Sigma Labs Reports First Quarter 2021 Financial Results
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Sigma Labs Reports First Quarter 2021 Financial Results

Thursday, April 22, 2021 4:01 PM
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Topic:
Earnings

New Global Customer Wins Drive Improved Financial Performance for Revenue & Gross Margins

Management to Host Conference Call Today at 4:30 p.m. ET

SANTA FE, NM / ACCESSWIRE / April 22, 2021 / Sigma Labs, Inc. (NASDAQ:SGLB) ("Sigma Labs" or the "Company"), a leading developer of quality assurance software for the commercial 3D metal printing industry, has reported its financial and operational results for the first quarter ended March 31, 2021.

Key First Quarter and Subsequent Operational Highlights

  • Improved financial performance with revenue increasing by more than 100% over both Q1 2020 and Q4 2020, to $0.5 million. Enhanced gross margin, resulting in gross profit before operating expenses of $0.3 million for the quarter.
  • Announced several key contract wins to further validate the company's technology, including:
  • Selected by Ermaksan Innovative Technologies to provide the Company's In-Process Quality Assurance technology, PrintRite3D®, as a factory option on Ermaksan's ENAVISION 3D metal additive machines and will be integrated with the Materialise Control Platform (MCP).
  • Awarded contract from Lockheed Martin Space Additive Design & Manufacturing Center for an initial system of its PrintRite3D in-process quality assurance solution.
  • Awarded contract from a large European aerospace company through OEM agreement with Additive Industries for a quad laser PrintRite3D system.
  • Completed two equity offerings raising gross proceeds of approximately $14.8 million.
  • Additional capital brings new institutional investors and enables Company to further invest in business to expand unit sales and revenue growth.

Management Commentary
"The first quarter of 2021 was marked by continued adoption of Sigma Labs industry standard IPQA technology that was validated by our improved financial performance with solid PrintRite3D unit sales, a strengthened balance sheet showing strong institutional investor interest, and macro tailwinds signaling a return to growth in the coming months for the 3D metal printing industry," said Mark K. Ruport, President and CEO of Sigma Labs. "We are increasingly seeing upticks of activity in the 3D metal printing market, resulting in several new contracts for initial systems. We believe that each new customer will open up opportunities for additional systems as our customers expand and accelerate their Additive Manufacturing initiatives.

"Recently we announced a $9.7 million registered direct offering priced at-the-market under Nasdaq rules to significantly strengthen our balance sheet and provide us with sufficient working capital to allow us to meet the growth demands of the market. Combined with our previous $5.1 million public offering which included the full exercise of the underwriter's over-allotment option, we now have over $16.8 million in cash to support growth, direct sales and marketing. This achievement represents a significant milestone for the company and will put us in the strongest financial position in the history of Sigma Labs.

"For the remainder of the year, we are continuing along our roadmap to focus on new markets and opportunities, including aerospace, space exploration and defense. We are leveraging our sales team to expand sales through our current partnerships, and through direct sales to global end-user manufacturers, universities and R&D organizations. Additionally, we will continue to seek out new and expanded strategic partnerships with 3D printer OEMs, software companies, and integrators.

"The outlook for the Additive Manufacturing industry in 2021 appears robust, with increasing demand predicted by Statista and others as 3D metal printing goes from prototyping to full industrialization. We believe we are poised to set the standard for quality assurance and capture a significant share of the market. We look forward to sharing more of our accomplishments and contract wins as the year progresses," concluded Ruport.

First Quarter 2021 Financial Results
Revenue for the first quarter of 2021 totaled $458,140. This compares to revenues of $221,730 for the first quarter of 2020. The increase in revenue was primarily due to increased PrintRite3D® unit sales in the first quarter of 2021.

Gross profit for the first quarter of 2021 was $329,809, which resulted in a gross margin of 72% as compared to negative $22,973 in the first quarter of 2020.

Total operating expenses for the first quarter of 2021 were $1.8 million as compared to total operating expenses of $1.6 million for the same period in 2020.

Cash used in operating activities for the three months ended March 31, 2021 totaled $1.2 million compared to $1.5 million in the first quarter of 2020, a decrease of $0.3 million.

Net loss for the first quarter of 2021 was $0.7 million, or $(0.09) per share, as compared to a net loss of $1.6 million, or $(1.30) per share, in the first quarter of 2020.

