Sigma Labs web site                                                                   

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Ticker: SGLB
Shares outstanding (following capital raise and NASDAQ uplisting:) ~ 4.6 million
Market cap: $16.6 million

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The year 2017 has started with a bang for Sigma Labs (NASDAQ:SGLB) as the hard work of pursuing their business plan, and supporting customer evaluations of their ground breaking PrintRite3D® suite of products, has begun turning into commercial contract wins with some of the metal Additive Manufacturing (AM) industry’s heaviest hitters. Sigma Labs specializes in providing software solutions for real-time, in-process, sensor based inspection and Quality Assurance (IPQA®) for high-reliability, critical-end-use, metal print builds. The company’s PrintRite3D® product suite is a vital link in creating reliable, certified, metal AM parts as the industry moves into its production phase. It’s unique ability to define data, inspect, analyze, and certify builds during the manufacturing process will prove cheaper and faster than conventional post process inspection options by wide margins.

The caliber of the corporations engaged with Sigma Labs’ product line is impressive to say the least, and is a veritable who’s who of the Additive Manufacturing world. In February 2017 Sigma Labs filed SEC form S-1/A showing a snapshot of current business customers, and the lineup of corporations in the sales opportunity pipeline. Whether current, or in negotiations, the list includes:

 

  • GE Aviation
  • EOS                                
  • Honeywell Aerospace
  • Aerojet Rocketdyne
  • Farinia Group-Spartacus 3D
  • Woodward                                                  
  • GE Power &Water (Switzerland)      
  • Siemens AG
  • Safran Group                          
  • Pratt & Whitney
  • Rolls Royce Plc                                         
  • Sisma (Italy)
  • Michelin Fives (France)                        
  • Aspect (Japan)
  • Additive Industries NV                          
  • Renishaw Plc
  • SpaceX                                                          
  • Moog Inc/Linear AMS
  • Edison Welding Institute                        
  • Michelin Tire
  • Honeywell FM&T (Kansas City)          
  • BMW
  • Blue Origin                                                  
  • Solar Turbines Inc
  • 3D Material Technologies LLC              
  • 13D
  • Polyshape (France)                                   
  • Layerwise (3D Systems)

 

These corporations sit at the leading edge of efforts to establish metal 3D printing as a reliable and proven process for manufacturing complex, critical, high-reliability products at production scales. The spectrum of industries for which metal AM is being established is extensive and growing. Experts believe that metal AM will significantly and beneficially impact part design, cycle time to finished products, production costs, material logistics, part functionality and end-use efficiencies in aerospace, military, automotive, oil & gas, power generation, medical and bio-medical industries. Sigma Lab’s unique selling point, due to PrintRite3D’s® real-time, in-process inspection, analysis and certification, is that it offers even greater savings in production, inspection, and time expenditure costs by avoiding slow and excessively costly conventional post-build inspection techniques available from traditional manufacturing.  Sensor based, real-time, in-process inspection is the next major step in manufacturing efficiency, and PrintRite3D® looks set to deliver.

 

Sigma Labs currently has at least 12 PrintRite3D® systems installed within the Aerospace and OEM 3D Printer manufacturing industries. Systems are currently operational at GE Aviation, Honeywell Aerospace, Aerojet Rocketdyne, Farinia Group-Spartacus 3D, Additive Industries, Siemens AG, Pratt & Whitney, Woodward Inc and an undisclosed European OEM.

Significantly, Sigma Labs announced in January 2017 that they have completed a multiyear commercial contract with an undisclosed leading European OEM corporation for which PrintRite3D® will be embedded in the OEM’s AM equipment offerings. The deal was reported to be conservatively valued at $6 Million USD over a 7 year period.

Mark Cola, President and CEO of Sigma Labs stated:

“We are excited to have such a highly regarded company, which cannot be named due to competitive reasons, be an OEM partner going forward. Building strategic relationships with equipment OEMs has always been a key element of Sigma Labs’ growth strategy – enabling our software to be embedded in AM machines as a salient feature from the very beginning. As part of this agreement, our partner will be able to provide the full power of Sigma Labs’ PrintRite3D® capabilities to its customers, ensuring they can maximize the benefits of In-Process Quality Assurance (IPQA®) during additive manufacturing – which should increase production yields, process reliability, and part quality. The agreement is an important milestone for Sigma Labs as we build alliances to better serve the burgeoning AM industry and bolster our long-term growth trajectory.”

 

Prior to the February 2017 form S-1/A release, a July 2016 form S-1 release showed the German metal printer manufacturer, Trumpf GmbH, listed as having an active PrintRite3D® Inspect™ module installed for evaluation. With the announcement of the unnamed European OEM printer manufacturer, and the removal of Trumpf GmbH from the February form S-1/A, it may be that Trumpf is the undisclosed OEM, and is now embedding Sigma Labs’ PrintRite3D® into their machines.

Perhaps of equal significance, also in January 2017, Sigma Labs announced that it has signed a commercial contract with aerospace giant Pratt & Whitney (a unit of United Technology Corp). Terms of the deal were not disclosed, but Pratt & Whitney, a competitor of GE Aviation and Honeywell Aerospace, is a major player in the manufacturing of aircraft engines and auxiliary power units. This deal may become the first site in which PrintRite3D® will be employed in a full production environment.

Mark Cola, President and CEO of Sigma Labs:

“I’m very pleased to announce that Pratt &Whitney, the esteemed aerospace and defense manufacturer, is joining our Early Adopter Program. Signing high quality, well-known customers coming on the heels of our contract with Siemens just a few weeks ago clearly demonstrates a growing market for our PrintRite3D® quality assurance software and strong brand recognition for our products.”

As noted above, these recent contracts followed hot on the heels of November’s announcement that AM powerhouse Siemens Industrial Turbo machinery AB of Finspang, Sweden (a unit of Siemens AG) has also adopted PrintRite3D® for evaluation. In February 2017 Siemens announced ‘breakthrough results’ at full power and temperature outputs in their gas turbine AM testing, the department where PrintRite3D® is under evaluation.

Non Disclosure Agreements and/or PrintRite3D® system quotes have been exchanged with the remaining fifteen corporations engaged. Undoubtedly the list will be growing.

The planned build-out of production AM manufacturing in the aerospace industry alone is enormous. GE Aviation made a very large splash in the AM industry toward the end of 2016 with their $1.4 billion dollar announcement that they were purchasing the metal printer machine manufacturers Arcam and Concept Laser. Following these purchases David Joyce, CEO of GE Aviation, suggested internal demand for metal AM machines in GE could reach 1,000 in the next 10 years; a statement backed up by GE Additive VP Mohammad Ehteshami who revealed an additional goal to produce 10,000 machines in the same time frame for global customers.

Other major manufacturers are not standing still. Sigma Labs’ partner Honeywell Aerospace has established metal 3D printing facilities at Phoenix, Arizona, Bangalore, India, Bruno, Czech Republic, Shanghai, China, and most recently the Chihuahua Machining Operations center in Mexico. Within these facilities Honeywell has nearly tripled its capacity for metal 3D printing. Led by Donald Godfrey, the Honeywell AM group, alongside the US military research agency DARPA, are currently in the final 3rd phase of an initiative for establishing Integrated Computational Materials Engineering (ICME) principles. The project may well be the defining work of nailing down the crucial techniques required for metal printer operations and in-process inspection. Already, military agency follow-on projects are incorporating this initiative’s program and explicitly stating that sensor based, in-process inspection and analysis will be a structural part of the program. Sigma Labs’ IPQA® and PrintRite3D® has played a central role in this project from the very beginning.

It is clear the expected growth rate of installed printers for AM in aerospace alone is very large. When you combine the build-out of the additional industries establishing metal AM production, the number of printers that will be requiring the capabilities of Sigma Lab’s PrintRite3D® is staggering.

Mark Cola, CEO of Sigma Labs, has spoken of a ‘push-pull’ effect influencing the adoption of the company’s IPQA® and PrintRite3D® product suite within the metal AM industry. Several industry oversight and standards bodies have programs ongoing to establish best practices and guidance for AM manufacturing. The two leading programs are the America Makes/ANSI project 4027, led by several national entities including GE Aviation, Lockheed Martin, and NASA, and DARPA-ICME initiative mentioned above, led by Honeywell Aerospace. The America Makes project has just released its final draft copy of their standard. The framework for the project explicitly acknowledged that the metal AM industry will likely not be viable from a profitability standpoint if conventional post-build inspection techniques were utilized.

