Exhibit 99.1

 

 

 Sigma Additive Solutions Reports Third Quarter 2023 Financial Results

 

SANTA FE, NM – November 13, 2023 Sigma Additive Solutions, Inc. (NASDAQ:SASI) (“Sigma”, “we,” “our,” or the “Company”), a provider of quality assurance software to the commercial 3D printing industry, has reported its financial and operating results for the quarter ended September 30, 2023.

 

Third Quarter 2023 Results Conference Call

 

Due to the signing of a definitive agreement (the “Agreement”) for the acquisition of NextTrip Holdings, Inc., a travel technology company based in Sunrise, Florida (“NextTrip”), and the signing of a definitive asset purchase agreement (the “APA”) to sell its in-process quality assurance technology suite of assets to Divergent Technologies, Inc. (Divergent), Sigma is not hosting its regular quarterly conference call. Both agreements are progressing as planned towards closure, expected in the fourth quarter. Future material developments related to these definitive agreements will be publicly communicated to shareholders as appropriate.

 

NextTrip Transaction Highlights

 

  Signed a definitive agreement to acquire 100% of the capital stock of NextTrip Holdings in exchange for shares of Sigma common stock constituting 19.99% of its outstanding common stock plus additional contingent shares of Sigma common stock upon the achievement of post-closing milestone earnouts tied to the business performance of NextTrip.
  The acquisition is expected to be completed in the fourth quarter of 2023, subject to regulatory and shareholder approvals and other customary closing conditions.
  In connection with the transactions, Sigma is expected to change its name to NextTrip, Inc. and to be listed on Nasdaq under a new trading symbol reflecting the NextTrip name.
  Signed a definitive agreement to sell its in-process quality assurance technology suite of assets to Divergent Technologies, Inc., inventor of the Divergent Adaptive Production System and parent company of the performance automotive company CZV, Inc. (Czinger Vehicles) assets. The closing is expected to occur subsequent to the closing of the acquisition of NextTrip.
  Following the closing of the two transactions (NextTrip and Divergent), the public Company will be a pure play travel technology and booking business that specializes in using proprietary technology, analytics, and strategic partnerships to provide specialized travel solutions in leisure, wellness, and business travel.

 

Management Commentary

 

Jacob Brunsberg, President and Chief Executive Officer of Sigma, stated, “During the third quarter we announced our intention to acquire NextTrip Holdings, a travel technology company, as a way to increase shareholder value by providing a significant opportunity to participate in a leading travel brand with an array of product offerings and concierge services. In October we signed a definitive agreement for the acquisition, and we expect the transactions to be completed in the fourth quarter of 2023, subject to regulatory and shareholder approvals and other customary closing conditions.

 

 

 

 

 

 

“NextTrip is an innovative travel technology company that specializes in using proprietary technology, analytics, and strategic partnerships to provide specialized travel solutions in leisure, wellness, and business travel. We believe NextTrip’s leadership team is addressing a clear underserved demand for a differentiated and tailor-made approach in the online travel space. This transaction will allow NextTrip the ability to execute its growth plans and expand its reach into new markets for the benefit of Sigma equity holders, while tying the issuance of additional equity to clear business objectives for NextTrip.

 

“In addition, we signed a definitive agreement to sell our in-process quality assurance technology suite of assets to Divergent Technologies, a fitting home for our technology. Divergent will build on our foundational work in connection with its DAPS platform, deploying DAPS structures across the automotive, aerospace, and defense industries. The closing is expected to occur subsequent to the closing of our acquisition of NextTrip.

 

“We are incredibly proud of the opportunity to amplify the growth plans of two impressive companies with these transactions, implying a solid valuation for Sigma and good positioning in public markets for NextTrip, and adding value from the sale of Sigma’s current assets to Divergent. We look forward to additional updates in the months to come as we work to finalize the acquisition and asset sale,” concluded Brunsberg.

 

Third Quarter 2023 Financial Results

 

Revenue for the third quarter of 2023 totaled $141,988 compared to revenues of $188,245 for the third quarter of 2023. The decrease was primarily due to decreased PrintRite3D sales and decreased annual maintenance contract revenue.

