- CytoSorbents (NASDAQ: CTSO) received $1.7 million in non-dilutive funding through the New Jersey Business Tax Certificate Transfer Program.
- The funding will facilitate DrugSorbâ„¢-ATR preparations and manufacturing expansion in Princeton.
- Amended 2022 tax return increased available NOL credits due to NJ tax reform.
CytoSorbents Corporation (CTSO, Financial) has secured approximately $1.7 million in cash proceeds through the New Jersey Technology Business Tax Certificate Transfer Program. This non-dilutive funding, sponsored by the New Jersey Economic Development Authority (NJEDA), involves selling the company's 2023 and amended 2022 Net Operating Loss (NOL) and R&D tax credits.
The capital infusion will be strategically utilized across three primary areas: supporting the upcoming launch of the DrugSorbâ„¢-ATR in the U.S. and Canada, scaling up manufacturing capabilities at the new Princeton facility, and driving other key initiatives. This funding approach allows CytoSorbents to bolster its cash reserves without diluting shareholder equity.
The NJ Technology Business Tax Certificate Transfer Program is designed to aid technology and biotechnology firms in converting unused NOL and R&D tax credits into immediate cash. Companies can sell these credits to profitable New Jersey corporate taxpayers for at least 80% of their value, providing critical financial support for business expansion and innovation.
Recent New Jersey tax reform, through legislation A.B. 5323 enacted on July 3, 2023, enabled CytoSorbents to amend its 2022 tax return, thereby increasing the NOL amount available for sale. This legislative change underscores the company's proactive financial strategy, enabling further monetization of its tax assets.
