Sigma Additive Solutions Reports Second Quarter 2023 Financial Results


SANTA FE, NM – August 14, 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 operating results for the quarter ended June 30, 2023.


Second 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 material developments related to strategic alternatives will be publicly communicated to shareholders.


Management Commentary


Jacob Brunsberg, President and Chief Executive Officer of Sigma, stated, “During the second quarter we continued our progress reducing expenses and cash burn while working with Lake Street Capital Markets and advisors on the exploration of a variety of strategic alternatives.


“We expect our expenses to continue to decrease into the third quarter. In our Current Report on Form 8-K filed with the SEC on July 20, 2023, we reported that we had received four written, non-binding proposals to purchase assets or acquire the company in a merger or reverse merger and were in talks regarding the respective proposals, as well as possible alternative transactions with other parties that expressed interest in a possible transaction as we worked to formally close our strategic transaction process. We also reported that we had reduced our headcount to a core team we felt important to a possible sale of the company or all or a portion of its assets and support of current customers and had discontinued our product development activities and ceased to pursue new customers.


“Since July 20, 2023, we have received additional written, non-binding proposals as well as revised previous proposals to purchase certain assets of the Company and/or acquire the Company in a merger or reverse merger. Although we have not yet entered into any definitive agreements, we are continuing to work towards such definitive agreements with interested parties. We look forward to providing additional updates in the weeks to come,” concluded Brunsberg.


Second Quarter 2023 Financial Results


Revenue for the second quarter of 2023 totaled $97,043 compared to revenues of $236,660 for the second quarter of 2022. The decrease was primarily due to decreased PrintRite3D sales, decreased subscription-based revenue, and decreased annual maintenance contract revenue.


Gross profit for the second quarter of 2023 was $60,552 as compared to $43,585 in the second quarter of 2022. Gross margin for the second quarter of 2023 was 62% compared to gross margin of 18% for the prior year quarter. The increase was primarily attributable to a lower cost of revenue due to fewer unit sales and installations in the second quarter of 2023 as compared to the second quarter of 2022.





Total operating expenses for the second quarter of 2023 were $1.4 million, compared to $2.3 million in 2022, a decrease of 40%. The decrease was primarily attributable to a decrease in salaries and benefits, office expenses, and business travel attributable to our reduced workforce.


Net loss for the second quarter of 2023 was $1.3 million, or $0.12 per share, as compared to a net loss of $2.3 million, or $0.22 per share in the second quarter of 2022.


Cash totaled $0.4 million at June 30, 2023, as compared to $2.8 million at December 31, 2022. Cash used in operating activities for the six months ended June 30, 2023 totaled $2.4 million as compared to $4.3 million in the six months ended June 30, 2022. Average monthly cash usage in the second quarter of 2023 was approximately $373,000, down from an average of $452,000 for the first quarter of 2023 and $652,000 for the fourth quarter of 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








Sigma Additive Solutions, Inc.

Condensed Balance Sheets


   June 30, 2023   December 31, 2022 
Current Assets:          
Cash  $368,443   $2,845,931 
Accounts Receivable, net   45,454    371,620 
Inventory   940,034    950,943 
Prepaid Assets   137,105    105,226 
Total Current Assets   1,491,036    4,273,720 
Other Assets:          
Property and Equipment, net   227,787    304,903 
Intangible Assets, net   1,215,411    1,125,285 
Total Other Assets   1,443,198    1,430,188 
TOTAL ASSETS  $2,934,234   $5,703,908 
Current Liabilities:          
Accounts Payable  $300,562   $277,492 
Deferred Revenue   127,188    120,073 
Accrued Expenses   115,195    231,633 
Total Current Liabilities   542,945    629,198 
TOTAL LIABILITIES   542,945    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   54,904,792    54,406,694 
Accumulated Deficit   (52,524,277)   (49,342,484)
Total Stockholders’ Equity   2,391,289    5,074,710 





Sigma Additive Solutions, Inc.

