
|
—
|
|
|
15,825
|
|
|||||
Conversion of Series A Preferred Stock into Common Stock
|
|
1
|
|
|
—
|
|
|
(12,656
|
)
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Loss on Extinguishment of Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
767,453
|
|
|
—
|
|
|
767,453
|
|
|||||
Stock based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,750
|
|
|
—
|
|
|
20,750
|
|
|||||
Net Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,932,350
|
)
|
|
(1,932,350
|
)
|
|||||
Balance at September 30, 2019
|
|
2,856,539,850
|
|
|
$
|
285,654
|
|
|
48,100
|
|
|
$
|
5
|
|
|
$
|
397,674,171
|
|
|
$
|
(420,464,318
|
)
|
|
$
|
(22,504,488
|
)
|
|
|
Common Stock
|
|
Series A Preferred Stock
|
|
Additional
Paid-In Capital |
|
Accumulated
Deficit |
|
Total
Stockholders’ Equity (Deficit) |
||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||
Balance, December 31, 2017
|
|
9,606,677
|
|
|
$
|
961
|
|
|
60,756
|
|
|
$
|
6
|
|
|
$
|
387,292,174
|
|
|
$
|
(402,495,476
|
)
|
|
$
|
(15,202,335
|
)
|
Interest and Dividend Expense paid with Common Stock
|
|
427,721
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
57,193
|
|
|
—
|
|
|
57,236
|
|
|||||
Conversion of St.George Note into Common Shares
|
|
5,412,610
|
|
|
541
|
|
|
—
|
|
|
—
|
|
|
493,559
|
|
|
—
|
|
|
494,100
|
|
|||||
Conversion of Global Ichiban Note into Common Shares
|
|
3,486,274
|
|
|
349
|
|
|
—
|
|
|
—
|
|
|
1,425,651
|
|
|
—
|
|
|
1,426,000
|
|
|||||
Conversion of BayBridge Note into Common Shares
|
|
4,237,792
|
|
|
424
|
|
|
—
|
|
|
—
|
|
|
564,576
|
|
|
—
|
|
|
565,000
|
|
|||||
Conversion of Bellridge Note into Common Shares
|
|
3,660,498
|
|
|
366
|
|
|
—
|
|
|
—
|
|
|
137,134
|
|
|
—
|
|
|
137,500
|
|
|||||
Conversion of Note Payable into Common Shares
|
|
2,004,169
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
356,542
|
|
|
—
|
|
|
356,742
|
|
|||||
Conversion of Series K Preferred Stock into Common Shares
|
|
702,500
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
2,809,930
|
|
|
—
|
|
|
2,810,000
|
|
|||||
Loss on Extinguishment of Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,959,963
|
|
|
—
|
|
|
1,959,963
|
|
|||||
Stock based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,822
|
|
|
—
|
|
|
24,822
|
|
|||||
Adjustment for RSS
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,625
|
)
|
|
—
|
|
|
(2,625
|
)
|
|||||
Net Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,580,493
|
)
|
|
(7,580,493
|
)
|
|||||
Balance at September 30, 2018
|
|
29,538,241
|
|
|
$
|
2,954
|
|
|
60,756
|
|
|
$
|
6
|
|
|
$
|
395,118,919
|
|
|
$
|
(410,075,969
|
)
|
|
$
|
(14,954,090
|
)
|
|
|
For the Nine Months Ended
|
|
||||||
|
|
September 30,
|
|
||||||
|
|
2019
|
|
2018
|
|
||||
Operating Activities:
|
|
|
|
|
|
||||
Net Income (loss)
|
|
$
|
(1,932,350
|
)
|
|
$
|
(7,580,493
|
)
|
|
Adjustments to reconcile net (loss) to net cash used in operating activities:
|
|
|
|
|
|
||||
Depreciation and amortization
|
|
185,163
|
|
|
289,324
|
|
|
||
Stock based compensation
|
|
20,750
|
|
|
24,822
|
|
|
||
Realized loss (gain) on sale of assets
|
|
(842,500
|
)
|
|
(14,000
|
)
|
|
||
