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Sintx Technologies, Inc. (SINT)·Q4 2023 Earnings Summary

Executive Summary

  • Q4 2023 unaudited revenue was approximately $0.902M, up 18% year over year; full-year 2023 revenue was ~$2.6M (+68% YoY; +333% vs 2021) .
  • Commercial revenue outpaced government contracts in Q4 for the first time since acquiring TA&T (commercial $0.582M vs government $0.320M), driven by aerospace, biomedical, and energy markets .
  • Directional 2024 outlook calls for continued revenue growth from new product adoption, technology development, and government opportunities; armor operations targeted to re‑engage in 2024 .
  • No Q4 2023 earnings call transcript was filed; management communications came via 8‑K/press releases and the FY 2023 10‑K .

What Went Well and What Went Wrong

What Went Well

  • Commercial revenue mix shift: “Customer adoption of new product offerings led to commercial revenue exceeding government contracts in Q4 2023 – for the first time since acquisition of TA&T” .
  • Patent portfolio strengthening: six new U.S. antipathogenic patents in the last year, expanding applications across implants, PPE, and antifungal composites; “we look forward to…commercializing these technologies” (VP R&D) .
  • Market expansion: Management highlighted continued restructuring and expansion into defense, aerospace, and industrial markets for advanced ceramics .

What Went Wrong

  • Operational disruption: A sintering furnace used for SINTX Armor overheated in Oct 2023; management is replacing the furnace and temporarily outsourcing sintering, expecting the repaired furnace to be running by Q4 2024 (insurance coverage indicated) .
  • Profitability remains a headwind: Q3 2023 net loss was $3.190M with basic EPS of -$0.76; Q2 2023 net loss was $2.455M with basic EPS of -$0.61 .
  • Listing compliance risk in Q4: On Oct 20, 2023, NASDAQ notified SINT of the bid price deficiency (<$1.00), with timelines to regain compliance (company considering options) .

Financial Results

Metric (USD)Q2 2023Q3 2023Q4 2023 (Prelim)
Total Revenue ($MM)$0.508 $0.678 $0.902
Product Revenue ($MM)$0.235 $0.168 —
Grant & Contract Revenue ($MM)$0.273 $0.510 —
Cost of Revenue ($MM)$0.104 $0.117 —
Gross Profit ($MM)$0.404 $0.561 —
Gross Margin %79.5% (derived from )82.8% (derived from )N/A
Net Income (Loss) ($MM)$(2.455) $(3.190) N/A
Basic EPS ($)$(0.61) $(0.76) N/A

Notes:

  • No Q4 2023 EPS/margin disclosed in the preliminary revenue release; full-year 10‑K does not provide a discrete Q4 EPS/margin breakout .

Segment breakdown (Q4 2023):

SegmentQ4 2023 Revenue ($MM)
Commercial$0.582
Government Contracts$0.320

KPIs (mix shift, qualitative):

  • Commercial share > Government for the first time since TA&T acquisition .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (directional)2024None provided“Anticipates continued revenue growth in 2024” Initiated directional outlook
Armor operations2024N/A“Expects to re-engage the ballistic and body armor market during 2024” Initiated directional outlook
Growth drivers2024N/ANew commercial product adoption, technology development, and government contracts Detailed drivers

No quantitative ranges (revenue, margins, OpEx, etc.) were provided.

Earnings Call Themes & Trends

No Q4 2023 earnings call transcript was filed; themes drawn from Q2/Q3 10‑Qs, Q4 press releases, and 10‑K.

TopicPrevious Mentions (Q2 2023)Previous Mentions (Q3 2023)Current Period (Q4 2023)Trend
Revenue mix and grantsProduct + grants growth (Q2 revenue $0.508MM; grants $0.273MM) Revenue $0.678MM; grants $0.510MM Commercial > government (Q4 prelim mix shift) Positive mix shift to commercial
Aerospace demandOrders for silicon nitride aerospace components Continued growth in aerospace components 10‑year LTA with leading aerospace manufacturer announced Jan 2024 (post-Q4) Strengthening pipeline
Armor operationsBuild-out and operations underway Ongoing, but furnace failure noted in Oct Plan to re‑engage ballistic/body armor in 2024 Near-term recovery plan
R&D/NIH GrantsNIH-funded research on SN‑PEEK Continued R&D; mix of patent and prototype work NIH Phase II grant ~$2.0MM awarded Oct 11, 2023 Increasing R&D funding
IP expansion——Six new U.S. antipathogenic patents (face masks, antiviral methods, antifungal composites) Expanding defensible IP
Regulatory/listing——NASDAQ bid price deficiency notice in Oct Listing risk highlighted

