NextTrip, Inc. Q1 FY2021 earnings call

• Q1 was about acceleration, validation, and execution with revenue growth due to doubled PrintRite3D unit sales.
• Marketing programs generated month-over-month increases in inquiries and leads.
• Hired 10 new employees including application engineers, business development staff, etc.
• Collaboration with NIST contributed to features in PrintRite3D 7.0 like temperature monitoring.
• Validated by major players in aerospace, defense, oil & gas, etc.
• Plan to turn single orders into multiple system orders, expand distribution, hire talent, and attack market holistically.
• PrintRite3D 7.0 to be released at AMUG Conference with features like temperature monitoring, machine learning, etc.

Sigma Labs' revenue for the first quarter of 2021 totaled $458,000, compared to $222,000 in the first quarter of 2020, driven by a doubling of PrintRite3D unit sales. Gross margin for Q1 2021 was 72%, up from negative $23,000 in Q1 2020. Operating expenses in Q1 2021 were $1.78 million vs. $1.56 million in Q1 2020, primarily due to hiring 10 employees. Other income in Q1 2021 was $801,000 from an unrealized gain on derivative liability. Cash used in operating activities was $1.24 million in Q1 2021 vs. $1.53 million in Q1 2020. Net loss was $712,000 in Q1 2021 vs. $1.9 million in Q1 2020. Cash balance at March 31, 2021 was $16.8 million.

• Expect material revenue increase in the second half of 2021 from multi-unit sales.
• Target gross margin of 60%-65% as revenue scales with OEM partnerships.
• Cash burn expected to remain stable or decrease as demand grows.

• Forward-looking statements subject to risks and uncertainties from SEC filings.
• Dependence on successful adoption of 3D metal printing by manufacturers.
• Uncertainty in timing and velocity of market adoption.
• Competition from other quality assurance solutions in 3D printing.

Q: When might see significant revenue turn?

A: Mark Ruport stated the second half of 2021, driven by multi-unit sales, particularly in aerospace, defense, and space exploration.

Q: Which verticals show most optimism?

A: Mark Ruport mentioned aerospace, defense, space exploration, and Department of Defense initiatives as the most active verticals.

Q: Progress on OEM side?

A: Mark Ruport said they're making good progress with active deals and a good pipeline, with 2 selling actively and several early-stage initiatives.

Q: Gross margin future?

A: Frank Orzechowski said target gross margin is 60%-65% as revenue scales with OEM partnerships, with current 72% inflated due to historical factors and deal wind-downs.

Q: New metals impact?

A: Mark Ruport stated Sigma Labs is agnostic to metal type but needs to build knowledge base on new metals, with a repeatable process to adapt to new metals quickly