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What changed in Ascent Solar Technologies, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Ascent Solar Technologies, Inc.'s 2023 and 2024 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 2024 report.

+98 added−120 removedSource: 10-K (2025-03-31) vs 10-K (2024-02-21)

Top changes in Ascent Solar Technologies, Inc.'s 2024 10-K

98 paragraphs added · 120 removed · 83 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

46 edited+9 added−28 removed163 unchanged
Biggest changeNasdaq $1.00 Bid Price Requirement On December 11, 2023, the Company received a written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) indicating that the Company is not in compliance with the $1.00 Minimum Bid Price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market (the “Bid Price Requirement”).
Biggest changeDuring 2023 and 2024, the Company received notices from Nasdaq indicating that the Company was not in compliance with (i) Nasdaq Listing Rule 5550(b)(1), which requires companies listed on The Nasdaq Stock Market to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing, and (ii) Nasdaq Listing Rule 5550(a)(2) which requires companies listed on The Nasdaq Stock Market to maintain a minimum of a $1.00 bid price for continued listing.
Our ability to achieve our business, commercialization and expansion objectives will depend on a number of factors, including whether: • We can generate customer acceptance of and demand for our products; • We successfully ramp up commercial production on the equipment installed; • Our products are successfully and timely certified for use in our target markets; • We successfully operate production tools to achieve the efficiencies, throughput and yield necessary to reach our cost targets; 6 • The products we design are saleable at a price sufficient to generate profits; • We raise sufficient capital to enable us to reach a level of sales sufficient to achieve profitability on terms favorable to us; • We are able to successfully design, manufacture, market, distribute and sell our products; • We effectively manage the planned ramp up of our operations; • We successfully develop and maintain strategic relationships with key partners, including OEMs, system integrators and distributors, who deal directly with end users in our target markets; • Our ability to maintain the listing of our common stock on the Nasdaq Capital Market; • 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 • The availability of raw materials.
Our ability to achieve our business, commercialization and expansion objectives will depend on a number of factors, including whether: • We can generate customer acceptance of and demand for our products; • We successfully ramp up commercial production on the equipment installed; • Our products are successfully and timely certified for use in our target markets; • We successfully operate production tools to achieve the efficiencies, throughput and yield necessary to reach our cost targets; 5 • The products we design are saleable at a price sufficient to generate profits; • We raise sufficient capital to enable us to reach a level of sales sufficient to achieve profitability on terms favorable to us; • We are able to successfully design, manufacture, market, distribute and sell our products; • We effectively manage the planned ramp up of our operations; • We successfully develop and maintain strategic relationships with key partners, including OEMs, system integrators and distributors, who deal directly with end users in our target markets; • Our ability to maintain the listing of our common stock on the Nasdaq Capital Market; • 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 • The availability of raw materials.
We also believe CIGS offers other compelling advantages over both a-Si and CdTe, including: • CIGS versus a-Si: Although a-Si, like CIGS, can be deposited on a flexible substrate, its conversion efficiency, which already is generally much lower than that of CIGS, measurably degrades when it is exposed to ultraviolet light, including natural sunlight.
We also believe CIGS offers other compelling advantages over both a-Si and CdTe, including: 1 • CIGS versus a-Si: Although a-Si, like CIGS, can be deposited on a flexible substrate, its conversion efficiency, which already is generally much lower than that of CIGS, measurably degrades when it is exposed to ultraviolet light, including natural sunlight.
Competitive Strengths We believe we possess a number of competitive strengths that provide us with an advantage over our competitors. • We are a pioneer in CIGS technology with a proprietary, flexible, lightweight, high power PV thin film product that positions us to penetrate a wide range of attractive high value added markets such as aerospace and agrivoltaics.
Competitive Strengths We believe we possess a number of competitive strengths that provide us with an advantage over our competitors. • We are a pioneer in CIGS technology with a proprietary, flexible, lightweight, high power PV thin film product that positions us to penetrate a wide range of attractive high value added markets such as aerospace, power beaming, and agrivoltaics.
We continue to pursue research and development in an effort to drive efficiency improvements in our current PV modules and to work toward next generation technologies and additional applications. • Our manufacturing process can be differentiated into two distinct functions; a front-end module manufacturing process and a back-end packaging process.
