CorMedix Inc., a biopharmaceutical company focused on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory disease, today announced that it has completed the previously announced sale of $5.4 million of NOL tax benefits to two unrelated, profitable New Jersey corporations through the New Jersey Economic Development Authority’s New Jersey Technology Business Tax Certificate Transfer program for State Fiscal Year 2018. As a result, the Company has received approximately $5.1 million in cash from the sale of these NOL tax benefits.
“We are pleased to have closed on this transaction,” said Khoso Baluch, CorMedix CEO. “The funding bolsters our cash runway as we continue to move the Neutrolin® development program forward.”
The New Jersey Technology Business Tax Certificate Transfer (NOL) program enables qualified, unprofitable NJ-based technology or biotechnology companies with fewer than 225 U.S. employees (including parent company and all subsidiaries) to sell a percentage of net operating losses and research and development (R&D) tax credits to unrelated profitable corporations. NOLs and R&D tax credits may be sold for at least 80 percent of their value, up to a maximum lifetime benefit of $15 million per business. This allows qualifying technology and biotechnology companies with NOLs to turn their tax losses and credits into cash proceeds to fund growth and operations, including research and development or other allowable expenditures.
