United States

Securities and Exchange Commission

Washington, D.C. 20549

Form 10-QSB

(Mark One)

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2007

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 001-13549

SOLAR THIN FILMS, INC.

(Exact name of small business issuer as specified in its charter)

Delaware	95-4356228
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

25 Highland Blvd, Dix Hills, New York 11746

(Address of principal executive offices)

(516) 417-8454

Issuer’s telephone number

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days. Yes x No o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of Exchange Act). Yes o No x

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

Common Stock, $.01 par value	56,569,601
(Class)	(Outstanding at November 12, 2007)

Transitional Small Business Disclosures Format (Check one): Yes o No x

SOLAR THIN FILMS, INC .

Form 10Q for Quarter Ended September 30, 2007

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheet as of September 30, 2007	3
	Condensed Consolidated Statements of Operations and other Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2007 and 2006	4
	Condensed Consolidated Statement of Deficiency in Stockholder Equity for the Nine Months Ended September 30, 2007	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2007 and 2006	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis or Plan of Operations	33
Item 3.	Controls and Procedures	38
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3	Defaults upon Senior Securities	40
Item 4.	Submission of Matters to a Vote of Security Holders	40
Item 5.	Other Information	40
Item 6.	Exhibits	40
Signatures		41

2

PART I.FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

SOLAR THIN FILMS, INC

CONDENSED CONSOLIDATED BALANCE SHEET

September 30, 2007

(Unaudited)

ASSETS

Current assets:
Cash and cash equivalents	$	1,224,898
Accounts receivable, net of allowance for doubtful accounts of $-0-		717,269
Accounts receivable, related party		1,197,548
Inventory		512,225
Prepaid expenses		102,462
Advances and other current assets		177,848
Total current assets		3,932,250
Property, plant and equipment, net of accumulated depreciation of $263,780		636,136
Other assets:
Deferred financing costs, net of accumulated amortization of $267,726		339,774
Other assets		8,339
Total other assets		348,113
Total assets	$	4,916,499

LIABILITIES AND DEFICIENCY IN STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued liabilities	$	3,125,961
Advances received from customers		348,561
Deferred revenue		15,000
Note payable-other		1,500,000
Total current liabilities		4,989,522
Convertible notes payable, net of unamortized discount		3,223,601
Dividends payable		152,778
Total long term debt		3,376,379
Commitments and contingencies
Deficiency in Stockholder's Equity
Preferred stock, par value $0.01 per share; 1,200,000 shares authorized; -0- issued and outstanding		-
Series B-1 Preferred stock, par value $0.01 per share, 1,000,000 shares authorized, 228,652 issued and outstanding		2,286
Series B-3 Preferred stock, par value $0.01 per share, 232,500 shares authorized, 47,518 issued and outstanding		475
Common stock, par value $0.01 per share, 150,000,000 shares authorized, 53,099,601 issued and outstanding		530,996
Additional paid in capital		16,361,750
Treasury stock, at cost		(80,000	)
Accumulated deficit		(20,643,764	)
Accumulated other comprehensive income		378,855
Total deficiency in stockholders' equity		(3,449,402	)
Total Liabilities and Deficiency in Stockholders' Equity	$	4,916,499

See accompanying notes to the unaudited condensed consolidated financial statements

3

SOLAR THIN FILMS, INC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2007			2006			2007			2006
				RESTATED						RESTATED
REVENUE:	$	826,608		$	715,546		$	4,371,667		$	1,027,731
Cost of revenue		733,549			331,874			3,680,806			559,889
Gross profit		93,059			383,672			690,861			467,842
OPERATING EXPENSES:
General, selling and administrative expenses		1,067,908			1,208,542			3,398,921			1,731,446
Research and development		90,000			-			270,000			-
Depreciation		69,406			17,816			117,496			35,564
Total operating expenses		1,227,314			1,226,358			3,786,417			1,767,010
LOSS FROM OPERATIONS		(1,134,255	)		(842,686	)		(3,095,556	)		(1,299,168	)
Other income/(expense)
Foreign exchange expense:		(114,299	)		(5,185	)		(83,797)			(3,617)
Unrealized gain relating to adjustment of warrant liability to fair value		-			4,246,200			-			5,757,000
Interest expense, net		(704,974	)		(723,024	)		(2,035,179	)		(906,573	)
Debt acquisition costs		(56,349	)		(51,041	)		(156,767	)		(59,918	)
Other income		102,642			5,654			55,295			19,381
Net (loss) income before provision for income taxes		(1,907,235	)		2,629,918			(5,316,004	)		3,507,105
Income taxes		-			-			-			-
NET (LOSS) INCOME	$	(1,907,235	)	$	2,629,918		$	(5,316,004	)	$	3,507,105
Other comprehensive income (loss)		48,500			8,770			109,193			(36,071	)
COMPREHENSIVE (LOSS) INCOME	$	(1,858,735	)	$	2,638,688		$	(5,206,811	)	$	3,471,034
Net (loss) income per common share, basic		($0.04	)	$	0.16			($0.14	)	$	0.22
Net (loss) income per common share, diluted		($0.04)		$	(0.02)			($0.14)		$	(0.03)
Weighted average number of shares outstanding, basic		52,587,231			16,083,625			37,942,288			16,051,533
Weighted average number of shares outstanding, diluted		52,587,231			54,033,804			37,942,288			54,001,712

See accompanying notes to the unaudited condensed consolidated financial statements

