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What changed in Ascent Solar Technologies, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Ascent Solar Technologies, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+65 added−81 removedSource: 10-K (2026-03-20) vs 10-K (2025-03-31)

Top changes in Ascent Solar Technologies, Inc.'s 2025 10-K

65 paragraphs added · 81 removed · 54 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeIf we are not able to develop and implement policies and strategies that are effective in each location where we will do business, then our business, results of operations and financial condition could be materially and adversely affected. 10 Existing regulations and policies and changes to these regulations and policies may present technical, regulatory and economic barriers to the purchase and use of PV products, which may significantly reduce demand for our PV products.
Biggest changeIf we are not able to develop and implement policies and strategies that are effective in each 10 location where we will do business, then our business, results of operations and financial condition could be materially and adversely affected.
The solar energy and renewable energy industries are both highly competitive and continually evolving as 7 participants strive to distinguish themselves within their markets and compete with the larger electric power industry. We believe our main sources of competition are other thin film PV manufacturers and companies developing other solar solutions, such as solar thermal and concentrated PV technologies.
The solar energy and renewable energy industries are both highly competitive and continually evolving as participants strive to distinguish themselves within their markets and compete with the larger electric power industry. We believe our main sources of competition are other thin film PV manufacturers and companies developing other solar solutions, such as solar thermal and concentrated PV technologies.
The extent to which our flexible thin film PV modules will be widely adopted is uncertain. Many factors, of which several are outside of our control, may affect the viability of widespread adoption and demand for our flexible PV modules. We face intense competition from other manufacturers of thin-film PV modules and other companies in the solar energy industry.
The extent to which our flexible thin film PV modules will be widely adopted is uncertain. Many factors, of which several are outside of our control, may affect the viability of widespread adoption and demand for our flexible PV modules. 7 We face intense competition from other manufacturers of thin-film PV modules and other companies in the solar energy industry.
Our PV modules contain limited amounts of cadmium, which is regulated as a hazardous material due to the adverse health effects that may arise from human exposure and is banned in certain countries. We cannot assure you that human or environmental exposure to cadmium used in our PV modules will not occur.
Our PV modules contain 9 limited amounts of cadmium, which is regulated as a hazardous material due to the adverse health effects that may arise from human exposure and is banned in certain countries. We cannot assure you that human or environmental exposure to cadmium used in our PV modules will not occur.
In particular, we must perform system and process 11 evaluation and testing of our internal control over financial reporting to allow management to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of Sarbanes-Oxley. Our compliance with Section 404 of Sarbanes-Oxley will require we incur substantial accounting expense and expend significant management efforts.
In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of Sarbanes-Oxley. Our compliance with Section 404 of Sarbanes-Oxley will require we incur substantial accounting expense and expend significant management efforts.
As the only company, to our knowledge, focused on the commercial production of PV modules using CIGS on a flexible, plastic substrate with monolithic integration, we believe we have the opportunity to address the aerospace, agrivoltaics and other weight-sensitive markets with transformational high quality, value added product applications.
As the only company, to our knowledge, focused on the commercial production of PV modules using CIGS on a flexible, plastic substrate with monolithic integration, we believe we have the opportunity to address the aerospace and other weight-sensitive markets with transformational high quality, value added product applications.
Our auditors have expressed substantial doubt about our ability to continue as a going concern. Our auditors’ report on our December 31, 2024 financial statements expresses an opinion that our capital resources as of the date of their audit report were not sufficient to sustain operations or complete our planned activities for the year 2025 unless we raised additional funds.
Our auditors have expressed substantial doubt about our ability to continue as a going concern. Our auditors’ report on our December 31, 2025 financial statements expresses an opinion that our capital resources as of the date of their audit report were not sufficient to sustain operations or complete our planned activities for the year 2026 unless we raised additional funds.
Any such exposure could result in third party claims against us, damage to our reputation 9 and heightened regulatory scrutiny of our PV modules.
Any such exposure could result in third party claims against us, damage to our reputation and heightened regulatory scrutiny of our PV modules.
Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. Our December 31, 2024 financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. Our December 31, 2025, financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
We purchase component molybdenum, copper, indium, gallium, selenium and indium tin oxides from a variety of suppliers. We also currently are in the process of identifying and negotiating arrangements with alternative suppliers of materials in the United States and Asia.
