Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 14, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | SIGMA LABS, INC. | |
Entity Central Index Key | 0000788611 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,812,590 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash | $ 696,390 | $ 1,279,782 |
Accounts Receivable, net | 37,982 | 38,800 |
Note Receivable | 79,875 | 121,913 |
Inventory | 570,426 | 240,086 |
Prepaid Assets | 68,718 | 67,255 |
Total Current Assets | 1,453,391 | 1,747,836 |
Other Assets: | ||
Property and Equipment, net | 205,538 | 277,944 |
Intangible Assets, net | 510,718 | 404,978 |
Investment in Joint Venture | 500 | 500 |
Total Other Assets | 716,756 | 683,422 |
TOTAL ASSETS | 2,170,147 | 2,431,258 |
Current Liabilities: | ||
Accounts Payable | 368,055 | 217,488 |
Notes Payable | 50,000 | 50,000 |
Deferred Revenue | 78,773 | 51,498 |
Accrued Expenses | 271,154 | 376,833 |
Total Current Liabilities | 767,982 | 695,819 |
TOTAL LIABILITIES | 767,982 | 695,819 |
Commitments & Contingencies | ||
Stockholders' Equity | ||
Preferred Stock, $0.001 par; 10,000,000 shares authorized; None issued and outstanding, respectively | ||
Common Stock, $0.001 par; 22,500,000 shares authorized; 10,937,590, and 8,776,629 issued and outstanding, respectively | 10,938 | 8,777 |
Additional Paid-In Capital | 24,243,575 | 21,501,407 |
Accumulated Deficit | (22,852,348) | (19,774,745) |
Total Stockholders' Equity | 1,402,165 | 1,735,439 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,170,147 | $ 2,431,258 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 22,500,000 | 22,500,000 |
Common stock, shares issued | 10,937,590 | 8,776,629 |
Common stock, shares outstanding | 10,937,590 | 8,776,629 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
REVENUES | $ 33,582 | $ 98,663 | $ 98,032 | $ 202,078 |
COST OF REVENUE | 60,625 | 68,568 | 157,180 | 142,363 |
GROSS PROFIT | (27,043) | 30,095 | (59,148) | 59,715 |
OPERATING EXPENSES: | ||||
Salaries & Benefits | 581,356 | 426,049 | 1,093,916 | 824,706 |
Stock-Based Compensation | 220,360 | 423,067 | 474,566 | 584,589 |
Operating R&D Costs | 118,845 | 95,045 | 264,117 | 217,022 |
Investor & Public Relations | 157,318 | 103,197 | 315,107 | 283,596 |
Legal & Professional Service Fees | 218,919 | 177,929 | 403,489 | 316,352 |
Office Expenses | 184,068 | 110,936 | 350,178 | 206,042 |
Depreciation & Amortization | 49,203 | 48,253 | 97,586 | 95,574 |
Other Operating Expenses | 38,994 | 38,035 | 77,203 | 71,760 |
Total Operating Expenses | 1,569,064 | 1,422,511 | 3,076,162 | 2,599,641 |
LOSS FROM OPERATIONS | (1,596,107) | (1,392,416) | (3,135,310) | (2,539,926) |
OTHER INCOME (EXPENSE) | ||||
Interest Income | 7,016 | 3,719 | 12,798 | 17,086 |
State Incentives | 51,877 | |||
Exchange Rate Gain (Loss) | (2,264) | 1,304 | (2,710) | 1,304 |
Interest Expense | (2,136) | (1,411) | (4,258) | (1,411) |
Loss on Disposal of Assets | (36,733) | |||
Total Other Income (Expense) | 2,616 | 3,612 | 57,707 | (19,754) |
LOSS BEFORE PROVISION FOR INCOME TAXES | (1,593,491) | (1,388,804) | (3,077,603) | (2,559,680) |
Provision for income Taxes | ||||
Net Loss | $ (1,593,491) | $ (1,388,804) | $ (3,077,603) | $ (2,559,680) |
Net Loss per Common Share - Basic and Diluted | $ (0.15) | $ (0.25) | $ (0.31) | $ (0.48) |
Weighted Average Number of Shares Outstanding - Basic and Diluted | 10,777,590 | 5,572,015 | 10,063,806 | 5,286,362 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (3,077,603) | $ (2,559,680) |
Noncash Expenses: | ||
Depreciation and Amortization | 97,586 | 95,574 |
Stock Based Compensation | 474,150 | 594,915 |
Loss on Write-off of Asset | 36,733 | |
Change in assets and liabilities: | ||
Accounts Receivable | 818 | 41,028 |
Interest Receivable | 27,038 | 38,139 |
Inventory | (330,340) | 47,100 |
Prepaid Assets | (1,463) | (9,613) |
Accounts Payable | 150,567 | 187,495 |
Deferred Revenue | 27,275 | 34,026 |
Accrued Expenses | (105,678) | 21,764 |
NET CASH USED IN OPERATING ACTIVITIES | (2,737,650) | (1,472,519) |
INVESTING ACTIVITIES | ||
Purchase of Property and Equipment | (23,796) | (41,968) |
Purchase of Intangible Assets | (107,124) | (60,147) |
Payment Received from Notes Receivable | 15,000 | 632,197 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (115,920) | 530,082 |
FINANCING ACTIVITIES | ||
Gross Proceeds from issuance of Common Stock and Warrants | 2,521,220 | 2,040,100 |
Less Offering Costs | (326,890) | (443,700) |
Proceeds from exercise of Warrants | 75,848 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 2,270,178 | 2,946,400 |
NET CHANGE IN CASH FOR PERIOD | (583,392) | 2,003,963 |
CASH AT BEGINNING OF PERIOD | 1,279,782 | 1,515,674 |
CASH AT END OF PERIOD | 696,390 | 3,519,637 |
Noncash investing and financing activities disclosure: | ||
Conversion of Convertible Debt for Stock | (50,000) | |
