NextTrip (NTRP) 10-Q 11 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 10, 2016
Document and Entity Information:
Entity Registrant Name	SIGMA LABS, INC.
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Trading Symbol	sglb
Amendment Flag	false
Entity Central Index Key	788,611
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		6,267,577
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Unaudited Balance Sheets

Unaudited Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 552,988	$ 1,539,809
Accounts Receivable, net	252,658	280,222
Inventory	90,894	20,129
Prepaid Assets	34,510	38,687
Total Current Assets	931,050	1,878,847
Other Assets
Property and Equipment, net	653,130	714,754
Intangible Assets, net	208,715	167,644
Investment in Joint Venture	9,119	9,222
Prepaid Stock Compensation	157,380	418,547
Total Other Assets	1,028,344	1,310,167
TOTAL ASSETS	1,959,394	3,189,014
Current Liabilities
Accounts Payable	102,367	38,393
Accrued Expenses	117,529	71,523
Total Current Liabilities	219,896	109,916
TOTAL LIABILITIES	219,896	109,916
Stockholders' Equity
Preferred Stock, $0.001 par; 10,000,000 shares authorized; None issued and outstanding	0	0
Common Stock, $0.001 par; 15,000,000 shares authorized; 6,232,410 issued and 6,219,910 outstanding at June 30, 2016 and 6,239,073 issued and 6,206,573 outstanding at December 31, 2015	6,231	6,239
Additional Paid-In Capital	10,509,900	10,636,979
Retained Earnings (Deficit)	(8,776,633)	(7,564,120)
Total Stockholders' Equity	1,739,498	3,079,098
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,959,394	$ 3,189,014

Balance Sheets Parenthetical

Balance Sheets Parenthetical - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Parentheticals
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	15,000,000	15,000,000
Common Stock, shares issued	6,232,410	6,239,073
Common Stock, shares outstanding	6,219,910	6,206,573

Unaudited Condensed Statements

Unaudited Condensed Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
INCOME
Services	$ 93,824	$ 196,263	$ 452,279	$ 381,949
Total Revenue	93,824	196,263	452,279	381,949
COST OF SERVICE REVENUE	30,904	88,262	138,485	113,129
GROSS PROFIT	62,920	108,001	313,794	268,820
EXPENSES
Other General and Administration	480,697	326,075	876,185	593,778
Payroll Expense	252,895	74,474	468,484	147,134
Stock-Based Compensation	59,362	134,250	130,913	257,000
Research and Development	11,907	13,881	50,978	84,028
Total Expenses	804,861	548,680	1,526,560	1,081,940
OTHER INCOME (EXPENSE)
Interest Income	95	312	253	872
Total Other Income (Expense)	95	312	253	872
INCOME (LOSS) BEFORE INCOME TAXES	(741,846)	(440,367)	(1,212,513)	(812,248)
Current Income Tax Expense	0	0	0	0
Deferred Income Tax Expense	0	0	0	0
Net Income (Loss)	$ (741,846)	$ (440,367)	$ (1,212,513)	$ (812,248)
Loss per Common Share - Basic and Diluted	$ (0.12)	$ (0.07)	$ (0.19)	$ (0.13)
Weighted Average Number of Shares Outstanding - Basic and Diluted	6,235,704	6,233,448	6,235,702	6,219,909

Unaudited Condensed Statements5

Unaudited Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
Net Income (Loss)	$ (1,212,513)	$ (812,248)
Noncash Expenses:
Amortization	5,764	1,154
Depreciation	87,054	81,343
Stock Options Awarded	82,905	0
Stock Compensation	48,008	257,000
Loss on Investment in Joint Venture	103	0
Change in assets and liabilities:
(Increase) Decrease in Accounts Receivable	27,564	(5,351)
(Decrease) in Allowance for Doubtful Accounts	0	(4,884)
Decrease (Increase) in Inventory	(70,765)	(19,928)
Decrease (Increase) in Prepaid Assets	7,344	(5,924)
(Decrease) Increase in Accounts Payable	63,974	(214,023)
Increase In Accrued Expenses	46,006	4,575
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES	(914,556)	(718,286)
INVESTING ACTIVITIES
Purchase of Furniture and Equipment	(25,430)	(18,118)
Purchase of Intangible Assets	(46,835)	(1,347)
NET CASH (USED) BY INVESTING ACTIVITIES	(72,265)	(19,465)
NET CASH (DECREASE) INCREASE FOR PERIOD	(986,821)	(737,751)
CASH AT BEGINNING OF PERIOD	1,539,809	2,962,069
CASH AT END OF PERIOD	552,988	2,224,318
Supplemental Disclosure for Cash Flow Information Cash paid during the period for:
Interest	0	0
Income Taxes	$ 0	$ 0