We purchase component molybdenum, copper, indium, gallium, selenium and indium tin oxides from a variety of suppliers. We also continue the process of identifying and negotiating arrangements with alternative suppliers of materials in the United States and Asia.
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.
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, or vehicles in space or in flight.
Employees As of December 31, 2024, we had 16 full-time and 4 part-time employees. Company History We were formed in October 2005 from the separation by ITN of its Advanced Photovoltaic Division and all of that division’s key personnel and core technologies.
Employees As of December 31, 2025, we had 14 full-time and 4 part-time employees. Company History We were formed in October 2005 from the separation by ITN of its Advanced Photovoltaic Division and all of that division’s key personnel and core technologies.
During the years ended December 31, 2024 and 2023 we incurred approximately $2,300,948 and $3,222,283, respectively, in research, development and manufacturing operations costs, which include research and development incurred in customizing products for customers, as well as manufacturing costs incurred while developing our product lines and manufacturing process.
During the years ended December 31, 2025 and 2024, we incurred approximately $2,443,194 and $2,300,948, respectively, in research, development and manufacturing operations costs, which include research and development incurred in customizing products for customers, as well as manufacturing costs incurred while developing our product lines and manufacturing process.
We intend to sell thin-film PV modules for use in power beaming, space, near space solar, and agrivoltaics panel applications. 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.
We intend to sell thin-film PV modules for use in power beaming, space, near space solar, and and other 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.
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 agrivoltaics markets.
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 other markets that require durable specialty solar products.
For example, during the period from January 1, 2024 through December 31, 2024, our common stock ranged from $2.255 to $85.30, and in 2023, our common stock ranged from $75.50 to $28,600 (all prices as adjusted for our prior reverse stock splits).
For example, during the period from January 1, 2025 through December 31, 2025, our common stock ranged from $1.165 to $5.06, and in 2024, our common stock ranged from $2.255 to $85.30 (all prices as adjusted for our prior reverse stock splits).
We have to date incurred net losses and may be unable to generate sufficient sales in the future to become profitable. We incurred a net loss of $9,130,274 for the year ended December 31, 2024 and reported an accumulated deficit of $491,608,710 as of December 31, 2024. We expect to incur net losses in the near term.
We have to date incurred net losses and may be unable to generate sufficient sales in the future to become profitable. We incurred a net loss of $7,832,755 for the year ended December 31, 2025, and reported an accumulated deficit of $499,441,465 as of December 31, 2025. We expect to incur net losses in the near term.
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”), and agrivoltaics.
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”), aquatic, terrestrial, and other weight-sensitive markets (including DoD drone and space operations) with transformational high quality, value added product applications.
If we are unable to maintain the proprietary nature of our technologies, we could be materially adversely affected. 8 In addition, when others control the prosecution, maintenance and enforcement of certain important intellectual property, such as technology licensed to us, the protection and enforcement of the intellectual property rights may be outside of our control.
In addition, when others control the prosecution, maintenance and enforcement of certain important intellectual property, such as technology licensed to us, the protection and enforcement of the intellectual property rights may be outside of our control.
We expect to continue to incur net losses in the near term. For the year ended December 31, 2024, our cash used in operations was $8,423,569. At December 31, 2024, we had cash and equivalents on hand of $3,170,743.
We expect to continue to incur net losses in the near term. For the year ended December 31, 2025, our cash used in operations was $6,903,966. At December 31, 2025, we had cash and equivalents on hand of $2,786,493.
Product Update The Company continues to focus on cell and aerial efficiency improvements on our Copper-Indium-Gallium-diSelenide ("CIGS")-based solar cells. With the incorporation of Zn(O,S) as a buffer layer, the Company learned that reintroducing CdS as a combined hybrid buffer layer improved overall performance and efficiencies by minimizing optical losses and improving overall short-circuit current and open-circuit voltages.
Product Update The Company continues to focus on cell and aerial efficiency improvements on our Copper-Indium-Gallium-diSelenide ("CIGS")-based solar cells. The Company continues to improve overall performance and efficiencies by minimizing optical losses and improving overall short-circuit current and open-circuit voltages.
