Sigma Labs Reports Second Quarter 2021 Financial Results
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Sigma Labs Reports Second Quarter 2021 Financial Results

Thursday, July 22, 2021 4:01 PM
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Management to Host Conference Call Today at 4:30 p.m. ET

SANTA FE, NM / ACCESSWIRE / July 22, 2021 / Sigma Labs, Inc. (NASDAQ:SGLB) ("Sigma Labs"), a leading developer of quality assurance software for the commercial 3D metal printing industry, has reported its financial and operational results for the second quarter ended June 30, 2021.

Key Second Quarter Highlights

Announced several key developments, including:

  • Released PrintRite3D Version 7.0, an industry-leading system for in-process quality assurance for industrial 3D manufacturers, with breakthroughs in quality and economics driven by temperature calibration. Developed after extensive input from existing customers, 3D metal printing manufacturers, universities and standards organizations, the next generation PrintRite3D 7.0 contains upgrades to existing features, as well as significant new functionality that meets industry demands driving enhanced quality and better economics for end-users.
  • Recognized at the American Society of Mechanical Engineers' AM Tech Forum as the winner of the Best-in-Class Innovation Award for Additive Manufacturing Measurement and Analysis, chosen based on multiple criteria including impact on speed, cost, and quality; range of potential use across applications and industries; level of innovation-from an improvement to a game changer; and how likely they would purchase.
  • Added to the Russell Microcap Index enabling greater access and visibility to institutional investors and investment managers.

Management Commentary

"Despite the ongoing unpredictability and delays in the market due to the international effects of the pandemic, users in current and new markets in aerospace, space exploration and defense are showing strong interest, engagement and activity level with us," said Mark K. Ruport, President and CEO of Sigma Labs. "We also continue to see validation from our clients and from our prospective clients who are testing our solution, and from industry associations with our Best-in-Class Innovation Award from the American Society of Mechanical Engineers. We believe our solutions remain a crucial ingredient to help accelerate the adoption of additive manufacturing and increase the success of the 3D metal printing industry.

"During the quarter we released PrintRite3D version 7.0, with key features such as Temperature Monitoring and Calibration, including a cooling rate metric and units/traceability for TEP ("Thermal Emission Planck") to Celsius/Kelvin conversion, and Neural Net Machine Learning Recoater Interaction Detection that allows users to automatically spot recoater interaction detection with higher diagnostic accuracy. Taken together, we believe the unique benefits of the update provide a competitive advantage for our customers and believe positions us to help accelerate the growth of the additive manufacturing industry.

"Looking ahead, our team remains confident in our technology and strategy, industry growth, and our ability to capture market share with our first mover advantage, significant barriers to entry, and leveraged business model. The Industry outlook is positive, however, given the stage of the industry, timing of our contracts can have an impact on any particular quarter, especially with the delays resulting from Covid-19 in the reopening of Europe and Asia.

"With our recently strengthened balance sheet, we now have over $14.7 million in cash to support growth, direct sales and marketing. For the second half of the year, we are focusing on seeking to expand sales through our partnerships with DMG MORI and Additive Industries, and increased direct sales to global end-user manufacturers, universities and R&D organizations. We also continue to seek new and expanded strategic partnerships with 3D printer OEMs, software companies, and integrators. We look forward to sharing additional updates as the year progresses," concluded Ruport.

Second Quarter 2021 Financial Results

Revenue for the second quarter of 2021 totaled $144,148. This compares to revenues of $167,688 for the second quarter of 2020. The decrease in revenue was primarily due a decrease of $29,864 in revenue from our Rapid Test and Evaluation program from the second quarter of 2020.

Gross profit for the second quarter of 2021 was $27,751 as compared to $110,004 in the second quarter of 2020.

Total operating expenses for the second quarter of 2021 were $2.2 million as compared to total operating expenses of $1.5 million for the same period in 2020. The increase was mainly attributable additional employee headcount, R&D expenses and organizational costs.

