Sigma Corp Pres March 2017 - IR...

anAcquisitionPlatformCompanyin3DAdvanceManufacturing

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CorporatePresentationMarch2017

Forward Looking Statement

Thisdocumentincludinganydocumentswhichmaybeincorporatedbyreferenceintoit,contains“Forward-LookingStatements”withinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended.Allstatementsotherthanstatementsofhistoricalfactare“Forward-LookingStatements”forpurposesoftheseprovisions,includinganyprojectionsofrevenuesorotherfinancialitems,anystatementsoftheplansandobjectivesofmanagementforfutureoperations,anystatementsconcerningproposednewproductsorservices,anystatementsregardingfutureeconomicconditionsorperformance,andanystatementsofassumptionsunderlyinganyoftheforegoing.AllForward-LookingStatementsincludedinthisdocumentaremadeasofthedatehereofandarebasedoninformationavailabletousasofsuchdate.WeassumenoobligationtoupdateanyForward-LookingStatement.Insomecases,Forward-LookingStatementscanbeidentifiedbytheuseofterminologysuchas“may,”“will,”“expects,”“plans,”“anticipates,”“intends,”“believes,”“estimates,”“potential,”or“continue,”orthenegativethereoforothercomparableterminology.AlthoughwebelievethattheexpectationsreflectedintheForward-LookingStatementscontainedhereinarereasonable,therecanbenoassurancethatsuchexpectationsoranyoftheForward-LookingStatementswillprovetobecorrect,andactualresultscoulddiffermateriallyfromthoseprojectedorassumedintheForward-LookingStatements.Futurefinancialconditionandresultsofoperations,aswellasanyForward-LookingStatementsaresubjecttoinherentrisksanduncertainties,includinganyotherfactorsreferredtoinourpressreleasesandreportsfiledwiththeSecuritiesandExchangeCommission("SEC").AllsubsequentForward-LookingStatementsattributabletotheCompanyorpersonsactingonitsbehalfareexpresslyqualifiedintheirentiretybythesecautionarystatements.

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Key Statistics & Developments

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RecentPrice* $3.42SharesOutstanding 3.13MMarketCap $10.8M52Wk Range $13.98- $1.40

WarrantSymbol:SGLBWRecentPrice: $1.19

*Dataasof03/07/17

NASDAQ:SGLBü March2,2017- SigmaLabsWinsAdditionalContract

withAerojetRocketdyne forU.S.AirForceApplicationsü February22,2017- SigmaLabsFormsStrategicAlliance

withMorf3Dü February15,2017- CompletedPublicOfferingof

CommonStockandWarrantswithGrossProceedsofApproximately$5.8Million

ü February15,2017- Effected1:2ReverseStockSplit,Uplisted totheNASDAQCapitalMarket

RecentDevelopments

Executive Summary 3D Advanced Manufacturing Eco-system

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• TheAerospaceandDefenseIndustryisdesigningenginesandpartswhicharebetter,lighter,stronger,andmoreefficient,thuspushingthelimitsofmodernmanufacturingcapabilities.

• Thishascausedsignificantdelaysinmanufacturingandsignificantlosseswhenparts(designedtoexactingprecisiontoachievethepromiseofimprovedefficiencyandweight)areprovingexceedinglydifficulttodeliverbecausetheyarenotconsistentlyfabricatedtodemandingcustomerspecifications.

• SigmaLabsispartofthesolution.However,theindustryisfindingitdifficulttounderstand,procureandintegratemultiplepointsolutionstoimprovingthemanufacturingoftheseexactingpartsasOEMsandinthesupplierbase.Theindustryrequiresacompleteeco-systemsolution,whichincludessubtractiveandadditive-manufacturingcapabilitiesintegratedwithcomputeraidedengineering,andcomputeraidedadvancedqualityassuranceandinspectiontechnologies.

• 3DadditivemanufacturingisearlyinitsdevelopmentandIndustryStandardsarestillbeingwritten.Theissuefacingallmanufacturingcompaniestodayishowtoensurethathighqualitypartsandequipmentareuptothestandardsofthenewadvanceddesignsandtodeliveredthesepartsontime.

