Revenue Performance - Revenue for the three months ended September 30, 2022, was $188,245, a decrease of $511,992 or 72.7% compared to $700,237 in the same period in 2021[101] - The decrease in revenue was primarily due to lower PrintRite3D® unit sales of $511,870 and a shift to subscription-based sales[101] - Revenue for the nine months ended September 30, 2022 was $476,749, a decrease of $825,776 or 63.4% compared to the same period in 2021[116] Subscription Model Transition - The company began offering a subscription option in January 2022, reducing the initial upfront cost from over $100,000 to approximately $3,000-$5,000 per month[94] - The shift to a subscription model has adversely affected near-term revenue growth but is expected to lead to more predictable and profitable revenues in the long term[95] Operating Expenses - Total operating expenses for Q3 2022 were $2,392,596, a decrease of $633,932 or 20.9% compared to Q3 2021[104] - Operating expenses for the nine months ended September 30, 2022 were $6,968,079, a decrease of $8,865 compared to the same period in 2021[118] Cost of Revenue - Cost of revenue for Q3 2022 was $79,713, a decrease of $85,053 or 51.6% compared to Q3 2021[102] Employee and Compensation Changes - The company reduced its headcount by a net of seven employees, bringing the total to twenty-five, a reduction of ten from a peak of thirty-five[96] - Salary and benefits costs increased by $5,045 or 0.4% to $1,227,805 in Q3 2022 compared to Q3 2021[105] - Salary and benefits costs for the nine months ended September 30, 2022 increased by $649,354 or 21.3% to $3,704,633 compared to the same period in 2021[119] - Stock-based compensation decreased by $384,094 or 58.2% to $275,418 in Q3 2022 compared to Q3 2021[106] - Research and development costs increased by $20,473 or 15.5% to $152,245 in Q3 2022 compared to Q3 2021[107] Financial Position and Cash Flow - As of September 30, 2022, the company had $4,800,680 in cash and working capital of $5,492,725, a decrease from $11,447,047 and $11,702,358 as of December 31, 2021[130] - Net cash used in operating activities during the nine months ended September 30, 2022 was $6,386,415, an increase of 33% compared to $4,786,590 during the same period in 2021[138] - Net cash used in investing activities during the nine months ended September 30, 2022 was $259,952, a 2% increase from $254,772 in the same period of 2021[139] - The company did not raise any capital during the nine months ended September 30, 2022, contrasting with $14,404,942 raised in the same period of 2021[140] Strategic Initiatives - Sigma is focused on building strategic partnerships and expanding its partner ecosystem to ensure customer success as they move into production[97] - The company aims to simplify the quality experience from multiple software licenses to a single integrated user experience[97] - Sigma has invested in developing a holistic in-process quality base to connect to the broader digital quality ecosystem[99] - The company is pursuing a strategic corporate investment partner to enhance market visibility and customer adoption[98] Future Outlook and Risks - The company expects to sustain operations and commercialization efforts through cash reserves and revenues from PrintRite3D® technology sales[135] - Future capital requirements will depend on factors including revenue generation from existing and future PrintRite3D contracts and potential strategic partnerships[141] - The ongoing impact of the COVID-19 epidemic may affect the company's operations, particularly due to component shortages for PrintRite3D systems[136] - The company has no lines of credit or other financing arrangements, which may limit its ability to respond to financial needs[142] - Inflation and rising interest rates have not materially affected operations over the past two fiscal years, but continued unfavorable trends may increase cash usage[142] - The company is currently identifying sources of financing, either through equity or debt, to support its operations[134]

Revenue and Cost Analysis - Revenue for the three months ended June 30, 2022, was $236,660, an increase of $92,512, or 64.2%, compared to $144,148 in the same period in 2021[92]. - Cost of revenue for the same period was $193,075, an increase of $76,678, or 65.9%, compared to $116,397 in 2021[93]. - Revenue for the six months ended June 30, 2022 was $288,504, a decrease of 52.1% from $602,288 in the same period in 2021[106]. - Cost of revenue for the six months ended June 30, 2022 was $233,166, a decrease of 4.7% from $244,728 in the same period in 2021[107]. Operating Expenses - Total operating expenses for the three months ended June 30, 2022, were $2,279,425, an increase of $110,774, or 5.1%, compared to $2,168,651 in 2021[94]. - Operating expenses for the six months ended June 30, 2022 were $4,575,123, an increase of 15.8% from $3,950,057 in the same period in 2021[108]. - Salary and benefits costs increased to $1,184,818 for the three months ended June 30, 2022, up $199,470, or 20.2%, from $985,348 in 2021[95]. - Stock-based compensation was $167,439 for the three months ended June 30, 2022, an increase of $50,998, or 43.8%, compared to $116,441 in 2021[96]. - Operations and research and development expenses decreased to $146,885, down $133,815, or 47.7%, from $280,700 in the same period of 2021[97]. - Investor, public relations, and marketing expenses were $152,300, an increase of $37,538, or 32.7%, compared to $114,762 in 2021[98]. - Organization costs for Q2 2022 were $60,817, a decrease of 61.6% from $158,529 in Q2 2021[99]. - Legal and professional fees in Q2 2022 were $144,528, down 40.8% from $244,019 in Q2 2021[100]. - Office expenses for Q2 2022 increased to $303,600, a 99.9% rise from $151,871 in Q2 2021[101]. Cash Flow and Liquidity - Cash as of June 30, 2022 was $6,933,499, down from $11,447,047 as of December 31, 2021[121]. - Net cash used in operating activities increased to $4,314,503 for the six months ended June 30, 2022, a 32.1% increase from $3,266,620 in the same period of 2021[129]. - Net cash used by investing activities rose to $199,045 for the six months ended June 30, 2022, an increase of 84.3% from $108,021 in the same period of 2021[130]. - The company did not raise any capital or exercise any warrants during the six months ended June 30, 2022, compared to $14,404,942 provided by financing activities in the same period of 2021[131]. - The company’s ability to fund liquidity and working capital needs depends on generating revenues from existing and future PrintRite3D contracts and obtaining additional capital[132]. - There are no lines of credit or other financing arrangements currently in place for the company[133]. - Inflation and rising interest rates have not materially affected the company's operations over the last two fiscal years, but continued unfavorable trends may increase cash usage[133]. - The company has no off-balance sheet arrangements as defined in Item 303(a) of Regulation S-K[134]. - There are no applicable quantitative and qualitative disclosures about market risk[135]. Business Model and Strategy - The company began offering its PrintRite3D platform on a subscription basis, reducing the initial upfront cost from over $100,000 to approximately $3,000-$4,000 per month[88]. - A three-year plan was announced to increase the company's ability to commercialize its PrintRite3D technologies and improve gross margins by moving towards a software-only solution[86]. - The shift in business model is expected to contribute to faster adoption of products and more predictable and profitable revenues over the long term[91]. Net Loss - Net loss applicable to common stockholders for the six months ended June 30, 2022 was $4,483,005, an increase of $1,911,671 from $2,571,334 in the same period in 2021[120]. Impact of COVID-19 - The ongoing COVID-19 pandemic has caused a reduction in capital spending, but may accelerate the adoption of 3D printing in the long term[127].

Revenue and Income - Revenue for the three months ended March 31, 2022, was $51,844, a decrease of $406,296, or 89%, compared to $458,140 in the same period in 2021[83] - The company recognized an increase in revenues from its subscription-based pricing program by $13,425[83] - Net other income decreased by $724,386, or 90%, to $76,550 in Q1 2022, compared to $800,936 in Q1 2021, mainly due to an unrealized gain of $802,285 in 2021[96] - Net loss applicable to common stockholders for Q1 2022 was $2,221,615, an increase of $1,510,048 from $711,567 in Q1 2021, driven by an increased loss from operations of $832,350 and decreased other income[97] Expenses - Cost of revenue for the same period was $40,091, down $88,240, or 69%, from $128,331 in 2021, primarily due to fewer unit sales[84] - Total operating expenses increased to $2,295,698, an increase of $514,294, or 29%, compared to $1,781,404 in the same period in 2021[85] - Salary and benefits costs rose to $1,292,010, an increase of $444,839, or 53%, compared to $847,171 in 2021[86] - Stock-based compensation increased to $170,976, up $53,499, or 46%, from $117,477 in the same period in 2021[87] - Research and development expenses decreased to $143,418, down $52,922, or 30%, compared to $196,340 in 2021[88] - Legal and professional fees increased to $211,416, an increase of $34,569, or 20%, compared to $176,847 in 2021[92] - Depreciation and amortization expense rose to $31,584, an increase of $8,553, or 37%, compared to $23,031 in 2021[94] - Other operating expenses increased to $87,787 for the three months ended March 31, 2022, compared to $86,356 for the same period in 2021, primarily due to a $1,701 increase in insurance policy premiums[95] Cash Flow and Capital - Cash and working capital as of March 31, 2022, were $9,277,929 and $9,588,858, respectively, down from $11,447,047 and $11,702,358 as of December 31, 2021[98] - Net cash used in operating