Ascent Solar Reports 2Q 2013 Results

Ascent Solar Technologies, Inc. reported results for the second quarter ended June 30, 2013. Q2 2013 highlights include:
• Launch of Ascent’s retail presence in Colorado. Ascent began operations at Denver International Airport (Concourse B) as well as multiple locations around the Denver metropolitan area; including Boulder, Aurora and the world famous Red Rocks Amphitheatre.
• Launch of the EnerPlex brand into the Chinese consumer market with D.Phone (DiXinTong Inc.), one of China’s largest retailers of mobile phones and accessories.
• Announced the availability of the EnerPlex Kickr IV on all of Hainan Airlines’ more than 500 domestic and international routes, including those of its subsidiaries: Shanxi, Chang’an and China Xinhua Airlines.
• Signed agreement to raise $6 million through a private placement to a high net worth private investor in Asia, in which the company will issue (i) shares of Series A Preferred Stock convertible into 7,500,000 shares of common stock and (ii) warrants with a three year term to acquire 2,625,000 shares of common stock at a cash exercise price of $0.90 per share. As of Aug. 7, 2013, proceeds of $4 million had been received.
• Selected by Energizer as solar panel provider for the Energizer Lantern Donation, which will deliver 13 million hours of solar light to families living in the dark around the world.
• Announcement of the signing of a framework agreement to build a new manufacturing plant in Suqian of Jiangsu Province, China with funding from the Suqian Government in a joint venture. Since signing, key manufacturing and engineering personnel have visited Suqian to begin planning for the new plant.
• Expansion of EnerPlex distribution into United Kingdom and Ireland with West Coast Limited.
• Announcement of the company’s partnership with the Breitling Wing Walkers. In tandem with the launch of Ascent’s EnerPlex series of integrated solar products in the United Kingdom, Ascent teamed with the Wing Walkers for their European Tour; with their show at the Royal International Tattoo Airshow in the UK on July 20-21.
• Debut of the newest additions to its EnerPlex Kickr Series as well as introduction of an exciting new line of EnerPlex products showcased at the Outdoor Retailer Summer show in Salt Lake City.
• Signed agreement with the Denver Broncos Football Club, adding Ascent to a group of ‘Hometown Sponsors’ for the NFL franchise, a deal which will include in-stadium advertising rights at Sports Authority Field at Mile High, coupled with promotional rights for Ascent’s consumer line of products, EnerPlex.

Product revenue in the second quarter of 2013 was $166,000 compared to $176,000 in the previous quarter and $63,000 in the second quarter of 2012. EnerPlex sales increased 19% quarter over quarter, which was offset by a decline in our sales of our custom products during the quarter. The company expects continued expansion of our distribution network and broadening of its EnerPlex product line to drive further revenue increases.

Net loss for the second quarter was $7.1 million compared to a net loss of $6.4 million in the previous quarter and a loss of $5.9 million in the second quarter of 2012. The increase in the sequential and year over year quarterly net loss was due primarily to increased operating expenses associated with our focus on consumer oriented solar-assisted devices including sales and marketing costs.

Cash and cash equivalents decreased to $4.0 million at June 30, 2013 from $7.0 million at March 31, 2013.

“We continue to build on the positive momentum established in the previous quarter, particularly in the growth of core consumer product sales,” said Victor Lee, president and CEO of Ascent. “We have seen rapid expansion of our distribution network, both domestically and internationally. The establishment of our very own retail presence in Colorado, coupled with our newly signed partnership agreement with the Denver Broncos Franchise, will further enhance our EnerPlex brand name and add momentum to our sales going forward. Moving ahead, we look forward to launching additional EnerPlex consumer products, and growing our retail presence beyond Colorado to help us reach more customers nationwide.”