In October 2004, SpaceDev was awarded about $1.5 million to proceed with Phase 2 of its SBIR contract from the AFRL to continue its hybrid rocket motor-based small launch vehicle project. The company was presently in the fabrication phase of the first test article for this upper-stage hybrid propulsion system. Hybrid motors of the 1.1-million-newton thrust class were being studied for possible use on current and future launch vehicles. Funding for the hybrid team came from the DoD Technology Reinvestment Program, NASA monetary and in-kind support, and contributions of industry team members.