Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Sigma Additive Solutions Reports Third Quarter 2023 Financial Results By: ACCESSWIRE November 13, 2023 at 16:01 PM EST SANTA FE, NM / ACCESSWIRE / 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 TysonExecutive Vice PresidentMZ Group - MZ North America949-491-8235SASI@mzgroup.uswww.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 EndedSeptember 30, Nine Months EndedSeptember 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 Stock Based Compensation 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 $ - $ - SOURCE: Sigma Additive Solutions View source version on accesswire.com: https://www.accesswire.com/802803/sigma-additive-solutions-reports-third-quarter-2023-financial-results Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Sigma Additive Solutions Reports Third Quarter 2023 Financial Results By: ACCESSWIRE November 13, 2023 at 16:01 PM EST SANTA FE, NM / ACCESSWIRE / 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 TysonExecutive Vice PresidentMZ Group - MZ North America949-491-8235SASI@mzgroup.uswww.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 EndedSeptember 30, Nine Months EndedSeptember 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 Stock Based Compensation 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 $ - $ - SOURCE: Sigma Additive Solutions View source version on accesswire.com: https://www.accesswire.com/802803/sigma-additive-solutions-reports-third-quarter-2023-financial-results
SANTA FE, NM / ACCESSWIRE / 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 TysonExecutive Vice PresidentMZ Group - MZ North America949-491-8235SASI@mzgroup.uswww.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 EndedSeptember 30, Nine Months EndedSeptember 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 Stock Based Compensation 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 $ - $ - SOURCE: Sigma Additive Solutions View source version on accesswire.com: https://www.accesswire.com/802803/sigma-additive-solutions-reports-third-quarter-2023-financial-results
