Princeton-based clinical-stage biochemical company Advaxis announced its preliminary approval for the $1.9 million tax credit for 2014. The credit comes from the New Jersey Technology Business Tax Certificate Transfer, or NOL, Program, which is administered by the New Jersey Economic Development Authority and the New Jersey Department of the Treasury's Division of Taxation.
The company plans to transfer the credit for $1.7 million in cash mid-December.
This program allows companies to sell New Jersey tax losses and/or research and development tax credits for at least 80 percent of the value of the tax benefits to unaffiliated, profitable corporate taxpayers in the State.
This provides biotechnology businesses with NOLs the opportunity to turn their tax losses and credits into cash proceeds to buy equipment and/or facilities, fund further R&D or cover other allowable expenditures.
In Advaxis’ case, the company will put the money into developing its Lm-LLO cancer immunotherapy platform, Advaxis CEO Daniel J. O'Connor said in a statement.
"We are very pleased the NJEDA has preliminarily approved our NOL application as it offers the opportunity to bring approximately $1.7 million of non-dilutive funding to Advaxis," he said. "The state of New Jersey continues to be a strong supporter of the biotechnology industry, which is critical for Advaxis as we rapidly advance the clinical development of our Lm-LLO cancer immunotherapy platform in multiple, high-need cancer indications."
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