 

Gross loss for the third quarter of 2023 was $(34,128) as compared to a gross profit of $108,532 in the third quarter of 2022. Gross margin for the third quarter of 2023 was (24%) compared to gross margin of 58% for the prior year quarter. The decrease was primarily attributable to a higher cost of revenue due to the cost of a new PrintRite3D unit that was sold at a discounted price in the third quarter of 2023.

 

Total operating expenses for the third quarter of 2023 were $0.9 million, compared to $2.4 million in 2022, a decrease of 64%. The decrease was primarily attributable to a decrease in salaries and benefits, stock-based compensation, operations and R&D, organization costs, office expenses, and business travel attributable to our reduced workforce.

 

Net loss for the third quarter of 2023 was $0.9 million, or ($1.57) per share, as compared to a net loss of $2.3 million, or ($4.39) per share in the third quarter of 2022.

 

Cash totaled $0.6 million at September 30, 2023, as compared to $2.8 million at December 31, 2022. Cash used in operating activities for the nine months ended September 30, 2023 totaled $2.6 million as compared to $6.4 million in the nine months ended September 30, 2022. Average monthly cash usage in the third quarter of 2023 was approximately $59,000, down from an average of $373,000 for the second quarter of 2023 and $452,000 for the first quarter of 2023.

 

 

 

 

 

 

About Sigma Additive Solutions

 

Sigma Additive Solutions, Inc. is a 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 may 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, including the certainty and timing of closing the proposed transactions. 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 successfully consummate the acquisition with NextTrip, the risk that the securities of the combined company will not be approved for listing on Nasdaq or if approved, maintain the listing ,the prospective purchase of its intellectual property assets, obtaining shareholder approval of the NextTrip transaction, and other conditions to completion of the acquisition, and completing the acquisition and any related transactions, and, failing that, to satisfy its capital needs through increasing its revenue and obtaining additional financing or implement an possible alternative strategic transaction. 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 most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, 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

SASI@mzgroup.us

www.mzgroup.us

 

 

 

 

 

 

Sigma Additive Solutions, Inc.

Condensed Balance Sheets

 

  

September 30,

2023

  

December 31,

2022

 
   (Unaudited)     
         
ASSETS          
Current Assets:          
Cash  $556,087   $2,845,931 
Accounts Receivable, net   59,000    371,620 
Inventory   775,066    950,943 
Prepaid Assets   37,833    105,226 
Total Current Assets   1,427,986    4,273,720 
           
Other Assets:          
Property and Equipment, net   161,971    304,903 
Intangible Assets, net   1,247,697    1,125,285 
Total Other Assets   1,409,668    1,430,188 
           
TOTAL ASSETS  $2,837,654   $5,703,908 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities:          
Accounts Payable  $607,212   $277,492 
Deferred Revenue   111,082    120,073 
Accrued Expenses   145,306    231,633 
Total Current Liabilities   863,600    629,198 
           
TOTAL LIABILITIES   863,600    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; 1,200,000 shares authorized; 651,536 and 524,940 shares issued and outstanding, respectively   652    525 
Additional Paid-In Capital   55,380,026    54,416,668 
Accumulated Deficit   (53,406,625)   (49,342,484)
Total Stockholders’ Equity   1,974,054    5,074,710 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $2,837,654   $5,703,908 

 

 

 

 

 

 

Sigma Additive Solutions, Inc.

Condensed Statements of Operations

(Unaudited)

 

  

Three Months Ended

September 30,

  

Nine Months Ended

September 30,

 
   2023   2022   2023   2022 
                 
REVENUES  $141,988   $188,245   $369,188   $476,749 
                     
COST OF REVENUE   176,116    79,713    276,270    312,879 
                     
GROSS PROFIT   (34,128)   108,532    92,918    163,870 
                     
OPERATING EXPENSES:                    
Salaries & Benefits   288,894    1,227,805    1,774,658    3,704,633 
Stock-Based Compensation   84,078    275,418    447,417    613,833 
Operations and R&D Costs   245    152,245    232,216    442,548 
Investor, Public Relations and Marketing   15,797    46,832    128,565    293,458 
Organization Costs   47,580    140,522    137,017    260,088 
Legal & Professional Service Fees   251,265    252,886    587,541    608,830 
Office Expenses   61,077    183,608    309,765    692,640 
Depreciation & Amortization   24,554    26,857    74,151    88,302 
Other Operating Expenses   92,709    86,783    387,582    263,747 
Total Operating Expenses   866,199    2,392,956    4,078,912    6,968,079 
                     
