CEO Victor F. Keen Update to Shareholders
I have been serving as the CEO of your Company for almost two years. During that period we have made progress in our CSpace technology, though at a much slower pace than I had anticipated. Clearly more important to you as shareholders, the share value during that period fell from $.02 to less than $.001, with a corresponding precipitous decline in our market capitalization.
While your management team has been doing all in its power to advance our CSpace technology and thereby enhance the value of the Company and its stock, obviously we have not succeeded to date. What has become increasing clear is that the funding necessary to move our valuable but embryonic technology forward is significantly greater than we originally anticipated. At the same time, our ability to raise funds, particularly through federal grants, has fallen far short of our expectations, notwithstanding the efforts of Doug Freitag, the Company’s VP of Technology and Business Development, assisted by Jim Stein, of the Company’s Joint Development Agreement partner, Schott Defense, in pursuing a number of compelling, but to date unsuccessful, federal funding opportunities.
Our inability to access federal funding has required the Company to continue to utilize convertible securities for funding. Because of the low level of our share price, such funding has resulted in significant shareholder dilution.
It has become clear that our current course of attempting to fund our research and other cash requirements through Government grants would require, at best, a longer term than originally anticipated. Raising the needed funding to move our CSpace technology to the next level on our current course will be a challenge to say the least.
That said, while I am not a technical person by background, I have had many years, first as an investor, then as a director and now as CEO, to gain an understanding of the 3D display industry and the uniqueness of our patent-protected volumetric 3D technology and its commercial possibilities. I am not prepared to believe that our Company is worth well under $1 million per our recent stock price, given that our market capitalization has been as high as $74 million and that more than $20 million has been invested by the Company, over half of which has been devoted to our R&D effort. Much of the balance was in supporting our status as a company whose stock is publicly traded, a separate Company asset to be protected.
Taking all the above circumstances into account, in July I presented to the Board the following Plan, which was accepted by the Board and which will be implemented over the course of the coming weeks:
1. I would provide the Company with $200,000 in new equity funding assuming certain conditions involving participation by others in the rehabilitation of the Company’s finances, described in # 2 below, could be met. (It has been the discussions and negotiations relating to these conditions that have resulted in the absence of information to you from the Company for too long a time, for which I apologize.) I will be acquiring the stock at no discount from the current trading price.* (As previously reported, neither I nor the any of the board members receive, or have in the past received, any cash compensation from the Company.)
*For technical reasons, I may be issued convertible preferred shares in exchange for my $200,000 investment rather than common shares, though convertibility would be subject to there being sufficient authorized common shares. In any event, I have entered into an agreement with the Board of Directors that I will not sell any Company shares for one year without the unanimous consent of the Board.
2. All debt held by Board members would be converted to equity. Additional amounts of accounts payable would be converted in whole or in part to equity to the greatest extent achievable. Amounts not converted would be paid or converted into long term notes.
I am pleased to announce that the conditions to my funding of my commitment to invest an additional $200,000 in the Company have largely been satisfied.
Our discussions and negotiations to date with those holding claims against the Company should result in the reduction of the balance sheet current liabilities by more than seventy-five percent. Of the remaining liabilities, around $76,000, represent obligations of the Company under convertible security instruments. The terms of these securities are such that, while there is a stated principal amount, it is not contemplated that that amount would be paid in cash. Rather, the obligations would be satisfied by the issuance of shares to the holders at a discount to the then share market price when exercised, i.e., in a manner which would be dilutive to existing shareholders.
The Company is in discussions with Golden State Equity Investors (who holds more than 80% of the remaining $76,000 in convertible securities), to modify the normal means by which we access funds. This would provide the Company with greater flexibility and control over the issuance of shares and not further limit our access to operating and growth capital. Golden State has always been supportive of our needs and we anticipate that this proposed modification will be to our mutual benefit.
With the above conditions having been largely satisfied and given the reduced reliance on federal funding, the Board is committed to exploring possible acquisitions, partnerships, or other strategic transactions involving direct or indirect funding for the Company. We have formed a committee comprised of Mark Willner, Chairman of the Company’s Business Advisory Board, Doug Freitag and me to lead in this effort. As the Company has previously reported, our technology has attracted significant interest and support from large and small companies and institutions, including Raytheon, Boeing, Lockheed, Schott Defense (our Joint Development Agreement partner), the Institute for Human Machine Cognition, major health care institutions and others. Currently we are in conversations with several companies involving a possible affiliation or other strategic transaction.
