NJEDA awards more than $68M to 34 tech, life science companies through NOL program in 2023

2024 applications are open until June 30

Thirty-four technology and life sciences companies were awarded more than $68 million through the 2023 Technology Business Tax Certificate Transfer Program, according to a recent announcement from the New Jersey Economic Development Authority.

Commonly known as the Net Operating Loss, or NOL, program, the initiative allows early-stage technology and life sciences companies to sell a percentage of their net operating losses and unused research & development tax credits to unrelated profitable corporations for cash. 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.

Capital raised through the NOL program can help cover allowable costs incurred in connection with operating businesses, such as salaries, R&D and other working capital expenditures.

“Since taking office, Gov. (Phil) Murphy has prioritized programs and initiatives that provide critically necessary support to New Jersey’s early-stage, innovative companies, of which, the NOL program has been hailed for decades as a lifeline for emerging companies that have yet to reach profitability,” NJEDA CEO Tim Sullivan said. “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 startups 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.”

The NJEDA opened applications for the 2024 NOL program on May 1, and the application will close at 11:59 p.m. June 30. For more information on program eligibility and application requirements, click here.

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

  • Imunon, a life sciences company based in Lawrence Township, Mercer County, that 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,” IMUNON Executive Vice President and Chief Financial Officer Jeffrey W. Church said. “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.