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Sigma Labs Reports First Quarter 2018 Financial Results

SANTA FE, N.M., May 15, 2018 (GLOBE NEWSWIRE) -- Sigma Labs, Inc. (NASDAQ:SGLB) (“Sigma Labs,” "we," "our" or the “Company”), a provider of quality assurance software under the PrintRite3D® brand, today announced financial results for the three months ended March 31, 2018 and provided an overview of recent accomplishments.

First Quarter 2018 and Recent Business Highlights

“In the first quarter of 2018 we raised additional capital in order to increase our working capital and technology resources to both grow the company and develop closed loop control,” commented John Rice, Chairman and Interim CEO of Sigma Labs. “We continue to upgrade our products and services while working evermore closely with select 3D metal manufacturing customers to provide on-site proof of our PrintRite3D technology’s ability and value to raise quality and economic yields in their AM metal production runs.  Our company continues the process of evolving from an R&D company culture into a technology commercialization company, as I indicated in our letter to our shareholders in January of this year. I am proud of the progress we are making so far and look forward to continuing on this sometimes twisted road to commercialization and to our goal of profitability,” Mr. Rice concluded.

First Quarter 2018 Financial Results

During the three months ended March 31, 2018, we recognized revenue of $103,415, as compared to $114,523 in revenue recognized during the same period in 2017. 

Sigma’s operating expenses for the three months ended March 31, 2018 were $1,177,130 as compared to $1,159,494 for the same period in 2017. The most significant of these operating expenses is personnel costs, specifically the payroll and stock-based compensation components of personnel costs. Personnel costs were $560,179 for the three months ended March 31, 2018 and $577,842 for the same period in 2017 or 48% and 50% of total operating expenses for the period, respectively. Total payroll costs for the first three months of 2018 were $39,554 lower than in the same period in 2017, primarily due to a $50,000 bonus payment in 2017 to our Vice President of Business Development in connection with the satisfaction of performance milestones. Stock-based compensation was $21,890 higher in the first three months of 2018 compared to the same period in 2017.

Outside Services Fees incurred in the three months ended March 31, 2018 were $319,622 compared to $364,784 incurred during the same period in 2017.  Services in connection with our obligations as an SEC reporting company, the February 2017 public offering, and in preparation of the April 2018 sale of convertible preferred stock were the major components of the fees incurred in both periods. The net decrease in these fees in 2018 results primarily from the one-time $42,000 entry fee paid to NASDAQ in connection with our being listed on the NASDAQ Capital Market in the first quarter of 2017.

Research and Development expenditures of $121,977 were incurred during the three months ended March 31, 2018 compared to $54,505 in the same period of 2017. This $67,472 increase resulted primarily from the purchase of multiple upgraded servers and various pieces of specialized equipment as part of our continued concentrated acceleration of technology development in 2018.

Sigma’s net loss for the three months ended March 31, 2018 totaled $1,170,876, as compared to $943,965 for the same period of 2017, a $226,911 increase.  The 2018 net operating loss contributed $63,684 to the overall loss increase, and other income and expenses contributed to the balance.

Investor Conference Call

Management will host a conference call on Tuesday, May 15, 2018 at 4:30pm to review financial results and corporate highlights. Following management’s formal remarks, there will be a question and answer session. To listen to the call by phone, interested parties within the U.S. should call 1-844-802-2441 and International callers should call 1-412-317-5134. All callers should ask for the Sigma Labs conference call. The conference call will also be available through a live webcast at www.sigmalabsinc.com. Details for the webcast may be found on the Company’s IR events page at:  http://client.irwebkit.com/sigmalabsinc/events.

A replay of the call will be available approximately one hour after the end of the call through June 15, 2018. The replay can be accessed via Sigma Labs' website or by dialing 877-344-7529 (domestic) or 412-317-0088 (international) or Canada Toll Free at 855-669-9658. The replay conference ID number is 10120280. The webcast replay will be available through August 15, 2018.

About Sigma Labs, Inc.
Sigma Labs, Inc. is a provider of quality assurance software under the PrintRite3D® brand and a developer of advanced, in-process, non-destructive quality assurance software for commercial firms worldwide seeking productive solutions for advanced manufacturing. For more information please visit us at 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 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 17, 2018 and which may be viewed at http://www.sec.gov.