If we fail in the future to satisfy the continued listing requirements of Nasdaq, Nasdaq may take steps to delist our securities. Such a delisting would likely have a negative effect on the price and liquidity of our common stock and would impair your ability to sell or purchase our common stock when you wish to do so.
Such a delisting would likely have a negative effect on the price and liquidity of our common stock and would impair your ability to sell or purchase our common stock when you wish to do so.
To date, we have not successfully formed such strategic alliances and can give no assurances that we will be able to do so. 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.
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.
We cannot assure you we will be able to comply with all of these requirements or the cost of such compliance will not prove to be a substantial competitive disadvantage vis-à-vis our privately held and larger public competitors.
We cannot assure you we will be able to comply with all of these requirements or the cost of such compliance will not prove to be a substantial competitive disadvantage vis-à-vis our privately held and larger public competitors. 11 The Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”) requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures.
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 will be subject to a one year Nasdaq Listing Panel Monitor.
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 was subjected to a one year Nasdaq Listing Panel Monitor. If we fail in the future to satisfy the continued listing requirements of Nasdaq, Nasdaq may take steps to delist our securities.
Despite our efforts to protect this information, unauthorized parties may attempt to obtain and use information that we regard as proprietary.
Despite our efforts to protect this information, unauthorized parties may attempt to obtain and use information that we regard 8 as proprietary. If we are unable to maintain the proprietary nature of our technologies, we could be materially adversely affected.
The Company continues to focus its R&D efforts on increasing aerial efficiencies and power to weight ratios in the AM0 spectrum.
These efforts resulted in Ascent’s engineering and production teams consistently achieving increases in device efficiency and overall performance since September 2023, with its latest achievement at 15.7%. The Company continues to focus its R&D efforts on increasing aerial efficiencies and power to weight ratios in the AM0 spectrum.
Product revenues did not result in a positive cash flow for the 2024 year, and are not anticipated to result in a positive cash flow for the next twelve months.
Product revenues did not result in a positive cash flow for the 2025 year, and are not anticipated to result in a positive cash flow for the next twelve months. During 2025, we entered into multiple financing agreements to fund operations, raising approximately $7.3 million in gross proceeds, which includes warrant exercises.
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During 2024, we entered into multiple financing agreements to fund operations, raising approximately $17.2 million in gross proceeds, of which $6.1 million was used to pay down debt and repurchase fully ratcheting warrants.
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While we have formed some strategic alliances and will continue expand our partnership base, these strategic alliances are in early stages and we can give no assurances that these relationships will generate our desired results.
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The Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”) requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures.
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Existing regulations and policies and changes to these regulations and policies may present technical, regulatory and economic barriers to the purchase and use of PV products, which may significantly reduce demand for our PV products.
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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.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−5 removed0 unchanged
Biggest changeOn May 15, 2024, the Company and Wainwright reached a settlement agreement. For additional information on contingencies and legal proceedings, see "Note 19 - Commitments and Contingencies" to our financial statements included in this Annual Report on Form 10-K. Item 4. Mine Saf ety Disclosures Not applicable. 14 PART II
Biggest changeItem 3. Legal Proceedings Details of the Company’s legal proceedings are included "Note 17 - Commitments and Contingencies" to our financial statements included in this Annual Report on Form 10-K. Item 4. Mine Saf ety Disclosures Not applicable. 14 PART II
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Item 3. Legal Proceedings From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business.
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Except as noted below, we are not currently a party to any material legal proceedings, the adverse outcome of which, in our management’s opinion, individually or in the aggregate, could have a material adverse effect on the results of our operations or financial position.
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There are no material proceedings in which any of our directors, officers or affiliates or any registered or beneficial stockholder of more than 5% of our common stock is an adverse party or has a material interest adverse to our interest. On August 15, 2023, H.C.
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Wainwright & Co., LLC (“Wainwright”) filed an action against the Company in the New York State Supreme Court in New York County. The complaint alleges a breach by the Company of an investment banking engagement letter entered into in October 2021. The Wainwright engagement letter expired in April 2022 without any financing transaction having been completed.
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The complaint claims that Wainright is entitled, under a “tail provision”, to an 8% fee and 7% warrant coverage on the Company’s $15 million secured convertible note financing. The complaint seeks damages of $1.2 million, 21.7 common stock warrants (adjusted for our reverse stock split) with a per share exercise price of $60,500, and attorney fees.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeDuring the years ended December 31, 2024 and 2023, we did not pay any common stock dividends, and we do not expect to declare or pay any dividends in the foreseeable future.
