SANTA FE, NM / ACCESSWIRE / 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.