See: AMSC 16-033, Preliminary Final Draft AMSC Roadmap (12/14/16)

 


In Process Monitoring

AM offers the capability to have significant in process monitoring, and the capability of in process monitoring is expected to grow significantly in the next several years. This will dictate what data should be captured and when this data can be used to give assurances that a part was made to a required specification. Currently, it is not possible to reliably take process monitoring data and convert it into an accurate 3D file representing the part manufactured. However, this technology is growing rapidly. Further, the only way to get the data necessary for the qualification of critical parts is through CT scanning. This process is very expensive and represents a significant barrier to the industry. As long as 100% CT scanning of parts is required, a business case for AM will be difficult to justify.

These programs are serving to push Sigma Lab’s IPQA® and PrintRite3D® into the industry. The regulating and oversight bodies recognize that IPQA® is a crucial component to enabling metal AM manufacturing.

An additional push is starting to come from the metal printer machine manufacturers themselves. As of the end of 2016 there were 25 metal 3D printer manufacturers globally. The AM industry initiatives are currently mainly focused upon Powder Bed Fusion machines. Only 18 of these manufacturers produce Powder Bed Fusion machines. The remaining types of metal printers fall under Binder Jetting, Direct Energy Deposition and Material Jetting formats.

Sigma Labs has PrintRite3D® installations already active with Trumpf gmbH and Additive Industries NV. Renishaw, Sisma and Aspect are already engaged with Sigma Labs’ offerings. Sigma Labs states that they believe “there is potential for our PrintRite3D® software to be incorporated into a majority of 3D metal printing devices made by companies like Electro-Optical Systems (“EOS”), Additive Industries, Concept Lasers, Trumpf Lasers, Renishaw, Sentrol, Farsoon and others.” As it continues to appear that sensor based in-process systems will be utilized by the AM industry, more printer manufacturers will undoubtedly turn to Sigma Labs.

Many of these machine manufacturers have their own version of sensor based in-process inspection systems. It is unclear whether these systems are capable of the sophistication and analytical power of PrintRite3D®. However, Sigma Labs retains patent ownership within the space covering sensor based in-process inspection methods. Further, there is an inherent conflict of interest when a printer manufacturer incorporates its own in-process quality inspection solution in the part-build process. It is an unaccepted practice in Quality Assurance that a manufacturing machine, or process, also performs its own self inspection and critical evaluation of a produced part. PrintRite3D® provides a completely independent 3rd party quality assurance platform that impartially determines build-to-specification qualification and certification. Independent impartiality is a key aspect of the service offered by PrintRite3D®. None the less, serious competition may come from some of these players. To date, information covering the industry’s testing, evaluations, and the various standards development projects, indicates that thus far only Sigma Labs’ PrintRite3D® is being utilized in these efforts.

Perhaps the largest force for Sigma Labs’ product move into the industry is the pull that is inherent in the motivation behind Additive Manufacturing itself. Promising unprecedented part design freedom, enhanced part function, integrity, and system efficiencies across the shop floor, the cost savings to manufacturing and service divisions across the global network of manufacturing should easily be in the multiple tens of billions of dollars, and could approach $100 billion. PrintRite3D® is a vital enabler of these savings. Just at GE alone, in their September 2016 AM Investors Meeting Conference, Jeff Immelt, the CEO of GE, stated that they believe the cost savings will be $3 to $5 billion:

“We expect the business to have about $300 million of revenue in 2017 and grow quickly to $1 billion by 2020. In addition, it should facilitate $3 billion to $5 billion of cost out inside GE over time.”

In certain cases PrintRite3D®’s advanced sensor technology is not just an additional product, but a necessity. Additive Manufacturing pioneer and current GE Executive, Greg Morris, stated that GE Aviation sees the use of sensor based inspection systems as a necessity. In that same September 2016 Investor Conference Morris  stated:

“We see four primary industry drivers that create the value chain, machines; materials; production; and services. Primary among these is the maturation and advancement of the equipment capabilities. Current laser and electron beam technology is very capable, but in order to achieve mass adoption, we will need to take machine productivity and speed to a new level. For each step change in machine speed and size, the number of parts that become candidates for additive multiplies exponentially. We also believe there are number of opportunities to incorporate advanced sensing and monitoring capabilities into future machines that will result in unparalleled part consistency and quality.”

These savings will be repeated across the global AM manufacturing industry. But with respect to the industry knowing that conventional post-build inspection makes the proposition unprofitable, there is a very large pull for the type of in-process inspection and analysis that Sigma Labs’ PrintRite3D® package provides. Sigma Labs states in their SEC form S1 that the company believes PrintRite3D® is capable of reducing manufacturing costs by a factor of 10, and development time for new design parts by 50% or more. It has been stated numerous times that current post-build inspection techniques cost more than the making of the part; on the order of $1 dollar to build verses $6 dollars to inspect.

Assisting this pull into the AM industry is the fact that PrintRite3D® is printer machine agnostic. Sigma Labs’ product suite can be installed within any of the various manufacturers’ machines. This aspect is very important because not only are build processes different between different machines and materials, but repeat builds on the same machine can vary in quality.  It is within this framework that Sigma Labs’ In-Process Quality Assurance™ will excel, allowing end users to have certification of part quality from different suppliers, using different machines, and different processes.

Additionally, efforts have long been underway to integrate the front-end, machine, and back-end software platforms to enable seamless handling of data, planning and logistics. A much anticipated 3D part-build software simulation platform for the front-end of the AM process is expected from the private company 3DSIM, out of Park City, Utah. In early 2016 Sigma Labs signed a Technology Development Agreement with 3DSIM to link the analysis and IPQA® capabilities of the two platforms. A combination of 3DSIM’s modeling and PrintRite3D®’s in-process inspection would lead to a groundbreaking, powerful, new level of AM manufacturing process offering to the industry. This should prove to be a powerful tool in the offering of Quality Assurance to the AM industry.

Complementary to the push/pull from the AM industry, Sigma Labs established a 3D Printing Contract Manufacturing division internally to the company. This division employs an EOS M290 printer machine for providing contract printing services to corporations desiring AM production parts. Sigma Labs’ printer utilizes the full PrintRite3D® suite of modules for providing Quality as a Service (QaaS) to their customers. This ability enables Sigma Labs to both serve the contract printing demand in the industry, and ensure that they are abreast of the technological challenges and changes that are presented in the AM industry. With Sigma Labs’ QaaS philosophy using PrintRite3D®, the customer base experiences the full potential of Sigma Labs’ product line.

Sigma Labs’ Contract Printing division is growing. Aside from the traditional manufacturing powerhouses such as GE and Honeywell, the AM industry is seeing the birth of new powerful players who are shaking up the AM supply chain. One such company is Morf3D.

In February 2017 Sigma Labs announced it has entered into a strategic alliance with California based Morf3D. Morf3D is a forward thinking partnership between Altair, RUAG and Morf3D.  It is focused on building the AM ecosystem and is deeply connected within the aerospace, space, medical and automotive industry for AM manufacturing.

“In an effort to bring enhanced solutions for additive manufacturing (“AM”) to the aerospace and defense (“A&D”) sector and capitalize on growth in demand for 3D printed metal components within the A&D industry, we recently entered into a strategic alliance with Morf3D, a California based company that specializes in additive engineering and manufacturing with metals and that provides advisory services in additive manufacturing strategy and technology adoption road-mapping.  By leveraging our PrintRite3D® quality assurance software, we believe that Morf3D will be able to provide a means for its customers to increase AM production rates while ensuring consistent part quality, thereby better meeting the high quality demands of its aerospace customers. We also plan to work together with Morf3D to manufacture certain 3D printed parts.  Morph3D has informed us that it is a party to development contracts with aircraft, space, medical and automotive customers, and that it expects to commence serial production contracts in 2017.  We believe that by working together with Morf3D, the companies we will be in a position to design, manufacture, and assure the quality of AM components across a number of important aerospace applications….” (Quoted from February 2017 S-1 filing, page 38).

