Conference Call to Be Held Friday, November
16, 2018 at 8:30am 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
and nine months ended September 30, 2018 and provided an overview
of recent accomplishments.
Third Quarter 2018 and Recent Business
Highlights
- October 2018 – Sigma was awarded a Test and Evaluation program
contract with a leading provider of integrated oilfield products,
services and digital solutions for its new PrintRite3D® version 4.0
hardware and software.
- October 2018 – Announced the launch of PrintRite3Dâ 4.0
product suite at a leading trade fair for additive
manufacturing.
- September 2018 – Announced that Darren Beckett and Dr. Martin
Piltch will both step in and assume the responsibilities of
retiring CTO and Founder Mark Cola.
- September 2018 – Sigma was notified by NASDAQ that they are
again in compliance with NASDAQ’s listing rule sustaining the
closing bid price of Sigma’s common stock at or above $1.00 per
share.
- August 2018 – Sigma was awarded a contract for its PrintRite3D®
hardware, software and engineering services by a federally funded
organization involved in the space industry.
- June 2018 – Announced the closing of a public offering for
gross proceeds of $2,390,000.
“Our company continues to execute on our
commercialization efforts. Since I became CEO, we have
focused on installations of PrintRite 3Dâ systems with companies
now making or buying production runs of 3D metal parts and who are
unhappy with their quality/yields,” said John Rice, Chairman and
CEO of Sigma Labs. “Sigma has begun implementing a new proof of
concept sales program that was made possible and practicable by the
attainment of a major product development milestone with the recent
launch of version 4.0 of Sigma’s PrintRite3Dâ product suite. Beta
test results have demonstrated that Sigma can now install and
commence manufacturing test-runs on many AM machines in a 24-hour
period and that a proof of concept and value analysis can be
accomplished in a matter of weeks, subject to how promptly
customers and third-party laboratories commit resources and deliver
their feedback on the results. Year-to-date, we have worked hard to
cultivate and develop a robust pipeline of new and existing
customers. As an example, during the quarter we were awarded a new
contract to provide PrintRite3D® hardware and related products and
services to a federally funded organization involved in the space
industry. Under the contract, our sensor arrays will determine and
communicate the quality of manufactured parts in real time to the
end-user. Further, we are very pleased to have just this week
announced that Sigma has entered the oil and gas industry, with a
Test and Evaluation Program Contract with a large oil and gas
company. Under the Test and Evaluation program, Sigma will provide
comprehensive PrintRite3D INSPECT® 4.0 In-Process Quality Assurance
(IPQA®) system and services—hardware, software, training,
engineering and metallurgical consulting and support services—to
demonstrate the ability to monitor and characterize material,
machine process, and production consistency and repeatability of
additive manufacturing operations. Successful completion of this
Test and Evaluation program has the potential to lead to Sigma’s
first commercial production order from a very large industry that
Sigma has not previously engaged with. If the Test and Evaluation
program is deemed successful, we have been encouraged to complete a
PrintRite3D INSPECT® In-Process Quality Assurance (IPQA®) system
performance validation across a three heterogeneous machine network
over a planned Pilot Deployment Program.”
Third Quarter 2018 Financial
Results
In the third quarter of 2018, we recognized
revenue of $128,593 compared to $78,046 during the same period of
2017, an increase of $50,547. This 64% increase quarter over
quarter resulted from increases of $69,000 in commercial sales and
$22,472 in contract AM service revenue in the third quarter of 2018
offset by a decrease in revenue from government programs of $37,903
between the two quarters.
Sigma’s total operating expenses for the third
quarter of 2018 were $1,401,087 compared to $1,095,206 for the same
period of 2017, a $305,881 increase. Our operating expenses are
comprised of internal operating and sales expenses, outside service
fees, research & development costs, and depreciation &
amortization.
Personnel costs, comprised of payroll and
stock-based compensation expense, consistently account for slightly
more than half of Sigma’s total operating costs. In the third
quarter of 2018 payroll costs were $524,508 compared to $335,495
for the same period in 2017. The $189,013 increase resulted
primarily from the strategic addition of six employees since the
third quarter of 2017, three in the third quarter of 2017 and three
in the second quarter of 2018, as we continue the concentrated
acceleration of technology development and our expansion into the
European 3D manufacturing market. Stock-based compensation for the
third quarter of 2018 was $198,578 compared to $199,225 for the
same period in 2017, a decrease of $647.