3DAdvanced ManufacturingToday Problem- MultiplePointSolutions

Executive Summary 3D Advanced Manufacturing Eco-system

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SigmaLabsiscreatingacombinationofcompanieswithaneco-systemofcapabilitiesthroughtraditionalanddisruptivetechnologieswhichwillensureimprovedproductqualityandfasterdelivery….higheryieldsthatmeetspecifications.

Inaddition,thesecompanieshaveacombinationofcurrentcustomersfromcoast-to-coastwhichincludesleadersintheAerospaceandDefenseIndustry.Therefore,eachcompanywillbeimmediatelyaccretivetoearningsandaddtotheoverallsalesgrowthofeachcompanyundertheSigmaLabsumbrella.

Eachcompanystandalonewouldlikelygrowabove20%peryear.However,thecombinationofthesecompanieswouldgivea‘suiteofsolutions’totheexistingcustomerbasewhichcouldnowbecrosssoldtomultiplecustomerswhohavealreadygivenpurchaseorderstooneormoreoftheindividualcompanies.

Pleasenote: Ithasbeenproventhatthefastestwaytoincreasesalesistodomorewithyourexistingcustomers,whichcannowbeeasilyaccomplishedwhengivenmoremanufacturingoptionsandsolutions.DisruptivetechnologiescombinedwithadvancedcurrenttechnologiesandalargecustomerbaseareexpectedtocreateexponentialgrowthinSigmaLabsoverthenext5years.

Ø 3Dmanufacturingofpartswithin-processinspectionandtheholdingcompanyofalltheentities.

ØDoesengineeringwithcustomerstodevelopandmanufacture3Dparts.

Ø 3DGeometricfinalinspectionofallfinishedpartstentimesfasterthancurrenttechnologyandwithin2microns(.00007874perinch).

Ø Asubtractivemanufacturingcompanywithstateoftheartcapabilitieswhichwillgrowfasterduetotheadditionofnewcustomers.

Solution- Complete &IntegratedEco-System

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Wecreateadigitalthreadwithyou:

• ComputerAidedDesign- CAD• ComputerAidedEngineering- CAE• ComputerAidedManufacturing- CAM• ComputerAidedInspection- CAI• (closedloopbacktoCAE/CAD)

toaccelerateyour:

• YieldswithSpecificationCompliance• DeliverySchedules• ProfitsandROI

Overview What is 3D Advance Manufacturing?

DigitalEcosystemSharingexpertiseandtechnologyforacompleteportfolio

ComputerAidedEngineering

ComputerAidedDesign

ComputerAidedInspection

ComputerAidedManufacturing

FasterTimeTo

Market

21stCenturycomputeraidedprocessesappliedtotheproductionrequirementsofhighvalueadd,highprecisionandhighyield metalalloyparts

OverviewWhat is 3D Advance Manufacturing?

AdvantagesofAdditiveManufacturingandhowithelpscompaniesrethinkproductdesignandthemanufacturingofcomplexgeometries.

3DPrintingisidealformanufacturingcomplexparts

AnimportantaspectisADDITIVEMANUFACTURING:acosteffectivemanufacturingsolutionforcomplex,highvalue,highprecisionmetalalloyparts.DesignengineersandR&Dleadersintheaerospace,automotive,medical,andpowerenergyindustriesareallseeingthebenefitsfromthecostefficienciesandqualityassuranceofthe3Dmetalprintingprocess.

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Overview Quality Control and Inspection Critical to Additive Manufacturing

QualityControlplaysancriticalroleinhelping3Dprintingmanufacturersandenduserssuccessfully:(i)deliversystems,(ii)improveproductquality,(iii)helptodeliverthehighestlevelsofproductperformance,and(iv)increasemanufacturingproductivities

Curren

t

• TheUSFoodandDrugAdministration(FDA)hasreleasedanewdraftguidanceformedicaldevicemanufacturersworkingwithadditivemanufacturing(AM).

• NASA’sOfficeofSafetyandMissionAssurance’s(OSMA)NondestructiveEvaluation(NDE)programisleadingavarietyofagencyinitiativestoensurethesuccessfulqualificationofAdditiveManufacturing(AM)productsfordeploymentonfutureNASAmissions.Asaresult,productspecifications continuetogettighter,requiringsignificantlymore qualitycontrol,repeatability,andmanufacturingefficiencytothe3DPrintingindustry.

