Sigma Labs Inc (SASI)

[Jackle]

Another, slightly less talked about option is strategic investment from multiple parties interested in establishing Sigma as a standard in the supply chain for in-process quality inspection. I have seen this a few times recently, most notably with GE's recent investment into Carbon, along with other investors BMW, Nikon and JSR.

This type of strategic funding makes sense in many ways. GE and Honeywell protect their interest in Sigmas technology which they helped to develop, as well as keeping on top of the direction of new developments.

It follows Sigma's focus on long term strategic partners

It retains the benefit of 'independence', allowing the supply chain to access the in-process technology across machines, to the benefit of the major stakeholders (ie GE/Honeywell). Godfrey has mentioned before

Honeywell is moving this technology into being a qualified process using either in-house capability or with a vendor that has stringent quality control processes audited and approved by Honeywell.

. On the same note, it was interesting to see Woodward, one of GE Aviation's biggest supply chain partners take up PrintRite3D. It is a logical procession.

Almost from day one, Sigma has been positioned to supply in-process monitoring for the major industry groups. It's inclusion in America Makes project, it's inclusion in EWI's AMC project, it's inclusion to help set standards for USAF AM project, the highly likely US Naval Quality Makes project. These all represent industry GROUPS, not just individual players. Stakes in Sigma from major industry players makes more sense than one big player buying it out and taking it off the supermarket shelf.

It is in the interest of the industry, and the major players to have a standard in-process qualification process so they can get on and design and develop new products with the technology. AM doesn't start and end with quality inspection. It is the tool that allows the AM revolution to flourish. Therefore it is in the interest of the big players to have standard quality across the supply chain, not just in-house.

There is a long list of potential partners here, headed obviously by GE and Honeywell, but any one of our customer list would fit the bill, even a Venture Capital fund looking for a niche investment that will grow with the AM industry.

This kind of strategic investment would set a value for the company (well, well above present market cap), and ensure continued interest in the companies solutions over the next generation. This, as the AM market explodes, would set the company up for an incredibly lucrative future based on high profit margin software business with a high recurring revenue module allowing a expanding business model underpinned by locked in, long term revenues. It would facilitate growth in the market it serves, leading to a cycle of growth.