We continue to pursue research 2 and development in an effort to drive efficiency improvements in our current PV modules and to work toward next generation technologies and additional applications. • Our manufacturing process can be differentiated into two distinct functions; a front-end module manufacturing process and a back-end packaging process.
For applications where a premium is placed on the weight and profile of the product, our ability to integrate our PV modules into portable packages offers the customer a lightweight and durable solution. 2 • Our proven research and development capabilities position us to continue the development of next generation PV modules and technologies.
For applications where a premium is placed on the weight and profile of the product, our ability to integrate our PV modules into portable packages offers the customer a lightweight and durable solution. • Our proven research and development capabilities position us to continue the development of next generation PV modules and technologies.
To the best of our knowledge, we believe we are the only company in the world currently focused on commercial scale production of PV modules using CIGS on a flexible, 1 plastic substrate with monolithic integration.
To the best of our knowledge, we believe we are the only company in the world currently focused on commercial scale production of PV modules using CIGS on a flexible, plastic substrate with monolithic integration.
This provision could have the effect of delaying or preventing a change of control, whether or not it is desired by, or beneficial to, our stockholders. Item 1B. Unresolv ed Staff Comments None.
This provision could have the effect of delaying or preventing a change of control, whether or not it is desired by, or beneficial to, our stockholders. Item 1B. Unresolv ed Staff Comments None. 13
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 portable power 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, vehicles in space or in flight or dual-use installations on agricultural land.
We make available free of charge on, or through, our website at www.AscentSolar.com our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) as soon as reasonably practicable after we file these materials with the SEC. 5 Ite m 1A.
We make available free of charge on, or through, our website at www.AscentSolar.com our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) as soon as reasonably practicable after we file these materials with the SEC. 4 Ite m 1A.
If 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. 11 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.
If 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.
Demand for our products also will depend on our ability to develop and maintain successful relationships with key partners, including distributors, retailers, OEMs, system integrators and value-added resellers. If our products fail to gain market acceptance as quickly as we envision or at all, our business, results of operations and financial condition could be materially and adversely affected.
Demand for our products also will depend on our ability to develop and maintain successful relationships with key partners, including direct customers, distributors, retailers, OEMs, system integrators and value-added resellers. If our products fail to gain market acceptance as quickly as we envision or at all, our business, results of operations and financial condition could be materially and adversely affected.
Our auditors have expressed substantial doubt about our ability to continue as a going concern. Our auditors’ report on our December 31, 2023 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 2024 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, 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.
The solar energy and renewable energy industries are both highly competitive and continually evolving as 8 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 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.
In particular, we must perform system and process 12 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 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.
If we are unable to maintain the proprietary nature of our technologies, we could be materially adversely affected. 9 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.
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.
Failure to consummate strategic relationships with key partners in our various target market segments, such as defense and portable power, 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.
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.
Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. Our December 31, 2023 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, 2024 financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
Failure to 7 meet these objectives on time and within our planned budget could materially and adversely affect our business, results of operations and financial condition. We may be unable to manage the expansion of our operations and strategic alliances effectively.
Failure to 6 meet these objectives on time and within our planned budget could materially and adversely affect our business, results of operations and financial condition. We may be unable to manage the expansion of our operations and strategic alliances effectively.
Any such exposure could result in third party claims against us, damage to our reputation 10 and heightened regulatory scrutiny of our PV modules.
Any such exposure could result in third party claims against us, damage to our reputation 9 and heightened regulatory scrutiny of our PV modules.
Product revenues did not result in a positive cash flow for the 2023 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 2024 year, and are not anticipated to result in a positive cash flow for the next twelve months.
We intend to sell thin-film PV modules for use in agrivoltaics, space and near space solar panel applications. Our marketing and distribution strategy is to form strategic relationships with 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 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.
Employees As of December 31, 2023, we had 16 full-time and 2 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, 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.
During the years ended December 31, 2023 and 2022 we incurred approximately $3,222,283 and $5,975,921, respectively, in research, development 3 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, 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.
We anticipate that while these large manufacturers may continue to dominate the market with their silicon-based products, thin film manufacturers will likely capture an increasingly larger share of the market, as is evident from the success of First Solar (CdTe). We believe that our modules offer unique advantages.
We anticipate that while these large manufacturers may continue to dominate the market with their silicon-based products, thin film manufacturers will likely capture an increasingly larger share of the market. We believe that our modules offer unique advantages.
