NTRP 8-K
NextTrip, Inc. (NTRP)
UNITED STATES
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WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
THE SECURITIES EXCHANGE ACT OF 1934
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| Item 2.02 | Results of Operations and Financial Condition. |
On October 21, 2021, Sigma Labs, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the quarter ended September 30, 2021. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
The information furnished under this Item 2.02, including the accompanying Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall such information be deemed to be incorporated by reference in any previous or subsequent filing by the company under the Securities Act of 1933 or the Exchange Act, regardless of the general incorporation language of such filing, except as specifically stated in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit Number | Description | |
| 99.1 | Press Release of Sigma Labs, Inc., dated October 21, 2021 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: October 21, 2021 | SIGMA LABS, INC. | |
| By: | /s/ Mark K. Ruport | |
| Name: | Mark K. Ruport | |
| Title: | President and Chief Executive Officer | |
Exhibit 99.1
Sigma Labs Reports Third Quarter 2021 Financial Results
Management to Host Conference Call Today at 4:30 p.m. ET
SANTA FE, NM – October 21, 2021 – Sigma Labs, Inc. (NASDAQ: SGLB) (“Sigma Labs” or the “Company”), a leading developer of quality assurance software for the commercial 3D metal printing industry, has reported its financial and operational results for the third quarter ended September 30, 2021.
Key Third Quarter 2021 Highlights
| ● | Revenues increased 182% to $0.7 million in Q3 2021 as compared to the same period last year due to increased PrintRite3D® unit sales. | |
| ● | Company’s first multi-unit sale, to a U.S. Department of Energy contractor. One PrintRite3D system will support an Additive Industries MetaFAB1 quad laser printer. The second system is in support of an SLM 3D metal printer. | |
| ● | First sale to a prestigious U. S. National Laboratory for ongoing research and development in support of an EOS 3D metal printer. | |
| ● | Selected by DMG MORI (DMG MORI AKTIENGESELLSCHAFT) as the official supplier of In-process Quality Assurance (IPQA) monitoring systems for its prestigious DMG MORI Qualified Products (DMQP) program. | |
| ● | Appointed former GE additive manufacturing executive Jacob Brunsberg as Senior Vice President, strengthening in-process quality assurance product development and commercialization programs. | |
| ● | Sponsored and participated in industry conferences in the U.S. and Germany to showcase its PrintRite3D Version 7.0, an industry-leading system for in-process quality assurance for industrial 3D manufacturers including RAPID + TCT, North America’s largest and most important additive manufacturing event, AM2021: Additive Manufacturing Conference and Expo, Formnext 2021, and The International Conference on Additive Manufacturing - ASTM ICAM 2021. |
Management Commentary
“This quarter is further validation of the increasing awareness of the need for a third party in-process quality assurance (IPQA) system,” said Mark K. Ruport, President and CEO of Sigma Labs, “Revenues for the quarter were up 182% to $0.7 million on the strength of our first PrintRite3D multi-unit sale to a U.S. Department of Energy contractor as well as a single unit sale to a U.S. National Laboratory. The fact that PrintRite3D was selected by the end users to support metal printers from multiple leading 3D printer OEM’s, two of which have their own monitoring systems, further demonstrates the need for standard quality metrics across a heterogeneous set of printers.
“Our focus for the remainder of 2021 and 2022 is to continue to build out our field sales organization with sales and support engineers that have significant industry experience to support our existing partners such as DMG MORI, Additive Industries, Materialise and other industry leading companies. In addition, we are actively pursuing OEM relationships with both new printer manufacturers as well as some of the more established OEMs. We believe both initiatives will further position the company for growth as Additive Manufacturing, and more specifically, 3D metal printing, move from prototyping to full production.
Third Quarter 2021 Financial Results
Revenue for the third quarter of 2021 totaled $0.7 million compared to revenues of $0.25 million for the third quarter of 2020, an increase of 0.5 million or 182%. The increase driven by increased PrintRite3D unit sales, including the Company’s first multi-unit sale.
