Texas Patent of the Month – January 2026

Strategic Overview: A New Era in Analytical Instrumentation

The issuance of U.S. Patent No. 12,535,408, titled “Spectroscopy systems and methods for analyzing liquids at vacuum ultraviolet (VUV) wavelengths,” represents a seminal moment in the history of analytical chemistry. Applied for on April 16, 2024, and formally awarded to VUV Analytics, Inc., this intellectual property has been distinguished as the “Texas Patent of the Month” by Swanson Reed, a global leader in Research and Development (R&D) tax advisory services. This prestigious accolade was not bestowed arbitrarily; rather, it was the result of a rigorous selection process utilizing advanced Artificial Intelligence (AI) algorithms capable of sifting through over 1,000 potential candidates to identify innovations with the highest degree of technical merit and economic potential.

The selection of Patent 12,535,408 highlights a critical shift in the landscape of industrial innovation. While the modern patent ecosystem is often flooded with software increments and business method protectables, this patent distinguishes itself through its grounding in “hard science”—specifically, the complex intersection of optical physics, fluid dynamics, and spectral analysis. The Swanson Reed AI selection methodology prioritizes such patents because they demonstrate tangible “real-world impact,” a criterion that Patent 12,535,408 meets by addressing a decades-old limitation in liquid chromatography: the inability to universally detect and identify chemical compounds without the prohibitive complexity of mass spectrometry.

This report provides an exhaustive, expert-level analysis of the invention, benchmarking its capabilities against incumbent technologies such as High-Performance Liquid Chromatography with Ultraviolet (HPLC-UV) detection and Liquid Chromatography-Mass Spectrometry (LC-MS). It explores the profound market implications of the technology, which promises to revolutionize sectors ranging from pharmaceutical quality control to environmental safety. Furthermore, the report serves as a detailed case study for the R&D Tax Credit, illustrating how the development of such breakthrough technology satisfies the statutory Four-Part Test and how specialized firms like Swanson Reed leverage proprietary platforms like TaxTrex to secure vital financial incentives for innovators.

---

Patent Profile and the AI Selection Methodology

The Specifics of U.S. Patent 12,535,408

The patent in question, U.S. Patent No. 12,535,408, was issued to VUV Analytics, Inc., a technology company based in Cedar Park, Texas, known for pioneering the use of Vacuum Ultraviolet (VUV) spectroscopy in gas chromatography (GC-VUV). The inventors, Dale A. Harrison and Anthony T. Hayes, are recognized figures in the field of optical instrumentation, having previously contributed to the development of the VGA-100, the world’s first VUV detector for gas chromatography.

• Patent Number: 12,535,408
• Application Date: April 16, 2024
• Title: Spectroscopy systems and methods for analyzing liquids at vacuum ultraviolet (VUV) wavelengths
• Assignee: VUV Analytics, Inc.
• Primary Classification: G01N 21/33 (Investigating or analyzing materials by the use of optical means, specifically ultraviolet light).

The core technical achievement described in the patent is the successful adaptation of VUV spectroscopy—historically limited to gas phase analysis due to the strong absorption of VUV light by liquids and atmospheric gases—to Liquid Chromatography (LC). This required overcoming the “water wall,” the phenomenon where the mobile phase solvents used in LC (such as water, methanol, or acetonitrile) absorb virtually all light in the VUV region (120–240 nm), theoretically blinding the detector. The patent outlines systems, likely involving ultra-short path length flow cells and sophisticated background subtraction algorithms, that render the mobile phase transparent, allowing for the detection of the solute (analyte) with unprecedented clarity.

The “Texas Patent of the Month” Designation

The designation of “Texas Patent of the Month” is more than a ceremonial title; it is a data-driven validation of the patent’s commercial and technical viability. Swanson Reed, the sponsor of the award, utilizes a proprietary AI-driven platform to analyze the thousands of patents issued by the United States Patent and Trademark Office (USPTO) each month.