Biggest changeDuring the years ended December 31, 2025 and 2024, we did not pay any common stock dividends, and we do not expect to declare or pay any dividends in the foreseeable future.
Recent Sales of Unregistered Securities During the year ended December 31, 2024, all sales of unregistered securities by the Company have been previously reported on a Form 8-K or Form 10-Q. Issuer Purchases of Equity Securities We did not repurchase any of our equity securities during the period covered by this Annual Report. Item 6. [ Reserved] 15
Recent Sales of Unregistered Securities During the year ended December 31, 2025, all sales of unregistered securities by the Company have been previously reported on a Form 8-K or Form 10-Q. Issuer Purchases of Equity Securities We did not repurchase any of our equity securities during the period covered by this Annual Report. Item 6. [ Reserved] 15
Item 5. Market for Registrant’s Common Equity, Related Sto ckholder Matters and Issuer Purchases of Equity Securities Market Information On August 24, 2022, our common stock began trading on the Nasdaq Capital Market. Our trading symbol is “ASTI.” Holders As of December 31, 2024, the number of record holders of our common stock was 40.
Item 5. Market for Registrant’s Common Equity, Related Sto ckholder Matters and Issuer Purchases of Equity Securities Market Information On August 24, 2022, our common stock began trading on the Nasdaq Capital Market. Our trading symbol is “ASTI.” Holders As of December 31, 2025, the number of record holders of our common stock was 43.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

20 edited+9 added−19 removed15 unchanged
Biggest changeResults of Operations Comparison of the Years Ended December 31, 2024 and 2023 Year Ended December 31, 2024 2023 $ Change Revenues Product Revenue 41,893 397,886 (355,993 ) Milestone and engineering - 60,374 (60,374 ) Total Revenues 41,893 458,260 (416,367 ) Costs and Expenses Cost of Revenue 148,376 1,892,341 (1,743,965 ) Research, development and manufacturing operations 2,300,948 3,222,283 (921,335 ) Selling, general and administrative 4,506,337 5,364,523 (858,186 ) Share-based compensation 1,024,758 2,243,445 (1,218,687 ) Depreciation and amortization 74,142 95,238 (21,096 ) Impairment loss 524,481 3,283,715 (2,759,234 ) Total Costs and Expenses 8,579,042 16,101,545 (7,522,503 ) Loss From Operations (8,537,149 ) (15,643,285 ) 7,106,136 Other Income/(Expense) Other Income/(Expense), net 818,721 747,739 70,982 Warrant settlement (743,462 ) - (743,462 ) Interest Expense (665,718 ) (2,174,118 ) 1,508,400 Total Other Income/(Expense) (590,459 ) (1,426,379 ) 835,920 Income/(Loss) on Equity Method Investment (2,666 ) (232 ) (2,434 ) Net Income/(Loss) (9,130,274 ) (17,069,896 ) 7,939,622 Revenues.
Biggest changeForfeitures are estimated at the time of grant and revised, as necessary, in subsequent periods if actual forfeitures differ from those estimates. 17 Results of Operations Comparison of the Years Ended December 31, 2025 and 2024 Year Ended December 31, 2025 2024 $ Change Revenues Product Revenue 76,773 41,893 34,880 Total Revenues 76,773 41,893 34,880 Costs and Expenses Cost of Revenue 196,332 148,376 47,956 Research, development and manufacturing operations 2,443,194 2,300,948 142,246 Selling, general and administrative 4,098,004 4,506,337 (408,333 ) Share-based compensation 1,133,963 1,024,758 109,205 Depreciation and amortization 79,661 74,142 5,519 Impairment loss - 524,481 (524,481 ) Total Costs and Expenses 7,951,154 8,579,042 (627,888 ) Loss From Operations (7,874,381 ) (8,537,149 ) 662,768 Other Income/(Expense) Other Income/(Expense), net 94,478 818,721 (724,243 ) Warrant settlement - (743,462 ) 743,462 Interest Expense (51,994 ) (665,718 ) 613,724 Total Other Income/(Expense) 42,484 (590,459 ) 632,943 Income/(Loss) on Equity Method Investment (858 ) (2,666 ) 1,808 Net Income/(Loss) (7,832,755 ) (9,130,274 ) 1,297,519 Revenues.