Amortization of financing costs
|
|
24,639
|
|
|
21,750
|
|
|
||
Non-cash interest expense
|
|
2,023,031
|
|
|
935,190
|
|
|
||
Amortization of debt discount
|
|
3,675,795
|
|
|
3,690,823
|
|
|
||
Bad debt expense
|
|
(302
|
)
|
|
(8,868
|
)
|
|
||
Write off Enerplex Patents
|
|
—
|
|
|
59,153
|
|
|
||
Warranty reserve
|
|
(4,253
|
)
|
|
(9,702
|
)
|
|
||
Change in fair value of derivatives and loss on extinguishment of liabilities, net
|
|
(6,430,048
|
)
|
|
(2,599,870
|
)
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||
Accounts receivable
|
|
143,059
|
|
|
(16,340
|
)
|
|
||
Inventories
|
|
(23,599
|
)
|
|
68,759
|
|
|
||
Prepaid expenses and other current assets
|
|
1,766
|
|
|
247,919
|
|
|
||
Accounts payable
|
|
(494,883
|
)
|
|
965,175
|
|
|
||
Related party payable
|
|
189,260
|
|
|
(2,827
|
)
|
|
||
Accrued interest
|
|
951,184
|
|
|
398,098
|
|
|
||
Accrued expenses
|
|
(51,880
|
)
|
|
487,690
|
|
|
||
Net cash used in operating activities
|
|
(2,565,168
|
)
|
|
(3,043,397
|
)
|
|
||
Investing Activities:
|
|
|
|
|
|
||||
Purchase of property, plant and equipment
|
|
(6,393
|
)
|
|
—
|
|
|
||
Proceeds from sale of assets
|
|
842,500
|
|
|
14,000
|
|
|
||
Patent activity costs
|
|
(9,361
|
)
|
|
(9,705
|
)
|
|
||
Net cash used in investing activities
|
|
826,746
|
|
|
4,295
|
|
|
||
Financing Activities:
|
|
|
|
|
|
||||
Proceeds from debt
|
|
1,762,268
|
|
|
3,102,500
|
|
|
||
Repayment of debt
|
|
(10,000
|
)
|
|
(89,686
|
)
|
|
||
Payment of debt financing costs
|
|
(7,500
|
)
|
|
(5,500
|
)
|
|
||
Net cash provided by financing activities
|
|
1,744,768
|
|
|
3,007,314
|
|
|
||
Net change in cash and cash equivalents
|
|
6,346
|
|
|
(31,788
|
)
|
|
||
Cash and cash equivalents at beginning of period
|
|
18,159
|
|
|
89,618
|
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
24,505
|
|
|
$
|
57,830
|
|
|
|
|
|
|
|
|
||||
Supplemental Cash Flow Information:
|
|
|
|
|
|
||||
Cash paid for interest
|
|
$
|
28,484
|
|
|
$
|
308,542
|
|
|
Cash paid for income taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Non-Cash Transactions:
|
|
|
|
|
|
||||
Non-cash conversions of preferred stock and convertible notes to equity
|
|
$
|
1,259,741
|
|
|
$
|
5,843,954
|
|
|
Non-cash financing costs
|
|
$
|
10,800
|
|
|
$
|
25,000
|
|
|
Accounts payable converted to notes payable
|
|
$
|
—
|
|
|
$
|
308,041
|
|
|
Interest converted to principal
|
|
$
|
171,152
|
|
|
$
|
140,355
|
|
|
Common shares issued for fees
|
|
$
|
15,825
|
|
|
$
|
—
|
|
|
Initial embedded derivative liabilities
|
|
$
|
3,781,186
|
|
|
$
|
2,736,724
|
|
|
Promissory notes exchanged for convertible notes
|
|
$
|
850,000
|
|
|
$
|
511,871
|
|
|
|
|
As of September 30,
|
|
As of December 31,
|
||||
|
|
2019
|
|
2018
|
||||
Building
|
|
$
|
5,828,960
|
|
|
$
|
5,828,960
|
|
Furniture, fixtures, computer hardware and computer software
|
|
489,421
|
|
|
489,421
|
|
||
Manufacturing machinery and equipment
|
|
26,593,588
|
|
|
30,302,806
|
|
||
Depreciable property, plant and equipment
|
|
32,911,969
|
|
|
36,621,187
|
|
||
Less: Accumulated depreciation and amortization
|
|
(28,632,301
|
)
|
