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].
Sigma Additive Solutions(SASI) - 2022 Q2 - Quarterly Report