Additional projected revenues are not anticipated to result in a positive cash flow position for the year 2024 overall and, although as of December 31, 2024, the Company has working capital of $1,432,912, Management believes that additional financing will be required for the Company to reach a level of sufficient sales to achieve profitability.
Additionally, projected revenues are not anticipated to result in a positive cash flow position for the year 2025 overall and, although as of December 31, 2025, the Company has working capital of $1,178,902, Management believes that additional financing will be required for the Company to reach a level of sufficient sales to achieve profitability.
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.
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.
As a result of the Company’s recurring losses from operations, and the need for additional financing to fund its operating and capital requirements, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern. 19 Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.
As a result of the Company’s recurring losses from operations, and the need for additional financing to fund its operating and capital requirements, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern.
These financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
For the year ended December 31, 2024 we generated $41,893 of total revenue, all of which, were from product sales. As of December 31, 2024, we had an accumulated deficit of approximately $491,608,710.
For the year ended December 31, 2025, we generated $76,773 of total revenue, all of which, were from product sales. As of December 31, 2025, we had an accumulated deficit of approximately $499,441,465.
If actual and estimated costs to complete a contract indicate a loss, provision is made currently for the loss anticipated on the contract. Share-Based Compensation: The Company measures and recognizes compensation expense for all share-based payment awards made to employees, officers, directors, and consultants based on estimated fair values.
Share-Based Compensation: The Company measures and recognizes compensation expense for all share-based payment awards made to employees, officers, directors, and consultants based on estimated fair values.
This decrease is primarily due to lower personnel incurred during the current year compared to the prior period. Share-based compensation. Share-based compensation expense decreased by $1,218,687 or 54%, for the year ended December 31, 2024 when compared to the same period in 2023. The decrease is due to the termination of our former CEO in April 2023.
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 $109,205 or 11%, for the year ended December 31, 2025, when compared to the same period in 2024.
Statements of Cash Flows Comparison of the Years Ended December 31, 2024 and 2023 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.
Statements of Cash Flows Comparison of the Years Ended December 31, 2025 and 2024 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, a decrease of $1,519,603. The decrease is due primarily to timing of cash flows and decreased expenses.
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, general and administrative. Selling, general and administrative expenses decreased by $858,186, or 16%, for the year ended December 31, 2024 when compared to the same period in 2023.
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.
During the current period, the Company recognized an additional impairment loss of $524,481 on these manufacturing assets as part of the Company's agreement to sell these assets. 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 Company recognized an impairment loss of $524,481 as part of the agreement to sell the manufacturing assets purchased in Switzerland (see Note 4) during the year ended December 31, 2024. During the current period, no impairment loss was recognized. Other Income/(Expense).
Liquidity and Capital Resources The Company has continued limited PV production at its manufacturing facility. 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 product strategy. During the year ended December 31, 2024 the Company used $8,423,569 in cash for operations.
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 our strategy of focusing on selling high value PV products and manufacturing at full industrial scale. During the year ended December 31, 2025, the Company used $6,903,966 in cash for operations.
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.
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.
Other income in 2023 included a one-time employee retention credit. Net Income/(Loss). Our Net Loss was $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. The decrease is due to the reasons described above.
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, a decrease of $1,297,519. The decrease is primarily due to the reasons described above.
Cash provided by financing activities in 2024 was primarily derived from public and private offering and a series of bridge loans partially offset by the loan repayments, warrant repurchase, and repayment of conversions payables associated with a 2022 offering.
Cash provided by financing activities in 2024 was primarily derived from common stock sales under an at the market agreement, public and private equity offerings and a series of bridge loans partially offset by loan and debt repayments and the repurchase of fully ratcheting warrants.
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. Off Balance Sheet Transactions As of December 31, 2024, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.
Off Balance Sheet Transactions As of December 31, 2025, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K. 19
The decrease is due primarily to decreases in manufacturing activities as the Company continues to focus on product and technology improvements. For the year ended December 31, 2024, cash used in investing activities was $421 compared to cash used in investing activities of $3,877,366 for the year ended December 31, 2023.
