Research and Development Update

As promised in my CEO letter, below is a report on the current developments and status of our R&D efforts with our volumetric 3D technology, CSpace.

3DIcon continues to make substantial progress in the development of CSpace. The Company has made significant strides in its optics, software and engineering as it continues down the development path to a “Product Platform.” (Once completed a Product Platform is a fully documented prototype that achieves certain performance and functionality goals that can be used as a basis for designing and building application- specific products, perhaps with or for partners.)

Our recent $300,000 funding from the Oklahoma Center for Advancement of Science and Technology (OCAST) was granted to facilitate the design and construction of a Product Platform, the next step in our development program.

As we have previously reported to you, a critical element in completing the path to a Product Platform is the development of an optimum image space material. The recent Joint Development Agreement (JDA) with Schott Defense, a world leader in specialty glass, as a partner in seeking significant federal funding for this component of our R&D program, should accelerate the development process for the image space material. We look forward to sharing further information on the early joint efforts to secure this federal funding as it becomes available.

In addition to our efforts to develop image space material, the focus of the R&D effort is on areas that will accommodate a larger image space. These include (i) a new line generator; (ii) a wide angle projection lens; (iii) improved appearance and portability; and (iv) software for a touch screen and for animation.

3DIcon’s systems engineering effort, led by Chief Technology Officer, Dr. Hakki Refai, is redesigning the optics between the two lasers and the image chamber of its laboratory prototype/demonstration unit. The goal is to improve both image quality and resolution while providing for the larger image chamber required for 3DIcon’s first Product Platform. The most critical component in the optics redesign is the new laser line generator that will allow 3DIcon to exchange the two lasers currently being used to deliver better image contrast and higher effective resolution.

The initial design for the new line generator has been completed and is now being optimized for cost and other factors. Other internal changes are designed to improve the appearance and portability of the demonstration unit.

In addition, the design of a wide angle projection lens has begun, with the intent of replacing the current imaging projector with a new projector that can deliver the larger images needed to address the larger image chamber that is being constructed. Software has been developed that will permit significant control over the display from a touch screen panel and will accommodate animation.

The work on Lab Prototype 3 is complete, other than the development of the optimum image space material. As previously reported, Lab Prototype 3 represents significant progress over the previous prototypes, namely, 80 times brighter than Lab Prototype 2; 2000 times brighter than Lab Prototype 1; and 8 times larger than Lab Prototype 2.

Both our technical team and outside partners remain focused and optimistic as we continue to pursue the completion of the world’s first true volumetric three dimensional display platform.