We continue to believe that the business and intellectual property held by the Company could represent a significant opportunity to a number of parties in the 3D display space seeking to develop true, 3D volumetric display technology.
Finally, I expect that many of you will have questions concerning this new direction for the Company. Accordingly, the plans described in this letter will be presented and discussed in a to-be-scheduled shareholder call-in. I look forward to talking with you at that time.
Victor F. Keen
Real, Static Volumetric Displays: No glasses needed.
For Further Company INFO, including patents, Management Team, Engineering Team, Schott Defense JDA, and the University of Oklahoma (SRA) R&D partnership, please visit:
United States Congressional
(Both House of Representatives and Senate) Staff pictured Below with 3DIcon team: 9-2-2014, for a Lab Scale demonstraition
* From the left, Joel Starr (Military Legislative Assistant for Senator James Inhofe), Ken Evans (financial consultant, 3DIcon), William Barnes (Defense LA for Rep. Markwayne Mullin), Michelle Altman (Deputy CoS/LD for Rep. James Lankford), Jason Self (Military and Veteran LA for Rep. Markwayne Mullin), James Mazol (Legislative Director for Rep. James Bridenstine), Katharine Bruce (Defense LA for Senator James Inhofe), COL Bob McAleer (Army Senate Legislative Liaison), Hakki Refai (CTO, 3DIcon), Doug Freitag (Federal Business Development, 3DIcon), John O’Connor (Chairman of the Board, 3DIcon), Jason Grassie (Veteran Affairs LA for Rep. Frank Lucas)
3DIcon Submits Proposal to National Institutes of Health for an fMRI Interface
Figure 1. 3D printing of an infant’s heart. (Wonderful Engineering, Feb, 2014)
Figure 1. Volumetric 3D Image of a Storm (Popular Mechanics, May 2013)
3DIcon is a developer of groundbreaking 3D projection display technologies that are being designed to produce full color, 360-degree volumetric high-resolution images. The company’s mission is to surpass current 3D technologies by creating true-to-life 3D images that occupy a 3D space and appear fully formed as viewed from any angle without any special viewing aids. The commercial applications for 3D imaging technologies are projected to approach a market size of well over $7 billion by 2018. General applications include Healthcare and Medical, Industrial, Media and Entertainment, Defense and Security and Architectural and Engineering.
The company recently achieved a historic breakthrough in the development of 3D display technologies with the creation of a working laboratory prototype of its proprietary 3D display system CSpace®. CSpace® renders high-resolution, 360-degree, three-dimensional images without any viewing aids. 3DIcon’s CSpace® technology is expected to be scalable to large volumes, high resolutions, and will eventually support full color images.
This technological breakthrough represented by CSpace® has been recognized by the U.S. Patent and Trademark office, which issued 3DIcon patents in December of 2010 and September 2012. Patents #7,858,913 and 8,247,755 were issued to 3DIcon for “Light surface display for rendering a three-dimensional image” and “3D Volumetric Display.” These patents strategically position the company to lead the emergence and commercialization of volumetric 3D display technologies.
In 2011 3DIcon launched Pixel Precision®, a software product that targets the R&D market for developers using Texas Instruments’ DLP line of products.
Schott Defense Renderings of CSpace below:
Ground Battlespace rendering below:
Battlespace rendering ocean (sub is transparent and can be seen through, along with underwater mountain features) Below:
Images can be found on: http://blog.us.schott.com/
Research and Development Partnership with University of Oklahoma
3DIcon has a Sponsored Research Agreement (SRA) with the University of Oklahoma (OU), whereby 3DIcon's technologies are being developed by leading researchers and scientists in multiple disciplines on two campuses. 3DIcon has the exclusive worldwide rights to technologies developed under the auspices of the SRA. On December 1, 2010, 3DIcon and OU entered into a material definitive agreement whereby OU converted all sums due to it by the company into stock. This agreement amounted to OU owning approximately 8% (or 59,000,000 shares) of 3DIcon.