|
(32,207,829
|
)
|
||
Net property, plant and equipment
|
|
$
|
4,279,668
|
|
|
$
|
4,413,358
|
|
|
|
As of September 30,
|
|
As of December 31,
|
||||
|
|
2019
|
|
2018
|
||||
Raw materials
|
|
$
|
684,390
|
|
|
$
|
660,791
|
|
Work in process
|
|
—
|
|
|
—
|
|
||
Finished goods
|
|
—
|
|
|
—
|
|
||
Total
|
|
$
|
684,390
|
|
|
$
|
660,791
|
|
|
|
Global Ichiban
|
|
St. George
|
|
Total
|
||||||
Secured Notes Principal Balance at December 31, 2017
|
|
$
|
4,557,227
|
|
|
$
|
—
|
|
|
$
|
4,557,227
|
|
New notes
|
|
1,935,000
|
|
|
1,315,000
|
|
|
3,250,000
|
|
|||
Note conversions
|
|
(1,426,000
|
)
|
|
—
|
|
|
(1,426,000
|
)
|
|||
Interest converted to principal
|
|
140,518
|
|
|
—
|
|
|
140,518
|
|
|||
Note assignments
|
|
(250,000
|
)
|
|
—
|
|
|
(250,000
|
)
|
|||
Secured Notes Principal Balance at December 31, 2018
|
|
4,956,745
|
|
|
1,315,000
|
|
|
6,271,745
|
|
|||
Less: remaining discount
|
|
(2,012,698
|
)
|
|
(811,667
|
)
|
|
(2,824,365
|
)
|
|||
Secured Notes, net of discount, at December 31, 2018
|
|
2,944,047
|
|
|
503,333
|
|
|
3,447,380
|
|
|||
New notes
|
|
—
|
|
|
845,000
|
|
|
845,000
|
|
|||
Note conversions
|
|
(115,000
|
)
|
|
—
|
|
|
(115,000
|
)
|
|||
Interest converted to principal
|
|
171,152
|
|
|
—
|
|
|
171,152
|
|
|||
Secured Notes Principal Balance at September 30, 2019
|
|
5,012,897
|
|
|
2,160,000
|
|
|
7,172,897
|
|
|||
Less: remaining discount
|
|
(995,249
|
)
|
|
(346,666
|
)
|
|
(1,341,915
|
)
|
|||
Secured Notes, net of discount, at September 30, 2019
|
|
$
|
4,017,648
|
|
|
$
|
1,813,334
|
|
|
$
|
5,830,982
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
3,533,861
|
|
||
Change in fair value of derivative liability
|
(422,392
|
)
|
|||
Derivative Liability Balance as of September 30, 2019
|
$
|
3,111,469
|
|
Closing Date
|
Closing Amount
|
Proceeds
|
||||
11/7/2018
|
$
|
260,000
|
|
$
|
200,000
|
|
11/19/2018
|
$
|
120,000
|
|
$
|
100,000
|
|
11/30/2018
|
$
|
120,000
|
|
$
|
100,000
|
|
12/7/2018
|
$
|
120,000
|
|
$
|
100,000
|
|
12/17/2018
|
$
|
120,000
|
|
$
|
100,000
|
|
1/3/2019
|
$
|
120,000
|
|
$
|
100,000
|
|
1/17/2019
|
$
|
120,000
|
|
$
|
100,000
|
|
1/30/2019
|
$
|
120,000
|
|
$
|
100,000
|
|
2/8/2019
|
$
|
120,000
|
|
$
|
100,000
|
|
Closing Date
|
Closing Amount
|
Proceeds
|
||||
3/15/2019
|
$
|
125,000
|
|
$
|
100,000
|
|
3/22/2019
|
$
|
120,000
|
|
$
|
100,000
|
|
4/4/2019
|
$
|
120,000
|
|
$
|
100,000
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
3,292,692
|
|
||||
Additional derivative liability on new notes
|
1,752,197
|
|
|||||
Change in fair value of derivative liability
|
(2,897,211
|
)
|
|||||
Derivative Liability Balance as of September 30, 2019
|
$
|
2,147,678
|
|
|
Investor 1
|
Investor 2
|
Total
|
||||||
Promissory Notes Principal Balance at December 31, 2017
|
$
|
494,437
|
|
$
|
200,000
|
|
$
|
694,437
|
|
New principal
|
—
|
|
850,000
|
|
850,000
|
|
|||
Notes exchanged
|
—
|
|
(200,000
|
)
|
(200,000
|
)
|
|||
Promissory Notes Principal Balance at December 31, 2018
|
494,437
|
|
850,000
|
|
1,344,437
|
|
|||
Less: remaining discount
|
—
|
|
(104,583
|
)
|
(104,583
|
)
|
|||
