What changed in this filing

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Item 1. Business

2022-03-24 compared with 2021-03-24 · 228 added, 234 removed, 31 unchanged (94% of the section changed)

is an 11-year-old software company that was founded by scientist-engineers composed of physicists and metallurgists then working

at Los Alamos National Labs for the entrepreneurial purpose of developing sophisticated metallurgical products.

Since 2016, the

Company’s focus has been on solving the complex and challenging problem of how to best assure the high quality of metal

parts manufactured in laser powder bed additive manufacturing machines.

Sigma and many others believe that until this problem

was solved, 3D manufacturing of metal parts would not be scalable enough to grow past prototyping and mature into a major industry

enjoying high quality yields and cost-efficient production runs.

The solution that Sigma developed to solve this problem is In-Process-Quality-Assurance

(“IPQA®”) software known as PrintRite3D®.

2018, the Sigma team enhanced and added user features to its PrintRite3D®

In 2019, the Company began to productize

and test PrintRite3D®

on various 3D metal printers at customers’

sites through the Company’s Rapid Test and Evaluation

(“RTE”) program.

Upon receiving favorable responses from the various RTEs, in 2020 the Company began to aggressively

market PrintRite3D®.

However, the worldwide COVID-19 pandemic caused a reduction, and in some cases a freeze, in capital spending

within the Company’s targeted industries and had what the Company believes to be a short-term negative impact on the Company’s

expected timing of generating meaningful revenue.

Despite the pandemic, the Company moved forward with its plan to market PrintRite3D®

to the following industry segments:

(1) global manufacturing companies with Additive Manufacturing

(“AM”) initiatives;

(2) 3D printer Original Equipment Manufacturers (“OEMs”) for purchases of licenses

and generating fees and royalties thereafter;

Sigma is a software company that was founded

by scientist-engineers composed of physicists and metallurgists then working at Los Alamos National Labs for the entrepreneurial purpose

of developing sophisticated metallurgical products.

Since 2016, the Company’s focus has been on solving the complex and challenging

problem of how to best assure the high quality of metal parts manufactured in laser powder bed additive manufacturing, or 3D printing,

Sigma and many others believe that until this problem was solved, 3D manufacturing of metal parts would not be scalable

enough to grow past prototyping and mature into a major industry enjoying high quality yields and cost-efficient production runs.

solution that Sigma developed to solve this problem is In-Process-Quality-Assurance (“IPQA®”) software known as PrintRite3D®.

2018, the Sigma team enhanced and added user features to its PrintRite3D® technology.

In 2019, the Company began to productize and

test PrintRite3D® on various 3D metal printers at customers’ sites through the Company’s Rapid Test and Evaluation (“RTE”)

Upon receiving favorable responses from the various RTEs, in 2020 the Company began to aggressively market PrintRite3D®.

However, the worldwide COVID-19 pandemic caused a reduction, and in some cases a freeze, in capital spending within the Company’s

targeted industries and had what the Company believes to be a short-term negative impact on the Company’s expected timing of generating

meaningful revenue.

Despite the pandemic, the Company moved forward with its plan to market PrintRite3D® to the following industry

(1) global manufacturing companies with Additive Manufacturing (“AM”) initiatives;

(2) 3D printer Original Equipment Manufacturers (“OEMs”) for purchases of licenses and generating fees and royalties thereafter;

(3) additive manufacturing software venders for alliances and licenses for co-sales;

and (4) research foundations, standards organizations and universities, all in service of Sigma’s potential for setting

the industry standard of measurement by providing data and analytics as a metrics-based quality standard of metal quality for

all 3D laser powder bed manufactured parts, notwithstanding the design, metal, or brand of equipment upon which parts are manufactured.

Metal Manufacturing and the role and need for Sigma’s technology:

Manufacturing, or 3D printing, has been among the most heavily explored manufacturing innovations in the history of modern manufacturing.

The use of 3D printing technology dates back to the 1980s for polymer applications, but the ability to print functional parts

from metal alloys has spurred significant interest and investment into AM over recent years.

AM is now reshaping the product design

process, entire supply chains, and the vast landscape of manufacturing.

Engineers are embracing new design freedoms to realize

valuable product performance improvements and cost efficiencies with lighter weight, better thermal management capability, better

fluid mixing, customization, and/or the ability to make different structures and textures that yield better part integration.

significant hurdles still prevent the wider adoption of additive technologies.

