AEgis Technologies ’ SBIR/STTR Success Story Advanced Defense Technology Cluster

1. AEgis Technologies’ SBIR/STTR Success Story Advanced Defense Technology Cluster AEgis Technologies Group SBIR Workshop 20 February 2013 Presented by Steve Hill President & CEO The AEgis Technologies Group, Inc.

2. SBIR/STTR Program Highlights • The United States Government Small Business Innovation Research (SBIR) program, coordinated by the Small Business Administration (SBA), reserves 2.5% of the total extramural research budgets of all federal agencies (with research budgets > $100M) for innovative research contracts to small businesses. • Congress also established the Small Business Technology Transfer (STTR) Program - similar in structure to SBIR and funds cooperative R&D projects with small businesses but requires partnership with not-for profit research institutions (such as universities). • Annually, the SBIR budget represents more than $1 billion in research funds. • 50% of the awards to firms with fewer than 25 people, 33% to firms of fewer than 10, and 20% are minority or women-owned businesses. • Historically, 25% of the companies are first-time winners.

3. Phase I, Phase II, Phase III The SBIR/STTR Programs are structured in three phases. • Phase I (project feasibility) determines the scientific, technical and commercial merit and feasibility of the ideas submitted. • Phase II (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. • Phase III (commercialization) is the ultimate goal of each SBIR/STTR effort and the statute requires that Phase III work be funded by sources outside the SBIR/STTR Program.

4. SBIR/STTR Program Agencies The following agencies offer SBIR/STTR opportunities: • NASA • Department of Agriculture • Department of Commerce • Department of Defense • Department of Education • Department of Energy • Department of Homeland Security • Department of Health and Human Services • Department of Transportation • Environmental Protection Agency • National Science Foundation • National Institutes of Health

5. SBIR/STTR Award Statistics • Historically, about 15% of SBIR and STTR proposals are awarded a Phase I contract; approximately 50% of Phase I projects subsequently are awarded a Phase II contract. • AEgis has received 34 Phase I Awards since 1992. • AEgis has received 18 Phase II Awards, 7 in the last 2 years. • As a start up company, the SBIR/STTR program was critical to AEgis developing our initial corporate capabilities and customer base. Today, it is just as critical as we diversify our capabilities into new areas and leverage those into new markets especially in light of flat or declining DoD budgets. • AEgis’ award rate - higher than the program average.

6. AEgis SBIR/STTR Process • AEgis maintains a formal SBIR/STTR Process from the day topics are released leading to the day of proposal submission. • The goal is to assist all departments to write the most effective SBIR/STTR proposals.

7. AEgis SBIR/STTR Process Key #1 Start early and have disciplined process Key #3 Treat SBIR/STTR bids with same rigor as other important proposals Key #2 Don’t bid without TPOC communication and reasonable level of interest Key #4 Be disciplined about AAR lessons learned

8. AEgis SBIR/STTR Process Key #5 Be just as disciplined about AAR for winning bids as losing bids

9. Commercialization The government expects a company to be able to turn the R&D from a Phase II contract into a commercially viable product. A small business's ability to successfully “commercialize” and sell its products to the private sector (or the military as a “product”) will determine how favorably its Phase II proposals are evaluated in the future. Commercialization Achievement Index:  • This Index is a measure of how effectively commercialization resulting from the proposer's prior phase II SBIR/STTR awards (from 2009 and before) compares with the commercialization resulting from groups of DoD SBIR/STTR projects selected at random from comparable time periods (Commercialization includes both military and private sector markets). The index score is a percentile ranking which ranges from 100 (highest) to 0 (lowest). Its statistical meaning is described in detail at: http://www.DoDSBIR.net/Submission/CompanyCommercialization/Instructions/DefCAI.asp • An Index score is only calculated for proposers that have received at least 4 phase II awards in years up to and including 2009.