The partnership divides the responsibilities with Altair’s focus on software for design and analysis, Morf3D leading program management, part production and quality control, and RUAG leading the design, analysis, documentation, testing and certification.  As Franck Mouriaux, GM at RUAG, said “The partnership between Altair, Morf3D and RUAG Space puts together the perfect ecosystem to revolutionize the way space components are engineered, produced and qualified. This breakthrough is absolutely mandatory for us to face the challenges of the new space industry and remain competitive.”

Sigma Labs has recently been making significant moves to bolster its corporate balance sheet and exposure to the wider financial and investment world. In January 2017 the company announced that two new Board of Directors, Sam Bell and Frank Garofalo, would become board members effective immediately. A third board member, John Rice, will be added effective after the closing of a currently open secondary share offering. These three members are significant additions to the leadership of Sigma Labs. All three newly appointed board members have lengthy records of success and experience within the corporate world.

In February 2017 the company issued SEC Form S-1/A detailing current business status, planning, and formal request submissions for share listing on the NASDAQ Capital Market (continuing under the SGLB ticker). The up-listing was successful. On February 15th Sigma Labs’ stock and warrants began trading on the NASDAQ. Associated with the listing on the NASDAQ exchange, Sigma Labs opened an underwritten secondary share offering for raising new cash for facilitating company growth, expansion of their Contract Printing Division, and shoring up the company balance sheet. The secondary offering is intended to raise just under $6 million USD, and result in 4,653,789 shares outstanding, The authorized share limit for the company will be 7,500,000 shares. There was room in the authorized share count for Sigma Labs to have attempted a higher cash raise in the offering. The fact that they did not may be an indication that they expect significant new commercial contract revenue from the AM industry. In any case, the moves would serve to greatly strengthen the directorship, corporate balance sheet, and provide the opportunity for a much larger investor base to take part in Sigma Labs’ business.

One of the interesting aspects of an investment in Sigma Labs is that of current timing. The 2013 bubble that all 3D printing stocks experienced was pierced as investors came to realize they had significantly misjudged the difficulty and delays encountered in establishing and initiating AM industry manufacturing and revenue streams. 3D Printing stocks found their bottom in 2016 and have since moved up. Sigma Labs experienced the same share price rise and decline as the rest of the 3D printing space. However, Sigma Labs’ share price continued to decline in the limited OTC market as the twin drivers of uncertainty over whether sensor based in-process technologies would be incorporated by the AM industry, and shareholder dissatisfaction over the pace of developments within the industry, took effect. Industry delays stretched the company’s bottom line. Additionally, the prevailing secrecy within the nascent and highly competitive AM industry shrouded progress updates and data that would have been useful for determining company valuations. As a result, it is probable that most of Sigma Labs’ future growth is not currently factored into the stock price.


Valuation

Current Wall Street discussions of the 3D printing industry revolve around the corporations that have participated in the industry for a number of years. So far, this does not include Sigma Labs. A successful up-list to the NASDAQ exchange, coupled with an onset of revenue generating contracts, will change that. Once Sigma Labs is considered as an industry participant within Wall Street, the company should begin being valued similarly to the rest of the industry.

There are very few pure-play 3D print industry companies; even fewer for metal AM specifically. The STOXX Global 3D Pure-Play Index includes just 9 companies, including 3D Systems, Stratasys, Materialise, Voxeljet, ExOne, SLM Solutions, Organovo and Perception Inc. Among this group, the minimum, maximum, and average earnings per share ratio is -5.74, 0.22, and -1.70. The minimum, maximum and average price per sales ratio is 1.00, 10.05 and 4.45.

As the market ponders a proper valuation for Sigma Labs, a median pricing of the company would place it around a price per sales ratio of 4.45. Upon completion of the secondary share offering, with an outstanding share count of 4,653,789, a $10 million per year sales rate would place the stock in the neighborhood of $9.50 per share. A $20 million per year rate would price the stock around $19.00 per share.

The continued diligent work by the industry and Sigma Labs over the past three years has put the company in a position where the onset of real contract revenues looks to have begun. While an investment in Sigma Labs will require some patience yet, the pace of developments within the industry is moving rapidly now. With the industry looking at PrintRite3D®’s capabilities as a powerful enabler of the manufacturing process, Sigma Labs should see considerable growth going forward.


Author:
M.S. Rupe,
for 3DPrintingStocks.com

 

 


In news this morning, Sigma Labs (SGLB) is announcing a capital raise of $5.8 million, and is uplisting to the NASDAQ capital market from the OTC, effective today.

The common stock and the warrants will begin trading on the NASDAQ Capital Market under the symbols “SGLB” and “SGLBW,” respectively, effective as of market open today and the offering is expected to close on February 21, 2017


Sigma Labs (web site) develops and engineers advanced, in-process, non-destructive quality inspection systems for commercial firms worldwide seeking productive solutions for metal-based 3D printing, and other advanced manufacturing technologies. Sigma has a proud Los Alamos legacy and a future rooted in bringing advanced materials and processing solutions to clients worldwide. It was founded in 2005 by high-level scientists from the world-renowned Los Alamos National Lab. The company went public in 2010 with the commercialization of the breakthrough PrintRite3D® system.

Sigma Labs develops manufacturing and materials technologies and R&D solutions for first-tier integrators like Boeing, GE Aviation, Honeywell Aerospace, and other commercial firms around the globe, and has current contracts with Federal Government and private industry clients to develop technologies from their conception through the design, building, and testing of prototype systems by integrating sensing, software, materials, and manufacturing technology risk-reduction solutions.


The Offering

The offering consists of 1,410,000 units (“Units”) at an offering price of $4.13 per Unit, with each Unit consisting of one share of the Company’s common stock and one warrant, with each warrant giving the investor the right to acquire one share of common stock at an exercise price of $4.00 per share. The shares of common stock and associated warrants are immediately separable and will be issued separately.

Gross proceeds to the Company from the Offering will be approximately $5.8 million before deducting underwriting discounts and commissions and other estimated Offering expenses payable by the Company. The Company has granted the underwriter a 45-day option to purchase (i) up to 211,500 additional shares of common stock at the public offering price per Unit less the price per warrant included in the Unit and/or (ii) additional warrants to purchase up to 211,500 additional shares of common stock at a purchase price of $0.01 per warrant to cover over-allotments, if any. The Offering is expected to close on February 21, 2017, subject to customary closing conditions.

The common stock and the warrants will begin trading on the NASDAQ Capital Market under the symbols “SGLB” and “SGLBW,” respectively, effective as of market open today.  All Unit, share and per share and Unit amounts described above reflect a 1-for-2 reverse stock split that became effective as of today.

Dawson James Securities, Inc. acted as the sole underwriter for the offering.


Obviously uplisting to NASDAQ is a huge milestone for this company, and the increased exposure to both retail and institutional investors comes at a time when revenues should be strongly ramping up based on prior news from the company

As many investors are aware, financing deals are typically preceded by a quiet period and are then followed by strong news flow. I expect we will be hearing more from Sigma Labs and the company’s near and longer term projects soon with this financing deal completed.

I began buying shares of SGLB earlier this week, and will have a feature article on the company soon, including a Q&A with the CEO of Sigma Labs, Mark Cola.

I believe SGLB will be the best performing 3D printing stock during 2017 for reasons I’ll discuss in future articles.


Disclosure: I own shares of Sigma Labs (SGLB). I have not been paid by any company or any person for this update.

 

Best wishes for profitable investing,

Graphene 3D Lab Inc. gary siig

 

I’ve been quiet about Sigma Labs (SGLB) (web site) for about two years now.

As long time subscribers know, I was very bullish on the company in 2013, and shares in SGLB strongly outperformed all other 3D printing stocks by the end of the year.

The problem was, the company didn’t generate anywhere near the amount of revenues I expected (which of course was not an uncommon occurrence for 3D printing stocks during 2014-2016). Due to the lack of sales, I sold my shares at a profit, (having bought them near their all time lows up to that point), and that turned out to be a good decision.

In fairness, I believe management fully expected faster commercialization of  Sigma Labs’ PrintRite3D® system, as well. The patented system includes integrated, interactive software modules that combine inspection, feedback, data collection and critical analysis for additive manufacturing. By performing inspection during the printing process, it ensures perfect parts (essential in high-value aerospace applications), and speeds up the overall printing process.