Although we have commenced production at our manufacturing facility, we do not expect that sales revenue and cash flows will be sufficient to support operations and cash requirements until we have fully implemented our new strategy of focusing on high value PV products.
We do not expect that sales revenue and cash flows will be sufficient to support operations and cash requirements until we have fully implemented our strategy of focusing on high value PV products and manufacturing at full industrial scale.
Ascent designs and develops finished products for end users in these areas and collaborates with strategic partners to design and develop integrated solutions for products like satellites, spacecraft, airships and fixed-wing unmanned aerial vehicles ("UAVs").
Ascent designs and develops finished products for end users in these areas and collaborates with strategic partners to design and develop integrated solutions for products like satellites, spacecraft, airships and UAV.
In early 2006, ITN assigned to us certain CIGS PV-specific technologies, and granted to us a perpetual, exclusive, royalty free, worldwide license to use these technologies in connection with the manufacture, development, marketing and commercialization of CIGS PV to produce solar power.
Research and Development and Intellectual Property Our technology was initially developed at ITN beginning in 1994. In early 2006, ITN assigned to us certain CIGS PV-specific technologies, and granted to us a perpetual, exclusive, royalty free, worldwide license to use these technologies in connection with the manufacture, development, marketing and commercialization of CIGS PV to produce solar power.
We purchased manufacturing equipment in Switzerland and, in the future, may look to expand our operations abroad and, as a result, we may be subject to the legal, political, social and regulatory requirements and economic conditions of foreign jurisdictions.
We conduct business with international parties and, in the future, may look to expand our operations abroad and, as a result, we may be subject to the legal, political, social and regulatory requirements and economic conditions of foreign jurisdictions.
Our stockholders may experience significant dilution as a result of shares of our common stock that may be issued (i) upon the exercise of our outstanding common stock warrants, (ii) upon the conversion of our outstanding senior secured convertible notes and conversions payable, and (iii) pursuant to new securities that we may issue in the future.
Our stockholders may experience significant dilution as a result of shares of our common stock that may be issued (i) upon the exercise or conversion of our derivative securities including convertible preferred stock and warrants, and (ii) pursuant to new securities that we may issue in the future.
We believe the use of CdTe on a rigid, transparent substrate, such as glass, is unsuitable for a number of our applications. We also believe CIGS can achieve higher conversion efficiencies than CdTe in production. We believe our choice of substrate material further differentiates us from other thin-film PV manufacturers.
We believe the use of CdTe on a rigid, transparent substrate, such as glass, is unsuitable for a number of our applications. We also believe CIGS can achieve higher conversion efficiencies than CdTe in production.
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 $17,069,896 for the year ended December 31, 2023 and reported an accumulated deficit of $482,478,436 as of December 31, 2023. 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 $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 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 agrivoltaics, space and near space markets. Although certain areas of these markets have started to develop, some of them are in their infancy.
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.
In the event of a delisting, we would take actions to restore our compliance with Nasdaq’s listing requirements, but we can provide no assurance that any such action taken by us would allow our common stock to become listed again, stabilize the market price or improve the liquidity of our securities, prevent our common stock from dropping below the Nasdaq minimum share price requirement or prevent future non-compliance with Nasdaq’s listing requirements. 14 If our common stock were to be delisted from Nasdaq, our common stock could begin to trade on one of the markets operated by OTC Markets Group, including OTCQX, OTCQB or OTC Pink (formerly known as the “pink sheets”), as the case may be.
In the event of a delisting, we would take actions to restore our compliance with Nasdaq’s listing requirements, but we can provide no assurance that any such action taken by us would allow our common stock to become listed again, stabilize the market price or improve the liquidity of our securities, prevent our common stock from dropping below the Nasdaq minimum share price requirement or prevent future non-compliance with Nasdaq’s listing requirements.
We expect to continue to incur net losses in the near term. For the year ended December 31, 2023, our cash used in operations was $9,536,879. At December 31, 2023, we had cash and equivalents on hand of $1,048,733.
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.
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.
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.
Our common stock is currently listed on The Nasdaq Capital Market. In order to maintain that listing, we must satisfy minimum financial and other continued listing requirements and standards.