The Selection Criteria:

Out of a pool of over 1,000 potential patents issued to Texas-based entities in the relevant period, the AI selected Patent 12,535,408 based on specific weighted metrics:

1. Technological Complexity (The “Hard Science” Factor): The AI algorithm is trained to distinguish between derivative improvements and fundamental engineering breakthroughs. The physics involved in transmitting 120 nm photons through a liquid medium without total signal attenuation represents a high-order engineering challenge. The patent’s classification (G01N 21/33) and its citation network suggest a foundational technology rather than an incremental tweak.
2. Economic Disruption Potential: The AI evaluates the size of the market the patent addresses. The global liquid chromatography market is valued in the billions of dollars, dominated by technologies (UV/Vis and MS) that have established weaknesses. A technology that claims “universal detection” (like Refractive Index) with “spectral identification” (like Mass Spec) and “ease of use” (like UV) scores highly on disruption indices.
3. Real-World Impact: Unlike abstract software patents that may never see deployment, this patent describes a physical apparatus—the Hydra™ detector—that has immediate applications in ensuring the safety of medicines (detecting impurities), the purity of water (detecting non-chromophoric toxins), and the efficiency of fuel production.

---

The Technological Landscape: Why Innovation Was Needed

To understand why Patent 12,535,408 is superior, one must first understand the limitations of the incumbents. Liquid chromatography is the backbone of the analytical testing industry, used to separate complex mixtures into individual components. However, separation is useless if the components cannot be detected and identified.

The Limitations of Current Detectors

1. UV/Vis and Photodiode Array (PDA) Detectors:

These are the workhorses of the industry. They function by shining ultraviolet light (typically 190–400 nm) through the sample.

• The Limitation: They rely on the presence of a chromophore—a specific arrangement of electrons (usually double bonds or aromatic rings) that absorbs light in this range.
• The Consequence: Millions of chemical compounds—including sugars, lipids, amino acids, surfactants, and many synthetic polymers—lack strong chromophores. They are effectively “invisible” to UV detectors. Furthermore, the solvents used to push the sample through the column often have a “UV Cutoff” (e.g., 205 nm for methanol), below which the solvent absorbs all the light, creating a massive blind spot in the lower UV range where many compounds do absorb.

2. Mass Spectrometry (LC-MS):

Mass spectrometry measures the mass-to-charge ratio of ions. It is highly sensitive and selective.

• The Limitation:
• Ionization Suppression: In complex mixtures, one compound can “steal” the charge from another, causing the second compound to disappear from the results completely.
• Isomer Blindness: Structural isomers (molecules with the same atoms arranged differently) often have the exact same mass and fragmentation pattern. LC-MS often cannot tell them apart.
• Complexity and Cost: LC-MS systems are expensive to purchase ($100k+), require high vacuum, consume large amounts of electricity and nitrogen, and require highly skilled operators.

3. Refractive Index (RI) and Evaporative Light Scattering (ELSD):

These are “universal” detectors, meaning they can detect almost anything.

• The Limitation: They provide no identification. They can tell you that something is there, but not what it is. They are also notoriously chemically unstable, sensitive to temperature changes, and often incompatible with “gradient elution” (changing the solvent mix during the run), which limits them to very simple analyses.

The Superiority of VUV Spectroscopy (The Patent’s Innovation)

The technology described in Patent 12,535,408 utilizes the Vacuum Ultraviolet (VUV) spectrum (120–240 nm). This region of the electromagnetic spectrum offers unique physical properties that solve the problems listed above.

1. True Universality (The “No Blind Spots” Advantage):

In the VUV range, specifically between 120 nm and 185 nm, all chemical matter absorbs light. This is due to the excitation of sigma (σ) to sigma-star (σ*) electronic transitions, which are present in all single bonds (C-H, C-C).

• Superiority: Unlike UV/Vis, which requires a specific chromophore, VUV detection is universal. It sees the sugars, the lipids, and the surfactants that UV misses. Unlike RI, it provides a spectrum, not just a blip. Unlike MS, it does not rely on ionization, so there is no ionization suppression.

2. Spectral Fingerprinting (The Identification Advantage):

Every molecule has a unique absorbance signature in the VUV range. While UV spectra are often broad and featureless (like a single hump), VUV spectra are rich with features (peaks and valleys) corresponding to specific electronic transitions.

• Superiority: This allows the Hydra detector to distinguish between isomers. For example, in drug synthesis, the “left-handed” version of a molecule might be a cure, while the “right-handed” version is a toxin. These often look identical to MS and UV. To VUV, they look different. This capability, previously proven in gas chromatography (GC-VUV), is now available for liquids.

3. Deconvolution (The Mathematical Engine):

The patent describes a system that collects data across multiple wavelength bands (likely 12 distinct channels, as seen in the commercial Hydra specs).

