Good afternoon and welcome to the Sigma Labs Earnings Conference Call for the First Quarter ended March 31, 2017. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A replay of the call will be available approximately 1 hour after the end of the call through June 15, 2017. I would now like to turn the conference over to Scott Gordon, President of Core IR the company’s Investor Relations Firm. Please go ahead sir.

Thank you, Gary and thank you everyone for joining today’s conference call to discuss Sigma Labs’ corporate developments and financial results for the first quarter ended March 31, 2017. With us today are Mark Cola, the company’s CEO and Murray Williams, the company’s CFO. At 4:15 p.m. Eastern Time today, Sigma Labs’ released financial results for the quarter ended March 31, 2017. If you have not received Sigma Labs’ earnings release, please visit the investor’s page at www.sigmalabsinc.com. During the course of this conference call, the company will be making forward-looking statements. The company cautions you that any statement that is not a statement of historical fact is a forward-looking statement. This includes any projections of earnings, revenues, cash or other statements relating to the company’s future financial results, any statements about plans, strategies or objectives of management for future operations, any statements concerning proposed new products, any statements regarding anticipated new relationships or agreements, any statements regarding expectations for the success of the company’s products in the U.S. and international markets, any statements regarding to future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the forgoing. These statements are based on expectations and assumptions as of the date of this conference call and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Some of these risks are described in the section of today’s press release titled cautionary note on forward-looking statements and in the public periodic reports the company files with the Securities and Exchange Commission. Investors or potential investors should read these risks. Sigma Labs assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so. I will now turn the call over to Mark Cola, CEO.

Thank you, Scott and good afternoon everyone. Welcome to our first quarter 2017 earnings call and corporate update and thank you for joining us. I will comment on our first quarter and then hand off to Murray Williams, our CFO, who will be discussing our financial results for the quarter ended March 31, 2017. Once we conclude, we will open the call for questions. We have accomplished a great deal in the first quarter and that positioned Sigma Labs as unique and highly valuable solutions provider in 3D advanced manufacturing space. With version 2.0 of our PrintRite3D INSPECT quality assurance software, a new OEM Developer’s Kit increased customer wins, stronger synergistic alliances and possible M&A activities, which set the stage for future strong growth potential. The Sigma Labs of today is stronger, better positioned company with tremendous promise. Most notably, we recently entered into a nonbinding LOI with Morf3D to commence negotiations on a mutually acceptable M&A agreement with respect to proposed merger of Morf by Sigma Labs. It is anticipated that this transaction, if consummated, would help us achieve our goal of becoming a fully integrated business able to charge for material selection, design and manufacturing and in-process quality assurance. It has furthered the goal that the combined entity would emerge as a fully integrated additive manufacturing company poised to serve the aerospace and defense industry, which is rapidly transitioning to 3D metal additive manufacturing and which could provide the kind of cost savings required to meet the $56 billion increase slated for that defense industry 2017 budget. The closing of the transaction is subject to definitive documentation and closing conditions some of which are beyond the company’s control. Before I discuss the developments we achieved in our first quarter 2017 in more depth, I would like to take…

Thank you, Mark. Very well said. Good testament to lots of good stuff going on here at Sigma. It took a while for Mark to relay that information. So, I will try to go through the numbers quickly to leave more time for questions at the end of the call. During the three months ended March 31, 2017, we recognized revenue of $150,000 as compared to $358,000 in revenue during the same period in 2016. The decrease in revenue was primarily due to the completion of the GEA America Makes Program in 2016, which provide three months of revenue in Q1 2016, but no revenue in Q1 2017 as well as the completion of the DARPA Phase 2 project in 2016, which also provided three months of revenue in 2016, but no revenue in Q1 2017. Our general and administrative expenses for the three months ended March 31, 2017 were $644,000 as compared to $395,000 for the same period in 2016. Our payroll expenses for the three months ended March 31, 2017 were $377,000 as compared to $216,000 for the same period in 2016. Our expenses relating to stock based compensation for the three months ended March 31, 2017 were $140,000 as compared to $78,000 for the same period in 2016. And finally our research and development expenses for the three months ended March 31, 2017 were $50,000 as compared to $39,000 for the same period in 2016. This resulted in an increase in our net loss for the three months ended March 31 over the prior year. Our net loss was $943,965 in Q1 2017 as compared to $470,667 for the same period in 2016. As noted in our financial statements, our revenue decreased and we experienced a larger increase in expenses, mostly and largely attributable to the cost of our February 2017 public offering that generated proceeds of $5.25 million for us. And that left us with a little over $4.6 million in cash as of March 31, 2017 with the working capital surplus of $4.1 million as compared with $398,000 in cash and a working capital surplus of $111,000 as of March 31, 2016. So I believe now it’s the perfect time to open the call to questions. Operator, please do so.

