CPS Technologies Corporation Announces Phase II Award from the Department of Energy

Rhea-AI Summary

CPS Technologies (NASDAQ:CPSH) has been awarded a $1.1 million Phase II SBIR contract from the U.S. Department of Energy. The 24-month project focuses on developing 'Modular Radiation Shielding for Transportation and Use of Microreactors'. This is CPS's second Phase II SBIR award in 2024, bringing their total SBIR funding to over $3 million in recent years.

The project, led by materials scientist Matthew Karnick, builds on the successful Phase I results, where CPS developed lightweight, modular shielding effective against gamma and neutron radiation. Phase II aims to optimize materials and scale manufacturing processes for commercialization. CPS filed a provisional patent in July 2024 for novel designs developed during Phase I.

Positive

• Secured $1.1 million in funding for a 24-month project
• Second Phase II SBIR award in 2024, demonstrating research success
• Total SBIR funding exceeds $3 million in recent years
• Filed provisional patent for novel radiation shielding designs
• Potential for expanding product portfolio and entering new markets

Negative

• None.

Insights

Financial Analyst

CPS Technologies' $1.1 million Phase II SBIR contract from the Department of Energy is a positive development for the company. This funding, combined with the previous Navy contract, brings their recent SBIR funding to over $3 million. While this amount may not significantly impact the company's immediate financials, it demonstrates growing government interest in CPS's technologies.

The focus on lightweight radiation shielding for microreactors could open up new market opportunities, particularly in the emerging field of small-scale nuclear power. However, investors should note that commercialization is still in early stages. The 24-month timeline for this phase suggests that any substantial revenue impact is likely years away.

The patent application filed in July 2024 adds potential long-term value to CPS's intellectual property portfolio. Overall, this news indicates positive momentum in CPS's R&D efforts, but patience will be required to see tangible financial results.

Technology Analyst

CPS Technologies' advancement in lightweight, modular radiation shielding is a significant technological achievement. The ability to block both gamma and neutron radiation efficiently could be a game-changer for the nuclear industry, particularly in the realm of microreactors.

The collaboration with Curtiss-Wright Nuclear for radiation testing adds credibility to the project. This partnership could accelerate the technology's validation and potential market adoption. The focus on scaling manufacturing processes in Phase II is important for eventual commercialization.

Investors should note that CPS is leveraging existing manufacturing technologies for new applications, which could lead to faster time-to-market and lower development costs. The potential applications in both mobile and stationary settings broaden the technology's market appeal, possibly extending beyond the initial microreactor focus.

NORTON, Mass., Sept. 17, 2024 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced that it has been awarded its second Phase II SBIR contract this year. This award, from the U.S. Department of Energy, will provide funding of $1.1 million over 24 months for CPS to continue its development effort for “Modular Radiation Shielding for Transportation and Use of Microreactors.” The Company’s Phase II effort will again be led by materials scientist Matthew Karnick, who served as the principal investigator during the successful Phase I project.

“For the second time since June, we have received a Phase II SBIR award. This is great recognition for our team, as it acknowledges our ability to develop and deliver novel yet practical solutions in response to well-defined requirements. We are committed to addressing critical customer needs – in this case, lightweight shielding for nuclear radiation,” said Brian Mackey, President & CEO of CPS. “This project will enable us to expand our product portfolio and pursue a broader range of commercial opportunities. In addition, these awards are based on manufacturing technologies already in use at CPS, which we are leveraging to pursue customer applications in new markets. We are very excited about this award and what it means for the future of CPS.”

During Phase I, CPS successfully developed and tested lightweight, modular radiation shielding which can block both gamma and neutron radiation. Phase II will continue this work for two years, with a focus on further optimizing the materials developed in Phase I and scaling manufacturing processes for commercialization. For the Phase II effort, NETCO, a division of Curtiss-Wright Nuclear, will serve as a subcontractor to CPS. Curtiss-Wright has significant experience with radiation shielding, and their scope of work will include planning and executing radiation testing.

CPS filed a provisional patent application in July 2024 which captures the novel designs developed by the Company during Phase I. Commercial opportunities are being explored, with applications that satisfy both mobile and stationary requirements. Along with the Phase II SBIR contract received from the US Navy in June, the Company’s SBIR funding in recent years now exceeds $3 million.

About CPS
CPS is a technology and manufacturing leader in producing high-performance materials solutions for its customers. The company’s products and intellectual property address critical needs in a variety of applications, including electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, Navy ships, the smart electric grid, 5G infrastructure and others. CPS hermetic packages can be found in many Aerospace and Satellite applications.  CPS’ armor products provide exceptional ballistic protection and environmental durability at very light weight. CPS is committed to innovation and to supporting our customers in building solutions for the transition to clean energy.

Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2024 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward-looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.

CPS Technologies Corporation
111 South Worcester Street
Norton, MA 02766
www.cpstechnologysolutions.com

Investor Relations:
Chris Witty
646-438-9385
cwitty@darrowir.com

FAQ

What is the value and duration of CPS Technologies' (CPSH) new Department of Energy contract?

CPS Technologies (CPSH) has been awarded a $1.1 million contract from the Department of Energy, spanning 24 months.

What technology is CPS Technologies (CPSH) developing with the new DOE contract?

CPS Technologies (CPSH) is developing 'Modular Radiation Shielding for Transportation and Use of Microreactors' under the new Department of Energy contract.

How many Phase II SBIR contracts has CPS Technologies (CPSH) received in 2024?

CPS Technologies (CPSH) has received two Phase II SBIR contracts in 2024, one from the Department of Energy and another from the US Navy in June.

What was the outcome of CPS Technologies' (CPSH) Phase I project for radiation shielding?

During Phase I, CPS Technologies (CPSH) successfully developed and tested lightweight, modular radiation shielding capable of blocking both gamma and neutron radiation.