Conference Call to Be Held Today at 4:30pm
Eastern Time
Sigma Labs, Inc. (NASDAQ:SGLB) (“Sigma Labs,” we," "our" or the
“Company”), a provider of quality assurance software under the
PrintRite3D® brand, today announced financial results for the three
months ended June 30, 2018 and provided an overview of recent
accomplishments.
Second Quarter 2018 and Recent Business
Highlights
- June 2018 – Announced the closing of a public offering for
gross proceeds of $2,390,000.
- May 2018 – Sigma labs demonstrated proof of concept for closed
loop quality control during metal additive manufacturing.
- May 2018 - Sigma Labs allowed a US patent entitled “Method and
System for Monitoring Additive Manufacturing Processes.”
- May 2018 – Sigma Labs expanded its business development in
Europe by hiring its first employee in Europe.
- April 2018 – Sigma Labs completed a $1.0 Million private
placement financing.
- April 2018 – Sigma Labs participated in two significant
industry events including The Additive Manufacturing Users Group
(AMUG) Conference and Exhibition in St. Louis, MO
(http://www.amug.com) and The Rapid 2018 Conference in Fort Worth,
TX (http://www.rapid3devent.com).
“We had an active quarter of strength building
as we continued to transform ourselves from an R&D company with
a high potential R&D product into a commercialization company
with reliable high-performance market-ready products to sell.
During the quarter we announced successful demonstration of Closed
Loop Control capability while also strongly bolstering our balance
sheet,” commented John Rice, Chairman and CEO of Sigma Labs. “In
the course of the past 9 months, Sigma recruited additional expert
personnel to balance our required skillsets, implemented new
business processes in product development and customer service, and
step by step, set out to elevate our lab-ready hardware and
software products into robust commercial equipment ready to deploy
into high quality production settings. I am proud of what we have
achieved so far in 2018 internally strengthening Sigma’s product,
operations, and balance sheet. Now, going forward we must thrust
our product effectively into the marketplace.”
Second Quarter 2018 Financial
Results
In the second quarter of 2018, we recognized
revenue of $98,663 compared to $290,553 during the same period of
2017.
Sigma’s total operating expenses for the second
quarter of 2018 were $1,422,511 compared to $1,108,234 for the same
period of 2017. The most significant of our operating expenses is
personnel costs, comprised of payroll and stock-based compensation
expense. Payroll costs in the second quarter of 2018 were $426,049
compared to $346,994 for the same period in 2017 or 30% and 31% of
total operating expenses for the period, respectively. The total
payroll costs increase of $79,055 resulted primarily from the
strategic addition of six employees since the second quarter of
2017 as we continue the concentrated acceleration of technology
development and expand into the European 3D manufacturing market.
Stock-based compensation for the second quarter of 2018 was
$423,067 compared to $166,773 for the same period in 2017. The
$256,294 increase resulted primarily from the issuance of stock
options to our Chief Executive Officer in the second quarter of
2018, $61,651 of additional stock options vesting expense related
to the options issued to our President and Chief Technology
Officer, and the amortization of an additional $72,494 in Board of
Director stock compensation cost in that same 2018 period.
During the three months ended June 30, 2018,
Sigma incurred research and development expenditures of $95,045
compared to $131,908 in the same period of 2017. The $36,863
decrease in these expenditures resulted primarily from a reduction
in the amount of third party consulting utilized in Sigma’s Inspect
2.0 software and contour hardware development between the two
periods.
Sigma’s total net loss for the second quarter of
2018 was $1, 388,804 as compared to $988,741 for the second quarter
of 2017, a $572,563 increase with operating income contributing
$400,063 to the increased loss and increased other income and
expense offsetting it by $63,260.
During the six months ended June 30, 2018, we
recognized revenue of $202,078 compared to $405,076 of revenue
recognized during the same period of 2017. The primary contributors
to the $202,998 reduction were revenue decreases of $134,473 from
the DARPA and Aerojet government programs and $130,561 in new
system sales, partially offset by increased net other revenue in
the 2018, primarily, $58,631 of contract AM service sales.
Payroll costs for the six months ended June 30,
2018 were $824,706 compared to $785,204 for the same period in
2017. The $39,502 increase resulted primarily from the earlier
mentioned addition of six employees since the end of the second
quarter of 2017.