Cash used in operating activities for the six months ended June 30, 2021, totaled $3.3 million compared to $2.4 million in the second quarter of 2020, an increase of $0.8 million.

Net loss for the second quarter of 2021 was $1.9 million, or $(0.18) per share, as compared to a net loss of $1.6 million, or $(0.49) per share, in the second quarter of 2020.

Cash totaled $14.7 million at June 30, 2021, as compared to $3.7 million at December 31, 2020. The increase in cash during the period was a result of a $5.1 million public offering of common stock and a follow-on $9.7 million registered direct offering of common stock and short-term warrants. In addition, warrant exercises during the first quarter of 2021 have contributed an additional $1.1 million in cash proceeds.

Second 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, July 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:13721685

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=145807 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 August 5, 2021.

Toll-free replay number:

1-844-512-2921

International replay number:

1-412-317-6671

Replay ID:

13721685

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, the extent of the market's acceptance of PrintRite3D version 7.0, 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.

Contacts:

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)

       
 
 June 30, 2021  December 31, 2020 
 
      
ASSETS
      
Current Assets:
      
Cash
 $14,731,115  $3,700,814 
Accounts Receivable, net
  389,450   331,562 
Inventory
  846,999   659,651 
Prepaid Assets
  168,326   90,735 
Total Current Assets
  16,135,890   4,782,762 
 
        
Other Assets:
        
Property and Equipment, net
  157,490   138,626 
Intangible Assets, net
  793,465   753,122 
Long-Term Prepaid Asset
  -   26,000 
Total Other Assets
  950,955   917,748 
 
        
TOTAL ASSETS
 $17,086,845  $5,700,510 
 
        
LIABILITIES AND STOCKHOLDERS' EQUITY
        
 
        
Current Liabilities:
        
Accounts Payable
 $315,768  $128,937 
Deferred Revenue
  63,569   77,957 
Accrued Expenses
  184,099   243,815 
Total Current Liabilities
  563,436   450,709 
 
        
Long-Term Liabilities:
        
Stock Appreciation Rights
  93,525   48,341 
CARES Act Deferred Payroll Tax Liability
  37,728   37,728 
Total Long-Term Liabilities
  131,253   86,069 
 
        
TOTAL LIABILITIES
  694,689   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; 24,000,000 shares authorized; 10,493,598 and 5,995,320 issued and outstanding, respectively
  10,494   5,995 
Additional Paid-In Capital
  52,058,003   38,262,744 
Accumulated Deficit
  (35,676,342)  (33,105,008)
Total Stockholders' Equity
  16,392,156   5,163,732 
 
        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 $17,086,845  $5,700,510 
         

See accompanying notes to condensed financial statements.

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

       
 
 Three Months Ended
June 30,
  Six Months Ended
June 30,
 
 
 2021  2020  2021  2020 
 
            
REVENUES
 $144,148  $167,688  $602,288  $389,418 
 
                
COST OF REVENUE
  116,397   57,684   244,728   302,387 
 
                
GROSS PROFIT (LOSS)
  27,751   110,004   357,560   87,031 
 
                
OPERATING EXPENSES:
                
Salaries & Benefits
  985,348   605,295   1,832,520   1,257,492 
Stock-Based Compensation
  116,441   270,818   233,919   424,989 
Operating R&D Costs
  280,700   111,647   477,040   165,335 
Investor & Public Relations
  114,762   97,702   223,103   287,009 
Organization Costs
  158,529   80,096   236,145   155,675 
Legal & Professional Service Fees
  244,019   212,496   420,866   397,386 
Office Expenses
  151,871   78,843   300,096   226,590 
Depreciation & Amortization
  25,783   17,970   48,814   35,983 
Other Operating Expenses
  91,198   51,687   177,554   135,736 
Total Operating Expenses
  2,168,651   1,526,554   3,950,057   3,086,195 
 
                
LOSS FROM OPERATIONS
  (2,140,900)  (1,416,550)  (3,592,497)  (2,999,164)
 