Promissory Notes, net of discount, at December 31, 2018
|
$
|
494,437
|
|
$
|
745,417
|
|
$
|
1,239,854
|
|
New principal
|
—
|
|
530,000
|
|
530,000
|
|
|||
Notes exchanged
|
—
|
|
(850,000
|
)
|
(850,000
|
)
|
|||
Promissory Notes Principal Balance at September 30, 2019
|
494,437
|
|
530,000
|
|
1,024,437
|
|
|||
Less: remaining discount
|
—
|
|
(70,000
|
)
|
(70,000
|
)
|
|||
Promissory Notes, net of discount, at September 30, 2019
|
$
|
494,437
|
|
$
|
460,000
|
|
$
|
954,437
|
|
|
Principal Balance 12/31/2017
|
New Notes
|
Notes assigned or exchanged
|
Notes converted
|
Principal Balance 12/31/2018
|
Less: Discount Balance
|
Net Principal Balance 12/31/18
|
||||||||||||||
October 2016 Notes
|
$
|
330,000
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
330,000
|
|
$
|
—
|
|
$
|
330,000
|
|
St. George Notes
|
1,705,833
|
|
—
|
|
—
|
|
(606,600
|
)
|
1,099,233
|
|
(96,177
|
)
|
1,003,056
|
|
|||||||
BayBridge Notes
|
—
|
|
—
|
|
270,000
|
|
(207,500
|
)
|
62,500
|
|
(62,100
|
)
|
400
|
|
|||||||
Bellridge Notes
|
—
|
|
150,000
|
|
550,000
|
|
(245,000
|
)
|
455,000
|
|
(123,360
|
)
|
331,640
|
|
|||||||
Power Up Notes
|
—
|
|
225,000
|
|
—
|
|
—
|
|
225,000
|
|
(110,621
|
)
|
114,379
|
|
|||||||
EMA Note
|
—
|
|
75,000
|
|
—
|
|
—
|
|
75,000
|
|
(1,753
|
)
|
73,247
|
|
|||||||
|
$
|
2,035,833
|
|
$
|
450,000
|
|
$
|
820,000
|
|
$
|
(1,059,100
|
)
|
$
|
2,246,733
|
|
$
|
(394,011
|
)
|
$
|
1,852,722
|
|
|
Principal Balance 12/31/2018
|
New Notes/Adjustments
|
Notes assigned or exchanged
|
Notes converted
|
Principal Balance 9/30/2019
|
Less: Discount Balance
|
Net Principal Balance 9/30/2019
|
||||||||||||||
October 2016 Notes
|
$
|
330,000
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
330,000
|
|
$
|
—
|
|
$
|
330,000
|
|
St. George Notes
|
1,099,233
|
|
(172,500
|
)
|
—
|
|
(255,070
|
)
|
671,663
|
|
—
|
|
671,663
|
|
|||||||
BayBridge Notes
|
62,500
|
|
—
|
|
1,160,000
|
|
(265,000
|
)
|
957,500
|
|
(658,333
|
)
|
299,167
|
|
|||||||
Bellridge Notes
|
455,000
|
|
—
|
|
—
|
|
(202,000
|
)
|
253,000
|
|
—
|
|
253,000
|
|
|||||||
Power Up Notes
|
225,000
|
|
149,500
|
|
—
|
|
(239,600
|
)
|
134,900
|
|
(61,263
|
)
|
73,637
|
|
|||||||
EMA Note
|
75,000
|
|
—
|
|
(75,000
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Widjaja Note
|
—
|
|
330,000
|
|
—
|
|
—
|
|
330,000
|
|
(54,909
|
)
|
275,091
|
|
|||||||
GS Capital Notes
|
—
|
|
178,568
|
|
75,000
|
|
(72,718
|
)
|
180,850
|
|
(79,167
|
)
|
101,683
|
|
|||||||
|
$
|
2,246,733
|
|
$
|
485,568
|
|
$
|
1,160,000
|
|
$
|
(1,034,388
|
)
|
$
|
2,857,913
|
|
$
|
(853,672
|
)
|
$
|
2,004,241
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
876,481
|
|
||
Additional derivative liability on new notes
|
—
|
|
|||
Change in fair value of derivative liability
|
(423,744
|
)
|
|||
Derivative Liability Balance as of September 30, 2019
|
$
|
452,737
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
1,060,000
|
|
||
Change in fair value of derivative liability
|
(975,258
|
)
|
|||
Derivative Liability Balance as of September 30, 2019
|
$
|
84,742
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
113,846
|
|
||