Issuance of Common Stock for services | 153,000 | 256,264 |
Interest | 2,514 | 8,761 |
Income Taxes | ||
Series B Preferred Stock & Warrants [Member] | ||
FINANCING ACTIVITIES | ||
Preferred Stock | 1,000,000 | |
Series C Preferred Stock & Warrants [Member] | ||
FINANCING ACTIVITIES | ||
Preferred Stock | $ 350,000 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 4,979 | $ 17,192,394 | $ (14,185,457) | $ 3,011,916 |
Balance, shares at Dec. 31, 2017 | 4,978,929 | |||
Net loss | (1,170,876) | (1,170,876) | ||
Shares sold in Public Offering | ||||
Shares sold in Public Offering, shares | ||||
Shares issued for exercise of warrants | ||||
Shares issued for exercise of warrants, shares | ||||
Shares Issued for Cashless Exchange of Unit Purchase Options | ||||
Shares Issued for Cashless Exchange of Unit Purchase Options, shares | ||||
Shares issued for services | $ 23 | $ 39,977 | $ 40,000 | |
Shares issued for services, shares | 23,256 | |||
Stock Options Awarded to Employees | 140,305 | 140,305 | ||
Convertible Preferred Shares Issued in Private Placement | ||||
Convertible Preferred Shares Issued in Private Placement , shares | ||||
Shares Issued for Conversion of Series B Preferred, shares | ||||
Preferred Dividends Due Upon Conversion | ||||
Shares Issued for Notes Payable Conversions | ||||
Shares Issued for Notes Payable Conversions, shares | ||||
Shares Issued for Cashless Exchange of Warrants | ||||
Shares Issued for Cashless Exchange of Warrants, shares | ||||
Series C Convertible Preferred Shares Issued | ||||
Shares sold in Private Placement | ||||
Shares sold in Private Placement, shares | ||||
Balance at Mar. 31, 2018 | $ 5,002 | $ 17,372,676 | $ (15,356,333) | $ 2,021,345 |
Balance, shares at Mar. 31, 2018 | 5,002,185 | |||
Balance at Dec. 31, 2017 | $ 4,979 | $ 17,192,394 | $ (14,185,457) | $ 3,011,916 |
Balance, shares at Dec. 31, 2017 | 4,978,929 | |||
Net loss | (2,559,680) | |||
Shares Issued for Notes Payable Conversions | 50,000 | |||
Balance at Jun. 30, 2018 | $ 8,249 | 20,879,827 | (16,760,262) | 4,127,814 |
Balance, shares at Jun. 30, 2018 | 8,248,729 | |||
Balance at Mar. 31, 2018 | $ 5,002 | $ 17,372,676 | $ (15,356,333) | $ 2,021,345 |
Balance, shares at Mar. 31, 2018 | 5,002,185 | |||
Net loss | $ (1,388,804) | $ (1,388,804) | ||
Shares sold in Public Offering | $ 2,040 | $ 1,720,360 | $ 1,722,400 | |
Shares sold in Public Offering, shares | 2,040,000 | |||
Shares issued for exercise of warrants | ||||
Shares issued for exercise of warrants, shares | ||||
Shares Issued for Cashless Exchange of Unit Purchase Options | ||||
Shares Issued for Cashless Exchange of Unit Purchase Options, shares | ||||
Shares issued for services | $ 177 | $ 216,087 | $ 216,264 | |
Shares issued for services, shares | 176,744 | |||
Stock Options Awarded to Employees | 297,735 | 297,735 | ||
Convertible Preferred Shares Issued in Private Placement | $ 877,499 | 877,499 | ||
Convertible Preferred Shares Issued in Private Placement , shares | ||||
Shares Issued for Conversion of Series B Preferred | $ 1,000 | $ (1,000) | ||
Shares Issued for Conversion of Series B Preferred, shares | 1,000,000 | |||
Preferred Dividends Due Upon Conversion | $ (15,125) | $ (15,125) | ||
Shares Issued for Notes Payable Conversions | $ 25 | $ 49,975 | $ 50,000 | |
Shares Issued for Notes Payable Conversions, shares | 25,000 | |||
Shares Issued for Cashless Exchange of Warrants | $ 5 | $ (5) | ||
Shares Issued for Cashless Exchange of Warrants, shares | 4,800 | |||
Series C Convertible Preferred Shares Issued | $ 346,500 | $ 346,500 | ||
Shares sold in Private Placement | ||||
Shares sold in Private Placement, shares | ||||
Balance at Jun. 30, 2018 | $ 8,249 | $ 20,879,827 | $ (16,760,262) | $ 4,127,814 |
Balance, shares at Jun. 30, 2018 | 8,248,729 | |||
Balance at Dec. 31, 2018 | $ 8,777 | $ 21,501,407 | $ (19,774,745) | 1,735,439 |
Balance, shares at Dec. 31, 2018 | 8,776,629 | |||
Net loss | $ (1,484,112) | (1,484,112) | ||
Shares sold in Public Offering | $ 1,401 | $ 1,677,930 | 1,679,330 | |
Shares sold in Public Offering, shares | 1,400,800 | |||
Shares issued for exercise of warrants | $ 70 | $ 75,778 | $ 75,848 | |
Shares issued for exercise of warrants, shares | 70,230 | |||
Shares Issued for Cashless Exchange of Unit Purchase Options | $ 88 | $ (88) | ||
Shares Issued for Cashless Exchange of Unit Purchase Options, shares | 88,431 | |||
Shares issued for services | $ 202 | $ 77,798 | 78,000 | |
Shares issued for services, shares | 201,500 | |||
Stock Options Awarded to Employees | $ 176,206 | 176,206 | ||
Convertible Preferred Shares Issued in Private Placement | ||||
Convertible Preferred Shares Issued in Private Placement , shares | ||||
Shares Issued for Conversion of Series B Preferred, shares | ||||
Preferred Dividends Due Upon Conversion | ||||
Shares Issued for Notes Payable Conversions | ||||
