Sigma Labs Reports Second Quarter 2019 Financial Results
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Sigma Labs Reports Second Quarter 2019 Financial Results

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

Management Commentary

“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:

  1. Product Development: Making our proprietary PrintRite3D software increasingly simple to use for our customers and integrating it into exciting new end-user applications, as demonstrated with our version 5.0 which integrated an improved user interface as well as other exciting new capabilities, transforming it into a readily usable software product.
  2. Securing New Evaluation Programs: As with our recently announced Airbus partnership to evaluate our PrintRite3D version 5.0 software for a broader rollout, we continue to seek placements with top-tier manufacturers, allowing them to ‘test drive’ our software, demonstrating the clear value and making a wider-scale purchase more likely.
  3. Negotiating OEM Transactions: As part of our broader vision for the company, our goal is to have PrintRite3D deployed into the marketplace directly from the factory, coming pre-installed on new machines. We will continue to make a strong push at all the original equipment manufacturers to establish long-term OEM partner agreements to integrate PrintRite3D into their machines, adding value both for Sigma Labs shareholders and their end-customers who will experience better overall manufacturing quality.
  4. Preserving Shareholder Value: We recently announced the completion of a $2.3 million public offering of common stock, which fortifies our balance sheet and, through our capital-light operating model and disciplined approach to capital allocation, brings Sigma Labs much closer to a profitable entity. We seek to minimize dilution wherever possible and constantly seek out new ways to build long-term value for our shareholders.             

“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

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 1, 2019 and which may be viewed at

Investor Contact:
Chris Tyson
Managing Director
MZ Group - MZ North America

Sigma Labs, Inc.
Condensed Balance Sheets

 June 30, 2019  December 31, 2018 
Current Assets:       
Cash$696,390  $1,279,782 
Accounts Receivable, net 37,982   38,800 
Note Receivable, net 79,875   121,913 
Inventory 570,426   240,086 
Prepaid Assets 68,718   67,255 
Total Current Assets 1,453,391   1,747,836 
Other Assets:       
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 
TOTAL ASSETS$2,170,147  $2,431,258 
Current Liabilities:       
Accounts Payable$368,055  $217,488 
Notes Payable 50,000   50,000 
Deferred Revenue 78,773   51,498 
Accrued Expenses 271,154   376,833 
Total Current Liabilities 767,982   695,819 
TOTAL LIABILITIES 767,982   695,819 
Commitments & Contingencies       
Stockholders’ Equity       
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 
Accumulated Deficit (22,852,348)  (19,774,745)
Total Stockholders’ Equity 1,402,165   1,735,439 

Sigma Labs, Inc.
Condensed Statements of Operations

 Three Months Ended
June 30,
  Six Months Ended
June 30,
 2019  2018  2019  2018 
REVENUES$33,582  $98,663  $98,032  $202,078 
COST OF REVENUE 60,625   68,568   157,180   142,363 
GROSS PROFIT (27,043)  30,095   (59,148)  59,715 
OPERATING EXPENSES:               
Salaries & Benefits 581,356   426,049   1,093,916   824,706 
Stock-Based Compensation 220,360   423,067   474,566   584,589 
Operating R&D Costs 118,845   95,045   264,117   217,022 
Investor & Public Relations 157,318   103,197   315,107   283,596 
Legal & Professional Service Fees 218,919   177,929   403,489   316,352 
Office Expenses 184,068   110,936   350,178   206,042 
Depreciation & Amortization 49,203   48,253   97,586   95,574 
Other Operating Expenses 38,994   38,035   77,203   71,760 
Total Operating Expenses 1,569,064   1,422,511   3,076,162   2,599,641 
LOSS FROM OPERATIONS (1,596,107)  (1,392,416)  (3,135,310)  (2,539,926)
OTHER INCOME (EXPENSE)               
Interest Income 7,016   3,719   12,798   17,086 
State Incentives -   -   51,877   - 
Exchange Rate Gain (Loss) (2,264)  1,304   (2,710)  1,304 
Interest Expense (2,136)  (1,411)  (4,258)  (1,411)
Loss on Disposal of Assets -   -   -   (36,733)
Total Other Income (Expense) 2,616   3,612   57,707   (19,754)
LOSS BEFORE PROVISION FOR INCOME TAXES (1,593,491)  (1,388,804)  (3,077,603)  (2,559,680)
Provision for income Taxes -   -   -   - 
Net Loss$(1,593,491) $(1,388,804) $(3,077,603) $(2,559,680)
Net Loss per Common Share – Basic and Diluted$(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 
Net Loss$(3,077,603) $(2,559,680)
Adjustments to reconcile Net Loss to Net Cash used in operating activities:       
Noncash Expenses:       
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:       
Accounts Receivable 818   41,028 
Interest Receivable 27,038   38,139 
Inventory (330,340)  47,100 
Prepaid Assets (1,463)  (9,613)
Accounts Payable 150,567   187,495 
Deferred Revenue 27,275   34,026 
Accrued Expenses (105,678)  21,764 
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 
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 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  $3,519,637 
Supplemental Disclosures:       
Noncash investing and financing activities disclosure:       
Conversion of Convertible Debt for Stock$-   (50,000)
Other noncash operating activities disclosure:       
Issuance of Common Stock for services$153,000  $256,264 
Disclosure of cash paid for:       
Interest$2,514  $8,761 
Income Taxes$-  $- 

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