• Superiority: This allows for mathematical separation of co-eluting peaks. If two compounds exit the column at the same time, a single-wavelength UV detector sees one blob. The VUV detector sees two distinct spectra superimposed and can mathematically separate them to quantify both accurately. This can significantly speed up analysis times by allowing for “compressed” chromatography.

---

Benchmarking Comparison

The following analysis benchmarks the VUV technology (Patent 12,535,408) against its primary competitors across critical performance metrics.

Comparison Matrix

Feature	VUV (Patent 12,535,408)	UV-Vis / PDA	LC-MS (Mass Spec)	Refractive Index (RI)
Detection Principle	Absorption (120-240 nm)	Absorption (190-800 nm)	Mass-to-Charge Ratio	Refractive Index Change
Universality	Excellent: All molecules absorb σ→σ* or π→π*.	Poor: Requires chromophores.	Variable: Depends on ionization chemistry.	Good: Universal response.
Identification	High: Unique spectral fingerprints.	Medium: Spectra often non-specific.	Very High: Molecular weight + fragments.	None: No qualitative data.
Sensitivity	High: Similar to UV, improved by universality.	High: For strong chromophores.	Very High: Picogram levels.	Low: Requires high concentration.
Isomer Resolution	Excellent: Distinct spectra for structural isomers.	Poor: Isomers often identical.	Medium: Isomers often identical mass.	N/A
Solvent Compatibility	High: Patent enables subtraction of background.	Medium: Solvent cutoffs blind detection <200nm.	High: Requires volatile MS-grade solvents.	Low: No gradients allowed.
Ease of Use	Plug-and-Play: Connects like optical detector.	Simple: Standard lab equipment.	Complex: High vacuum, specialized training.	Medium: Temperature sensitive.
Cost	Moderate: Lower than MS, higher than simple UV.	Low: Commodity pricing.	High: Capital and operational expense.	Low: Commodity pricing.

Detailed Benchmarking Discussion

Benchmarking vs. HPLC-UV: The primary benchmark for the Hydra detector is the standard PDA. In a head-to-head comparison analyzing a pharmaceutical formulation containing an active ingredient (with a chromophore) and a surfactant excipient (without a chromophore), the PDA will detect the active ingredient but completely miss the surfactant. The VUV detector will see both. Furthermore, if the active ingredient degrades into a breakdown product that loses its chromophore, the PDA would incorrectly report the sample as pure. The VUV detector would reveal the degradation, preventing the release of a sub-standard drug. Superiority: VUV provides the reliability of a universal detector with the familiarity of an optical detector.

Benchmarking vs. LC-MS: LC-MS is the gold standard for sensitivity, but it is plagued by “matrix effects.” In environmental analysis of dirty water samples, salts and other contaminants can suppress the ionization of the target pollutant (e.g., pesticides). An analyst using LC-MS might report “Not Detected” when the pesticide is actually present, simply because it didn’t ionize. VUV detection is based on photon absorption, which is an intrinsic property of the molecule and is not suppressed by the presence of salts. Superiority: VUV offers robust quantitation in dirty matrices where MS fails due to suppression.

---

Real-World Impact and Future Potentials

The “real-world impact” cited by the Texas Patent of the Month award is not theoretical; it addresses immediate needs in critical industries.

Pharmaceutical Manufacturing: The Safety Imperative

The pharmaceutical industry is under constant pressure from regulatory bodies (FDA, EMA) to account for every component in a drug product. This includes the API, impurities, degradation products, and excipients.

• Current Impact: The technology allows for a “single-detector” solution for release testing. Instead of running a sample once on a UV system for the API and again on an RI system for the excipients (which is time-consuming and introduces error), manufacturers can run a single VUV method.
• Future Potential: As the industry shifts towards “Continuous Manufacturing” (making drugs in a continuous stream rather than batches), real-time monitoring is essential. The VUV detector’s speed and universality make it an ideal sensor for real-time release testing (RTRT) on the manufacturing floor, potentially saving billions in scrapped batches and recall costs.

Environmental Protection: The PFAS Challenge

Per- and polyfluoroalkyl substances (PFAS) are known as “forever chemicals” due to their persistence in the environment. Detecting them is difficult.

• Current Impact: Current methods rely heavily on LC-MS/MS, which is expensive and capacity-constrained. Many labs cannot afford the equipment to handle the volume of testing required by new EPA regulations.
• Future Potential: VUV spectroscopy offers a lower-cost, high-throughput alternative for screening water samples. Because C-F bonds have distinct absorbances in the VUV range, the technology could potentially be deployed in mobile labs or municipal water treatment plants for continuous monitoring, democratizing access to environmental safety data.

