SBIR/STTR Grants & Contracts: A Small Business Perspective

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SBIR/STTR Grants & Contracts: A Small Business Perspective Jeff Brogan, PhD CEO Stony Brook Small Business Development Center Workshop: 29 MAY 2013 Disclaimer: The content and opinions expressed in this briefing are not those of the US Government nor SB-SBDC but solely reflect the views of J.Brogan. DISTRIBUTION A: Authorized for Public Release

Content About MesoScribe Technologies Our technology: Direct Write printing Our experience with the SBIR/STTR program Why we chose this route Our successes Lessons learned Your questions! 2

About MesoScribe Technologies High technology company, founded in 2002 Spin-off from Stony Brook University, 4 exclusive patent licenses Provider of Direct Write products and materials printing services for aerospace, energy, and military markets Formerly located at the Long Island High Technology Incubator at SBU (LIHTI) CORPORATE OFFICE MesoScribe Technologies, Inc. 7 Flowerfield, Suite 28 St. James, NY 11780 MANUFACTURING MesoScribe Technologies, Inc. 5445 Oceanus Drive #108 Huntington Beach, CA 92649 3

MesoPlasma TM Direct Write Processing 3D Printing Technology Direct Write Thermal Spray allows sensors, antennas, and integrated wiring on components or embedded within structures. U.S. Patent No. 6,576,861 Patented hardware and proprietary technology enables fine feature thermal spray deposition, without masking Production-proven, currently used in sensor manufacturing 4

Benefits of Direct Write Fabrication Traditional Electronics Plate all surface with 1 material then remove unwanted material. Direct-Write Electronics - Deposit only the material needed where it is needed. Flat, stiff substrates (occasionally flexible), Limited materials, copper only Requires masking and hazardous etching materials Complex, curved parts of most any material Many material choices (metals, alloys, semiconductors, ceramics) No masking, no etching, and in many cases, no post processing needed 5

Our Products Were Developed with SBIR/STTR Funding Diagnostic Sensors enabling Smart Components Printed onto Parts Temperature Heat Flux Strain Stand-Alone Sensors Copper Wiring Heaters Conformal Antennas Heat Flux 6

Direct Write Instrumentation Sensors are printed onto gas turbine hardware with robotics to ensure placement accuracy and repeatability Feasibility demonstrated through DOE Ph I & II SBIRs Sensors are low profile and monitor part temperature, heat flux, and strain: Support real-time diagnostics Proactive maintenance scheduling Quantitative part life predictions Fault Detection Sensor Validation Classification Integrated Diagnostics Prognosis *Instrumented Siemens Energy blade with sensors Life Prediction State Awareness *NIST ATP Grant Number 70NANB4H3042 7

Siemens MesoScribe JV NIST ATP Award $5.4M Award enabled by our DOE SBIR Funding 8

NASA SBIR Funding: Large Aperture, Flexible Antennas ROLL-TO-ROLL ANTENNA FABRICATION MesoScribe has developed a roll-to-roll deposition process to fabricate antennas onto polymer laminates Kapton, LCP, Tedlar No length limitation Application for space-based L-band, unfurlable antennas, airships, etc. Frequency Selective Surfaces 10 feet long! 9

We transitioned the NASA SBIR funded technology to a completely different application for commercial aircraft DW technology from idea to airplane in under 3 years! MesoScribe provides Direct Write sensors to a major aircraft manufacturer for use on a production aircraft currently approved for delivery to customers Implemented an aerospace quality management system (AS9003) FAA approved manufacturing process Production volume manufacturing, fulfilled > 50 orders to date 10

Our Government Contracting Experience Total of 58 grants and contracts to date, > $18.5M Received 45 SBIR/STTR Awards (28 Ph I and 17 Ph II) Department of Energy Department of Defense (Air Force, Army, Navy, DARPA, MDA) NASA Why didn t we convert all Ph I s into a Ph II? Change in Acquisition Program / Program Office Priorities Federal Funding cuts We were simply beat out by another contractor (technically and commercialization potential) Government Customers & Sponsors 11

Our SBIR/STTR Funding Launched MesoScribe, enabled gradual expansion 500 sf increase per year at LIHTI 1-2 new employees per year We needed time to develop technology, products, & applications Enabled the purchase of laboratory facilities, test equipment, instrumentation, robotics, etc. for 14,000 sf (Direct Costs & on OH) Allows you to retain patent rights (FAR 52.227-11) Provides 4 years of data rights per contract (Ph I, Ph II, each Ph III) No loss of equity, not a loan, nothing to pay back No cost share required Developed our core technology and created specific products Positioned us to attract OEMs/Prime Contractors as partners Enabled us to receive non-sbir follow on funding 12

A Few Tips. Work with a Business Development Center. Understand how you will create a profitable business with your idea. Participate in entrepreneurship boot camps & workshops. Commercialization strategy is critical, even as you develop your Ph I proposal A really good idea doesn t cut it anymore, you need a strategic plan Engage a commercial partner/customer. Minimize your expenses and keep your overhead low. Stretch the cash (we benefited from No Cost Time Extensions) Utilize New York State SPIR resources at SUNY if collaborating. We received >$200k in labor, facility usage, etc. Carefully manage expectations and adoption of required procedures as a government contractor Proper government cost accounting system is needed ASAP from Day 1 You need to be compliant and satisfy DCMA/DCAA regulations but large cookie-cutter plans could suffocate your fledgling business 13

SBIR/STTR awards are a great way to launch a business and to develop new cutting edge technologies. I wish you all success! Contact Information Jeff Brogan, Ph.D. (631) 686-5710 x1 jbrogan@mesoscribe.com 14