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Ascent Solar Technologies Inc (OTCMKTS:ASTI) On The Comeback Trail

Ascent Solar Technologies Inc (OTCMKTS:ASTI) On The Comeback Trail
Written by
Alex Carlson
Published on
August 4, 2016
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Ascent Solar Technologies Inc (OTCMKTS:ASTI) is finally rallying after being on a downtrend for as long as we can remember. To say Ascent Solar has been a poor investment is an understatement. While shares did rally 45% on Wednesday and have more than doubled off the lows, they're still a long way off from making shareholders whole on their investment dollars. The stock is trading at $.07 a share even after the company did a 1 for 20 reverse stock split back in June.For those not familiar with Ascent Solar, it's a former NASDAQ Big Board that got kicked down to the OTC Markets after being unable to maintain its listing. Based in Colorado, the company is a developer of thin-film photovoltaic modules with substrate materials that can be more flexible and affordable than most traditional solar panels. Ascent Solar modules can be directly integrated into standard building materials, aerospace applications, consumer electronics for portable power or configured as stand-alone modules for large scale terrestrial deployment.The latest news from the company is that it will debut the Kickr 7FL and Kickr 10FL at Outdoor Retailer in August 2016 in addition to the new EnerPlex Explor and EnerPlex Packr BC. Ascent Solar said that "EnerPlex continues to establish itself as the technology leader in Mobility Power, with the launch of Featherlight solar family (the Kickr 7FL and 10FL) as well as the EnerPlex Explor 67, the brand's first battery designed specifically for the outdoors, carrying an IP67 rating and the EnerPlex Packr BC, a first of its kind solar charger, designed from the ground up for backpackers."Before this news release, the last we heard from Ascent Solar was on June 8th when the EnerPlex Kickr IV, was named to Men’s Health’ “Best New Gear for the Great Outdoors” list. The magazing listed the Kickr IV’s highlights as:

  • POWERFUL: The perfect blend of size & power, 6 watt TRUE OUTPUT designed to charge most USB devices at the same rate as a wall outlet
  • LIGHTWEIGHT: Solar-on-plastic technology makes the unit extremely light & flexible, weighing only 0.6lbs; perfect for camping, hiking or any other outdoor activity.
  • RUGGED: Water resistant & designed for the harshest conditions. Able to withstand high impact shocks, drops and can continue to function even when punctured or damaged.
  • Made in the USA: Leading and trusted American solar technology. Engineered and 100% made in Denver, CO.
  • BEST dawn to dusk performance: Superior all-day performance & higher output in cloudy, overcast or shaded conditions compared to other technologies
  • Built with the World’s Most Awarded Solar, one of TIME Magazine’s Top 50 Inventions
  • Made for the MILITARY, originally designed for use by soldiers in combat theatres

Well, from the looks of things EnerPlex is a great product. That it is. The problem with Ascent Solar and many other OTC names is the dreaded D word - DILUTION. In June, ASTI entered into a securities purchase agreement with a private investor for the private placement of up to $2,500,000 of the Company’s newly designated Series H 7% Convertible Preferred Stock. On June 9, 2016, the company sold and issued 250 shares of Series H Preferred Stock to Investor in exchange for $250,000. The company also said that it will sell and issue an additional 250 shares of Series H Preferred Stock to Investor in exchange for $250,000 on June 23, 2016. This means more dilution is coming and that’s not a good sign.Currently trading with a market cap of $1 million, ASTI can still keep climbing the comeback trail if management delivers and the new products from EnerPlex sell out. In looking at the company's balance sheet, we see $350k in cash, $9.6m in total current assets, $19.1m in total assets, $15.1m in total current liabilities, and $20.9m in total liabilities. Perhaps the biggest standout is that Ascent Solar has lost $355 MILLION over its history. Management has really done a fine job of blowing shareholder's money. Hopefully, they can turn things around or if they can't do it fast enough, the board will at least have some sense to bring in new management. We will be updating Insider Financial as soon as we know more. For the latest updates on ASTI, sign up below!Disclosure: We have no position in ASTI and have not been compensated for this article.

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