Additional derivative liability on new notes
|
1,376,670
|
|
|||
Change in fair value of derivative liability
|
(423,893
|
)
|
|||
Liability extinguished
|
(152,301
|
)
|
|||
Derivative Liability Balance as of September 30, 2019
|
$
|
914,322
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
486,279
|
|
||
Liability extinguished
|
(43,521
|
)
|
|||
Change in fair value of derivative liability
|
(408,132
|
)
|
|||
Derivative Liability Balance as of September 30, 2019
|
$
|
34,626
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
511,137
|
|
||
Additional derivative liability on new notes
|
222,593
|
|
|||
Liability extinguishment
|
(511,137
|
)
|
|||
Change in fair value of derivative liability
|
(89,997
|
)
|
|||
Derivative Liability Balance as of September 30, 2019
|
$
|
132,596
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
240,156
|
|
||
Liability assigned
|
(240,156
|
)
|
|||
Derivative Liability Balance as of June 30, 2019
|
$
|
—
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
—
|
|
||
Additional derivative liability on new notes
|
219,634
|
|
|||
Change in fair value of derivative liability
|
(77,774
|
)
|
|||
Derivative Liability Balance as of September 30, 2019
|
$
|
141,860
|
|
Derivative Liability Balance as of December 31, 2018
|
$
|
—
|
|
||
Additional derivative liability on new notes
|
210,092
|
|
|||
Derivative liability assigned
|
240,156
|
|
|||
Change in fair value of derivative liability
|
(405,737
|
)
|
|||
Derivative Liability Balance as of September 30, 2019
|
$
|
44,511
|
|
|
|
For nine months ended September 30,
|
|
For nine months ended September 30,
|
||||
|
|
2019
|
|
2018
|
||||
Research and development
|
|
$
|
—
|
|
|
$
|
642
|
|
Selling, general and administrative
|
|
$
|
20,750
|
|
|
$
|
24,180
|
|
Total share-based compensation cost
|
|
$
|
20,750
|
|
|
$
|
24,822
|
|
|
|
Stock
Option Shares |
|
Weighted
Average Remaining Contractual Life in Years |
|
Outstanding at December 31, 2017
|
|
195
|
|
|
7.32
|
Granted
|
|
—
|
|
|
|
Exercised
|
|
—
|
|
|
|
Canceled
|
|
(85
|
)
|
|
|
Outstanding at December 31, 2018
|
|
110
|
|
|
5.18
|
Granted
|
|
—
|
|
|
|
Exercised
|
|
—
|
|
|
|
Canceled
|
|
(13
|
)
|
|
|
Outstanding at September 30, 2019
|
|
97
|
|
|
4.94
|
Exercisable at September 30, 2019
|
|
97
|
|
|
4.94
|
•
|
Our ability to generate customer acceptance of and demand for our products;
|
•
|
Successful ramping up of commercial production on the equipment installed;
|
•
|
Our products are successfully and timely certified for use in our target markets;
|
•
|
Successful operating of production tools to achieve the efficiencies, throughput and yield necessary to reach our cost targets;
|
•
|
The products we design are saleable at a price sufficient to generate profits;
|
•
|
Our ability to raise sufficient capital to enable us to reach a level of sales sufficient to achieve profitability on terms favorable to us;
|
•
|
Effective management of the planned ramp up of our domestic and international operations;
|
•
|
