Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) Files Quarterly Report

The recent chart performance of the stock of Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) has been extremely depressing. For weeks the ticker has been losing positions with any positive sessions being few and far between. Yesterday was no different with the stock wiping another 8.6% of its value and closing at $0.0436 per share. During the trading day ASTI dropped to a new 52-week low of $0.04. After the end of the session, however, the company submitted its financial report for the first quarter of 2016. Can the numbers inside it help the stock reverse its direction?

Compared to the same period last year the balance sheet shows some improvements – the quarterly revenues are up by 8% while the net loss has been cut by approximately 41%. It should also be noted that the portion of the revenues attributed to product sales has increased by 29% showing that ASTI‘s EnerPlex product line is gaining traction. The problem is that this is simply not enough – the company remains in a grim financial state with:

• $350 thousand cash
• $9.7 million total current assets
• $15.1 million total current liabilities
• $710 thousand revenues
• $10.5 million net loss

At the start of 2015 ASTI had around 18 million outstanding shares but in just twelve months that number grew to more than 155 million shares. Since the start of 2016 the dilution hasn’t really slowed down and as of May 11 the company had 294 million outstanding shares. During the first quarter of the year 22 million shares were issued at an average price of $0.055 as a conversion of 1220 Series E Preferred Shares while 43 million shares were issued at $0.05 as a conversion of Series F preferred shares.

In order to raise additional funds on April 29 a $2 million private placement of the newly designated Series G Preferred Stock took place. At the closing of the placement the company received $500 thousand for the sale of 500 preferred G shares. ASTI will receive the rest of the sum in three additional closings in May. The Series G preferred shares are convertible into common shares at a fixed conversion price of $0.05. In addition, again on April 29, ASTI canceled $2 million in convertible notes, but in order to do so they agreed to issue the fixed amount of 42.1 million shares of common stock to the note holders.

ASTI‘s stock should be approached with caution. Do your own research and adjust your trades accordingly.