Failure to maintain the listing of our common stock with a U.S. national securities exchange could adversely affect the liquidity off our common stock. 12 Our common stock is currently listed on The Nasdaq Capital Market. In order to maintain that listing, we must satisfy minimum financial and other continued listing requirements and standards.
Our ability to produce finished unpackaged rolls of CIGS material for shipment worldwide to customers for encapsulation and integration into various products enhances our ability to work with partners internationally and domestically. Markets and Marketing Strategy We target high-value specialty solar markets including satellites, spacecraft, aerospace and agrivoltaics applications.
Our ability to produce finished unpackaged rolls of CIGS material for shipment worldwide to customers for encapsulation and integration into various products enhances our ability to work with partners internationally and domestically.
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.
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.
Such sales also may impair our ability to raise capital through the sale of additional equity securities in the future at a time and price that our management deems acceptable, if at all. In addition, a large number of our outstanding shares are not registered under the Securities Act.
Such sales also may impair our ability to raise capital through the sale of additional equity securities in the future at a time and price that our management deems acceptable, if at all. We may fail to continue to meet the listing standards of The Nasdaq Capital Market.
During 2023, we entered into multiple financing agreements to fund operations, raising approximately $11.2 million in gross proceeds, of which $7.1 million was used to pay down debt and the Company's Series 1B preferred stock.
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.
We also plan to continue to take advantage of research and development contracts to fund a portion of this development. We protect our intellectual property through a combination of trade secrets and patent protections.
We also plan to continue to take advantage of research and development contracts to fund a portion of this development.
For example, during the period from January 1, 2023 through December 31, 2023, our common stock ranged from $0.755 to $286.00, and in 2022, our common stock ranged from $300 to $6,600, all prices as adjusted for the reverse stock split.
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).
Our technology provides renewable power solutions to high-value production and specialty solar markets where traditional rigid solar panels are not suitable, including aerospace, agrivoltaics, and niche manufacturing/construction sectors. 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.
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.
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.
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.
We may issue substantial amounts of additional common stock in connection with the exercise or conversion of our outstanding common stock warrants, senior secured convertible notes, and conversions payable. Certain of these financing agreements contain variable pricing mechanisms.
We may issue substantial amounts of additional common stock in connection with the exercise or conversion of our derivative securities including convertible preferred stock and warrants. If we obtain additional financing involving the issuance of equity securities or securities convertible or exercisable for equity securities, our existing stockholders’ investment would be further diluted.
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Product Update During 2023, the Company also continued developing its zinc oxysulfide process. Zinc oxysulfide is used as a Cadmium-free window layer to improve the efficiency of Copper-Indium-Gallium-diSelenide ("CIGS")-based solar cells. The enhanced process will eliminate the usage of Cadmium Sulfide making it a more environmentally friendly process and product.
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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.
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Company continued to advance its CIGS-based solar cells resulting in more powerful solar cells. Specifically, the Company's Titan module, which the Company is planning to ship as early as Q1 2024, has 16.5W beginning of life output in AM0 conditions.
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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.
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Using an estimated degradation rate of 0.5% per year (crystalline degrades at an estimated rate of 1% per year), the Titan module has an expected end of life power density of 165w/m2 output. During 2023, the Company also achieved spaceflight heritage for its space PV array products.
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The Company continues to focus its R&D efforts on increasing aerial efficiencies and power to weight ratios in the AM0 spectrum.
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Beyond establishment of NASA Technology Readiness Level 9 (TRL9) for the Company’s products, this achievement also validates Ascent’s CIGS material, manufacturing, integration, and quality processes, representing a significant milestone for its space solutions.
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We also believe that, although over time, Gallium Arsenide ("GaSa") modules have achieved conversion efficiencies that are generally comparable to CIGS, GaSa is more expensive than our CIGS products and that CIGS has a more advantageous weight per watt output when compared to GaSa. We believe our choice of substrate material further differentiates us from other thin-film PV manufacturers.
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The market for space and near-space solar power application solutions, agrivoltaics, portable power systems, and transportation integrated applications represent a significant premium market for the Company.
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We protect our intellectual property through a combination of trade secrets and patent protections and own several patents that protect our manufacturing process. 3 Suppliers We rely on several unaffiliated companies to supply certain raw materials used during the fabrication of our PV modules and PV integrated electronics.