Our ability to successfully develop and maintain strategic relationships with key partners, including OEMs, system integrators, distributors, retailers and e-commerce companies, who deal directly with end users in our target markets;
|
•
|
Our ability to maintain the listing of our common stock on the OTCBB Market;
|
•
|
Our ability to implement remediation measures to address material weaknesses in internal control;
|
•
|
Our ability to achieve projected operational performance and cost metrics;
|
•
|
Our ability to enter into commercially viable licensing, joint venture, or other commercial arrangements; and
|
•
|
Availability of raw materials.
|
1.
|
Personnel and facility related expenses decreased $39,246, as compared to the same time period of 2018. The decrease in personnel and facility related costs was primarily due to a reduction in headcount and the use of contractors.
|
2.
|
Materials and equipment related expenses, decreased $16,761, as compared to the same time period of 2018. The decrease was due to a decrease in production of research and development products.
|
1.
|
Personnel and facility related costs increased $38,270 during the three months ended September 30, 2019, as compared to the the three months ended September 30, 2018. The overall increase in personnel related costs was primarily due to the increased use of consultants and contractors for the the three months ended September 30, 2019, as compared to the the three months ended September 30, 2018, offset by a reduction in headcount during the same period.
|
2.
|
Marketing and related expenses decreased $1,768 during the three months ended September 30, 2019, as compared to the three months ended September 30, 2018. The decrease in Marketing and related expenses is due to reduced marketing, advertising, and promotional activities during the the three months ended September 30, 2019, compared to the same time period of 2018, which is the direct result of reducing our marketing budget to focus more on the development of our PV.
|
3.
|
Legal expenses decreased $8,797 during the three months ended September 30, 2019, as compared to the three months ended September 30, 2018. The primary reasons for the decrease is due to decreased general legal expenses related to financing efforts as compared to the three months ended September 30, 2018 and decreases in legal expenses related to our patent activity as compared to the same period of 2018.
|
4.
|
Public company expenses increased $4,878 during the three months ended September 30, 2019, as compared to the the three months ended September 30, 2018. This increase is primarily due to accrued fees for the Company's board of directors, offset by the costs related to the reverse split which occurred during the three months ended September 30, 2018.
|
5.
|
Bad debt expenses decreased approximately $6,801 during the three months ended September 30, 2019, as compared to the three months ended September 30, 2018.
|
1.
|
During the three months ended September 30, 2019, the Company disposed of certain manufacturing assets and recognized a gain of $6,000 in Other income compared to a gain of $13,144 for the three months ended September 30, 2018, a reduction of $7,144.
