Sigma Labs Announces Second Quarter Financial Results

Progress Continues Toward Technology Commercialization

SANTA FE, N.M., Aug. 14, 2014 — (PRNewswire) — Sigma Labs, Inc. (OTCQB: SGLB) ("Sigma Labs" or the "Company"), a developer of advanced, in process, non-destructive quality inspection systems for metal-based additive manufacturing and other advanced manufacturing technologies, today announced financial results for the three and six months ended June 30, 2014.

Second Quarter Highlights

Entered into a Technology Cooperation Agreement with Materialise NV of Belgium, a leader in software solutions for the 3D printing industry, to collaborate on the integration, production, and marketing of Sigma Labs' PrintRite3D® products for metal-based additive manufacturing.
The Company also signed a Trial Evaluation Agreement with Honeywell International, a U.S.-based conglomerate serving a multitude of industrial, aerospace, and defense end markets, to utilize Honeywell's Advanced Manufacturing Engineering Center as a beta test site for Sigma Labs' PrintRite3D® DEFORM™ software module.
Sigma Labs entered into a contract with Adurant Technologies, a Cloudera® and Oracle® Gold Partner, to assist the Company in formulating, designing and deploying a unified 'Big Data' methodology to support the integration of PrintRite3D® systems into manufacturing and production infrastructure systems.

"Sigma Labs continues its focus on several business development initiatives that will serve as growth catalysts for our technology going forward," said Mark Cola, President and CEO. "By entering into several important agreements this quarter, we have effectively positioned the Company for expansion within the aerospace, defense, and industrial markets. Working with Materialise to enhance their world-class manufacturing software, we can more rapidly address the needs of corporations looking to increase 3D printing-based production by ensuring accurate, high-tolerance specifications. Likewise, our beta-testing alliance with Honeywell should expedite the launch of our PrintRite3D® DEFORM™ software, while our contract with Adurant will support the integration of our technology into advanced production systems.

"In addition, we recently announced that we have ordered our first state-of-the-art 3D metal printer which, coupled with our PrintRite3D® technology, will allow us to provide high-end, precision metal parts for contract manufacturing purposes. Overall, we are on track to take Sigma Labs to the next level in its development – moving from a consulting enterprise to a trusted manufacturing partner, product designer, and software engineering firm – and we see an acceleration of top line growth in the quarters to come."

Second Quarter Results

Service revenue for the three and six months ended June 30, 2014 was approximately $0.1 million and $0.2 million, respectively, versus approximately $0.3 million and $0.5 million for the same periods in 2013. The revenue decline year-over-year primarily reflects lower consulting revenue as the Company invests in product sales and transitions from services to products.

The Company reported a net loss for three and six months ended June 30, 2014 of approximately $1.8 million and $2.3 million, respectively, or $(0.00) per diluted share, versus a loss of approximately $0.1 million and $0.3 million for the same period in 2013, or $(0.00) per diluted share. The higher loss reflects decreases in revenues and increased general and administrative expenses, payroll expenses, non-cash compensation expenses and warrant expenses.

About Sigma Labs, Inc.

Sigma Labs, Inc., through its wholly-owned subsidiary B6 Sigma, Inc., develops and engineers advanced, in-process, non-destructive quality inspection systems for commercial firms worldwide seeking productive solutions for metal-based additive manufacturing or 3D printing, and other advanced manufacturing technologies. For more information please visit us at www.sigmalabsinc.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often contain words such as "expects," "anticipates," "intends," "believes" or "will." Our forward-looking statements are subject to a number of risks, uncertainties and assumptions that could adversely affect us, including the risks set forth in our most recent annual report on Form 10-K. The forward-looking statements in this press release are made only as of the date of this press release. We undertake no obligation to update our forward-looking statements, whether as a result of new information, future events or otherwise.

Tables to Follow



Sigma Labs, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statement of Operations
Three Months and Six Months Ended June 30, 2014 and 2013

	Three Months Ended				Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013

INCOME
Services	$	114,813	$	307,985	$	229,642	$	472,249
Total Revenue		114,813		307,985		229,642		472,249

COST OF SERVICE REVENUE		84,739		149,549		140,628		236,479

GROSS PROFIT		30,074		158,436		89,014		235,770

EXPENSES
General & Administration		166,636		146,798		416,179		282,349
Payroll Expense		50,754		67,417		302,699		155,826
Non-cash Stock Compensation		326,200		66,700		351,400		116,700
Warrant Expense		1,283,333		-		1,283,333		-
Total Expenses		1,826,923		280,915		2,353,611		554,875

OTHER INCOME (EXPENSE)
Interest Income		940		1		1,782		11
Total Other Income (Expense)		940		1		1,782		11

INCOME (LOSS) BEFORE INCOME TAXES		(1,795,909)		(122,478)		(2,262,815)		(319,094)

Current Income Tax Expense		-		-		-		-

Deferred Income Tax Expense		-		-		-		-

Net Income (Loss)	$	(1,795,909)	$	(122,478)	$	(2,262,815)	$	(319,094)

Loss per Common Share - Basic and Diluted	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)

Weighted Average Number of Shares
Outstanding - Basic and Diluted		606,743,259		433,488,829		602,814,680		432,330,383



Sigma Labs, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
June 30, 2014 and December 31, 2013

	June 30, 2014		December 31, 2013
	(Unaudited)		(Audited)

ASSETS
Current Assets
Cash	$	4,321,415	$	992,448
Accounts Receivable, net		67,632		303,445
Inventory		18,463		1,167
Prepaid Assets		28,644		25,074
Total Current Assets		4,436,154		1,322,134


Other Assets
Furniture and Equipment, net		8,346		11,419
Deferred Stock Offering Costs		-		17,426
Intangible Assets, net		70,212		70,494
Total Other Assets		78,558		99,339

TOTAL ASSETS	$	4,514,712	$	1,421,473

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	37,571	$	102,625
Accrued Expenses		49,035		38,536
Total Current Liabilities		86,606		141,161

TOTAL LIABILITIES		86,606		141,161

Stockholders' Equity
Preferred Stock, $0.001 par; 10,000,000 shares authorized;
None issued and outstanding		-		-
Common Stock, $0.001 par; 750,000,000 shares authorized;
612,241,061 issued and 610,966,061
outstanding at June 30, 2014 and
559,766,061 issued and 556,816,061
outstanding at December 31, 2013		612,241		559,766
Additional Paid-In Capital		8,890,788		3,561,204
Less Deferred Compensation
1,275,000 and 2,950,000 common shares, respectively		(60,350)		(88,900)
Retained Earnings (Deficit)		(5,014,573)		(2,751,758)
Total Stockholders' Equity		4,428,106		1,280,312

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,514,712	$	1,421,473

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