The Petrochemical Pivot

VUV Analytics built its reputation in the petrochemical sector with Gas Chromatography (GC-VUV) for analyzing gasoline and jet fuel (ASTM D8071, D8267).

• Current Impact: There is a “heavy end” of the barrel—crude oil, lubricants, and polymers—that cannot be analyzed by GC because they do not vaporize without decomposing.
• Future Potential: Patent 12,535,408 opens this entire market to VUV analysis. The ability to characterize the “heavy” fractions of petroleum using Liquid Chromatography with VUV detection (LC-VUV) allows refineries to optimize the processing of heavier crudes, which is essential as light sweet crude reserves diminish. This leads to more efficient fuel production and lower emissions per barrel processed.

---

Utilizing the R&D Tax Credit: A Guide for Innovators

The development of Patent 12,535,408 serves as a prime example of the type of innovation the Research and Development (R&D) Tax Credit was designed to support. Under Internal Revenue Code (IRC) Section 41, companies that invest in developing new or improved products may be eligible for a substantial credit against their federal tax liability.

Swanson Reed, a specialist R&D tax advisory firm, helps companies navigate the complexities of this claim. The following analysis details how a project utilizing the technology described in Patent 12,535,408 would meet the statutory Four-Part Test, the gatekeeper for eligibility.

The Four-Part Test Methodology

To qualify as “Qualified Research,” an activity must satisfy all four of the following criteria simultaneously.

Part 1: Permitted Purpose (The “Why”)

The Requirement: The research must intend to create a new or improved business component (product, process, software, technique, formula, or invention) with regards to functionality, performance, reliability, or quality.

• Application to Patent 12,535,408: The “business component” is the Hydra™ VUV Liquid Flow Cell and Detector System. The “permitted purpose” was to improve the functionality of liquid chromatography detection (adding universal detection capabilities) and the quality of the data (providing spectral identification) compared to existing UV detectors.
• Swanson Reed Insight: Swanson Reed emphasizes that the success of the project is not required. Even if the VUV detector had failed to meet its sensitivity targets, the attempt would still qualify under Permitted Purpose, provided the intent was improvement.

Part 2: Technological in Nature (The “How”)

The Requirement: The activity must fundamentally rely on principles of the physical or biological sciences, engineering, or computer science.

• Application to Patent 12,535,408: The development of this patent was deeply rooted in the “hard sciences”:
• Optical Physics: Calculating photon flux and absorption cross-sections at 120–240 nm.
• Fluid Engineering: Designing micro-fluidic channels that can withstand HPLC pressures (up to 15,000 psi) while maintaining an optical path length of mere nanometers to prevent solvent saturation.
• Computer Science: Developing the algorithms (deconvolution and background subtraction) required to process the raw spectral data.
• Swanson Reed Insight: Activities based on “soft sciences” like market research, consumer preference testing, or aesthetic industrial design are strictly excluded. Swanson Reed’s technical reviews ensure these non-qualified costs are segregated.

Part 3: Elimination of Uncertainty (The “Unknown”)

The Requirement: At the outset of the project, there must be uncertainty concerning the capability to develop the component, the method of development, or the appropriate design of the component.

• Application to Patent 12,535,408:
• Capability Uncertainty: “Is it physically possible to detect trace analytes in a liquid stream when the solvent itself absorbs 99.9% of the VUV light?” This was the fundamental risk of the project.
• Design Uncertainty: “What is the optimal window material? Fused silica absorbs below 170 nm; Magnesium Fluoride is brittle. How do we seal the windows to the metal body without leaking at high pressure?”
• Methodological Uncertainty: “How do we subtract the solvent background dynamically when the solvent composition changes during a gradient run?”
• Swanson Reed Insight: The mere existence of a technical challenge is not enough; it must be documented. The patent claims themselves serve as excellent proof of the uncertainties faced and resolved.

Part 4: Process of Experimentation (The “Method”)

The Requirement: Substantially all (at least 80%) of the activities must constitute a process of experimentation. This involves identifying the uncertainty, identifying one or more alternatives, and evaluating those alternatives through modeling, simulation, or systematic trial and error.

