NextTrip (NTRP) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document and Entity Information:
Entity Registrant Name	SIGMA LABS, INC.
Document Type	10-Q
Document Period End Date	Sep. 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	Q3

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 137,702	$ 1,539,809
Accounts Receivable, net	119,599	280,222
Inventory	84,659	20,129
Prepaid Assets	34,097	38,687
Total Current Assets	376,057	1,878,847
Other Assets
Property and Equipment, net	609,782	714,754
Intangible Assets, net	222,674	167,644
Investment in Joint Venture	500	9,222
Prepaid Stock Compensation	208,848	418,547
Total Other Assets	1,041,804	1,310,167
TOTAL ASSETS	1,417,861	3,189,014
Current Liabilities
Accounts Payable	143,217	38,393
Accrued Expenses	96,322	71,523
Total Current Liabilities	239,539	109,916
TOTAL LIABILITIES	239,539	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; 6,267,577 and 6,239,073 issued and outstanding at September 30, 2016 and December 31, 2015, respectively	6,268	6,239
Additional Paid-In Capital	10,668,007	10,636,979
Accumulated Deficit	(9,495,953)	(7,564,120)
Total Stockholders' Equity	1,178,322	3,079,098
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,417,861	$ 3,189,014

Balance Sheets Parentheticals

Balance Sheets Parentheticals - $ / shares	Sep. 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	100,000,000
Common Stock, shares issued	6,267,577	6,239,073
Common Stock, shares outstanding	6,267,577	6,239,073

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
INCOME
Services	$ 189,951	$ 266,566	$ 642,230	$ 648,515
Total Revenue	189,951	266,566	642,230	648,515
COST OF SERVICE REVENUE	69,259	25,250	207,744	138,379
GROSS PROFIT	120,693	241,316	434,486	510,136
EXPENSES
Other General and Administration	437,873	293,187	1,345,576	886,965
Payroll Expense	259,011	191,399	727,494	338,533
Stock-Based Compensation	105,630	221,500	236,554	478,500
Research and Development	37,532	122,517	88,504	206,545
Total Expenses	840,046	828,603	2,398,128	1,910,543
OTHER INCOME (EXPENSE)
Interest Income	35	265	288	1,137
Other Income	0	0	31,626	0
Loss on Investment in Joint Venture	(3)	(108)	(105)	(108)
Total Other Income (Expense)	32	157	31,809	1,029
LOSS BEFORE INCOME TAXES	(719,320)	(587,130)	(1,931,833)	(1,399,378)
Provision for income Taxes	0	0	0	0
Net Loss	$ (719,320)	$ (587,130)	$ (1,931,833)	$ (1,399,378)
Loss per Common Share - Basic and Diluted	$ (0.11)	$ (0.09)	$ (0.31)	$ (0.22)
Weighted Average Number of Shares Outstanding - Basic and Diluted	6,259,349	6,234,834	6,243,642	6,224,939

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
OPERATING ACTIVITIES
Net Loss	$ (1,931,833)	$ (1,399,378)
Noncash Expenses:
Amortization	6,526	1,731
Depreciation	131,879	123,205
Stock Compensation	240,756	478,500
Change in assets and liabilities:
Accounts Receivable	160,623	(55,107)
Allowance for Doubtful Accounts	0	(4,884)
Inventory	(64,530)	(55,678)
Prepaid Assets	4,590	20,709
Accounts Payable	104,824	(227,508)
Customer Deposits	0	62,393
Accrued Expenses	24,799	17,024
NET CASH USED BY OPERATING ACTIVITIES	(1,322,366)	(1,038,993)
INVESTING ACTIVITIES
Purchase of Furniture and Equipment	(26,907)	(64,334)
Purchase of Intangible Assets	(61,556)	(11,995)
Investment in Joint Venture	8,617	(10,000)
Loss on Investment in Joint Venture	105	108
NET CASH USED BY INVESTING ACTIVITIES	(79,741)	(86,221)
NET CASH DECREASE FOR PERIOD	(1,402,107)	(1,125,214)
CASH AT BEGINNING OF PERIOD	1,539,809	2,962,069
CASH AT END OF PERIOD	137,702	1,836,855
Cash paid during the period for:
Interest	0	0
Income Taxes	0	0
Supplemental Schedule of Noncash Investing and Financing Activities:
Issuance of Common Stock for services	$ 152,265	$ 225,189

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 September 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. In July 2016, the Company issued 4,167 shares of common stock to a consultant, valued at $3.00 per share, or $12,501. In July 2016, the Company issued 31,000 shares of common stock to an employee, valued at $2.97 per share, or $91,760. As of September 30, 2016, there were 6,267,577 shares of common stock issued and outstanding, including 62,250 issued but unvested shares pursuant to the Company's 2011 Equity Incentive Plan (the “2011 Plan”) and the Company's 2013 Equity Incentive Plan (the “2013 Plan”). As of December 31, 2015, there were 6,239,073 shares of common stock issued and outstanding, including 12,500 and 32,500 issued but unvested shares pursuant to 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 September 30, 2016, an aggregate of 1,500 shares and 601,712 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 137,375 options to nine employees with vesting periods ranging from three to four years beginning November 17, 2016. As of September 30, 2016, stock option compensation expense of $136,787 was recognized during the nine months ended September 30, 2016 for these options and other options granted in 2015. The weighted average period over which total the compensation cost of the options of $660,500 ($327,504 in 2015) will be recognized is 3.02 years. The weighted average exercise price of all options is $4.21 and the weighted average fair value of the options on the grant dates was $3.23. The estimated fair value of the options was determined using the Black-Scholes pricing model using the following assumptions: Expected term: 5 - 10 years Volatility: 67.3 - 81.7% Dividend yield: 0.00% Risk-free interest rate: 1.13 - 2.32% Warrants As of September 30, 2016, the Company had no outstanding warrants.

