Cancer Genetics Gains $1.1M from NJ Net Operating Loss Program

December 28, 2017
Cancer Genetics Gains $1.1M from NJ Net Operating Loss Program
Cancer Genetics (CGI) has received $1.1 million in net cash proceeds through the transfer of tax credits approved by the New Jersey Technology Business Tax Certificate Transfer (NOL) program of the New Jersey Economic Development Authority (NJEDA). [Source: Maxim_Kazmin/Fotolia]

Cancer Genetics (CGI) said today it has received $1.1 million in net cash proceeds through the transfer of tax credits approved by the New Jersey Technology Business Tax Certificate Transfer (NOL) program of the New Jersey Economic Development Authority (NJEDA).

“This non-dilutive capital will help to accelerate the development and commercialization of precision oncology technologies in multiple cancer indications as well as solidify our commitment to bring innovation in the biotech industry to the state of New Jersey,” CGI President and CEO Panna Sharma said in a statement.

The payment, received this month, is net of administrative and sales expenses and fees associated with the program, according to CGI.

Headquartered in Rutherford, NJ, CGI develops, commercializes, and provides diagnostic products and services designed to enable precision medicine in the field of oncology, with locations in the US, India, and China.

The NOL program is designed to provide funds each year to eligible New Jersey-based technology and biotechnology companies, with the aim of supporting job creation and innovation.

The NOL program allows companies to sell New Jersey net operating losses and R&D tax credits for at least 80% of the value of the tax benefits—up to a maximum lifetime benefit of $15 million per business—to turn their tax losses and credits into cash proceeds to fund additional R&D, buy equipment and/or facilities, or cover other allowable expenditures.

NJEDA determines eligibility, and the New Jersey Division of Taxation determines the value of the tax benefits provided under NOL and the Authority’s R&D Tax Credits program.

On February 22, CGI sold $18,177,059 of gross State of New Jersey NOL’s relating to the 2014 and 2015 tax years for approximately $876,000, as well as $167,572 of state research and development tax credits, the company disclosed November 13 in its most recent Form 10-Q quarterly filing. The sale resulted in the net receipt by CGI of approximately $970,000.

CGI has benefited from New Jersey’s Technology Business Tax Certificate Transfer (NOL) Program since 2012.

CGI is one of more than 525 businesses that, as of November, had been approved for awards totaling over $950 million since the NOL program was established in 1999, according to the NJEDA.