though with no particular explanation.Looks like only traders on investorshub.com message board have an explanation on the current up move. According to some, the huge gains were due to a reverse merger and the company was “a high tech incubator”. Most probably, these statements pumped up SGLB stock price even more, however, none of these have been officially confirmed by the company.
In fact, the latest news by Sigma Labs was released at the beginning of this month, stating that the company was to participates in a technology scouting event identified by Dresser-Rand Group, Inc. Though, after this announcement was made, no further information on Sigma was published and no one is familiar with its up to date activities. In this case, how long can the current up move survive?
Sigma Technologies is engaged in surface functionalization technologies that utilize non-solvent and non-water based treatment and coating techniques to modify surfaces. According to its 10-Q report, as of end-September the company’s assets were higher than its liabilities, though the stockholders’ deficit has increased notably, as well as the net loss.[BANNER]
As Sigma has been recently formed and has not yet achieved profitable operations, the management of the company claims that its ability to continue as a going concern is dependent on expanding income opportunities and on profitable operations. As of September 30, 2010 SGLB has raised $1,000,000 through the sale of 50,825,000 shares of its common stock, but the team states this is not sufficient to meet the current and future cash requirements. Thus, the company will need to raise additional funds through sales of common stock. However, there is no guarantee the amounts will be sufficient to meet the company’s needs.
