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The average net profit from software sales and services is 20.2% for public companies. Mark must be a hellova lot smarter than he appears to be netting 80%....and you know this how?
I've become accustomed to most of the outrageous claims for Sigma Labs future but to claim that it is "low risk" would strain the credibility quotient of even the most ardent believers.
I don't believe you are correct. The note holder has not done the conversion to the common shares and likely will not. The S-1 only applies if the note holder converts and that does not appear to be in the cards unless a miracle occurs between now and October.
Well known throughout the industry....software is great.......increasing need for this level of quality assurance....no significant orders. What's wrong with this picture? It's certainly true that Mark and his staff have taken every opportunity to showcase his software to industry leading potential customers. Doesn't it seem strange to you that, if in fact, SGLB's capabilities are as leading edge as they claim that there would be wide recognition of this fact among these industry leaders and whether or not they had fully entered mass production that they would be bidding up the stock price in anticipation of this dominance? Zip-zero interest in the stock and zip-zero in terms of significant orders. Doesn't compute to me.
New Age Beverages Acquires Premier Micronutrient Corporation
Martín Caballero May. 18, 2017 at 5:30 pm
inShare
New Age Beverages is continuing upon its aggressive expansion strategy and today announced that it has acquired Premier Micronutrient Corporation (PMC), a maker of nutrient-dense supplements.
In picking up PMC, founded in 2000 to develop formulations in cooperation with the U.S. Department of Defense and National Aeronautics and Space Administration (NASA), New Age secured intellectual property — including 10 major patents and patents pending in various areas of micronutrient-based treatments — that it plans to use to fuel product innovation in both the short and long term. The no-cash agreement brings 100 percent of the assets and interests of PMC, its portfolio of products, intellectual property, and the formulas for existing and planned healthy functional beverage products for the pharmacy, medical, sports and military, and other industries.
The move marks the third acquisition for New Age this year, following the purchase of Maverick Brands, makers of Coco Libre, and the full assets of Marley Beverage Company in April.
Speaking with BevNET, New Age CEO Brent Willis said that the PMC acquisition was another step forward in the company’s goal to be the global leader in healthy functional beverages, and that the research and scientific expertise gained in the deal will allow New Age to continue exploring new sales opportunities, including those within the medical industry, with less competitive intensity.
“Today, the products that address things like cardiovascular health or weight management have a delivery system of pills and powders,” he said. “That’s the evolution: it goes from pills to powders to a ready-to-drink, more consumer friendly and more efficacious delivery system.”
In addition to patents for micronutrient formulations for diabetes treatment, radiation, and other applications, PMC brings medical expertise, research, clinical trial insight and a strong reputation within the scientific community into the fold at New Age’s Health Sciences Division.
PediaAde, an organic coconut water-based rehydration drink, will be the first product to be released with input from the division when it debuts later this summer. Willis said the beverage, formulated to alleviate symptoms associated with significant dehydration, is indicative of the company’s strategy of identifying existing consumer behaviors and segments and designing new products around them.
“When you have the credibility and the science, and you start in the medical channel and pharmacy channel, ultimately when you want to take it out to broad based consumers it’s just that much more supported in terms of the benefits,” said Willis. “We want to be building off of existing large need states and segments versus coming up with crazy healthy niches.”
Willis pointed toward a soon-to-be-released new product, developed by the Health Sciences division in conjunction with scientists at the Mayo Clinic and the Cleveland Clinic, aimed at reducing post-surgery stress and recovery time.
“The public is demanding that credible information done with legitimate studies, which we have, and that drives a hunger for products that are not a pill that a doctor prescribes from a pharmacy,” said Dr. Jerry Haase, chief scientific officer for the Health Sciences Division. “The number of interesting products that fill a definite need in the marketplace that we are developing and will develop is quite an impressive list.”
Reaffirming the company’s goal to push differentiated products in segments relatively unexplored by its competitors, Willis said the PMC acquisition was indicative of his overall vision for New Age’s place on the industry landscape.