activities increased to $2,027,019 in Q1 2022, a 63% increase from $1,240,586 in Q1 2021, due to a rise in net loss and decreases in accounts payable and accrued expenses[107] - Net cash used by investing activities rose to $142,099 in Q1 2022 from $21,969 in Q1 2021, attributed to reclassified leased PrintRite3D units and increased patent costs[108] - The company did not raise any capital or have warrant exercises in Q1 2022, contrasting with $14,404,942 in cash provided by financing activities in Q1 2021[109] - The company expects to sustain operations and commercialization efforts in 2022 using cash reserves and revenues from PrintRite3D technology sales[103] - Future capital requirements will depend on various factors, including revenue from existing and future products and costs associated with business expansion[106] - The company has no lines of credit or other financing arrangements, which may impact its ability to fund liquidity and working capital needs[111] Business Model - The company introduced a subscription model reducing initial costs from over $100,000 to approximately $3,000-$4,000 per month[79]

Financial Performance - Sigma generated revenues of $1,651,765 in fiscal 2021, up from $807,488 in fiscal 2020, representing an increase of 104%[123] - Gross margin improved to 66% in fiscal 2021 from 27% in fiscal 2020, a 39% increase attributed to lower material costs and improved efficiency[121] - The company sold 11 PrintRite3D units in 2021, compared to 6 units in 2020, reflecting a growth in sales volume[123] - Net other income for fiscal 2021 was $1,094,780, a significant increase of 119.6% from $498,629 in fiscal 2020, mainly due to a gain on derivative liability[132] - The net loss before preferred dividends for fiscal 2021 was $7,384,605, an increase of 42.0% from $5,200,139 in fiscal 2020[133] Operating Expenses - Operating expenses increased to $9,571,185 in fiscal 2021 from $5,914,299 in fiscal 2020, a rise of $3,656,886[124] - Research and development expenditures rose to $890,553 in fiscal 2021 from $351,404 in fiscal 2020, with significant investments in new product development[127] - Sigma's stock-based compensation increased to $1,066,455 in fiscal 2021 from $596,842 in fiscal 2020, driven by new grants to employees[126] - Organizational costs for fiscal 2021 were $726,147, an increase of 60.6% compared to $451,982 in fiscal 2020[128] - Legal and professional service fees rose to $915,530 in fiscal 2021, up 35.4% from $676,142 in fiscal 2020, primarily due to increased recruiting fees and consulting expenses[129] - Office expenses increased by $317,806 to $734,386 in fiscal 2021, a rise of 76.3% compared to $416,580 in fiscal 2020, driven by higher travel and postage costs[130] Cash Flow and Capital - Cash and working capital as of December 31, 2021, were $11,447,047 and $11,702,358 respectively, compared to $3,700,814 and $4,332,053 as of December 31, 2020, indicating a substantial increase[134] - Cash provided by financing activities increased to $14,404,942 in fiscal 2021, up 65.0% from $8,722,122 in fiscal 2020, due to higher net proceeds from financings[141] - Net cash used in operating activities rose to $6,298,959 in fiscal 2021, an increase of 30.9% from $4,809,868 in fiscal 2020[139] - The company anticipates that existing cash reserves will be sufficient to cover operating costs and capital expenditures through 2022[134] Strategic Initiatives - The company added 13 full-time employees in 2021, expanding the sales team from 2 to 7 to support business growth[119] - Sigma plans to offer its PrintRite3D solution on a subscription basis, reducing initial costs from over $100,000 to approximately $3,000-$4,000 per month[103] - The company launched a three-tiered OEM program to expand distribution of its technology among various OEMs[104] - The company plans to continue funding development activities and operating expenses through licensing and consulting services related to its PrintRite3D® technology[138] Cost Management - Sigma's cost of revenue decreased to $559,965 in fiscal 2021 from $591,957 in fiscal 2020, primarily due to improved manufacturing efficiency[123]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38015 Sigma Labs, Inc. (Exact name of registrant as specified in its charter) | NEVADA | 27-1865814 | | --- | --- | | (State or other jurisdiction of | (IRS ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38015 Sigma Labs, Inc. (Exact name of registrant as specified in its charter) Securities registered pursuant to Section 12(b) of the Act: | Title of each class | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38015 SIGMA LABS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) NEVADA 27-186581 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) Nevada 27-1865814 3900 Paseo del Sol Santa Fe, New Mexico 87507 (Address of principal executive offices) (505) 438-2576 (Registrant's telephone number, including area code): Securities regist ...