Gross profit for the third quarter of 2021 was $0.5 million, which resulted in a gross margin of 76% as compared to $0.2 million, or 61% in the third quarter of 2020.
Total operating expenses for the third quarter of 2021 were $3.0 million as compared to total operating expenses of $1.4 million for the same period in 2020. The increase was mainly attributable additional employee headcount, R&D expenses and organizational costs.
Cash used in operating activities for the three months ended September 30, 2021, totaled $1.5 million compared to $1.2 million in the third quarter of 2020, an increase of $0.3 million. Cash used in operating activities for the nine months ended September 30, 2021, totaled $4.8 million compared to $3.7 million in the nine months of 2020, an increase of $1.1 million.
Net loss applicable to common shareholders for the third quarter of 2021 was $2.5 million, or $(0.24) per share, as compared to a net loss of $2.0 million, or $(0.42) per share, in the third quarter of 2020.
Cash totaled $13.1 million at September 30, 2021, as compared to $3.7 million at December 31, 2020. The increase in cash during year is a result of a net of $13.3 million in cash proceeds related to public and private offerings during the year, and $1.1 million from warrant exercises.
Third Quarter 2021 Results Conference Call
Sigma Labs President and CEO Mark Ruport and CFO Frank Orzechowski will host the conference call, followed by a question-and-answer period.
To access the call, please use the following information:
| Date: | Thursday, October 21, 2021 | |
| Time: | 4:30 p.m. Eastern time, 1:30 p.m. Pacific time | |
| Toll-free dial-in number: | 1-877-407-9039 | |
| International dial-in number: | 1-201-689-8470 | |
| Conference ID: | 13724392 |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235.
The conference call will be broadcast live and available for replay at https://78449.themediaframe.com/dataconf/productusers/vvdb/mediaframe/47125/indexl.html and via the investor relations section of the Company’s website at www.sigmalabsinc.com.
A replay of the conference call will be available after 7:30 p.m. Eastern time through November 4, 2021.
| Toll-free replay number: | 1-844-512-2921 | |
| International replay number: | 1-412-317-6671 | |
| Replay ID: | 13724392 |
About Sigma Labs
Sigma Labs Inc. is a leading provider of in-process quality assurance (IPQA®) software to the additive manufacturing industry. Sigma Labs specializes in the development and commercialization of real-time monitoring solutions known as PrintRite3D for 3D metal advanced manufacturing technologies. PrintRite3D detects and classifies defects and anomalies real-time during the manufacturing process, enabling significant cost-savings and production efficiencies. Sigma Labs believes its software product will be a major catalyst for the acceleration and adoption of 3D metal printing. For more information, please visit www.sigmalabsinc.com.
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, market and other conditions, Sigma Labs’ business and financial condition, the extent of the market’s acceptance of PrintRite3D version 7.0 and of Sigma Labs’ business relationships with companies such as DMG MORI, Additive Industries and Materialise, and the Company’s ability to develop new business relationships with OEMs, the ability of 3D metal printing to move from prototyping to full production, Sigma Labs’ ability to satisfy its capital needs through increasing its revenue and obtaining additional financing, and the impact of COVID-19, general economic, industry or political conditions in the United States or internationally. 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 disclosures contained in Sigma Labs’ public filings with the SEC, including the “Risk Factors” in Sigma Labs’ Annual Report on Form 10-K, and which may be viewed at www.sec.gov.
Contacts:
Investor Contact:
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
www.mzgroup.us
Company Contact:
Steven Gersten
Sigma Internal IR
813-334-9745
Sigma Labs, Inc.
