Dynasil Corporation of America primarily engages in the development, marketing and manufacture of detection, sensing and analysis technology and optical components, as well as contract research.
The company’s products and services are used in a range of application markets, including the homeland security, industrial and medical markets sectors. The products and services are sold in the United States (U.S.) and internationally.
Segments
The company operates through three segments: Optics, Inn...
Dynasil Corporation of America primarily engages in the development, marketing and manufacture of detection, sensing and analysis technology and optical components, as well as contract research.
The company’s products and services are used in a range of application markets, including the homeland security, industrial and medical markets sectors. The products and services are sold in the United States (U.S.) and internationally.
Segments
The company operates through three segments: Optics, Innovation and Development, and Biomedical.
Optics segment
This segment includes four business units – Dynasil Fused Silica, Evaporated Metal Films, Hilger Crystals, and Optometrics – that manufacture commercial products, including optical crystals for sensing in the security and medical imaging markets, as well as optical components, optical coatings and optical materials for scientific instrumentation and other applications.
Optical Technology
The company engages in the production of optical materials, components and coatings for various applications in the medical, industrial, and homeland security/defense sectors. This segment supplies synthetic crystals, optical materials, components, and coatings that are used in devices, such as baggage scanners, medical imaging systems, optical instruments, lasers, analytical instruments, automotive components, semiconductor/electronic devices, spacecraft/aircraft components and advertising displays. These products are offered through four business units (Dynasil Fused Silica, Optometrics, Hilger and evaporated metal films corporation). The company competes for business with fabricators of industrial optical materials, other optical components manufacturers, other optical crystal manufacturers and other optical coaters, as well as other analytical instruments manufacturers and synthetic crystal manufacturers. The company’s products are distributed through a direct sales and marketing staff of ten people and through other channels, including manufacturer’s representatives and distributors in various foreign countries for international sales and U.S. manufacturers’ representatives for certain product lines.
Innovation and Development
This segment consists of the Radiation Monitoring Devices, Inc. (RMD) business unit, a small business participant in U.S. government-funded research.
This segment emphasizes the new technology that is being developed at this segment’s business unit, RMD, particularly in the fields material science, radiation detection, digital imaging technology, magnetic imaging, laser optics and photonics. Using their expertise in these fields, the team at RMD develops technology in materials, sensors and prototype instruments that detect or measure radiation, light, magnetism or sound for use in security, medical and industrial applications. RMD is a small business participants in U.S. government-funded research, performing research and development activities for government agencies, including Department of Energy, Department of Defense, Department of Homeland Security, Domestic Nuclear Detection Office, National Institutes of Health and NASA. RMD conducts government research under the auspices of the Small Business Innovation Research (SBIR) program. In recent years, RMD has augmented its SBIR research with larger, competitively bid government research and development contracts. RMD also provides research for non-governmental entities in areas where it has the appropriate expertise.
Biomedical
This segment consists of a single business unit, Dynasil Biomedical Corporation (Dynasil Biomedical), a medical technology incubator, which owns rights to certain early stage medical technologies. In 2013, Dynasil Biomedical formed Xcede Technologies, Inc. (Xcede), a joint venture with Mayo Clinic, to spin out and separately fund the development of a tissue sealant technology. As of September 2019, Dynasil Biomedical owned approximately 63% of the outstanding common and preferred stock of Xcede.
Xcede's first product under development is a hemostatic patch to be used when conventional techniques are inadequate or impractical to stop bleeding (hemostasis). Dynasil Biomedical owns rights to the underlying tissue sealant technology as part of a transaction with a former hematologist at the Mayo Clinic.
Strategy
The company’s business strategy focuses on combining its expertise in funded research, product development and technology innovation to commercialize detection and analysis equipment for the homeland security, industrial and medical markets. The company is executing on this strategy by developing and expanding its research portfolio; seeking to commercialize the technologies coming from its Innovation and Development segment; growing organically through investment in existing businesses; and identifying and investing in those technologies with the greatest revenue and growth potential in the market.
Customers
The company has approximately 500 customers, with approximately 50% of its business concentrated in its major 10 customers. The company’s three major customers are agencies and agents of the Federal government and accounted for approximately 14%, 8%, and 6%, respectively, of its revenues during 2019.
Research and Development
The company’s research and development included within cost of revenue for the year ended September 30, 2019 was $12.4 million. Research and development for the company’s other businesses totaled $0.6 million in year 2019.
Intellectual Property
From October 2018 through September 2019, the company had been granted four new U.S. patents and had filed 7 new patent applications. The company’s portfolio, company-wide, is 79 issued and 39 pending applications, the largest percentage of which are issued to RMD.
Government Regulation
The company’s Innovation and Development segment is subject to the rules and regulations applicable to government contracting, including: the Federal Acquisition Regulation and supplements, which regulate the formation, administration and performance of U.S. Government contracts; the Truth in Negotiations Act, which requires certification and disclosure of cost and pricing data in connection with certain contract negotiations; the Procurement Integrity Act, which regulates access to competitor bids and proposal information and government source selection information, and its ability to provide compensation to certain former government officials; the Civil False Claims Act, which provides for substantial civil penalties for violations, including for submission of a false or fraudulent claim to the U.S. Government for payment or approval; and the U.S. Government Cost Accounting Standards, which impose accounting requirements that govern its right to reimbursement under certain cost-based U.S. Government contracts. The tissue sealant being developed by Xcede, the company’s joint venture with Mayo Clinic, is subject to FDA regulations and approval in the U.S. and requires CE marking and other regulatory agency approval in other countries worldwide.
History
Dynasil Corporation of America was founded as a New Jersey corporation in 1960.
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