Shares Issued for Notes Payable Conversions, shares | ||||
Shares Issued for Cashless Exchange of Warrants | ||||
Shares Issued for Cashless Exchange of Warrants, shares | ||||
Series C Convertible Preferred Shares Issued | ||||
Shares sold in Private Placement | ||||
Shares sold in Private Placement, shares | ||||
Balance at Mar. 31, 2019 | $ 10,538 | $ 23,509,031 | $ (21,258,857) | $ 2,260,711 |
Balance, shares at Mar. 31, 2019 | 10,537,590 | |||
Balance at Dec. 31, 2018 | $ 8,777 | $ 21,501,407 | $ (19,774,745) | $ 1,735,439 |
Balance, shares at Dec. 31, 2018 | 8,776,629 | |||
Net loss | (3,077,603) | |||
Shares Issued for Notes Payable Conversions | ||||
Balance at Jun. 30, 2019 | $ 10,938 | $ 24,243,575 | $ (22,852,348) | 1,402,165 |
Balance, shares at Jun. 30, 2019 | 10,937,590 | |||
Balance at Mar. 31, 2019 | $ 10,538 | $ 23,509,031 | $ (21,258,857) | $ 2,260,711 |
Balance, shares at Mar. 31, 2019 | 10,537,590 | |||
Net loss | $ (1,593,491) | $ (1,593,491) | ||
Shares sold in Public Offering | ||||
Shares sold in Public Offering, shares | ||||
Shares issued for exercise of warrants | ||||
Shares issued for exercise of warrants, shares | ||||
Shares Issued for Cashless Exchange of Unit Purchase Options | ||||
Shares Issued for Cashless Exchange of Unit Purchase Options, shares | ||||
Shares issued for services | $ 75,000 | 75,000 | ||
Shares issued for services, shares | ||||
Stock Options Awarded to Employees | 144,944 | 144,944 | ||
Convertible Preferred Shares Issued in Private Placement | ||||
Convertible Preferred Shares Issued in Private Placement , shares | ||||
Shares Issued for Conversion of Series B Preferred, shares | ||||
Preferred Dividends Due Upon Conversion | ||||
Shares Issued for Notes Payable Conversions | ||||
Shares Issued for Notes Payable Conversions, shares | ||||
Shares Issued for Cashless Exchange of Warrants | ||||
Shares Issued for Cashless Exchange of Warrants, shares | ||||
Series C Convertible Preferred Shares Issued | ||||
Shares sold in Private Placement | $ 400 | 514,600 | $ 515,000 | |
Shares sold in Private Placement, shares | 400,000 | |||
Balance at Jun. 30, 2019 | $ 10,938 | $ 24,243,575 | $ (22,852,348) | $ 1,402,165 |
Balance, shares at Jun. 30, 2019 | 10,937,590 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - Summary of Significant Accounting Policies Nature of Business Basis of Presentation Reclassification Loss Per Share - The following data shows 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, 2019 and 2018: Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Net Loss per Common Share - Basic and Diluted $ (0.15 ) $ (0.25 ) (0.31 ) $ (0.48 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,593,491 ) $ (1,388,804 ) (3,077,603 ) $ (2,559,680 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 10,777,590 5,572,015 10,063,806 5,286,362 Recently Enacted Accounting Standards In February 2016, the FASB issued ASU 2016-02, “Leases” which was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has evaluated this standard and determined that it will not currently require any adjustment to Sigma’s financial reporting. Accounting Estimates |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Notes Receivable | NOTE 2 - Notes Receivable On May 1, 2017, the Company made a loan in the principal amount of $250,000 to Jaguar Precision Machine, LLC, a New Mexico limited liability company (“Jaguar”), pursuant to a Secured Convertible Promissory Note dated May 1, 2017 delivered by Jaguar to the Company. The loan bears interest at the rate of 7% per annum, was originally due and payable in full on August 1, 2018, is secured by certain assets of Jaguar, and is convertible at the Company’s option into 10% of the outstanding shares of the common stock of Jaguar unless Jaguar exercises its right under specified circumstances to repay all principal and accrued interest on the loan. On June 15, 2018, the Company received a $150,000 payment from Jaguar, $17,803 of which was applied to accumulated interest through that date and $132,197, the balance, of which, was applied to the principal balance of the note. In the first six months of 2019 payments totaling $45,000 were received. The payments were applied first to the accumulated interest balance on the note and then to the remaining principal balance. The holder of the promissory note has committed to paying the remaining principal balance along with accumulated interest on or before September 30, 2019. The June 30, 2019 principal balance of the note was $79,875 and the accumulated interest balance due was $166. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 3 – Inventory At June 30, 2019 and December 31, 2018, the Company’s inventory was comprised of: June 30, 2019 December 31, 2018 Raw Materials $ 279,835 $ 168,623 Work in Process 265,816 46,688 Finished Goods 24,775 24,775 Total Inventory $ 570,426 $ 240,086 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 4 - Notes Payable At June 30, 2019 the Company had a $50,000 convertible note outstanding due on October 18, 2019. At June 30, 2019 the accumulated interest balance on the note was $1,028. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 5 - Stockholders’ Equity Common Stock In January 2018, the Company issued 23,256 shares of common stock to directors valued at $1.72 per share, or $40,000. In April 2018, the Company issued 176,744 shares of common stock to directors valued at $1.22 per share, or $216,264. Between May 29, 2018 and June 1, 2018, we issued an aggregate of 1,000,000 shares of common stock upon conversion of the 1,000 shares of Series B Preferred Stock issued on April 6, 2018 (as described below under “Preferred Stock”). In May 2018 the holder of our Note Payable converted $50,000 of the principal balance of the Note into 25,000 shares of common stock and exercised its warrant on a cashless basis resulting in the issuance of 4,800 shares of common stock. On June 26, 2018, as part of its public offering of equity securities, the Company issued 2,040,000 shares of common stock and warrants to purchase a total of 717,000 shares of common stock (including the warrants described under “Preferred Stock” below that were issued on June 26, 2018). Each warrant has an initial exercise price of $1.08 per share. The net proceeds to the Company were approximately $2,068,900 after commissions and other offering expenses. The Company also issued Dawson James Securities, Inc., its placement agent in the public offering, a Unit Purchase Option to acquire up to 191,200 Units, at an exercise price of $1.25 per Unit, consisting of 191,200 shares of common stock and warrants to purchase up to 57,360 shares of common stock as compensation. In January 2019, the Company issued a total of 200,000 shares of common stock to directors valued at $1.50 per share, or $300,000, with such shares to vest ratably over four quarterly installments, subject in each case to such director’s continuing service as a director. Also in January 2019, the Company issued 88,431 shares of common stock upon the cashless exercise of Unit Purchase Options issued in our June 2018 public offering. In January and February 2019, the Company issued a total of 70,230 shares of common stock upon the exercise of 70,230 warrants having an exercise price of $1.08 resulting in gross cash proceeds of $75,848. In March 2019, the Company issued 1,500 shares of common stock to the Company’s Vice President of Business Development in connection with his achievement of performance milestones, with such shares vesting immediately. Also in March 2019, the Company closed a public offering of equity securities in which it issued 1,400,800 shares of common stock and warrants to purchase a total of 420,240 shares of common stock resulting in net proceeds of approximately $1,679,230, after deducting placement agent commissions and other offering expenses payable by the Company. In May 2019, the Company closed a private placement of equity securities in which it issued 400,000 shares of common stock and warrants to purchase a total of 220,000 shares of common stock resulting in net proceeds of approximately $515,000, after deducting placement agent commissions and other offering expenses payable by the Company. Deferred Compensation In previous years and in the six months ended June 30, 2019, the Company issued to various employees, directors, and contractors shares of the Company’s common stock, subject to restrictions, pursuant to the 2013 Equity Incentive Plan (the “2013 Plan”). Such shares were valued at the fair value at the date of issue. The fair value was expensed as compensation over the vesting period and recorded as an increase to stockholders’ equity. During the six months ended June 30, 2019 and June 30, 2018, $153,000 and $156,875, respectively, of the unvested compensation cost related to these issues was recognized. At June 30, 2019, there was $150,000 of unrecognized deferred compensation expense to be recognized over the remainder of the year. Stock Options In October 2018, 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 900,000 shares of our common stock to a total of 1,650,000 shares. As of June 30, 2019, an aggregate of 750 shares and 25,460 shares of common stock were reserved for issuance under the 2011 Plan and the 2013 Plan, respectively. During the six months ended June 30, 2019, the Company granted options to purchase a total of 286,925 shares of common stock to 18 employees and 1 consultant with vesting periods ranging from immediately upon issuance to 4 years beginning January 2019. During the six months ended June 30, 2018, the Company granted options to purchase a total of 374,769 shares of common stock to 15 employees