$60 Million Program Allows Eligible Companies to Sell Net Operating Losses for Capital
 
TRENTON (May 1, 2017) – Providing the opportunity for early-stage companies to gain access to capital, the New Jersey Economic Development Authority (EDA) today announced that it is has begun accepting applications online for this year’s New Jersey Technology Business Tax Certificate Transfer (NOL) Program. Emerging technology and biotechnology companies interested in applying should visit https://www.njeda.gov/nol. Companies must apply online by June 30, 2017.
 
Administered by the EDA and the New Jersey Department of the Treasury's Division of Taxation, the NOL Program allows eligible technology and life sciences companies to sell unused New Jersey net operating losses and research and development tax credits to unrelated profitable corporations.
 
“Considered a lifeline by entrepreneurs around the State, no EDA program has been more highly-touted by the technology and biotechnology community than the NOL Program,” EDA Chief Executive Officer Melissa Orsen said. “The non-dilutive cash received through the program has helped hundreds of small businesses get through critical stages of development and ultimately flourish in the Garden State.”
 
To date, more than 500 companies have been approved for awards totaling over $905 million. Last year, 40 companies were approved to sell $35 million in benefits.
 
Holmdel-based Avlino, Inc., which offers solutions and services in analytics to help organizations use data more effectively, participated in the NOL Program for the first time in 2016. 
 
“The NOL Program created an opportunity for Avlino to sell back its net-operating losses and R&D tax credits to profitable companies,” Avlino Founder, President, and Chief Executive Officer Ramana Jampala said, “Under this program, Avlino was able to reinvest those dollars back into product development and to augment our New Jersey based team.”

Serial entrepreneur Dr. David Fischell’s medical device companies Svelte Medical Systems in New Providence and Angel Medical Systems in Shrewsbury have both repeatedly benefited from the NOL Program.

“It is perhaps the NOL Program that has been the most beneficial to both Svelte and Angel Medical, bringing in millions of dollars over a ten-year period that are non-dilutive to shareholders and help with financing new medical technologies to help people,” said Dr. Fischell.

Monmouth Junction-based biotechnology business CytoSorbents has turned to the NOL Program multiple times to raise much-needed capital as it commercializes its blood purification technology. Cytosorbents CEO Phillip Chan noted that funding from the NOL Program “will help CytoSorbents continue its international mission to help save the lives of critically-ill and cardiac surgery patients suffering from deadly inflammation.”
 
Unprofitable New Jersey-based technology or biotechnology companies with fewer than 225 U.S. employees (including parent company and all subsidiaries) must meet several requirements to be eligible for the NOL program. Requirements include (but are not limited to):
 

• The company must have pending or issued patents, copyrights, or exclusive licenses and must be able to show that this intellectual property is directly related to the core business;
• The company must have financial statements for the two most recent full years of operation compiled, reviewed or audited by an independent CPA firm;
• The company cannot have had positive net operating income on either of its last two full-year income statements according to generally accepted accounting principles.  In addition, an eligible company cannot have a parent company with positive net operating income, or be part of a consolidated group of affiliates for federal income tax purposes with positive net operating income.

A complete list of requirements and program details can be found at https://www.njeda.gov/nol.
 
To be eligible to participate, companies must apply online by June 30, 2017. Also, in order to sell benefits generated in 2016, companies must file their corporate business tax returns with the NJ Division of Taxation by June 30, 2017. Applicants should expect to hear by the end of August if their applications are being recommended for EDA Board approval.
 
Questions about the NOL program may be submitted to nol@njeda.com.  All responses will be posted on the EDA’s website.
 
The EDA offers a multitude of resources to help technology and biotechnology companies grow and thrive in New Jersey. To learn about these resources, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.
 

TRENTON, N.J. (April 28, 2017) – Nearly two dozen banks that operate in New Jersey were represented at today’s Premier Lender Roundtable hosted by the New Jersey Economic Development Authority (EDA). The event brought together leading banks that partner with the EDA through its Premier Lender Program, which was created to help small businesses access capital to support their growth in New Jersey.

