Check Out the 24 Tech and Biotech Companies That Received $75 Million in NOL Awards

Twenty-four technology and biotechnology companies were approved for inclusion in the state’s Technology Business Tax Certificate Transfer Program, more commonly known as the Net Operating Loss (NOL) Program, the New Jersey Economic Development Authority (NJEDA) announced in October.

Combined, these companies will receive approximately $75 million through the program to fund working capital or research and development (R&D), the maximum total amount available from the program.

Now in its 23rd year, the NOL Program enables participants to sell their New Jersey net-operating-loss and unused-R&D tax credits to unrelated profitable corporations for cash. The NJEDA and the New Jersey Department of Treasury’s Division of Taxation jointly administer the program.

The average award this year was over $3.1 million, which is high compared with the awards given in the early years of the program. According to an NJEDA statement, 36 percent of the program applicants are private businesses, while the remaining 64 percent are publicly traded companies. Two applicants are located in an Opportunity Zone, and three are in an Innovation Zone. Three of the 24 approved companies are participating in the NOL Program for the first time this year, according to the release.

Since the program’s inception, in the late 1990s, more than $1.17 billion in funding has been distributed to over 570 technology and life-science companies.

“One of the many advantages of the NOL Program is that it enables growing companies to obtain cash without sacrificing equity,” stated NJEDA CEO Tim Sullivan in a release. In January 2021, Governor Phil Murphy signed the New Jersey Economic Recovery Act of 2020 (ERA), which increased the program’s annual cap from $60 million to $75 million. It also increased the lifetime cap for individual applicants from $15 million to $20 million. 

“Legislation created under the ERA has been extremely beneficial to New Jersey’s innovation community and to NOL Program participants in particular,” stated NJEDA Chief Economic Transformation Officer Kathleen Coviello in a release. Companies that had previously maxed out of the program are able to participate once again due to the increased cap the Act provides to individual businesses.”

The program also provides major benefits to the profitable companies that are buying the net- operating-loss and unused-R&D tax credits. A profitable company can purchase the tax credits at a discount, based on the market price at the time. These tax credits have traditionally traded somewhere between 88 and 94 cents on the dollar. Once purchased, they can be used to reduce the buyer’s state tax obligation.  

Most of the NOL money this year went to biotech companies, as was the case last year. In previous years, however, it was more evenly divided between the biotech and tech/clean tech sectors.  One of the tech companies taking part is IoTecha, a Cranbury-based clean technology company that has developed an integrated smart charging platform — including hardware, software and cloud-based services — for the electric-vehicle charging infrastructure.

“New Jersey’s transformation to a green economy, combined with our ability to access state resources like the NOL Program, has been extremely beneficial to our company,” said Oleg Logvinov, IoTecha’s president and CEO.  

 Approved CompanyNJ Headquarters or Base of OperationsCountySector / Company Mission
1Acuitive TechnologiesAllendaleBergenThe mission of Acuitive Technologies is to advance the art and science of orthopedic surgery by developing material technologies in combination with unique device designs.
2Advaxis  Monmouth JunctionMiddlesexAdvaxis is a clinical-stage biotechnology company focused on the development and commercialization of proprietary Listeria monocytogenes (Lm)-based antigen delivery products.
3AIM ImmunoTechNew BrunswickMiddlesexAIM ImmunoTech is engaged in the clinical development of new drugs for the treatment of seriously debilitating disorders.
4Angel Medical Systems (AKA AngelMed)EatontownMonmouthAngelMed is a medical device company offering a Class III implantable that detects silent and atypical
symptomatic heart attacks in real time. This is the first such device approved by the Food and Drug Administration (FDA).
5Bellerophon TherapeuticsWarrenSomersetBellerophon Therapeutics is a clinical-stage biotherapeutics company focused on developing therapies for cardiopulmonary diseases.
6Brilliant Light PowerCranburyMiddlesexBrilliant Light Power has developed a new commercially competitive, nonpolluting, plasma-based primary source of massive power from the conversion of hydrogen atoms in water molecules to dark matter, the previously unidentified matter that makes up most of the mass of the universe.
7Caladrius Biosciences (Acquired/merged; now Lisata TherapeuticsBasking RidgeSomersetLisata Therapeutics is a clinical-stage pharmaceutical company dedicated to the discovery, development and commercialization of innovative therapies for the treatment of advanced solid tumors and other major diseases.
8Celsion Corporation (Now Imunon)  LawrencevilleMercerImunon is a fully integrated clinical-stage biotechnology company advancing a portfolio of innovative treatments that harness the body’s natural mechanisms to generate safe, effective and durable responses to a broad array of diseases.
9Citius Pharmaceuticals  CranfordUnionCitius Pharmaceuticals is a late-stage biopharmaceutical company focused on the development and commercialization of first-in-class critical care products, with a pipeline of anti-infectives in oncology, adjunct cancer care, stem cell therapy and unique prescription products.
10CytoSorbents Corporation (DBA CytoSorbents Medical, Inc.)PrincetonMercerCytoSorbents is a leader in critical care immunotherapy. Its CytoSorb is a unique blood-purification therapy. The product is currently approved in the European Union and distributed in 58 countries around the world.
11electroCoreRockawayMorriselectroCore is a commercial-stage bioelectronic medicine company dedicated to improving patient outcomes through its noninvasive vagus nerve-stimulation therapy, initially focused on the treatment of multiple neurological conditions.
12Hepion PharmaceuticalsEdisonMiddlesexHepion is a clinical-stage biopharmaceutical company that’s developing targeted therapies for liver disease.
13IoTechaCranburyMiddlesexIoTecha focuses on the internet of things (IoT) as an enabling technology for the future of transport electrification and power grid modernization.  
14Iveric Bio  ParsippanyMorrisIveric Bio is a biopharmaceutical company that develops treatments for retinal diseases.
15Matinas BioPharma HoldingsBedminsterSomersetMatinas BioPharma is improving the intracellular delivery of important therapeutics.  
16Ocean Power Technologies (also called “OPT”)Monroe TownshipMiddlesexOPT specializes in ocean energy technology.  
17OncoSec MedicalPenningtonMercerOncoSec Medical is a late-stage biotechnology company that is developing immunotherapy cancer treatments.
18Palatin Technologies  CranburyMiddlesexPalatin delivers treatments that harness the healing power of the melanocortin system.
19PDS BiotechnologyFlorham ParkMorrisPDS Biotechnology is a clinical-stage biopharmaceutical company with a growing pipeline of cancer immunotherapies and infectious-disease vaccines.
20Provention BioRed BankMonmouthProvention Bio has a different approach to autoimmune diseases.
21Rafael Holdings  NewarkEssexRafael Holdings is focused on developing novel cancer and immunity therapies.
22Cornerstone Pharmaceuticals (FKA Rafael Pharmaceuticals)CranburyMiddlesexCornerstone addresses significant unmet needs with regard to therapies for rare cancers.
23SoligenixPrincetonMercerSoligenix is a late-stage biopharmaceutical company that develops and commercializes products for treating rare diseases where there is an unmet medical need.
24TrueFort  WeehawkenHudsonTrueFort is the leader in delivering Zero Trust segmentation and workload protection for critical applications.

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