and 1 consultant with vesting periods ranging from immediately upon issuance to 4 years beginning March 2018. The Company generally grants stock options to employees and directors at exercise prices equal to the fair market value of the Company’s stock on the dates of grant. Stock options are typically granted throughout the year and generally vest over four years of service and expire five years from the date of the award, unless otherwise specified. The Company recognizes compensation expense for the fair value of the stock options over the requisite service period for each stock option award. Total share-based compensation expense included in the consolidated statements of operations for the six months ended June 30, 2019 and 2018 is $474,566 and $584,589 of which $321,149 and $438,039 is related to stock options, respectively. The fair value of share-based awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the six months ended June 30, 2019 and 2018: Assumptions: 2019 2018 Dividend yield 0.00 0.00 Risk-free interest rate 1.90-2.54 % 2.68-2.97 % Expected volatility 105.2-106.1 % 116.3-137.33 % Expected life (in years) 5 5-10 Option activity for the six months ended June 30, 2019 and the year ended December 31, 2018 was as follows: Weighted Average Weighted Average Exercise Remaining Aggregate Price Contractual Intrinsic Options ($) Life (Yrs.) Value ($) Options outstanding at December 31, 2017 299,938 4.40 7.33 Granted 534,329 1.45 6.58 Exercised - - - Forfeited or cancelled (8,000 ) 4.59 - Options outstanding at December 31, 2018 826,267 2.49 6.47 Granted 286,925 1.55 4.63 Exercised - - - Forfeited or cancelled (5,000 ) 1.15 - Options outstanding June 30, 2019 1,108,192 2.25 5.61 45,830 Options expected to vest in the future as of June 30, 2019 388,858 2.22 5.48 28,309 Options exercisable at June 30, 2019 719,334 2.28 5.69 17,521 Options vested, exercisable, and options expected to vest at June 30, 2019 1,108,192 2.25 5.61 45,830 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock for those awards that have an exercise price currently below the $1.40 closing price of our common stock on June 30, 2019. 22,916 of the 2019 option grants have an exercise price currently below $1.40. At June 30, 2019, there was $348,220 of unrecognized share-based compensation expense related to unvested share options with a weighted average remaining recognition period of 3.02 years. Warrants Warrant activity for the six months ended June 30, 2019 and 2018 was as follows: Weighted Average Weighted Average Exercise Remaining Price Contractual Warrants ($) Life (Yrs.) Warrants outstanding at December 31, 2017 1,645,500 3.97 4.11 Granted 1,607,000 1.30 4.64 Exercised (24,000 ) 2.00 - Forfeited or cancelled - - - Options outstanding at June 30, 2018 3,228,500 2.65 4.40 Options outstanding at December 31, 2018 3,050,600 2.75 3.86 Granted 640,240 1.60 4.94 Exercised (70,230 ) 1.08 - Forfeited or cancelled - - - Options outstanding at June 30, 2019 3,620,610 2.58 3.63 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 6 - Subsequent Events In July and August of 2019, the Company granted our CEO and President two options to purchase up to 22,916 and 22,922 shares of our common stock, respectively under our 2013 Equity Incentive Plan in connection with his employment arrangement. The options have an exercise price per share equal to $1.40 and $0.74, respectively, and each is fully vested. In July of 2019, at the Annual Meeting of Stockholders of the Company, the Company’s stockholders approved an amendment to the 2013 Equity Incentive Plan to increase the number of shares of the Company’s common stock reserved for issuance under the 2013 Plan by 750,000 shares of our common stock to a total of 2,400,000 shares. In July of 2019, the Company granted options to purchase a total of 97,500 shares of common stock to 7 employees and 1 consultant with vesting periods ranging from immediately upon issuance to 4 years beginning July 2020. In August of 2019, the Company closed a public offering of equity securities in which it issued 2,875,000 shares of common stock resulting in net proceeds of approximately $1,971,000, after deducting placement agent commissions and other offering expenses payable by the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business |
Basis of Presentation | Basis of Presentation |
Reclassification | Reclassification |
Loss Per Share | Loss Per Share - The following data shows 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, 2019 and 2018: Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Net Loss per Common Share - Basic and Diluted $ (0.15 ) $ (0.25 ) (0.31 ) $ (0.48 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,593,491 ) $ (1,388,804 ) (3,077,603 ) $ (2,559,680 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 10,777,590 5,572,015 10,063,806 5,286,362 |