Investor Relations Contact:
Bret Shapiro
Managing Director
CORE IR
561-479-8566
brets@coreir.com

 
Sigma Labs, Inc.
Condensed Balance Sheets
 
  March 31, 2018  December 31, 2017 
  (Unaudited)    
ASSETS        
Current Assets:        
Cash $1,347,319  $1,515,674 
Accounts Receivable, net  72,195   104,538 
Note Receivable, net  266,062   788,500 
Inventory  116,381   192,705 
Prepaid Assets  57,216   55,278 
Total Current Assets  1,859,173   2,656,695 
         
Other Assets:        
Property and Equipment, net  381,212   411,643 
Intangible Assets, net  296,880   294,396 
Investment in Joint Venture  500   500 
Prepaid Stock Compensation  50,359   31,576 
Total Other Assets  728,951   738,115 
         
TOTAL ASSETS $2,588,124  $3,394,810 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
         
Current Liabilities:        
Accounts Payable $265,814  $100,884 
Notes Payable  100,000   100,000 
Deferred Revenue  60,031   35,680 
Accrued Expenses  140,934   146,330 
Total Current Liabilities  566,779   382,894 
         
         
TOTAL LIABILITIES  566,779   382,894 
         
Commitments & Contingencies        
         
Stockholders’ Equity        
Preferred Stock, $0.001 par; 10,000,000 shares authorized; None issued and outstanding  -   - 
Common Stock, $0.001 par; 15,000,000 shares authorized; 5,002,185 and 4,978,929 issued and outstanding, respectively  5,002   4,979 
Additional Paid-In Capital  17,525,689   17,345,407 
Accumulated Deficit  (15,509,346)  (14,338,470)
Total Stockholders’ Equity  2,021,345   3,011,916 
         
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $2,588,124  $3,394,810 
 



 
Sigma Labs, Inc.
Condensed Statements of Operations
(Unaudited)
 
  Three Months Ended 
  March 31, 2018  March 31, 2017 
       
REVENUES $103,415  $114,523 
         
COST OF REVENUE  73,795   74,534 
         
GROSS PROFIT  29,620   39,989 
         
OPERATING EXPENSES:        
Salaries & Benefits  398,657   438,210 
Stock-Based Compensation  161,522   139,632 
Operating R&D Costs  121,977   54,505 
Investor & Public Relations  180,399   265,146 
Legal & Professional Service Fees  138,423   99,638 
Office Expenses  95,106   84,205 
Depreciation & Amortization  47,321   46,148 
Other Operating Expenses  33,725   32,010 
Total Operating Expenses  1,177,130   1,159,494 
         
INCOME FROM OPERATIONS  (1,147,510  (1,119,505
         
OTHER INCOME (EXPENSE)        
Interest Income  13,167   343 
State Incentives  -   152,068 
Change in fair value of derivative liabilities  -   93,206 
Interest Expense  -   (49,316)
Debt discount amortization  -   (56,441)
Loss on Disposal of Assets  (36,733)  - 
Total Other Income (Expense)  (23,366)  139,860 
         
LOSS BEFORE PROVISION FOR INCOME TAXES  (1,170,876)  (979,645)
         
Provision for Income Taxes  -   - 
         
Net Loss $(1,170,876) $(979,645)
         
Net Loss per Common Share - Basic and Diluted $(0.23) $(0.26)
         
Weighted Average Number of Shares Outstanding - Basic and Diluted  4,997,534   3,835,875 
 



 
Sigma Labs, Inc.
Condensed Statements of Cash Flows
(Unaudited)
 
  Three Months Ended 
  March 31, 2018  March 31, 2017 
OPERATING ACTIVITIES        
Net Loss $(1,170,876) $(979,645)
Adjustments to reconcile Net Loss to Net Cash used in operating activities:        
Noncash Expenses:        
Depreciation and Amortization  47,320   46,149 
Stock Based Compensation  161,522   140,671 
Loss on Write-off of Asset  36,733   - 
Gain/Loss on Change in Derivative Balance  -   (93,206)
Original Issue Discount Amortization  -   24,658 
Debt Discount Amortization  -   56,441 
Change in assets and liabilities:        
Accounts Receivable  32,343   130,882 
Interest Receivable  22,438   - 
Inventory  76,324   (13,732)
Prepaid Assets  (1,938)  7,039 
Accounts Payable  164,930   167,845 
Deferred Revenue  24,351   35,680 
Accrued Expenses  (5,396)  36,665 
NET CASH USED IN OPERATING ACTIVITIES  (612,249)  (440,553)
         
INVESTING ACTIVITIES        
Purchase of Property and Equipment  (16,565)  (33,000)
Purchase of Intangible Assets  (39,542)  (17,441)
Advance of Funds for Note Receivable      (500,000)
Proceeds from Note Receivable and Related Accrued Interest  500,000   - 
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES  443,894   (550,441)
         
FINANCING ACTIVITIES        
Gross Proceeds from issuance of Common Stock and Warrants  -   5,823,300 
Offering Costs Paid  -   (597,651)
NET CASH PROVIDED BY FINANCING ACTIVITIES  -   5,225,649 
         
NET CHANGE IN CASH FOR PERIOD  (168,355)  4,234,655 
         
CASH AT BEGINNING OF PERIOD  1,515,674   398,391 
         
CASH AT END OF PERIOD $1,347,319  $4,633,046 
         
Supplemental Disclosures:        
Other noncash operating activities disclosure:        
Issuance of Common Stock for services $40,000  $51,408 
Disclosure of cash paid for:        
Interest $-  $20,114 
Income Taxes $-  $- 

 

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