CIGS thin-film firm DayStar Technologies running out of money, could file for bankruptcy soon

Facebook
Twitter
LinkedIn
Reddit
Email

DayStar Technologies, a copper-indium-gallium-(di)selenide thin-film PV developer based in Santa Clara, CA, is running out of money. Although the company posted a smaller net loss in its just-announced second-quarter results than it experienced in the first quarter and the value of its net property and equipment has risen to $50 million because of increased investment during the period, its cash and cash equivalents have dwindled to $1.3 million.

As a result of its financial woes, DayStar says it will need “substantial funds in the near term” to continue operations, ramp its first production line, and begin shipping products, and a failure to raise such monies may result in the company declaring bankruptcy and possibly shutting down part or all of its operations. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

In DayStar’s 10-Q report filed with the Securities and Exchange Commission, the CIGS firm says that “commercialization efforts, including the completion and ramp-up of the company’s initial module production line requires significant additional capital expenditures as well as associated continued development and administrative costs. In order to continue operations, including its development efforts utilizing its preproduction line, fully build out its initial manufacturing line and commence commercial shipments of its product, the company requires immediate and substantial additional capital beyond its current cash on hand.”

“To date, the Company has been unable to raise additional capital or complete an agreement with an investor or strategic partner,” the filing continues. “Although the company continues to seek strategic investors or partners, in light of its current cash position, the company implemented a reduction in its workforce of approximately 30% during the second quarter of 2009 and may in the near term be forced to cease or substantially curtail operations.”

“An inability to raise additional funding in the very near term may cause the company to file a voluntary petition for reorganization under the United States Bankruptcy Code, liquidate assets, and/or pursue other such actions that could adversely affect future operations,” the DayStar 10-Q states. “Given current market conditions and available opportunities, there is substantial doubt as to the company’s ability to complete a financing in the time frame required to remain in operation. A wide variety of factors relating to the company and external conditions could adversely affect its ability to secure additional funding and the terms of any funding that it secures.”

DayStar has a proprietary one-step sputter process that it says can continuously deposit high-efficiency CIGS films over large-area glass substrates. The company claims the approach can meet the sub-$1-per-watt manufacturing cost threshold at a capacity scale of 100MW or more, including the achievement of commercial module efficiencies better than 13%.

The CIGS company has begun building out its first 25MW module production line and has a contract with solar PV integrator Blitzstrom to buy at least half of its production run through 2011, as long as the modules meet the proper performance criteria.

 

 

Read Next

June 6, 2025
Independent power producer (IPP) NOA Group has reached financial close on a 349MW solar PV project in South Africa.
June 6, 2025
France has registered zero or negative energy prices for 90% of days in May 2025, according to data from energy storage developer Storio Energy.
June 6, 2025
rPlus Energies has secured more than US$500 million for an 800MW solar-plus-storage project in Emery County, Utah, US.  
June 6, 2025
Eternal Sun has acquired German solar simulator provider Wavelabs, which has resulted in the formation of a new subsidy, Wavelabs Eternal Sun.
Premium
June 6, 2025
Europe must secure the 'strategic segments' of the solar supply chain, according to experts at a PV Tech panel at this year's Intersolar event.
June 6, 2025
Australia’s Solar Energy Industries Association (SEIA) has called on Australia’s climate change and energy minister, Chris Bowen, to “urgently intervene” on a rule change that could threaten to derail the uptake of rooftop solar PV.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece