3D printing isn’t exactly news anymore. If you haven’t operated or seen one operated yourself, chance are your children, grandchildren, or nieces and nephews have.

Far more than the novelty it was a decade ago, today’s 3D printer plays crucial roles in industrial processes ranging from prototyping all the way to full-scale manufacturing.

This makes the 3D printer a growing industry unto itself, with multitudes of sectors in increasing degrees of specialization.

So when it comes to investing, understanding the niche is more important than ever.

Plenty of companies compete in the 3D printing space, but only a select few stand out within their respective niches.

One in particular is Tinkerine Studios Limited (TSX-V: TTD.V)(OTC: TKSTF).

Based in Vancouver, BC, Tinkerine is Canada’s leading 3D printer manufacturer.

However, Tinkerine offers more than just printers.

The company provides consumers with supporting software, hardware, and educational materials in order to create a complete, rewarding 3D printing experience for niche markets — specifically targeting the educational sector. 

Although a young company, started in 2012, Tinkerine has shown the ability to manage a fast-growth enterprise in an industry already containing strong competitors with greater financial and operating resources.

In just three years, Tinkerine has introduced three generations of products and has further invested in software development to accompany those products.

Tinkerine is the developer of the industry’s first “Open-C” frame structure and has been repeatedly acknowledged throughout the tech world for its design and aesthetic ingenuity.

The company offers its customers affordability without compromising impressive performance and high-quality prints.

Tinkerine has developed successful products that compete in a sector where each firm strives to drive down the price at which they can offer devices.

Tinkerine backs all its products with a one-year warranty, local service and repair options, and an online software resource called TinkerineU.

TinkerineU provides consumers with online training, tutorials, and tech support. It is the first online platform of its kind in the 3D printing industry, offering peer-to-peer interactions as well as tools from the manufacturer. Most importantly, though, it provides support for consumers in the education sector.

TinkerineU offers curriculum development tools for teachers and in-class programs for students and expands upon Tinkerine’s interests in the educational field, particularly in STEAM (Science, Technology, Engineering, Art, Math) programs.

Key Statistics:

Ticker Symbols: (TSX-V: TTD.V)(OTC: TKSTF)
Market Cap: $1.98 million
52-Week Low: $0.04
52-Week High: $0.14
Price: $0.06
Shares Outstanding: 41.98 million
Risk Level: Medium-High

Product Line

DittoPro, $1,899.00

The DittoPro is Tinkerine’s most recent product and currently its flagship device.

The DittoPro strays away from Tinkerine’s traditional DIY assembly and birch wood case, raising the standards of design aesthetic and performance. DittoPro is changing the paradigm of large, bulky, and visually unappealing 3D printers.

It’s 43% smaller than competitors in the same price range but still produces reliable, high-resolution prints.

When DittoPro was named “Best 3D printer” at China’s Consumer Electronics Show this year, it was specifically recognized for the incredible value that it offers consumers, Tinkerine’s signature “Open-C” frame design, and the balanced size-to-print ratio.

Compared to the competition, DittoPro offers affordable pricing and, in some cases, better micron resolutions than more expensive models. DittoPro also provides users with a larger build volume than the majority of competitors, reducing the limitations on printable objects.

Ditto+ and Litto DIY 3D Printer Kits

These are Tinkerine’s do-it-yourself 3D printer kits.

Designed for hobbyist and tinkerers alike, these modest wooden printers are truly timeless and easily accessible for users of all ages.

The open C-shaped design of Ditto+ and Litto frees the user from any obtrusive frames which could impede fabrication of larger objects.

Without sacrificing rigidity, the openness allows for easy access to the build platform without adding to bulk.

Growth Drivers

January 12, 2016: Sales Up 270% in 2015

Tinkerine announces record sales for the fiscal year ended December 31, 2015, totaling approximately $1,268,000, or a 270% increase versus the comparable period sales of $343,000 for the year ended December 31, 2014.

During Q4 2015, Tinkerine recorded sales of $349,000, a 236% increase over Q4 2014 sales of $104,000.

Higher sales during 2015 are attributable to increasing demand for the Tinkerine Ditto Pro 3D printer, filament consumable and associated software downloads from TinkerineU, which is Tinkerine’s content sharing platform advocating hands-on learning with 3D printing.

President and CEO Eugene Suyu commented:

We are very pleased with the growth of Tinkerine in 2015 and the continuing interest from the education sector. Our team at Tinkerine is developing new relationships with members of the education community, with a focus on STEAM (Science, Technology, Education, Arts and Mathematics) based education content. In addition to identifying and fostering new relationships, we are receiving new requests for methods to incorporate 3D printing into everyday activities.  We are proud to give new users the opportunity to build up a foundation of skillsets in 3D printing, and will continue to develop new content for advancing educational content. I want to thank all shareholders and stakeholders for their support and look forward to delivering continued success and accelerated growth.

May 30, 2016: Tinkerine Announces Substantial Revenue Growth

Tinkerine releases the financial results for the fiscal period ending March 31, 2016.

Financial Highlights Q1 2016

• Revenue of $171,689 for Q1 2016, a 58% increase from the comparable period ending March 31, 2015.
• Gross margin of $64,572, a 177% increase from the comparable Q1 2015 period.
• A 32% reduction in expenses in Q1 2016 versus the previous years’ comparable period.
• Net loss of $311,223 for the period ending March 31, 2016 versus a net loss of $475,027 in the comparable Q1 2015 period.

Business Highlights

• Appointed Mr. Justin Sy as interim Chief Financial Officer.
• Closing of private placement financing in the amount of $315,000, subscribed for by insiders and founders of the Company.
• Increased inventory of raw materials and finished products to $608,351 in anticipation of cyclical sales to educational institutions in Q2 and Q3.

Analysis

Small and efficient, this is a tech company that is nevertheless able to produce a product, market it, and get it to consumers at a steadily increasing pace — with 2015 culminating in sales close to 60% of the company’s current market capitalization.

All the while, shares continue to trade close to 52-week lows.

That spells bargain to me.

I’m buying this under $0.15.