sigma labs, inc. investor presentation

Company ConfidentialCopyright © 2021 Sigma Labs, Inc.

October 2021

LD Micro

Sigma Labs, Inc.Investor Presentation

1Copyright © 2021 Sigma Labs, Inc.


Forward Looking Statement

2

This presentation 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 (which

Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded

by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend,"

"plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs

such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not

historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other

factors. Among the important factors that could cause actual results to differ materially from those indicated

by such forward-looking statements are risks relating to, among other things, market and other conditions,

Sigma Labs' business and financial condition, the extent of the market's acceptance of PrintRite3D version

7.0, Sigma Labs' ability to satisfy its capital needs through increasing its revenue and obtaining additional

financing, and the impact of COVID-19, general economic, industry or political conditions in the United States

or internationally. The Company disclaims any intention to, and undertakes no obligation to, revise any

forward-looking statements, whether as a result of new information, a future event, or otherwise. For

additional risks and uncertainties that could impact the Company's forward-looking statements, please see

disclosures contained in Sigma Labs' public filings with the SEC, including the "Risk Factors" in Sigma Labs'

Annual Report on Form 10-K, and which may be viewed at www.sec.gov

Company ConfidentialCopyright © 2021 Sigma Labs, Inc. 3

1. As of October 1, 2021

2. As of June 30, 2021

3. As of December 31, 2020

In-Process Quality Assurance solutions for the Additive

Manufacturing industry

Headquartered in Santa Fe, N. M.

PrintRite3D (our product) detects and identifies defects real-

time during the printing process

First mover advantage with formidable barriers of entry

Business Model accelerates both in revenue and

profitability with the growth of the industry

Sigma Labs (NASDAQ: SGLB)

Share Price (1) $3.13

Market Cap (1) $32.8

TTM Revenue (2) $1.02m

FY 2020 Revenues (3) $807 thousand

Net Debt (2) $0

Patent Portfolio (3) 14 granted, 30 in

progress

Outstanding Shares (2) 10.5m

Sigma Labs Overview


Technology leadership,

First Mover advantage, and a

Business Model to recurring

revenue and profitability

Additive Manufacturing, or

3D Printing, is a disruptive

technology that is

revolutionizing manufacturing

worldwide

PrintRite3D® IPQA

(In-process Quality Assurance)

is a critical catalyst to

crossing the chasm

from prototyping to industrializationTH

E C

HA

SM

INNOVATORS EARLYADOPTERS

EARLYMAJORITY

LATEMAJORITY

LAGGARDS

Key Messages


Freedom of Design

On-demand manufacturing

Increased agility

Economical for customization and personalization

Stronger, lighter and more durable parts

Location agnostic

5

Promise of 3D Metal Printing


Fewer Parts, More Durable –Less Maintenance

300 parts assembled digitally and printed to produce a single super structure.Courtesy GE Research

6


The industry needs to collaborate more

vigorously on developing standards and best

practices to ensure repeatable processes and

high-quality results

Quality assurance (QA) is so crucial that it is

largely considered as the biggest obstacle to

the widespread adoption of AM technology,

particularly for metallic materials. Smartech Publishing

51 per cent of respondents, the challenge lies

in a lack of consistency. PostProcess Technologies, 3D Printing Trends Report:

Additive Post-Printing Survey 2019

Throttling the Growth of 3D Metal Printing

7


Metal 3D Printing Challenges

8

____________________________________________________________________________

Too many variables and no quality standards!____________________________________________________________________________

Various post

processing

techniques and

issues.

Cost & time of

inspecting after the

fact. Expensive CT

scans and

destructive testing.

2nd Ops

Virtually unlimited

design possibilities

Part

More metal

powders and

metal alloys

Material

Over 50 3D metal printer

OEMs.

Multiple generations, multiple

processes. Single, dual and

quad laser machines

Machine


How Important is Quality?

Space

Exploration

Defense Aerospace

Oil & Gas Automotive Healthcare

9


To accelerate the adoption of Additive Manufacturing by

setting the standard for In-situ Quality

Monitoring.

Source: 3D Hubs

Enabling the Amazing

Mission Statement


Sigma’s customers

are the leading

3D metal

Additive Manufacturing

organizations in

the world

World-class Customers

11


Huge Long-term Opportunity

20% - 28% CAGR 29% CAGR >90%

~10x opportunity1% share ~ $30m5% share ~$57m

12


COVID-19 Impact

US engineers across industries ranked AM as a top technology

priority for investment post-COVID

Source: Society of Manufacturing Engineers, Barclays Research.