Supplemental Schedule of Noncas

Supplemental Schedule of Noncash Investing and Financing Activities - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental Schedule of Noncash Investing and Financing Activities
Shares were issued to a consultant	3,080
Shares were issued to a consultant per share	$ 4.87
Shares were issued to a consultant	3,529
Shares were issued to a consultant per share	$ 4.25
Shares were issued to a consultant	2,459
Shares were issued to a consultant per share	$ 3.05
Shares were issued to a consultant	2,515
Shares were issued to a consultant per share	$ 2.982
Shares were issued to an employee	625
Shares were issued to an employee per share	$ 4.82
Unvested shares of common stock were cancelled	20,000
Increase (Decrease) in Deferred Compensation	$ 258,000
Increase Decrease In Deferred Compensation,Per Share	$ 12.9
Stock or Unit Option Plan Expense	$ 82,905
Shares issued to an officer, a director and two consultants		36,038
Shares issued to an officer, a director and two consultants per share		$ 5.3
Shares vested		23,019
Shares unvested		13,019
Shares vested relating to Equity Incentive Plan		11,250
Reducing deferred compensation by		$ 135,000
Shares of stock were issued as prepaid stock compensation		22,700

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies:
Summary of Significant Accounting Policies	NOTE 1 – Summary of Significant Accounting Policies Nature of Business – B6 Sigma, Inc., incorporated February 5, 2010, was founded by a group of scientists, engineers and businessmen to develop and commercialize novel and unique manufacturing and materials technologies. The Company believes that some of these technologies will fundamentally redefine conventional quality assurance and process control practices by embedding them into the manufacturing processes in real time, enabling process intervention and ultimately leading to closed loop process control. The Company anticipates that its core technologies will allow its clientele to combine advanced manufacturing quality assurance and process control protocols with novel materials to achieve breakthrough product potential in many industries including aerospace and defense manufacturing, oil and gas and energy manufacturing, bio-medical manufacturing, automotive manufacturing, and other markets such as firearms and recreational equipment. Basis of Presentation Reclassification Loss Per Share – Recently Enacted Accounting Standards Recent Accounting Standards Updates (“ASU”) through ASU No. 2015-01 contain technical corrections to existing guidance or affects guidance to specialized industries or situations. The Company has evaluated recently issued technical pronouncements and has determined that these updates have no current applicability to the Company or their effect on the financial statements would not have been significant. Accounting Estimates

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity {1}
Stockholders' Equity	NOTE 2 – Stockholders’ Equity Common Stock Effective March 17, 2016, our Amended and Restated Articles of Incorporation were amended pursuant to a Certificate of Change Pursuant to Nevada Revised Statutes 78.209 (the “Certificate of Change”) filed with the Nevada Secretary of State. The Certificate of Change provided for both a reverse stock split of the outstanding shares of our common stock on a 1-for-100 basis (the “Reverse Stock Split”), and a corresponding decrease in the number of shares of our common stock that we are authorized to issue (the “Share Decrease”). As a result of the Reverse Stock Split, the number of issued and outstanding shares of our common stock decreased from 622,969,835 pre-Reverse Stock Split shares to 6,229,710 post-Reverse Stock Split shares (after adjustment for any fractional shares). Pursuant to the Share Decrease, the number of authorized shares of our common stock decreased from 750,000,000 to 7,500,000 shares of common stock. All amounts shown for common stock included in these financial statements are presented post-Reverse Stock Split. On April 28, 2016, the Company's Amended and Restated Articles of Incorporation were amended to increase the number of authorized shares of the Company's common stock from 7,500,000 to 15,000,000 shares of common stock. As of June 30, 2016, the Company had 15,000,000 shares of authorized common stock, $0.001 par value per share. In February 2016, the Company issued 625 shares of common stock to a new employee, valued at $4.82 per share, or $3,012. In March 2016, the Company issued 3,080 shares of common stock to a consultant, valued at $4.87 per share, or $14,999. In April 2016, the Company issued 3,529 shares of common stock to a consultant, valued at $4.25 per share, or $15,000. In May 2016, the Company issued 2,459 shares of common stock to a consultant, valued at $3.05 per share, or $7,499. In June 2016, the Company issued 2,515 shares of common stock to a consultant, valued at $2.982 per share, or $7,498. As of June 30, 2016, there were 6,232,410 shares of common stock issued and outstanding. As of December 31, 2015, there were 6,239,073 shares of common stock issued and outstanding, reflecting 12,500 and 32,500 shares, respectively, issued but unvested shares pursuant to the Company's 2011 Equity Incentive Plan (the “2011 Plan”) and the 2013 Plan. On April 28, 2016, at the Annual Meeting of Stockholders of the Company, the Company's stockholders approved an amendment to the 2013 Plan to increase the number of shares of the Company's common stock reserved for issuance under the 2013 Plan by 638,538 shares of our common stock to a total of 750,000 shares (on a post-Reverse Stock Split basis). As of June 30, 2016, an aggregate of 1,500 shares and 618,629 shares of common stock were reserved for issuance under the 2011 Plan and the 2013 Plan, respectively. Stock Options During 2016, the Company granted a total of 21,875 options to three employees with vesting periods ranging from three to four years beginning February 16, 2016. As of June 30, 2016, compensation cost of $82,905, including options granted during 2015 was recognized during the period, for options vesting. The weighted average period over which total compensation cost of the options of $116,177 ($306,796 in 2015) will be recognized is 3.62 years. The weighted average exercise price of the options was $5.75 and the weighted average fair value of the options on the dates of grant was $5.73. The estimated fair value of the options was determined using the Black-Scholls pricing model using the following assumptions: Expected term: 10 years Volatility: 176-184% Dividend yield: 0.00% Risk-free interest rate: 2.24-2.32% Warrants As of June 30, 2016, the Company had no outstanding warrants. During the six months ending June 30, 2016, a warrant to purchase 21,875 shares of common stock at an exercise price of $8 per share and a warrant to purchase 3,125 shares of common stock at an exercise price of $8 per share, expired.