The lack of quality, consistency and standards

are most often cited.

The Company believes that the lack of technology such as PrintRite3D®, could be the last sizable barrier

to the widespread industrialization of 3D metal printing.

Additionally, many believe that the disruption to complex and rigid

supply chains caused by COVID-19 exposed the country’s vulnerability to shortages in times of crisis.

It appears that many

manufacturers are devising strategies to be able to be more agile, increase their ability to manufacture mission critical parts

on demand, with more customization, and closer to where the end part will be needed.

anticipate that the enterprise adoption of the technology will accelerate in 2021, evolving over time as follows:

International research & development organizations and universities will establish centers of excellence for

Advanced Manufacturing and be a major resource for enterprises seeking to adopt best practices for AM.

2 - Enterprises will start with their own R&D initiatives and select a 3D printer vendor, or vendors, that meets their

requirements.

During this time, they will focus on experimenting with different metal powder alloys, part structures, design

guidelines, and in-process quality metrics.

Once R&D is complete, enterprises will select one part to test and move into production, improving the process

from design to production and confirming the economics and quality of the process.

International standards will be established by organizations such as NIST, ISO, ATSM, etc., ensuring the consistency

of components and processes.

These standards will become increasingly important as the industry moves to full industrialization.

As the adoption of AM accelerates, enterprises will utilize multiple 3D printers from multiple manufacturers due

to printer innovations and advancements, varying production requirements, divisional preferences, etc.

Independent standards-based, IPQA systems, such as PrintRite3D®, will be required to assure consistent quality

in heterogeneous factories.

PrintRite3D®

and (4) research foundations, standards organizations

and universities, all in service of Sigma’s potential for setting the industry standard of measurement by providing data and analytics

as a metrics-based quality standard of metal quality for all 3D laser powder bed manufactured parts, notwithstanding the design, metal,

or brand of equipment upon which parts are manufactured.

Metal Manufacturing and the role and need for Sigma’s technology:

use of 3D printing technology dates back to the 1980s for polymer applications, but the ability to print functional parts from metal

alloys has spurred significant interest and investment into AM over recent years.

AM is now reshaping the product design process, entire

supply chains, and the vast landscape of manufacturing.

Engineers are embracing new design freedoms to realize valuable product performance

improvements and cost efficiencies with lighter weight, better thermal management capability, better fluid mixing, customization, and/or

the ability to make different structures and textures that yield better part integration.

believe that there are several significant

hurdles to be overcome for broader adoption of additive technologies for the production of industrial metal parts.

Among these are

lack of quality, consistency, and industry standards along with cost.

The Company believes PrintRite3D®

has the potential to contribute to widespread industrialization of 3D metal printing.

Additionally, the disruption in

complex and rigid supply chains caused by COVID-19 exposed the country’s vulnerability to shortages in times of crisis.

response, manufacturers are devising strategies to be able to be more agile, increase their ability to manufacture mission critical

parts on demand, with more customization, and closer to where the end part will be needed.

Technology and Product Family

PrintRite3D®

an interactive in-process quality assurance system that combines inspection, feedback, data collection and critical analysis.

is a platform-independent solution that can be installed as a retrofit to an existing 3D printer or requested as a factory option

from select 3D printer OEMs.

PrintRite3D®

provides a high-fidelity, accurate system that can confidently scale to multi-laser

3D metal printers.

The PrintRite3D®

system discovers potential anomalies and incorporates machine learning in conjunction

with developed metrics to map those metrics to the post-process data.

This provides the ability to reduce post-production testing

and costs, while creating a certification framework that serves the needs of end-users, printer manufacturers, and standards organizations.

Company currently offers three versions of PrintRite3D®

for Laser Bed Fusion Systems:

(1) PrintRite3D®

Lite which has

a smaller footprint and is geared towards single-laser machines for Research and Development, or small production lots.

(2) PrintRite3D®

Pro, for single, dual and quad laser machines and is suited well for environments with less than 10 machines, and (3) PrintRite3D®

Enterprise for plant-wide networks.

PrintRite3D®

Lite expands the Company’s addressable market to mid-range 3D printer

manufacturers for potential OEM opportunities.