Condensed Balance Sheets
(Unaudited)
| September 30, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 13,064,394 | $ | 3,700,814 | ||||
| Accounts Receivable, net | 666,740 | 331,562 | ||||||
| Inventory | 856,547 | 659,651 | ||||||
| Prepaid Assets | 130,675 | 90,735 | ||||||
| Total Current Assets | 14,718,356 | 4,782,762 | ||||||
| Other Assets: | ||||||||
| Property and Equipment, net | 201,752 | 138,626 | ||||||
| Intangible Assets, net | 868,265 | 753,122 | ||||||
| Long-Term Prepaid Asset | - | 26,000 | ||||||
| Total Other Assets | 1,070,017 | 917,748 | ||||||
| TOTAL ASSETS | $ | 15,788,373 | $ | 5,700,510 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 223,157 | $ | 128,937 | ||||
| Deferred Revenue | 85,480 | 77,957 | ||||||
| Accrued Expenses | 432,615 | 243,815 | ||||||
| Total Current Liabilities | 741,252 | 450,709 | ||||||
| Long-Term Liabilities: | ||||||||
| Stock Appreciation Rights | 93,525 | 48,341 | ||||||
| CARES Act Deferred Payroll Tax Liability | 37,728 | 37,728 | ||||||
| Total Long-Term Liabilities | 131,253 | 86,069 | ||||||
| TOTAL LIABILITIES | 872,505 | 536,778 | ||||||
| Stockholders’ Equity | ||||||||
| Preferred Stock, $0.001 par; 10,000,000 shares authorized; 465 and 715 issued and outstanding, respectively | 1 | 1 | ||||||
| Common Stock, $0.001 par; 24,000,000 shares authorized; 10,498,802 and 5,995,320 issued and outstanding, respectively | 10,499 | 5,995 | ||||||
| Additional Paid-In Capital | 53,086,908 | 38,262,744 | ||||||
| Accumulated Deficit | (38,181,540 | ) | (33,105,008 | ) | ||||
| Total Stockholders’ Equity | 14,915,868 | 5,163,732 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 15,788,373 | $ | 5,700,510 | ||||
Sigma Labs, Inc.
Condensed Statements of Operations
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| REVENUES | $ | 700,237 | $ | 248,526 | $ | 1,302,525 | $ | 637,944 | ||||||||
| COST OF REVENUE | 164,766 | 97,785 | 409,493 | 400,172 | ||||||||||||
| GROSS PROFIT | 535,471 | 150,741 | 893,032 | 237,772 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Salaries & Benefits | 1,222,760 | 657,889 | 3,055,279 | 1,915,381 | ||||||||||||
| Stock-Based Compensation | 659,512 | 58,219 | 893,431 | 483,208 | ||||||||||||
| Operating R&D Costs | 131,772 | 79,673 | 608,812 | 245,008 | ||||||||||||
| Investor, Public Relations & Marketing | 119,622 | 66,794 | 342,725 | 353,802 | ||||||||||||
| Organization Costs | 342,112 | 173,041 | 578,256 | 328,716 | ||||||||||||
| Legal & Professional Service Fees | 261,075 | 133,273 | 681,941 | 530,660 | ||||||||||||
| Office Expenses | 172,238 | 84,357 | 472,335 | 310,947 | ||||||||||||
| Depreciation & Amortization | 27,689 | 50,167 | 76,502 | 86,150 | ||||||||||||
| Other Operating Expenses | 90,108 | 59,100 | 267,663 | 194,836 | ||||||||||||
| Total Operating Expenses | 3,026,888 | 1,362,513 | 6,976,944 | 4,448,708 | ||||||||||||
| LOSS FROM OPERATIONS | (2,491,417 | ) | (1,211,772 | ) | (6,083,912 | ) | (4,210,936 | ) | ||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest Income | 2,981 | 77 | 10,053 | 959 | ||||||||||||
| State Incentives | - | - | - | 151,657 | ||||||||||||
| Exchange Rate Gain (Loss) | (490 | ) | (252 | ) | (333 | ) | (1,674 | ) | ||||||||
| Interest Expense | (2,052 | ) | (6,066 | ) | (5,434 | ) | (12,741 | ) | ||||||||
| Loss on Dissolution of Joint Venture | - | - | - | (201 | ) | |||||||||||
| Other Income | - | - | 1,092,441 | 361,700 | ||||||||||||
| Total Other Income (Expense) | 439 | (6,241 | ) | 1,096,727 | 499,700 | |||||||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES | (2,490,978 | ) | (1,218,013 | ) | (4,987,185 | ) | (3,711,236 | ) | ||||||||
| Provision for income Taxes | - | - | - | - | ||||||||||||
| Net Loss | $ | (2,490,978 | ) | $ | (1,218,013 | ) | $ | (4,987,185 | ) | $ | (3,711,236 | ) | ||||
| Preferred Dividends | (14,220 | ) | (737,344 | ) | (89,347 | ) | (1,744,471 | ) | ||||||||
| Net Loss Applicable to Common Stockholders | $ | (2,505,198 | ) | $ | (1,955,357 | ) | $ | (5,076,532 | ) | $ | (5,455,707 | ) | ||||
| Net Loss per Common Share – Basic and Diluted | $ | (0.24 | ) | $ | (0.42 | ) | $ | (0.53 | ) | $ | (1.74 | ) | ||||
| Weighted Average Number of Shares Outstanding – Basic and Diluted | 10,494,560 | 4,675,749 | 9,602,666 | 3,137,459 | ||||||||||||
Sigma Labs, Inc.