Recently Enacted Accounting Standards | Recently Enacted Accounting Standards In February 2016, the FASB issued ASU 2016-02, “Leases” which was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has evaluated this standard and determined that it will not currently require any adjustment to Sigma’s financial reporting. |
Accounting Estimates | Accounting Estimates |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following data shows 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, 2019 and 2018: Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Net Loss per Common Share - Basic and Diluted $ (0.15 ) $ (0.25 ) (0.31 ) $ (0.48 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,593,491 ) $ (1,388,804 ) (3,077,603 ) $ (2,559,680 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 10,777,590 5,572,015 10,063,806 5,286,362 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Company's inventory | At June 30, 2019 and December 31, 2018, the Company’s inventory was comprised of: June 30, 2019 December 31, 2018 Raw Materials $ 279,835 $ 168,623 Work in Process 265,816 46,688 Finished Goods 24,775 24,775 Total Inventory $ 570,426 $ 240,086 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of share-based awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the six months ended June 30, 2019 and 2018: Assumptions: 2019 2018 Dividend yield 0.00 0.00 Risk-free interest rate 1.90-2.54 % 2.68-2.97 % Expected volatility 105.2-106.1 % 116.3-137.33 % Expected life (in years) 5 5-10 |
Schedule of Stock Option Activity | Option activity for the six months ended June 30, 2019 and the year ended December 31, 2018 was as follows: Weighted Average Weighted Average Exercise Remaining Aggregate Price Contractual Intrinsic Options ($) Life (Yrs.) Value ($) Options outstanding at December 31, 2017 299,938 4.40 7.33 Granted 534,329 1.45 6.58 Exercised - - - Forfeited or cancelled (8,000 ) 4.59 - Options outstanding at December 31, 2018 826,267 2.49 6.47 Granted 286,925 1.55 4.63 Exercised - - - Forfeited or cancelled (5,000 ) 1.15 - Options outstanding June 30, 2019 1,108,192 2.25 5.61 45,830 Options expected to vest in the future as of June 30, 2019 388,858 2.22 5.48 28,309 Options exercisable at June 30, 2019 719,334 2.28 5.69 17,521 Options vested, exercisable, and options expected to vest at June 30, 2019 1,108,192 2.25 5.61 45,830 |
Summary of Warrant Activity | Warrant activity for the six months ended June 30, 2019 and 2018 was as follows: Weighted Average Weighted Average Exercise Remaining Price Contractual Warrants ($) Life (Yrs.) Warrants outstanding at December 31, 2017 1,645,500 3.97 4.11 Granted 1,607,000 1.30 4.64 Exercised (24,000 ) 2.00 - Forfeited or cancelled - - - Options outstanding at June 30, 2018 3,228,500 2.65 4.40 Options outstanding at December 31, 2018 3,050,600 2.75 3.86 Granted 640,240 1.60 4.94 Exercised (70,230 ) 1.08 - Forfeited or cancelled - - - Options outstanding at June 30, 2019 3,620,610 2.58 3.63 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive securities excluded from computation of earnings per share, amount | 4,753,802 | 4,268,207 |
Warrants [Member] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 3,620,610 | 3,228,500 |
Stock Options [Member] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 1,108,192 | 664,707 |
Convertible Note Payable [Member] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 50,000 | 50,000 |
Convertible Preferred Stock [Member] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 350 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||||||
Net Loss per Common Share - Basic and Diluted | $ (0.15) | $ (0.25) | $ (0.31) | $ (0.48) | ||
Loss from continuing Operations available to Common stockholders (numerator) | $ (1,593,491) | $ (1,484,112) | $ (1,388,804) | $ (1,170,876) | $ (3,077,603) | $ (2,559,680) |
Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) | 10,777,590 | 5,572,015 | 10,063,806 | 5,286,362 |
Notes Receivable (Details Narra
Notes Receivable (Details Narrative) - USD ($) | Jun. 15, 2018 | May 01, 2017 | Jun. 30, 2019 |
Debt maturity period | Oct. 18, 2019 | ||
Secured Convertible Promissory Note [Member] | |||
Interest rate | 10.00% | ||
Promissory Note [Member] | |||
Debt principal amount | $ 79,875 | ||
Proceeds from notes receivable | 45,000 | ||
Debt accumulated interest | $ 166 | ||
Jaguar Precision Machine, LLC [Member] | Secured Convertible Promissory Note [Member] | |||
Debt principal amount | $ 250,000 | ||
Interest rate | 7.00% | ||
Debt maturity period | Aug. 1, 2018 | ||
Jaguar Precision Machine, LLC [Member] | Promissory Note [Member] | |||
Debt principal amount | $ 132,197 | ||
Proceeds from notes receivable | 150,000 | ||
Debt accumulated interest | $ 17,803 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 279,835 | $ 168,623 |
Work in Process | 265,816 | 46,688 |
