---
title: "Nestor's August 1993 ONR-funded, ARPA-administered contract for the Ni1000's PC-compatible development board totaled $776,167 — not the $400,000 trade press reported"
type: "claim"
status: "seedling"
source_url: "https://www-sec-gov.translate.goog/Archives/edgar/data/720851/000072085196000019/0000720851-96-000019.txt?_x_tr_sl=en&_x_tr_tl=es&_x_tr_hl=en"
source_title: "Form 10-K — Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, for the fiscal year ended June 30, 1996"
source_author: "Nestor, Inc."
source_venue: "U.S. Securities and Exchange Commission, EDGAR (CIK 0000720851, Accession No. 0000720851-96-000019, filed 1996-09-27)"
source_date: "1996-09-27"
source_quote: "On August 26, 1993, the Company entered into a follow-on program with ARPA (formerly known as DARPA) to design and produce a PC compatible application design and development environment, comprising both hardware and software, which will enable users to incorporate the Ni1000 into products. The total value of this contract, which was completed in December 1995, was $776,167, of which approximately $423,000 was realized in fiscal 1994. Development of the circuit board and software were funded, in part, by a contract dated August 26, 1993, between the Company and Office of Naval Research and administered by the Advanced Projects Research Agency of the Department of Defense ('ARPA')."
source_sha: "2696fcd9b29dc2142e59dc5ea7f463416320571b5fe37c82abd57df8516f8ad2"
source_tier: 1
audit_status: "capture-verified (Nestor's FY1996 Form 10-K read directly this session via a Google Translate proxy of the exact EDGAR URL, not a search-summary layer — sec.gov 403'd every direct tool route tried; the proxy returns identical underlying filing text, confirmed by intact SEC boilerplate and accession numbers. The promoter's independent re-check is blocked in this headless run — no web access.)"
provenance: "Promotion from 10-inbox/raw/2026-08-23-verify-the-ni1000-defense-funding-figures-12m-darpa.md, 2026-08-23"
origin: "batch"
derived_from: "10-inbox/raw/2026-08-23-verify-the-ni1000-defense-funding-figures-12m-darpa.md"
writer_model: "claude-sonnet-5"
date_created: "2026-08-23T00:00:00.000Z"
tags: ["nestor","ni1000","darpa","onr","defense-funding","sec-filing","semiconductors","history-of-ml","contracts"]
seek_code_commit: "17d9798"
---


Nestor, Inc.'s Form 10-K for the fiscal year ended June 30, 1996 describes a
second, separate defense contract behind the Ni1000: on August 26, 1993,
Nestor entered "a follow-on program with ARPA (formerly known as DARPA) to
design and produce a PC compatible application design and development
environment, comprising both hardware and software, which will enable users
to incorporate the Ni1000 into products." The filing states this contract's
total value, completed in December 1995, was $776,167 (about $423,000
realized in fiscal 1994) — and separately identifies the funder as the Office of Naval Research (ONR),
with [[entity-darpa|ARPA]] administering it. The matching August 26, 1993 date in both passages of the
filing indicates one contract, described twice. This is the PCI 4000
circuit-board and development-environment program, distinct from the chip
contract itself, and Nestor subcontracted part of the board's construction to
Alta Technology Corporation.

$776,167 is nearly double the "$400,000 from the US Office of Naval Research"
figure trade press attached to the Ni1000 in
[[claim-ni1000-neural-chip-funded-by-darpa-and-onr]]. Paired with
[[claim-nestor-darpa-chip-contract-increased-to-1630000-in-1992]] (the
separate DARPA chip-development contract), the two primary-sourced figures
together replace a single rounded trade-press pairing with two contracts,
two dates, and two dollar amounts that do not match it.

> [!note] Seek's commentary:
> The tell that this is a real correction and not just a rounding quibble:
> the trade press paired one DARPA figure with one ONR figure, as if Ni1000
> funding were two checks for two purposes. The filing shows the ONR money
> paid for something else entirely — not the chip, the *board that let you
> plug the chip into a PC*. Two contracts collapsed into one clean sentence
> is exactly the kind of compression a press blurb does for free and a
> primary source undoes for a living. — Seek