                
OTHER INCOME (EXPENSE)
                
Interest Income
  7,018   31   7,073   882 
State Incentives
  -   151,657   -   151,657 
Exchange Rate Gain (Loss)
  208   (31)  158   (1,422)
Interest Expense
  (2,029)  (6,244)  (3,382)  (6,675)
Loss on Dissolution of Joint Venture
  -   (201)  -   (201)
Other Income
  290,156   361,700   1,092,441   361,700 
Total Other Income (Expense)
  295,353   506,912   1,096,290   505,941 
 
                
LOSS BEFORE PROVISION FOR INCOME TAXES
  (1,845,547)  (909,638)  (2,496,207)  (2,493,223)
 
                
Provision for income Taxes
  -   -   -   - 
 
                
Net Loss
 $(1,845,547) $(909,638) $(2,496,207) $(2,493,223)
 
                
Preferred Dividends
  (14,220)  (691,880)  (75,127)  (1,007,127)
 
                
Net Loss Applicable to Common Stockholders
 $(1,859,767) $(1,601,518) $(2,571,334) $(3,500,350)
 
                
Net Loss per Common Share - Basic and Diluted
 $(0.18) $(0.49) $(0.28) $(1.48)
 
                
Weighted Average Number of Shares Outstanding - Basic and Diluted
  10,493,598   3,256,098   9,149,328   2,359,862 
                 

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

    
 
 Six Months Ended 
 
 June 30, 2021  June 30, 2020 
OPERATING ACTIVITIES
      
Net Loss
 (2,496,207) (2,493,223)
Adjustments to reconcile Net Loss to Net Cash used in operating activities:
        
Noncash Expenses:
        
Depreciation and Amortization
  48,814   35,983 
Gain on Derivative Liability
  (1,092,441)  - 
Stock Based Compensation - Employees
  233,919   424,989 
Stock Based Compensation - Third Party Services
  55,937   54,924 
Stock Based Compensation - Directors
  122,274   - 
Change in assets and liabilities:
        
Accounts Receivable
  (57,888)  (230,865)
Inventory
  (187,348)  13,078 
Prepaid Assets
  (51,591)  81,695 
Accounts Payable
  186,831   (431,893)
Deferred Revenue
  (14,388)  (39,860)
Accrued Expenses
  (14,531)  149,785 
NET CASH USED IN OPERATING ACTIVITIES
  (3,266,620)  (2,435,387)
 
        
INVESTING ACTIVITIES
        
Purchase of Property and Equipment
  (52,931)  (11,474)
Purchase of Intangible Assets
  (55,090)  (87,736)
Dissolution of Joint Venture
  -   500 
NET CASH USED IN INVESTING ACTIVITIES
  (108,021)  (98,710)
 
        
FINANCING ACTIVITIES
        
 
        
Gross Proceeds from Public and Private Issuances of Securities
  14,869,899   3,600,000 
Less Offering Costs
  (1,600,967)  (820,228)
Payment of Note Payable
  -   (50,000)
Proceeds from Exercise of Warrants
  1,136,010   2,141,100 
Deferral of Payroll Taxes under the CARES Act
  -   22,072 
NET CASH PROVIDED BY FINANCING ACTIVITIES
  14,404,942   4,892,944 
 
        
NET CHANGE IN CASH FOR PERIOD
  11,030,301   2,358,847 
 
        
CASH AT BEGINNING OF PERIOD
  3,700,814   86,919 
 
        
CASH AT END OF PERIOD
 14,731,115  2,445,766 
 
        
Supplemental Disclosures:
        
Noncash investing and financing activities disclosure:
        
Issuance of Common Shares for Preferred Dividends
 75,108  1,006,717 
Issuance of Securities for services
 178,209  62,794 
Disclosure of cash paid for:
        
Interest
 3,382  9,359 
Income Taxes
 -  - 
         

SOURCE: Sigma Labs, Inc.

Sigma Labs, Inc.
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