The New Jersey Economic Development Authority announced on Tuesday it has approved 46 technology and life science firms to participate in this year’s Net Operating Loss Program.
The program, in its 21st year, enables 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.
In the past 21 years, the EDA has approved more than $1 billion for 450 companies since the program began. This year, $60 million — the maximum allocated for the program — will be shared between the firms.
“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,” NJEDA CEO Tim Sullivan said. “Governor (Phil) 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 that were approved for the program are participating for the first time, the EDA said. The following are among those that are new to the program:
- Chromocell, a life sciences company, is located on the EDA’s NJ Bioscience Center campus.
“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,” Christian Kopfli, co-founder and CEO, Chromocell, said.
- Hope Portal Services dba Hope Trust, a technoloby-based trust company located at CoLabs at Bell Works in Holmdel.
“The NJEDA has been a tremendous asset to our company as we’ve grown,” Daria Placitella, CEO and president, Hope Trust, said. “The NOL Program is the latest tool that we’re leveraging as we support our customers with special needs and their families.”
- OncoSec Medical Inc., a developer of late-stage intratumoral cancer immunotherapies. The firm was among five startups selected to join NJEDA at BIO International Convention this past summer.
“The NOL Program was pivotal in our decision to relocate OncoSec to New Jersey,” Daniel O’Connor, CEO and president of OncoSec, said. “The ability to turn losses into assets is extremely beneficial to growing companies like ours.”