Cash totaled $16.8 million at March 31, 2021, as compared to $3.7 million at December 31, 2020. The increase in cash during the period was a result of a $9.7 million registered direct offering of common stock and short-term warrants and a public offering of shares of common stock with gross proceeds of approximately $5.1 million. In addition, warrant exercises during the first quarter of 2021 have contributed an additional $1.1 million in cash proceeds.

First Quarter 2021 Results Conference Call
Sigma Labs President and CEO Mark Ruport and CFO Frank Orzechowski will host the conference call, followed by a question-and-answer period.

To access the call, please use the following information:

Date:
Thursday, April 22, 2021
Time:
4:30 p.m. Eastern time, 1:30 p.m. Pacific time
Toll-free dial-in number:
1-877-407-9039
International dial-in number:
1-201-689-8470
Conference ID:
13718662
   

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235.

The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=144322 and via the investor relations section of the Company's website at www.sigmalabsinc.com.

A replay of the conference call will be available after 7:30 p.m. Eastern time through May 6, 2021.

Toll-free replay number:
1-844-512-2921
International replay number:
1-412-317-6671
Replay ID:
13718662
   

About Sigma Labs
Sigma Labs Inc. is a leading provider of in-process quality assurance (IPQA®) software to the additive manufacturing industry. Sigma Labs specializes in the development and commercialization of real-time monitoring solutions known as PrintRite3D® for 3D metal advanced manufacturing technologies. PrintRite3D detects and classifies defects and anomalies real-time during the manufacturing process, enabling significant cost-savings and production efficiencies. Sigma Labs believes its software product will be a major catalyst for the acceleration and adoption of 3D metal printing. For more information, please visit www.sigmalabsinc.com.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are risks relating to, among other things, market and other conditions, Sigma Labs' business and financial condition, Sigma Labs' ability to satisfy its capital needs through increasing its revenue and obtaining additional financing, and the impact of COVID-19, general economic, industry or political conditions in the United States or internationally. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see disclosures contained in Sigma Labs' public filings with the SEC, including the "Risk Factors" in Sigma Labs' Annual Report on Form 10-K, and which may be viewed at www.sec.gov.

Investor Contact:
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
[email protected]
www.mzgroup.us

Company Contact:
Steven Gersten
Sigma Internal IR
813-334-9745
[email protected]

Sigma Labs, Inc.
Condensed Balance Sheets
(Unaudited)

 
  March 31, 2021     December 31, 2020  
 
           
ASSETS
           
Current Assets:
           
Cash
  16,843,201     3,700,814  
Accounts Receivable, net
    388,050       331,562  
Inventory
    747,780       659,651  
Prepaid Assets
    135,453       90,735  
Total Current Assets
    18,114,484       4,782,762  
 
               
Other Assets:
               
Property and Equipment, net
    128,318       138,626  
Intangible Assets, net
    762,368       753,122  
Long-Term Prepaid Asset
    26,000       26,000  
Total Other Assets
    916,686       917,748  
 
               
TOTAL ASSETS
  19,031,170     5,700,510  
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
               
 
               
Current Liabilities:
               
Accounts Payable
  280,437     128,937  
Deferred Revenue
    76,417       77,957  
Accrued Expenses
    217,404       243,815  
Derivative Liability
    4,905,927       -  
Total Current Liabilities
    5,480,185       450,709  
 
               
Long-Term Liabilities
               
Stock Appreciation Rights
    93,525       48,341  
CARES Act Deferred Payroll Taxes
    37,728       37,728  
Total Long-Term Liabilities
    131,253       86,069  
TOTAL LIABILITIES
    5,611,438       536,778  
 
               
Stockholders' Equity
               
Preferred Stock, $0.001 par; 10,000,000 shares authorized; 465 and 715 issued and outstanding, respectively
    1       1  
Common Stock, $0.001 par; 12,000,000 shares authorized; 10,493,598 and 5,995,320 issued and outstanding, respectively
    10,494       5,995  
Additional Paid-In Capital
    47,225,812       38,262,744  
Accumulated Deficit
    (33,816,575 )     (33,105,008 )
Total Stockholders' Equity
    13,419,732       5,163,732  
 
               
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  19,031,170     5,700,510  
                 

Sigma Labs, Inc.
Condensed Statements of Operations
(Unaudited)

