SANTA FE, NM / ACCESSWIRE / May 15, 2023 / Sigma Additive Solutions, Inc. (NASDAQ:SASI) ("Sigma", "we," "our," or the "Company"), a leading provider of quality assurance software to the commercial 3D printing industry, has reported its financial and operational results for the first quarter ended March 31, 2023.
First Quarter 2023 Results Conference Call
Due to discussions related to the Company's ongoing consideration of a range of strategic alternatives designed to enhance shareholder value, including a possible strategic investment, acquisition, merger, business combination, or similar transaction, Sigma is not hosting its regular quarterly conference call. Future announcements related to strategic alternatives will be publicly communicated to shareholders.
With this activity continuing, in parallel, Sigma continued to progress its core business.
Key First Quarter and Subsequent 2023 Highlights and Business Update
Management Commentary
Jacob Brunsberg, President and Chief Executive Officer of Sigma, stated, "During the first quarter we continued to focus on expanding the industry partnerships that are critical to the growth of our software-only solutions, targeted for release in Q2 2023. We believe that these collaborations would unlock market potential and expand the total addressable market that could drive our company forward.
"In parallel, we continue to work with Lake Street Capital Markets on the exploration of a variety of strategic alternatives designed to enhance shareholder value, including a possible strategic investment, acquisition, merger, business combination, or similar transaction. We look forward to providing additional updates in the months to come as we seek to make progress on our evolution to a subscription pricing model and transform to software only product options," concluded Brunsberg.
First Quarter 2023 Financial Results
Revenue for the first quarter of 2023 totaled $130,159 compared to revenues of $51,844 for the first quarter of 2022. The increase was primarily due to increased PrintRite3D sales, increased subscription-based revenue, and increased annual maintenance contract revenue.
Gross profit for the first quarter of 2023 was $66,495 as compared to $11,753 in the first quarter of 2022. Gross margin for the first quarter of 2023 was 51% compared to gross margin of 23% for the prior year quarter. The gross margin increase was primarily driven by an increase in subscription and legacy Rapid Test & Evaluation ("RTE") revenue during the first quarter of 2023.
Total operating expenses for the first quarter of 2023 were $1.8 million, compared to $2.3 million in 2022, a decrease of 19%. The decrease was primarily attributable to a decrease in salaries and benefits, office expenses, and business travel.
Cash used in operating activities for the three months ended March 31, 2023 totaled $1.3 million as compared to $2.0 million in the three months ended March 31, 2022. Average monthly cash usage in the first quarter of 2023 was approximately $452,000, down from an average of $652,000 for the fourth quarter of 2022 and $717,000 for the full year of 2022.
Net loss for the first quarter of 2023 was $1.8 million, or $0.17 per share, as compared to a net loss of $2.2 million, or $0.21 per share in the first quarter of 2022.
Cash totaled $1.5 million at March 31, 2023, as compared to $2.8 million at December 31, 2022.
About Sigma Additive Solutions
Sigma Additive Solutions, Inc. is a leading provider of in-process quality assurance (IPQA™) solutions to the additive manufacturing industry. Sigma specializes in the development and commercialization of real-time monitoring and analytics known as PrintRite3D® for 3D metal and polymer advanced manufacturing technologies. PrintRite3D detects and classifies defects and anomalies real-time during the manufacturing process, enabling significant cost-savings and production efficiencies by reducing waste, increasing yield, and shortening cycle times. Sigma believes its software solutions will be a major catalyst for the acceleration and adoption of industrial 3D printing.
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, Sigma's ability to identify and successfully negotiate a strategic transaction and, failing that, to satisfy its capital needs through increasing its revenue and obtaining additional financing, the extent of the market's acceptance of PrintRite3D®, and general economic, industry or political conditions in the United States or internationally. Sigma 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 Sigma's forward-looking statements, please see disclosures contained in Sigma's public filings with the SEC, including the "Risk Factors" in Sigma's Annual Report on Form 10-K, and which may be viewed at www.sec.gov.
Sigma Additive Solutions Contact
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.mzgroup.us
Sigma Additive Solutions, Inc.
Condensed Balance Sheets
March 31, 2023 (Unaudited) | December 31, 2022 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 1,488,704 | $ | 2,845,931 | ||||
Accounts Receivable, net | 210,449 | 371,620 | ||||||
Inventory | 944,402 | 950,943 | ||||||
Prepaid Assets | 235,003 | 105,226 | ||||||
Total Current Assets | 2,878,558 | 4,273,720 | ||||||
Other Assets: | ||||||||
Property and Equipment, net | 284,193 | 304,903 | ||||||
Intangible Assets, net | 1,165,558 | 1,125,285 | ||||||
Total Other Assets | 1,449,751 | 1,430,188 | ||||||
TOTAL ASSETS | $ | 4,328,309 | $ | 5,703,908 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts Payable | $ | 400,640 | $ | 277,492 | ||||
Deferred Revenue | 153,443 | 120,073 | ||||||
Accrued Expenses | 219,126 | 231,633 | ||||||
Total Current Liabilities | 773,209 | 629,198 | ||||||
TOTAL LIABILITIES | 773,209 | 629,198 | ||||||
Commitments & Contingencies | - | - | ||||||
Stockholders' Equity | ||||||||
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 316 and 465 shares issued and outstanding, respectively | 1 | 1 | ||||||
Common Stock, $0.001 par value; 24,000,000 shares authorized; 10,772,713 and 10,498,802 shares issued and outstanding, respectively | 10,773 | 10,499 | ||||||
Additional Paid-In Capital | 54,749,821 | 54,406,694 | ||||||
Accumulated Deficit | (51,205,495 | ) | (49,342,484 | ) | ||||
Total Stockholders' Equity | 3,555,100 | 5,074,710 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 4,328,309 | $ | 5,703,908 | ||||
Sigma Additive Solutions, Inc.
