Sigma Labs Profile

DISCLAIMER: This information is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy any security or related financial instrument or to participate in any trading strategy. The summary may include “forward-looking statements” with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee accuracy. This document has been furnished to you solely for your information. Management & Scientific Advisory Board John R. Rice Chair & CEO Frank D. Orzechowski Chief Financial Officer Kevin Anderson, ex-Intel Statistician, Quality Vivek Dave, Ph.D. Metallurgy, Technologies Darren Beckett Chief Technology Officer Ron Fisher VP Business Development R. Bruce Madigan, Ph.D. Metallurgy and Controls Martin Pilcht. Ph.D. Physics, Lasers, Optics PrintRite3D Commercialization Strategy Launched PrintRite3D v5.0 in May 2019 – A True Commercial Product • v5.0, integrating existing customer feedback, represents a step change in PrintRite3’s capabilities • Improved user interface creates readily usable, easily deployable product for existing production lines • Real-time melt pool analytics with automated anomaly detection • Expanded sales team in 2019 to accelerate RTE and OEM adoption programs Short Term: Rapid Test and Evaluation (RTE) Program to Seed Demand at User Level • RTE program allows clients to “test-drive” our software, making a wider scale purchase more likely • Airbus currently evaluating PrintRite3D v5.0 in an RTE program ahead of a broader potential rollout Long Term: Integrate PrintRite3D at OEM Level Directly into AM Hardware • Integration directly into OEM hardware allows for a capital-light approach to industry-wide adoption • Placements with tier-1 end-users validate technology and accelerate path to integration at OEM level • Partnered with Materialise, a leading AM software and 3D printing solutions company, in Q2 2019 to integrate PrintRite3D software into Materialise’s embedded hardware solution Sigma Labs: Tier-1 Client Base Sample of Tier-1 Enterprises Evaluating PrintRite3D® v4.0 for Production Lines Printrite3D® Software Claims Validated in DARPA-Sponsored Open Manufacturing Study with Honeywell Aerospace (April 2019) Quality Assurance Challenges Slow Technology Adoption Substantial Manufacturing Variances Drive Poor Quality Assurance • 3D additive manufacturing manufacturers must inspect each part while it is being made in order to ensure a high yield of high quality products • Quality assurance challenges inherent to current 3D additive manufacturing processes inhibit mass adoption, better technology to realize quality assurance issues in-process and in real-time are necessary for broader industry adoption in serial production Sigma’s PrintRite3D® Software Solution Sigma’s PrintRite3D® IPQA® Software monitors and assesses the quality of each production part in the AM machining process ― layer by layer, and in real time. • Reduced error rates and higher yields/profits • Identifies developing errors: Operator corrects or stops manufacture of defective part Outcome: • Reduced error rates and higher yields/profits • Identifies developing errors: Operator corrects or stops manufacture of defective part Current AM Metal Quality Characteristics Impact on Manufacturers • Substantial variance in quality • Rejection occurs after completion of manufacturing • Must inspect 100% of production after parts are made • Low yields degrade business case for volume production Today: PrintRite3D® Version 5.0 Tomorrow 1. Detects and enables removal of AM machine performance inconsistencies 2. Creates optimum process map 3. Warns of precursors of quality defects, enabling operator to correct or abort 4. Increases yield and profits 1. Sigma’s IPQA® tools can close the loop to keep a building part in specification and autocorrect a developing flaw 2. Parts will be uniform as the AM machine becomes the self-adjusting variable ― no matter how small the lot or large the number of machines