Exhibit 99.1

 

 

 

Sigma Labs Reports Second Quarter 2021 Financial Results

 

Management to Host Conference Call Today at 4:30 p.m. ET

 

SANTA FE, NM – 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  $-   $-