Applied Energetics Inc (OTCQB: AERG) is a defense technology company that develops fiber-based ultrashort pulse (USP) laser and photonics systems for national security and commercial applications. The company generates revenue through government contracts and grants, targeting U.S. Department of Defense agencies and other federal customers with directed energy technologies. As of the 10-K filed March 30, 2026, Applied Energetics holds 25 patents and nine Government Sensitive Patent Applications, with its proprietary fiber-based architecture positioned as a size-weight-power reduction alternative to traditional continuous wave high-energy laser systems. The company is pre-revenue at scale, reporting a net loss of approximately $14,873,000 for the year ended December 31, 2025, up from a net loss of approximately $9,175,000 for the year ended December 31, 2024. Research and development expenses were $1,670,000 for the year ended December 31, 2025. Christopher Donaghey serves as President and CEO. The company is headquartered in the United States and has applied for listing on the Nasdaq Capital Market, with common stock currently trading on the OTCQB.

Revenue model

Government contracts and grants from U.S. federal defense and homeland security agencies. The company submits proposals to DoD and related agencies for directed energy programs. As of FY2025, the company remains in a pre-revenue development stage, recording net losses and funding operations through equity issuances including market offerings, option exercises, and warrant exercises.

Products and services

Fiber-based ultrashort pulse (USP) laser systems designed for counter-ISR and directed energy applications. The proprietary architecture enables wavelength tuning from deep ultraviolet to far infrared and temporal outputs from continuous wave to sub-picosecond pulses. Technologies are designed for dual-use deployment on defense platforms to disable, destroy, or disrupt targets. The company holds 25 patents and nine Government Sensitive Patent Applications as of the filing date.

Customers and end markets

Primary customers are U.S. federal government agencies, including Department of Defense components. End markets include national security directed energy applications such as layered defense and counter-drone systems, as well as potential commercial markets. The company's revenue pipeline is subject to U.S. federal budget cycles, continuing resolutions, and the annual National Defense Authorization Act process.

Value-chain role

Research, development, and system integration of directed energy laser technologies. The company relies on third-party outdoor testing ranges for technology validation and is dependent on key personnel for business execution.

Geographic exposure

United States. Business development activities include engagement with government agencies in Washington, D.C. and at various U.S. government facilities.

Source: SEC 10-K, filed 2026-03-30

Industry: Search, Detection, Navigation, Guidance, Aeronautical Sys Peers: Archer Aviation Inc Cadre Holdings, Inc. Ducommun Inc KAMAN Corp National Presto Industries Inc RTX Corp Satellogic Inc Terran Orbital Corp TRIUMPH GROUP INC