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Applied Energetics Selected for Department of the Air Force Strategic Funding Increase

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Applied Energetics (OTCQB:AERG) announced it has been selected for a Department of the Air Force Strategic Funding Increase (STRATFI) opportunity by AFWERX, with potential funding of up to $4 million and additional potential matching funds of up to $4 million from the Air National Guard.

According to Applied Energetics, STRATFI is designed to help small businesses with recent Phase II contracts scale innovations for operational defense use. The company develops fiber-based ultrashort pulse laser and directed energy systems aimed at defense and dual-use applications.

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Positive

  • Selected for AFWERX STRATFI opportunity with potential funding up to $4 million plus up to $4 million matching from the Air National Guard
  • Access to STRATFI program designed to provide $3 million–$15 million per project to scale innovations for operational defense use

Negative

  • None.

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TUCSON, AZ / ACCESS Newswire / August 18, 2026 / Applied Energetics, Inc. (OTCQB:AERG), a leader in ultrashort pulse laser and directed energy technologies, today announced Applied Energetics has been selected for a Strategic Funding Increase (STRATFI) opportunity by AFWERX, the innovation arm of the Department of the Air Force and a directorate within the Air Force Research Laboratory, with potential funding of up to $4 million and additional potential funding of up to $4 million in matching funding from the sponsor, the Air National Guard. The initiative is open to small businesses with Phase II contracts awarded within the past two years, allowing them to apply for funding through an annual notice of opportunity.

STRATFI helps bridge this gap by providing $3 million to $15 million per project to scale innovations for operational use. By connecting private-sector innovators, defense stakeholders, and investors, STRATFI strengthens the defense industrial base and accelerates the transition of advanced capabilities to the warfighter.

About Applied Energetics

Applied Energetics, Inc. specializes in advanced laser and photonics systems, particularly fiber-based ultrashort pulse (USP) laser technologies. With 26 patents and 2 patents pending, Applied Energetics' proprietary architecture enables orders of magnitude size-weight-power reductions, a key differentiator when compared with traditional continuous wave (CW) laser technology with larger footprints. AE's powerful, dual-use systems are designed for integration and deployment on numerous potential defense platforms for the delivery of high intensity, ultrashort pulses of light to disable or destroy a target. These technologies have applications in both national security and commercial markets. Today, AE's USP optical technologies are being designed to offer flexibility and power for complex missions in national security such as enhancing layered defense strategies to counter complex threats.

For more information about Applied Energetics and its innovative technologies, please visit www.appliedenergetics.com.

About AFRL

The Air Force Research Laboratory is the primary scientific research and development center for the Department of the Air Force. AFRL plays an integral role in leading the discovery, development, and integration of affordable warfighting technologies for our air, space and cyberspace force. With a workforce of more than 12,500 across nine technology areas and 40 other operations across the globe, AFRL provides a diverse portfolio of science and technology ranging from fundamental to advanced research and technology development. For more information, visit afresearchlab.com.

About AFWERX

AFWERX, the innovation arm of the Department of the Air Force and a division within the Air Force Research Laboratory, partners with small businesses, startups and nontraditional vendors to address challenges facing Airmen and Guardians. Headquartered at Wright-Patterson Air Force Base, Ohio, AFWERX strengthens the defense industrial base by expanding access to innovators, building partnerships and accelerating the transition of critical technologies to operational capability. In fiscal year 2025, AFWERX awarded more than 1,000 contracts totaling $1.37 billion and achieved 438 Phase III transitions valued at $8.1 billion. For more information, visit afwerx.com.

Applied Energetics, Inc. Investor information contact:

Kevin McGrath
Managing Director Cameron Associates, Inc.
kevin@cameronassoc.com T: 646-418-7002

Forward Looking Statements

Certain statements in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements that do not relate solely to the historical or current facts and can be identified by the use of forward-looking words such as "may," "believe," "will," "expect," "project," "anticipate," "estimates," "plans," "strategy," "target," "prospects," or "continue," and words of similar meaning. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition and may cause our actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. We do not assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting such forward-looking statements.

SOURCE: Applied Energetics, Inc.



View the original press release on ACCESS Newswire

FAQ

What did Applied Energetics (AERG) announce on August 18, 2026?

Applied Energetics announced its selection for a Department of the Air Force STRATFI opportunity. According to Applied Energetics, this selection opens access to potential funding to scale its ultrashort pulse laser and directed energy technologies for operational defense applications.

How much potential STRATFI funding could Applied Energetics (AERG) receive from AFWERX and the Air National Guard?

Applied Energetics could receive up to $4 million in STRATFI funding and up to $4 million in matching funds. According to Applied Energetics, the Air National Guard is the sponsor that may provide the additional matching funding.

What is the STRATFI program that selected Applied Energetics (AERG) for funding consideration?

STRATFI is a Department of the Air Force program designed to bridge the gap between innovation and operational use. According to Applied Energetics, STRATFI typically provides $3 million to $15 million per project to scale advanced technologies for defense applications.

Why is the AFWERX STRATFI selection important for Applied Energetics (AERG) investors?

The AFWERX STRATFI selection gives Applied Energetics access to pursue significant potential non-dilutive government funding. According to Applied Energetics, this funding could support scaling its ultrashort pulse laser and directed energy systems for national security customers.

What technologies will Applied Energetics (AERG) advance with potential STRATFI funding?

Applied Energetics focuses on fiber-based ultrashort pulse laser and directed energy technologies. According to Applied Energetics, its systems aim to deliver high-intensity, ultrashort light pulses to disable or destroy targets and support complex national security and commercial missions.

Who sponsors Applied Energetics (AERG) in the STRATFI opportunity and what is their role?

The Air National Guard is the sponsor for Applied Energetics in the STRATFI opportunity. According to Applied Energetics, the sponsor may provide up to $4 million in matching funds alongside potential STRATFI funding.