“We have about an $85 million run rate with revenue,” he said. “We can’t afford to waste time and do little niche kind of things.”
Thanks Ted. Great post.
"You have to remember this is a startup"....now well into it's eleventh year of operation without turning even a single quarter of profitability. Do they still qualify as a "startup" in year 15? Year 20?
I'm talking about "real orders" in quantity. The kind where you receive real money that shows up on the balance sheet and propels you out of drowning in red ink. Wake me up when they start getting those kind of orders. Until then I have very serious doubts that the software lives up to SGLB's claims.
KMey I'm having a very hard time swallowing your conclusions. As I understand it you have talked to various specialists from SGLB's competitors and inquired whether their software will perform the functions that SGLB's claims to perform. Your conclusion has been that they do not.
To date SGLB has been involved in dozens of joint ventures, evaluations, 3rd party agreements, etc. that involved the evaluation of their software. The purpose of these agreements was to get the software out into the real world and gain feedback that would validate the performance of the software in real world settings and would provide guidance for further enhancements. Have you ever noticed how silent SGLB has been on feedback coming back from end users in theses evaluation trials? Don't you think that if they received feedback from an industry leader that said "Gosh your software did everything you claimed it would and we plan to adopt it as a standard" that this would have been made public? Instead no orders of any size have ever come out of the dozens of test and evaluation projects undertaken to date.
You claim on the on the one hand that this is because the market has not entered mass production and hence SGLB's solutions are not mandatory. On the other hand you seem to believe that mass production in many facilities is literally only months in the future. Do you really believe that a production shift of this magnitude would be undertaken without months (more likely years) of testing ahead of time? Wouldn't it make sense that a key component of the testing would involve all aspects of quality assurance of the finished product? If SGLB was going to be a key component of the solution there would have been significant product orders showing up before now for this test phase. In my opinion either there is a problem with performance reliability or claims for some of the functionality are simply not true. Nothing else makes sense to me.
Having instigated and promoted this "combination of companies" I simply can't imagine Mark allowing anyone to take away the overall leadership role from him. It's frightening to imagine him attempting to successfully organize and lead a diverse conglomeration of companies that are geographically dispersed for the benefit of stockholders. A clear recipe for disaster.
Was it really necessary for this S-1 to be almost 100 pages long to legally describe the offering? It seemed to contain a good deal of repetition, at least to me. I finally gave up trying to understand the impact it would have on shareholders....or was that the intent in the first place?
Ted:
Yes, your numbers are what I get as well. I was only making the point that the 10% interest rate is not the real rate by a long shot. I agree that if they pay it off early they get dinged far worse (approaching 100% interest if payed off back in February). This is the same money that Mark turned around and loaned to Morf at (apparently) a true 7% rate. Mark must believe that this association with Morf will pay handsome dividends.
Really? Gee when Someone gives me a $100 and I have to give them back $122.20 in a year I consider that interest. Call it anything you like? Cost of funds?? etc. You are really reaching out here Silver!!
Not exactly. SGLB will pay 22.2% interest on the note if held to maturity. They netted $900,000 and will be required to repay $1,000,000 in principle plus $100,000 in interest. That's 22.2% on $900,000 for one year.
Max read more carefully. I think PISD comments are pretty much on target......and .5 million is $500,000. Don't forget the $1,000,000 (which net SGLB $900,000) from last October was a loan and has to be repaid no later than October at the $1,000,000 face amount plus another $100,000 in interest. They have a steep quarterly expense run-rate with little revenue coming in. We still don't know whether they have bought printers as earlier planned with any of the offering proceeds. If so, they may not have a great deal of wiggle room until the revenue blossoms or they are forced to dilute once again.
Driftin I believe the stock price is pretty much at a tipping point. Certainly some positive revenue news would cause a dramatic increase in share price. On the negative side, it is a given that Q-1 results will be dismal. I don't expect much better for Q-2, with the earliest being Q-3 that you will see much impact from current contracts. If you throw in the uncertainties about how wisely they are going to sepnd the recent capital raised, exactly what this "combination of companies" implies, and the real possibility of further dilution I believe that the stock price has the potential to move strongly in either direction.