Continuing Operations

Continuing Operations	6 Months Ended
	Jun. 30, 2016
Continuing Operations:
Continuing Operations	NOTE 3 - Continuing Operations The Company has sustained losses and has negative cash flows from operating activities since its inception. However, the Company has had increasing revenues in recent periods. In addition, the Company has raised significant equity capital and is currently developing new product lines to increase future revenues. The Company believes it has adequate working capital and cash to fund operations through 2016, and has entered into significant revenue contracts that are expected to generate cash flow in the near term.

Loss Per Share

Loss Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share:
Loss Per Share	NOTE 4 – Loss Per Share The following data show the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the periods ended June 30, 2016 and 2015: Three Months Ending Six Months Ending June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Loss from continuing Operations available to Common stockholders (numerator) $ (741,846) $ (440,367) $ (1,212,513) $ (812,248) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 6,235,704 6,233,448 6,235,702 6,219,909 Dilutive loss per share was not presented as the Company had no common equivalent shares for all periods presented that would affect the computation of diluted loss per share or its effect is anti-dilutive.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events
Subsequent Events	NOTE 5 – Subsequent Events The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined there are the following items to disclose: On July 18, 2016, the Company issued 4,167 shares of common stock to a consultant for services rendered, valued at $12,500 or $3.00 per share. On July 22, 2016, the Company granted to six employees stock options to purchase an aggregate of 115,500 shares of Company common stock, at an exercise price equal to $2.96 per share, which was the closing market price of the Company's common stock on July 22, 2016 (i.e., the date of grant), subject to time-based vesting restrictions. The options have five year terms and were granted under the 2013 Plan. On July 22, 2016, the Company issued 31,000 shares of common stock, subject to restrictions, to a new employee. The shares were valued at $2.96 per share, or $91,760. On July 28, 2016, the Company filed a Registration Statement on Form S-1 with the SEC. The Company may offer and sell up to $23,250,000 of securities pursuant to the Registration Statement, including (i) units consisting of shares of the Company's common stock and warrants to purchase shares of the Company’s common stock and (ii) shares of the Company’s common stock that are issued upon exercise of the warrants.

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies:
Nature of Business, Policy	Nature of Business – B6 Sigma, Inc., incorporated February 5, 2010, was founded by a group of scientists, engineers and businessmen to develop and commercialize novel and unique manufacturing and materials technologies. The Company believes that some of these technologies will fundamentally redefine conventional quality assurance and process control practices by embedding them into the manufacturing processes in real time, enabling process intervention and ultimately leading to closed loop process control. The Company anticipates that its core technologies will allow its clientele to combine advanced manufacturing quality assurance and process control protocols with novel materials to achieve breakthrough product potential in many industries including aerospace and defense manufacturing, oil and gas and energy manufacturing, bio-medical manufacturing, automotive manufacturing, and other markets such as firearms and recreational equipment.
Basis of Presentation, Policy	Basis of Presentation
Reclassification, Policy	Reclassification
Loss Per Share , Policy	Loss Per Share –
Recently Enacted Accounting Standards , Policy	Recently Enacted Accounting Standards Recent Accounting Standards Updates (“ASU”) through ASU No. 2015-01 contain technical corrections to existing guidance or affects guidance to specialized industries or situations. The Company has evaluated recently issued technical pronouncements and has determined that these updates have no current applicability to the Company or their effect on the financial statements would not have been significant.
Accounting Estimates , Policy	Accounting Estimates

