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Sigma Labs Reports Second Quarter 2021 Financial Results

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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
SGLB@mzgroup.us
www.mzgroup.us

Company Contact:

Steven Gersten
Sigma Internal IR
813-334-9745
investors@sigmalabsinc.com

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.



View source version on accesswire.com:
https://www.accesswire.com/656686/Sigma-Labs-Reports-Second-Quarter-2021-Financial-Results