Gorbachev Grills CEO on ASTI’s Financials, Finds Values Unchanged.
MW commercial equipment line. We anticipate closing the transaction in the coming days.”
Mikhail Gorbachev: “Mr. Max, this all sounds quite good on the surface, but I have noticed some numbers that do not quite add up. I would like to know, in plain terms, what exactly is going on here. Are you using some accounting tricks to cover up losses?”
Jeffrey Max: “No, there are no tricks in our accounting. In fact, if you look closely, despite the increase in total expenses year-over-year, our loss from operations actually decreased. We grew our revenues significantly this past year, through a joint venture with TubeSolar, which helped to offset our costs. Additionally, share-based compensation was only a small portion of our total costs and non-cash, meaning the actual cash flow did not suffer as much as the analysis of our expenses may suggest.”
Mikhail Gorbachev: “If the increase in share-based compensation was for the new CEO and CFO, does this not suggest that the stock itself is being used as a crutch for your losses?”
Jeffrey Max: “No, absolutely not. We hired new, experienced leaders in order to bring value to our operations and financials, not to prop them up with share-based compensation. The grant of inducement restricted stock units is something we do regularly in order to show appreciation for new senior leadership and incentivize performance.”
Mikhail Gorbachev: “But does this grant of stock units have any material impact on the the company finances? You mentioned a one-time executive separation cost; what is that and why were there such costs involved in hiring new executives? “
Jeffrey Max: “The one-time executive separation cost reflects the severance packages granted to the previous executive management. That cost was a one-time expense and will not recur in other quarters. Furthermore, the grant of restricted stock units is a non-cash expense, so it does not meaningfully weigh on our finances.”
Mikhail Gorbachev: “But if the grant of restricted stock units does not have a tangible effect on your finances, why grant them in the first place?”
Jeffrey Max: “We grant the restricted stock units in order to entice and reward promising new leadership. We believe this type of compensation can be beneficial to the long-term success of the company, both in terms of financial performance and the overall management of the organization.”
Original Release: https://www.globenewswire.com/news-release/2023/03/10/2625210/0/en/Ascent-Solar-Technologies-Inc-Announces-Full-Year-2022-Financial-Results.html