"Creating a stronger innovation economy in New Jersey means creating a pathway for early stage technology and life sciences companies to continue research or operations before they reach the point of profitability," EDA Chief Executive Officer (CEO) Tim Sullivan said. "The NOL Program is helping to cultivate the growth of this vital sector and spur the creation of even more New Jersey success stories."
Sullivan pointed to several of the program's benefits:
- Emerging companies can use the funding they receive as working capital, and the businesses to which they sell are able to lower their tax burden;
- The funding is non-dilutive, meaning that entrepreneurs do not have to give up equity in their companies to receive the money;
- The average historical award is over $1 million;
- Nearly 90 percent of applicants successfully receive funding;
- On average, funding is received within six months of applying.
ContraVir Pharmaceuticals CEO James Sapirstein was among those who utilized the NOL Program to grow his biotechnology company in Edison. ContraVir, which participated in the NOL Program for the third time in 2017, is developing a cure for Hepatitis B through a combination of anti-viral compounds. The money obtained through the NOL Program helped ContraVir fund specific research programs, as well as manufacturing and productions operations, including a Phase 1 trial of a proprietary compound, and the hiring of two new employees to work on that trial.
"We, as a State, have high paying jobs that we want to keep here and the NOL Program absolutely contributes to that growth," Sapirstein said. "This is literally one of the best programs offered by the State of New Jersey."
Last year was the first time that Atlantic City-based Impactivate Networks participated in the NOL Program. Impactivate Networks is an information technology company that maintains and operates 100 digital displays along the Atlantic City Boardwalk, informing visitors of upcoming events and providing advertisers access to millions of Boardwalk visitors via full motion video and sound.
"We heard about the NOL Program when we attended the New Jersey Founders & Funders last year and learned more about it through discussions with members of the EDA's Technology and Life Sciences team," said Michael Binder, President and CEO of Impactivate Networks. "The funding we received has proven invaluable as we continue to build out our network and promote even more events and businesses in the Atlantic City area."
Princeton-based Arable Labs was another new participant to the NOL Program in 2017. The company's proprietary smart technology offers farmers real-time, continuous visibility and predictive analytics of more than 40 metrics, such as weather, readiness for harvesting, and plant health. This data enables the farmers to make informed, vital decisions at their fingertips via a laptop, tablet or smart phone.
Arable Labs Founder and CEO Adam Wolf said, "For a startup, cash is king, and we have experienced direct financial impact from the program."
Companies must apply online by June 30, 2018 in order to participate. To sell net operating losses or R&D tax credits generated in 2017, companies must file their corporate business tax returns with the NJ Division of Taxation by June 30, 2018. Applicants can expect to hear by the end of August if their applications are approved.
For more information on the NOL Program, including frequently asked questions, a complete list of eligibility requirements, and program details, please visit http://www.njeda.com/nol.
Questions about the NOL program may be submitted to firstname.lastname@example.org.