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Press Release
March 12, 2021
4 minute read

49 Early-Stage Companies Poised to Sell Approximately $54.5 Million Through 2020 NJ Net Operating Loss Program


TRENTON, N.J. (March 12, 2021) – The New Jersey Economic Development Authority (NJEDA) announced today that it sent final approval letters last week to the 49 technology and life sciences companies that are participating in the 2020 Net Operating Loss (NOL) Program.

Hailed as a lifeline for New Jersey companies that have yet to reach profitability, the NOL Program enables participants to sell their New Jersey net operating losses and unused research and development (R&D) tax credits to unrelated profitable corporations for cash. The cash can then be used for working capital or to fund research. The NJEDA and the New Jersey Department of Treasury’s Division of Taxation jointly administer the program.

The average award for companies approved to sell their net operating losses through the program in 2020 was $1.1 million. Fourteen of the 49 participating companies set to receive funding are participating in the NOL Program for the first time. Those new to the program are noted with an asterisk in the table at the end of this news release.

To date, more than $1.07 billion in funding has been distributed to over 550 technology and life sciences companies since the program’s inception in the late 1990s.

The NOL Program got a boost in January 2021, when Governor Phil Murphy signed the New Jersey Economic Recovery Act of 2020. Part of the Act increased the program’s annual cap from $60 million to $75 million. It also increased the lifetime cap for an individual applicant from $15 million to $20 million.

“The NOL Program has historically been one of our most sought-after programs by entrepreneurs as they grow their companies here in the Garden State,” said NJEDA Chief Executive Officer Tim Sullivan. “Thanks to action taken by Governor Murphy and the Legislature, we will be able to connect even more companies with access to capital in the coming years. This, in turn, will lead to additional job creation within New Jersey’s innovation ecosystem and to the advancement of life-saving and life-enhancing technologies.”

Sullivan noted that the NJEDA plans to open the application for the 2021 NOL Program in early May.

In addition to being vital to emerging companies, the NOL Program also provides enormous benefits to the profitable companies that are buying the net operating losses and unused R&D tax credits. A profitable company can purchase tax credits at a discount, based on the market price at the time. These tax credits have traditionally traded somewhere between 88 and 94 cents on the dollar. Once purchased, the tax credits can then be applied to potentially reduce the buyer’s state tax obligation. The names of the buyers who chose to be publicly listed are on the NOL Program’s website.

Ailares Inc. in Princeton, Clinical Genomics in Bridgewater, and TrueFort in Weehawken, were among the 14 early-stage companies that were new to the NOL Program in 2020.

Ailares Inc. is a financial technology company that leverages machine learning (ML) and artificial intelligence (AI) in the fields of wealth management, investment management, and risk management. The company seeks to streamline the investment process for its clients by offering a platform that gives its user direct access to investment strategies and products.

“We founded Alaires with the goal of closing the wealth gap between those with access to ML/AI and those without it and to level the playing field for investors,” said Ailares CEO and Chief Investment Officer Kenneth Xu. “By leveraging the non-dilutive capital we receive through the NOL Program, we will be able to further our mission and connect every-day investors with the tools they need to invest strategically and successfully.”

Female-led Clinical Genomics, a biotechnology firm whose global headquarters are located in Bridgewater, develops technology to screen for, and monitor, colorectal cancer. Clinical Genomics’ products span the full spectrum of colorectal cancer testing from screening to post-treatment monitoring.

“New Jersey is home to the most scientists per square mile and top-notch resources like the NOL Program, which are tremendous assets for up-and-coming biotechnology companies like ours,” said Clinical Genomics President and CEO Betsy Hanna. “We have found the Garden State to be the perfect location to base our global operations as we continue to broaden access to our life-saving diagnostic tests for hospitals and testing facilities around the world.”