During the three months ended September 30,
2018, Sigma incurred research and development expenditures of
$139,090 compared to $68,543 in the same period of 2017. The
$70,547 increase in these expenditures resulted primarily from an
increase in software and algorithm consultant costs and an increase
in purchases of component parts, upgraded servers and specialized
equipment directly related to the development of our PrintRite 3D®
4.0 product suite being launched at the Formnext trade fair this
week.
Sigma’s total net loss for the third quarter of
2018 was $1,320,825 as compared to $1,116,910 for the third quarter
of 2017, a $203,915 increase with operating income contributing
$230,429 to the increased loss and increased other income and
expense offsetting it by $26,514.
During the nine months ended September 30, 2018,
we recognized revenue of $330,671 compared to $483,122 of revenue
recognized during the same period of 2017. The primary contributors
to the $152,450 reduction were revenue decreases of $174,726 from
government program work and $57,227 in new system sales, partially
offset by increased contract AM service sales in 2018 of
$79,503.
Sigma’s total operating expenses for the nine
months ended September 30, 2018 were $4,000,728 compared to
$3,209,923 for the same period in 2017, a $790,805 increase.
Payroll costs for the nine months ended
September 30, 2018 were $1,349,214 compared to $1,120,699 for the
same period in 2017. The $228,515 increases resulted primarily from
the foregoing addition of six employees beginning in the third
quarter of 2017. Stock-based compensation for the nine months ended
September 30, 2018 was $783,167 compared to $505,630 for the same
period in 2017. This $277,537 increase was comprised primarily from
$156,712 in vesting recognized on stock options granted to our
Chief Executive Officer in the second and third quarters of 2018
and the amortization of an additional $92,371 of stock compensation
paid to non-employee directors over the nine-month period ended
September 30, 2018.
During the nine months ended September 30, 2018,
Sigma incurred research and development expenditures of $356,112
compared to $254,956 in the same period of 2017. The $101,156
increase resulted primarily from an increase in software and
algorithm consultant costs and an increase in purchases of
component parts, upgraded servers and specialized equipment as part
of our continued concentrated acceleration of technology
development, along with the development of our PrintRite 3D® 4.0
product suite in the third quarter of 2018.
Sigma’s net loss for the nine months ended
September 30, 2018 totaled $3,880,505 as compared to $2,932,283 for
the same period of 2017, a $948,222 increase, with operating income
contributing $874,768 and other income and expense contributing
$73,454.
Liquidity and Capital
Resources
As of September 30, 2018, we had $2,228,547 in
cash and had a working capital surplus of $2,208,620, 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 to review
financial results and corporate highlights on Friday, November 16,
2018 at 8:30 am ET. Participating in the call will be John Rice,
Chairman and CEO, and Nannette Toups, CFO. Following formal remarks
there will be a Q&A 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 December
16, 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 10125911. The webcast replay will be available through February
16, 2019.
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) |
|
|
September 30,2018 |
|
|
December 31,2017 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
Cash |
$ |
2,228,547 |
|
|
$ |
1,515,674 |
|
Accounts
Receivable, net |
|
112,039 |
|
|
|
104,538 |
|
Note
Receivable |
|
120,149 |
|
|
|
788,500 |
