Bio-therapeutics and bio-nutrition company MYOS RENS Technology Inc. announced that it received approval from the New Jersey Economic Development Authority (NJEDA) to transfer about $1.2 million in available tax benefits to gain a net cash return of $1.1 million by January 2019.
This critical NJEDA program gives approved technology and biotechnology companies within New Jersey the ability to sell research and development tax credits, as well as unused net operating loss carryovers for cash—providing critical cash infusions to startups and early stage companies.
MYOS thanks NJEDA’s New Jersey Technology Business Tax Certificate Transfer Program and its unique financing vehicle, with Joseph Mannello, CEO at MYOS, stating that, “This non-dilutive funding will be used for general working capital without reducing investor value or adding debt to our balance sheet.”
Under the Technology Business Tax Certificate Transfer Program, R&D tax credits and net operating losses can be sold for at least 80% of their value, for a maximum lifetime benefit of $15 million per company. The program only covers technology and biotechnology companies with primary business goals around the provision of scientific processes, products, or services.
“We appreciate the support of the NJEDA to promote innovation in the State of New Jersey and its commitment to growing businesses in the state,” Mannello said. “Last year we launched two clinical studies, including one at Rutgers University, The State University of New Jersey. As we seek to conduct additional clinical studies, we will continue to look at opportunities in our home state.”