The CSpace Volumetric Imaging System (static volume display technology) is the company's flagship technology that is being rapidly developed. On December 21, 2010, 3DIcon announced OU was awarded patent 7,858,913 for CSpace. CSpace uses a clear volumetric image space within which invisible nano-size up-conversion material is dispersed. A volumetric 3D image is rendered when invisible laser beams are precisely directed into the image space, exciting the nano-materials to emit visible light and thus display a full color, volumetric image. CSpace does not require viewing aids or glasses, does not cause viewer fatigue during prolonged use, and is capable of producing translucent images for viewing the inside of images, such as human organ, cargo containers, baggage, ocean or terrain features, or troop carriers, all of which are beyond the capabilities of other current display methodologies. CSpace is pure, static 3D display that doesn't require mechanical rotational movement and has the potential to generate 3D images with a resolution up to 800 million voxels -- eight times that achieved by a typical mechanical swept-volume display.
CSpace has a wide market for potential applications in such fields as medical imaging (CT, MRI, dental), baggage and cargo scanning, military performance-mission planning, tactical awareness, decision support, and post engagement assessment-engineering and geospatial exploration, education and training applications, entertainment applications (video games), air traffic control systems, space transportation systems, and earth science research. For example, CSpace provides volume rendering of the surface and the interior of any human organ, which could increase the effectiveness of real-time imaging systems such as fMRI that are central to future medical care and research (prototype image of human rib cage). Other types of displays, such as holographic displays, can render objects but are unable to show an interior view; those displays would not be effective in applications that require rendering of object interiors such as medical images, cargo scanning for homeland security, and others.
Learn more about CSpace at: http://www.3dicon.net/patents/cspace
3D Icon launched its first product, Pixel Precision®, which targets the research and development market for Texas Instruments' DLP® technology. The provisional patent application covering Pixel Precision® was filed on January 29, 2007. Pixel Precision® emerged as a by-product of the research conducted on its core 3D technologies. Sales channels for the product include software distributors as well as direct sales by 3DIcon. 3DIcon's new product is expected to address the needs of a market that includes projection and display manufacturers that design, manufacture, and market products based on DLP® technology. In addition to digital TV, DLP® technology is also being used in several emerging applications like 3D metrology, confocal microscopy, holographic data storage, scanning, and other advanced imaging and visualization applications.
Learn more about Pixel Precision at: http://www.pixelprecision.net/
Posted On: July 29, 2014
By: Jim Stein
History teaches that to observe, and then to understand, is the first step to victory. At one point a wooden horse full of Soldiers was all you needed to sack a city. Too bad the Trojans didn’t have today’s imaging technology — the Greeks never would have made it past the gate. But even today’s advanced sensor technologies, which produce all manner of 3D sensor data streams, challenge our ability to interpret and understand the available raw 3D data due to the limitations of 2D displays.
From radar, sonar, and x-rays to lasers and multispectral technologies, new imaging systems are offering more options for warfighters to gain a strategic advantage in situational awareness. And the next big advance could provide the most comprehensive view yet. 3D volumetric displays could give warfighters a glasses-free, full color, high-resolution three-dimensional perspective of the battlespace — on, above, and even below it, depending on the environment.
These 3D volumetric systems aren’t yet in the hands of warfighters because the several prototypes are not yet easily scalable. But a new kind of laser glass could change that soon, improving situational awareness across the full gamut of battlefield environments. And like many defense technologies, 3D volumetric displays will eventually have applications far beyond the battlefield that could make the world safer, more aware, and better informed.
How 3D volumetric displays work
3D volumetric displays will be key to the ongoing development and evolution of display technology. The latest research and development out of SCHOTT Defense’s joint development partner, 3DIcon, offers a glimpse of that future. Its volumetric displays create a 3D image by projecting precisely coordinated laser beams into a medium containing rare earth materials, exciting those materials to display a monochromatic image, though full-color images are planned for the future.
3DIcon’s CSpace technology is developing a unique clear host material doped with rare-earth ions to create a transparent 3D projection medium capable of fluorescence. This achievement means the CSpace 3D volumetric displays don’t require special eyeglasses or viewing aids, nor do they cause fatigue during prolonged use. CSpace allows the full display, manipulation, and exploitation of internal volume imaging as well, whereas other laser display systems, such as holographic displays, can only render surface volume, and are unable to show an interior view.