|
Inventory |
|
236,522 |
|
|
|
192,705 |
|
Prepaid
Assets |
|
80,764 |
|
|
|
55,278 |
|
Total Current
Assets |
|
2,778,021 |
|
|
|
2,656,695 |
|
|
|
|
|
|
|
|
|
Other
Assets: |
|
|
|
|
|
|
|
Property
and Equipment, net |
|
301,640 |
|
|
|
411,643 |
|
Intangible Assets, net |
|
363,842 |
|
|
|
294,396 |
|
Investment in Joint Venture |
|
500 |
|
|
|
500 |
|
Prepaid
Stock Compensation |
|
64,066 |
|
|
|
31,576 |
|
Total Other
Assets |
|
730,048 |
|
|
|
738,115 |
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
$ |
3,508,069 |
|
|
$ |
3,394,810 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts
Payable |
$ |
270,404 |
|
|
$ |
100,884 |
|
Preferred
Dividends Payable |
|
7,639 |
|
|
|
- |
|
Notes
Payable |
|
50,000 |
|
|
|
100,000 |
|
Deferred
Revenue |
|
54,230 |
|
|
|
35,680 |
|
Accrued
Expenses |
|
187,128 |
|
|
|
146,330 |
|
Total Current
Liabilities |
|
569,401 |
|
|
|
382,894 |
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES |
|
569,401 |
|
|
|
382,894 |
|
|
|
|
|
|
|
|
|
Commitments & Contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
Preferred Stock, $0.001 par; 10,000,000 shares authorized; 250 and
0 shares issued and outstanding, respectively |
|
- |
|
|
|
- |
|
Common Stock, $0.001 par; 22,500,000 shares authorized; 8,348,729
and 4,978,929 issued and outstanding, respectively |
|
8,349 |
|
|
|
4,979 |
|
Additional Paid-In Capital |
|
21,011,406 |
|
|
|
17,192,394 |
|
Accumulated Deficit |
|
(18,081,087 |
) |
|
|
(14,185,457 |
) |
Total
Stockholders’ Equity |
|
2,938,668 |
|
|
|
3,011,916 |
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
3,508,069 |
|
|
$ |
3,394,810 |
|
|
|
|
|
|
|
|
|
|
Sigma Labs, Inc. |
Condensed Statements of
Operations |
(Unaudited) |
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
$ |
128,593 |
|
|
$ |
78,046 |
|
|
$ |
330,671 |
|
|
$ |
483,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE |
|
56,309 |
|
|
|
81,214 |
|
|
|
198,672 |
|
|
|
267,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT |
|
72,284 |
|
|
|
(3,168 |
) |
|
|
131,999 |
|
|
|
215,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
& Benefits |
|
524,508 |
|
|
|
335,495 |
|
|
|
1,349,214 |
|
|
|
1,120,699 |
|
Stock-Based Compensation |
|
198,578 |
|
|
|
199,225 |
|
|
|
783,167 |
|
|
|
505,630 |
|
Operating
R&D Costs |
|
139,090 |
|
|
|
68,543 |
|
|
|
356,112 |
|
|
|
254,956 |
|
Investor
& Public Relations |
|
142,821 |
|
|
|
118,586 |
|
|
|
426,417 |
|
|
|
362,499 |
|
Legal
& Professional Service Fees |
|
185,676 |
|
|
|
209,563 |
|
|
|
502,028 |
|
|
|
499,057 |
|
Office
Expenses |
|
131,629 |
|
|
|
78,044 |
|
|
|
337,671 |
|
|
|
226,988 |
|
Depreciation & Amortization |
|
48,013 |
|
|
|
45,502 |
|
|
|
143,587 |
|
|
|
137,153 |
|
Other
Operating Expenses |
|
30,772 |
|
|
|
40,248 |
|
|
|
102,532 |
|
|
|
102,941 |
|
Total Operating
Expenses |
|
1,401,087 |
|
|
|
1,095,206 |
|
|
|
4,000,728 |
|
|
|
3,209,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS |
|
(1,328,803 |
) |
|
|
(1,098,374 |
) |
|
|
(3,868,729 |
) |
|
|
(2,993,961 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Income |
|
9,862 |
|
|
|
13,675 |
|
|
|
26,948 |
|
|
|
26,616 |
|
State
Incentives |
|
- |
|
|
|
2,500 |
|
|
|
- |
|
|
|
154,568 |
|
Change in
fair value of derivative liabilities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
93,206 |
|
Exchange
Rate Gain (Loss) |
|
(606 |
) |
|
|
- |
|
|
|
697 |
|
|
|
- |
|
Interest
Expense |
|
(1,278 |
) |
|
|
(50,411 |
) |
|
|
(2,688 |
) |
|
|
(149,589 |
) |
Loss on
Disposal of Assets |
|
- |
|
|
|
15,700 |
|
|
|
(36,733 |
) |
|
|
(6,682 |
) |
Debt
discount amortization |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
(56,441 |
) |
Total Other
Income (Expense) |
|
7,978 |
|
|
|
(18,536 |
) |
|
|