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This strategy enables us to fully leverage the unique advantages of our technology, including flexibility, durability and attractive power to weight and power to area performance. It further enables us to offer unique, differentiated solutions in large markets with less competition, and more attractive pricing.
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We currently have limited industrial scale production capacities and we continue to focus on research and development activities to improve our PV products.
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We believe the value proposition of Ascent’s proprietary solar technology not only aligns with the needs of customers in these markets, but also overcomes many of the obstacles other solar technologies face in these unique markets.
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Substantially all of our outstanding shares (and substantially all of the shares underlying our outstanding derivative securities), unless held by our affiliates, may be resold in the public market immediately without restriction. Shares held by our affiliates may be resold into the public market subject to compliance with the requirements of the SEC’s Rule 144.
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Ascent has the capability to design and develop finished products for end users in these areas as well as collaborate with strategic partners to design and develop custom integrated solutions for products like airships and fixed-wing UAVs.
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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.
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Ascent sees significant overlap in the needs of end users across some of these verticals and believes it can achieve economies of scale in sourcing, development, and production in commercializing products for these customers.
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If our common stock were to be delisted from Nasdaq, our common stock could begin to trade on one of the markets operated by OTC Markets Group, including OTCQX, OTCQB or OTC Pink (formerly known as the “pink sheets”), as the case may be.
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We consider PowerFilm Solar, Global Solar, and MiaSolé to be our closest competitors in terms of technology in the specialty PV market. Research and Development and Intellectual Property Our technology was initially developed at ITN beginning in 1994.
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We own the following patents: Issued Patents 1 US Patent No. 9,640,692 entitled "Flexible Photovoltaic Array with Integrated Wiring and Control Circuitry, and Associated Methods" (issued October 12, 2010) (co-owned with PermaCity Corporation) 2 US Patent No. 8,426,725 entitled “Apparatus and Method for Hybrid Photovoltaic Device Having Multiple, Stacked, Heterogeneous, Semiconductor Junctions” (issued April 23, 2013) 3 US Patent No. 8,465,589 entitled “Machine and Process for Sequential Multi-Sublayer Deposition of Copper Indium Gallium Diselenide Compound Semiconductors” (issued June 18, 2013) 4 US Patent No.
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D697,502 entitled "Mobile Electronic Device Case” (issued January 14, 2014) 5 US Patent No. 8,648,253 entitled “Machine and Process for Continuous, Sequential, Deposition of Semiconductor Solar Absorbers Having Variable Semiconductor Composition Deposited in Multiple Sublayers” (issued February 11, 2014) 6 US Patent No. 9,538,671 entitled "System For Housing And Powering A Battery-Operated Device And Associated Methods" (issued January 3, 2017) 7 US Patent No.
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D781,228 entitled "Pocket-Sized Photovoltaic Based Fully Integrated Portable Power System" (issued March 14, 2017) 8 US Patent No. 9,601,650 entitled "Machine and Process for Continuous, Sequential, Deposition of Semiconductor Solar Absorbers Having Variable Semiconductor Composition Deposited in Multiple Sublayers" (issued March 21, 2017) 9 US Patent No. 9,634,175 entitled "Systems and Methods for Thermally Managing High-Temperature Processes on Temperature Sensitive Substrates" (issued April 25, 2017) 10 US Patent No. 9,640,706 entitled "Hybrid Multi-Junction Photovoltaic Cells and Associated Methods" (issued May 2, 2017) 11 US Patent No. 9,640,692 entitled "Flexible Photovoltaic Array with Integrated Wiring and Control Circuitry, and Associated Methods" (issued May 2, 2017) 12 US Patent No. 9,653,635 entitled Flexible High-Voltage Adaptable Current Photovoltaic Modules and Associated Methods (issued May 16, 2017) 13 US Patent No. 9,780,242 entitled “Multilayer Thin-Film Back Contact System for Flexible Photovoltaic Devices on Polymer Substrates” (issued October 3, 2017) 14 US Patent No. 9,929,306 entitled "Array of Monolithically Integrated Thin Film Photovoltaic Cells and Associated Methods" (issued March 27, 2018) 4 Suppliers We rely on several unaffiliated companies to supply certain raw materials used during the fabrication of our PV modules and PV integrated electronics.