• Sigma’sPrintRite3D®systemsmeasuresproductquality.Itprovidesforadigitalthreadfromdesignthroughprocesslifecycle.ItgeneratesDigitalQualityRecordandNDICertificate.

• Sigma’sPrintRite3D®software andaqualitycontrolmethodallowsforacompleteanalysisof3Dprintingonascan-by-scan,layer-by-layer,part-by-partandmachine-to-machinebasis.

• AsaresultofSigma’sleadingsoftwareproductperformanceforimplementinganddeterminingprocessrepeatability withaknowngoodstandard,SigmacommandsaleadingpositionforQualityControlsoftware.

Future

• 3DPrintingisahighlycomplexprocesscomprisingnumerous interrelatedsteps,eachofwhichintroducesopportunitiesforerror:(i)partdesignandbuildconfiguration,(ii)powderqualityandhandling,(iii)3Dprintingmachinerepeatabilityandaccuracy,(iv)monitoringandtestingtoensurequality.

• Inthefuture,keyelementsofqualityassuranceinadditivemanufacturingwillinvolve,(i)buildplanningtoincludetheuseofadvancedmodelingandsimulation todevelopaplanforamachinetoproduceaspecificpart,(ii)monitoringwithsensors ofthebuildprocessasthepartisbeingconstructed,and(iii)feedbackcontrol usingdatafromthebuildmonitoringsensorstoiterativelyupdatethebuildplanningprocessinrealtime.

• Enduserspendingonsystemandproductupgrades consistofanestimated$1.516billion oftotalsalesin2015,andaverageincreaseof17.2%from2014.AMservicesgrewtoanestimated$2.8billionin2015,anincreaseof33%from2014.However,qualitycontrolsoftware andmonitoringproductsprovideadisproportionateamountofincreasinglyvaluabledata/insightintoenduserproductionprocesseswhichhasthepotentialtomeaningfullyimprovemanufacturingproductivity.

QualityandProductivityDetectingfailuresandvariationbeforetheyoccurandimprovingquality

ImprovingManufacturingPracticesReducingscrap&improvingproduct certification

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Overview Path to Profitable and Sustainable Growth

DesignforAM

Engineering/Optimization

AMManufacturing

PostProcessing

Machining

Metallurgy

QualityInspection/Certification

SurfaceFinish

Extendcurrentmarketofferingbydevelopinganindustryleadingeco-systemwhichprovidesacomprehensiveandcompletesolutiontotheDigitalThreadin3DAdvanceManufacturing

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CAE

CAD

CAM

CAI

Overview Framework for Industry Leading AM Eco-System

Throughconsolidation,acquisition,andtightlyknitindustrypartnershipsourgoalistodevelopavalue-basedandfullyintegratedofferingwhichspansfrominitialconceptthroughtheproductionofafullycertifiedpart.

Conceptualization – AdvisoryServicesassistclientswiththeinceptionofanideaandestablishexpectationsforwhatisandisn’tpossiblewithAdditiveManufacturing

Design&PartOptimization– EngineeringServicesprovidespecializedexpertiseinadditivemanufacturingdesign,improvedesignforbetterperformance/massreduction

Metallic3DPrinting–ManufacturingServicesemergenceofinitialconceptoroptimizedpartfrominitialprototypethroughserializedproduction– contractmanufacturing

PostProcessing– FinishingServicespost-buildsurfacetreatment,heattreating,HIPing,andtraditionalmachiningandfinalfinishingasrequired

MetallurgyLab&Inspection– LabServices testcoupons,metallurgicalexaminationforperformance,hardnesstesting,anddimensionalqualityassessment– R&DSupportDOE

Certification&DataAnalysis– BigDataAnalyticsServicescollectionofin-processqualityandbuildinputs,dataanalysisanddocumentationforpartqualificationandcertification

MonetizedOffering

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Benefits of 3D Advance Manufacturing

Honeywell- EngineMount

OriginalDesign- ConventionalMfg.