10. Current AEgis Commercialization Efforts • AEgis is committed to developing products with a formal commercialization pipeline having two exit strategies: • (1) working with OEMs or transition partners to realize insertion into commercial markets, and • (2) direct insertion into DoD programs and facilities. • AEgis leverages the SBIR program and additional IR&D funding to develop products and transition them to the market place. IP protection is critical. • AEgis is building a dedicated team solely to commercialization and deployment of various technologies most of which are coming out of the SBIR program.

11. Beam Steering Commercialization- MDA - AEgis’ Nanogenesis Division in partnership with Vescent Photonics’ patented technology has designed, built, and successfully tested solid state devices that will lead to miniature, very high-speed, high-reliability, beam steering systems for laser communication, missile interceptor seekers, and laser-assisted sense and avoid for small vehicles such as UAVs.

12. Laser Eye Protection Commercialization- Air Force - AEgis’ Nanogenesis Division has designed, built, and successfully tested Nanophotonic materials that block UV and IR sources yet still provide a high transparency window in the visible spectrum. This patented technology will provide eye protection to war fighters, police, security personnel, commercial airline pilots, and ultimately the public at large from dangerous emerging laser threats.

13. Solar Cell Commercialization- DARPA - DARPA SBIR Phase I and Phase II Contracts for Photonic Band Gap Structures for Solar Energy Generation. Nanogenesis, A Division of AEgis Technologies, is developing thin, flexible solar cells and nanostructured anti-reflection coatings to improve the efficiency of solar cells (>KW/hr), increase sun light collection through large angle of incidence acceptance (i.e. don’t have to face south), and apply solar arrays to flexible/portable substrates and structures (examples: roll up solar mats, imbedded into tents, etc.). Also, this work has lead directly to other projects with large primes on NASA’s “Ride the Light” program and Thermo Electric and Solar Light Applications (TESLA) initiatives.

14. Directed Energy Testing Commercialization- Air Force - Air Force SBIR Phase I and Phase II Awards for both Directed Energy Detection and Characterization Instrumentation (DEDCI) and Measurement of Laser Irradiance on Target for Directed Energy Weapons (LIMT). AEgis’ Nanogenesis Division has designed, built, and successfully tested patented MEMS sensors and Nanomaterials that can withstand direct exposure to a High Energy Laser (HEL) weapons. This technology is packaged with custom electronics to create a test instrumentation suite which allows for DE/HEL testing and characterization previously not possible under such very harsh conditions.

15. Advanced Nanophotonic Concepts– DARPA / Army - • Nonlinear Plasmonics – DARPAOur team is designing and fabricating arrays of sub-wavelength Surface Plasmon (SP) structures in metal films and combining these structures with EO polymers to understand the interaction with the enhanced electric fields of the plasmons. This bleeding edge technology has to potetnial to substantially advance the state-of-the art for optical switching, biodetection, and spectroscopy. • Dynamically Tunable Metamaterials, ArmyCombining nonlinear optical materials with plasmonic structures to create new devices that can be used in photonic circuits, optical computing and solar energy collection.

16. SBIR/STTR Program Managers

17. SBIR/STTR Resources • SBIR Gateway SBIR/STTR Phase I Solicitation Finder www.zyn.com/sbir/scomp.htm • Federal Business Opportunities www.FedBizOpps.gov • SBIR Newsletter Announcements on SBIR workshopsand upcoming solicitations barbara.j.stoller@lmco.com

18. Summary • The SBIR/STTR program can be a tremendous technology advancement tool for the government and your small business. • Substantial information, infrastructure, and many helpful people exist to support your technology pursuits. • Requires a disciplined, systematic approach to be successful. • A small business must take some risk and “be all in” to achieve commercialization success. • Questions? POC data: Steve Hill, President and CEO AEgis Technologies, 256-922-0802, shill@aegistg.com Camille Gardner, Director, Corporate Business & Proposal Development AEgis Technologies, 256-922-0802, cgardner@aegistg.com Georgina Chapman, SBIR/STTR Program Coordinator AEgis Technologies, 256-922-0802, gchapman@aegistg.com