Company announced in late 2020 PrintRite3D®

for Direct Energy Deposition (“DED”), opening up another segment of

the market for Sigma to sell and distribute its technology.

DED is based on a laser process in which a laser beam generates a

melt pool on a substrate.

An additional metallic powder material is transported to the melt pool, where it becomes molten.

to a feed movement, the molten material cools down and welding tracks are formed.

By placing weld tracks side-by-side and on top

of one another, a build-up is obtained.

Three-dimensional structures can then be generated by depositing one layer or track at

the top of another previously welded layer or track.

is an integrated hardware and software edge computing platform, or in-process quality assurance system that combines inspection, feedback,

data collection and critical analysis.

It is a 3D printer platform-independent solution that can be installed as a retrofit to an existing

3D printer or requested as a factory option from select 3D printer OEMs.

PrintRite3D® provides a high-fidelity, accurate system that

can confidently scale to multi-laser 3D metal printers.

The PrintRite3D® system detects potential anomalies and incorporates machine

learning in conjunction with developed metrics to map those metrics to the post-process data.

This provides the ability to reduce post-production

testing and costs, while creating a certification framework that serves the needs of end-users, printer manufacturers, and standards

organizations.

was initially developed to work with industrial 3D metal printers using the Powder Bed Fusion (PBF) process, which is the most widely

used process for industrial metal applications.

In 2020, we announced PrintRite3D for Direct Energy Deposition, or DED, for metal parts.

PrintRite3D DED opens up another segment of the industrial metal market for Sigma to sell and distribute our technology.

the Company introduced PrintRite3D Selective Laser Sintering, or (SLS) for polymer materials.

The polymer market is larger and more advanced

than the metal market.

There is an increasing need for quality and standards within the polymer market to support mission critical parts

such as those being used in aerospace, space exploration, and defense.

The Company’s entry into this market was customer

driven by a supplier of critical equipment to the space exploration market.

The Company believes that PrintRite3D’s ability to

work across a different 3D printers, processes and materials gives it a competitive advantage and will help accelerate the adoption of

3D printing for industrial applications.

Labs employs a multi-channel distribution model for its IPQA products including a direct sales force, value added resellers (“VARs”)

and 3D printer Original Equipment Manufacturers (“OEMs”).

In 2020, the majority of the Company’s revenue was generated by

direct sales in North America and Europe.

In 2021, the majority of the Company’s revenue was

generated by direct sales in North America and Europe.

VARs are currently used in Japan and India.

The Company plans to extend its VAR channel

outside of North America and Europe.

In 2020 the Company moved aggressively to establish and extend relationships with 3D printer

OEMs and expects that the percentage of the Company’s revenue coming from OEMs will increase in 2021 and beyond.

Company markets its products through webinars, email and social media campaigns, and participation, both in person and virtually,

in industry events and tradeshows.

The Company plans to extend its VAR

channel outside of North America and Europe.

Since 2020, the Company has moved aggressively to establish and extend relationships

with 3D printer OEMs and began to generate revenue from this channel.

The revenue generated by the OEMs in 2021 did not meet the Company’s

projections due to several reasons, including but not limited to:

(1) the ramp up time for the OEM’s sales force, (2)

the ongoing impact of COVID on our European based OEM partners, and (3) the lack of OEM sales into select vertical markets (e.g.,

aerospace and space exploration) that require that parts conform to specific quality standards.

We expect that the percentage of

the Company’s revenue coming from OEMs will increase in 2022 and beyond.

Company markets its products through webinars, email and social media campaigns, and participation, both in person and virtually, in

industry events and tradeshows.

In addition, the Company collaborates with international standards organizations in the establishment

1 unchanged sentence

and Availability of Parts and Materials

have important relationships with several suppliers for critical components of our PrintRite3D®

systems, in particular optics

and data acquisition components, and development of our user interface.

To-date, we have not experienced shortages of components,

however, in some cases COVID-19 has resulted in increased lead times for certain parts.

We manage the risk of component shortages

by sourcing backup suppliers, and in the case of our user interface, hiring engineers in-house to support the ongoing development

have important relationships with several suppliers for critical components of our PrintRite3D® systems, in particular optics and

data acquisition components, and development of our user interface.