(11,776 |
) |
|
|
61,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE
PROVISION FOR INCOME TAXES |
|
(1,320,825 |
) |
|
|
(1,116,910 |
) |
|
|
(3,880,505 |
) |
|
|
(2,932,283 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income Taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
$ |
(1,320,825 |
) |
|
$ |
(1,116,910 |
) |
|
$ |
(3,880,505 |
) |
|
$ |
(2,932,283 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss per
Common Share – Basic and Diluted |
$ |
(0.16 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.62 |
) |
|
$ |
(0.68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Number of Shares Outstanding – Basic and
Diluted |
|
8,281,338 |
|
|
|
4,574,460 |
|
|
|
6,295,658 |
|
|
|
4,330,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sigma Labs, Inc. |
Condensed Statements of Cash
Flows |
(Unaudited) |
|
|
Nine months Ended |
|
|
September 30,2018 |
|
|
September 30,2017 |
|
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
Net
Loss |
$ |
(3,880,505 |
) |
|
$ |
(2,932,283 |
) |
Adjustments to
reconcile Net Loss to Net Cash used in operating
activities: |
|
|
|
|
|
|
|
Noncash
Expenses: |
|
|
|
|
|
|
|
Depreciation and Amortization |
|
143,587 |
|
|
|
137,154 |
|
Stock
Based Compensation |
|
793,492 |
|
|
|
506,994 |
|
Loss on
Write-off of Asset |
|
36,733 |
|
|
|
- |
|
(Gain) on
Change in Derivative Balance |
|
- |
|
|
|
(93,206 |
) |
Original
Issue Discount Amortization |
|
- |
|
|
|
74,794 |
|
Debt
Discount Amortization |
|
- |
|
|
|
56,441 |
|
Change in
assets and liabilities: |
|
|
|
|
|
|
|
Accounts
Receivable |
|
(7,501 |
) |
|
|
182,511 |
|
Interest
Receivable |
|
36,154 |
|
|
|
- |
|
Inventory |
|
(21,280 |
) |
|
|
(1,666 |
) |
Prepaid
Assets |
|
(25,486 |
) |
|
|
(13,840 |
) |
Accounts
Payable |
|
169,520 |
|
|
|
2,572 |
|
Deferred
Revenue |
|
18,550 |
|
|
|
35,680 |
|
Accrued
Expenses |
|
40,797 |
|
|
|
94,455 |
|
NET CASH USED
IN OPERATING ACTIVITIES |
|
(2,695,939 |
) |
|
|
(1,950,394 |
) |
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
Purchase of Property
and Equipment |
|
(55,147 |
) |
|
|
(16,381 |
) |
Purchase of Intangible
Assets |
|
(107,152 |
) |
|
|
(37,498 |
) |
Advance of Funds for
Note Receivable |
|
- |
|
|
|
(775,267 |
) |
Payment received from
Note Receivable |
|
632,197 |
|
|
|
- |
|
NET CASH
PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
469,898 |
|
|
|
(829,146 |
) |
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
Proceeds from issuance
of Series B Convertible Preferred Stock & Warrants |
|
1,000,000 |
|
|
|
- |
|
Proceeds from issuance
of Series C Convertible Preferred Stock & 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 |
) |
Dividend on
Preferred |
|
(7,486 |
) |
|
|
- |
|
NET CASH
PROVIDED BY FINANCING ACTIVITIES |
|
2,938,914 |
|
|
|
5,072,636 |
|
|
|
|
|
|
|
|
|
NET CHANGE IN
CASH FOR PERIOD |
|
712,873 |
|
|
|
2,293,096 |
|
|
|
|
|
|
|
|
|
CASH AT
BEGINNING OF PERIOD |
|
1,515,674 |
|
|
|
398,391 |
|
|
|
|
|
|
|
|
|
CASH AT END OF
PERIOD |
$ |
2,228,547 |
|
|
$ |
2,691,487 |
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures: |
|
|
|
|
|
|
|
Noncash
investing & financing activities disclosure: |
|
|
|
|
|
|
|
Conversion of
Convertible Debt for Stock |
$ |
(50,000 |
) |
|
$ |
- |
|
Common Stock
issued for Conversion of Series B Preferred |
$ |
1,100 |
|
|
|
- |
|
Common Stock
issued for Cashless Exchange of Warrants |
$ |
5 |
|
|
$ |
- |
|
Disclosure of
cash paid for: |
|
|
|
|
|
|
|
Interest |
$ |
12,205 |
|
|
$ |
50,418 |
|
Income Taxes |
$ |
- |
|
|
$ |
- |
|
Sigma Labs (NASDAQ:SGLB)
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From Mar 2024 to Apr 2024
Sigma Labs (NASDAQ:SGLB)
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From Apr 2023 to Apr 2024