Apr. 29 at 2:15 PM
Applied Energetics, Inc. (OTCQB:
$AERG ), CEO Chris Donaghey, discussed the defense R&D funding landscape during the Space and Defense Infrastructure panel at the ROTH Capital Partners Conference.
Applied Energetics is a B2i Digital Featured Company. View its profile at https://b2idigital.com/applied-energetics-0.
Donaghey, who is also a co-founder and executive chairman of the nonprofit Silicon Valley Defense Group, described a decade-long shift in Pentagon funding toward companies that can demonstrate proven technology: “The Pentagon is essentially outsourcing early stage resource. They want us to develop those capabilities on our own and show up to them as a customer with a system that has been proven in a relevant environment.”
Drawing on his experience with Silicon Valley Defense Group, Donaghey outlined the funding math behind this shift:
• When SVDG started 10 years ago, innovation funding for companies like Applied Energetics was measured in the tens of millions of dollars; today, according to Donaghey, it is measured in the billions
• He said the early-stage research budgets, the 6.1 and 6.2 categories, total only about
$10 billion and have been declining roughly 20% per year
• At Technology Readiness Level 5 and above, the advanced R&D budgets from 6.3 through 6.7 total approximately
$120 billion and have been growing at about 20% per year
• The implication, as Donaghey described it: the government expects private or venture capital to fund development through TRL4, but once a company demonstrates a system in a relevant environment at TRL5, substantially deeper pools of customer funding become available
• Applied Energetics has been conducting outdoor testing at relevant ranges over the past several months, positioning the company at this inflection point
Watch the full Space and Defense panel: https://youtube.com/shorts/Z7amxxRrbHA?feature=share
Applied Energetics, Inc., a defense technology company, specializes in optical fiber-based ultrashort pulse laser (USPL) technologies and applications for countering drones, ISR sensors, hypersonic weapons, and other applications. With 26 patents and 6 patents pending, Applied Energetics’ proprietary architecture enables orders of magnitude size-weight-power reductions when compared with traditional continuous wave (CW) laser technology with larger footprints. AE’s powerful, dual-use systems are designed for integration and deployment on numerous potential defense platforms for the delivery of high-intensity, ultrashort pulses of light to disable or destroy a target. These technologies have applications in both national security and commercial markets. Today, AE’s USP optical technologies are being designed to offer flexibility and power for complex missions in national security such as enhancing layered defense strategies to counter complex threats.
Learn more about Applied Energetics at https://ir.appliedenergetics.com. For investor information, contact Kevin McGrath:
[email protected].
Disclosure: David Shapiro, CEO of B2i Digital, personally purchased in the open market and currently owns shares of unrestricted AERG stock, in line with B2i Digital’s practice of investing alongside its Featured Companies. This post is not intended to solicit the sale of AERG or any security, and it is not intended to offer any opinion on AERG as an investment. Conduct your own research and consult with your own professional advisors prior to making any investment decisions. See the complete Disclosure in the Risks and Disclosures section of https://b2idigital.com/disclaimer.
