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Sigma Labs Announces Third Quarter Financial Results

SANTA FE, N.M., Nov. 10, 2015 (GLOBE NEWSWIRE) -- Sigma Labs, Inc. (OTCQB:SGLB) ("Sigma Labs" or the "Company"), a developer of advanced, in process, non-destructive quality inspection systems for metal-based additive manufacturing ("AM") and other advanced manufacturing technologies, today announced financial results for the three and nine months ended September 30, 2015.

Recent Highlights

  • Posted revenue of approximately $0.3 million for the quarter and $0.6 million for the first nine months of 2015, versus approximately $0.1 million and $0.3 million for the same periods, respectively, in 2014
  • Launched new business development initiatives to drive higher customer adoption – Sigma Labs' OEM Partner Program and Early Adopter Program (EAP). Each makes it easier for potential clients to install and evaluate Sigma Labs' proprietary PrintRite3D® software applications. Spartacus3D of France signed as the first EAP participant
  • Announced the commercial availability of PrintRite3D® CONTOUR™ (formerly known as PrintRite3D® DEFORM™) and provided to initial customer Honeywell Aerospace under contract
  • Signed an agreement with Additive Industries of the Netherlands for further evaluation of Sigma Labs' PrintRite3D® products. The applications will be integrated into an Additive Industries' MetalFAB1 prototype machine; this contract builds on the previously-announced Technology Cooperation Agreement with Additive Industries signed in December, 2014
  • Contract manufacturing and prototyping business continued to expand as AM machine capacity fills
  • Hosted the Fall Meeting of Edison Welding Institute's (EWI) Additive Manufacturing Consortium October 28-29, 2015 to demonstrate the Company's technology and manufacturing capabilities

"Sigma Labs showed great progress this quarter both in terms of revenue growth and setting the stage for improved performance going forward," said Mark Cola, President and CEO of Sigma Labs. "We launched two new sales initiatives – the OEM Partner Program and Early Adopter Program – to make it easier and more attractive for potential customers to try our software applications and evaluate them in real-world environments. The programs have gotten off to a great start, and we are in discussion with a number of companies across the globe to embed our software packages into their machines or have them assessed in specific industrial processes. Overall we're very pleased with the market reaction and look forward to exhibiting our products at the formnext show in Frankfurt this month.

"We also recently hosted the Fall Meeting of EWI's Additive Manufacturing Consortium, which served to showcase our PrintRite3D® applications and contract manufacturing capabilities to a large number of industry participants. We truly believe we're seeing increased traction within the market and expect strong top line growth heading into 2016."

2015 Third Quarter and Year-to-Date Financial Results

Revenue for the three and nine months ended September 30, 2015 was approximately $0.3 million and $0.6 million, respectively, versus approximately $0.1 million and $0.3 million for the same periods in 2014. The Company reported a net loss for the three and nine months ended September 30, 2015 of approximately $0.6 million and $1.4 million, respectively, or $(0.00) per diluted share, versus a loss of approximately $0.5 million and $2.8 million, or $(0.00) per diluted share, for the same periods in 2014. The prior-year nine month period included a nonrecurring warrant expense of approximately $1.3 million.

Investor Conference Call

The Company will host a conference call to discuss its 2015 third quarter financial results today, November 10, 2015, at 11:00 a.m. Eastern Time. To participate in the call, please dial toll free 1-888-243-4451, or 1-412-542-4135, approximately five minutes before the conference call time stated. A live webcast of the call can also be accessed on the Sigma Labs website at www.sigmalabsinc.com. A recording will be available on the Company's website upon completion of the call.

About Sigma Labs, Inc.

Sigma Labs, Inc., through its wholly-owned subsidiary B6 Sigma, Inc., develops and engineers advanced, in-process, non-destructive quality inspection systems for commercial firms worldwide seeking productive solutions for metal-based additive manufacturing or 3D printing, and other advanced manufacturing technologies. For more information please visit us at www.sigmalabsinc.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often contain words such as "expects," "anticipates," "intends," "believes" or "will." Our forward-looking statements are subject to a number of risks, uncertainties and assumptions that could adversely affect us, including the risks set forth in our most recent annual report on Form 10-K. The forward-looking statements in this press release are made only as of the date of this press release. We undertake no obligation to update our forward-looking statements, whether as a result of new information, future events or otherwise.

Sigma Labs, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
Three Months and Nine Months Ended September 30, 2015 and 2014
Three Months Ended Nine Months Ended
September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014
INCOME
Services $ 266,566 $ 92,449 $ 648,515 $ 322,091
Total Revenue 266,566 92,449 648,515 322,091
COST OF SERVICE REVENUE 25,250 36,326 138,379 176,954
GROSS PROFIT 241,316 56,123 510,136 145,137
EXPENSES
Other General and Administration 293,187 243,375 886,965 564,581
Payroll Expense 191,399 84,865 338,533 387,564
Non-cash Stock Compensation 221,500 215,550 478,500 566,950
Warrant Expense -- -- -- 1,283,333
Research and Development 122,517 52,710 206,545 147,683
Total Expenses 828,603 596,500 1,910,543 2,950,111
OTHER INCOME (EXPENSE)
Interest Income 265 939 1,137 2,721
Interest Expense -- -- -- --
Loss on Investment in Joint Venture (108) -- (108) --
Total Other Income (Expense) 157 939 1,029 2,721
INCOME (LOSS) BEFORE INCOME TAXES (587,130) (539,438) (1,399,378) (2,802,253)
Current Income Tax Expense -- -- -- --
Deferred Income Tax Expense -- -- -- --
Net Income (Loss) $ (587,130) $ (539,438) $ (1,399,378) $ (2,802,253)
Loss per Common Share - Basic and Diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted Average Number of Shares Outstanding - Basic and Diluted 623,483,422 616,610,626 622,493,895 607,463,863
Sigma Labs, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
September 30, 2015 and December 31, 2014
September 30, 2015 December 31, 2014
ASSETS
Current Assets
Cash $ 1,836,855 $ 2,962,069
Accounts Receivable, net 177,717 117,726
Inventory 111,853 56,175
Prepaid Assets 58,477 29,986
Total Current Assets 2,184,902 3,165,956
Other Assets
Property and Equipment, net 744,156 803,027
Deferred Stock Offering Costs 95,511 95,511
Intangible Assets, net 106,111 95,847
Investment in Joint Venture 9,892 --
Total Other Assets 955,670 994,385
TOTAL ASSETS $ 3,140,572 $ 4,160,341
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 82,190 $ 309,698
Customer Deposits 62,393 --
Accrued Expenses 61,676 44,652
Total Current Liabilities 206,259 354,350
TOTAL LIABILITIES 206,259 354,350
Stockholders' Equity
Preferred Stock, $0.001 par; 10,000,000 shares authorized;
None issued and outstanding -- --
Common Stock, $0.001 par; 750,000,000 shares authorized;
623,594,835 issued and 620,219,835 outstanding at September 30, 2015 and 619,741,061 issued and 612,741,061 outstanding at December 31, 2014 623,595 619,741
Additional Paid-In Capital 10,000,184 9,798,288
Less Deferred Compensation
3,375,000 and 7,000,000 common shares, respectively (422,250) (744,200)
Retained Earnings (Deficit) (7,267,216) (5,867,838)
Total Stockholders' Equity 2,934,313 3,805,991
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,140,572 $ 4,160,341

CONTACT: Investor Relations Contact: Chris Witty cwitty@darrowir.com 646-438-9385Source:Sigma Labs, Inc.