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The number of shares that we will issue pursuant to these agreements, therefore, will fluctuate based on the price of our common stock. We currently have 5,596,232 outstanding common stock warrants issued in connection with our December 2022 senior secured convertible note financing with a per share exercise price of $1.76.
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These warrants have a “full ratchet” adjustment feature that can be triggered by new offerings of our securities at a per share price less than the then effective warrant price. Also, if we obtain additional financing involving the issuance of equity securities or securities convertible into equity securities, our existing stockholders’ investment would be further diluted.
Removed
If and when these shares are registered or become eligible for sale to the public market, the market price of our common stock could also decline. 13 We may fail to continue to meet the listing standards of The Nasdaq Capital Market Failure to maintain the listing of our common stock with a U.S. national securities exchange could adversely affect the liquidity off our common stock.
Removed
The Notice does not result in the immediate delisting of the Company’s common stock from The Nasdaq Capital Market.
Removed
The Nasdaq Listing Rules require listed securities to maintain a minimum bid price of $1.00 per share and, based upon the closing bid price of the Company’s common stock for the 30 consecutive business days for the period October 27 through December 8, 2023, the Company no longer meets this requirement.
Removed
The Notice indicated that the Company will be provided 180 calendar days (or June 10, 2024) in which to regain compliance.
Removed
If at any time during this 180 calendar day period the bid price of the Company’s common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, the Nasdaq staff (the “Staff”) will provide the Company with a written confirmation of compliance and the matter will be closed.
Removed
Alternatively, if the Company fails to regain compliance with Rule 5550(a)(2) prior to the expiration of the initial 180 calendar day period, the Company may be eligible for an additional 180 calendar day compliance period, provided (i) it meets the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market (except for the Bid Price Requirement) and (ii) it provides written notice to Nasdaq of its intention to cure this deficiency during the second compliance period by effecting a reverse stock split, if necessary.
Removed
In the event the Company does not regain compliance with Rule 5550(a)(2) prior to the expiration of the initial 180 calendar day period, and if it appears to the Staff that the Company will not be able to cure the deficiency, or if the Company is not otherwise eligible, the Staff will provide the Company with written notification that its securities are subject to delisting from The Nasdaq Capital Market.
Removed
At that time, the Company may appeal the delisting determination to a Hearings Panel. The Company intends to monitor the closing bid price of its common stock and is considering its options to regain compliance with the Bid Price Requirement. The Company’s receipt of the Notice does not affect the Company’s reporting requirements with the Securities and Exchange Commission.
Removed
Nasdaq Stockholder Equity Requirement Nasdaq Listing Rule 5550(b)(1) requires companies listed on Nasdaq to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing. In our annual report on Form 10-K for the year ended December 31, 2023, the Company reported stockholders’ equity of $(1,526,611).
Removed
The Company, therefore, may shortly receive a written notice from Nasdaq indicating that we are not in compliance with minimum stockholders’ equity requirement. Typically, such a notice would have no immediate impact on the listing of the Company’s common stock. Nasdaq would typically provide the Company with 45 calendar days to submit a plan to regain compliance.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur Board of Directors is responsible for overseeing our enterprise risk management activities. The Board of Directors receives an update on the Company’s risk management process and the risk trends related to cybersecurity at least annually. Additionally, on a quarterly basis, the Audit Committee will receive updates from Management on cybersecurity. 15
Biggest changeOur Board of Directors is responsible for overseeing our enterprise risk management activities. The Board of Directors receives an update on the Company’s risk management process and the risk trends related to cybersecurity at least annually. Additionally, on a quarterly basis, the Audit Committee will receive updates from Management on cybersecurity.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Pr operties Our principal business office and manufacturing facility is located in a leased space at 12300 Grant Street, Thornton, Colorado 80241. We have approximately 25,000 square feet of fully equipped office space and 50,000 square feet of fully equipped manufacturing space. We consider our office space adequate for our current operations.
Biggest changeItem 2. Pr operties Our principal business office and manufacturing facility is located in a leased space at 12300 Grant Street, Thornton, Colorado 80241. We have approximately 25,000 square feet of fully equipped office space and 50,000 square feet of fully equipped manufacturing space. We consider our space adequate for our current operations.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeFor additional information on contingencies and legal proceedings, see "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. 16 PART II
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
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, 2,169.5 common stock warrants with a per share exercise price of $605, and attorney fees.
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.