|
2.
|
Interest expense increased approximately $177,178, as compared to the three months ended September 30, 2018. The increase is primarily due to a increase of non-cash interest expense related to convertible debt and promissory notes.
|
3.
|
Gains and losses on change in fair value of derivatives and on extinguishment of liabilities, was a net gain of $1,510,883 for the three months ended September 30, 2019, as compared to a net gain of $3,284,736 for the three months ended September 30, 2018. The change of $1,773,853 in this non-cash item is attributable to a net gain of $1,518,008 on the change in fair value of our embedded derivative instruments during the three months ended September 30, 2019, compared to $3,858,483 in 2018, offset by a net loss from extinguishment of liabilities of $7,125, related to conversions and redemptions of certain convertible notes and preferred stock, for the three months ended September 30, 2019, as compared to a net loss of $573,747 for three months ended September 30, 2018.
|
|
Decrease (Increase) in Net Loss
For the Three Months Ended
September 30, 2019
Compared to the Three Months Ended
September 30, 2018
|
||
Revenues
|
$
|
306,372
|
|
Cost of Revenue
|
(74,271
|
)
|
|
Research, development and manufacturing operations
|
|
||
Materials and Equipment Related Expenses
|
16,761
|
|
|
Personnel and Facility Related Expenses
|
39,246
|
|
|
Selling, general and administrative expenses
|
|
||
Personnel, Administrative, and Facility Related Expenses
|
(38,270
|
)
|
|
Marketing Related Expenses
|
1,768
|
|
|
Legal Expenses
|
8,797
|
|
|
Public Company Costs
|
(4,878
|
)
|
|
Bad Debt Expense
|
6,801
|
|
|
Depreciation and Amortization Expense
|
32,950
|
|
|
Other Income/Expense
|
|
||
Interest Expense
|
(7,144
|
)
|
|
Other Income/Expense
|
(177,178
|
)
|
|
Non-Cash Change in Fair Value of Derivative Liabilities and Gain/Loss on Extinguishment of Liabilities, net
|
(1,773,853
|
)
|
|
Increase to Net Loss
|
$
|
(1,662,899
|
)
|
1.
|
Personnel and facility related expenses decreased $1,237,527, as compared to the same time period of 2018. The decrease in personnel and facility related costs was primarily due to a reduction in headcount and the use of contractors.
|
2.
|
Materials and equipment related expenses, decreased $73,494, as compared to the same time period of 2018. The decrease was due to a decrease in production of research and development products.
|
1.
|
Personnel and facility related costs decreased $604,397 during the nine months ended September 30, 2019, as compared to the the nine months ended September 30, 2018. The overall decrease in personnel related costs was primarily due a lower headcount for the the nine months ended September 30, 2019, as compared to the the nine months ended September 30, 2018 as well as the decreased use of consultants and contractors during the same period.
|
2.
|
Marketing and related expenses decreased $22,145 during the nine months ended September 30, 2019, as compared to the nine months ended September 30, 2018. The decrease in Marketing and related expenses is due to reduced marketing, advertising, and promotional activities during the the nine months ended September 30, 2019, compared to the same time period of 2018, which is the direct result of reducing our marketing budget to focus more on the development of our PV.
|
3.
|
Legal expenses decreased $165,483 during the nine months ended September 30, 2019, as compared to the the nine months ended September 30, 2018. The primary reasons for the decrease is due to decreased general legal expenses related to financing efforts as compared to the the nine months ended September 30, 2018 and decreases in legal expenses related to our patent activity as compared to the same period of 2018.
|
4.
|
Public company expenses increased $63,832 during the nine months ended September 30, 2019, as compared to the the nine months ended September 30, 2018. This increase is primarily due to accrued fees for the Company's board of directors, offset by the timing of the annual meeting in 2019, and the costs of the reverse stock split in 2018.
|
5.
