Sigma Labs Reports Second Quarter 2021 Financial Results

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.

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