OptimizedDesign- DesignedforAM- Reducedweight- IncreasedPerformance

OptimizedPart- 56%weightreduction

GEAviation– FuelNozzle

OptimizedDesign- DesignedforAM- Reducedweight25%- PartConsolidation20into1- 5xMoreDurable

ReducedBuytoFlyTime- Reduceddevelopment

timeby1yr- Dramaticallyreducedcost

FullRateAMProduction- 40,000Nozzlesby2020

CaseStudiesofAerospaceApplicationsandAdvantagesofusingDesignforAMandAdditiveManufacturing

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Target Market Focus Industry Leading 3D Advanced Manufacturing Ecosystem

• SigmaLabshasidentifiedseveralneartermopportunitiesthatitcanpursuesimultaneouslyinordertoproveitscapabilitiesinanumberofdifferentindustries.

• Aerospace– exampleofanapplications

• PowerGeneration– exampleofanapplications

• Biomedical- exampleofanapplication

• Automotive- exampleofanapplication

• Sigmahassignificantroomforgrowthas3DPrintingOEMEndUsersincreasetheamountofequipmenttheypurchasefrom3DprintingOEMmachinemanufacturers.

TargetMarkets

• Noexternalintegratedsolution– pointsolutionsonly

• DrivinglargeOEM/enduserstobuildbuypointsolutionsandbringinhouseascaptivesolutions

• GEpublicannouncements

• PlansToInvest$3.5BillionInAdditiveManufacturingby2020

• $1.4Billionfortwo3D-printerCompanies

• “addstoourstrategytobecomethepremierdigitalindustrialcompany,”ChiefExecutiveOfficerJeffreyImmelt

• Leavingthebulkoftheindustrybehind

Demand foranIntegratedSolution

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Target Market An Industry Leading AM Eco-System

• Abilitytoofferaholisticandcompletesolution–frominitialconceptthroughcertifiedandqualifiedpart

• Multidisciplinaryexpertisethatextendsbeyondtraditionalofferings

• Naturalandstrategicextensionofcustomersvaluechain

• Abilitytoreducehumancapitalinvestments• Abilitytoreducecapitalassetpurchasesandsupportinginfrastructure

• Acceleratedbuytofly• Strategicpartnerfromconceptthroughserialization

CompetitiveAdvantageCompleteandUnmatchedIndustrySolution

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Integrated SolutionAccess to Industry Leading Clients at multiple points of entry accelerates growth

Aconsolidationorstrategicinvestmentsimplymakessense!Ourcombinedentitiesprovideusaccesstoanelitecustomerbase withgrowingdemandforourcollectiveoffering.

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Theopportunitytoacceleratemarketdevelopmentandmarketpenetrationfasterthananyonecompanycoulddostandalone.

SigmaLabsiscreatingacombinationofcompanieswithaneco-systemofcapabilitiesthroughtraditionalanddisruptivetechnologieswhichwillensuringimprovedproductqualityandfasterdelivery….higheryieldsthatmeetspecifications.

Integrated Solution Introduction to Sigma Labs

MarkJ.ColaChiefExecutiveOfficer

32yrsofscientificandexecutivemanagementofadvancedmanufacturingtechnology

developmentforcommercialindustriesandU.S.National

Laboratories.

MurrayWilliamsChiefFinancialOfficer23yearsexperiencein

accountingandfinanceforpubliccompany’sanda

foundingmemberandCFOofBuy.Com,Inc.

AmandaColaVPFinance&Business

Operations20yrsofaccounting/finance,

andbusinessoperations

R.BruceMadigan,Ph.D.ScienceAdvisor

32yrsinresearch&developmentatU.S.NationalLaboratoriesand

Universities

RonFisherVPBusinessDevelopment

20yrsasadistinguishedsalesandmarketingofficeraswellasaChiefOperatingOfficer,VPandGeneralManager,in

commercialindustries.

Foundedin2010,Sigmaisasoftwarecompanythatspecializesinthedevelopmentandcommercializationofreal-timecomputeraidedinspection(CAI)solutionsknownasPrintRite3D®for3Dadvancedmanufacturingtechnologies.

Ourpeople,processesandtechnologiesarerecognizedleadersindisruptivetechnologies.Ourproductsandservicesareengineered,manufactured,andqualifiedforuseinhighlydemandingproductionenvironmentsfortheaerospace&defenseindustries.Sigma’sinnovativeapproachtoqualitycontrol/assuranceisaproactive,comprehensiveandprocess-focusedmethodologythatallowspredictionwithadequateconfidenceofproductconformancetodefinedacceptancerequirements.