The technology from Sigma Labs:

  • Provides objective evidence of compliance to design intent
  • Optimizes 3D printing production
  • Provides defect detection during printing
  • Reduces scrap and increases yield

But it’s time to take another look at Sigma Labs, and build a position again (I’m a buyer today, 2/14/17) and plan to add to my position over time.

I’m also happy to be publishing (soon) a Q&A with the CEO of Sigma Labs, Mark Cola. I think investors will find the Q&A interesting and informative.


What investors should be aware of right now is this:

Sigma Labs filed an S-1 statement that I believe has some hidden gold in it.
On page 38 they mention a partnership with a private company called Morf3D:

In an effort to bring enhanced solutions for additive manufacturing (“AM”) to the aerospace and defense (“A&D”) sector and capitalize on growth in demand for 3D printed metal components within the A&D industry, we recently entered into a strategic alliance with Morf3D, a California-based company that specializes in additive engineering and manufacturing with metals and that provides advisory services in additive manufacturing strategy and technology adoption road-mapping.  By leveraging our PrintRite3D® quality assurance software, we believe that Morf3D will be able to provide a means for its customers to increase AM production rates while ensuring consistent part quality, thereby better meeting the high quality demands of its aerospace customers. We also plan to work together with Morf3D to manufacture certain 3D printed parts.  Morph3D has informed us that it is a party to development contracts with aircraft, space, medical and automotive customers, and that it expects to commence serial production contracts in 2017.  We believe that by working together with Morf3D, we will be in a position to design, manufacture, and assure the quality of AM components across a number of important aerospace applications, which could lead to the generation of a meaningful amount of additional revenue for our company beginning in 2017.

(Emphasis mine)

 

Morf3D ( www.Morf3D.com ) is a Tier I supplier of 3D printed parts to several aerospace giants (including Boeing), and I’ve been told they can not keep up with demand. This is why a partnership with Sigma Labs not only makes sense, but why that partnership (I strongly believe) will bring significant revenue to SGLB this year, in addition to the revenue from recently announced news such as:

Sigma Labs Announces Pratt & Whitney Contract

Sigma Labs Enters Into Long Term Commercial Agreement With Major European OEM for PrintRite3D®

Sigma Labs Wins Phase III DARPA Contract with Honeywell


Sigma Labs has a current market cap of just $13 million, which will double or triple with the ramp in cold hard revenue that I’m expecting the company to announce this year.

Much more to come!

Best wishes for profitable investing,

Graphene 3D Lab Inc. gary siig

 

 


Disclosure: I own shares of Sigma Labs (SGLB) I have not been paid by any person or any company for this article.

 

 

 

 

3D Printing Stocks rally3D printing stocks are in rally mode following respectable results from industry leader 3D Systems (DDD).

Adjusted earnings of $0.12 per share were almost double what the street expectations were, and I’m sure there some short covering involved in the 19% move higher to top $14.50/share.

In the release, CEO Vyomesh Joshi stated:

“We were pleased with continued strong demand for our healthcare solutions and software as well as increased materials sales into advanced industrial and healthcare applications” 

It’s noteworthy that DDD is seeing the greatest revenue driver in the medical applications (including materials and software) space- and this is an established trend.

The 3D printing medical devices market (consisting of 3D printing equipment, materials, and services & software) is poised to grow at a CAGR of 25.3% from 2015 to 2020, and to reach USD 2.13 Billion by 2020 according to MarketsandMarkets.


Future Player in 3D Printing Medical Device Market

3D printing stocks rallyThis may be a future player in the 3D printing medical applications space that’s as-yet unknown…

Take a look at Amedica Corporation (web siteticker, AMDA

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Amedica is commercializing silicon nitride ceramics as a biomaterial platform.

The AMDA market cap is just $15M with about $19.5M in sales last year for a P/S under 1

and…

The company is the first to 3D print Silicon Nitride for medical applications/joint replacement market.

see:  Silicon nitride plus robocasting equals a new approach to medical applications

3D printing stocks rallyAmedica is also waiting to hear from the FDA on a Composite Interbody Spinal Device utilizing silicon nitride. A decision from the FDA should be announced within the next two weeks according to this press release in June. Obviously a positive announcement from the FDA should be a strong catalyst for a move higher.

Beyond the pending FDA decision on the company’s interbody spinal device, Amedica Corporation is definitely “one to watch” if you are a 3D printing investor and are looking for a future player in the high-growth medical applications space of 3D printing.

 

 


Best wishes for profitable investing!

Graphene 3D Lab Inc. gary siig

 

 


Disclosure: I am long shares of AMDA. I have not been paid by any person or company for this update.

 

 

 

 

 

 

 

MicrocapResearch.com

 

 

 

 

 

Shares outstanding: 21.02 million
Price on date of publication: 
$5.06
Market cap: 
$ 106.36 million
Insider ownership:
 29%
Float: 
12.45 million
Institutional ownership: 
4%

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Goldman Sachs research believes that augmented reality (AR) and virtual reality (VR) have potential to become the next big computing platform and that AR/VR will become an $80 billion industry by 2025.  Forrester research estimates that enterprise customers will adopt 400,000 smart glasses in 2016 alone.  In 2015 the industry witnessed smart glass pilot program across a production line, but over the second half of 2016 commercial rollouts will expand and encompass an entire factory.  Google brought the hype to the industry in 2014 with the introduction of Google Glass, but one company’s smart glasses have outperformed Google Glass time in and time again in the enterprise field where it matters most.

 

The company that outperformed Google Glass in the enterprise field with its first generation augmented reality smart glasses was Vuzix (VUZI).  Vuzix has sold thousands of smart glasses to enterprise customers over the past few years and the company is planning a commercial rollout of its next generation smart glasses this summer.  Vuzix’s second generation smart glasses (M300) were developed based on the feedback from thousands of users.  The M300 smart glasses will continue to expand the performance gap between Vuzix’s smart glasses and the competition within the enterprise marketplace.


Market Overview: Enterprise Adoption of Augmented Reality Smart Glasses Will Be Massive

  • “Over 14 million US workers will use smart glasses by 2025Forrester
  • “8 % of all US workers will use smart glasses in their jobs by 2025” – Forrester
  • “Augmented reality is expected to generate $80 billion in revenue (excluding hardware) by 2020 and become the backbone of immersive journalism where readers can experience a story and be part of it.” – Manatt Digital Media
  • “Enterprises will spend over $30 billion on smart glasses hardware through 2025” – Forrester
  • “You’ll start seeing them (smart glasses) used on a much larger scale than they were in 2015: Moving from one line to the whole factory, or from one factory to the whole bullpen of factories that support a process” – APX Labs via Washington Post

vuzi-1

Forrester estimates that enterprise customers will adopt 400,000 smart glasses in 2016, with the total adoption of smart glasses expected to reach 14.4 million by 2025. The 2025 estimate assumes that 8% of US workers will wear smart glasses as part of their jobs.  New smart glass device unit sales are expected to make up a majority of unit sales through 2021 until sales of replacement units eclipse new units.

vuzi-2

Forrester identified 264 jobs in the US that are most likely to benefit from smart glasses including the most jobs such as technician, repairer, operator and nurses.  Other jobs that are less common that made the list include museum curators and surgeons.  GE’s aviation engineers use APX Labs’ skylight software and smart glasses to power real-time, first person collaboration.  General maintenance and repair workers are expected to adopt a large number of smart glasses.

Forrester interviewed 13 vendor and user companies to compile its most recent report on enterprise smart glasses.  Vuzix works closely with more than half of the companies referenced in Forrester’s industry report including Intel, Boeing, General Electric, APX Labs, Atheer, Kopin and Salesforce.

Boeing, Airbus and General Electric are early users of smart glasses and have active smart glass pilot programs with Vuzix.  General Electric is expected to do a large commercial rollout of smart glasses in 2016 based on commentary provided by APX Labs in a November 2015 interview with Tech Crunch.

Vuzix partners with key software developers including APX Labs, Atheer and Salesforce, which are developing software to support the deployment of enterprise smart glasses.  These key relationships are yet another key confirmation why Vuzix is a leader amongst leaders in the augmented marketplace.

