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Sintx Technologies, Inc. (SINT)·Q4 2022 Earnings Summary

Executive Summary

  • SINTX pre-announced Q4 2022 revenue of approximately $0.77M and FY2022 revenue of ~$1.6M; government contracts/grants were the primary driver, with commercial sales in aerospace, energy, dental, and spine contributing the balance .
  • Management highlighted sequential growth throughout 2022 and noted the Maryland (TA&T) acquisition “made a large contribution,” positioning for 2023 opportunities in aerospace/energy; the Salt Lake City Armor facility was expected to be fully operational in Q1 2023 .
  • No formal numeric guidance or EPS was provided for Q4; Wall Street consensus from S&P Global for Q4 2022 EPS and revenue was unavailable, so estimate comparisons cannot be made.
  • Notable corporate actions around Q4 included an October 2022 $4.7M rights offering and a 1-for-100 reverse stock split becoming effective Dec 20, 2022—both relevant to liquidity and listing compliance .

What Went Well and What Went Wrong

  • What Went Well

    • Q4 revenue inflected higher to ~$0.77M, with government contracts/grants at $0.521M and commercial markets (aerospace, energy, dental, spine) at $0.248M; management cited continued QoQ growth across 2022 and contribution from the Maryland acquisition .
    • Strategic positioning for new end-markets: management expects new revenue sources in 2023 from aerospace and energy; Armor facility targeted to be fully operational in Q1 2023 .
    • Management tone was upbeat: “We are very pleased to update our shareholders… The entire SINTX team worked very hard… We are all very excited for the future of SINTX.” — Dr. Sonny Bal, President & CEO .

  • What Went Wrong

    • Profitability remains distant: Q2 and Q3 showed net losses of $2.51M and $2.72M, respectively, underscoring continued losses vs. a small revenue base .
    • Going-concern and capital needs flagged in MD&A, reflecting reliance on capital markets and ongoing operating cash burn .
    • Listing pressure and shareholder dilution: the company completed a 1-for-100 reverse split in December 2022 to address Nasdaq bid-price compliance, and conducted a $4.7M rights offering in October 2022 .

Financial Results

  • P&L snapshot (Q2 and Q3 from 10-Qs; Q4 revenue preliminary only):
MetricQ2 2022Q3 2022Q4 2022 (prelim)
Revenue ($USD Millions)$0.24 $0.43 $0.77
Net Loss ($USD Millions)$(2.51) $(2.72) NA
Diluted EPS ($)$(0.10) $(0.11) NA
Gross Profit Margin (%)—79% NA
  • Q4 2022 revenue composition:
Revenue MixQ4 2022
Government contracts and grants ($USD Millions)$0.521
Commercial revenue – aerospace, energy, dental, spine ($USD Millions)$0.248
Total ($USD Millions)~$0.770
  • FY 2022 totals for select categories (context): government contracts/grants $0.962M; commercial revenue $0.602M; total revenue ~$1.6M (preliminary, unaudited) .

Notes:

  • Q4 figures are preliminary and unaudited per the company’s 8-K .

Guidance Changes

SINTX did not provide numeric financial guidance. Management offered qualitative expectations.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Armor facility operational statusQ1 2023—Expects fully operational in Q1 2023 New qualitative
2023 revenue sources (aerospace, energy)2023—Anticipates new revenue sources via continued growth in aerospace/energy New qualitative

Earnings Call Themes & Trends

No Q4 2022 earnings call transcript was available in company documents; themes below reflect MD&A in Q2/Q3 and Q4 press release statements.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2022)Trend
Revenue drivers and mixQ2 introduced grant revenue; total revenue $0.24M with grant revenue $0.16M; product revenue modest . Q3 total revenue $0.43M; gross margin 79% driven by grants/contracts .Q4 revenue ~$0.77M, of which $0.521M from government contracts/grants; commercial $0.248M .Positive sequential growth; government funding a key lever
Diversification into aerospace/energyCompany pursuing industrial markets; AS9100D/ITAR positioning cited in MD&A .Management anticipates new revenue sources from aerospace/energy in 2023 .Positive pipeline commentary
Armor facility executionSLC armor build-out described; long-dated lease for armor operations .Expects Salt Lake City Armor facility fully operational in Q1 2023 .Advancing toward operation
M&A contribution (TA&T)TA&T acquired 6/30/22; capabilities in 3D printing ceramics and CMCs; broadened revenue base .Management says Maryland acquisition “made a large contribution” to 2022 revenue .Integration contributing
Liquidity and capital marketsGoing-concern caution; reliance on capital raises; Nasdaq bid-price notice .Rights offering ($4.7M) and reverse split (1-for-100) around Q4 period .Ongoing capital dependence

Management Commentary

  • Strategic positioning and tone: “We are very pleased to update our shareholders and other partners on our progress in 2022… We are all very excited for the future of SINTX.” — Dr. Sonny Bal, President & CEO .
  • 2023 outlook levers: anticipated new revenue sources in aerospace/energy; Salt Lake City Armor facility expected to be fully operational in Q1 2023 .
  • Broader strategy context from MD&A: expanding use of silicon nitride beyond spinal fusion into industrial/armor markets; AS9100D certification and ITAR registration to support aerospace entry; TA&T acquisition enhances advanced ceramics/CMCs and coatings capabilities .

Q&A Highlights

  • No earnings call transcript was available to review; therefore, no Q&A themes or management clarifications can be summarized.

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2022 EPS and revenue was unavailable; as a result, we cannot present beat/miss analysis versus estimates.

Key Takeaways for Investors

  • Revenue momentum improved sequentially through 2022, culminating in a preliminary Q4 of ~$0.77M, with government contracts/grants as the principal driver; commercial channels remain small but diversified across aerospace/energy/dental/spine .
  • The mix shift toward grants/contracts supported high gross margin in Q3 (79%); however, absolute scale remains limited, and profitability is not in sight given Q2–Q3 losses of $2.51M–$2.72M .
  • Execution catalysts into 2023 include onboarding aerospace/energy revenue and activating the Salt Lake City Armor facility, but these are qualitative, not numeric, and carry execution risk .
  • Balance sheet and listing management were active around Q4 (rights offering and reverse split), underscoring ongoing capital needs and Nasdaq compliance priorities .
  • The TA&T acquisition appears to be contributing to revenue and capabilities, potentially improving the commercial pipeline across industrial and biomedical ceramics .
  • With no consensus estimates available and limited disclosure for Q4 beyond revenue, traders should focus on contract/grant flow, commercial order cadence in aerospace/energy, and tangible Armor production milestones as the next stock-move catalysts .

Citations:

  • Preliminary Q4/FY 2022 revenue mix and outlook; CEO quote .
  • 8-K items referencing the press release .
  • Q3 2022 financials and gross margin commentary .
  • Q2 2022 financials .
  • TA&T acquisition background and capabilities .
  • Liquidity/going-concern commentary .
  • Rights offering (Oct 2022) .
  • Reverse split (1-for-100) effective Dec 20, 2022 .