TrueFort develops cybersecurity software products used by enterprises to protect their critical business applications on premise and in the cloud. The TrueFort Fortress is a real-time enterprise security platform that defends high-value cloud, hybrid, and legacy environments from hidden risks using a unique application-centric approach. The company was founded by former information technology executives from JPMorgan Chase, Bank of America Merrill Lynch and Goldman Sachs. TrueFort announced last week it received accolades from Futuriom and the Cybersecurity Excellence Awards for its app and cloud workload protection innovations.

“This past year, more than ever, has shown the importance of keeping data safe in an increasing digital world,” said TrueFort President and CEO Sameer Malhotra. “We’re proud to be able to offer our clients peace of mind through our industry-leading technology. We are also grateful that the NJEDA’s NOL Program will enable us to keep building out our business as we expand our customer base.”

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.com and follow @NewJerseyEDA on FacebookTwitterInstagram, and LinkedIn.

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Company

Company Headquarters/Base of Operations (Municipality)

Company Headquarters/Base of Operations (County)

1

Acuitive Technologies

Allendale

Bergen

2*

Ailares Inc.

Princeton

Mercer

3

AIM ImmunoTech, Inc.

New Brunswick

Middlesex

4

Angel Medical Systems

Eatontown

Monmouth

5

Avlino Inc.

Holmdel

Monmouth

6

Bellerophon Therapeutics 

Warren

Somerset

7*

Bloqcube Inc.

Bridgewater

Somerset

8

Brilliant Light Power Inc.

Eatonton

Monmouth

9

Caladrius Biosciences, Inc.

Basking Ridge

Somerset

10

Celsion Corporation

Lawrenceville

Mercer

11

Celularity, Inc.

Warren

Somerset

12

CircleBlack, Inc.

Princeton

Mercer

13*

Clinical Genomics

Bridgewater

Somerset

14

CorMedix Inc.

Berkeley Heights

Union

15

Cytosorbents Medical Inc.

Monmouth Junction

Middlesex

16

electroCore, Inc.

Basking Ridge

Somerset

17

Elite Laboratories

Northvale

Bergen

18

EOS Energy Storage

Edison

Middlesex

19*

Forefront Telecare Inc.

Hamilton Twp.

Mercer

20*

Fusion Recruiting Labs, Inc.

Red Bank

Monmouth

21

Gadget Software, Inc.

Newark

Essex

22

Hope Portal Services, Inc DBA Hope Trust

Holmdel

Monmouth

23*

Interpace Biosciences, Inc.

Parsippany

Morris

24

IoTecha Corp

Piscataway

Middlesex

25

Matinas Biopharma

Bedminster

Somerset

26

Miami International Holdings, Inc

Princeton

Mercer

27

MYOS RENS Technology Inc.

Cedar Knolls

Morris

28

Nanotech Industrial Solutions

Avenel

Middlesex

29

Ocean Power Technologies, Inc.

Monroe Township

Middlesex

30

Oncosec Medical

Pennington

Mercer

31*

Onkos Surgical Incorporated

Parsippany

Morris

32

Orthobond Corporation

Princeton

Mercer

33

PDS Biotechnology Corporation

Florham Park

Morris

34*

Princeton Identity

Hamilton Twp.

Mercer

35

Provention Bio, Inc.

Red Bank

Monmouth

36

Rafael Pharmaceuticals, Inc.

Newark

Essex

37

Scynexis, Inc

Jersey City

Hudson

38

Solidia Technologies

Piscataway

Middlesex

39

Soligenix Inc.

Princeton

Mercer

40*

SPES Pharmaceuticals Inc.

North Brunswick

Middlesex

41*

Sunbird Software, Inc.

Somerset

Somerset

42

Svelte Medical Systems

New Providence

Union

43*

Tallyx, Inc.

Princeton

Mercer

44*

Throtle, Inc.

Red Bank

Monmouth

45

TrialScope

Jersey City

Hudson

46*

Truefort Inc

Weehawken

Hudson

47*

Tulex Pharmaceutical Inc

Cranbury

Middlesex

48

United Silicon Carbide Inc. 

Monmouth Junction

Middlesex

49

WellSheet, Inc.

Newark

Essex

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