In addition to the companies named in the Forrester report Vuzix has partnerships with SAP, Lenovo, XOeye, Pristine Labs, AMA, NTT Data, HP, IBM, Augmate, Sony, AirWatch as well as several other around the globe.  Vuzix is also working closely with key smart glass integration partners including Accenture, who specializes in effective implementation of large-scale mobile technology deployments for clients such as Airbus.


Vuzix logoOverview

Vuzix Corporation (VUZI) is an award winning, leading developer and supplier of smart glasses and video eyewear products in the consumer, enterprise and industrial markets.  The company has won 20 Consumer Electronics Show Innovations awards and holds over 40 patents and 23 additional patents pending along with numerous IP licenses in the Video Eyewear field.

The major shareholders of Vuzix are the founding management team and Intel Corporation, which collectively own approximately 40% of Vuzix Corporation.  Intel Corporation invested $24.8 million in Vuzix in January 2015 and owns 24% of the company.  Founded in 1997, Vuzix is a NASDAQ listed company with offices in Rochester, NY, Oxford, UK and Tokyo, Japan.

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Shares outstanding: 21.02 million
Recent price: 
$5.06
Market cap: 
$ 106.36 million
Insider ownership:
 29%
Float: 
12.45 million
Institutional ownership: 
4%


The Next Big Thing: Augmented Reality

Augmented reality is often times referred to as mixed reality, superimposes information or images on top of the real world through glass or a display of a device.  Virtual reality on the other hand provides a view of computer-generated scenes and is totally immersive. Augmented reality allows users to see what’s going on around us, whereas virtual reality users are restricted to a small area.  This is one of the prime reasons why augmented reality will have a more immediate practical applications for business according to a BBC News interview with industry leaders published earlier this year.

Google’s Glass project brought an incredible amount of media attention to the smart glass industry and augmented reality.  However, Google learned quickly that the company’s smart glass design was ill suited for consumers so the company decides to market the product to enterprise customers.  Enterprise customers were excited to have a hardware offering that could improve efficiencies and drive up productivity in manufacturing, warehouses for order picking and receiving as well remotely supporting service technicians.

Unfortunately for Google the company’s experiment to serve enterprise customers with a consumer designed product resembled a square peg being jammed into a round hole.  Google’s customers were left with a disappointing taste in their mouth and yearned for  augmented reality hardware offering that could deliver on Google’s initial promises.

In January 2015 Google announced that the company ended the sale of Google Glass under its explorer program. Google’s smart glass product simply didn’t live up to expectations.  The battery life was exceptionally short lived, the processor suffered from overheating due to inadequate tech specifications and to make matters worse the head worn device shorted out frequently from perspiration.   Google Glass failed to deliver real-time video stream, which makes any attempt at remotely delivering field service advice nearly impossible.

Google cared about its enterprise customers and instead of bailing on those customers Google picked up the phone and called the leading augmented reality manufacturer in the marketplace.  The industry leader that was on the other end of the phone call from Google was Vuzix, a company that was founded in 1997 in Rochester, NY that has been building a foundation in optics and wearable displays for nearly 20 years.

Vuzix introduced the M100 smart glasses in 2013, which were dubbed as the “first true competitor to Google Glass” by the Examiner.  Enterprise customers learned just a few years later that Vuzix’s M100 smart glasses were not simply a competitor to Google Glass, but the augmented reality hardware device that Google itself would recommend to its customers.

vuzix-3

 

Vuzix has sold thousands of M100 smart glasses across a variety of industries including warehousing, logistics, biopharma, oil & gas as well as telemedicine industries since 2013.  Vuzix has worked with hundreds of companies that have evaluated the company’s smart glasses and provided critical feedback and user experiences.  Vuzix listened to the feedback provided by the company’s vast and diverse customer base, which led to the design of the M300 smart glasses.

Vuzix’s M300 smart glasses will address critical and necessary feedback from customers that will increase the value proposition for enterprise customers.  The ergonomic design of the M300 results in a sturdier, tougher and lighter device versus the first generation M100 smart glasses.

The M300 will feature a hot swappable battery that allows users to swap out an existing battery with a fully charged battery without skipping a beat.   The M300 will be waterproof, which is critical for the HVAC and other industries that may encounter wet environments.  Vuzix partnered with a leading US based Tier-1 contract manufacturer (Jabil Circuit) to produce the M300 smart glasses. The M300 will list for $1,499 or an increase of $500 over its predecessor the M100.

The M300 is set for commercial launch over the summer and industry researchers are expecting enterprise smart glass demand to hit full stride over the second half of 2016.  Vuzix’s known customer list includes DHL, General Electric, Airbus, Boeing, Tesla, Daimler, Volkswagen, Bosch, Bechtle and many more.  In total Vuzix has well over 100 customers including over 40 of the Fortune 100 companies.


A Close Look Into Vuzix’s Current Products and Pipeline

Vuzix M100 smart glasses for enterprise customers will soon be replaced by the M300, which is an all-around more impressive device in terms of design, functionality, features and component upgrades.  The “M” in front of Vuzix products stands for monocular and any product that begins with a “B” is a binocular based product.  The M300 will be the hit of the year for Vuzix beginning this summer, but the company’s current product offerings and pipeline does not end there.

vuzi-4iWear Video Headphones:

Vuzix currently generates limited revenue from sales of its iWear video headphones, which are immersive headphones best suited for gamers, drone owners, medical/dental facilities and other markets around the globe.  The iWear video headphones sell for $499 and the iWear’s direct competitor is the Avegant Glyph.  Vuzix encountered some manufacturing and supplier quality issues over Q4 2015 and the first half of 2016.  However, over the next month the company is expecting to reach full production levels.  The company recently launched an initiative with market leading companies such as GoPro to enhance iWear sales opportunities.

vizi-5M3000 Smart Glasses

Vuzix is currently working on the company’s first waveguide based product for enterprise customers.  The M3000 features all of the advantages of the M300, but utilizes the latest optics to deliver a 1.4mm thin see-through display that will enable more advanced AR applications.  The M3000 is expected to begin shipping in the fall of 2016, shortly after the commercial launch of the M300.

 

 

vuzix-sunglassesVidWear B3000 Series Sunglasses

Vuzix is working on augmented reality sunglasses that resemble fashion-based sunglasses for enterprise customers and prosumers.  The VidWear B3000 waveguide sunglasses blend fashion and technology and is expected to be one of the world’s first sunglasses with integrated video.  The B3000 allows for full see-through capabilities in fashion glasses.  The B3000 VidWear products are targeted for introduction into the marketplace sometime in 2017.

The AR3000 waveguide augmented reality sunglasses will be Vuzix’s first binocular augmented reality smart glasses viewer.  These sunglasses are expected to feature two HD cameras with one for gesture support.  The wearer will be able to reach out and manipulate 3-D objects overlaid in the real world.  The AR3000 is being developed to provided advanced operator support for enterprise, industrial and medical uses.


Waveguides and Display Engines

Vuzix holds over 40 patents and 23 additional patents pending along with numerous IP licenses in the Video Eyewear field.  Vuzix has developed waveguide displays that use complex displays engines to enable image and video viewing through a microscopic display.  Vuzix is now producing display engines at the diameter of a large pencil with optical displays that are as thin as reading glasses.

During the FY 15 Q4 conference call Vuzix indicated that the company is actively sharing the company’s new waveguides and display engines with the public.  The display engines are mini projectors built into the wearable displays that beam an image into the waveguide displays for users to view.  Vuzix generated over $200,000 of revenue from waveguide sales to Intel in Q3.

The Tier-1 customers that Vuzix is working with are believed to be on par with the likes of Apple, Samsung and LG, which are all actively pursuing, augmented reality smart glasses for the consumer marketplace.  Other PC OEM manufacturers including HP and Dell are anticipated to enter the consumer augmented reality marketplace as well.

The augmented reality arms race occurring behind closed doors to introduce consumer centric smart glasses is in full swing.  The arrival of the first generation of smart glasses for consumers will hit the market within the next 6 to 18 months and Vuzix is well positioned to be a key player within the consumer smart glass marketplace.


