Company update regarding federal funding initiatives

Many of you have continued to express interest in the status of our efforts to raise money in the form of grants from the Federal Government. Our strategy continues to pursue three different paths: 

1. Submit proposals to solicitations from the Federal Government when they have a specific need we believe we can satisfy. 

2. Market concepts to the Federal Government in areas where we believe they have a need and would be willing to consider an unsolicited proposal. 

3. Work with the Oklahoma Congressional delegation, and others, to increase funding available for (1) and (2).

We continue to make progress, albeit slower than desired, on all fronts. We previously reported submitting a proposal to the National Institutes of Health to interface CSpace with medical imaging systems. This proposal is still under review and we will not know the outcome for several months. This week we submitted a proposal to the Air Force to develop CSpace for use by cyber analysts. Award notification will not occur until early or mid-summer. In both cases we believe we presented compelling arguments for our approach, worked with globally recognized partners to enhance the likelihood of success not only during development but transition, and received the endorsement of large corporate end users.

We continue to look for new opportunities (both solicited and unsolicited) and the team members have expressed interest in future joint submissions. As many of you know, advances in technology for healthcare and cyber security remain a priority for investment by the Federal Government. We, and our partners, continue to believe we can provide unique solutions that the Federal Government will consider worthy of investment. Our presentation at the National Defense Industrial Association Science & Engineering Technology Conference in late March, participation in the SPIE Defense & Security Symposium in April, and contributions to various trade and professional publications are being used to reinforce that message. 

While we can understand your desire for more details on these and future submissions, competition and confidentiality sometimes prevents 3DIcon and our team members from making any public statements until we have been notified of selection. We will, however, continue to keep shareholders informed of new developments whenever possible to continue our emphasis on transparency.

- Victor Keen, CEO