 
  Three Months Ended  
 
  March 31, 2021     March 31, 2020  
 
           
REVENUES
  458,140     221,730  
 
               
COST OF REVENUE
    128,331       244,703  
 
               
GROSS PROFIT
    329,809       (22,973)  
 
               
OPERATING EXPENSES:
               
Salaries & Benefits
    847,171       652,197  
Stock-Based Compensation
    117,477       154,171  
Operating R&D Costs
    196,340       53,689  
Investor & Public Relations
    108,341       215,441  
Organization Costs
    77,616       49,444  
Legal & Professional Service Fees
    176,847       184,891  
Office Expenses
    148,225       147,747  
Depreciation & Amortization
    23,031       18,012  
Other Operating Expenses
    86,356       84,049  
Total Operating Expenses
    1,781,404       1,559,641  
 
               
LOSS FROM OPERATIONS
    (1,451,595)       (1,582,614)  
 
               
OTHER INCOME (EXPENSE)
               
Interest Income
    55       851  
Gain on Derivative Liability
    802,285       -  
Exchange Rate Loss
    (51 )     (1,391 )
Interest Expense
    (1,353 )     (431 )
Total Other Income (Expense)
    800,936       (971)  
 
               
LOSS BEFORE PROVISION FOR INCOME TAXES
    (650,659)       (1,583,585)  
 
               
Provision for Income Taxes
    -       -  
 
               
Net Loss
  (650,659)     (1,583,585)  
 
               
Preferred Dividends
    (60,908 )     (315,247 )
 
               
Net Loss Applicable to Common Stockholders
  (711,567)     (1,898,832)  
 
               
Net Loss per Common Share - Basic and Diluted
  (0.09)     (1.30)  
 
               
Weighted Average Number of Shares Outstanding - Basic and Diluted
    7,790,121       1,463,627  
                 

Sigma Labs, Inc.
Condensed Statements of Cash Flows
(Unaudited)

 
  Three Months Ended  
 
  March 31, 2021     March 31, 2020  
OPERATING ACTIVITIES
           
Net Loss
  (650,659 )   (1,583,585 )
Adjustments to reconcile Net Loss to Net Cash used in operating activities:
               
Noncash Expenses:
               
Depreciation and Amortization
    23,031       18,012  
Gain on Derivative Liability
    (802,285 )     -  
Stock Based Compensation Employees
    117,477       154,171  
Stock Based Compensation - Third Party Services
    30,981       39,618  
Stock Based Compensation - Directors
    61,471       -  
Change in assets and liabilities:
               
Accounts Receivable
    (56,488 )     (63,885 )
Inventory
    (88,129 )     92,915  
Prepaid Assets
    (44,718 )     63,006  
Accounts Payable
    151,500       (243,000 )
Deferred Revenue
    (1,540 )     (45,330 )
Accrued Expenses
    (26,411 )     42,383  
Long-term portion of Stock Appreciation Rights
    45,184       -  
NET CASH USED IN OPERATING ACTIVITIES
    (1,240,586 )     (1,525,696 )
 
               
INVESTING ACTIVITIES
               
Purchase of Property and Equipment
    (5,350 )     (11,474 )
Purchase of Intangible Assets
    (16,619 )     (39,055 )
NET CASH USED IN INVESTING ACTIVITIES
    (21,969 )     (50,529 )
 
               
FINANCING ACTIVITIES
               
Gross Proceeds from Public and Private Issuances of Securities
    14,869,899       2,100,000  
Less Offering Costs
    (1,600,967 )     (428,876 )
Payment of Note Payable
    -       (50,000 )
Proceeds from Exercise of Warrants
    1,136,010       499,200  
NET CASH PROVIDED BY FINANCING ACTIVITIES
    14,404,942       2,120,324  
 
               
NET CHANGE IN CASH FOR PERIOD
    13,142,387       544,099  
 
               
CASH AT BEGINNING OF PERIOD
    3,700,814       86,919  
 
               
CASH AT END OF PERIOD
  16,843,201     631,018  
 
               
Supplemental Disclosures:
               
Noncash investing and financing activities disclosure:
               
Issuance of Common Shares for Preferred Dividends
    60,908       315,247  
Other noncash operating activities disclosure:
               
Issuance of Securities for Services
    92,452       39,618  
Disclosure of cash paid for:
               
Interest
  1,353     1,458  
Income Taxes
  -     -  
                 

SOURCE: Sigma Labs, Inc.

Sigma Labs, Inc.
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