Dozens of technology and biotechnology companies in the state will get financial help, courtesy of the New Jersey Economic Development Authority.
Through New Jersey’s Technology Business Tax Certificate Transfer Program, 39 will share more than $46 million under approvals announced Monday.
The competitive program is administered by EDA and the New Jersey Department of Treasury’s Division of Taxation. It allows qualified, unprofitable technology and biotechnology companies to sell net operating losses and/or research and development tax credits to raise cash to finance their growth and operations.
“For nearly 20 years, the NOL program has been cited by entrepreneurs as a key factor in the growth of their companies,” EDA CEO Melissa Orsen said. “The working capital the NOL program provides helps emerging companies add key staff or accelerate research and development efforts, spurring the continued growth of New Jersey’s technology industry.”
Bergen County-based Acuitive Technologies Inc. participated for the second year.
The Allendale company pursues material technologies to improve medical device performance and patient outcomes.
“The non-dilutive financing provided by the NOL program has been a key component of our funding strategy as we develop work toward improving results for recipients of orthopedic implants,” said Acuitive Principal David Washburn. “The Angel Investor Tax Credit program and other resources offered by the state have supported us through various stages of our growth, and have been instrumental in our ability to expand in New Jersey.”
Livingston-based Moblty is an enterprise software company that benefited under the NOL Program for the first time this year.
“We are excited to participate in the NOL program, as having the ability to sell NOLs will improve cash flow and allow us to invest further in our technology,” said CEO Rajesh Saggi “We appreciate the state’s progressive, proactive approach to helping emerging companies succeed.”
River Edge’s Nephros Inc. also got help for its commercial stage medical device company.
“Nephros is advancing technologies that help medical facilities protect their patients,” said CFO Andy Astor. “The support we are receiving from the NOL program will help us deliver products to market faster, enabling us to safeguard the health of more patients, sooner.”