11. Subsequent Events

Reverse Split

On May 23, 2024, the Company announced that its board of directors had declared a 1-for-200 reverse stock split of the company’s common stock. The reverse stock split became effective on May 28, 2024 (the “Effective Date”) at 12:01 AM Eastern. The company’s common stock began trading on a split-adjusted basis on May 28, 2024, under the current trading symbol “SINT.” The reverse stock split was primarily intended to bring the Company into compliance with the minimum bid price requirements for maintaining its listing on the Nasdaq Capital Market. The new CUSIP number for the Company’s shares of common stock following the reverse split will be 829392 703. As a result of the reverse stock split, every 200 shares of the Company’s common stock issued and outstanding were automatically reclassified into one new share of common stock. Proportionate adjustments were made to the conversion and exercise prices and the number of shares underlying the Company’s outstanding warrants, preferred stock, equity awards and the number of shares reserved under the Company’s equity incentive plan. The reverse stock split did not affect the number of authorized shares of common stock or the par value of the common stock. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the company, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. Any fractional shares of common stock resulting from the reverse stock split will be rounded up to the nearest whole share and no stockholders will receive cash in lieu of fractional shares.

NASDAQ Compliance

On June 11, 2024, the Company received notice from The Nasdaq Stock Market LLC (“Nasdaq”) that the Company has evidenced compliance with the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”). The Company remains subject to a “Mandatory Panel Monitor,” as that term is defined in Listing Rule 5815(d)(4)(B), for a period of one year from June 11, 2024. If, within the one-year period, the Company fails to satisfy the minimum $1.00 closing bid price threshold for 30 consecutive business days, Nasdaq will issue a delist determination rather than provide the Company with a grace period to regain compliance with the Bid Price Rule. In that event, the Company would have the opportunity to request a new hearing to address the deficiency.

Appointment of CEO and President

On August 1, 2024, the board of directors appointed Eric Olson to the office of Chief Executive Officer and President. B. Sonny Bal, MD, continues to serve on the Company’s board of directors in the position of Chairman.

Company-Wide Reduction in Workforce

On August 8, 2024, the Board of Directors approved a plan to implement a Company-wide reduction in workforce. This decision is part of the Company’s ongoing strategic review of its operations aimed at improving operational efficiency and reducing costs. The reduction in force will reduce the number of employees of the Company from 40 to 23. David O’Brien’s employment as the Company’s Executive Vice President and Chief Operating Officer was terminated as part of the reduction in force. The Company is currently assessing the costs associated with this decision, including employee severance. These costs will be disclosed in the Company’s future financial statements as more information becomes available.

Cease Efforts to Make the Armor Plant Operational

On August 12, 2024, the Board of Directors of the Company approved a plan to cease efforts to make the armor plant operational. This decision was made to streamline operations and focus on core business areas that align with the Company’s long-term strategic goals. The armor plant has not been fully operational since the acquisition of the armor equipment in July 2021 and has been completely shut down since October 2023 due to the malfunctioning of the sintering furnace.

In connection with this decision the Company expects to incur an impairment charge of approximately $4.5 million. This charge primarily relates to the write-down of certain long-lived assets associated with the Armor plant to their estimated fair value. The impairment charge will be reflected in the Company’s financial statements for the quarter ended September 30, 2024. The Company is currently assessing other costs associated with this decision, including employee severance and other exit costs. These costs will be disclosed in the Company’s future financial statements as more information becomes available.

The Company’s insurance carrier has determined that a covered loss occurred when the sintering furnace malfunctioned, and coverage is available for the Company’s repair of the sintering furnace. However, the Company’s efforts to fully repair the damaged furnace continue to be delayed. Management will work with the insurance company to continue to fund the repair of the furnace. When the furnace is fully repaired, management hopes to sell the furnace, and related equipment, to a third party. However, the full repair and sale of the furnace, and related equipment, cannot be assured. Therefore, in the calculation of the $4.5 million estimated impairment charge, management has assumed no proceeds will be received from a potential sale of the furnace and related equipment.