Sigma Labs, Inc. (OTCMKTS:SGLB) Still Red After Quarterly Report
Yesterday the share price of Sigma Labs, Inc. (OTCMKTS:SGLB) took another tumble down the charts. By the closing bell SGLB was 7% down, at $0.13 per share.
We have not covered the 3D printing company in a long while and there have been two new filings since our last article. SGLB‘s annual report was made public on the last day of March and was met with a lukewarm reaction. Since its release the company’s share price fluctuated, finding what could be interpreted as support around its 50-day moving average.
After the release of the Q1 report for 2014 the ticker slipped further down. The last 10-Q furnished by the company contained the following numbers:
- $4 million in cash
- $97 thousand in current liabilities
- $114 thousand in Q1 revenues
- $466 thousand in Q1 net loss
Sigma has grown its cash position considerably since December’s $992 thousand. This financial injection came from the sale of 43.7 million shares at $0.08 per share, worth $3.5 million. While this did take place in January, when SGLB was skating along its lowest price for the last six months, the company never closed below $0.11 cents over that month and the shares were sold at a discount even back then.
On the other hand, SGLB reported that it should have sufficient funds to finance operations through 2015. With the tentative commercialization date for its in-process quality assurance technology still set for 2014, this should mean that there is no need for further dilution over the next months.
In early May SGLB announced an agreement with Honeywell International, under which the Honeywell engineering center will be used as the beta testing grounds for Sigma’s PrintRite software. The extension of Honeywell’s support indicates a degree of confidence in Sigma’s product.
SGLB appears to have enough money in its coffers to stem dilution for the next couple of quarters and tests are still being conducted with a big name in aerospace and the next few months will be a pivotal point in the company’s development.