[Operator Instructions] The first question comes from Aaron Bond [ph] a private investor. Please go ahead.

Hello Mark.

Yes. Hi Aaron, how are you?

Doing fine. Thank you. I just wanted to congratulate you on the contract wins this quarter. I appreciate your hard work in that regard.

Thank you.

My question is are you guys still working with materialize and 3D film, I was wondering what the status was on those?

We are working with both still, yes and without divulging any other details.

Got it, okay. And I guess my next question is [Technical Difficulty] contracts with your premier customers Honeywell and GE and about how far would you estimate that?

I am sorry, ask me that again please, Aaron.

Yes. I was wondering are you still anticipating having the production run contracts with GE and Honeywell in the future?

We are, yes.

Okay. Do you have any estimate on how far that might be?

I do not.

Okay. And just another quick question on I guess with the FAA, they are supposed to be coming on with some more AM guidance, do you foresee any guidance as far as third-party certifications necessary for fully advanced metal volume?

Our understanding is the FAA is still on schedule to produce guidance for the industry, yes.

Okay, alright. Thanks Mark.

Yes. Thanks Aaron.

[Operator Instructions] The next question comes from Kevin Mayer [ph] a private investor. Please go ahead.

Hi, Mark. How is it going?

Hi Kevin, well, how are you?

Doing great, the show in Rapid was fantastic, it was nice to see you out there. You guys had a great showcase there.

Thank you. Nice to see you there.

The buzz around the booth was very exciting, is with the Shareholder Meeting that was scheduled for June 7, is that going to be rescheduled?

It is going to be rescheduled, yes.

Is that contingent on anything that’s happening or…?

It certainly is.

Okay. So no outlook on when that may happen at this point?

I don’t have any guidance at this time, no.

Okay, that was my only real question. You did a fantastic job explaining everything that’s going in the industry and I appreciate that.

Yes, no worries. Thank you. I appreciate your question. Have a great day.

You too.

Thanks.

The next question comes from Tao Smith [ph] a private investor. Please go ahead.

Thank you. Mark, thank you for the overview. I have two questions, do you know have the OEMs had yet sold any printers with PrintRite3D involved or included…?

I do know, it may have not.

They have not, okay. Secondly, can you comment on the relationship with GE and the effect that they are – the fact that they have a deal with materialize to use their software, how does that affect PrintRite’s future from a standpoint of quality assurance contracts with GE?

I think it probably enhances it quite honestly. It sort of makes final, but more why I say that. So the software that materializes is offering is complementary, not competitive product to Sigma Labs. And so that’s why I believe it’s going to be a good thing that they are strengthening their relationship.

Okay. I appreciate that earlier in conjunction with the secondary offering, I believe there were comments that you planned to add a couple of printers in-house is that still your plan or vision?

We are evaluating the current demand and then we will decide accordingly, yes.

Alright. One other question, can you tell us how many employees you have at the moment roughly?

Approximately a dozen and that includes both full-time, part-time and contractors.

Okay. Thank you.

Yes. You bet. Thanks for calling.

The next question comes from David Robinson a private investor. Please go ahead.

Hi Mark. I wanted to ask you and you have been clear about the fact that there you don’t have anything solid to report as far as the Morf3D potential merger at this point, but in terms of general discussions and in a broad stroke sense, if things do come together with Morf3D are you amendable to the idea of a co-CEO role or some significant managerial executive participation from Ivan Madera?