Condensed Statements of Cash Flows
(Unaudited)
| Nine Months Ended | ||||||||
| September 30, 2021 | September 30, 2020 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net Loss | $ | (4,987,185 | ) | $ | (3,711,236 | ) | ||
| Adjustments to reconcile Net Loss to Net Cash used in operating activities: | ||||||||
| Noncash Expenses: | ||||||||
| Depreciation and Amortization | 76,502 | 86,150 | ||||||
| Gain on Derivative Liability | (1,092,441 | ) | - | |||||
| Stock Based Compensation - Employees | 893,431 | 483,208 | ||||||
| Stock Based Compensation – Third Party Services | 128,809 | 113,843 | ||||||
| Stock Based Compensation - Directors | 404,580 | 131,150 | ||||||
| Change in assets and liabilities: | ||||||||
| Accounts Receivable | (335,178 | ) | (429,527 | ) | ||||
| Inventory | (196,896 | ) | 24,178 | |||||
| Prepaid Assets | (13,940 | ) | 55,669 | |||||
| Accounts Payable | 94,220 | (544,991 | ) | |||||
| Deferred Revenue | 7,523 | (46,606 | ) | |||||
| Accrued Expenses | 233,985 | 108,022 | ||||||
| Deferral of Payroll Taxes under the CARES Act | - | 53,545 | ||||||
| NET CASH USED IN OPERATING ACTIVITIES | (4,786,590 | ) | (3,676,595 | ) | ||||
| INVESTING ACTIVITIES | ||||||||
| Purchase of Property and Equipment | (116,631 | ) | (88,074 | ) | ||||
| Purchase of Intangible Assets | (138,141 | ) | (161,878 | ) | ||||
| Dissolution of Joint Venture | - | 500 | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | (254,772 | ) | (249,452 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Gross Proceeds from Public and Private Issuances of Securities | 14,869,899 | 3,600,000 | ||||||
| Less Offering Costs | (1,600,967 | ) | (820,224 | ) | ||||
| Payment of Note Payable | - | (50,000 | ) | |||||
| Proceeds from Exercise of Warrants | 1,136,010 | 5,619,900 | ||||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 14,404,942 | 8,349,676 | ||||||
| NET CHANGE IN CASH FOR PERIOD | 9,363,580 | 4,423,629 | ||||||
| CASH AT BEGINNING OF PERIOD | 3,700,814 | 86,919 | ||||||
| CASH AT END OF PERIOD | $ | 13,064,394 | $ | 4,510,548 | ||||
| Supplemental Disclosures: | ||||||||
| Noncash investing and financing activities disclosure: | ||||||||
| Issuance of Common Shares for Preferred Dividends | $ | 89,347 | $ | 1,744,471 | ||||
| Issuance of Securities for Services | $ | 533,387 | $ | 244,993 | ||||
| Disclosure of cash paid for: | ||||||||
| Interest | $ | 5,434 | $ | 12,741 | ||||
| Income Taxes | $ | - | $ | - | ||||