By Rachel Goemaat
TRENTON, NJ. May 1, 2019 – The New Jersey Economic Development Authority (NJEDA) announced today that it has begun accepting applications for the State’s 2019 Technology Business Tax Certificate Transfer Program, better known as the Net Operating Loss or NOL Program.
Average Award Over $1 Million
Through the NOL Program, New Jersey technology and life-sciences companies can apply to sell their net operating losses and / or unused research and development tax credits in exchange for non-dilutive capital.
Applications are being accepted online through June 30, 2019 at http://www.njeda.com/nol.
A Lifeline for Not-Yet Profitable Firms
Heralded as a lifeline for companies that have not yet reached profitability, the capital raised through this program can be used for costs including, but not limited to, the expenses of fixed assets, such as the construction, acquisition and development of real estate, materials, start-up, tenant fit-out, working capital, salaries, and research and development expenditures.
530+ Companies Have Been Approved for $ Billion+ Since 1999
The NJEDA works collaboratively with the New Jersey Department of Treasury’s Division of Taxation to administer the program.
“The NOL Program has played a pivotal role in supporting hundreds of early-stage technology and biotechnology companies in the Garden State over the last two decades,” NJEDA Chief Executive Officer Tim Sullivan said.
NJ Aims to be the State of Innovation
“As we continue to make New Jersey into the State of Innovation, we encourage entrepreneurs to explore how this critical program can help sustain their businesses while they work toward profitability.”
Over 530 companies have been approved for more than $1 billion in awards through the NOL Program since its inception in 1999. Last year alone, 49 companies were approved to share $60 million through the program.
90 Percent of Applicants Successfully Receive Funding on Average, They Receive Funding in 6-8 Months of June 30 Deadline
The NOL Program offers numerous benefits to its participants, including:
- The funding is non-dilutive, meaning that entrepreneurs do not have to give up equity in their companies to receive the money;
- Emerging companies can use the funding they receive as working capital, and the businesses to which they sell are able to lower their tax burden;
- The average historical award is over $1 million;
- Nearly 90 percent of applicants successfully receive funding;
- On average, funding is received within six to eight months of the application deadline (June 30th).
13 Companies Participated in NOL Program for First Time in 2018
Biotechnology company SCYNEXIS is nearing its goal of commercializing Ibrexafungerp, a novel therapy designed to treat patients with difficult-to-treat and often life-threatening hospital-based invasive fungal infections, and women with vaginal yeast infections. SCYNEXIS has more than quadrupled its staff – from six to 25 – since moving from North Carolina to New Jersey in 2015 to benefit from the Garden State’s talented workforce.
“We’re ramping up Phase 3 trials of Ibrexafungerp and anticipate submitting our first New Drug Application in the second half of 2020,” SCYNEXIS Chief Executive Officer Marco Taglietti said. “Funding we received through the NOL Program this past year will bolster our cash flow as we work toward that critical point.”
Radius8 is a technology company that offers retailers real-time visibility into what is happening in proximity to their customers and stores. The company’s cloud-based software enables the company’s clients to leverage their brick and mortar stores to increase foot traffic, e-commerce conversion, and store productivity.
“We have found tremendous value in the NOL Program,” Radius8 Co-founder & CEO Sandeep Bhanote said. “Thanks to the funding received, we’ve been able to continue building out our platform and help even more clients provide their customers with a unique shopping experience.”
CorMedix Inc. is a biopharmaceutical company focused on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory diseases.
The company is focused on developing its lead product Neutrolin®, a novel, non-antibiotic antimicrobial solution designed to prevent costly and dangerous bloodstream infections associated with the use of central venous catheters, currently in Phase 3 development for patients undergoing chronic hemodialysis.
Neutrolin is already marketed as a CE Marked product in Europe and other territories. In parallel, CorMedix is leveraging its taurolidine technology to develop a pipeline of antimicrobial medical devices, with active programs in surgical sutures and meshes and topical hydrogels.
“The cash from the NOL program bolsters our cash runway as we continue to move our Neutrolin development program forward,” said CorMedix CEO Khoso Baluch. “We are grateful for the NJEDA program.”
To participate in this year’s NOL Program, companies must apply online by June 30, 2019. To sell net operating losses or R&D tax credits generated through 2018, companies must file their corporate business tax returns with the NJ Division of Taxation by June 30, 2019. Applicants can expect to hear by the end of August if their applications are approved.
For more information on the NOL Program, including frequently asked questions, a complete list of eligibility requirements, and program details, please visit http://www.njeda.com/nol. Questions about the NOL program may be submitted to [email protected].