AboutSigma

SinceinceptioninSept2010,Sigmahasbeenabletoestablishcredibilityandacceptancewithintheaerospace&defensecommunityandhasbecomethego-toAMexpertsforreal-timecomputeraidedinspection(CAI)solutions.SigmaisITARCertified.

ExecutiveLeadership

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SIGMALABSistheWorld’sLeadingGlobalProviderofReal-TimeComputerAidedInspection(CAI) SolutionsfortheAdditiveManufacturingIndustry


• SigmaLabs’PrintRite3D®softwareisreal-timecomputeraidedinspectionandenableshigh-value,highprecision,andhighvolumemanufacturingwith3Dprintingreplacingtheneedformultiplepiecesassemblies.

• PrintRite3D®inspected3Dprintedpartsarestronger,morereliableandcheaper.

• High-volumeproductionof3Dpartshasbeenhinderedbythelackofreal-timecomputeraidedinspection.

• SigmaLabs’PrintRite3D®enables3DprintingtobecomeAdditiveManufacturing.

• SigmaLabs’PrintRite3D®web-basedsoftwareisbeingdesignedtoresideinthecloudoftheIndustrialInternetofThings(IIoT).

IN-PROCESSQUALITYASSURANCE™ (IPQA®)SOLUTIONSBreakthroughPrintRite3D® systemincludesintegrated,interactivesoftwaremodulesthatcombineinspection,feedback,datacollectionandcriticalanalysisforadditivemanufacturing.

3DMETALPRINTINGSigmaLabsisproudtoprovidestate-of-the-art3Dmetalprintingtocustomersseekingprovenreliabilityandqualityfortheirdemandingapplications.

MATERIAL&PROCESSENGINEERINGSERVICESOurindustryexpertscanhelpdevelopandrefineyouradditivemanufacturingprocess,designmoresuccessful3Dprintedparts,andsolvecomplexqualityproblemswithmetallurgyandmaterialsscience.

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Industry’sBroadestPortfolioof“BestinClass”real-timeComputerAidedInspection(CAI)softwaresolutionswithcuttingedgenewtechnologies.PrintRite3D®isthequalitycontrolsolutionthatmakestomorrow’sprecisionmetalpartspossible.


PRINTRITE3D®SENSORPAK™

PRINTRITE3D®INSPECT™

PRINTRITE3D®CONTOUR™

PRINTRITE3D®ANALYTICS™Underdevelopment

Multi-sensorsandaffiliatedhardwaretocollectreal-timedataonAMprocesses.

Comprisesasetofoff-axisandon-axisin-processsensors.

WhencoupledwithPrintRite3D®INSPECT™orPrintRite3D®CONTOUR™modules,enablespartqualityassessmentduringmanufacturing.

Capableofmeasuringthetruein-processstatevariablesassociatedwithanadditivemanufacturingprocess.

Softwareforin-processinspectionofmetallurgicalproperties.

Usessensordataandestablishesin-processmetricsforeachmetaloralloyduringtheprocess.

Providesmanufacturingengineerswithpartqualityreportbasedonrigorousstatisticalanalysisofmanufacturingprocessdata.

Allowsforinterrogationofsuspectpartdataandcanbeusedforprocessimprovementandoptimization.

Softwareforreal-timemonitoringofin-processpartgeometry

Layer-by-layergeometrymeasurementtool.

Providesmanufacturingengineerswiththecapabilityofcomparisonof‘as-built’tooriginaldigitalCADmodel‘shouldbe’.

Includesoptics,mechanicalsystemanddatapathtoimagetwo-dimensionalmeltedpowder.

Softwareformanufacturingintelligence— trend,correlation,exploration.

Softwareanddatabasethatlinksallcriticaldataovermultiplebuilds,machines,andfabricationsitesovertime.

Providesmanagementandseamlessaccesstoallin-processandpost-processdataovertheentireproductlifecycle.

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• SigmaLabshasidentifiedseveralneartermmarketsthatitcanpursuesimultaneouslytoproveitscapabilitiesinanumberofdifferentapplications.• Aerospace• PowerGeneration• Healthcare• Automotive

• Sigmahassignificantroomforgrowthas3DPrintingOEMendusersincreasethenumberofmachinestheypurchasefrom3DprintingOEMmachinemanufacturers.