Schedule of Stock Options (Tabl

Schedule of Stock Options (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Stock Options (Tables):
Schedule of Stock Options (Tables)	The estimated fair value of the options was determined using the Black-Scholls pricing model using the following assumptions: Expected term: 10 years Volatility: 176-184% Dividend yield: 0.00% Risk-free interest rate: 2.24-2.32%

Schedule of Loss Per Share (Tab

Schedule of Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Loss Per Share (Tables):
Schedule of Loss Per Share (Tables)	The following data show the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the periods ended June 30, 2016 and 2015: Three Months Ending Six Months Ending June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Loss from continuing Operations available to Common stockholders (numerator) $ (741,846) $ (440,367) $ (1,212,513) $ (812,248) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 6,235,704 6,233,448 6,235,702 6,219,909

Equity (Details Textual)

Equity (Details Textual) - USD ($)	Jun. 30, 2016	May 31, 2016	Apr. 30, 2016	Apr. 28, 2016	Mar. 31, 2016	Mar. 17, 2016	Feb. 28, 2016	Dec. 31, 2015
Equity Details
Number of issued and outstanding shares of our common stock decreased						622,969,835
Reverse Stock Split shares						6,229,710
Number of authorized shares of our common stock decreased from 750,000,000 to						7,500,000
Increase the number of authorized shares of the common stock from 7,500,000 to				15,000,000
Company had shares of authorized common stock	15,000,000
Shares of authorized common stock par value	$ 0.001
Company issued shares of common stock to a new employee							625
Company issued shares of common stock to a new employee valued at							$ 3,012
Company issued shares of common stock to a new employee valued at per share							$ 4.82
Company issued shares of common stock to a new consultant	2,515	2,459	3,529		3,080
Company issued shares of common stock to a consultant valued at	$ 7,498	$ 7,499	$ 15,000		$ 14,999
Company issued shares of common stock to a consultant valued at per share	$ 2.982	$ 3.05	$ 4.25		$ 4.87
Shares of common stock issued and outstanding	6,232,410							6,239,073
Common stock reserved for issuance under the 2013 Plan by shares				638,538
Shares of our common stock to a total of shares (on a post-Reverse Stock Split basis)				750,000
An aggregate of shares	1,500
Shares of common stock were reserved for issuance under the 2011 Plan	618,629

Stock Options Valuation Assumpt

Stock Options Valuation Assumptions (Details)	Jun. 30, 2016
Stock Options Valuation Assumptions Details
Expected term (in years)	10
Volatility, Minimum	176.00%
Volatility, Maximum	184.00%
Dividend yield	0.00%
Risk-free interest rate, Minimum	2.24%
Risk-free interest rate, Maximum	2.32%

Stock Options (Details)

Stock Options (Details)	Jun. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2015shares
Stock Options Details
Company granted a total of options | shares	21,875
Compensation cost of the options | $	$ 82,905
Total compensation cost of the options | shares	116,177	306,796
Total compensation cost of the options will be recognized in years	3.62
Weighted average exercise price of the options | $ / shares	$ 5.75
Weighted average fair value of the options on the dates of grant | $ / shares	$ 5.73

Warrants (Details)

Warrants (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Warrants Details
Warrant remaining to purchase a total shares of common stock | shares	21,875
Warrant remaining to purchase a total shares of common stock at an exercise price per share | $ / shares	$ 8
Warrant to purchase shares of common stock | shares	3,125
Warrant to purchase shares of common stock at an exercise price per share | $ / shares	$ 8

Loss Per Share (Details)

Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Loss Per Share Details
Loss from continuing Operations available to Common stockholders (numerator)	(741,846)	(440,367)	(1,212,513)	(812,248)
Weighted average number of common shares Outstanding used in loss per share during the Period (denominator)	6,235,704	6,233,448	6,235,702	6,219,909

Subsequent Events (Details Text

Subsequent Events (Details Textual) - USD ($)	Jul. 28, 2016	Jul. 22, 2016	Jul. 18, 2016
Subsequent Event Details
Purchase shares of Company common stock		115,500
Purchase shares of Company common stock at an exercise price per share		$ 2.96
Company issued shares of common stock, subject to restrictions, to a new employee		31,000
Company issued shares of common stock, subject to restrictions, to a new employee valued at		$ 91,760
Company issued shares of common stock, subject to restrictions, to a new employee valued at per share		$ 2.96
Company may offer and sell of securities pursuant to the Registration Statement	$ 23,250,000
Company issued shares of common stock to a consultant for services rendered			4,167
Value of shares issued to a consultant for services rendered			$ 12,500
Per share Value of stock issued to a consultant for services rendered			$ 3