The EDA partners with Premier Lender banks to provide small businesses with low cost financing that includes EDA loan participation and/or guarantees, and line of credit guarantees. Businesses can use this financing for fixed assets or term working capital. The EDA’s ability to provide guarantees or participations for a portion of these loans helps to reduce risk for lenders and facilitate approvals or enhanced financing for borrowers.

“With access to capital often cited as one of the greatest hurdles faced by small business owners, we are pleased to partner with New Jersey banks to help ensure the growth of these important job creators,” EDA Chief Executive Officer Melissa Orsen said.

This program offers loans with up to a $2 million EDA loan participation or $1.5 million loan guarantee for fixed assets, up to a $750,000 loan participation or $1.5 million loan guarantee for term working capital, and up to a $750,000 line of credit guarantee. Businesses must typically commit to creating a minimum number of jobs within two years, generally one job per $65,000 of EDA exposure. The full list of eligibility requirements and Premier Lender banks can be found at www.njeda.gov/financing_incentives/programs/Premier-Lender-Program.

Habitat for Humanity of Burlington County leveraged EDA financing and a loan from a Premier Lender to purchase the building it had been leasing in Maple Shade since 2014, after moving from Cinnaminson. The building is home to the not-for-profit’s ReStore, which sells secondhand items to raise funds to build homes for families in need.

“Traffic at our ReStore has increased dramatically due to our expansion in Maple Shade,” said John Garton, Controller, Habitat for Humanity of Burlington County. “The financing the EDA provided has helped us to grow and build lasting relationships with volunteers and other stakeholders.”

Another beneficiary of the Program is DG and Sons. Based in Rochelle Park. The family-owned business expanded its existing facility from 4,000 square feet to 16,000 square feet with assistance from the program.

“The financing enabled us not only to quadruple our space, but to also hire additional mechanics,” said Dennis Galloway, who owns DG and Sons with his wife Maria Siliato-Galloway. “We now have the capacity to seamlessly support more and larger clients.”

To learn about EDA resources for small businesses and not-for-profits, visit www.njeda.gov/small_midsize_business and follow @NJEDAWasHere on Twitter and LinkedIn, or call the Business Action Center at 866-534-7789.  

A meeting of the Capital City Redevelopment Corporation (CCRC) Board has been scheduled for Friday, April 21, 2017 at 11:00 am in the EDA Board Room, 36 West State Street, Trenton, NJ.

 

A copy of the proposed agenda can be found at http://web.njeda.com/ccrc/page.aspx?id=2461

   

From left: Dan O'Connor, Kathy Bloch, and Scott Jackson will offer tips and suggestions to biotechnology companies looking to go public.

NORTH BRUNSWICK, N.J. (April 19, 2017) – On April 24, the New Jersey Economic Development Authority (EDA) will host a panel discussion that will give biotechnology companies the opportunity to hear from industry leaders who have taken their businesses through the process of going public. The event is the latest in an ongoing series of biotechnology funding panel discussions hosted at the EDA’s Commercialization for Innovative Technologies (CCIT) in North Brunswick.

During “Going Public – Biotech Leaders on Their Path to Funding,” panel speakers including Advaxis President and Chief Executive Officer (CEO) Daniel O’Connor, CytoSorbents Chief Financial Officer Kathy Bloch, and former Celator Pharmaceuticals CEO Scott Jackson, will speak about their unique experiences taking their companies public. These executives will discuss the paths their EDA-supported companies took to success, insights into their strategies, and decisions they faced along the way.

The discussion, which will be moderated by CCIT Manager Lenzie Harcum, begins at 5:00 p.m. and is open to the community. The event is co-sponsored by BioNJ and the New Jersey Technology Council. Anyone interested in attending should register online at www.njeda.gov/goingpublicpanel.

