The New Jersey Economic Development Authority (EDA) announced that it has approved 46 technology and life sciences companies to participate in the 2019 Net Operating Loss (NOL) Program.
Now in its 21st year, the NOL Program has long been heralded as a lifeline for companies going through unprofitable times. The program enables eligible technology and life sciences companies to sell New Jersey net operating losses and unused research and development tax credits to unrelated profitable corporations for cash. The cash can then be used for working capital or to fund research. The EDA and the New Jersey Department of Treasury’s Division of Taxation administer the program. To date, more than $1 billion in funding has been approved for over 540 technology and life sciences companies since the program’s inception. This year, 46 companies were approved to share $60 million through the NOL Program, the maximum amount of funding allocated for the program. This is the second year in a row that the program has hit its cap.
“Every day, entrepreneurs continue to realize the vast benefits that locating in the Garden State can bring, including our ideal location, talented workforce, and unique funding resources like the NOL Program,” EDA Chief Executive Officer Tim Sullivan said. “Governor Murphy has committed to recapturing New Jersey’s role as a leader in innovation, and that starts with connecting entrepreneurs to much-needed capital.”
Twelve of the 46 companies approved to sell their net operating losses are participating in the NOL Program for the first time. The following companies are among those that are new to the program.
Chromocell is a life sciences company that focuses on discovering new drugs to manage pain, and develops and commercializes novel flavor enhancers to reduce sugar, salt and bitter tastes. The company is located on the EDA’s NJ Bioscience Center (NJBC) campus. Located in the heart of New Jersey’s “Research Corridor,” NJBC is a 50-acre research park which offers easy access to both New York City and Philadelphia, as well as close proximity to near Rutgers New Jersey Medical School and Princeton University. Chromocell is a graduate of the NJBC – Incubator.
“We are extremely appreciative of the NOL funding, which will enable us to continue building out pipeline of products and support our mission to develop a non-opioid pain medication and help consumer good companies produce healthier food and beverages,” said Chromocell Co-founder and Chief Executive Officer Christian Kopfli.
Hope Portal Services (Hope Trust), located at CoLabs at Bell Works in Holmdel, is a technology-based trust company specializing in helping families and their loved ones with special needs. Their team of social workers, medical professionals, lawyers and financial experts craft individualized plans for caring for individuals with unique challenges, and utilize trust assets to meet the identified trust goals. The company previously participated in the EDA’s Angel Investor Tax Credit Program and New Jersey Founders & Funders.
“The EDA has been a tremendous asset to our company as we’ve grown,” said Daria Placitella, Hope Trust President and CEO. “The NOL Program is the latest tool that we’re leveraging as we support our customers with special needs and their families.”
OncoSec Medical Incorporated is developing late-stage intratumoral cancer immunotherapies. OncoSec was founded in San Diego, but when Daniel O’Connor, a serial New Jersey entrepreneur, became CEO of the company, he moved it to Pennington to reap the many benefits of locating in the Garden State. OncoSec was among five startups selected to join EDA at BIO International Convention this past summer to showcase innovation in New Jersey.
“The NOL Program was pivotal in our decision to relocate OncoSec to New Jersey,” O’Connor said. “The ability to turn losses into assets is extremely beneficial to growing companies like ours.”
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