Finished Goods | 24,775 | 24,775 |
Total Inventory | $ 570,426 | $ 240,086 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Debt Disclosure [Abstract] | |
Convertible debt | $ 50,000 |
Debt maturity date | Oct. 18, 2019 |
Accrued interest | $ 1,028 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jun. 26, 2018 | Jun. 02, 2018 | May 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | May 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock issued during period | 1,000,000 | 1,400,800 | 70,230 | 70,230 | ||||||||||||||
Share price per share | $ 1.08 | $ 1.08 | ||||||||||||||||
Common stock issued during period, value | $ 75,848 | $ 75,848 | $ 1,679,330 | $ 1,722,400 | ||||||||||||||
Debt conversion, converted amount | $ 50,000 | $ 50,000 | $ 50,000 | |||||||||||||||
Debt conversion, converted shares issued1 | 25,000 | |||||||||||||||||
Exercise of warrants resulting in issuance of common stock | 4,800 | |||||||||||||||||
Warrants to purchase shares of common stock | 420,240 | |||||||||||||||||
Proceeds from public offering | $ 1,679,230 | |||||||||||||||||
Units, exercise price | $ 2.25 | $ 2.25 | $ 2.49 | $ 4.40 | ||||||||||||||
Unvested compensation cost | $ 153,000 | $ 156,875 | $ 153,000 | 156,875 | ||||||||||||||
Unrecognized deferred compensation expense to be recognized over remainder of year | 150,000 | $ 150,000 | ||||||||||||||||
Number of shares granted | 286,925 | 534,329 | ||||||||||||||||
Vesting period | 4 years | |||||||||||||||||
Share-based compensation arrangement by share-based payment award, expiration period | 5 years | |||||||||||||||||
Share based compensation | 220,360 | $ 423,067 | $ 474,566 | 584,589 | ||||||||||||||
Stock options compensation cost | $ 348,220 | $ 348,220 | ||||||||||||||||
Weighted average remaining recognition period | 3 years 7 days | |||||||||||||||||
Stock Options [Member] | ||||||||||||||||||
Share based compensation | $ 321,149 | $ 438,039 | ||||||||||||||||
2019 Stock Options [Member] | ||||||||||||||||||
Number of shares granted | 22,916 | |||||||||||||||||
Share price | $ 1.40 | $ 1.40 | ||||||||||||||||
Options exercise price | $ 1.40 | |||||||||||||||||
2013 Stock Option Plan [Member] | ||||||||||||||||||
Common stock issued during period | 1,650,000 | |||||||||||||||||
Common stock shares reserved for issuance | 900,000 | |||||||||||||||||
2011 Stock Option Plan [Member] | ||||||||||||||||||
Common stock issued during period | 750 | |||||||||||||||||
Common stock shares reserved for issuance | 25,460 | 25,460 | ||||||||||||||||
June 2018 Public Offering [Member] | ||||||||||||||||||
Common stock issued during period | 88,431 | |||||||||||||||||
Public Offering [Member] | ||||||||||||||||||
Common stock issued during period | 2,040,000 | |||||||||||||||||
Warrants to purchase shares of common stock | 717,000 | |||||||||||||||||
Warrants exercise price | $ 1.08 | |||||||||||||||||
Proceeds from public offering | $ 2,068,900 | |||||||||||||||||
Public Offering [Member] | Dawson James Securities, Inc [Member] | ||||||||||||||||||
Common stock issued during period | 191,200 | |||||||||||||||||
Warrants to purchase shares of common stock | 57,360 | |||||||||||||||||
Option to purchase units | 191,200 | |||||||||||||||||
Units, exercise price | $ 1.25 | |||||||||||||||||
Private Placement [Member] | ||||||||||||||||||
Common stock issued during period | 400,000 | |||||||||||||||||
Warrants to purchase shares of common stock | 220,000 | |||||||||||||||||
Proceeds from public offering | $ 515,000 | |||||||||||||||||
Series B Preferred Stock [Member] | ||||||||||||||||||
Shares converted | 1,000 | |||||||||||||||||
Directors [Member] | ||||||||||||||||||
Common stock issued during period | 200,000 | 176,744 | 23,256 | |||||||||||||||
Share price per share | $ 1.50 | $ 1.22 | $ 1.72 | |||||||||||||||
Common stock issued during period, value | $ 300,000 | $ 216,264 | $ 40,000 | |||||||||||||||
Vice President Member] | ||||||||||||||||||
Common stock issued during period | 1,500 | |||||||||||||||||
18 Employees and 1 Consultant [Member] | ||||||||||||||||||
Number of shares granted | 286,925 | |||||||||||||||||
Vesting period | 4 years | |||||||||||||||||
15 Employees and 1 Consultant [Member] | ||||||||||||||||||
Number of shares granted | 374,769 | |||||||||||||||||
Vesting period | 4 years |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate, minimum | 1.90% | 2.68% |
Risk-free interest rate, maximum | 2.54% | 2.97% |
Expected volatility, minimum | 105.20% | 116.30% |
Expected volatility, maximum | 106.10% | 137.33% |
Expected life (in years) | 5 years | |
Minimum [Member] | ||
Expected life (in years) | 5 years | |
Maximum [Member] | ||
Expected life (in years) | 10 years |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock Option Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Number of Options, Outstanding, Beginning Balance | 826,267 | 299,938 |