Removed
While it is too early to predict the outcome of this legal proceeding or whether an adverse result would have a material adverse impact on our operations or financial position, we believe we have meritorious defenses and intend to defend this legal matter vigorously.

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, 2023 and 2022, 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, 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.
Recent Sales of Unregistered Securities During the year ended December 31, 2023, 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] 17
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
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, 2023, the number of record holders of our common stock was 34.
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 7. Management's Discussion & Analysis

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

28 edited+5 added−8 removed21 unchanged
Biggest changeSee Note 2 for additional information. 20 Results of Operations Comparison of the Years Ended December 31, 2023 and 2022 Year Ended December 31, 2023 2022 $ Change Revenues Product Revenue 397,886 694,286 (296,400 ) Milestone and engineering 60,374 528,500 (468,126 ) Total Revenues 458,260 1,222,786 (764,526 ) Costs and Expenses Cost of Revenue 1,892,341 2,011,459 (119,118 ) Research, development and manufacturing operations 3,222,283 5,975,921 (2,753,638 ) Selling, general and administrative 5,364,523 4,736,562 627,961 Share-based compensation 2,243,445 5,478,734 (3,235,289 ) Depreciation and amortization 95,238 75,645 19,593 Impairment loss 3,283,715 - 3,283,715 Total Costs and Expenses 16,101,545 18,278,321 (2,176,776 ) Loss From Operations (15,643,285 ) (17,055,535 ) 1,412,250 Other Income/(Expense) Other Income/(Expense), net 747,739 33,100 714,639 Interest Expense (2,174,118 ) (2,704,909 ) 530,791 Total Other Income/(Expense) (1,426,379 ) (2,671,809 ) 1,245,430 Income/(Loss) on Equity Method Investment (232 ) (27,361 ) 27,129 Net Income/(Loss) (17,069,896 ) (19,754,705 ) 2,684,809 Revenues.
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.
Basis of Presentation: The discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”).
Basis of Presentation: The discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”).
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: 18 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.
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.
For module and other equipment 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.
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.
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 10 for further discussion on each convertible debt.
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.
We recognize revenue for the sale of PV modules and other equipment 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.
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.
The value of the portion of the award that is ultimately expected to vest, net of estimated forfeitures, is recognized as expense on a straight-line basis, over the requisite service period in the Company’s Statements of Operations. Share-based compensation is based on awards ultimately expected to vest and is reduced for estimated forfeitures.
The value of the portion of the award that is ultimately expected to vest, net of estimated forfeitures, is recognized as expense on a straight-line basis, over the requisite service period in the Company’s Statements of 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 $2,753,638 or 46%, for the year ended December 31, 2023 when compared to the same period in 2022.
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.
Additional projected revenues are not anticipated to result in a positive cash flow position for the year 2024 overall and, as of December 31, 2023, the Company has working capital deficit of $4,225,559. As such, additional financing will be required for the Company to reach a level of sufficient sales to achieve profitability.
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.
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.
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.
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.
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").
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.
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.
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.
These financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
Statements of Cash Flows Comparison of the Years Ended December 31, 2023 and 2022 For the year ended December 31, 2023, our cash used in operations was $9,536,879 compared to $10,506,575 for the year ended December 31, 2022, a decrease of $969,696.
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.
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, 2023 the Company used $9,536,879 in cash for operations.
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.
Additionally, in 2022, the Company had a large order from one customer that was not repeated in 2023. This is partially offset with revenue recognized from fulfilling a supply agreement under the Asset Purchase Agreement executed in April 2023. Cost of revenues. Cost of revenues is comprised primarily of repair and maintenance, direct labor and overhead expenses.
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.
Total revenues decreased by $764,526, or by 63%, for the year ended December 31, 2023 when compared to the same period in 2022. The decrease in sales is due primarily to Milestone and engineering revenue from TubeSolar in 2022 which was not repeated in the current year.
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.
The decrease is primarily the result of the decrease in manufacturing, the redeployment of the Thornton manufacturing facility as a Perovskite research facility, and the restart of limited manufacturing. For the year ended December 31, 2023, cash used in investing activities was $3,877,366 compared to cash used in investing activities of $265,472 for the year ended December 31, 2022.
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.