For the year ended December 31, 2025, cash used in investing activities was $107,015 compared to cash used in investing activities of $421 for the year ended December 31, 2024. The increase was primarily due to the purchase of a cost investment and fixed assets.
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 18 not repeated in the current period.
Total revenues increased by $34,880, or by 83%, for the year ended December 31, 2025, when compared to the same period in 2024. This is primarily due to more customer orders in the current period compared to prior period. Cost of revenues. Cost of revenues is comprised primarily of material costs, repair and maintenance, direct labor and overhead expenses.
For the year ended December 31, 2024, our cash provided by financing activities was $10,546,000 compared to $2,962,720 for the year ended December 31, 2023, an increase of $7,583,280.
During the year ended December 31, 2025, cash used in operations of $6,903,966 were primarily funded from 2025 and 2024 financing agreements. For the year ended December 31, 2025, our cash provided by financing activities was $6,626,731 compared to $10,546,000 for the year ended December 31, 2024, a decrease of $3,919,269.
Actual results may differ from these estimates under different assumptions or conditions. We have identified the policies below as critical to our business operations and to the understanding of our financial results: 16 Significant Accounting Policies Inventories: All inventories are stated at the lower of cost or net realizable value, with cost determined using the weighted average method.
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. Inventories: All inventories are stated at the lower of cost or net realizable value, with cost determined using the weighted average method.
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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.
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Actual results may differ from these estimates under different assumptions or conditions.
Removed
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.
Added
We have identified the policies below as critical to our business operations and to the understanding of our financial results: 16 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.
Removed
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.
Added
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.
Removed
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.
Added
The increase is primarily due to the Company's stock option grant to employees, directors, and advisory board in August 2024 and June 2025, partially offset by lower restricted stock unit expenses in current period. Impairment loss. The impairment loss decreased by $524,481 or 100%.
Removed
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.
Added
Other expense decreased by $632,943 or 107%, for the year ended December 31, 2025 when compared to the same period in 2024.
Removed
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.
Added
During December 31, 2024, other expense was primarily comprised of other income of 18 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.
Removed
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.
Added
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. Net Income/(Loss).
Removed
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.
Added
Liquidity and Capital Resources The Company has limited industrial scale production capabilities in its Thornton facility and continues to focus on its research and development activities to improve its PV products.
Removed
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.
Added
Cash provided by financing activities in 2025 was primarily derived from common stock sales under an at the market agreement, public and private stock offerings, and warrant exercises.
Removed
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.
Removed
Forfeitures are estimated at the time of grant and revised, as necessary, in subsequent periods if actual forfeitures differ from those estimates. 17 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.
Removed
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").
Removed
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.
Removed
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.
Removed
Management is evaluating the impact of other new pronouncements issued but not effective as of December 31, 2024. See Note 2 for additional information.
Removed
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.
Removed
This is partially offset with the Company's RSU and options granted to employees, directors, and advisory board in 2024. Impairment loss. The impairment loss decreased by $2,759,234 or 84%. The Company recognized an impairment loss of $3,283,715 during the year ended December 31, 2023 for the manufacturing assets purchased from Flisom.
Removed
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.
Removed
This change was primarily the result of the asset acquisition in Zurich, Switzerland in the prior period. During the year ended December 31, 2024, cash used in operations of $8,423,569 were primarily funded from 2023 and 2024 financing agreements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−0 removed4 unchanged
Biggest changeAs of December 31, 2024, our cash equivalents consisted of operating accounts held with financial institutions and investments in money market funds. From time to time, we hold restricted funds, money market funds, investments in U.S. government securities and high-quality corporate securities.
Biggest changeAs of December 31, 2025, our cash equivalents consisted of operating accounts held with financial institutions and investments in money market funds. From time to time, we may hold restricted funds, money market funds, investments in U.S. government securities and high-quality corporate securities.
We hold no significant funds and have no significant future obligations denominated in foreign currencies as of December 31, 2024. Interest Rate Risk Our exposure to market risks for changes in interest rates relates primarily to our cash equivalents and investment portfolio.
We hold no significant funds and have no significant future obligations denominated in foreign currencies as of December 31, 2025. Interest Rate Risk Our exposure to market risks for changes in interest rates relates primarily to our cash equivalents and investment portfolio.

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