ESSENTIAL TECHNOLOGY FOR 3D METAL … › assets › uploads › kit › 253e2fb55...Market Overview...
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JUNE 2019SGLB
E S S E N T I A L T E C H N O L O G Y F O R 3 D M E TA L P R I N T I N G
T O G O T O M A R K E T
Sigma Inside
Copyright © 2019 Sigma Labs, Inc. 1
F R O M P R O T O T Y P I N G T O P R O D U C T I O N
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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 statementsother than statements of historical fact are “Forward-Looking Statements” for purposes of theseprovisions, including any projections of revenues or other financial items, any statements of theplans and objectives of management for future operations, any statements concerning proposednew products or services, any statements regarding future economic conditions or performance,and any statements of assumptions underlying any of the foregoing. All Forward-LookingStatements included in this document are made as of the date hereof and are based on informationavailable to us as of such date. We assume no obligation to update any Forward-LookingStatement. In some cases, Forward-Looking Statements can be identified by the use of terminologysuch as “may,” “will,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,”“potential,” or “continue,” or the negative thereof or other comparable terminology. Although webelieve that the expectations reflected in the Forward-Looking Statements contained herein arereasonable, there can be no assurance that such expectations or any of the Forward-LookingStatements will prove to be correct, and actual results could differ materially from those projectedor assumed in the Forward-Looking Statements. Future financial condition and results ofoperations, as well as any Forward-Looking Statements are subject to inherent risks anduncertainties, including any other factors referred to in our press releases and reports filed with theSecurities and Exchange Commission ("SEC"). All subsequent Forward-Looking Statementsattributable to the Company or persons acting on its behalf are expressly qualified in their entiretyby these cautionary statements.
Forward Looking Statement
SGLB - Key Metrics
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Recent Price* $1.46Shares Outstanding 10.9 MMarket Cap* $15.9 M52 Week Range $3.00-$0.72Public Float 9.9 MFY End Dec. 31*Data as of 06/04//19
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What, Why, and How?
» What is 3D akaAdditive Manufacturing with metal?
» Why is the Sigma PrintRite3D® 5.0 systemso necessary?
» How is Sigma going to get there from here?
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Core Trait of 3D Manufacturing Technology is Synthesis
ü Combines Traditional Multiple Processes Into One Process:
3D Metal manufacturing synthesizes the functions of a metal foundry with the multi-step part manufacturing capabilities of a machine shop by creating the finished metal and the finished part as single process,
and enabling advanced complex topological designs.
ü Combines Traditional Multiple Parts Into One Part:
3D Metal manufacturing can synthesize subassemblies composed of multiple machine shop parts into a single part.
Metal Parts Manufacturing
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3D AdditiveMetal Manufacturing
Traditional SubtractiveManufacturing
Raw Material at the beginning of the process
Benefits of 3D Advanced Manufacturing
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Optimized Design
üReduced weight 25%üPart Consolidation 20
into 1ü5x More Durable
Reduced Buy to Fly Time
üReduced development time by 1 yr.
üDramatically reduced cost
GE Aviation Fuel Nozzle Case Study
Full Rate AM
Production
30,000 Parts
shipped by Oct.
2018!
Full Rate AM
Production
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Before After
Yield: 10:25 Yield: 25:25
Variables:Laser PowerLaser Focus
Gas FlowPreheatPowder
Scan StrategyHardware
Plume Interaction
3D AM Industry Challenges
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Unreliable Quality Assurance InhibitingFull Scale Industrial Production Adoption
» Substantial Variance in part to part quality
» Must Inspect 100% of 100% of production after
parts are made» Rejection occurs after
completion of manufacturing
AM Quality Characteristics
Low Yields/High Cost Degrade the business case for
committing products to volume production
Impact on Manufacturers
3D Metal Industry Needs
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High Yield and Economically Assured Quality Requires AM Metal Manufacturers to Inspect Each Part While it is Being Made
» Single part, e.g. a new knee/shoulder
» Volume production, e.g. GE’s fuel nozzle in multiple runson multiple AM machines
Quality must be proven for:
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The industry will be forced to adopt In-Process-Quality-Assurance.
SIGMA INSIDE
In order for 3D metal manufacturing to leap from the laboratory bench to the production floor, the industry must have the means
to assure high quality, part by the part
Sigma Inside
The Solution – Sigma’s PrintRite3D® Software
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Sigma’s PrintRite3D® IPQA® Software Monitors andAssesses the Quality of Each Production Part in the
AM Machining Process ― Layer by Layer, and in Real-Time
1. Reduce Error rates2. Identify developing
errors:Operator corrects, orOperator stops manufactureof the defective part
In Process Quality in Real time
Analytical Features of TED & TEP
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TED
TEP
Enables controlling process parameters & understanding machine repeatability
Reveals thermal signatures of failure predictors
Where is IPQA® Headed
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Sigma is Closing the Loop
1. Detects and enables removal of AM machine performance inconsistencies
2. Creates optimum process map3. Detects and warns of
signatures of precursors of quality defects enabling operator to correct or abort
4. Increases yield and profits
Today PrintRite3D® 5.00
üSigma’s IPQA® tools, now in ⍺lpha tests, can close the loopto keep a building part in specification and/or to autocorrect a developing flaw
üParts will be uniform as the AM machine becomes the self-adjusting variable ― no matter how small the lot or large the number of machines.