|
Bad debt and settlement expenses increased $30,120 during the nine months ended September 30, 2019, as compared to the nine months ended September 30, 2018. During 2018 we recorded payments and settlements against existing reserves. We did not have settlement expenses during 2019.
|
1.
|
During the nine months ended September 30, 2019, the Company disposed of certain manufacturing assets and recognized a gain of $842,500 in Other income, compared to a gain of $13,144 in 2018, an increase of $829,356.
|
2.
|
Interest expense increased $1,461,081, as compared to the nine months ended September 30, 2018. The increase is primarily due to an increase of non-cash interest expense related to convertible debt and promissory notes.
|
3.
|
Gains and losses on change in fair value of derivatives and on extinguishment of liabilities, was a net gain of $6,430,048 for the nine months ended September 30, 2019, as compared to a net gain of $2,599,870 for the nine months ended September 30, 2018. The change of $3,830,178 in this non-cash item is attributable to a net gain of $6,124,139 on the change in fair value of our embedded derivative instruments during the nine months ended September 30, 2019, compared to a net gain $4,532,147 in 2018, and by an increase in the gain from extinguishment of liabilities of $2,238,186, related to conversions and redemptions of certain convertible notes and preferred stock, for the nine months ended September 30, 2019, as compared to the the nine months ended September 30, 2018.
|
|
Decrease (Increase) in Net Loss
For the Nine Months Ended
September 30, 2019
Compared to the Nine Months Ended
September 30, 2018
|
||
Revenues
|
$
|
115,651
|
|
Cost of Revenue
|
220,784
|
|
|
Research, development and manufacturing operations
|
|
||
Materials and Equipment Related Expenses
|
73,494
|
|
|
Personnel and Facility Related Expenses
|
1,237,527
|
|
|
Selling, general and administrative expenses
|
|
||
Personnel, Administrative, and Facility Related Expenses
|
604,397
|
|
|
Marketing Related Expenses
|
22,145
|
|
|
Legal Expenses
|
165,483
|
|
|
Public Company Costs
|
(63,832
|
)
|
|
Bad Debt Expense
|
(30,120
|
)
|
|
Depreciation and Amortization Expense
|
104,161
|
|
|
Other Income/Expense
|
|
||
Interest Expense
|
(1,461,081
|
)
|
|
Other Income/Expense
|
829,356
|
|
|
Non-Cash Change in Fair Value of Derivative Liabilities and (Gain)/Loss on Extinguishment of Liabilities, net
|
3,830,178
|
|
|
Decrease in Net Loss
|
$
|
5,648,143
|
|
•
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
|
•
|
provide reasonable assurance transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.
|
•
|
The Company was understaffed and did not have sufficiently trained resources with the technical expertise to ensure that all company transactions were accounted for in accordance with GAAP. This deficiency arose primarily from staff turnover and the inability of the Company to devote sufficient replacement resources in a timely manner, as a result of the Company's financial situation
|
•
|
Accounting for the Company's inventory and cost of revenue was lacking for the preparation of the September 30, 2019 financial statements. Miscalculations in these areas could impact the Company's current assets, revenues, operating results, and cash flows.
|
•
|
The Company plans to engage a resource, either as internal staff or an external contractor, with the technical expertise to track and report on inventory transactions and cost of revenue calculations.
|
•
|
The Company will design and implement additional procedures in order to assure that the resource mentioned above and other audit/accounting personnel are more involved with the Company’s inventory activities and cost of revenue allocations to monitor and earlier identify accounting issues that may be raised by the Company’s ongoing activities.
|
|
ASCENT SOLAR TECHNOLOGIES, INC.
|
|
|
|
|
|
By:
|
/S/ VICTOR LEE
|
|
|
Lee Kong Hian (aka Victor Lee)
President and Chief Executive Officer
(Principal Executive Officer, Principal Financial Officer, Chief Accounting Officer, and Authorized Signatory)
|
1 Year Ascent Solar Technologies (PK) Chart |
1 Month Ascent Solar Technologies (PK) Chart |
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