Business Model and Strategy - The company transitioned to a subscription model for its PrintRite3D platform, reducing initial costs from over $100,000 to approximately $3,000-$5,000 per month[87] - The company aims to increase revenue from OEMs in 2023, particularly with the introduction of software-only products[88] - The company is evaluating strategic alternatives, including potential acquisitions or mergers, to enhance market visibility and customer adoption[90] - The company has launched a three-tiered OEM program to expand its technology distribution among various OEMs[86] - The company is building strategic partnerships to simplify the quality experience for customers, integrating multiple software licenses into a single user experience[85] - The company is working to integrate its technology with industry-wide hardware providers, enhancing its product offerings and market presence[86] Financial Performance - Revenue for the three months ended March 31, 2023, was $130,159, an increase of $78,315, or 151%, compared to $51,844 in the same period in 2022[94] - Cost of revenue increased to $63,664 for the three months ended March 31, 2023, up $23,573, or 59%, from $40,091 in the same period in 2022[95] - Total operating expenses decreased to $1,848,144 for the three months ended March 31, 2023, a reduction of $447,554, or 20%, compared to $2,295,698 in the same period in 2022[96] - Salary and benefits costs were $931,583 for the three months ended March 31, 2023, down $360,427, or 28%, from $1,292,010 in the same period in 2022[97] - Net loss applicable to common stockholders for the three months ended March 31, 2023, was $1,763,447, a decrease of $458,168, or 21%, compared to $2,221,615 in the same period in 2022[107] Cash Flow and Working Capital - Cash and working capital as of March 31, 2023, were $1,488,704 and $2,105,349, respectively, down from $2,845,931 and $3,644,522 as of December 31, 2022[108] - Net cash used in operating activities was $1,309,537 for the three months ended March 31, 2023, a decrease of $717,482, or 35.4%, compared to $2,027,019 in the same period in 2022[112] - Net cash used in investing activities was $47,690 for the three months ended March 31, 2023, a decrease of $94,409, or 66.4%, from $142,099 in the same period in 2022[115] - The company has no arrangements for additional financing and may face challenges in raising funds, which could impact operations[109] Product Development and Quality - In 2022, the company focused on retrofit work while developing software-only products, which adversely affected revenue growth[88] - The company has invested in developing machine and process software products to enhance in-process quality in additive manufacturing[89] - The company recognizes revenue primarily from software sales and engineering services, adhering to ASC Topic No. 606 for revenue recognition[73] - The company is focused on creating a holistic digital quality experience that connects in-process data to improve manufacturing processes[84] - The company has developed a deep patent portfolio and is exploring an intellectual property licensing program to facilitate strategic transactions[93]
Sigma Additive Solutions(SASI) - 2023 Q1 - Quarterly Report