PrintRite3D – Real-time Detection

High Limit

Low Limit

Lack of Fusion

Key Holing

Inclusion

Gas Flow Variation

Short Feeding

Spherical Porosity

Insufficient Support

Recoater Interactions

Material Contamination

Typical Defects:

14


Layer

Quality

Check

Pass

Fail

Is Build

Complete

?Yes

No

Build

Finish

AlertTriggered

Human

Decision

Continue Build

Kill Build

Build

Start

PrintRite3D – Real-time Detection

Reduces material waste Increases innovation

Saves machine time Reduces cycle time

15


Temperature Monitoring and Calibration

Neural Net Machine Learning

Machine Learning Predictive Models

Recoater Interaction Detection

Multi-Laser Quality Metrics

Production Framework

3D Visualization Diagnostics

User Roles and Login

PrintRite3D 7.0


PrintRite3D Product Suite

PrintRite3D Lite

PrintRite3D Pro

PrintRite3D Enterprise

17


PrintRite3D® - Key DifferentiatorOperates With the Major 3D Metal Printers

IPQA® Providing a consistent standard of

quality across 3D printers

18


ΣKB

QAAS Knowledge Base

19

PrintRite3D Vision

Additive Manufacturing

3D Printing

S

I

M

U

L

A

T

I

O

N

P

R

E

D

I

C

T

I

O

N

A

S

S

U

R

A

N

C

E

DED PBF MBJ EBM

Optical

Acoustic

Thermal*

* Future


Every Contract, an Adventure!

20

Integrated HDWR/SW system

Collaboration with standards organizations

Retrofit on OEMs printers

Research Organizations, Universities and Early Adopters

Primarily for research and prototyping

Sold to the retrofit market

Business Model

Phase I – Technology Validation Phase I – Technology Validation


OEM partners beginning to drive independent revenue streams

Delivering PrintRite3D on known OEM platforms

EOS, SLM, Renishaw, GE Concept Laser, etc.

PrintRite3D purchased simultaneously with printer

Move from selling perpetual licenses to a subscription-based model

Phase II – Revenue Leverage

and Lower Cost of Sales

Business Model

_______________________________________

PrintRite3D Ready_______________________________________


OEMs will take over provisioning of

hardware

Moving towards PrintRite3D as embedded,

non-optional feature

Recuring revenue streams

OEM

Retrofit Market Subscription Pricing

Maintenance

Professional Services

Additional OEM partnerships spanning

materials and processing

Phase III – Huge Opportunity, Recurring Revenue

Model with Increasing Gross Margin

Business Model


Barriers to Entry

Jurisdiction Granted In Process Total

US 13 14 27

PCT - 1 1

EP - 4 4

Germany - 6 6

China 1 3 3

Japan - 1 1

Korea - 1 1

Total 14 30 44

Intellectual Property

These patents encompass the fundamental technology underlying Sigma Lab’s melt pool process control, data analytics, anomaly detection, signature identification, &

future “closed loop control” of 3D metal printing.

Multiple Technology Disciplines

Decades of Research

Software Engineers

Hardware Engineers

Machine Learning

Statisticians

Material Scientists

Graphical User Interface

Engineers

Process Engineers

Electrical Engineers

23


Vertical Sales and Marketing Strategy

Universities

R&D Institutes

Defense

Related

AerospaceEnergy Space

Exploration

• Significant Need

• Time and quality are more

important than dollars

• Competitive Threats

• Industry Imperative – Increased

focus on standards

Compelling Reasons to Buy:


Measuring our Progress

CAPITAL: Sufficient cash to execute our plan

RESOURCES: Added sales teams with significant industry experience

END USERS: Continue to add influential, leading-edge customers

UNIVERSITIES & INT’L RESEARCH ORGS: Several advanced collaboration initiatives

STANDARDS: PrintRite 7.0, NIST, Active ASTM & ISO

OEM: Order flow increasing.

Add several more in the next few quarters

AM SOFTWARE: Materialise MCP Integration New OEMs

REVENUE: Increasing activity, growing pipeline

25


Summary Huge Addressable Market Coming our Way

_______________________________________

Uniquely Positioned_______________________________________

Supply Chain IssuesSpare parts, Critical parts

Regulatory PressureNASA, DoD, FAA

CompetitionSpace, Energy, Defense

Increased AM ExpertiseUniversities, Research Organizations, Leading edge AM companies

Sigma Sale Teams ExperienceSLM, EOS, VELO3D, GE, 3DSYSTEMS

26

Additive

Manufacturing


Mark K. Ruport

President and CEO

Sigma Labs, Inc.

[email protected]

719-217-7510

27

Investor Contact:

Chris Tyson

Executive Vice President

MZ Group - MZ North

America

949-491-8235

[email protected]

www.mzgroup.us

Company Contact:

Steven Gersten

Sigma Internal IR

813-334-9745

[email protected]

mailto:[email protected]


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