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SANTA FE, N.M., Aug. 14, 2019 (GLOBE NEWSWIRE) -- Sigma Labs, Inc. (NASDAQ: SGLB) (“Sigma Labs”), a leading provider of quality assurance software to the commercial 3D printing industry, reported its financial and operational results for the second quarter ended June 30, 2019.
Key Second Quarter 2019 and Subsequent Highlights
“The second quarter of 2019 was highlighted by sustained commercialization efforts, as we continue to make meaningful progress towards integrating our proven quality assurance technology into innovative new applications in the multi-billion-dollar industrial 3D printing market,” said John Rice, Chief Executive Officer of Sigma Labs.
“Our focus remains on four key areas:
“Our core software product, proven out and vetted through case studies with DARPA and Honeywell Aerospace, addresses significant unmet market challenges facing the 3D metal printing industry. I believe we are on the cusp of realizing key operational milestones that position us for a memorable year and look forward to creating long-term value for our shareholders as we continue our steady pace of operational execution.
“Given the recent momentum, new CFO appointment, and to increase our transparency with the investor community, we will be returning to a regular cadence of quarterly conference calls commencing with third quarter of 2019 financial results in early November. We look forward to sharing more on our developing story at upcoming industry conferences in Austin, Texas and Frankfurt, Germany and soon to be announced investor conferences in 2019,” concluded Rice.
Second Quarter 2019 Financial Results
Revenue for the second quarter of 2019 decreased 66% to $33,582, as compared to $98,663 in the second quarter of 2018. This decrease is primarily attributable to the 100% dedication of our printer to Internal R&D in the second quarter of 2019 as we accelerated development of the Inspect product, as well as an overall decline in AM revenue.
Gross profit in the second quarter of 2019 decreased to negative $27,043, as compared to $30,095, or 30.5% of revenues, in the second quarter of 2018. The decrease in our gross margin is primarily attributable to the additional travel and labor costs associated with the on-site and remote collaboration involved in initiation of the company’s Rapid Test and Evaluation programs.
Total operating expenses were $1.6 million in the second quarter of 2019, as compared to $1.4 million in the second quarter of 2018.
Net loss in the second quarter of 2019 totaled $1.6 million, or $(0.15) per share, compared to a net loss of $1.4 million, or $(0.25) per share, in the second quarter of 2018.
Cash totaled $0.7 million at June 30, 2019, as compared to $1.9 million at March 31, 2019. Subsequent to the closing of the second quarter of 2019, Sigma Labs completed a $2.3 million public offering of common stock.
About Sigma Labs
Sigma Labs, Inc. (NASDAQ: SGLB) is a leading provider of quality assurance software to the commercial 3D printing industry under the PrintRite3D® brand. Founded in 2010, Sigma is a software company that specializes in the development and commercialization of real-time computer aided inspection (CAI) solutions known as PrintRite3D® for 3D advanced manufacturing technologies. Sigma Labs’ advanced computer-aided software product revolutionizes commercial additive manufacturing, enabling non-destructive quality assurance mid-production, uniquely allowing errors to be corrected in real-time. For more information, please visit www.sigmalabsinc.com.
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 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 1, 2019 and which may be viewed at http://www.sec.gov.
Sigma Labs, Inc.
Condensed Balance Sheets
|June 30, 2019||December 31, 2018|
|Accounts Receivable, net||37,982||38,800|
|Note Receivable, net||79,875||121,913|
|Total Current Assets||1,453,391||1,747,836|
|Property and Equipment, net||205,538||277,944|
|Intangible Assets, net||510,718||404,978|
|Investment in Joint Venture||500||500|
|Total Other Assets||716,756||683,422|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Total Current Liabilities||767,982||695,819|
|Commitments & Contingencies|
|Preferred Stock, $0.001 par; 10,000,000 shares authorized; None issued and outstanding, respectively||-||-|
|Common Stock, $0.001 par; 22,500,000 shares authorized; 10,937,590, and 8,776,629 issued and outstanding, respectively||10,938||8,777|
|Additional Paid-In Capital||24,243,575||21,501,407|
|Total Stockholders’ Equity||1,402,165||1,735,439|
|TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY||$||2,170,147||$||2,431,258|
Sigma Labs, Inc.
Condensed Statements of Operations
Three Months Ended
Six Months Ended
|COST OF REVENUE||60,625||68,568||157,180||142,363|
|Salaries & Benefits||581,356||426,049||1,093,916||824,706|
|Operating R&D Costs||118,845||95,045||264,117||217,022|
|Investor & Public Relations||157,318||103,197||315,107||283,596|
|Legal & Professional Service Fees||218,919||177,929||403,489||316,352|
|Depreciation & Amortization||49,203||48,253||97,586||95,574|
|Other Operating Expenses||38,994||38,035||77,203||71,760|
|Total Operating Expenses||1,569,064||1,422,511||3,076,162||2,599,641|
|LOSS FROM OPERATIONS||(1,596,107||)||(1,392,416||)||(3,135,310||)||(2,539,926||)|
|OTHER INCOME (EXPENSE)|
|Exchange Rate Gain (Loss)||(2,264||)||1,304||(2,710||)||1,304|
|Loss on Disposal of Assets||-||-||-||(36,733||)|
|Total Other Income (Expense)||2,616||3,612||57,707||(19,754||)|
|LOSS BEFORE PROVISION FOR INCOME TAXES||(1,593,491||)||(1,388,804||)||(3,077,603||)||(2,559,680||)|
|Provision for income Taxes||-||-||-||-|
|Net Loss per Common Share – Basic and Diluted||$||(0.15||)||$||(0.25||)||$||(0.31||)||$||(0.48||)|
|Weighted Average Number of Shares Outstanding – Basic and Diluted||10,777,590||5,572,015||10,063,806||5,286,362|
Sigma Labs, Inc.
Condensed Statements of Cash Flows
|Six Months Ended|
|June 30, 2019||June 30, 2018|
|Adjustments to reconcile Net Loss to Net Cash used in operating activities:|
|Depreciation and Amortization||97,586||95,574|
|Stock Based Compensation||474,150||594,915|
|Loss on Write-off of Asset||-||36,733|
|Change in assets and liabilities:|
|NET CASH USED IN OPERATING ACTIVITIES||(2,737,650||)||(1,472,519||)|
|Purchase of Property and Equipment||(23,796||)||(41,968||)|
|Purchase of Intangible Assets||(107,124||)||(60,147||)|
|Payment Received from Notes Receivable||15,000||632,197|
|NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES||(115,920||)||530,082|
|Proceeds from issuance of Series B Preferred & Warrants||-||1,000,000|
|Proceeds from issuance of Series C Preferred & Warrants||-||350,000|
|Gross Proceeds from issuance of Common Stock and Warrants||2,521,220||2,040,100|
|Less Offering Costs||(326,890||)||(443,700||)|
|Proceeds from exercise of Warrants||75,848||-|
|NET CASH PROVIDED BY FINANCING ACTIVITIES||2,270,178||2,946,400|
|NET CHANGE IN CASH FOR PERIOD||(583,392||)||2,003,963|
|CASH AT BEGINNING OF PERIOD||1,279,782||1,515,674|
|CASH AT END OF PERIOD||$||696,390||$||3,519,637|
|Noncash investing and financing activities disclosure:|
|Conversion of Convertible Debt for Stock||$||-||(50,000||)|
|Other noncash operating activities disclosure:|
|Issuance of Common Stock for services||$||153,000||$||256,264|
|Disclosure of cash paid for:|