Sigma Corp Pres Oct 2017 v2 - IR...

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MicrocapPresentationOctober2017

Copyright©2017SigmaLabs,Inc.

Forward Looking Statement

This document including any documents which may be incorporated by reference into it, contains “Forward-Looking Statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are “Forward-Looking Statements” for purposes of these provisions, including any projections of revenues or other financial items, any statements of the plans and objectives of management for future operations, any statements concerning proposed new products or services, any statements regarding future economic conditions or performance, and any statements of assumptions underlying any of the foregoing. All Forward-Looking Statements included in this document are made as of the date hereof and are based on information available to us as of such date. We assume no obligation to update any Forward-Looking Statement. In some cases, Forward-Looking Statements can be identified by the use of terminology such as “may,” “will,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “potential,” or “continue,” or the negative thereof or other comparable terminology. Although we believe that the expectations reflected in the Forward-Looking Statements contained herein are reasonable, there can be no assurance that such expectations or any of the Forward-Looking Statements will prove to be correct, and actual results could differ materially from those projected or assumed in the Forward-Looking Statements. Future financial condition and results of operations, as well as any Forward-Looking Statements are subject to inherent risks and uncertainties, including any other factors referred to in our press releases and reports filed with the Securities and Exchange Commission ("SEC"). All subsequent Forward-Looking Statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

2Copyright©2017SigmaLabs,Inc.

Sigma Labs, Inc.

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Recent Price* $1.95Shares Outstanding 4.57MMarket Cap* $8.7 M52 Wk. Range $9.20 - $1.40FY End: Dec 31

Warrant Symbol: SGLBW

Recent Price: $1.95

*Data as of 10/04/17

NASDAQ:SGLB


SIGMA LABS is a leading provider of Computer Aided Inspection (CAI) In-Process-Quality Assurance software products with Strategic Alliances with up-scale Contract Manufacturing Services for 3D Metal Additive Manufacturing (AM) serving the aerospace, power generation, healthcare, automotive, and consumer products industries.

Introduction to Sigma Labs

IN-PROCESS QUALITY ASSURANCE™ (IPQA®) SOLUTIONS

3D METAL PRINTING

MATERIAL & PROCESS ENGINEERING SERVICES. 4Copyright©2017SigmaLabs,Inc.

Honeywell- EngineMount

OriginalDesign- ConventionalMfg.

OptimizedDesign- DesignedforAM- Reducedweight- IncreasedPerformance

OptimizedPart- 56%weightreduction

Aerospace Applications and Advantages of using Design for Additive Manufacturing

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Benefits of 3D Advance Manufacturing Case Studiy


Benefits of 3D Advanced Manufacturing Case Study

Copyright©2017SigmaLabs,Inc. 6

G

GEAVIATION– FUELNOZZLE

OptimizedDesign- DesignedforAM- Reducedweight25%- PartConsolidation20into1- 5xMoreDurable

FullRateAMProduction- 40,000Nozzlesby2020

ReducedBuytoFlyTime- Reduceddevelopmenttimeby1yr- Dramaticallyreducedcost

Benefits of 3D Advanced Manufacturing


New Technology’s Unintended Consequences


AMmanufacturingcharacteristics:• Smalllots– 10to20onaplate• Highvarianceinpartqualitywithinthesamelot• Samesettingscanhavedifferentqualityoutcomes,

machinetomachine• AMmachineistheconstant,thepartisthevariable

Theproblemisthattraditionalpost-processqualitymethodsdonotaddress,improve,orensurehigh

qualityinhighquantityorinsmalllotmanufacturing…

Industry Problem:

The Solution is Sigma’s In-Process–Quality-Assurance (IPQA)

…Sigma’sIn-Process–Quality-Assurance(IPQA)tools,PrintRite3D®,monitorandassessthequalityofeachpartintheAM

machineinproductionlayerbylayerinrealtime:

1. Qualityrequirementsaredeterminedandsetbytheuser2. Partsthatmeetthoserequirementsarelabeledgreen3. Partsthatdonotmeetthecustomer’sspecificationsare

shownasyellow(beware)orred(outofspec.)Copyright©2017SigmaLabs,Inc. 9

How it works• SigmaLabsandacustomerdesignaqualificationprogramforapartslatedfor3Dproduction...• PrintRite3D®isinstalledontheAMequipmentandthecustomerperformsmanufacturingtestrunstolearnfromPrintRite3D®iftheAMequipmentisconsistentineachsectorofthemanufacturingplate,iftherearepowervariancerequirementsrelatingtodistancefromtheplatformordensityofasectionofthepart,etc.• Sigmaqualitydataiscomparedtopostprocessoutcomes,thecustomersetstheoperatingparametersforPrintRite3D®toreportifmetalqualitystandardsarebeingmetasapartisbeingmade.• Customerentersproductionmode.