LOSS FROM OPERATIONS   (900,327)   (2,284,424)   (3,985,994)   (6,804,209)
                     
OTHER INCOME (EXPENSE)                    
Interest Income   -    278    17    3,025 
State Incentives   -    -    -    76,628 
Exchange Rate Gain (Loss)   (4)   (6,184)   (3,356)   (16,950)
Interest Expense   (3,235)   (1,978)   (9,706)   (5,367)
Other Income   31,905    -    67,584    - 
Total Other Income (Expense)   28,666    (7,884)   54,539    57,336 
                     
LOSS BEFORE PROVISION FOR INCOME TAXES   (871,661)   (2,292,308)   (3,931,455)   (6,746,873)
                     
Provision for income Taxes   -    -    -    - 
                     
Net Loss  $(871,661)  $(2,292,308)  $(3,931,455)  $(6,746,873)
                     
Preferred Dividends   (10,687)   (14,220)   (33,122)   (42,660)
                     
Net Loss Applicable to Common Stockholders  $(882,348)  $(2,306,528)  $(3,964,577)  $(6,789,533)
                     
Net Loss per Common Share – Basic and Diluted  $(1.57)  $(4.39)  $(7.28)  $(12.93)
                     
Weighted Average Number of Shares Outstanding – Basic and Diluted   560,310    524,940    544,587    524,940 

 

 

 

 

 

 

 

Sigma Additive Solutions, Inc.

Condensed Statements of Cash Flows

(Unaudited)

 

   Nine Months Ended 
  

September 30,

2023

  

September 30,

2022

 
OPERATING ACTIVITIES          
Net Loss  $(3,931,455)  $(6,746,873)
Adjustments to reconcile Net Loss to Net Cash used in operating activities:          
Noncash Expenses:          
Depreciation and Amortization   74,151    88,302 
Stock Based Compensation - Employees   447,417    613,833 
Stock Based Compensation - Third Party Services   (489)   24,463 
Stock Based Compensation - Directors   19,316    70,594 
Gain on Sale of Property and Equipment   (28,632)   - 
Change in assets and liabilities:          
Accounts Receivable   312,620    44,422 
Inventory   175,877    (257,352)
Prepaid Assets   67,393    (63,446)
Accounts Payable   372,236    197,105 
Deferred Revenue   (8,991)   (19,166)
Accrued Expenses   (86,327)   (338,297)
NET CASH USED IN OPERATING ACTIVITIES   (2,586,884)   (6,386,415)
           
INVESTING ACTIVITIES          
Purchase of Property and Equipment   -    (83,848)
Proceeds from Sale of Property and Equipment   78,000    - 
Purchase of Intangible Assets   (145,515)   (176,104)
NET CASH USED IN INVESTING ACTIVITIES   (67,515)   (259,952)
           
FINANCING ACTIVITIES          
Gross Proceeds from Public Issuance of Comon Stock   453,635    - 
Offering Costs   (89,080)   - 
NET CASH PROVIDED BY FINANCING ACTIVITIES   364,555    - 
           
NET CHANGE IN CASH FOR PERIOD   (2,289,844)   (6,646,367)
           
CASH AT BEGINNING OF PERIOD   2,845,931    11,447,047 
           
CASH AT END OF PERIOD  $556,087   $4,800,680 
           
Supplemental Disclosures:          
Noncash investing and financing activities disclosure:          
Preferred Stock Dividends  $33,122   $42,660 
Conversion of Preferred Shares to Common Shares  $188,830   $- 
Other noncash operating activities disclosure:          
Issuance of Securities for Services  $18,827   $95,057 
Disclosure of cash paid for:          
Interest  $9,706   $5,367 
Income Taxes  $-   $-