Condensed Statements of Operations
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2023 | 2022 | |||||||
REVENUES | $ | 130,159 | $ | 51,844 | ||||
COST OF REVENUE | 63,664 | 40,091 | ||||||
GROSS PROFIT | 66,495 | 11,753 | ||||||
OPERATING EXPENSES: | ||||||||
Salaries & Benefits | 931,583 | 1,292,010 | ||||||
Stock-Based Compensation | 224,850 | 170,976 | ||||||
Operations and R&D Costs | 126,712 | 143,418 | ||||||
Investor, Public Relations and Marketing | 54,944 | 94,326 | ||||||
Organization Costs | 51,198 | 58,749 | ||||||
Legal & Professional Service Fees | 184,251 | 211,416 | ||||||
Office Expenses | 154,499 | 205,432 | ||||||
Depreciation & Amortization | 28,127 | 31,584 | ||||||
Other Operating Expenses | 91,980 | 87,787 | ||||||
Total Operating Expenses | 1,848,144 | 2,295,698 | ||||||
LOSS FROM OPERATIONS | (1,781,649 | ) | (2,283,945 | ) | ||||
OTHER INCOME (EXPENSE) | ||||||||
Interest Income | 8 | 1,571 | ||||||
State Incentives | - | 76,628 | ||||||
Exchange Rate Loss | (2,503 | ) | (330 | ) | ||||
Interest Expense | (3,235 | ) | (1,319 | ) | ||||
Other Income | 35,680 | - | ||||||
Total Other Income | 29,950 | 76,550 | ||||||
LOSS BEFORE PROVISION FOR INCOME TAXES | (1,751,699 | ) | (2,207,395 | ) | ||||
Provision for income Taxes | - | - | ||||||
Net Loss | $ | (1,751,699 | ) | $ | (2,207,395 | ) | ||
Preferred Dividends | (11,748 | ) | (14,220 | ) | ||||
Net Loss Applicable to Common Stockholders | $ | (1,763,447 | ) | $ | (2,221,615 | ) | ||
Net Loss per Common Share - Basic and Diluted | $ | (0.17 | ) | $ | (0.21 | ) | ||
Weighted Average Number of Shares Outstanding - Basic and Diluted | 10,690,677 | 10,498,802 | ||||||
Sigma Additive Solutions, Inc.
Condensed Statements of Cash Flows
(Unaudited)
| Three Months Ended | ||||||||
| March 31, 2023 | March 31, 2022 | |||||||
OPERATING ACTIVITIES | ||||||||
Net Loss | $ | (1,751,699 | ) | $ | (2,207,395 | ) | ||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||||||
Noncash Expenses: | ||||||||
Depreciation and Amortization | 28,127 | 31,584 | ||||||
Stock-Based Compensation - Employees | 224,850 | 170,976 | ||||||
Stock-Based Compensation - Third Party Services | (489 | ) | 11,713 | |||||
Stock-Based Compensation - Directors | 7,728 | 21,721 | ||||||
Stock-Based Compensation | - | - | ||||||
Change in Assets and Liabilities: | ||||||||
Accounts Receivable | 161,171 | 151,170 | ||||||
Inventory | 6,541 | (72,019 | ) | |||||
Prepaid Assets | (129,777 | ) | (50,996 | ) | ||||
Accounts Payable | 123,148 | 114,105 | ||||||
Deferred Revenue | 33,370 | 11,421 | ||||||
Accrued Expenses | (12,507 | ) | (209,299 | ) | ||||
NET CASH USED IN OPERATING ACTIVITIES | (1,309,537 | ) | (2,027,019 | ) | ||||
INVESTING ACTIVITIES | ||||||||
Purchase of Property and Equipment | - | (83,248 | ) | |||||
Purchase of Intangible Assets | (47,690 | ) | (58,851 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES | (47,690 | ) | (142,099 | ) | ||||
FINANCING ACTIVITIES | ||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | - | - | ||||||
NET CHANGE IN CASH FOR PERIOD | (1,357,227 | ) | (2,169,118 | ) | ||||
CASH AT BEGINNING OF PERIOD | 2,845,931 | 11,447,047 | ||||||
CASH AT END OF PERIOD | $ | 1,488,704 | $ | 9,277,929 | ||||
Supplemental Disclosures: | ||||||||
Noncash Investing and Financing Activities Disclosure: | ||||||||
Preferred Stock Dividends | $ | 11,748 | $ | 14,220 | ||||
Conversion of Preferred Shares to Common Shares | 188,830 | - | ||||||
Other Noncash Operating Activities Disclosure: | ||||||||
Issuance of Securities for services | $ | 7,239 | $ | 33,434 | ||||
Disclosure of Cash Paid for: | ||||||||
Interest | $ | 3,235 | $ | 1,319 | ||||
Income Taxes | $ | - | $ | - | ||||
| Last Trade: | US$4.15 |
| Daily Volume: | 0 |
| Market Cap: | US$3.890M |
January 16, 2024 January 03, 2024 November 13, 2023 October 13, 2023 September 07, 2023 | |
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