Condensed Statements of Operations




Three Months Ended

June 30,


Six Months Ended

June 30,

   2023   2022   2023   2022 
REVENUES  $97,043   $236,660   $227,202   $288,504 
COST OF REVENUE   36,491    193,075    100,155    233,166 
GROSS PROFIT   60,552    43,585    127,047    55,338 
OPERATING EXPENSES:                    
Salaries & Benefits   554,182    1,184,818    1,485,764    2,476,828 
Stock-Based Compensation   138,489    167,439    363,339    338,415 
Operations and R&D Costs   105,259    146,885    231,971    290,303 
Investor, Public Relations and Marketing   57,824    152,300    112,768    246,626 
Organization Costs   38,240    60,817    89,438    119,566 
Legal & Professional Service Fees   152,025    144,528    336,276    355,944 
Office Expenses   94,190    303,600    248,689    509,032 
Depreciation & Amortization   21,470    29,861    49,597    61,445 
Other Operating Expenses   202,892    89,177    294,873    176,964 
Total Operating Expenses   1,364,571    2,279,425    3,212,715    4,575,123 
LOSS FROM OPERATIONS   (1,304,019)   (2,235,840)   (3,085,668)   (4,519,785)
OTHER INCOME (EXPENSE)                    
Interest Income   9    1,176    17    2,747 
State Incentives   -    -    -    76,628 
Exchange Rate Gain (Loss)   (849)   (10,436)   (3,352)   (10,766)
Interest Expense   (3,235)   (2,070)   (6,471)   (3,389)
Other Income   -    -    35,680    - 
Total Other Income (Expense)   (4,075)   (11,330)   25,874    65,220 
LOSS BEFORE PROVISION FOR INCOME TAXES   (1,308,094)   (2,247,170)   (3,059,794)   (4,454,565)
Provision for income Taxes   -    -    -    - 
Net Loss  $(1,308,094)  $(2,247,170)  $(3,059,794)  $(4,454,565)
Preferred Dividends   (10,688)   (14,220)   (22,435)   (28,440)
Net Loss Applicable to Common Stockholders  $(1,318,782)  $(2,261,390)  $(3,082,229)  $(4,483,005)
Net Loss per Common Share – Basic and Diluted  $(0.12)  $(0.22)  $(0.29)  $(0.43)
Weighted Average Number of Shares Outstanding – Basic and Diluted   10,772,713    10,498,802    10,731,922    10,498,802 





Sigma Additive Solutions, Inc.

Condensed Statements of Cash Flows



   Six Months Ended 
   June 30, 2023   June 30, 2022 
Net Loss  $(3,059,794)  $(4,454,565)
Adjustments to reconcile Net Loss to Net Cash used in operating activities:          
Noncash Expenses:          
Depreciation and Amortization   49,597    61,445 
Stock Based Compensation - Employees   363,339    338,415 
Stock Based Compensation - Third Party Services   (489)   23,490 
Stock Based Compensation - Directors   13,523    43,442 
Change in assets and liabilities:          
Accounts Receivable   326,166    120,434 
Inventory   10,909    (73,586)
Prepaid Assets   (31,879)   (17,197)
Accounts Payable   23,070    33,958 
Deferred Revenue   7,115    (18,151)
Accrued Expenses   (116,438)   (372,188)
NET CASH USED IN OPERATING ACTIVITIES   (2,414,881)   (4,314,503)
Purchase of Property and Equipment   42,516    (83,848)
Purchase of Intangible Assets   (105,123)   (115,197)
NET CHANGE IN CASH FOR PERIOD   (2,477,488)   (4,513,548)
CASH AT BEGINNING OF PERIOD   2,845,931    11,447,047 
CASH AT END OF PERIOD  $368,443   $6,933,499 
Supplemental Disclosures:          
Noncash investing and financing activities disclosure:          
Preferred Stock Dividends  $22,435   $28,440 
Conversion of Preferred Shares to Common Shares  $188,830   $- 
Other noncash operating activities disclosure: