Project Linear: US Industrial 3D Printer OEM | TAA-Compliant | Defense Customers

The Business 13-year-old US manufacturer of industrial FDM polymer 3D printers. Designed, assembled, and calibrated entirely in the US. Two active platforms targeting professional, industrial, and government buyers. Legacy installed base generates recurring parts and consumables revenue through an e-commerce channel (~95% replacement parts). Financials 2025 Revenue: $1.82M | 2024: $2.01M | 2023: $2.12M 2025 Gross Margin: 27.3% (up from 14.5% in 2023 — three consecutive years of expansion) 2025 Net Income: $107K on a cash basis Balance sheet insolvent; ~$602K in identified liabilities targeted for cleanup at close Why It's Interesting The platform has structural advantages most competitors can't replicate: TAA-compliant, US-manufactured, EAR99 export classified, Section 636-eligible. That compliance stack is a hard wall against Chinese-origin OEMs in federal, defense, and government procurement. Validated defense customers include major Army divisions, Naval Special Warfare, and a Tier 1 defense prime — all acquired bottom-up with no enterprise sales motion in place. Revenue decline since 2022 traces to a specific and identifiable cause: a platform launch that mispriced and broke brand continuity. The demand generation playbook that drove the company to $2.5M–$3.0M was shut off, not destroyed. The manufacturing footprint supports $6M in annual revenue without a facility move. Deal Structure 80/20 recapitalization. Buyer acquires 80% of common equity, deploys $1.5M: $602K at close to clean the balance sheet, $823K reserved for post-close growth and retention deployment. Zero cash to sellers at close. Sellers retain 20% equity. Founder/CEO confirmed to continue in an operating role under a 24-month employment agreement. This is a capital deployment and operating execution play, not a financial engineering play. Fit Best fit is an operator or platform with one of two capability profiles: (1) existing defense/federal channel infrastructure looking to add a TAA-compliant hardware product, or (2) existing industrial distribution relationships in tooling, CNC, or MRO looking for a US-made additive product with a proven installed base. Process Managed process. LOI target May 15, close target June 15. NDA required prior to CIM access.