Sigma Additive Solutions Reports First Quarter 2023 Financial Results

Company Continues Evaluation of Strategic Alternatives Designed to Enhance Shareholder Value

Expanding Partner Collaborations Driving Momentum for Software Scale

SANTA FE, NM / ACCESSWIRE / May 15, 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 operational results for the first quarter ended March 31, 2023.

First 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 announcements related to strategic alternatives will be publicly communicated to shareholders.

With this activity continuing, in parallel, Sigma continued to progress its core business.

Key First Quarter and Subsequent 2023 Highlights and Business Update

• Expanded collaboration for connected software solutions with Materialise, a global leader in 3D printing software and service solutions, to provide additive manufacturing (AM) users automated quality control by integrating the PrintRite3D® quality assurance solution into the new software solution Materialise Process Control on their Co-AM platform.
• Expanded software into post processing with DyeMansion, the global leader in connected & integrated post-processing solutions for industrial polymer 3D-printing, to add an integrated hardware/software solution option that offers extra quality assurance for DyeMansion's post-processing solutions, expanding Sigma's quality product coverage beyond just the 3D printer space.
• Continued progress towards the launch of software only solutions to support OEM, hardware, and software partner integrations.

Management Commentary

Jacob Brunsberg, President and Chief Executive Officer of Sigma, stated, "During the first quarter we continued to focus on expanding the industry partnerships that are critical to the growth of our software-only solutions, targeted for release in Q2 2023. We believe that these collaborations would unlock market potential and expand the total addressable market that could drive our company forward.

"In parallel, we continue to work with Lake Street Capital Markets on the exploration of a variety of strategic alternatives designed to enhance shareholder value, including a possible strategic investment, acquisition, merger, business combination, or similar transaction. We look forward to providing additional updates in the months to come as we seek to make progress on our evolution to a subscription pricing model and transform to software only product options," concluded Brunsberg.

First Quarter 2023 Financial Results

Revenue for the first quarter of 2023 totaled $130,159 compared to revenues of $51,844 for the first quarter of 2022. The increase was primarily due to increased PrintRite3D sales, increased subscription-based revenue, and increased annual maintenance contract revenue.

Gross profit for the first quarter of 2023 was $66,495 as compared to $11,753 in the first quarter of 2022. Gross margin for the first quarter of 2023 was 51% compared to gross margin of 23% for the prior year quarter. The gross margin increase was primarily driven by an increase in subscription and legacy Rapid Test & Evaluation ("RTE") revenue during the first quarter of 2023.

Total operating expenses for the first quarter of 2023 were $1.8 million, compared to $2.3 million in 2022, a decrease of 19%. The decrease was primarily attributable to a decrease in salaries and benefits, office expenses, and business travel.

Cash used in operating activities for the three months ended March 31, 2023 totaled $1.3 million as compared to $2.0 million in the three months ended March 31, 2022. Average monthly cash usage in the first quarter of 2023 was approximately $452,000, down from an average of $652,000 for the fourth quarter of 2022 and $717,000 for the full year of 2022.

Net loss for the first quarter of 2023 was $1.8 million, or $0.17 per share, as compared to a net loss of $2.2 million, or $0.21 per share in the first quarter of 2022.

Cash totaled $1.5 million at March 31, 2023, as compared to $2.8 million at December 31, 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.

Sigma Additive Solutions Contact

Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
[e-mail]
www.mzgroup.us

Sigma Additive Solutions, Inc.
Condensed Balance Sheets

		March 31, 2023 (Unaudited)				December 31, 2022
ASSETS
Current Assets:
Cash		$	1,488,704			$	2,845,931
Accounts Receivable, net			210,449				371,620
Inventory			944,402				950,943
Prepaid Assets			235,003				105,226
Total Current Assets			2,878,558				4,273,720
Other Assets:
Property and Equipment, net			284,193				304,903
Intangible Assets, net			1,165,558				1,125,285
Total Other Assets			1,449,751				1,430,188
TOTAL ASSETS		$	4,328,309			$	5,703,908
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable		$	400,640			$	277,492
Deferred Revenue			153,443				120,073
Accrued Expenses			219,126				231,633
Total Current Liabilities			773,209				629,198
TOTAL LIABILITIES			773,209				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; 24,000,000 shares authorized; 10,772,713 and 10,498,802 shares issued and outstanding, respectively			10,773				10,499
Additional Paid-In Capital			54,749,821				54,406,694
Accumulated Deficit			(51,205,495	)			(49,342,484	)
Total Stockholders' Equity			3,555,100				5,074,710
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	4,328,309			$	5,703,908