Why Intel Corporation Invested $24.8m in Vuzix

In January 2015 Intel Corporation invested $24.8m (30% stake that currently sits at 24%) in Vuzix to advance Vuzix’s waveguides for fashion based wearable display products for the consumer marketplace.  Intel’s investment provided Vuzix with the financial resources to build a 30,000 square foot manufacturing facility to manufacture waveguides for the company’s next-generation wearable display products as well as the company’s strategic partners.

Intel has been providing silicon expertise for Vuzix behind closed doors for Vuzix’s next generation augmented reality smart glasses.  Intel and Vuzix are also working together on a secret augmented reality project led by Intel.  In December 2014, Intel partnered with Luxottica, the owner of Oakley fashion sunglasses on a collaborative research project to bring fashionable smart glasses to consumers.

The Wall Street Journal reported in March 2016 that Intel was developing an augmented reality wearable headset. According to the Wall Street Journal Intel’s augmented reality wearable headset is a reference design that will ultimately end up white labeled and sold through a leading OEM.

According to a recent SEC filing Vuzix has supplied Intel (a related party) with over $200,000 worth of waveguides that are believed to be inside of Intel’s augmented reality smart glasses reference.  Vuzix’s waveguides are super thin (1.4mm thick), high quality, relatively inexpensive compared to competitive offerings and ideally positioned for fashion based consumer smart glasses.

Intel has acquired a handful of augmented reality companies and technologies over the past two years.  Intel’s acquisitions and investments in augmented reality exceed $500m and are closing in on $1 billion.  Intel typically collaborates with a company and acquires them or makes and initial investment and acquires the company within a 24-month period.  Intel’s initial $24.8 million investment in Vuzix occurred 16 months ago, which makes Vuzix a potential takeover target within the next 6 to 12 months.


Management Team

Paul J. Travers, CEO, President and Director (Holds 2.55 million shares or 12.1% of shares outstanding)

Paul J. Travers was the founder of Vuzix and has served as the President and Chief Executive Officer since 1997 and as a member of the board of directors since November 1997. Prior to the formation of Vuzix, Mr. Travers founded both e-Tek Labs, Inc. and Forte Technologies Inc. He has been a driving force behind the development of our products for the consumer market. With more than 25 years of experience in the consumer electronics field, and 15 years of experience in the virtual reality and virtual display fields, he is a nationally recognized industry expert. He holds an Associate degree in engineering science from Canton, ATC and a Bachelor of Science degree in electrical and computer engineering from Clarkson University.

Grant Russell, CFO, Executive Vice President, Treasurer and Director (Holds 0.9 milion shares or 4.2% of shares outstanding)

Grant Russell has served as the Chief Financial Officer since 2000 and as a member of the board of directors since April 2009. From 1997 to 2004, Mr. Russell developed and subsequently sold a successful software firm and a new concept computer store and cyber café. In 1984, he co-founded Advanced Gravis Computer (Gravis), which, under his leadership as President, grew to become the world’s largest PC and Macintosh joystick manufacturer with sales of $44,000,000 worldwide and 220 employees. Gravis was listed on NASDAQ and the Toronto Stock Exchange. In September 1996, Gravis was acquired by a US-based Fortune 100 company in a successful public tender offer. Mr. Russell holds a Bachelor of Commerce degree in Finance from the University of British Columbia and is both a US Certified Public Accountant and a Canadian Chartered Accountant.

Key Stakeholders

Intel Corporation investing $24.8 million in January 2015 and currently owns 24% of Vuzix Corporation.  Intel has an option to secure two Vuzix corporate board seats and also has the right of first refusal to match any strategic investment made by another company in Vuzix.

Analyst Research

Vuzix is current covered by two sell-side analysts Chardan and H.C. Wainright with an average rating of buy and a price target of $10.00. Both sell-side analysts expect revenue FY17 revenue to double compared to FY16 due to new product rollouts commencing in FY16.

Chardan maintains a buy recommendation for Vuzix and a $10.00 per share price target.  Chardan’s price target is based on 10-12 times Q4 2017 revenue run rate of $19 million.

H.C. Wainright maintains a buy recommendation for Vuzix and a $10.00 per share price target.  H.C. Wainright’s price target was based on a DCF analysis to arrive at a $10.00 price target.


Why We Are Watching Vuzix Closely

Vuzix is well positioned for a major uptick in business activity in the second half of 2016 driven by the commercial launch of the M300 smart glasses.  Vuzix is working closely with Intel on a secret project focused on consumer fashion based smart glasses that provides additional upside for investors. Vuzix’s product pipeline is market leading and extensive, which positions the company for rapid market penetration and growth for years to come. Vuzix (VUZI) shares are trading at an incredible discount to fair value and now might be a good time to take a closer look at Vuzix, a market leader that has all the markings of being The Next Big Thing in Augmented Reality.


Gary Anderson sig.

 


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Disclosure: Receipt of $10,000 from an unrelated third party

PyroGenesis CanadaWhile I’ll still be writing about 3D printing stocks in the future, there are some great non-3D printing stocks out there that I would like to share on occasion.

At my sister site (MicrocapResearch.com), I focus on small and microcap stocks with strong, near term positive catalysts that drive share prices significantly higher over a period of days-weeks.

During 2015, the average pick at MicrocapResearch gained just over 100% in the days-weeks following articles I wrote…all featuring companies with near term catalysts.

My March pick was Oasmia Pharmaceutical (OASM). See article: Oasmia Pharmaceutical (OASM): Grossly Undervalued + Multiple Near Term Catalysts = Strong BUY).

OASM shares closed at $2.96 on the day of my article (March 7th) and closed yesterday at $4.70, for a gain of 58.8 % in just under a month.


Here’s what’s next: American Brewing Company (ABRW) at .40/share

  • American Brewing Company1.79+0.00 +0.00%
  • AUDUSD=X0.7628
  • USDJPY=X110.6580

This tiny organic, healthy beverage company ($6 million market cap) has attracted one of the world’s top corporate executives in the food and beverage industry as the new CEO.  I spoke with him about what attracted him to such a tiny company and his response speaks volumes about the company’s products and new focus.

ABRW has a clean balance sheet and turned cash flow positive in their most recently reported quarter. It’s a great high growth story in a booming healthy beverage market with a great product that has attracted an industry leader (who could go anywhere) to take over as the new CEO.  I think ABRW could be one of the best performing stocks of 2016 based on forward growth.

So if you missed out on the 58% gain with OASM, check out my new pick, American Brewing Company (ABRW).

Read:  American Brewing Company (ABRW) Revamps for High Growth in Booming Functional Beverage Market

 


Best wishes for profitable trading!

Graphene 3D Lab Inc. gary siig

 

3D printing stock Graphene 3D LabNew York-based Graphene 3D Lab, (TSXV: GGG and OTCQB: GPHBF), has released a shareholder update, reviewing the significant events of 2015 and the busy year ahead in 2016. Somewhat hidden away in the company’s investor presentation (page 10) is guidance for sales to grow to +$5 million this year.

 

 

Shares issues & outstanding: 49.4 million

 


 

The shareholder update is below.


 

Graphene 3D Lab fuses basic materials research and product development in graphene and other innovative materials with a commitment to the technologies surrounding advanced composites. With the acquisition of Graphene Labs, in an all share arrangement, Graphene 3D Lab has two main lines of business:

1. The production of research grade graphene and other nanomaterials for corporate, university and government research labs.
2. Rapid commercialization of 3D Printing technologies including graphene infused polymer filaments and other functional filaments

Industrial Materials Division

We are delighted to announce a third line of business, the Industrial Materials Division, to be devoted to development of high volume graphene-infused polymers for the automotive, robotics, drone, aerospace and military industries.

Graphene 3D LabAs a critical step in this direction, we have finalized installation and testing of a state of the art twin-screw extruder manufactured by Thermo Fisher. This specialized equipment allows Graphene 3D to create advanced composite materials with exceptional accuracy in shorter working times. The extruder will help to incorporate graphene into materials that well suited for industrial production of new or existing products that are lighter, stronger, and more flexible than their current commercial counterparts. The company is now able to respond faster to the increased demand we are seeing from manufacturers who wish to partner with us.

ll three of these business lines are closely tied to each of the others and we are developing the capacity to innovate and commercialize products by applying our company’s rapidly expanding knowledge base. The past year has been spent developing new product lines, expanding our production capacity and integrating Graphene Labs into the 3D Lab business. At each stage of our development as an innovative materials company, we are securing Intellectual Property which we believe will be critical to the future of materials science and 3D printing.