Just three and a half years ago, Advaxis (NASDAQ: ADXS) had five employees, was trading as a penny stock and was millions of dollars in debt. Under O’Connor’s leadership, the company up-listed to NASDAQ in 2013, raised more than $250 million and is now putting the finishing touches on new manufacturing and laboratory facilities at its Princeton headquarters. Advaxis has received support through the State’s Technology Business Tax Certificate Transfer (NOL) Program. More information about Advaxis, a graduate of the CCIT in 2011 that now has over 100 employees, and the EDA resources it used to grow, can be found at www.njeda.gov/advaxisfeature.

CytoSorbents Corporation (NASDAQ: CTSO) is a critical care immunotherapy company engaged in blood purification to control deadly inflammation in critically-ill and cardiac surgery patients. With Bloch as the company’s CFO, shares of Cytosorbents’ stock started trading on NASDAQ in December 2014. The company has benefitted from the NOL Program. More information about CytoSorbents, and the support it received from the EDA, can be found at www.njeda.gov/cytosorbentsfeature.

Celator Pharmaceuticals went public via a Form 10 and started trading in September 2013. The company’s Phase III clinical trial with its drug combination product called VYXEOS™ produced an overall survival benefit compared to the current standard of care in high-risk acute myeloid leukemia AML patients. This caught the attention of pharmaceutical companies, in particular Jazz Pharmaceuticals, which acquired Celator in 2016 for approximately $1.5 billion. Celator has also taken advantage of the NOL Program. Additional information about Celator and how it benefited from EDA support can be found at www.njeda.gov/celatorfeature. 

The funding panel event also presents an opportunity for companies to visit CCIT, a 46,000-square-foot life sciences incubator that is home to nearly two dozen businesses. With 27 wet labs and access to offices, conference rooms, a supportive staff and a variety of additional resources, CCIT is ideal for emerging companies looking to grow in the Garden State. CCIT is located within the Technology Centre of New Jersey, a 75-acre research park that houses such companies as Chromocell and Orthobond, both of which are CCIT graduates, and Merial. Companies interested in touring CCIT should visit www.njeda.gov/CCIT or contact Harcum at lharcum@njeda.com.

For more information about resources available to support New Jersey’s technology industry, visit www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

The New Jersey Economic Development Authority's next public Board Meeting will be held on Thursday, April 13, 2017 at 10 a.m. at the EDA offices at 36 West State Street, Trenton. A copy of the proposed agenda can be found prior to the meeting at www.njeda.gov/Board. Following the Board Meeting, minutes and the full agenda will also be available at www.njeda.gov/Board.

Astarte Co-Founders Tammi Jantzen (left) and Tracy Warren will pitch game-changing technology for preterm infants at New Jersey Founders & Funders.

TRENTON (March 30, 2017) – When women-owned and operated Astarte Medical Partners Co-Founder Tracy Warren meets with investors at the New Jersey Economic Development Authority’s (EDA’s) New Jersey Founders & Funders event next month, she’ll offer eye-opening statistics: 380,000 preterm babies are born every year, 55,300 of them with a low-birth weight (3.3 pounds or less). She will note that these babies often face health problems and developmental delays and disabilities.

These challenges are the reason that the founders of Ewing-based Astarte Medical are creating NICUtrition, a clinical decision support platform that helps neonatal intensive care units (NICUs) triage preterm infants most at risk for gut inflammation. The gut is the gateway to proper brain growth and function, which is essential for development of the rest of the body. NICUtrition utilizes a patent-pending algorithm for creating a microbial health score. These analytics leverage existing electronic medical records of both mother and baby, as well as non-invasive urine and fecal markers. Diagnosing inflammation in a timely fashion will enable NICU teams to provide optimal personalized nutrition and care, thereby improving outcomes.

Warren and Astarte Co-Founder Tammi Jantzen, both investors-turned-entrepreneurs, started the company along with Kate Gregory, RN, PhD, a top nurse scientist in the field of preterm infant research at the Brigham and Women’s Hospital (BWH) in Boston. 
 