Sigma Additive Solutions, Inc.
Condensed Statements of Operations
(Unaudited)

		Three Months Ended March 31,
		2023				2022
REVENUES		$	130,159			$	51,844
COST OF REVENUE			63,664				40,091
GROSS PROFIT			66,495				11,753
OPERATING EXPENSES:
Salaries & Benefits			931,583				1,292,010
Stock-Based Compensation			224,850				170,976
Operations and R&D Costs			126,712				143,418
Investor, Public Relations and Marketing			54,944				94,326
Organization Costs			51,198				58,749
Legal & Professional Service Fees			184,251				211,416
Office Expenses			154,499				205,432
Depreciation & Amortization			28,127				31,584
Other Operating Expenses			91,980				87,787
Total Operating Expenses			1,848,144				2,295,698
LOSS FROM OPERATIONS			(1,781,649	)			(2,283,945	)
OTHER INCOME (EXPENSE)
Interest Income			8				1,571
State Incentives			-				76,628
Exchange Rate Loss			(2,503	)			(330	)
Interest Expense			(3,235	)			(1,319	)
Other Income			35,680				-
Total Other Income			29,950				76,550
LOSS BEFORE PROVISION FOR INCOME TAXES			(1,751,699	)			(2,207,395	)
Provision for income Taxes			-				-
Net Loss		$	(1,751,699	)		$	(2,207,395	)
Preferred Dividends			(11,748	)			(14,220	)
Net Loss Applicable to Common Stockholders		$	(1,763,447	)		$	(2,221,615	)
Net Loss per Common Share - Basic and Diluted		$	(0.17	)		$	(0.21	)
Weighted Average Number of Shares Outstanding - Basic and Diluted			10,690,677				10,498,802

Sigma Additive Solutions, Inc.
Condensed Statements of Cash Flows
(Unaudited)

		Three Months Ended
		March 31, 2023				March 31, 2022
OPERATING ACTIVITIES
Net Loss		$	(1,751,699	)		$	(2,207,395	)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Noncash Expenses:
Depreciation and Amortization			28,127				31,584
Stock-Based Compensation - Employees			224,850				170,976
Stock-Based Compensation - Third Party Services			(489	)			11,713
Stock-Based Compensation - Directors			7,728				21,721
Stock-Based Compensation			-				-
Change in Assets and Liabilities:
Accounts Receivable			161,171				151,170
Inventory			6,541				(72,019	)
Prepaid Assets			(129,777	)			(50,996	)
Accounts Payable			123,148				114,105
Deferred Revenue			33,370				11,421
Accrued Expenses			(12,507	)			(209,299	)
NET CASH USED IN OPERATING ACTIVITIES			(1,309,537	)			(2,027,019	)
INVESTING ACTIVITIES
Purchase of Property and Equipment			-				(83,248	)
Purchase of Intangible Assets			(47,690	)			(58,851	)
NET CASH USED IN INVESTING ACTIVITIES			(47,690	)			(142,099	)
FINANCING ACTIVITIES
NET CASH PROVIDED BY FINANCING ACTIVITIES			-				-
NET CHANGE IN CASH FOR PERIOD			(1,357,227	)			(2,169,118	)
CASH AT BEGINNING OF PERIOD			2,845,931				11,447,047
CASH AT END OF PERIOD		$	1,488,704			$	9,277,929
Supplemental Disclosures:
Noncash Investing and Financing Activities Disclosure:
Preferred Stock Dividends		$	11,748			$	14,220
Conversion of Preferred Shares to Common Shares			188,830				-
Other Noncash Operating Activities Disclosure:
Issuance of Securities for services		$	7,239			$	33,434
Disclosure of Cash Paid for:
Interest		$	3,235			$	1,319
Income Taxes		$	-			$	-

SOURCE: Sigma Additive Solutions

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at the time of publication of the news with a fall of -3,25 % to 0,387 on Nasdaq stock exchange (15. Mai 2023, 21:45 Uhr).