SolutionLeaderforReal-TimeCAI IndustryCustomers

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Integrated Solution Introduction to Jaguar Precision Machine

AboutJaguarPrecisionMachineJaguarPrecisionMachineisaprecisionprototypemachiningfacilitylocatedinAlbuquerque,NewMexico.JPMhasthecapabilitiestoperformbothmanualandCNCmillingandturning,andhastheequipmentandskilltosatisfycustomerneedsrangingfromsimple2Dmachiningtomuchmorecomplex5-axisCNCor4-axisEDMmachining.JPMalsoprovidesmanyadditionalservices,includingbutnotlimitedtoadditivemanufacturing,plating,non-destructiveanddestructivetesting,heattreating,andwelding.JPMservestheaerospace,defense,roboticsandmedicalindustries.Overits25yearsofoperation,JPMhasdevelopedreputationforoutstandingqualityinmachiningcomplexparts.

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Jaguarispartofacompleteeco-systemsolution,whichincludessubtractivemanufacturingcapabilitiesintegratedwithcomputeraidedengineering,andcomputeraidedadvancedqualityassuranceandinspectiontechnologies.

ComputerAidedManufacturing(CAM)

Integrated Solution Introduction to Jaguar Precision Machine

Jaguarpossesses15,000squarefeetofmanufacturingspace,completewithstate-of-the-artmachinerytofulfillallourcustomers’needs.Ourequipmentincludesbutisnotlimitedtothefollowing:

Mills:• MAZAKIntegrex J-200— traveldistanceof17.72”x7.87”x21.65”x18.82”(X,Y,Z,W)

• Hurco Trunnion 5-AxisVMX30U— traveldistanceof30”x20”x20.5”(XYZ)• Hurco VMX424-axis(x2)— traveldistanceof42”x24”x20.5”(X,Y,Z)• Hurco BMC4020— traveldistanceof40”x20”x24”(XYZ)• Hurco BMC30— traveldistanceof33”x17”x24”(XYZ)• Hurco VMX24(x2)— traveldistanceof20”x24”x24”(XYZ)• MazakVTC300C4-Axis— traveldistanceof65”x30”x26”

Lathes:• FryerCNCLathe— max.materialsizeof31”• HAASSL30CNCLathe— max.materialsizeof30”• Mazak Nexus200CNCLathe— max.materialsizeof24”• HURCOTM8CNCLathe— max.materialsizeof12”

EDM:• MitsubishiWireEDM4-Axis(withrotaryhead)• MitsubishiEDMHolePopper

Capabilities

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Aerospace&DefenseIndustryTraction/Clients

Integrated Solution Introduction to Level 3 Inspection

AboutLevel3InspectionLevel3InspectionisaComputerAidedInspectioncompanywithfacilitylocatedinStuart,Florida.Level3hasthedevelopedcuttingtechnologytoperformhighlyaccuratecomputeraidedinspectionusingstructuredlightmetrology.Theircuttingedgetechnologyisabletoaccelerateinspectiontimeandmanufacturingprocess.

TheheartoftheirtechnologyisStructuredLightMetrologywhichiscapableofprocessingmillionsofdatapointstogethighlyaccurateandreliablepartgeometrycomparison,andactualsurfacefinish.

DistinctAdvantages:ComputerAidedInspection• Comprehensive,completepartgeometry• Illustrative,advancedresultsvisualization• Confidenceandimproveddatacomprehension=speed

• Comprehensivedataprocessing

• Align SmartScan™ filetoCAD• Generate SmartCompare™

• ExtractDimensionsfrom SmartPrint™• Computer-ItemizedBluePrint

• integratestoSmartReports

• Develop SmartInspect™or SmartFAI™Reports• .pdf&.xls• DeliveryinSmartInspection Portfolio(.pdf)

• Trackable,Trendable,Traceable,Auditable,SPCIntegration

ComputerAidedInspection(CAI)

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Integrated Solution Introduction to Level 3 Inspection

Aerospace&EnergyIndustryTraction/Clients

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Integrated Solution Introduction to Morf3D

