Company: SINT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010496
Chunk: 24

Company: Sintx Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 24
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, there is a global need to improve protection against pathogens in everyday life. SINTX believes that by
incorporating its unique composition of silicon nitride antipathogenic powder into products such as face masks, drapes, filters,
sutures, and wound care devices, it is possible to manufacture surfaces that inactivate pathogens, thereby limiting the spread of
infection and disease. The discovery in 2020 that SINTX silicon nitride inactivates SARS-CoV-2, the virus which causes the disease
COVID-19, has opened new markets and applications for our material. We presently manufacture advanced ceramic powders and components
in our manufacturing facilities based in Salt Lake City, Utah. The SINTX Salt Lake City facility is registered with the FDA, is cGMP and ANVISA RDC 665 compliant, as well as being
ISO 9001:2015, ISO 13485:2016 certified, and ASD9100D certified. The Company’s products are primarily sold in the United States.

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Components of our Results of Operations

We manage our business within one reportable segment,
which is consistent with how our management reviews our business, makes investment and resource allocation decisions and assesses operating
performance.

Revenue

Our product revenue is derived from
the manufacture and sale of products. These revenue sources primarily include coatings, materials, and components for aerospace and
medical device markets, toll processing services, and government contracts and grants. We generally recognize revenue from sales
where control transfers at a point in time as the title and risk of loss passes to the customer, which is at the time the product is
shipped. In general, our customer does not have rights of return or exchange.

We believe our product revenue will increase as we
secure opportunities to manufacture third party products with silicon nitride.

We derive grant and contract revenue from awards provided
by governmental agencies.

Cost of Revenue

The expenses that are included in cost of revenue
include all in-house manufacturing costs for the products we manufacture.

Gross Profit

Our gross profit measures our product revenue relative
to our cost of revenue.

Research and Development Expenses

Our research and development costs are expensed as
incurred. Research and development costs consist of engineering, product development, clinical trials, test-part manufacturing, testing,
developing and validating the manufacturing process, manufacturing, facility and regulatory-related costs. Research and development expenses
also include employee compensation, employee and non-employee stock-based compensation, supplies and materials