• Application to Patent 12,535,408:
• Hypothesis: “We hypothesize that a path length of X nanometers will allow sufficient light transmission.”
• Testing: Building prototype flow cells with path lengths X, Y, and Z.
• Analysis: Testing these prototypes with standard solvents (methanol, acetonitrile) and observing the signal-to-noise ratio.
• Refinement: Discovering that path length X is too short (low sensitivity) and Z is too long (signal saturation), leading to the design of optimal path length Y.
• Iteration: The iterative refinement of the background subtraction software code also qualifies as experimentation.
• Swanson Reed Insight: This is often the hardest test to document retrospectively. A simple “trial and error” is insufficient; it must be a “scientific method” approach. The rigorous testing data required for the patent application aligns perfectly with this requirement.

How Swanson Reed Facilitates the Claim

Claiming the R&D credit is a high-stakes endeavor; the IRS frequently audits these claims. Swanson Reed utilizes a unique combination of technology and specialized human expertise to ensure claims are defensible.

1. TaxTrex: The AI Advantage

Swanson Reed employs TaxTrex, a proprietary AI-driven platform.

• Function: TaxTrex integrates with a company’s project management and financial software (like Jira or QuickBooks). It uses natural language processing (NLP) to scan project descriptions for keywords related to the Four-Part Test (e.g., “testing,” “prototype,” “failure,” “algorithm”).
• Benefit: For a project like the Hydra detector, TaxTrex would automatically identify the engineering hours spent on “Flow Cell Design Iteration 3” as a Qualified Research Expense (QRE), separating it from the marketing hours spent on “Product Launch Strategy” (non-qualified). This automation ensures that the “nexus” between the expense and the eligible activity is established in real-time, creating a robust audit trail.

2. The Six-Eye Review Process

While AI is powerful, human oversight is mandatory for compliance. Swanson Reed subjects every claim to a “Six-Eye Review”:

• Pair 1 (Qualified Engineer/Scientist): A subject matter expert reviews the technical narrative. For Patent 12,535,408, a chemist or engineer would verify that the activities described were indeed “processes of experimentation” and not just routine data collection.
• Pair 2 (Tax Attorney): A legal expert reviews the claim for adherence to current case law (e.g., the Little Sandy Coal decision regarding prototype costs). They ensure that “funded research” (research paid for by a third party without retaining rights) is excluded.
• Pair 3 (CPA/Tax Agent): A financial expert calculates the QREs, applies the appropriate calculation method (Regular Method vs. Alternative Simplified Credit), and ensures the numbers reconcile with the tax return.

3. Audit Defense & Consistency The patent application date (April 16, 2024) is a critical data point. The IRS requires consistency in how R&D costs are treated over time. Swanson Reed uses the patent timeline to clearly delineate the “development phase” (eligible for credit) from the “commercial production phase” (ineligible). Once the patent is granted and the design is frozen for mass manufacturing, the “uncertainty” is technically eliminated, and subsequent costs are generally not eligible. Correctly identifying this “cutoff point” is crucial for audit defense.

Financial Implications

For a high-tech hardware startup like VUV Analytics, the R&D tax credit is a lifeline. It is not a deduction; it is a dollar-for-dollar credit against taxes owed.

• Payroll Tax Offset: Startups with less than $5 million in gross receipts can apply up to $500,000 of the credit against their payroll taxes (FICA). This means the company receives cash back even if it is not yet profitable—capital that can be reinvested into the next patent.
• State Credits: In addition to the federal credit, Texas offers its own R&D incentives. A “Texas Patent of the Month” winner would likely be well-positioned to claim these state-level benefits as well, further leveraging their innovation for financial growth.

---

Final Thoughts

The selection of U.S. Patent 12,535,408 as the Texas Patent of the Month is a recognition of the vital role that “hard science” innovation plays in the modern economy. By successfully harnessing the power of Vacuum Ultraviolet spectroscopy for liquid analysis, VUV Analytics has not only solved a complex physics problem but has also opened new doors for the pharmaceutical, environmental, and energy sectors.

The “Hydra” detector technology exemplifies the spirit of the R&D Tax Credit: a high-risk, high-reward technical endeavor that pushes the boundaries of what is known. Through the rigorous application of the Four-Part Test and the strategic guidance of firms like Swanson Reed, such innovations are not just technical victories—they are financially sustainable strategies that ensure the continued leadership of American technology in the global marketplace. As industries increasingly demand universal, high-resolution data to meet safety and quality standards, the impact of Patent 12,535,408 will likely be felt for decades to come.