To-date, we have not experienced shortages of components, however,

in some cases COVID-19 has resulted in increased lead times and cost for certain parts.

We manage the risk of component

shortages by sourcing backup suppliers, and in the case of our user interface, hiring engineers in-house to support the ongoing development

and maintenance.

with Original Equipment Manufacturers (“OEMs”)

Company entered into distribution agreements with two international 3D printer OEMs.

The Company supports the OEMs with joint

marketing programs and field sales and technical support personnel to assist in the sale of its technology.

It is the Company’s

intent to continue to build the OEM channel through distribution relationships with other 3D printer OEMs in the future.

and Sigma’s Intellectual Property Safeguards

PrintRite3D®

is a third-party, agnostic In-Process Quality Assurance system designed to provide a consistent, standards-based measurement and

prediction of quality across a heterogeneous collection of 3D printers.

Competition is primarily from the printer OEMs who offer

their own monitoring system, usually as a separately priced option to its printers.

Sigma believes that the future of AM will

consist of factories with various generations of printers from various manufacturers.

The primary reasons that global manufacturers

will have machines from various vendors is that certain machines and technologies are better suited for different applications

Additionally, as the industry progresses, innovation will accelerate, and new leaders will emerge.

Finally, many

believe that there will be a consolidation of 3D metal manufacturers and the number of vendors will decrease from approximately

50 to a much small number over the next decade.

Although standards for monitoring are slowly being set by various international

standards organizations, it is highly unlikely that printer OEMs will modify their monitoring systems to work with other OEMs

Therefore, we believe that the only way to produce parts with a consistent level of quality is with a third-party, agnostic,

standards based IPQA system, such as PrintRite3D®.

To the Company’s knowledge, there is no competitor currently offering

an IPQA system with similar functionality which has been validated to operate across as many 3D metal printers as PrintRite3D®.

began its investigation and research into optical and thermal data collection and measurement for quality assurance and intervention

approximately 7 years ago and began to develop its intellectual property protection at that time.

The international IP law firm,

Kilpatrick Townsend, has advised the Company on building a patent portfolio, trade secrets, trademarks, etc.

and filed and prosecuted

patents as the Company has grown its body of intellectual property.

Patent Portfolio

upon the evidence of competitors’

claims received by Sigma to-date, it appears to us that Sigma’s solution to the

quality problems of 3D metal printing is a significantly different technological approach than that of our principal known competition.

It continues to appear to the Company that the intellectual property protection of PrintRite3D®’s acuity, meaningful

metrics of thermal data correlated to part quality, and usability of its software accord Sigma freedom to operate with its technology

and will be a significant barrier to entry to competitors attempts to pursue the technology path traveled by Sigma.

on a Few Major Customers and Partners

Company has established distribution agreements with two international 3D printer OEMs.

We expected each to contribute a significant

percentage of our 2021 revenue, however due to the previously discussed reasons, revenue in the first year of the relationship did not

meet either company’s expectations.

The Company supports the OEMs with joint marketing programs, field sales and technical

support personnel to assist in the sale of its technology.

It is the Company’s intent to continue to build the OEM channel through

distribution relationships with other 3D printer OEMs in the future.

is a third-party, agnostic In-Process Quality Assurance system designed to provide a consistent, standards-based measurement and prediction

of quality across a heterogeneous collection of 3D printers.

Competition has been primarily from the printer OEMs who offer their own

monitoring system, usually as a separately priced option to its printers.

Sigma believes that the future of AM will consist of factories

with various generations of printers from various manufacturers.

The primary reasons that global manufacturers will have machines from

various vendors is that certain machines and technologies are better suited for different applications than others.

Additionally, as

the industry progresses, innovation will accelerate, and new leaders will emerge.

Finally, many believe that there will be a consolidation

of 3D metal manufacturers and the number of vendors will decrease from approximately 50 to a much small number over the next decade.

Although standards for monitoring are slowly being set by various international standards organizations, it is highly unlikely that printer

OEMs will modify their monitoring systems to work with other OEMs machines.

Therefore, we believe that the only way to produce parts

with a consistent level of quality is with a third-party, agnostic, standards based IPQA system, such as PrintRite3D®.

Over the past

year or so, new competitors have entered the market with monitoring technology that follows Sigma’s lead as a 3rd party agnostic

system capable of working across 3D printer machine types.