Glass is the enabling and critical material acting as the host medium for the laser-excited rare earth materials. A new kind of laser glass could improve the quality of the image and the efficiency of the laser, while also facilitating the rapid scaling of 3D volumetric display systems so they can be deployed to warfighters en masse. The glass’ laser properties, customizability to different compositions, and manufacturability all make it integral to the laser system used to project the 3D images.
Beyond defense: The broad impact of 3D volumetric displays
While this technology is moving beyond prototype development, it would most immediately benefit intelligence, surveillance, and reconnaissance (ISR) situational awareness. By finally being able to display 3D data such as radar and sonar plots in real 3D, one can instantly and intuitively understand the actual spatial relationships between objects, elements, and environments.
3D volumetric displays could also improve applications that involve parameters of space and distance and offer multiple points of view without requiring artificial depth cues like lighting, shading, and perspective. Here are five ways 3D volumetric displays could eventually transform the wider world outside defense:
1. Faster airport security checks and border crossings. By fully capturing the 3D capability of x-ray imagery, border and customs inspectors can more effectively scan and observe the interiors of vehicles, trucks, shipping containers, and packages. True 3D displays offer officials multiple perspectives to resolve ambiguity. TSA screeners would gain a clearer view of the objects in your suitcase, potentially reducing additional screenings of suspect luggage.
2. Safer air traffic control. Several recent near-crashes between airplanes have raised scrutiny over air traffic control systems. Current systems display the position of airplanes as icons on a flat 2D display. With 3D volumetric displays, however, operators would have a more comprehensive overview of the airspace and planes’ location in relation to one another and better navigate them to and from runways.
3. Better preparations for natural disasters and more. The federal government undertakes geospatial exploration in which it collects, maintains, and uses information linked to geographic locations to help in decision-making and to support national security, law enforcement, health care, environmental protection, and natural resources conservation, among other functions. 3D volumetric displays would offer more information for geospatial analysis that could improve road maintenance and natural disaster responses.
4. More accurate oil and gas exploration. Seismic data is critical in assessing a particular area for potential oil and gas extraction. However, seismic data suffers because 3D data is still underutilized by 2D displays. 3D volumetric displays, by offering a detailed 3D depiction of where deposits might lie, how large they are, and how accessible they might be, can make the expensive process of oil and gas exploration more efficient, accurate, and productive.
5. Greater visibility during medical operations. MRIs and CAT scans are incredibly powerful diagnostic tools rich in 3D data. 3D volumetric displays can provide volume rendering of the surface and the interior of any human organ, increasing the effectiveness of real-time imaging systems for doctors and surgeons who need better awareness of what’s happening inside the human body.
For now, these innovative 3D volumetric displays are still in the early development phase, but could be boosted by government funding. The U.S. government’s Small Business Innovation Research (SBIR) fund fuels just this kind of advancement, and SCHOTT Defense and 3DIcon are pursuing funding from the full spectrum of interested agencies, from the Defense Advanced Research Projects Agency to the National Institutes of Health.
While the current imperative is on improving the operational capabilities of the warfighter, the potential future applications are diverse and transformative, changing the way border patrol agents, air traffic controllers, seismologists, and doctors observe and understand the world around them.
Digital Light Innovations
Design Partner and Distributor
Digital Light Innovations is an Authorized Design Partner and Reseller for Texas Instruments' DLP® Discovery™ technology, the most widely adopted and reliable spatial light modulator (SLM) on the market today. Digital Light Innovations specializes in custom engineering, applications development, and sales of DLP® Discovery™ products. The DLP® Discovery™ platform is a highly versatile development tool that enables spatial light modulation for a variety of industries including lithography, spectroscopy, and adaptive optics. DLi is a global company that has serviced customers around the world in areas including Germany, Sweden, Japan, China, India, U.K., Brazil and Canada.
TDCP Security Details
| || || |
|Shares Outstanding || ||a/o Aug 14, 2015 |
|Float ||Not Available |
|Authorized Shares ||1,500,000,000 |
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|Shareholders of Record ||535 || |