Driftin. Key questions to be sure. I would add a third and that is what precisely is meant by the term "combination of companies" when referring to Morf, Jaguar and Level 3? What are the intentions and timeline here?
"I've invested accordingly.".....and we all know how that has worked out.
Kanya. You would be most welcome. Just hard to understand how you would even consider traveling such a distance and others much closer at hand are content to stay at home and fantasize about the future.
"What do you expect that we would affect if we were to come?" Not a damn thing in terms of SGLB's actions, but you would come away with a better awareness of how sound your investment really is. I'd particularly like for you to come Jeff since you are such an unabashed supporter. Come and ask some tough questions. Listen to the long-winded weasel-word responses you receive and then, just perhaps, reconsider whether you feel comfortable with this individual overseeing your investment. You can't sleep at my house but I'll take you to the best Irish pub in Albuquerque and buy you all the Guiness you can drink.
June 7 is rapidly approaching and no one has indicated that they plan to attend the annual meeting. With all of the unanswered questions surrounding the stock you would think that at least one person with a sizeable investment here would find time to attend the meeting and ask the questions face-to-face. I am not planning to attend but would be happy to recommend hotels, restaurants, transportation, etc. for anyone who does plan to attend. It's hard for me to understand with the money many of you have on the line here why you would not want to have some face-time with Mark Cola.
Santa Fe soundly defeated a 2 cent soda tax per ounce referendum yesterday. Both sides brought in lots of outside money.
From the Dawson James website: "Our reputation for integrity and quality is earned one client at a time”.........Apparently this is still a work in process.
Hope to Retire Early. I think that is a pretty good description. What I find doing a bit of research is that:
Jaguar is primarily a machine shop with about 12 employees and revenue of 1.1 million
Level 3 Inspection has about 15 employees and revenue of 1.5 million
Morf 3D has fewer than 10 employees and revenue numbers are unavailable
SGLB has about 14 employees with 1 million dollars in revenue last year.
It would appear that both individually and collectively they are not profitable at this point in time. The March presentation by SGLB refers to "a combination of companies". It does not talk about mergers or acquisitions however further on it projects that while individually these enterprises might expect a 20% annual growth rate the "combination" would grow at a much faster rate because of the ability to feed off of each others customer base. So, what exactly does "combination" imply? These companies are located geographically distant from each other and occupy very different segments of the market. Does "combination" really mean merger or acquisition or something very different? Hard to tell at this point. Hopefully this will be revealed in Mid May.
This is a very convincing argument to me and the reason I'm not selling.
"and led by Sigma Labs" and that is supposed to be a positive? Led by a manager who has yet to achieve profitability since his company was founded. Who has yet to achieve a major revenue generating order? Who has clearly demonstrated time and again his complete lack of business sense. I can't disagree more strongly.
Agree. Q-1 is going to be another dismal quarter.
What of the plans to purchase more machines? What of the payback on the outstanding loan (the one they are paying 10% interest on, but loaned out at 7%). Maybe the reason they need more shares is to make sure there is enough in the kitty to pay out thse stock bonuses. They did limit themselves to only giving out a maximum of 300,000 shares per individual in any calendar year.That's just their way of being conservative with shareholders money.
Silver I thought you had come to that point months, if not years ago. You certainly get credit for your strong belief in their future. I continue to believe the future is very much a toss up which could easily go in either direction. How many times now have investors here thought that finally the company has turned the corner only to have the share price continue to sink? I'll take my chances on "missing out".
Exactly. That's the way they have always operated and will do so this time again.
Jackie, get real. A $90,000 salary to start (you seem to forget this is New Mexico where the average salary for this type of position is more like $65-70,000). AND a 2,000,000 share award of stock. That's blatant nepotism. You can paint it anyway you choose but it is one more example of a Board that sees no evil, nor hears no evil.
