Sigma Labs Inc. (SGLB) is a development stage microcap 3D printing company currently developing a real-time process monitoring hardware/software system for 3D printing called PrintRite3D™.
According to management, Sigma Labs is in talks with two large metals 3D printing companies, presumably regarding their patented PrintRite3D™ system.
sigma labs inc.
A live Q&A chat session with shareholders following their last investor presentation. The chat session appears below in blue lettering in its entirety, and the question and comment that is the focus of this article are in red.
I changed the real names of the participants to initials for privacy reasons, but the remainder of the chat is word for word what was texted in that session.
Online Chat Session with Shareholders in June, hosted by Sigma Labs Inc. CEO Mark Cola and Chief Science Officer Vivek Dave, Ph.D.
jd(06/06/2013 12:04:06 PM):Thank you
RG(06/06/2013 12:04:17 PM):Great job Mark and Vivek,
HRC (06/06/2013 12:04:17 PM):Other than fuel nozzles, what other parts are you looking to work with for GE ?
H RC (06/06/2013 12:04:58 PM):Hello ?
GrK(06/06/2013 12:05:07 PM):Thanks a lot for taking time out.
Mark Cola (06/06/2013 12:05:31 PM):at the moment we are focused on that and related componenets inthe hot section of the engie
HRC (06/06/2013 12:06:08 PM):are you going to be doing the fuel nozzles or parts compents on the natural gas turbines for GE as well ?
Vivek Dave (06/06/2013 12:06:40 PM):there is a possibility of this but it is really up to them to drive the specific applications
JM (06/06/2013 12:07:19 PM):How do you expect the arrangements with GE and others to affect your bottom line this year?
HRC (06/06/2013 12:07:25 PM):In regards to the JTDA, what is the timeline where they make you certifiable in terms of an implemented process in development and commercialization ?
JW (06/06/2013 12:07:50 PM):Would Sigma consider teaming up with a metal printer company to provide built in analysis?
Mark Cola (06/06/2013 12:08:20 PM):we have definite revenue projections in 2013 and 2014 that we are aggressively pursuing and will be reporting on quarterly
WL (06/06/2013 12:08:26 PM):could you talk about the munitions where you see this going. Also revenue possibilities from this.
Vivek Dave (06/06/2013 12:08:30 PM):GE will be in production in 2014
Vivek Dave (06/06/2013 12:09:12 PM): with regards to metal printer companies, we have talked to two of the three largest companies under NDA and these discussions are ongoing
HRC (06/06/2013 12:09:46 PM):Have you talked to other transportation companies like Northrop Grumman or Bombardier ?
Vivek Dave (06/06/2013 12:10:08 PM):For munitions we have licensed the technology to a company with significant direct experience (founded by former shooter and SOCOM individuals) who are currently addressing the best markets for initial introduction.
Vivek Dave (06/06/2013 12:11:05 PM):We started off at our very inception by doing very significant work for Boeing on aero structures and we are actively looking at where this technology will make sense for these applications.
HRC (06/06/2013 12:11:06 PM):Is Sigma Labs attending any upcoming conferences and what are some of the next company updates that we can expect on the horizon ? Licencing agreements ? Osseostat ?
Vivek Dave (06/06/2013 12:11:52 PM):We will most likely be attending several aerospace and defense conferences in 2014 but we are solidifying our plans now
VR(06/06/2013 12:13:13 PM):Is your 3d printing technology currently used or will be used in ‘non-functional’ enterprises such as I have seen with other 3d print companies? Would such ventures be worthwhile for your company/technology?
Vivek Dave (06/06/2013 12:14:50 PM):Although the initial focus is on functional components that have a high quality acceptance set of requirements, there certainly are applications to a wide range of plastic manufacturing. Some of the high end plastics 3D printing is functional and that would represent a logical entry point into non-metals.
JH (06/06/2013 12:15:04 PM):I was reading about titanium-graphene composites being tested at Oak Ridge laboratories. Will your 3D machine being developed with IMI be capable of using those materials when they become available? Have any of the partners you have worked with in the past expressed interest in your quality assurance processes being suitable for use with those graphene strengthened compounds for aerospace, etc.?
