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34 Innovative Companies Awarded $68M Through NJEDA’s NOL Program

Thirty-four technology and life sciences companies were awarded more than $68 million through the 2023 Technology Business Tax Certificate Transfer Program, commonly known as the Net Operating Loss (NOL) program, the New Jersey Economic Development Authority (NJEDA) has announced. The NOL program allows early-stage technology and life sciences companies in the state to sell a percentage of their net operating losses and unused research and development (R&D) tax credits to unrelated profitable corporations for cash.

“The NOL Program has been hailed for decades as a lifeline for emerging companies that have yet to reach profitability,” said NJEDA Chief Executive Officer Tim Sullivan. “Since its inception over 25 years ago, over 580 companies have been approved to sell their net operating losses, totaling more than $1.95 billion in awards. As start-ups continue to grow in the Garden State, the NOL Program ensures emerging companies have access to the capital they need to succeed, furthering New Jersey’s legacy as a leader in innovation.”

Up to $75 million in funding is available annually under the NOL program, with $15 million set aside for businesses located in the state’s three Innovation Zones of Newark, Camden, and the Greater New Brunswick area, businesses within Opportunity Zones, or certified minority or woman-owned businesses. Participants can use the capital raised through the NOL Program to help cover allowable costs incurred in connection with operating their businesses such as salaries, R&D, and other working capital expenditures.

The NJEDA opened applications for the 2024 NOL program on May 1st, and the application will close at 11:59 p.m. on Sunday, June 30th. For more information on program eligibility and application requirements, visit http://www.njeda.gov/nol.

Among the companies approved for awards under the program in 2023 include:

Imunon, a life sciences company based in Lawrence Township, Mercer County, creates proprietary immunology and DNA-based technology for difficult-to-treat conditions, creating medicines that harness the building blocks of life to work in harmony with the body’s immune system. The company has utilized support from the NOL program every year since 2018.

“This program offered by the NJEDA provides Imunon with investor-friendly ways to finance its clinical development programs,” said IMUNON’s executive vice president and CFO Jeffrey W. Church. “The sale of more than $19 million of unused New Jersey NOLs over the past six years reflects the balance between the high cost of research and drug development and a focus on our shareholders. We extend thanks to the NJEDA for their efforts to foster continued investment and growth for businesses in New Jersey.”

Clinical stage pharmaceutical company Lisata Therapeutics, based in Basking Ridge, Somerset County, is dedicated to the discovery, development, and commercialization of innovative therapies for the treatment of advanced solid tumors and other major diseases. In addition to receiving support from the NOL program since 2019, the company also received the NJEDA’s Small Business Improvement Grant in 2023.

“Lisata is thrilled to leverage the benefits of the NJ NOL program, which has provided the Company with critical non-dilutive funding for several years,” said President and Chief Executive Officer of Lisata David J. Mazzo, PhD. “It has allowed us to translate net operating losses into strategic investments for our pipeline, without diluting ownership for our shareholders. This is a significant financial boost that fuels our ability to deliver potentially life-saving treatments to patients more quickly. We’re grateful to the NJEDA for recognizing the potential of New Jersey’s life science companies and for fostering innovation through programs like the NOL.”

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