Management Commentary

  • “Customer adoption of new product offerings led to commercial revenue exceeding government contracts in Q4 2023 – for the first time since acquisition of TA&T.”
  • “SINTX anticipates continued revenue growth in 2024 driven primarily by new commercial product adoption, innovative technology development, and government contract opportunities.”
  • “These patent grants and pending patent applications reflect SINTX’s commitment to protecting the intellectual property… We look forward to…commercializing these technologies and broadening the applications that benefit from silicon nitride.” – Dr. Ryan Bock, VP R&D .
  • The company “continued its successful restructuring and expansion into the defense, aerospace, and industrial markets for advanced ceramic materials and related technologies.”

Q&A Highlights

  • No Q4 2023 earnings call transcript was available; no Q&A disclosures filed .
  • Guidance clarifications and tone were communicated via the Jan 23 revenue update and 10‑K; directional commentary emphasized 2024 revenue growth, commercial adoption, and re‑engaging armor .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2023 EPS and revenue was unavailable at the time of query; results can only be compared to SINTX’s internal preliminary revenue disclosure .
  • Given the absence of consensus data, estimate revisions and beat/miss analysis are not possible.

Key Takeaways for Investors

  • Q4 2023 preliminary revenue of ~$0.902M marked 18% YoY growth and a pivotal shift as commercial revenue surpassed government contracts, indicating broader product-market fit across aerospace/biomedical/energy .
  • The 2024 setup is oriented to growth via commercial adoption and government awards; watch for execution on the armor re‑engagement plan and recovery from the furnace outage (outsourcing sintering near term; repaired furnace targeted by Q4 2024) .
  • Strengthening IP positions SINTX for licensing/OEM opportunities in antipathogenic applications (PPE, implants, coatings), potentially diversifying revenue streams beyond current product sales .
  • Profitability remains a challenge; recent quarters show sizable operating losses and negative EPS—monitor gross margin traction as commercial mix improves and scale effects emerge .
  • Listing compliance risks surfaced in Q4 with NASDAQ’s bid price notice; management indicated openness to remedial options—track subsequent compliance actions and capital market activity .
  • Near-term trading: momentum catalysts include additional commercial wins/LTAs, NIH/government awards, and IP commercialization updates; risks include operational execution in armor, cash needs, and listing compliance .
Sources:  
- Q4 2023 preliminary revenue press release and 8‑K (Jan 23, 2024): **[1269026_0001493152-24-003385_ex99-1.htm:0]** **[1269026_0001493152-24-003385_form8-k.htm:1]** **[1269026_0001493152-24-003385_form8-k.htm:2]**  
- IP press release and 8‑K (Jan 4, 2024): **[1269026_0001493152-24-000514_ex99-1.htm:0]** **[1269026_0001493152-24-000514_ex99-1.htm:1]** **[1269026_0001493152-24-000514_form8-k.htm:1]** **[1269026_0001493152-24-000514_form8-k.htm:2]**  
- 10‑K FY2023 (Mar 27, 2024): aerospace LTA and armor furnace detail **[1269026_0001493152-24-011546_form10-k.htm:10]** **[1269026_0001493152-24-011546_form10-k.htm:13]**; corporate/operational context **[1269026_0001493152-24-011546_form10-k.htm:0]**-**[1269026_0001493152-24-011546_form10-k.htm:2]**  
- 10‑Q Q3 2023 (Nov 14, 2023) financial statements and NASDAQ notice **[1269026_0001493152-23-040669_form10-q.htm:2]**-**[1269026_0001493152-23-040669_form10-q.htm:5]** **[1269026_0001493152-23-040669_form10-q.htm:23]**-**[1269026_0001493152-23-040669_form10-q.htm:27]** **[1269026_0001493152-23-040669_form10-q.htm:18]**  
- 10‑Q Q2 2023 (Aug 8, 2023) financial statements **[1269026_0001493152-23-027190_form10-q.htm:2]**-**[1269026_0001493152-23-027190_form10-q.htm:5]** **[1269026_0001493152-23-027190_form10-q.htm:22]**