Company: SINT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010496
Chunk: 6

Company: Sintx Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 6
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, spinal fusion devices, and other surgical tools. If we transition away from industrial applications,
we anticipate this strategic shift will enable us to better serve the medical sector, address critical unmet needs, and position SINTX
as a leading provider in the medical device market. By focusing on partnerships and collaborations with healthcare institutions and industry
leaders, SINTX is positioned to expand its footprint in the medical device sector and drive shareholder value through sustainable, high-impact
innovations, however, such a transition has not been approved by the Board of Directors, nor can such approval or successful transition
be assured.

SINTX Technologies has initiated discussions with
the leaseholder for our Armor location in Salt Lake City, Utah, to explore options for reducing the Company’s overall lease liability.
This action aligns with our broader strategy to streamline operating expenses and the option to reallocate resources towards growth initiatives
in the medical device sector. While these discussions reflect our commitment to financial optimization, there can be no assurance that
negotiations will lead to a reduction in the existing lease liability. The outcome of these discussions remains uncertain, and SINTX will
continue to evaluate additional measures to manage long-term obligations in alignment with our strategic objectives.

On August 8, 2024, the Board of Directors approved
a plan to implement a Company-wide reduction in the workforce. This decision is part of the Company’s ongoing strategic review of
its operations aimed at improving operational efficiency and reducing costs.

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 incurred an impairment charge of approximately $4.6 million during
the year ended December 31, 2024. This charge primarily relates to the write-down of certain long-lived assets associated with the armor
plant to their estimated fair value.

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