ü Tomorrow
Competition: The Fork in the Technology Road
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Optical Tomography of the meltpool and parts:
a camera’s view
Thermal Behaviors in the meltpool as it forms the parts: an inside and outside ‘physics’ view
Inconel 625: Evaluation of Thermal Signatures using Part-Layer SPC (Statistical Process Control) to detect powder disturbance
Powder Bed Image
Layer 50
Qualitative versus Quantitative Approach
Method: each fin categorized as separate
part
TEP Sigma™ SPC Part - Layer Trend Chart of single fin
This document contains conf identical and proprietary information of Sigma Labs, Inc and is protected by patent, copy right, trade secret and other State and Federal laws. Its receipt or possession does not convey any
rights to reproduce, disclose its contents, or to manufacture, use or sell any thing it may describe. Reproduction, disclosure, or use without specific written authorization of Sigma Labs, Inc is strictly forbidden
Layer 225 Layer 314Layer 250
Third Party Verification
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üSigma Labs Printrite3D® Software Is Shown To Ensure Process Consistency And Product Quality In DARPA-sponsored Open Manufacturing Program With Honeywell Aerospace- April 2019
üSigma Labs And Materialise sign MOU To Integrate Real Time Melt Pool Analytics With Advanced Control Technology For Serial Production- May 2019
ü Continuing Validation Studies At MTC, NIST, And Fraunhofer
IP – Sigma’s Freedom to Operate and Barriers to Entry
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ü24 Patent applications. Kilpatrick Townsend, Patent Counsel.
üCombination of issued and pending filings represents fundamental methodology towards melt pool process analysis and “closed loop control” of 3D Printing
Intellectual Property: Patents, Trade Secrets, & Process Knowhow
Industry Perspective & Addressable Markets
19Source: Wohlers Report 2017
Market Overview» Based on Wohlers report of
a 45% increase in 2017 powdered metal sales, the retail value of finished parts from powdered metal sales in 2018 extrapolates to >$1 Billion.
» Use of all 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. .
Source: Wohlers Report 2017
AUTOMOTIVE MFGRS
MACHINE OEMs
AEROSPACE & DEFENSE MFGRS
BIOMEDICAL MFGRS
POWER GENERATION MFGRS
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The Sigma’s Target Industry Markets
v PrintRite3D® 5.0 released in May 2019§ Enhanced by customer feedback into a
deployable reliable industrial product § Demonstrable to OEMs to have features
they do not have§ Strong value proposition to serial producers§ Easy Usability with User Friendly Interface
v Rapid Test and Evaluation (RTE) Program piloted in September 2018, unleashed in November 2018.
§ Expanded sales team in 2019§ RTE is Sigma’s path to the end-users§ End-users pull PrintRite3D thru OEMs
Sigma’s Tipping Point?
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Sigma Labs Commercialization Pivot
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Not Just For Research Anymore!Seven Clients evaluating PrintRite3D® 4.0
for production lines:
Sigma’s commercialization strategy is focused on production.
2018-2019 Organizational Changes and Growth
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Technology Development Ø Founder Mark Cola, Co-Founder & CTO Retired Oct. 2018Ø Darren Beckett, Chief of Engineering became CTO Oct. 2018Ø Dr. Vivek Dave, Kevin Anderson, and Dr. Martin Pilcht expand
World-class Scientific Advisory Board, Oct.-Dec. 2018
Sales DevelopmentØ Marcus Meidenstein open Sigma Europe Business Development
Office in Munich Ø Richard Pryor joins Sigma providing sales engineering and customer
technical support in Europe from the UK, August 2018Ø Justin Joiner joins Sigma as Business Development Manager, Americas
Drive Execution
Tipping Points?
Copyright © 2019 Sigma Labs, Inc. 24
GE’s Actions: » Commence 3D manufacturing of fuel nozzles- 30,000 shipped! » Spend >$1.4 Billion in 2016-2017 acquiring Arcam and Concept
Laser and investing in Desktop 3D
Wohler’s Forecasts:» Airbus grew manufacturing to ~30 tons metal parts per month by
last December.» HP, Canon, Michelin, Ricoh, Toshiba, Lenovo all planning to offer
AM machines; each one has more global marketing span than the existing AM machine-only manufacturers combined
Closed Loop: Sigma’s Tip: begin enabling machines to ensure their own quality
About Sigma Labs Inc.
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Nannette Toups Chief Financial Officer
20 years as CFO
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Ron FisherVP Business Development
Chief Operating Officer, VP Technology Industries
Management
John R. RiceChair & CEO
Grow Companies
Darren BeckettChief Technology
Officer20 years Process
engineering at Intel. B
Scientific Advisory Board
Kevin Anderson, ex-IntelStatistician, Quality
B6 Blackbelt, Big Data
Vivek Dave, Ph.D.Metallurgy, Technologies Co-Founder of Sigma Labs
R. Bruce Madigan, Ph.D.Metallurgy and Controls
R&D, Labs and Universities
Martin Pilcht. Ph.D.Physics, Lasers, Optics40 years in physics, laser
chemistry, material science
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For More Information
Investor RelationsBret Shapiro
Sr. Managing PartnerCORE IR
377 Oak StreetGarden City, NY 11530
Sigma Labs, Inc.John Rice
Chair and CEO3900 Paseo del Sol
Santa Fe, NM 87507 505-438-2576