Continuing Operations

Continuing Operations	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2016
Loss Per Share
Loss Per Share	NOTE 4 – Loss Per Share The following data show the amounts used in computing loss per share and the weighted average number of shares of dilutive potential common stock for the periods ended September 30, 2016 and 2015: Three Months Ending Nine Months Ending Sept. 30, 2016 Sept. 30, 2015 Sept. 30, 2016 Sept. 30, 2015 Loss from continuing Operations available to Common stockholders (numerator) $ (719,320) $ (587,130) $ (1,931,833) $ (1,399,378) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 6,259,349 6,234,834 6,243,642 6,224,939 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	9 Months Ended
	Sep. 30, 2016
Subsequent Events
Subsequent Events	NOTE 5 – Subsequent Events Effective October 17, 2016, the Company entered into a Securities Purchase Agreement with two accredited investors (the “Investors”) for the private placement by the Company of Secured Convertibles Notes in the aggregate principal amount of $1,000,000 (the "Notes") and warrants (the "Warrants") to purchase up to 160,000 shares (the "Warrant Shares") of the Company's common stock ("Common Stock") (subject to adjustment in certain circumstances), for aggregate gross proceeds, before expenses, to the Company of $900,000 (the “Financing Transaction”). The closing of the Financing Transaction (the “Closing”) occurred on October 19, 2016. In connection with the Financing Transaction, the Company entered into a Registration Rights Agreement, dated October 17, 2016, with the Investors (the “Registration Rights Agreement”), pursuant to which the Company agreed to file a registration statement related to the Financing Transaction with the Securities and Exchange Commission (“SEC”) covering the resale of (i) the shares of Common Stock that will be issued to the Investors upon conversion of the Notes (the "Conversion Shares"), and (ii) the Warrant Shares that will be issued to the Investors upon exercise of the Warrants. The Notes are secured by the assets of the Company pursuant to a Security Agreement, dated October 17, 2016, between the Company and the "collateral agent" (as defined in the Notes) for the benefit of itself and each of the Investors. Each Warrant has an initial exercise price equal to the lesser of (i) the final unit price of the Company’s proposed public offering initially filed with the SEC on July 28, 2016, and (ii) 150% of the closing price of the Common Stock as reported by the OTC Markets Group, Inc. on the date of issuance of the Warrants (subject to adjustment as provided therein), which Warrants may be exercised on a cashless basis as provided in the Warrants.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies:
Nature of Business, Policy	Nature of Business –
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)	9 Months Ended
	Sep. 30, 2016
Schedule of Stock Options (Tables):
Schedule of Stock Options (Tables)	The estimated fair value of the options was determined using the Black-Scholes pricing model using the following assumptions: Expected term: 5 - 10 years Volatility: 67.3 - 81.7%

Schedule of Loss Per Share (Tab

Schedule of Loss Per Share (Tables)	9 Months Ended
	Sep. 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 weighted average number of shares of dilutive potential common stock for the periods ended September 30, 2016 and 2015: Three Months Ending Nine Months Ending Sept. 30, 2016 Sept. 30, 2015 Sept. 30, 2016 Sept. 30, 2015 Loss from continuing Operations available to Common stockholders (numerator) $ (719,320) $ (587,130) $ (1,931,833) $ (1,399,378) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 6,259,349 6,234,834 6,243,642 6,224,939

Equity (Details Textual)

Equity (Details Textual) - USD ($)	Sep. 30, 2016	Jul. 31, 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		31,000						625
Company issued shares of common stock to a new employee valued at		$ 91,760						$ 3,012
Company issued shares of common stock to a new employee valued at per share		$ 2.97						$ 4.82
Company issued shares of common stock to a new consultant	2,515	4,167	2,459	3,529		3,080
Company issued shares of common stock to a consultant valued at	$ 7,498	$ 12,501	$ 7,499	$ 15,000		$ 14,999
Company issued shares of common stock to a consultant valued at per share	$ 2.98	$ 3	$ 3.05	$ 4.25		$ 4.87
Shares of common stock issued and outstanding	6,267,577								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	601,712

Stock Options Valuation Assumpt

Stock Options Valuation Assumptions (Details)	Sep. 30, 2016
Stock Options Valuation Assumptions Details
Expected term Minimum (in years)	5
Expected term maximum (in years)	10
Volatility, Minimum	6.73%
Volatility, Maximum	81.70%
Dividend yield	0.00%
Risk-free interest rate, Minimum	11.13%
Risk-free interest rate, Maximum	2.32%

Stock Options (Details)

Stock Options (Details)	Sep. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)
Stock Options Details
Company granted a total of options | shares	137,375
Compensation cost of the options | $	$ 136,787
Total compensation cost of the options | $	$ 660,500	$ 327,504
Total compensation cost of the options will be recognized in years	3.02
Weighted average exercise price of the options | $ / shares	$ 4.21
Weighted average fair value of the options on the dates of grant | $ / shares	$ 3.23

Loss Per Share (Details)

Loss Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Loss Per Share Details
Loss from continuing Operations available to Common stockholders (numerator)	(719,320)	(587,130)	(1,931,833)	(1,399,378)
Weighted average number of common shares Outstanding used in loss per share during the Period (denominator)	6,259,349	6,234,834	6,243,642	6,224,939

Subsequent Events (Details)

Subsequent Events (Details)	Oct. 17, 2016USD ($)shares
Subsequent Events Transactions
Company of Secured Convertibles Notes in the aggregate principal amount	$ 1,000,000
Warrants to purchase up to shares | shares	160,000
Company's common stock for aggregate gross proceeds	$ 900,000