 

Astarte Medical Co-Founder Kate Gregory is a leader in preterm infant research
 

“There are 380,000 preterm infants born every year in the United States, and nearly 15 percent of them are born at a low birth weight,” Warren said. “Our goal is to create a paradigm shift in preterm infant care by providing real-time monitoring of infants’ gut health, the next frontier in neonatal health.”

In addition to being Chief Executive Officer (CEO) and Chief Operating Officer/Chief Financial Officer of Astarte Medical respectively, Warren and Jantzen also head Astarte Ventures, a venture capital firm in Ewing that has spent the past three years dedicated to investment and innovation in women’s and children’s health. The duo met Gregory during a nationwide tour of investment opportunities and decided that founding Astarte Medical was an opportunity too valuable and impactful to pass up.

During New Jersey Founders & Funders, Astarte Medical, whose founders have already personally invested substantially in the company, will be seeking angel and seed-stage investments. Held semi-annually at the EDA’s Commercialization Center for Innovative Technologies, New Jersey Founders & Funders enables early-stage businesses like Astarte Medical to meet with potential investors in 10-minute, one-on-one “speed dating” sessions to discuss strategy, business models and funding opportunities. Applications are accepted on a rolling basis and qualifying companies are admitted on a first come basis. To apply for a future event, visit https://application.njeda.com/tls/.

Warren expressed her appreciation for the fact that the EDA has been helping her company by providing introductions to key players within the healthcare industry, such as members of the New Jersey Hospital Association.

“The EDA understands the needs of emerging technology companies like Astarte Medical, which is why we not only connect entrepreneurs with the access they need to capital, but also offer guidance and support any way we can to help these companies continue to grow,” EDA CEO Melissa Orsen said.

Astarte Medical is gaining recognition for its cutting-edge technology. The Ewing-based company was one of 10 finalists at the Impact Pediatric Health Pitch Competition during South by Southwest® (SXSW®) in Austin earlier this month. SXSW® is an annual conference designed to bring together innovators from around the world in areas such as music, interactive entertainment, and technology.

@NJEDATech spoke with Warren about her company’s experience and its plans for the future:

Why did you choose to grow your company here in New Jersey?
Tammi and I have worked and developed our careers in New Jersey since 2000. We have started and invested in numerous companies here and enjoy a strong network of investors, companies, executives and professional organizations in the region. The fact that all three of Astarte’s founders live in Mercer County helps us with the challenge of work-life balance.

What is your Astarte Medical Partners biggest success to date?
We’ve been fortunate to take advantage of our network and create an experienced team that’s unrivaled for a company at our stage. Joining our female “triple threat” team of founders is Joe Studholme, founder of Princeton Integrated Rx Analytics. Joe is our chief technology officer and leader of our dynamic development team. We are passionate, credentialed and have channeled our energy into Astarte Medical to build a world-class product that will make a difference in the lives of our nation’s most precious patients – preterm infants.

What’s on the horizon for Astarte Medical Partners?
As with any start-up we have clear milestones for value creation.  We have an ongoing preterm infant study at BWH with Dr. Gregory that will yield tremendous data to measure this important aspect of the health of preterm infants.  We have initiated discussions with select hospitals for piloting our product, NICUtrition Guidance, and continue to seek new partners, particularly with New Jersey-based hospitals or medical groups with level III or level IV NICUs. 

For more information about resources available to support New Jersey’s technology industry, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

A meeting of the New Jersey Economic Development Authority has been scheduled for Friday,March 24, 2017 from 10-12 Noon in our offices at 36 West State Street.  A copy of the EDA's Board agenda, including project details, is available at www.njeda.gov/board.

Due to deficient public notice of the March 16, 2017 EDA Board Meeting, the Board will be convening at 10:00 am on March 24, 2017 to take action on those projects presented at the March 16, 2017 EDA Board Meeting.