Sedgefield-headquartered Kromek has secured a modification to an existing contract with the Defense Advanced Research Projects Agency (DARPA) which would be worth up to an additional $2.02m (£1.35m).
The initial 12 month contract was awarded in August to develop a portable radiation detection system for the US Department of Defense agency.
During the initial stages of the contract, Kromek developed a new product, the D3S. The modification is for the production of 1,000 D3S detectors at a price of $1,000 (£670) per device.
The funds under the contract modification will also be utilised to continue to develop more products within the coming months.
Arnab Basu, chief executive of Kromek, said: "We are delighted to receive another extension of the current contract from DARPA, which reflects the excellent progress the Kromek team has made.
"That we were selected by an agency of the US government provides validation of our technological strength and capabilities, and demonstrates our leading position in the global markets."