Revenue and Expenses - Revenue for the three months ended June 30, 2023, was $97,043, a decrease of $139,617, or 59%, compared to $236,660 in the same period in 2022[99] - Cost of revenue for the same period was $36,491, down $156,584, or 81%, from $193,075 in the prior year[100] - Total operating expenses decreased by $914,854, or 40%, to $1,364,571 for the three months ended June 30, 2023, compared to $2,279,425 in 2022[101] - Revenue for the six months ended June 30, 2023, was $227,202, a decrease of 21% from $288,504 in the same period in 2022[114] - Cost of revenue for the six months ended June 30, 2023, was $100,155, down 57% from $233,166 in the same period in 2022[115] - Total operating expenses for the six months ended June 30, 2023, were $3,212,715, a decrease of 30% from $4,575,123 in the same period in 2022[116] Salary and Benefits - Salary and benefits costs were $554,182, a decrease of $630,636, or 53%, from $1,184,818 in the same period in 2022[102] - Stock-based compensation decreased by $28,950, or 17%, to $138,489 for the three months ended June 30, 2023, compared to $167,439 in 2022[103] Research and Development - Research and development costs were $105,259, down $41,626, or 28%, from $146,885 in the same period in 2022[104] Marketing and Organizational Costs - Investor, public relations, and marketing costs decreased by $94,476, or 62%, to $57,824 during the three months ended June 30, 2023, compared to $152,300 in 2022[105] - Organization costs decreased to $38,240 for the three months ended June 30, 2023, down 37% from $60,817 in the same period in 2022[106] - Office expenses decreased significantly to $94,190 for the three months ended June 30, 2023, down 69% from $303,600 in the same period in 2022[109] - Legal and professional fees increased to $152,025 for the three months ended June 30, 2023, a 5% increase from $144,528 in the same period in 2022[107] Net Loss and Cash Flow - Net loss applicable to common stockholders decreased to $1,318,782 for the three months ended June 30, 2023, a 42% reduction from $2,261,390 in the same period in 2022[113] - Net cash used in operating activities decreased to $2,414,881 for the six months ended June 30, 2023, a 44% reduction from $4,314,503 in the same period in 2022[132] - Net cash used in investing activities decreased to $62,607 for the six months ended June 30, 2023, down 68.6% from $199,045 in the same period in 2022[135] Financial Position - As of June 30, 2023, the company had $368,443 in cash and working capital of $948,091, compared to $2,845,931 in cash and working capital of $3,644,522 as of December 31, 2022[130] Strategic Considerations - The company began offering its PrintRite3D platform on a subscription basis, reducing the initial cost from over $100,000 to approximately $3,000-$5,000 per month[95] - The company is considering a range of strategic alternatives, including potential mergers or acquisitions, and has received multiple non-binding proposals[96][97] Risk and Market Conditions - 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[139] - The company has no off-balance sheet arrangements as defined in Item 303(a) of Regulation S-K[140] - There are no applicable quantitative and qualitative disclosures about market risk[141] Allowance for Doubtful Accounts - As of June 30, 2023, the company established an allowance for doubtful accounts of $115,600, compared to $0 as of June 30, 2022[87]
Sigma Additive Solutions(SASI) - 2023 Q2 - Quarterly Report