Vivek Dave (06/06/2013 12:16:27 PM):Graphenes are still an early stage material with significant challenges in scaleup and mass production. That being said they do of course offer tremendous potential properties advantages. Our system would be applicable to basically any 3D printing system from which we can extract physically meaningful sensor data
KA(06/06/2013 12:16:50 PM):Nice presentation. thanks
Vivek Dave (06/06/2013 12:17:03 PM):Thank you we appreciate your interest
HRC (06/06/2013 12:18:00 PM):Do you have anything to add about the Osseoset Dental Implant system ?
Vivek Dave (06/06/2013 12:18:56 PM):We are seeking commercialization partners who could address the FDA qualification requirements and the 510K filing requirements. We will discuss more as specific details become available
OO(06/06/2013 12:19:25 PM):Can you provide some insight into how current and near term agreements will affect earnings for 2013?
RoG(06/06/2013 12:20:54 PM):What is your # 1 need at this moment? Getting more cash into the company? Signing more contracts?
Mark Cola (06/06/2013 12:21:48 PM):We have definite revenue plans in place for 2013 and 2014. We anticipate a transition into a recurring revenue model as we focus on 3D printing moving into 2014.
HRC (06/06/2013 12:22:01 PM):Are you experiencing difficulties with partners that are unable to address the FDA requirements? Have you considered partners outside the US like Europe or Asia for Osseoset ?
OsO (06/06/2013 12:23:55 PM):Thanks Mark. And great job so far. I’m confident this company will take off within the next few years.
Vivek Dave (06/06/2013 12:24:00 PM):Regarding the FDA required testing, trials, and 510K filings, there is nothing particularly difficult about it, it is really a matter of time and resources that we are dedicating to 3D Printing. We would therefore seek partners who have significant experience in these areas.
Mark Cola (06/06/2013 12:24:18 PM):Our number 1 need at the moment is to deliver on our milestones and performance metrics for GE Aviation and preparing for next applications and components.
Vivek Dave (06/06/2013 12:24:41 PM):we have explore international partnerships and hope to comment on them as more details become available
MJo(06/06/2013 12:24:53 PM):Why based in Santa Fe?
RG (06/06/2013 12:25:12 PM):How can we investors help you do that Mark?
HRC (06/06/2013 12:25:15 PM):Do you have bandwidth constraints ? Are you looking to hire more people ?
Mark Cola (06/06/2013 12:25:36 PM):We came out of Los Alamos National Lab up the road. 300 days of sunshine and the chile is hot!
MJ (06/06/2013 12:26:27 PM):I see.
Mark Cola (06/06/2013 12:26:46 PM):As part of our revenue growth there are personnel and capital plans in place.
JH(06/06/2013 12:27:15 PM):Might we expect to see the Sigma Labs munitions technology tested for drone use? Or is there greater interest in lighter munitions for infantrymen, light armored vehicle weapon systems, or tank ammunitions?
JW (06/06/2013 12:27:33 PM):Does Sigma have any projections for when it will attain profitability?
MJ (06/06/2013 12:28:19 PM):What percentage of the stock is held by the founders?
Vivek Dave (06/06/2013 12:28:23 PM):UAVs are an important part of our current and future national defense strategy and have international applicability. Our licensee is of course exploring all potential applications including these
Mark Cola (06/06/2013 12:29:31 PM):Currently principals and affiliates of the company own about 40% of the stock. Our recent 10K filings provide more insight and details.
HRC (06/06/2013 12:31:46 PM):What is the certification date of the Leap Engine ?
JH(06/06/2013 12:32:40 PM):Is the retention of Udo’s services for easy go-between correspondences with potential foreign partners? Or would he be to help publicize unfolding opportunity on the continent?
Vivek Dave (06/06/2013 12:32:41 PM):2015. Please seehttp://www.snecma.com/IMG/pdf/snecma_leap_fact_sheet_farnborough_2012-2.pdf
JW(06/06/2013 12:33:22 PM):Does Sigma have any projections for when it will attain profitability?
Mark Cola (06/06/2013 12:35:43 PM):We anticipate that our internal business plans and models will lead us to profitability and we will be reporting on our progress quarterly through our 10Q/10K filings.
HRC (06/06/2013 12:36:12 PM):Was Sigma Labs approached by GE or was it the other way around ? How did the relationship start ?