During the six months ended June 30, 2018, Sigma
incurred research and development expenditures of $217,022 compared
to $186,413 in the same period of 2017. The $30,609 increase in
these expenditures during the first six months of 2018 resulted
primarily from the purchase of multiple upgraded servers and
various pieces of specialized equipment as part of our continued
concentrated acceleration of technology development.
Sigma’s net loss for the six months ended June
30, 2018 totaled $2,559,680 as compared to $1,815,373 for the same
period of 2017, a $744,307 increase with operating income
contributing $644,338 and other income and expense contributing
$99,969.
Liquidity and Capital
Resources
As of June 30, 2018, we had $3,519,637 in cash
and had a working capital surplus of $3,320,502, as compared with
$1,515,674 in cash and a working capital surplus of $2,273,801 as
of December 31, 2017.
Investor Conference Call
Management will host a conference call on
Tuesday, August 14, 2018 at 4:30pm to review financial results and
corporate highlights. Following management’s formal remarks, there
will be a question and answer session.
To listen to the call by phone, interested
parties within the U.S. should call 1-844-802-2441 and
International callers should call 1-412-317-5134. All callers
should ask for the Sigma Labs conference call. The conference call
will also be available through a live webcast at
www.sigmalabsinc.com. Details for the webcast may be found on the
Company’s IR events page
at: http://client.irwebkit.com/sigmalabsinc/events.
A replay of the call will be available
approximately one hour after the end of the call through September
15, 2018. The replay can be accessed via Sigma Labs' website or by
dialing 877-344-7529 (domestic) or 412-317-0088 (international) or
Canada Toll Free at 855-669-9658. The replay conference ID number
is 10123080. The webcast replay will be available through November
14, 2018.
About Sigma Labs, Inc. Sigma
Labs, Inc. is a provider of quality assurance software under the
PrintRite3D® brand and a developer of advanced, in-process,
non-destructive quality assurance software for commercial firms
worldwide seeking productive solutions for advanced manufacturing.
For more information please visit us at
www.sigmalabsinc.com.
Forward-Looking StatementsThis
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 which may cause the
Company's actual results, performance or achievements to be
materially different from any anticipated results, performance or
achievements. 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 the Company’s
Annual Report on Form 10-K (including but not limited to the
discussion under “Risk Factors” therein) filed with the SEC on
April 17, 2018 and which may be viewed at http://www.sec.gov.
Investor Relations Contact:Bret
ShapiroManaging DirectorCORE IR561-479-8566 brets@coreir.com
Sigma Labs,
Inc.Condensed Balance
Sheets(Unaudited)
|
|
|
|
|
|
|
June 30, 2018 |
|
|
December 31, 2017 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
Cash |
$ |
3,519,637 |
|
|
$ |
1,515,674 |
|
Accounts
Receivable, net |
|
63,510 |
|
|
|
104,538 |
|
Note
Receivable, net |
|
118,164 |
|
|
|
788,500 |
|
Inventory |
|
145,605 |
|
|
|
192,705 |
|
Prepaid
Assets |
|
64,891 |
|
|
|
55,278 |
|
Total Current
Assets |
|
3,911,807 |
|
|
|
2,656,695 |
|
|
|
|
|
|
|
|
|
Other
Assets: |
|
|
|
|
|
|
|
Property
and Equipment, net |
|
358,686 |
|
|
|
411,643 |
|
Intangible Assets, net |
|
317,161 |
|
|
|
294,396 |
|
Investment in Joint Venture |
