Will Sigma Labs Finally Deliver on Their Promises?

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In past articles, we discussed an over-the-counter (OTC) 3D Printing company called Sigma Labs (OTCMKTS:SGLB), a company that while popular among 3D Printing speculators, has shown many red flags over time. In particular, the company announced marketing and partnership agreements with entities of which no information could be found, sold 22% of the company for just $1.2 million, and engaged in marketing services with unknown entities.

Since our last article on Sigma Labs (OTCMKTS:SGLB) which was over a year ago, not much seems to have happened in the way of commercializing their technology. According to last week’s 10Q, consulting revenues have fallen -51% for the first 6 months of 2014 compared to the same period in the year prior. The Company is also planning to purchase a $724,000 3D Printer from EOS which the company says will allow them to “now enter a new manufacturing phase”. Rather than pursue yet another business focus of becoming a 3D printing bureau, it’s likely that investors would much rather see progress made towards commercializing PrintRite 3D.

While over the past year quite a few press releases were issued concerning memorandums of understandingtechnology cooperation agreements, joint technology agreements, and another private placement to raise funding and further dilute shareholders, there still is no product that has reached commercialization. Investors should be used to dilution by now considering that the number of outstanding shares for Sigma Labs has risen from 432 million to 602 million, a 40% increase in shares outstanding just in the past year alone.

The most recent statement regarding progress made towards commercialization was made in last week’s 10-Q filing:

We expect that our continued development in fiscal 2014 of our IPQA® technology will enable us to begin commercializing this technology in the remainder of 2014 for the AM metal market.

Investors should hold Sigma Labs accountable for making this claim. Over the past two years, the Company has repeatedly made statements in SEC filings regarding progress made towards commercialization that were not met:

May 2012

We believe that our continued development in fiscal 2011 of our IPQA® and munitions technologies will enable us to commercialize these technologies in the remainder of 2012. We will continue to refine those and our other technologies, including our dental implant biomedical prosthetics technology, for commercialization during fiscal 2012.

August 2012

We believe that our continued development in fiscal 2012 of our manufacturing quality control technologies will enable us to reach commercialization of this technology in the remainder of 2012. We will continue to refine IPQA® for the emerging Additive Manufacturing market and our other technologies, including our dental implant biomedical prosthetics technology, for commercialization during fiscal 2012.

November 2012

We believe that our continued development in fiscal 2012 of our manufacturing quality control technologies will enable us to reach commercialization of this technology during the first half of 2013. We will continue to refine IPQA® for the emerging Additive Manufacturing market and our other technologies, including our dental implant biomedical prosthetics technology, for commercialization during fiscal 2013.

May 2013

We believe that our continued development in fiscal 2013 of our manufacturing quality control technologies will enable us to reach commercialization of this technology during the remainder of 2013. We will continue to refine IPQA® for the emerging Additive Manufacturing market and our other technologies, including our dental implant biomedical prosthetics technology, for commercialization during fiscal 2013.

August 2013
We expect that that our continued development of our “In Process Quality Assurance” or “IPQA technology will enable us to commercialize this technology during fiscal 2014. We will continue to refine that and our other technologies, including our dental implant biomedical prosthetics technology.

Have investors not questioned why these statements regarding commercialization have never been met? The CEO received a bonus during the first quarter of 2014 in the amount of $175,000. Maybe the next bonus should be made when commercialization targets are actually met. If no product revenues are realized in 2014, Sigma Labs (OTCMKTS:SGLB) investors should pose some hard questions to management as to why they consistently have not delivered on what they have promised.

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