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]
Sigma Additive Solutions(SASI) - 2021 Q4 - Annual Report