Advanced Photonix Gets $1.8M Project, Investment From Intelligence Agency
Ann Arbor-based Advanced Photonix Inc. Friday announced an agreement in principle with Arlington, Va.-based In-Q-Tel to engineer a low cost terahertz "anomaly detection" device, and deliver multiple systems for evaluation.
IQT, is a non-profit investment firm established in 1999 to work on behalf of United States intelligence agencies. It focuses on on identifying new and emerging commercial technologies that have the potential to advance the intelligence community's mission.
"We are excited to have reached an agreement in principle with IQT to use our technology currently found in the T-Ray 4000 to produce a low cost derivative for the security market," said Richard Kurtz, CEO of API. "With the help of IQT we expect to work with the end users, accelerate the testing and evaluation, and deliver multiple fully functioning systems for evaluation within one year. The fact that the T-Ray platform is being considered for this mission speaks volumes to the performance of our system."
Terahertz radiation, little understood until the 1990s, occupies the part of the electromagnetic spectrum between microwaves and infrared light. It has possible applications in industries like security inspection and medical diagnostics, because the rays can "see" through clothing and into the first few centimeters of human flesh -- but without the damaging effects of higher-wavelength radiation like X-rays.
The T-Ray 4000 produces ultrashort pulses of terahertz light that allow a variety of unique and novel applications to be investigated. The system's patented fiber coupling permits automated or manual positioning of the sensor heads. As a result, users can examine any size object in place, thereby eliminating the need to fit the object into a specialized sample chamber. The excellent signal-to-noise ratio of the T-Ray platform allows even thick samples to be scanned effectively.
This technology development agreement is designed to apply API's terahertz technology to anomaly detection. Delivered in the form of a handheld device or "wand," this technology is intended to detect external objects on the body of a person without the need for imaging or a lengthy physical pat-down procedure, avoiding the associated privacy concerns and time-consuming image review.
"We are pleased to be partnering with API to provide this important technology capability to our customers," said William Strecker, Executive Vice President of Architecture & Engineering and CTO at IQT. "Upon execution, this agreement will allow us to work together with API to adapt the product to fit customer needs."
The proposed $1.8 million development program is designed to advance API's product to accommodate increased anomaly detection needs. The Transportation Security Administration is providing funding to IQT for this development effort.
The agreement in principle includes a royalty agreement that is based on sales to entities other than the U.S. Government of the commercialized anomaly detection device developed under this technology development agreement. The royalty has both a monetary cap and time limit associated with all sales.
Separately, API also announced that it had entered into a Securities Purchase Agreement with IQT pursuant to which API agreed to issue and IQT agreed to purchase approximately 198,524 shares of API's Class A Common Stock at a price of $1.0074 per share. The closing of the SPA is subject to receipt of NYSE Amex approval of an additional listing application covering the shares of Class A Common Stock issued in connection with the SPA and other closing conditions customary for transactions of this nature.
Execution of definitive documentation with respect to the proposed development agreement and royalty agreement is anticipated within the next 10 business days and is subject to NYSE Amex's approval of the Listing Application and the satisfaction or waiver of the closing conditions to the SPA.
More at www.advancedphotonix.com or www.iqt.org.
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