Graphene Laboratories, Inc. Acquisition

The acquisition of Graphene Laboratories has given Graphene 3D Lab and its products exposure to thousands of the leading researchers in the graphene and nanomaterials field. We are confident this will increase sales and put our innovative products in the hands of leading edge scientists and technologists.

Acquiring Graphene Labs has brought us approximately one million dollars per year in revenue from sales of graphene and other nanomaterials. It has also brought us exposure to the over 10,000 clients Graphene Labs has developed since 2009. These include nearly every Fortune 500 tech company and major research university. Some notable clients are NASA, HP, Ford Motor Co., GE, Apple, Xerox, Samsung, Harvard University, IBM, MIT, Yale, and Stanford University. Being in touch with some of the world’s leading materials scientists and having Graphene Lab’s track record of success makes product introduction much more straightforward and gives us insight into where the materials industry is heading.

Through Graphene Labs’ website, Graphene Supermarket (www.graphene-supermarket.com), we offer a wide array of Graphene related products in the form of solutions, powders, and films—all of which yield impressive profit margins. Sales from the Supermarket are usually to researchers at the beginning stages of projects. As the project progresses larger quantities of our products are required and through our well established relationship, our company is in the perfect position to fulfill this order.

Production of Materials for 3D Printing

In 2015, we invested heavily in production equipment establishing our fully operational production line. Our first filament product, a 3D printable graphene conductor, is now established in the market. Our recent release of new magnetic and nylon filaments demonstrates our capacity to manufacture many specialized filament products. We expect to put out several more filaments with innovative properties in the upcoming months as we continue to increase our customer base. Our upgraded extrusion lines and increased production capacity will improve the profit margins on 3D printing products. In house production gives 3D Lab significant advantages in the specialty filament market. We can produce on demand, control quality and, where warranted, accept custom orders. Maintaining our own production capacity allows us to make proprietary filaments without exposing our IP or trade secrets.

Industrial Scale Graphene Production

As a materials company, Graphene 3D Lab is committed to manufacturing products with significant added value. To achieve high volume production of composites, it is essential to have a solid supply of high quality graphene material. In the last two years the company has developed a unique approach to produce graphene nanoplatelets based on separating the graphene platelets from natural graphite feedstock. We anticipate an increased demand for our graphene composite materials for 3D printing and other applications. To satisfy the demand we need to scale up the production of graphene nanoplatelets. Our graphene production method could be fully automated and run continuously. Once completed, our production facility is anticipated to be producing tens of kilograms of graphene per day. With this technology, we fully control the supply chain: from basic materials to final graphene enabled products.

We thank you for your continued interest and support.

On behalf of the management,

Elena Polyakova
co-CEO


Perhaps most importantly, Graphene 3D Lab is also giving guidance to “Grow company revenue to +$5 million” by the end of 2016″ 


see full Q1,2016 investor presentation.


 

slide 10:Graphene 3D Lab 2016 revenue

 


With 49.4 million shares issued and outstanding, the market cap of Graphene 3D Lab is $16 million USD.

Given the dramatic sales growth expected this year, I am extremely bullish on the stock and believe it is the best stock in the 3D printing space to buy now.


Graphene 3D Lab Inc. gary siig

 

 


Disclosure: I am long shares of Graphene 3D Lab. I was not paid by any company or person for this article.

 

BioSig Technologies Inc. logo

 

 

 


 

BioSig Technologies, Inc. (web site) is a medical device company with proprietary, patent-pending technology which addresses a well-documented, yet unsolved problem in the rapidly growing $3 billion electrophysiology (EP) marketplace. The company has a unique platform to minimize noise and artifacts from cardiac recordings during electrophysiology studies and ablation. Its product under development includes PURE (Precise Uninterrupted Real-time evaluation of Electrograms) EP system, a surface electrocardiogram and intracardiac multichannel recording and analysis system that acquires, processes, and displays electrocardiogram and electrograms required during electrophysiology studies and ablation procedures. The company is also developing a library of software tools that are designed to be configured to fit the needs of electrophysiologists in various settings and/or for arrhythmia treatments.

BioSig Technologies was founded in 2009 and is headquartered in Minneapolis, Minnesota.

Share Structure

Shares outstanding: 17 million
Recent price: $1.29
Market cap: $ 21.9 million
Insider ownership: 50%
Float: 6 million


With a novel product nearing commercialization which addresses a need in the global cardiology market, BioSig Technologies became public by filing an S-1 registration statement for an IPO, and began trading in November of 2014. Insiders have been buying shares regularly, (see recent transactions), and the process of uplisting to NASDAQ has begun. Uplisting to NASDAQ is projected to be completed in “early 2016.


The Electrophysiology Market

Cardiac arrhythmias (abnormal heart rhythms) are a common problem. It’s estimated that between 3 and 6 million patients in the U.S. alone have atrial fibrillation, the most frequently seen cardiac arrhythmia. If left untreated, atrial fibrillation can cause chronic fatigue, heart failure, or even a stroke. More than 750,000 hospitalizations occur each year because of atrial fibrillation and the condition contributes to an estimated 130,000 deaths annually. Unfortunately, the death rate from this abnormal heart rhythm as the primary or a contributing cause of death has been rising for more than two decades according to the CDC. Atrial fibrillation costs the United States about $6 billion each year, and the medical costs for people who have the rhythm disturbance are about $8,705/year. Other, more serious cardiac arrhythmias include ventricular tachycardia and ventricular fibrillation, where the lower heart chambers just quiver and the heart doesn’t pump any blood, causing cardiac arrest and sudden death.

An electrophysiology study (or EP study) is a diagnostic procedure performed to locate and map out where an arrhythmia such as atrial fibrillation is coming from within the heart’s conduction system. Cardiologists who specialize in heart rhythm abnormalities are called electrophysiologists, and they use EP studies to determine if a patient needs medicine, a pacemaker, cardiac ablation surgery, or an implanted cardioverter defibrillator.

The addressable market also includes cardiac ablation, an invasive procedure performed to correct abnormal heart rhythms by terminating a faulty electrical pathway(s) from microscopic sections of the heart.  Cardiac ablation is used when pharmaceutical options to treat rhythm problems have failed and has a 90% success rate of curing cardiac rhythm abnormalities according to The American Heart Association.biosig technologies - EP lab

Still in its infancy, the EP device market is seeing significant growth as more physicians become experienced in EP study and cardiac ablation techniques, increasing numbers of hospitals purchase supportive equipment, and patient outcomes improve.

The global EP market is estimated to grow at a significant CAGR of 10.3% from 2014 to 2019, making it one of the fastest growing medical device segments. Once found in only large metropolitan areas, EP labs are becoming commonplace in small and mid-sized cities throughout the U.S. as America’s baby boomers continue to age. While about half of the EP labs in the world are currently located in the U.S., hospitals in Canada, South America, Europe and Asia are rapidly adopting the technology.

The product BioSig Technologies is on the verge of commercializing addresses both the EP study (electrical mapping and diagnostic) branch of the market, and the cardiac ablation (definitive treatment) branch of the market.


The Problem of Noise and Artifact in EP Studies and Cardiac Ablations

Prior to my investing career, I was directly involved in EP studies and cardiac ablations as the manager of a coronary care unit and later as director of intensive care in a large hospital system in Florida. I can speak with firsthand knowledge that a persistent challenge in EP studies and cardiac ablation procedures is the presence of what is called “noise” or “artifact” encountered while recording the electrical activity of the heart. This signal noise can be caused by electrical interference coming from other equipment in the room, the patient’s own minute, involuntary muscle contractions, offset signals produced by the electrodes themselves, and artifact signals produced by the interaction of body fluids and the electrode gel.

To date there is no complete solution for eliminating noise and artifact, and signal processing in the EP lab remains a challenge. This is where BioSig Technologies comes in, with what may be the perfect solution for dealing with noise and artifact in the EP lab.