Where is IPQA headed?

Today:PrintRite3D®helpscustomersoptimizemachines’approachtomanufacturingforqualityandinformsifapartismeetingthecustomers’qualityspecifcation

‘Tomorrow’(wheneverthatturnsouttobe):IPQAtoolsmustclosetheloopfromIPQAtotheAMmachinethussignaltheAMmachinetomakepoweradjustmentstokeepabuildingpartinspecification.Whenthathappensthemachinewillhavebecomethevariable,andthepartwillhavebecometheconstant,nomatterhowsmallthelotorhowlargethenumberofmachines.

Wearenotawareofanycompanyhavingclosedtheloop…Sigma iscertainly inthehuntforthisholygrailofAM’sfuture.


Overview & Addressable Markets

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Source:WohlersReport2016

MarketOverview- BriefA tremendous opportunity exists to scale current efforts with the US Governments proposed $20 billion increase in defense spending while increasing efficiency.

Sigma is laser focused on being a world class provider of advanced manufacturing technology, offering an integrated commercialized solution which addresses the entire value-chain. Industries served: Defense, Aerospace, Medical, and other Industrial Markets.

Use of 3D technology is surging. Sales reached $1 billion in 2007, jumped to nearly $5.2 billion in 2015 and are expected to hit $26.5 billion by 2021.

According to Wohlers Report 2016 - 3D Printing and Additive Manufacturing State of the Industry Annual Worldwide Progress Report, revenues attributable to 3D manufacturing for metal products were $88.1 million in 2015 up 80.9%.

AddressableMarket

Aerospace is a "near perfect fit" for 3D printing because it involves complex, light weight,expensive parts.


Sigma’s Technology Value Proposition

Inorderfor3Dmetalmanufacturingtoleapfromthelaboratorybenchtotheproductionfloor,theindustrymusthavethemeanstoassurehighqualitypartbypart,notlotbylot.

TheindustrywillbeforcedtoadoptIn-Process-QualityMonitoring.


Strive to become an “Intel Inside” the dominant

standard in 3D metal printing.


Sigma Labs Market Model

Design,Simulation,and

&Engr.Services

PrintRite3DIPQA

3DPrintingServices

HOR I Z ON T A L S C A L E

VERTIC

ALS

CALE

AUTOMOT IVE MFGRS .

MACH INE OEMs

AEROSPACE & DE FENSE MFGRS .

B IOMED ICAL MFGRS .

POWER GENERAT ION MFGRS .

Scalebasedoneconomiesofproductionorsaleschannels

Scalebasedoncustomercultivation&

insightinasubjectarea

Principle Strategies


ØPartnering model:ØSeek deals with AM equipment manufacturers (OEMs) to provide

full suite of Sigma’s bundled software/printer products with their equipment; and

ØBecome the industry leading IPQA provider to AM service providers.

ØFirst to market end-to-end 3D advanced manufacturing ecosystem of digitally deliverable capabilities including:Øcomputer aided design and simulation (CAD); Øcomputer aided engineering (CAE);Øcomputer aided manufacturing (CAM); andØcomputer aided inspection in-process and final(CAI).

Client GrowthCustomers of Sigma and its Strategic Alliance partners- Path to Commercialization

Access to Industry Leading Clients at multiple points of entry accelerates growth


Industry’s Broadest Portfolio of “Best in Class” real-time Computer Aided Inspection (CAI) software solutions with cutting edge new technologies. PrintRite3D® is the quality control solution that makes tomorrow’s precision metal parts possible.

Sigma’s Software Products

PRINTRITE3D®SENSORPAK™

PRINTRITE3D®INSPECT™

PRINTRITE3D®CONTOUR™

PRINTRITE3D®ANALYTICS™Underdevelopment

Multi-sensors and affiliated hardware to collect real-time data on AM processes.

Comprises a set of off-axis and on-axis in-process sensors.

When coupled with PrintRite3D® INSPECT™ or PrintRite3D® CONTOUR™ modules, enables part quality assessment during manufacturing.

Capable of measuring the true in-process state variables associated with an additive manufacturing process.

Software for in-process inspection of metallurgical properties.

Uses sensor data and establishes in-process metrics for each metal or alloy during the process.

Provides manufacturing engineers with part quality report based on rigorous statistical analysis of manufacturing process data.

Allows for interrogation of suspect part data and can be used for process improvement and optimization.

Software for real-time monitoring of in-process part geometry

Layer-by-layer geometry measurement tool.

Provides manufacturing engineers with the capability of comparison of ‘as-built’ to original digital CAD model ‘should be’.

Includes optics, mechanical system and data path to image two-dimensional melted powder.

Software for manufacturing intelligence — trend, correlation, exploration.