Vivek Dave (06/06/2013 12:36:33 PM):We are seeking to better engage with German-speaking aufdiences as many of the machine tool development and applications development leaders for 3D printing of metal parts are German
Mark Cola (06/06/2013 12:37:02 PM):We were first introduced to GE Aviation by Morris Technologies.
HRC (06/06/2013 12:38:07 PM):With Morris being acquired by GE, is that what Sigma Labs is aspiring for is that not part of the longer term growth plans ?
Mark Cola (06/06/2013 12:38:22 PM):We had first signed an MOU with Morris Technologies before their acquisition by GE Aviation which lead to the signing of the JTDA.
RG (06/06/2013 12:38:55 PM):Sigma recently announced a JV with a Fortune 100 co related to gas turbines. When do you think that Fortune 100 company will make its own press release about this JV?
Mark Cola (06/06/2013 12:39:53 PM):Our long term plan is to first build a sustainable, recurring revenue based business which should be attractive to large industrial-based companies, like GE.
Vivek Dave (06/06/2013 12:40:00 PM):Regarding gas turbine applications we are actively working them now, but on account of NDAs we are currently not at liberty to share the names of our partners.
JH(06/06/2013 12:40:31 PM):Have we seen in past trading volume, or should we expect the company to sell shares time to time to fund Sigma’s part of the IMI 3D print machine being developed. Or is Sigmas contribution through the prototype machines introduction strictly IP and expertise?
KS (06/06/2013 12:42:20 PM):Mr. Cola, do you think the stock is currently fairly priced?
Mark Cola (06/06/2013 12:42:27 PM):We are negotiating a JV arrangement with IMI to commercialize the high-productivity 3D printing machine. There of course can be no guarantees that such an agreement will be reached.
HRC (06/06/2013 12:44:01 PM):25% reduction in time (or process cost savings and optimization) usually translates to a 5-8:1 benefit on top line. What do you expect this to translate to in terms of Margins to the companies if you can’t assess a Dollar Value in sales/revs per nozzle/part ?
Mark Cola (06/06/2013 12:44:49 PM):We greatly appreciate everyones questions and interest in Sigma Labs and we will need to sign off to prepare for another upcoming meeting. Thanks you again.
RG(06/06/2013 12:45:09 PM):I believe in SIGMA 1000%. What else can we investors do to help move the growth (and stock price) along other than buy more shares and tell all of our friends about SIGMA? Will there be another PPM coming?
JorH (06/06/2013 12:46:35 PM):I want to say it is an admirable thing, reading the reduced pay you have taken for the good of your companys bottom line. Hats off, thumbs up and all that. Hoping for your best results. Thx for your time here.
Harit RC (06/06/2013 12:47:33 PM):Thank you… Good Presentation. Look forward to the next one.
Now, some penny stocks have non disclosure agreements announced in a press release every week it seems, most of which never amount to anything.
The important distinction here is that this NDA was not put out in a press release, and Sigma Labs has a documented history of non disclosure agreements that actually materialize into meaningful partnerships. One example is the non disclosure agreement Sigma Labs had with GE Aviation that was ultimately made public by GE Aviation in their own press release: GE Aviation Signs Additive Manufacturing Cooperative Agreement with Sigma Labs .
Investors in 3D printing stocks may want to keep an eye on this little R&D company with a market capitalization of just $30M. I believe the potential for a meaningful partnership with at least one large metals 3D printing company is real.
For those new to this microcap stock, here are some due diligence links for your review:
Sigma Labs, Inc. Files Provisional Patent Application To Further Extend PrintRite3D™ Capabilities And Rapid Process Qualification And Part Certification In Additive Manufacturing And 3D Printing (2/6/13)
Sigma Labs and 3D Printing of Metal Parts: Why it’s Game-Changing (includes comments from Terry Wohlers of Wholers Associates and Greg Morris of GE Aviation, 6/27/2013)
Disclaimer: The above article is not a recommendation to buy, sell, or hold shares of Sigma Labs (SGLB). It is the opinion of the author only and is not investment advice. An individual should never invest in the securities of any of the companies profiled based solely on information contained on 3DPrintingStocks.com. See sidebar for full disclaimer.
Disclosure: I am long shares of Sigma Labs (SGLB). I received no compensation for this article from Sigma Labs or any third party.
Gary Anderson……..Follow me on Twitter: @3DPrintingStock