Ascent Solar Technologies

Kurta Law is investigating broker recommendations of Ascent Solar Technologies. These investments may have been overly risky for many investors – risks that the brokerage firms should have known about and disclosed to any potential investors. Today, this stock trades for less than $1 per share and faces a possible delisting from the stock exchange. Brokers must exclusively recommend investments that fit their customers’ risk profiles. Securities lawyers can help investors who suffered losses as a result of broker misconduct. Contact our securities attorneys today if you have concerns: (877) 600-0098 or info@kurtalawfirm.com.  

Stock Offering  

Ascent Solar Technologies (NASDAQ: ASTI) conducted an offering of 9,166,700 shares of common stock in 2012. According to the prospectus, the company aimed to sell flexible photovoltaic modules – also known as solar panels. Ascent Solar Technologies claimed to have proprietary technology to build especially lightweight and flexible solar panels. In the prospectus supplement, the company stated that they planned to create applications for specialty markets, including military and defense.  

Risks Associated with Ascent Solar Technologies’ Stock

Companies are required to register their stock with the SEC, and a prospectus is the registration document that discloses essential information for investors to evaluate.  

The first highlighted risk states, “We have a limited history of operations, have not generated significant revenue from operations, and have had limited production of our PV modules. Under our current business plan, we expect losses to continue until we demonstrate market acceptance for our new line of consumer products.”  

In order to have any success, the company would have to license its proprietary manufacturing process to others and ramp up commercial products on the equipment for its own production lines. 

This is just the first glimpse into the many hurdles that Ascent Solar Technologies would have to clear before generating income and returns for their investors.  

Unproven Technology  

At the time of the offering, the proprietary technology was yet unproven. The business had yet to prove that there was any demand for its product.  

Suppliers  

Ascent Solar Technologies relied on third-party suppliers for raw materials. Manufacturing delays could impede the company’s ability to turn a profit.  

Packaging Solutions 

Even logistical issues like packaging could stymie the entire operation. 

Markets 

The target market for Ascent Solar Technologies is an emerging market. The market, according to the prospectus, may not develop as rapidly as expected, and may not develop at all.  

Competition 

Renewable energy is a highly competitive market. Ascent Solar Technologies admits in the prospectus that its competitors have better access to financial, technical, and manufacturing resources.  

Intellectual Property Rights  

In order to make money off its proprietary products, Ascent Solar Technologies would have to defend its intellectual property rights. The company also relies on unpatented technology, and other companies may gain access to it or may independently create similar technology, hindering Ascent Solar Technologies’ ability to compete.  

Cadmium Sulfide Hazards 

PV Modules contain limited amounts of cadmium sulfide, which is a hazardous material that can have adverse health effects for humans. The prospectus states that it is banned in certain countries. Environmental regulations concerning this substance could also adversely affect Ascent Solar Technologies’ business.  

Aegis Capital Corp. Underwriting  

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

Contact Kurta Law for Help with Stock Losses 

Kurta Law has experience with cases of unsuitable investment recommendations and other forms of broker misconduct. Contact our investment fraud attorneys today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.