The Solution from BioSig Technologies

With 7.5 years of development, BioSig has a system unlike anything else on the market to correct the problem of noise and artifact in the EP lab. The PURE ( Precise, Uninterrupted, Real-time BioSig technologies PURE EP systemevaluations of Electrograms) EP System was developed using proprietary technology that (among other advances) converts the analog to digital signal at 2-3X the sampling rate of the most precise and advanced EP equipment now available. During proof of concept testing, the electrocardiogram and intracardiac signals produced by the PURE EP System were shown to have less baseline wander, noise and artifacts compared to signals displayed on other recording systems.

BioSig conducted a series of preclinical studies in 2015 at the Mayo Clinic in Rochester, Minnesota and engineering studies at UCLA. The main objective of the studies was to demonstrate the superior clinical potential of PURE EP which is not currently obtainable with present recording systems. BioSig will publish the results of these studies at industry conferences and peer reviewed journals early this year.

The PURE EP System gives electrophysiologists information and data that is unobtainable from any other EP device today, including:

  • proprietary hardware and dramatically improved signal processing capabilities
  • ability to open multiple review windows
  • assisting in clinical decision making in real-time
  • maximizing ablation efficacy & minimizing need for repeat procedures
  • shorter and & simplified EP procedures

Today’s health care system is extremely focused on improving patient outcomes, minimizing complications and repeat procedures, (which in turn decreases length of stay).  Management believes that the PURE EP System will contribute to an increase in the number of successful ablation procedures performed in each electrophysiology lab thereby substantially raising the value of the platform among EP labs.

The length of time to perform an ablation can vary widely, but is typically 3-6 hours.  In addition to the patient’s particular rhythm disturbance, ablation procedure time is dependent upon how quickly and thoroughly the electrophysiologist can reproduce the rhythm disturbance in the lab, and then to “ablate”, or destroy the offending electrical pathway that is causing the rhythm disturbance. To eliminate the atrial fibrillation for example, a typical patient requires between 150 and 250 different micro areas to be cauterized!  The PURE EP System shortens the “reset” time between each micro-cauterization by more rapidly acquiring a clean rhythm signal with zero noise or artifact. With a reduction in ablation procedure times, EP lab efficiency and turnover are improved, thereby driving demand from hospitals and electrophysiologists.

In the near term, BioSig plans to file with the FDA for 510(k) clearance, (new medical device premarket notification), which management believes will be granted in 2016. In a December shareholder letter  Kenneth Londoner, (Chairman), and Greg Cash (President and CEO) stated:

“Management is actively preparing for the commercial launch of PURE EP…and will do everything possible to drive timelines as aggressively as possible without compromising quality and regulatory rigor.”

Full scale commercialization is projected for early 2017.


Proven Management Team Collaborating With World–Renowned Testing Centers

BioSig has an experienced, proven management team and a scientific advisory board that’s second to none in the areas of cardiology and electrophysiology.

BioSig Technologies is collaborating with several of the nation’s most prestigious cardiac arrhythmia centers including:

  • Texas Cardiac Arrhythmia Institute
  • UCLA Cardiac Arrhythmia Center
  • U.H. Case Medical Center in Cleveland
  • William Beaumont Hospital in Michigan
  • Mount Sinai Medical Center in NY
  • Mayo Clinic in Minnesota

Conclusion

BioSig Technologies has multiple upcoming catalysts that will increase awareness of the company in the medical and investor communities. These catalysts include:

  • Q2 2016 NASDAQ Uplisting
  • Mayo Clinic Peer Review Cardiology Journal Q2 2016
  • Engineering Journal Feb/March 2016
  • Heart Rhythm Society May 2016
  • Sell Side Research/Conferences
  • FDA 510(k) Submission Q4 2016

The company has a proprietary, patent pending device that addresses an unmet need in the high growth electrophysiology market.

With the stock market off to such a rough start in 2016, many individual investors along with institutions will be looking for defensive positions in health care and medical device stocks.
A near-term uplisting to NASDAQ should drive increased investor awareness and institutional participation.

As a result we believe taking a position in BSGM shares soon is the “Buy Low” part of the buy low/sell high equation.


See also: February 2016 Investor Presentation


 

Pulmatrix sig.

 

 


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Disclosure:  receipt of of $20,000 from Star Media LLC.

 

3D Printing Will Rock the World is now available for purchase here on Amazon  just in time for Santa, and the Kindle version will be available soon.

The book is an excellent read for any investor in the space and I highly recommend it.


I’ve had the pleasure of hearing the author, John Hornick, speak at multiple 3D printing conferences, and his knowledge of the industry and trends is encyclopedic. John Hornick has been widely published and is the only IP attorney selected by the National Academies to participate in the US Comptroller General Forum on Additive Manufacturing (which was the basis of a report to the US Congress), and is a juror for the International Additive Manufacturing Award.

3D printing will rock the world

 

 

3D Printing Will Rock the World is a book about technological innovation and business, and how 3D printers will change the world in many ways.  It will interest:

  • the business reader who wants to know how 3D printing may affect manufacturing, product design, where things are made, the jobs market, how companies do business, and how it may be misused
  • the general reader and average consumer who is curious about 3D printing, especially parents, whose kids will help drive the adoption of this technology
  • Makers, who already believe that 3D printers will help change the world
  • potential investors, who want to learn about this technology and its potential

 

 

Industry leaders have this to say about 3D Printing Will Rock the World:

“A lucid and comprehensive account of the burgeoning field of 3D printing—the technologies, and their implications. Hornick makes a compelling case for why this technology can’t be ignored. A must-read for anyone who wants to see beyond the horizon.”—Hod Lipson, coauthor, Fabricated: The New World of 3D Printing

“Hornick explores an exciting possible future where 3D printing has changed the way we design, make, and interact with the world. This book is a great compendium of 3D printing as it is today and what it may become tomorrow.”—Michael Weinberg, former vice president, Public Knowledge/General Counsel, Shapeways

“Hornick has written a terrific and much needed guide and explanation on the uses and possibilities of 3D Printing.”—Alan Meckler, Meckler Media, producer of Inside 3D Printing Conferences and Trade Shows

“John has assembled a comprehensive assessment of this rapidly growing technology and offers rare insight into how 3D printing is redefining what can be designed and manufactured, spawning new products and markets that we have yet to imagine.”—Ed Morris, vice president and director, America Makes—The National Additive Manufacturing Innovation Institute


Full of real-world examples based on extensive research, illustrated, and with over 600 endnotes, 3D Printing Will Rock the World explains where this technology stands today and where it is going, and how everything will change when you can make anything.

Simply put, 3D Printing Will Rock the World will make you a better informed investor in the 3D printing space while guiding you through the present realities and future potential of the technology. 


 

Graphene 3D Lab Inc. gary siig

 

3D printing stock Graphene 3D LabIn news this morning, Graphene 3D Lab (TSXV: GGG, OTCQB: GPHBF) announced that the company has entered into a R&D agreement with a Fortune 500 Manufacturer for multi-phased deliverables over the course of the next 12 months.

Today’s press release notes that:

“For competitive reasons and pursuant to confidentially clauses contained with the Agreement, neither specific research objectives nor the identity of the Agreement partner can be publicly disclosed. Upon successful completion of the research phase, and subject to approval by the U.S. Food & Drug Administration, the developed materials will become a part of a consumer retail product.”

CEO of Graphene 3D Lab, Daneol Styeolyarov, explained:

“Our lab team will assist our partner to understand, handle and integrate graphene into future manufacturing. We are not just replacing other additives with graphene, we are working jointly with our partners to elevate the potential of their products. Product expertise from our partners, graphene expertise from our lab – the results is new products that can do more than before.”

Co-CEO Elana Ployakova added that the company expects graphene to become a common ingredient in large-scale manufacturing, and the agreement announced today will likely be a common first-step for traditional manufactures.

graphene 3D lab flex foamGraphene 3D Lab also announced the recent availability of Graphene Flex Foam, which has potential to be an excellent substrate candidate in the manufacture of electrodes of lithium-ion batteries as well as wearable and flexible electronics.

More information on Graphene 3D Lab:


Graphene 3D Lab Inc. gary siig

 

 


 

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Disclosure: I am long shares of Graphene 3D Lab. See additional disclosure in “The Best 3D Printing Stock to Buy Now is Graphene 3D Lab (GGG.V)

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.