Software and database that links all critical data over multiple builds, machines, and fabrication sites over time.

Provides management and seamless access to all in-process and post-process data over the entire product life cycle.


Barriers to EntryIntellectual Property & Trade Secrets

•Method patents and process IP as well as trade secrets and process knowhow.

•A first-mover and thought leader in a very niche, technical field,

•Have been able to achieve various patents and patent filings that will protect the Company for at least the next decade.

• If awarded, these patent filings represent fundamental methodology for quality inference and closed loop control of 3D Printing:

•Method and System for Monitoring Additive Manufacturing Processes

•Multi-Sensor Lagrangian Quality Inference for Additive Manufacturing

StrongIntellectualPropertyTradeSecrets&ProcessKnowhow

• Expertise in Design for Additive Manufacturing.

• Experts in Real-time Computer-Aided Inspection & Quality Control for 3D Advanced Manufacturing.

• Leaders in Materials Science & Metallurgy.

• Discovers in Structure / Property Relations for 3D Printed Metals.

• 3D Advanced Manufacturing Process Experts.


2017 CatalystsContracts, Events and Milestones

•Honeywell DARPA Period 3 (awarded);

•Aerojet Rocketdyne US Booster Program (awarded);

•Add New End Users to Early Adopter Program;

•Solar Turbines, Division of Caterpillar, Woodward, Aerojet

•Add New Machine Manufacturers to OEM Partner Program;

•Additive Industries (agreement signed);

•Insertion of PrintRite3D® into Siemens turbomachinery production;

•Powder material suppliers adopt PrintRite3D technology;

•Expansion of Contract AM manufacturing services through strategic alliances with Morf3D and Jaguar Precision Machine


Recent Developments

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ü May 2017 - Sigma Labs Unveiled Printrite3D® INSPECT™ V.2.0 Quality Assurance Softwareü April 2017 - Sigma Labs Won Contract with Solar Turbines Incorporated Implement Sigma Labs’ In-

Process Quality Assurance™ (IPQA®) Technology for the Production of Gas Turbine Components Using Metal Additive Manufacturing (“AM”).

ü April 2017 - Sigma Labs Released OEM Developer's Kit For Printrite3d®.ü March 2017 – Sigma Labs Entered into a Non-binding LOI with Morf3D To Commence Proposed

Merger Negotiations With Morf3D.ü March 2017 - Sigma Labs Enters into Second Long Term Commercial Agreement With OEM Additive

Industries For PrintRite3D®.ü July 2017 - Install at Woodwardü July 2017 - Reset Management to double down on technology, surge M&A activity, and complete

evolution of R&D culture to commercialization culture.ü August 2017 – Commit a Director to M&A growth of Sigma’s digital technology portfolio and

operationsü August 2017 – Install Siemens


About Sigma Labs Inc.

MarkJ.ColaChiefTechnologyOfficer

32yrsofscientificandexecutivemanagementofadvancedmanufacturingtechnology

developmentforcommercialindustriesandU.S.National

Laboratories.

NannetteToupsChiefFinancialOfficer

#0yearsofControllerandChiefFinancialOfficerintechnologyandenergy

sectors.

R.BruceMadigan,Ph.D.ScienceAdvisor

32yrsinresearch&developmentatU.S.NationalLaboratoriesand

Universities

RonFisherVPBusinessDevelopment

20yrsasadistinguishedsalesandmarketingofficeraswellasaChiefOperatingOfficer,VPandGeneralManager,in

commercialindustries.

Founded in 2010, Sigma is a software company that specializes in the development and commercialization of real-time computer aided inspection (CAI) solutions known as PrintRite3D® for 3D advanced manufacturing technologies.

Our people, processes and technologies are recognized leaders in disruptive technologies. Our products and services are engineered, manufactured, and qualified for use in highly demanding production environments for the aerospace & defense industries. Sigma’s innovative approach to quality control/assurance is a proactive, comprehensive and process-focused methodology that allows prediction with adequate confidence of product conformance to defined acceptance requirements.

AboutSigma

Since inception in Sept 2010, Sigma has been able to establish credibility and acceptance within the aerospace & defense community and has become the go-to AM experts for real-time computer aided inspection (CAI) solutions. Sigma is ITAR Certified.

ExecutiveLeadership


JohnR.RiceChair&Interim

CEO40+yearsofgrowingandrepairingcompanies

NewHireSeptember

2017

For More Information

Investor Relations

Bret Shapiro

Managing Partner

CORE IR

377 Oak Street

Garden City, NY 11530

[email protected]

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Sigma Labs Inc.

Nannette Toups

Chief Financials Officer

3900 Paseo del Sol

Santa Fe, NM 87507

[email protected]


Sigma Corp Pres Oct 2017 v2 - IR...

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