These systems use camera-based technology and machine learning to identify

gross defects during the printing process.

These solutions are useful;

however, they fall short of determining root cause,

and unlike PrintRite3D, are not capable of instructing the printer, through closed-loop control, to vary certain machine variables

such as laser power to avoid creating the defects.

regard our patents, trademarks, domain names, trade secrets, know-how, and other intellectual property as critical to our success.

We rely on a combination of patent, trademark, trade secret, other intellectual property law, confidentiality procedures, and

contractual provisions with employees, partners, and others to protect the technology and other proprietary rights, information

and know-how that comprise the core of our business.

rely on a combination of patent, trademark, trade secret, other intellectual property law, confidentiality procedures, and contractual

provisions with employees, partners, and others to protect the technology and other proprietary rights, information and know-how that

comprise the core of our business.

The chart below summarizes our issued patents.

We are currently prosecuting

thirty foreign and U.S.

patent applications related to our IPQA®

technology and rapid qualification of additive manufacturing

for metal parts.

There is no guarantee that the patent applications we have submitted will issue or that if issued, they will

offer adequate protection under applicable law.

We are currently prosecuting foreign and U.S.

patent applications related to our IPQA® technology and rapid qualification of additive manufacturing for metal parts.

guarantee that the patent applications we have submitted will issue or that if issued, they will offer adequate protection under applicable

Sigma Labs, Inc.

Patent Portfolio as of

December 31, 2021

The Company believes that its patented

PrintRite3D® technology is a significant barrier to entry to competitors attempting to replicate the Company’s

or Application No.

Weld Pool Volume Control of Welding Processes

Sound Reactive Materials

and Systems for Monitoring Additive Manufacturing Processes

11 unchanged sentences

Quality Inference and Control for Additive Manufacturing Processes

Manufacturing Process Sensing and Status Indication System

and System for Monitoring Additive Manufacturing Process

Defect Detection Using Normalized Sensor Data

and Methods for Measuring Radiated Thermal Energy During an Additive Manufacturing Operation

112,018,001,597

contracts that we enter into with governmental agencies will be subject to a variety of federal, state and local laws and regulations.

These regulations are aimed at preventing the inadvertent disclosure of munitions related data or the export of technical knowledge

to foreign countries.

The work we do with governmental units may also be subject to laws respecting the confidentiality of any

classified or national security information we receive during the course of our activities under any government contract.

These regulations are aimed at preventing the inadvertent disclosure of munitions related data or the export of technical knowledge to

foreign countries.

The work we do with governmental units may also be subject to laws respecting the confidentiality of any classified

or national security information we receive during the course of our activities under any government contract.

Additionally,

with respect to our work with government agencies, our sales are driven by pricing based on costs incurred to produce products

or perform services under contracts with the U.S.

government contracts generally are subject to Federal Acquisition

Regulations (“FAR”), agency-specific regulations that implement or supplement FAR, such as the DoD’s Defense

Federal Acquisition Regulations and other applicable laws and regulations.

These regulations impose a broad range of requirements,

many of which are unique to government contracting, including various procurement, import and export, security, contract pricing

and cost, contract termination and adjustment, and audit requirements.

A contractor’s failure to comply with these regulations

and requirements could result in reductions of the value of contracts, contract modifications or termination, and the assessment

of penalties and fines and could lead to suspension or debarment from government contracting or subcontracting for a period of

In addition, government contractors are also subject to routine audits and investigations by U.S.

government agencies such

as the Defense Contract Audit Agency (“DCAA”).

These agencies review a contractor’s performance, cost structure,

and compliance with applicable laws, regulations, and standards.

The DCAA also reviews the adequacy of, and a contractor’s

compliance with, its internal control systems and policies, including the contractor’s purchasing, property, estimating,

compensation, and information systems.

of March 24, 2021, we do not have any active contracts with government agencies.

During fiscal year 2020, we did not enter

into any contracts with government agencies, nor do we seek to do so in the future.

and Human Capital Resources

with respect to our work with government agencies, our sales are driven by pricing based on costs incurred to produce products or perform

services under contracts with the U.S.

government contracts generally are subject to Federal Acquisition Regulations

(“FAR”), agency-specific regulations that implement or supplement FAR, such as the DoD’s Defense Federal Acquisition

Regulations and other applicable laws and regulations.