IvanJ.MaderaChiefExecutiveOfficer20yrsoflargeprogrammanagement,mfg.and

businessdevelopment.Priorstart-upexperience

MelissaOrmePh.D.ChiefTechnologyOfficerPioneerofearly3Dtech,

AerospaceEng.,InventorandEducator.Priorstart-up

experience

OlyaHavellExecutiveVPofFinance

10yrsofaccounting/finance,andbusinessoperations

JoseR.FuentesProductionManager

10yrsProjectManagementandaccountexecutive

RickBartzVPBusinessDev.Strategy

30yrsofAerospace/DefensebusinessdevelopmentandstrategyforleadingA&D

suppliers

Foundedin2015,Morf3Disafullyintegratedproviderofmetaladditivemanufacturingsolutionsfortheaerospace/defenseindustry.Theirteamofinter-disciplinaryexpertsisdisruptingthewayaerospaceproductsareengineered,manufactured,andqualified.Morf3D’sinnovativeapproachdramaticallyreducestheproductdevelopmentlifecycletofullyexploitsthebenefitsofmetaladditivemanufacturing.

AboutMorf3D

SinceitsphysicallaunchinSept2015,Morf3Dhasbeenabletoestablishcredibilityandacceptancewithinthelocalaerospacecommunityandhasbecomethego-toAMexpertsforaerospaceapplications.Morf3DisAS9100:ISO9001andITARCertified

ExecutiveLeadership

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Integrated Solution Introduction to Morf3D

IndustryTraction/Customers Morf3D’sInnovationCenter

Note:Morf3Discurrentlynegotiating3additionalDMLSsystemsfromEOS– 2M290’sand1M400(Totalof5AMmachinesbyendofJan2017).InadditiontotheAMequipmenttheywillalsobeaddinganEDMand3/5AxisMachine.TotalQ1investmentof$3.5Mtosupportexistingdemandandprojectedgrowth.

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Integrated SolutionIndustry Leading AM Eco-System

• Multiplestandalonepointsolutionscausesignificantdelaysinmanufacturingandsignificantlosses,

• Fastestwaytoincreasesalesistodomorewithyourexistingcustomers,

• Givecustomersmoremanufacturingoptionsandatotalintegratedsolution,

• CombinedisruptivetechnologieswithadvancedcurrenttechnologiesandalargecustomerbaseareexpectedtocreateexponentialgrowthinSigmaLabsoverthenext5years.

CompetitiveAdvantageCompleteandUnmatchedIndustrySolution

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AM Ecosystem resulting Intellectual Property Assets

• SigmaLabsandLevel3InspectionhaveastrongpatentedIPandprocessIPaswellastradesecretsandprocessknowhowwhichprovidesbarrierstoentry

• Asafirst-moveranddiscovererinaveryniche,technicalfield,SigmaLabsLevel3InspectionhavebeenabletoachievevariouspatentsandpatentfilingsthatwillprotecttheCompanyforatleastthenextdecade.

• Thesepatentsandpatentfilingsrepresentinpartafundamentalunderpinningforthe3DAdvancedManufacturingEcosystem:1. No.8,354,608:MethodforControlofaFusionWeldingProcessby

MaintainingaControlledWeldPoolVolume2. MethodandSystemforMonitoringAdditiveManufacturingProcesses3. OpticalManufacturingProcessSensingandStatusIndicationSystem4. FeatureExtractionMethodandSystemforAdditiveManufacturing5. Multi-SensorQualityInferenceandControlforAdditiveManufacturing

Processes6. MaterialQualificationSystemandMethodology7. SystemsandMethodsforAdditiveManufacturingOperations8. Layer-basedDefectDetectionusingNormalizedOff-AxisSensorData

Innovation

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Execution of Roll Up Strategy

Aspartofourpathtoprofitableandsustainablegrowthwe’veidentifiedindustryleaderswithwhomwehaveasharedvisionandcomplimentaryoffering.Ourgoalistofurtherextendourindividualreachbymakingstrategicinvestments,acquireordeveloptightlyknitpartnerships.

PathtoProfitableandSustainableGrowth

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Execution Next Steps 3D Advanced Manufacturing Ecosystem

Ø DefineconsolidationframeworkØ Defineoperatingandsalesstrategy,andØ Allocationofcapitalandoperatingfunds

PathForward

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Sigma Corp Pres March 2017 - IR...

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