Our cost of revenues decreased by $119,118, or 6% for the year ended December 31, 2023 when compared to the same period in 2022. The decrease in cost of revenues is primarily due to the decrease in manufacturing costs as the Company redeployed it manufacturing facilities to a research facility in March 2023 and restarted limited manufacturing in late 2023.
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.
Off Balance Sheet Transactions As of December 31, 2023, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K. 22
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.
For the year ended December 31, 2023 we generated $458,260 of total revenue, of which, product sales accounted for $397,886 and milestone and engineering revenue accounted for $60,374. As of December 31, 2023, we had an accumulated deficit of approximately $482,478,436.
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.
This increase is partially offset by one-time termination expense of approximately $500,000 and $157,000 recognized with the departure of our former CEO and CFO, respectively, in 2022. Share-based compensation. Share-based compensation expense decreased by $3,235,289 or 59%, for the year ended December 31, 2023 when compared to the same period in 2022.
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.
Selling, general and administrative expenses increased by $627,961, or 13%, for the year ended December 31, 2023 when compared to the same period in 2022. The increase in costs is due primarily to increased professional services and other administrative 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 change was primarily the result of the purchase of Flisom's manufacturing equipment in Switzerland. During the year ended December 31, 2023, cash used in operations of $9,536,879 were primarily funded through $11,200,000 in proceeds from issuances of preferred and common stock during 2023 and $13,500,000 in proceeds from the issuance of convertible debt in 2022.
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.
Our Net Loss was $17,069,896 for the year ended December 31, 2023, compared to Net Loss of $19,754,705 for the year ended December 31, 2022, a decrease of $2,684,809. The decrease is due to the reasons described above. Liquidity and Capital Resources The Company has continued limited PV production at its manufacturing facility.
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.
The Company did not recognize an impairment loss during the year ended December 31, 2022. Other Income/(Expense). Other expense decreased by $1,245,430 or 47%, for the year ended December 31, 2023 when compared to the same period in 2022. The decline is due primarily to a one-time employment retention credit received and a gain on lease modification.
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.
Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Management adopted ASU 2020-06 on January 1, 2023. Management is evaluating the impact of other new pronouncements issued but not effective as of December 31, 2023.
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.
The decrease is primarily due to the employment termination 21 of former CEO in April 2023. The year ended 2022 expense also includes the immediate vesting of 20% of the former CEO's restricted stock units. Impairment loss. The Company recognized an impairment loss of $3,283,715 primarily on the manufacturing assets purchased from Flisom during the year ended December 31, 2023.
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
Forfeitures are estimated at the time of grant and revised, as necessary, 19 in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of its restricted stock awards as its stock price on the grant date.
Added
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
Recently Issued Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entity s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity s Own Equity .
Added
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
ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP.
Added
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
Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital.
Added
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.
Removed
ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective for public companies that are smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years.
Added
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.
Removed
This is partially offset by increased expenses from our asset acquisition of Flisom's manufacturing equipment and employee contract. Management believes our factory is currently significantly under-utilized, and a substantial increase in revenue would result in marginal increases to indirect labor and overhead included in the cost of revenues. Research, development and manufacturing operations.
Removed
This is primarily due to a decrease in preproduction and manufacturing activities, as the Company redeployed its Thornton manufacturing facility as a perovskite research facility in March 2023 and restarted limited manufacturing in late 2023. Selling, general and administrative.
Removed
Additionally, the Company recorded accelerating debt discount as interest expense in the prior year. With the adoption of ASU 2020-06, the accelerated debt discount is now recorded in stockholders' equity. Net Income/(Loss).

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeFrom time to time, we hold restricted funds, money market funds, investments in U.S. government securities and high-quality corporate securities. The primary objective of our investment activities is to preserve principal and provide liquidity on demand, while at the same time maximizing the income we receive from our investments without significantly increasing risk.
Biggest changeThe primary objective of our investment activities is to preserve principal and provide liquidity on demand, while at the same time maximizing the income we receive from our investments without significantly increasing risk.
We hold no significant funds and have no future obligations denominated in foreign currencies as of December 31, 2023. Interest Rate Risk Our exposure to market risks for changes in interest rates relates primarily to our cash equivalents and investment portfolio. As of December 31, 2023, our cash equivalents consisted only of operating accounts held with financial institutions.
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.
Added
As 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.

Other ASTI 10-K year-over-year comparisons