Number of Options, Granted | 286,925 | 534,329 |
Number of Options, Exercised | ||
Number of Options, Forfeited or cancelled | (5,000) | (8,000) |
Number of Options, Outstanding Ending Balance | 1,108,912 | 826,267 |
Number of Options, Expected to Vest in the Future Ending Balance | 338,858 | |
Number of Options, Exercisable | 719,334 | |
Number of Options, Vested, Exercisable and Options Expected to Vest Ending Balance | 1,108,192 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 2.49 | $ 4.40 |
Weighted Average Exercise Price, Granted | 1.55 | 1.45 |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Forfeited or cancelled | 1.15 | 4.59 |
Weighted Average Exercise Price, Outstanding | 2.25 | $ 2.49 |
Weighted Average Exercise Price, Expected to Vest | 2.22 | |
Weighted Average Exercise Price, Exercisable | 2.28 | |
Weighted Average Exercise Price, Vested, Exercisable and Options Expected to Vest | $ 2.25 | |
Weighted Average Remaining Contractual Life, Outstanding Beginning | 6 years 5 months 20 days | 7 years 3 months 29 days |
Weighted Average Remaining Contractual Life, Granted | 4 years 7 months 17 days | 6 years 6 months 29 days |
Weighted Average Remaining Contractual Life, Outstanding | 5 years 7 months 10 days | 6 years 5 months 20 days |
Weighted Average Remaining Contractual Life, Expected to Vest | 5 years 5 months 23 days | |
Weighted Average Remaining Contractual Life, Exercisable | 5 years 8 months 9 days | |
Weighted Average Remaining Contractual Life, Vested, Exercisable and Options Expected to Vest | 5 years 7 months 10 days | |
Aggregate Intrinsic Value, Outstanding | $ 45,830 | |
Aggregate Intrinsic Value, Options expected to vest in the future | 28,309 | |
Aggregate Intrinsic Value, Options exercisable | 17,521 | |
Aggregate Intrinsic Value, Options vested, exercisable and options expected to vest | $ 45,830 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Warrant Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||
Number of Shares, Warrants Outstanding, Beginning balance | 3,050,600 | 1,645,500 |
Number of Shares, Warrants Granted | 640,240 | 1,607,000 |
Number of Shares, Warrants Exercised | (70,230) | (24,000) |
Number of Shares, Warrants Forfeited or Cancelled | ||
Number of Shares, Warrants Outstanding, Ending balance | 3,620,610 | 3,228,500 |
Weighted Average Exercise Price, Warrants outstanding, Beginning balance | $ 2.75 | $ 3.97 |
Weighted Average Exercise Price, Warrants Granted | 1.60 | 1.30 |
Weighted Average Exercise Price, Warrants Exercised | 1.08 | 2 |
Weighted Average Exercise Price, Warrants Forfeited or cancelled | ||
Weighted Average Exercise Price, Warrants outstanding, Ending balance | $ 2.58 | $ 2.65 |
Weighted Average Remaining Contractual Life (Years), Warrants outstanding, Beginning balance | 3 years 10 months 10 days | 4 years 1 month 9 days |
Weighted Average Remaining Contractual Life (Years), Warrants Grants | 4 years 11 months 8 days | 4 years 7 months 21 days |
Weighted Average Remaining Contractual Life (Years), Warrants outstanding, Ending balance | 3 years 7 months 17 days | 4 years 4 months 24 days |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Aug. 14, 2019 | Jun. 26, 2018 | Jun. 02, 2018 | Aug. 14, 2019 | Jul. 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 |
Vesting period | 4 years | |||||||||||
Common stock, shares issued | 1,000,000 | 1,400,800 | 70,230 | 70,230 | ||||||||
Proceeds from public offering | $ 1,679,230 | |||||||||||
Public Offering [Member] | ||||||||||||
Common stock, shares issued | 2,040,000 | |||||||||||
Proceeds from public offering | $ 2,068,900 | |||||||||||
Subsequent Event [Member] | Public Offering [Member] | ||||||||||||
Common stock, shares issued | 2,875,000 | |||||||||||
Proceeds from public offering | $ 1,971,000 | |||||||||||
Subsequent Event [Member] | Annual Meeting of Stockholders [Member] | ||||||||||||
Common stock shares reserved for issuance | 2,400,000 | |||||||||||
Subsequent Event [Member] | 7 Employees and 1 Consultant [Member] | ||||||||||||
Option purchase shares of common stock | 97,500 | |||||||||||
Vesting period | 4 years | |||||||||||
Subsequent Event [Member] | 2013 Equity Incentive Plan [Member] | Option 1 [Member] | CEO and President [Member] | ||||||||||||
Option purchase shares of common stock | 22,916 | |||||||||||
Exercise price per shares | $ 1.40 | $ 1.40 | ||||||||||
Subsequent Event [Member] | 2013 Equity Incentive Plan [Member] | Option 2 [Member] | CEO and President [Member] | ||||||||||||
Option purchase shares of common stock | 22,922 | |||||||||||
Exercise price per shares | $ 0.74 | $ 0.74 | ||||||||||
Subsequent Event [Member] | Amendment to 2013 Equity Incentive Plan [Member] | Annual Meeting of Stockholders [Member] | ||||||||||||
Common stock shares reserved for issuance | 750,000 |