These regulations impose a broad range of requirements, many of which are unique

to government contracting, including various procurement, import and export, security, contract pricing and cost, contract termination

and adjustment, and audit requirements.

A contractor’s failure to comply with these regulations and requirements could result in

reductions of the value of contracts, contract modifications or termination, and the assessment of penalties and fines and could lead

to suspension or debarment from government contracting or subcontracting for a period of time.

In addition, government contractors are

also subject to routine audits and investigations by U.S.

government agencies such as the Defense Contract Audit Agency (“DCAA”).

These agencies review a contractor’s performance, cost structure, and compliance with applicable laws, regulations, and standards.

The DCAA also reviews the adequacy of, and a contractor’s compliance with, its internal control systems and policies, including

the contractor’s purchasing, property, estimating, compensation, and information systems.

of March 23, 2022, we have several active contracts with government agencies.

During fiscal year 2021, we entered into two contracts

with government agencies, and we plan to increase this activity in the future.

Human Capital

of December 31, 2021, we had 33 full-time employees.

We continue to search for additional, qualified personnel, to support our

expanding operations in the area of IPQA®

that our future success largely depends upon our continued ability to attract and retain highly skilled employees, as well as

highly qualified management and technical personnel.

Employee engagement is important to us and we focus on continuously enhancing

our corporate culture.

lease approximately 3,700 square feet of space at 3900 Paseo del Sol, Santa Fe, New Mexico 87507, including 1,772 square feet

of office space at units, C-14, C-15, C-16, C-17, C-20, C-21 and D-34 for a total monthly rent expense of approximately $3,840

under the lease, and 1,928 square feet of warehouse / production space at units E-38, E-40 and E-42, for a total monthly rent

expense of approximately $2,275 under the lease, which expire on July 31, 2021.

believe that our facilities are suitable for our current needs.

We currently intend to renew such leases, but we are evaluating

the need for a larger space as we grow.

principal executive offices are located at 3900 Paseo del Sol, Santa Fe, New Mexico 87507, and our current telephone number at

that address is (505) 438-2576.

Our website address is www.sigmalabsinc.com.

The Company’s annual reports, quarterly reports,

current reports on Form 8-K and amendments to such reports filed or furnished pursuant to section 13(a) or 15(d) of the Securities

Exchange Act of 1934, as amended (the “Exchange Act”), and other information related to the Company, are available,

free of charge, on that website as soon as we electronically file those documents with, or otherwise furnish them to, the SEC.

The Company’s website and the information contained therein, or connected thereto, are not and are not intended to be incorporated

into this Annual Report on Form 10-K.

March 15, 2021, we announced that we were awarded a contract for an initial system of our PrintRite3D in-process quality assurance

solution by Lockheed Martin Space Additive Design & Manufacturing Center based in Sunnyvale, California.

The Additive Design

& Manufacturing Center supports the entire Space portfolio and integrates key materials research and manufacturing processes

to streamline the affordable delivery of satellite components.

As a part of this initial contract, the Lockheed Martin team will

assess the viability and performance of PrintRite3D technology for the Space division in support of a variety of defense and civil

space programs.

January 12, 2021, the Company closed a public offering of equity securities in which it issued 1,711,783 shares of common stock

(including the exercise in full of the underwriters’

over-allotment option of 223,276 shares).

Net proceeds to the Company

after deducting offering expenses were approximately $4,532,444.

December 18, 2020, we announced that we were selected by DMG MORI as the preferred melt pool monitoring system for their LASERTEC

SLM machines.

Engineering teams from both companies worked extensively to test the integrated solution to ensure that it meets

the demanding needs of industrial manufacturers utilizing DMG MORI’s family of metal 3D printers.

DMG MORI will be providing

an interface with its printers to accommodate our optics, ensuring that the systems are PrintRite3D®

We continue to search for additional, qualified personnel, to support our expanding

operations in the area of IPQA® for AM.

We believe that our future success depends, in part, upon our continued ability to

attract and retain highly skilled employees and management and technical personnel.

Employee engagement is important to us and

we focus on continuously enhancing our corporate culture.

strive to provide robust and competitive compensation and benefits to our employees.

