MR. PAUL ARLTON

PresidentLite Machines Company

SBIR / STTR’s What they are

and What they can do for you

Paul ArltonPresident / Senior Engineer

History of Lite MachinesHistory of Lite Machines

Lite Machines 1991Lite Machines 1991 Vertically Integrated CAD/CAM/CNC LMH-100 Over 15,000 sold Over 3,000,000 parts

History of Lite MachinesHistory of Lite Machines Lite Machines 1991Lite Machines 1991

Vertically Integrated CAD/CAM/CNC LMH-100 Over 15,000 sold Over 3,000,000 parts

Lite Machines 1999Lite Machines 1999

History of Lite MachinesHistory of Lite Machines

Lite Machines 1999Lite Machines 1999 Idea for military

Unmanned Aerial Vehicle (UAV)

Applied for Broad Area Announcement (BAA)

Small fish in BIG pond

1 of 15,000 applicants

History of Lite MachinesHistory of Lite Machines

Lite Machines 2004Lite Machines 2004 Refocused on finding

funding for the idea Looked toward

SBIR/STTR for opportunities

Small Business Innovative ResearchSmall Business Innovative Research Small Business Technology TransferSmall Business Technology Transfer

Small tech businesses with < 500 employees Move ideas into the marketplace DOD will fund approx $1.079 billion* in FY 2005

* out of the total $2 billion for all SBIR programs

But what are SBIR/STTR’s?But what are SBIR/STTR’s?

Phase IPhase I 6-9 month contracts $70,000 - $100,000

Phase IIPhase II 2 year contracts $500,000 - $750,000

Phase IIIPhase III Commercializing the idea Must find outside funding Project organizer will often help here

Structure of SBIR/STTR’sStructure of SBIR/STTR’s

Good news / Bad newsGood news / Bad news

ProsPros Money with few strings attached State may provide matching funds Allows small business to compete with big Accelerates development with true R&D dollars Develops University / Government relationships

ConsCons Possible Intellectual Property issues Slow payment Long term commitment Documentation / Paperwork

Where to BeginWhere to Begin

Number of different organizations for SBIRsNumber of different organizations for SBIRs Predominate ones include:

National Science Foundation (NSF) Department of Energy (DOE) Department of Defense (DOD)

Where to BeginWhere to Begin

Search the WWW For DOD:

http://www.dodsbir.net/

What can an SBIR do for you?What can an SBIR do for you?

Start with an idea Identify a need / market Inject capital needed to

move project forward