|
500 |
|
|
|
500 |
|
Prepaid
Stock Compensation |
|
130,965 |
|
|
|
31,576 |
|
Total Other
Assets |
|
807,312 |
|
|
|
738,115 |
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
$ |
4,719,119 |
|
|
$ |
3,394,810 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts
Payable |
$ |
288,379 |
|
|
$ |
100,884 |
|
Dividends
Payable |
|
15,125 |
|
|
|
- |
|
Notes
Payable |
|
50,000 |
|
|
|
100,000 |
|
Deferred
Revenue |
|
69,706 |
|
|
|
35,680 |
|
Accrued
Expenses |
|
168,095 |
|
|
|
146,330 |
|
Total Current
Liabilities |
|
591,305 |
|
|
|
382,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES |
|
591,305 |
|
|
|
382,894 |
|
|
|
|
|
|
|
|
|
Commitments & Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
Preferred Stock, $0.001 par; 10,000,000 shares authorized; 350 and
0 shares issued and outstanding, respectively |
|
- |
|
|
|
- |
|
Common Stock, $0.001 par; 15,000,000 shares authorized; 8,248,729
and 4,978,929 issued and outstanding, respectively |
|
8,249 |
|
|
|
4,979 |
|
Additional Paid-In Capital |
|
20,879,827 |
|
|
|
17,192,394 |
|
Accumulated Deficit |
|
(16,760,262 |
) |
|
|
(14,185,457 |
) |
Total
Stockholders’ Equity |
|
4,127,814 |
|
|
|
3,011,916 |
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
4,719,119 |
|
|
$ |
3,394,810 |
|
|
|
|
|
|
|
|
|
Sigma Labs,
Inc.Condensed Statements of
Operations(Unaudited)
|
|
|
|
|
|
|
Three Months EndedJune
30, |
|
|
Six Months EndedJune
30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
$ |
98,663 |
|
|
$ |
290,553 |
|
|
$ |
202,078 |
|
|
$ |
405,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE |
|
68,568 |
|
|
|
111,412 |
|
|
|
142,363 |
|
|
|
185,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT |
|
30,095 |
|
|
|
179,141 |
|
|
|
59,715 |
|
|
|
219,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
& Benefits |
|
426,049 |
|
|
|
346,994 |
|
|
|
824,706 |
|
|
|
785,204 |
|
Stock-Based Compensation |
|
423,067 |
|
|
|
166,773 |
|
|
|
584,589 |
|
|
|
306,405 |
|
Operating
R&D Costs |
|
95,045 |
|
|
|
131,908 |
|
|
|
217,022 |
|
|
|
186,413 |
|
Investor
& Public Relations |
|
103,197 |
|
|
|
131,780 |
|
|
|
283,596 |
|
|
|
243,913 |
|
Legal
& Professional Service Fees |
|
177,929 |
|
|
|
189,856 |
|
|
|
316,352 |
|
|
|
289,494 |
|
Office
Expenses |
|
110,936 |
|
|
|
64,739 |
|
|
|
206,042 |
|
|
|
148,944 |
|
Depreciation & Amortization |
|
48,253 |
|
|
|
45,503 |
|
|
|
95,574 |
|
|
|
91,651 |
|
Other
Operating Expenses |
|
38,035 |
|
|
|
30,681 |
|
|
|
71,760 |
|
|
|
62,692 |
|
Total Operating
Expenses |
|
1,422,511 |
|
|
|
1,108,234 |
|
|
|
2,599,641 |
|
|
|
2,114,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS |
|
(1,392,416 |
) |
|
|
(929,093 |
) |
|
|
(2,539,926 |
) |
|
|
(1,895,587 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Income |
|
3,719 |
|
|
|
12,598 |
|
|
|
17,086 |
|
|
|
12,941 |
|
State
Incentives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
152,068 |
|
Change in
fair value of derivative liabilities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
93,206 |
|
Exchange
Rate Gain |
|
1,304 |
|
|
|
- |
|
|
|
1,304 |
|
|
|
- |
|
Interest
Expense |
|
(1,411 |
) |
|
|
(49,862 |
) |
|
|
(1,411 |
) |
|
|
(99,178 |
) |
Debt
discount amortization |
|
- |
|
|
|
(22,382 |
) |
|
|
(36,733 |
) |
|
|
(22,382 |
) |
Loss on
Disposal of Assets |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
(56,441 |
) |
Total Other
Income (Expense) |
|
3,612 |
|
|
|
(59,646 |
) |
|
|
(19,754 |
) |
|
|
80,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE
PROVISION FOR INCOME TAXES |
|
(1,388,804 |
) |
|
|
(988,741 |
) |
|
|
(2,559,680 |
) |
|
|
(1,815,373 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income Taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
$ |
(1,388,804 |
) |
|
$ |
(988,741 |
) |
|
$ |
(2,559,680 |
) |
|
$ |
(1,815,373 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss per
Common Share – Basic and Diluted |
$ |
(0.25 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Number of Shares Outstanding – Basic and
Diluted |
|
5,572,015 |
|
|
|
4,570,199 |
|
|
|
5,286,362 |
|
|
|
4,207,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sigma Labs,
Inc.Condensed Statements of Cash
Flows(Unaudited)
|
|
|
|
Six Months Ended |
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
Net
Loss |
$ |
(2,559,680 |
) |
|
$ |
(1,815,373 |
) |
Adjustments to
reconcile Net Loss to Net Cash used in operating
activities: |
|
|
|
|
|
|
|
Noncash
Expenses: |
|
|
|
|
|
|
|
Depreciation and Amortization |
|
95,574 |
|
|
|
91,651 |
|
Stock
Based Compensation |
|
594,915 |
|
|
|
307,445 |
|
Loss on
Write-off of Asset |
|
36,733 |
|
|
|
- |
|
(Gain) on
Change in Derivative Balance |
|
- |
|
|
|
(93,206 |
) |
Original
Issue Discount Amortization |
|
- |
|
|
|
49,589 |
|
Debt
Discount Amortization |
|
- |
|
|
|
56,441 |
|
Change in
assets and liabilities: |
|
|
|
|
|
|
|
Accounts
Receivable |
|
41,028 |
|
|
|
52,769 |
|
Interest
Receivable |
|
38,139 |
|
|
|
- |
|
Inventory |
|
47,100 |
|
|
|
(40,586 |
) |
Prepaid
Assets |
|
(9,613 |
) |
|
|
(1,120 |
) |
Accounts
Payable |
|
187,495 |
|
|
|
25,430 |
|
Deferred
Revenue |
|
34,026 |
|
|
|
35,680 |
|
Accrued
Expenses |
|
21,764 |
|
|
|
40,220 |
|
NET CASH USED
IN OPERATING ACTIVITIES |
|
(1,472,519 |
) |
|
|
(1,291,060 |
) |
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
Purchase of Property
and Equipment |
|
(41,968 |
) |
|
|
(11,380 |
) |
Purchase of Intangible
Assets |
|
(60,147 |
) |
|
|
(22,054 |
) |
Advance of Funds for
Note Receivable |
|
- |
|
|
|
(762,034 |
) |
Proceeds from Note
Receivable |
|
632,197 |
|
|
|
- |
|
NET CASH
PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
530,082 |
|
|
|
(795,468 |
) |
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
Proceeds from issuance
of Series B Convertible Preferred & Warrants |
|
1,000,000 |
|
|
|
- |
|
Proceeds from issuance
of Series C Convertible Preferred & Warrants |
|
350,000 |
|
|
|
- |
|
Gross Proceeds from
issuance of Common Stock and Warrants |
|
2,040,100 |
|
|
|
5,823,300 |
|
Offering Costs
Paid |
|
(443,700 |
) |
|
|
(750,664 |
) |
NET CASH
PROVIDED BY FINANCING ACTIVITIES |
|
2,946,400 |
|
|
|
5,072,636 |
|
|
|
|
|
|
|
|
|
NET CHANGE IN
CASH FOR PERIOD |
|
2,003,963 |
|
|
|
2,986,108 |
|
|
|
|
|
|
|
|
|
CASH AT
BEGINNING OF PERIOD |
|
1,515,674 |
|
|
|
398,391 |
|
|
|
|
|
|
|
|
|
CASH AT END OF
PERIOD |
$ |
3,519,637 |
|
|
$ |
3,384,499 |
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures: |
|
|
|
|
|
|
|
Noncash
investing & financing activities disclosure: |
|
|
|
|
|
|
|
Conversion of
Convertible Debt for Stock |
$ |
(50,000 |
) |
|
$ |
- |
|
Other noncash
operating activities disclosure: |
|
|
|
|
|
|
|
Issuance of Common
Stock for services |
$ |
252,264 |
|
|
$ |
51,408 |
|
Disclosure of
cash paid for: |
|
|
|
|
|
|
|
Interest |
$ |
8,761 |
|
|
$ |
50,418 |
|
Income Taxes |
$ |
- |
|
|
$ |
- |
|
Sigma Labs (NASDAQ:SGLB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sigma Labs (NASDAQ:SGLB)
Historical Stock Chart
From Sep 2023 to Sep 2024