We are absolutely looking for a full participation by Ivan and his group. So the construct of a management team has been put forward and is currently being discussed.

And then I have another one as far as Dr. Dave is concerned because – does he maintained any kind of financial interest remaining financial interest in the company?

I believe Dr. Dave is still a shareholder, yes.

And any discussions with him as far as if things are going to be heating up and picking up as we would all like to believe and as you think to indicate any discussions with him about the potential of his becoming more meaningfully involved again?

Dr. Dave is and has been a contract employer of Sigma Labs’ now for some time. And so we again evaluate the needs periodically and have routine assistance from Dr. Dave as needed.

But he – it’s our understanding at least that he continues to have his other focuses and to be involved with other endeavors and there is no – can you tell us if there is any discussion of his coming back in a closer to full-time energy and time commitment basis with the company.

I don’t think there is anything further I can add at this time.

I see. Okay, thank you.

Yes. Thank you, David.

The next question comes from Paul Tourkin [ph] another Private Investor. Please go ahead.

Good afternoon Mark.

Hi Paul.

I would like to refer back to the conference call in November when you indicated that the printer was fully booked through the end of the year, we have seen a drop in revenues this quarter, what is the status of the booking for the printer that is in-house at this time?

So the machine is currently booked and is actually printing as we speak.

We gave a fully booked through the end of the year, I mean are we talking about being fully booked now or half the times 70%, my question goes to if you are looking is becoming more of a – could not be coming more, but adding a printing shop aspect, trying to get some sense of what the demand is at this time for those services so I can drill to other I think it’s a such a great idea to continue on this path with the funds we have at this point in time?

So let me try and put this in context for you Paul. The last week at the Rapid 2017 Show there were announcements by entities there to stand up large scale manufacturing facilities to do 3D metal printing for principally aerospace and defense. And so that’s to us a good sign that the market is expanding and the opportunity and the timing is now and so that’s why we are continuing down the vertical of can’t providing services on the contract AM side, that’s why we believe the opportunity is now to strengthen our alliance and relationship with Morf3D and their printing expertise and capabilities. So we believe the – what you are seeing now is a shift and a trend away from finally the prototyping that a lot of folks have been doing and the service providers if you will are starting to expand their capability and we believe the opportunity is before us, so that’s why that vertical exists for us.

Okay. Referring back to something else from that November conference call, you offered a time estimate of 12 months to 18 months that you thought would be necessary before sales of PrintRite started to get some real traction, are you still comfortable with that same timeframe, but you know its 6 months to 12 months from now or do you see this further out?

No I think we are still comfortable with that.

The next question comes from Doug Root [ph], a private investor. Please go ahead.

Yes. Hi guys. Thanks for the updates on like lot of exciting things going on in the industry and it sounds like you been very busy group.

Hi Doug.

I would like to ask you clarified couple of questions I have in my mind on financial side of things in the use of funds, so I have been a shareholder for many years, continue to see a decline in value and when I look at the use of – so you issue more shares and then turnaround and borrow money to couple of other companies I guess I don’t fully understand how that’s a good idea and are you in a position right now to have enough money operating capital needed through the rest of the year and what if you don’t?

It’s a great question, I appreciate that. We of course are – have thought and grow the capital, so that we can do exactly that grow and expand the business. And so we think it’s the right thing to do to take on the equity investments from the public markets to further our abilities and to accomplish the dozen or so activities we did in the first quarter this year, which was almost one a week if do the math and so that sets the stage very nicely for us for the remainder of 2017 and the out years. So we absolutely believe it’s the right thing to do.

This concludes our question-and-answer session. I would like to turn the conference back over to Mark Cola for any closing remarks.

I would like to thank everyone today for calling in and spending time with us. We are excited about the future and focused on achieving the promise that Sigma Labs represents and to delivering lasting shareholder value to you our loyal shareholders. Thank you again for your time and continued support and we look forward to continuing to report on our achievements in the coming months.

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.