Our benefit programs include bonuses, stock-based

compensation awards, a 401(k) plan with employer matching, healthcare and insurance benefits, flexible paid time off and other employee

assistance programs.

The health and wellness of our

employees is also critical to our success.

In an effort to keep our employees safe during the COVID-19 pandemic, we have implemented

a number of health-related measures including, but not limited to, protocols governing the use of face-masks while on company property,

temperature taking protocols, a flexible work-from-home policy, cleaning procedures at our offices, and social-distancing protocols,

which measures we will continue to monitor.

incorporated as Messidor Limited in Nevada on December 23, 1985 and changed our name to Framewaves Inc.

On September 27, 2010,

we changed our name from Framewaves Inc.

to Sigma Labs, Inc.

principal executive offices are located at 3900 Paseo del Sol, Santa Fe, New Mexico 87507, and our current telephone number at that address

is (505) 438-2576.

Our website address is www.sigmalabsinc.com.

The Company’s annual reports, quarterly reports, current reports

on Form 8-K and amendments to such reports filed or furnished pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934,

as amended (the “Exchange Act”), and other information related to the Company, are available, free of charge, on that website

as soon as we electronically file those documents with, or otherwise furnish them to, the SEC.

The Company’s website and the information

contained therein, or connected thereto, are not and are not intended to be incorporated into this report.

17, 2022, we announced that Jacob Brunsberg was appointed as President and Chief Operating Officer of the Company .

In this position, Mr.

Brunsberg will have responsibility for product direction, strategic relationships, sales, marketing, and

As President and Chief Operating Officer, he will report to Mark K.

Ruport, Sigma’s Chief Executive Officer.

Brunsberg will oversee several strategic initiatives designed to accelerate the growth and performance of the company, including

the transition to a software only offering, initiating and implementing a comprehensive OEM integration program, building strategic partnerships,

and implementing a new subscription-based pricing model as an option to our existing perpetual pricing model.

Each of these key

initiatives is integral to lowering the additive manufacturing (“AM”) industry’s technology adoption barriers and easing

entry and expansion for manufacturers and OEM partners.

January 26, 2022, we announced that together with Materialise, a leading provider of additive manufacturing (AM) software and services,

we had developed a breakthrough technology to enhance the scalability of metal AM applications.

The new platform combines the Materialise

Control Platform and Sigma Labs’ PrintRite3D® sensor technology to allow users to identify and correct metal build issues in

With added control over their unique processes, manufacturers can optimize metal AM processes for consistency and repeatability,

key factors in scaling AM operations for serial production.

January 25, 2022, we announced that our PrintRite3D® in-process quality assurance solution had been purchased by Auburn University,

based in Auburn, Alabama.

The PrintRite3D solution will be installed on the university’s EOS M290 machine and is the start of an

academic and industrial collaboration between the university and Sigma Labs, and we will deploy the system under a commercial lease/purchase

program that provides more flexible and acceptable terms for academic institutions and early adopters.

will be implemented to support several projects at the Auburn University National Center for Additive Manufacturing Excellence (NCAME)

to utilize 3D printed (additively manufactured) components to improve commercial air and space travel.

As reported by the Auburn University

Samuel Ginn College of Engineering, NCAME is funded by a $3 million grant from the Federal Aviation Administration (FAA).

The objective

is to address issues related to the variability in additive manufacturing machines, as well as generate an understanding of how microscopic

anomalies in the 3D-printed metals affect overall fatigue and fracture properties.

January 20, 2022, we announced that our PrintRite3D® in-process quality assurance solution will be certified to work with Aconity3D’s

line of 3D metal printers and available as a standard option via Aconity3D’s online configurator.

Aconity3D will designate their

printers as ‘PrintRite3D Ready™’.

As an original equipment manufacturer (OEM) Aconity3D will sell, install and support

PrintRite3D as an integrated solution to its customers.

is a machine manufacturer for laser-based 3D printing of metals, with a focus on the buildup of customer specific systems for Laser Powder

Bed Fusion (LPBF), in which metal particles are fused layer upon layer by a laser.

The Aconity System Framework allows full customization

of each machine for customers’ specific applications.

Aconity3D’s customers and partners include leading industrial, aviation

and automotive companies, and world-renowned institutes and universities at the forefront of the additive manufacturing (AM) landscape.

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Item 1. Business