I stand by my comments. The committee structure has existed for some time with old and new directors alike. The issue is the exercise of business judgement, which both some of the old and most of the new would seem to possess but all fail to impart to Mark.
Yes, it does appear that I was mistaken and this is a combined holding and not just Amanda's shares. I based my statement on the separate line items reported for each in the proxy. You would have to admit that was confusing at best. I do stand by my statement that neither Amanda, Mark, nor any of our current or past Board mambers have ever purchased a single share on the open market. Easy to accumulate shares if someone else is handing them out.
Given that the shares owned are joint holdings how would you explain this statement from the 2015 10K. I would assume that if Mark's and Amanda's shares were to be merged in a joint trust that this is something that they would do privately and we would not see a statement that said "shares were issued in connection with the commencement of her employment". The fact that the joint trust exists logically should have nothing to do with her employment.
"(6) 2,000,000 shares of common stock were issued to Amanda Cola during 2014 in connection with the commencement of her employment with the Company. Of those shares, 500,000 vested during 2014 and were valued at $0.129 per share, or $64,500. Another 500,000 shares vested during 2015 and were valued at $0.0579 per share, or $28,950." Page 25, 2015 10K.
Not sure if everyone picked up on this regulation that the Board adopted back in October dealing with the executive incentive plans: "On October 14, 2016, our Board of Directors adopted an amendment to the 2013 Plan to fix the limitation on awards of stock options and stock appreciation rights during any twelve-month period to any one participant, which we refer to as the “Section 162(m) limitation,” at 300,000 shares." Note that they are restraining themselves to "limit" the awards of options to any single participant within a 12 month timeframe to 300,000 shares. At todays prices that's a "limitation of $840,000 per award per individual. Good to see them holding things in check.
"There seems to be no oversight on MC and how he spends money." Therein lies the crux of the problem in my opinion. In the early days we had a Board made up exclusively of insiders and Mark ran the company as his private business. Over time the company has attracted Board members with impressive credentials who were entirely independent from the company. Unfortunately, none of them have stepped up and taken any interest whatsoever in how Mark ran the business. As a result we have a scientist, who thinks he has business skills, operating an enterprise with no apparent oversight of any kind. The result has been a mismash of bad business decisions coupled with blatant nepotism in how family members are monetarily rewarded. Mark seems to have a knack for selecting Board members that are happy to stay at arms length from the operation of the business. So long as this continues nothing is going to change.
"(6) 2,000,000 shares of common stock were issued to Amanda Cola during 2014 in connection with the commencement of her employment with the Company. Of those shares, 500,000 vested during 2014 and were valued at $0.129 per share, or $64,500. Another 500,000 shares vested during 2015 and were valued at $0.0579 per share, or $28,950." Page 25, 2015 10K
"Living is easy with eyes closed" John Lennon
"Most of them have a larger position in the number of common shares than the rest of us". Yes, they certainly do, but unlike you they didn't purchase a single one of them on the open market. Amanda Cola owns 188,579 shartes of Sigma stock (not counting options and awards that have yet to vest). At today's closing share price that's $528,021.12 worth of stock. She was awarded these shares over a three year period in addition to an extremely generous compensation package (particularly by New Mexico standards). Use your wildest imagination and help me understand what she has done to justify this level of compensation other than be Mark Cola's wife. If the compensation is unjustified (and I believe it clearly is) then how would you label people who engage in this sort of deceit with your money? You heard what I think of them. What do you think?
Max You want to split hairs. Fine. Her "total compensation" package doubled with simply a change in title (not responsibilities). She now owns over 4% of the company's outstanding shares (none of which she purchased on the open market), after starting 3 years ago as an office manager. Give me a break!! If that isn't nepotism in the most flagrant manner, then I don't know what is. Be a bit fair yourself and recognize what slimeballs these people really are.
I guess everyone thinks it's swell that the authorized share count will quadruple and that Mark has doubled his spouses salary with no change in responsibilities. Beats me.