On March 15, 2021 CorMedix Inc. (NASDAQ: CRMD), a biopharmaceutical company focused on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory disease, reported that it has been approved by the New Jersey Economic Development Authority (NJEDA) to transfer approximately $1.3 million of the total $1.3 million of its available tax benefits to an unrelated, profitable New Jersey corporation pursuant to the Company’s application to participate in the New Jersey Technology Business Tax Certificate Transfer (NOL) program for State Fiscal Year 2020 (Press release, CorMedix, MAR 15, 2021, View Source [SID1234576645]). The Company anticipates receiving approximately $1.3 million in cash proceeds from the sale of its NOLs during the second quarter of 2021. Closing is subject to NJEDA’s typical closing conditions, which are in process.
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"We are pleased to receive an allocation from this program for the third consecutive year," said Khoso Baluch, Chief Executive Officer of CorMedix. "The funding will help us continue to advance DefenCath toward an anticipated commercial launch upon approval for the U.S. market."
The 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. 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. CorMedix is one of 49 early-stage companies to share in approximately $54.5 million of tax credit transfers approved by NJEDA for the 2020 period.