4

SOLAR THIN FILMS, INC

CONDENSED CONSOLIDATED STATEMENT OF DEFICIENCY IN STOCKHOLDERS' EQUITY

Nine months ended September 30, 2007

	Preferred Series B-1				Preferred Series B-3				Preferred Series B-4						Common shares
	Shares		Amount		Shares		Amount		Shares			Amount			Shares		Amount
Balance at December 31, 2005, as adjusted for Securities Purchase Agreement and reverse stock split		-		-		-		-		-			-			16,035,222	$	240,400
Shares issued to Kraft shareholders in exchange for 95.5% of issued and outstanding Kraft shares in connection with Securities Purchase Agreement on June 14, 2006		-		-		-		-		95,500			955			-		-
Reclassification of Kraft equity with Share Exchange Agreement Transfer		-		-		-		-		-			-			-		(240,400	)
Effect of merger with Solar Thin Films, Inc. (formerly American Global United) and assumption of liabilities on June 14, 2006		228,652		2,286		47,518		475		-			-			-		160,352
Minority interest		-		-		-		-		-			-			-		-
Common stock issued in September 2006 for services rendered at $2.00 per share		-		-		-		-		-			-			234,375		2,344
Fair value of 1,890,625 options issued an officer and director		-		-		-		-		-			-			-		-
Fair value of 156,250 options issued to a consultant for services rendered		-		-		-		-		-			-			-		-
Foreign currency translation gain		-		-		-		-		-			-			-		-
Net Income at December 31, 2006		-		-		-		-		-			-			-		-
Balance at December 31, 2006		228,652		2,286		47,518		475		95,500			955			16,269,597		162,696
Fractional shares issued upon 1.6 to 1 reverse split on February 9, 2007		-		-		-		-		-			-			1,504		15
Settlement of minority interest		-		-		-		-		-			-			-		-
Effect of adoption of EITF 00-19-2 change in accounting principle (Note 1)		-		-		-		-		-			-			-		-
Issuance of 33,425,000 shares of common stock for conversion of 95,500 Preferred B-4 shares		-		-		-		-		(95,500	)		(955	)		33,425,000		334,250
Issuance of 1,312,500 shares of common stock in exchange for convertible notes payable		-		-		-		-		-			-			1,312,500		13,125
Common stock issued in June 2007 for services rendered at $0.48 per share		-		-		-		-		-			-			400,000		4,000
Fair value of warrants issued in conjunction with settlement of convertible debt		-		-		-		-		-			-			-		-
Fair value of vested portion of 3,000,000 options issued to an officer		-		-		-		-		-			-			-		-
Issuance of 1,575,000 shares of common stock to acquire minority interest in subsidiary at $0.75 per share (Note 1)		-		-		-		-		-			-			1,575,000		15,750
Issuance of 116,000 shares of common stock in exchange for convertible notes payable		-		-		-		-		-			-			116,000		1,160
Foreign currency translation gain		-		-		-		-		-			-			-		-
Net loss at September 30, 2007		-		-		-		-		-			-			-		-
		228,652	$	2,286		47,518	$	475		-		$	-			53,099,601	$	530,996

See accompanying notes to the unaudited condensed consolidated financial statements

5

SOLAR THIN FILMS, INC

CONDENSED CONSOLIDATED STATEMENT OF DEFICIENCY IN STOCKHOLDERS' EQUITY

Nine months ended September 30, 2007

	Additional									Other					Total
	Paid in			Treasury			Minority			Comprehensive		Accumulated			Stockholders'
	Capital			Stock			Interest			Income		Deficit			Deficiency
Balance at December 31, 2005, as adjusted for Securities Purchase Agreement and reverse stock split		253,781			-			-			31,997		(966,983	)		(440,805	)
Shares issued to Kraft shareholders in exchange for 95.5% of issued and outstanding Kraft shares in connection with Securities Purchase Agreement on June 14, 2006		(955	)		-			-			-		-			-
Reclassification of Kraft equity with Share Exchange Agreement Transfer		240,400			-			-			-		-			-
Effect of merger with Solar Thin Films, Inc. (formerly American Global United) and assumption of liabilities on June 14, 2006		(163,113	)		(80,000	)		-			-		(6,681,891	)		(6,761,891	)
Minority interest		-			-			(43,916	)		-		-			(43,916	)
Common stock issued in September 2006 for services rendered at $2.00 per share		466,406			-			-			-		-			468,750
Fair value of 1,890,625 options issued an officer and director		2,720,228			-			-			-		-			2,720,228
Fair value of 156,250 options issued to a consultant for services rendered		111,125			-			-			-		-			111,125
Foreign currency translation gain		-			-			-			237,665		-			237,665
Net Income at December 31, 2006		-			-			-			-		2,858,765			2,858,765
Balance at December 31, 2006		3,627,872			(80,000	)		(43,916	)		269,662		(4,790,109	)		(850,079	)
Fractional shares issued upon 1.6 to 1 reverse split on February 9, 2007		(15	)		-			-			-		-			-
Settlement of minority interest		-			-			43,916			-		-			43,916
Effect of adoption of EITF 00-19-2 change in accounting principle (Note 1)		10,821,900			-			-			-		(9,356,400	)		1,465,500
Issuance of 33,425,000 shares of common stock for conversion of 95,500 Preferred B-4 shares		(333,295	)		-			-			-		-			-
Issuance of 1,312,500 shares of common stock in exchange for convertible notes payable		511,875			-			-			-		-			525,000
Common stock issued in June 2007 for services rendered at $0.48 per share		188,000			-			-			-		-			192,000
Fair value of warrants issued in conjunction with settlement of convertible debt		61,767			-			-			-		-			61,767
Fair value of vested portion of 3,000,000 options issued to an officer		203,306			-			-			-		-			203,306
Issuance of 1,575,000 shares of common stock to acquire minority interest in subsidiary at $0.75 per share (Note 1)		1,165,500			-			-			-		(1,181,250	)		-
Issuance of 116,000 shares of common stock in exchange for convertible notes payable		114,840			-