WHO ARE THE DIGITAL AND GREEN COMPANIES THAT SHARED IN THE $60 MILLION FROM THE NJEDA’S NOL PROGRAM IN 2019?
Esther Surden, New Jersey Tech Weekly
In December, New Jersey Economic Development Authority (NJEDA) announced that it has approved 46 technology and life sciences companies to participate in the 2019 Net Operating Loss (NOL) Program also known as the Technology Business Tax Certificate Transfer Program.
The NOL Program has long been heralded as a lifeline for companies going through unprofitable times. The program enables eligible technology and life sciences 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.
The NJEDA and the New Jersey Department of Treasury’s Division of Taxation administer the program. To date, more than $1 billion in funding has been approved for over 540 technology and life sciences companies since the program’s inception.
This year, 46 companies were approved to share $60 million through the NOL Program, the maximum amount of funding allocated for the program. This is the second year in a row that the program has hit its cap.
“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 Chief Executive Officer Tim Sullivan said in a press release. “Governor Murphy has committed to recapturing New Jersey’s role as a leader in innovation, and that starts with connecting entrepreneurs to much-needed capital.”
- Only technology and biotechnology companies whose primary business involves the provision of a scientific process, product or service are eligible
- An eligible company must own, have filed for, or have a license to use protected, proprietary intellectual property (defined as a patent or a registered copyright)
- An eligible company cannot have had positive net operating income on either of its last two full-year income statements according to GAAP. 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
- An eligible company must have at least one full-time employee working in New Jersey if incorporated or formed less than three years, five full-time employees in New Jersey if incorporated or formed more than three years but less than five years, or 10 full-time employees in New Jersey if incorporated or formed more than five years
- An eligible company must have financial statements for the two most recent full years of operation compiled, reviewed or audited by an independent CPA firm and prepared according to US GAAP.
This article only covers the digital and clean/sustainable/green companies that received funding through the NOL program. For a complete list of companies, including the life sciences, health and pharma companies that are using the NOL program for funds, see the table here: https://www.njeda.com/nolapprovals2019
Information about the companies came from their websites.
|Acreto Cloud Corporation||Jersey City||Acreto offers advanced security for distributed internet of things systems|
|Arable Labs||Princeton||Arable has a global solution to managing weather risk and crop health, delivering real-time, actionable insights from the farmer’s field.|
|Brilliant Light Power, Inc.||Cranbury||Brilliant Light Power has developed a new commercially competitive, non-polluting, plasma-based primary source of power from the conversion of hydrogen atoms of water molecules to dark matter, the previously unidentified matter that makes up most of the mass of the universe.|
|CircleBlack||Kingston||CircleBlack is a wealth management platform that gives a complete financial overview of a client’s portfolio in one simple-to-access location|
|Duet Microelectronics||Raritan||Duet offers top-tier RF semiconductor technology, products, service and support.|
|EOS Energy Storage||Edison||EOS is on a mission to accelerate clean energy by deploying storage solutions that can help deliver the reliable and cost-competitive power that the market expects in a sustainable way.|
|Hope Portal Services, Inc. DBA Hope Trust||Holmdel||Hope Trust’s technology enables individuals to develop a comprehensive care plan that can be updated anytime, anywhere. When complete, the plan empowers a team of family members, friends and professionals to provide for a loved one during your lifetime and guide your successors thereafter.|
|Inpensa||South Plainfield||Inpensa’s software platform automates and standardizes the process of managing corporate investments. By digitizing a legacy manual process typically managed by spreadsheets and emails, Inpensa helps companies both large and small make intelligent data-driven investment decisions that optimizes their performance and competitiveness.|
|IoTecha Corp.||Piscataway||IoTecha was born at the nexus of two powerful trends; transportation electrification, and smart grid evolution. The company provides highly integrated software and hardware solutions that accelerate time to market. “Our solutions bring Operations Technologies and Information Technologies worlds together by simplifying the development and implementation of Smart EV Charging and EV / Smart Grid integration.”|
|Malbec Solutions DBA Malbek||Somerset||Contract management reimagined|
|MDX Media DBA Sapphire Digital||Lyndhurst||Sapphire Digital reduces health care costs by getting people to the right provider, every time.|
|Moblty||Livingston||Moblty is a recognized leader in Digital Shopper engagement in the retail environment. Moblty provides retailers with advanced and comprehensive tools, technology and intellectual currency to activate and transform today’s shopper experience…with programs that inspire, inform, educate and provide incentives to consumers in real-time.|
|Nanotech Industries||Avenel||The company’s focus is R&D of market-ready technologies with an emphasis on advanced, novel materials that provide cutting edge environmental engineering solutions for markets throughout the world.|
|Niksun, Inc.||Princeton||Using time-tested zero-loss full packet capture technology, NIKSUN helps you create a faster, more secure cyberinfrastructure based on the same products that powerfully secure over 1,000 enterprises and governments in over 30 countries.|
|Ocean Power Technologies||Monroe||Ocean Power Technologies (Nasdaq:OPTT) is a pioneer in renewable wave-energy technology that converts ocean wave energy into electricity.|
|Prazas Learning Inc.||Kendall Park||Prazas Learning helps students become math champions guides by expert coaches. The program is powered by AI.|
|Solidia Technologies||Piscataway||Solida is a VC-funded cement and concrete technology company addressing sustainability issues.|
|TrialScope||Jersey City||” Optimize the efficiency of disclosure activities, maximize clinical trial data transparency, and foster more informed, engaged patients with TrialScope.”|
|United Silicon Carbide Inc.||Monmouth Junction||The company’s mission is to accelerate SiC adoption using its innovative device technology, enabling customers to deliver industry-transforming levels of power efficiency to society’s most advanced applications, particularly in mobility, IT infrastructure and renewable energy.|
Tags: Acreto Cloud, Arable Labs, Brillian Light Power, CircleBlack, Duet Microelectronics, Eos Energy Storage, Hope Portal Services, Hope Trust, Impenza, IoTEcha, Malbec Solutions, MDX Media, Moblity, Nanotech Industries, Net Operating Loss program, New Jersey Economic Development Authority, NIKSUN, Ocean Powere Technologies, Prazas Learning, Sapphire Digital, Solida Technologies, Technology Business Tax Certificate Transfer, Tim Sullivan, TrialScope, United Silicon CarbidePrevious:In 2020, CentralReach Will Address Industry Trends Its Customers Face in a Complex MarketNext:For 2020, Cross River Bank Says It Will Increase Collaboration to Grow New Jersey’s Fintech Ecosystem
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About The Author
Esther is the Founder and Editor in Chief of NJ Tech Weekly. This article is reposted here with her permission.