Corrections or additions?
This article was prepared for the
December 12, 2001 edition of U.S. 1 Newspaper. All rights
reserved.
How Red Ink Can Become Good News
Here is a case where red ink means good news. This
year nearly 40 high tech Princeton companies raised cash by selling
their tax losses to other businesses. They successfully applied to
New Jersey’s Technology Business Tax Certificate Transfer Program,
which made $40 million available to 118 businesses.
Now in its third year, the Technology Business Tax Certificate
Transfer
Program “has proven increasingly popular as an innovative means
to support the growth of high-technology businesses in New
Jersey,”
says Caren S. Franzini, the New Jersey Economic Development
Authority’s executive director. The NJEDA administers the program
in conjunction with the state taxation division and the Commission
on Science and Technology.
“Spearheaded initially by the state’s biotech industry, this
program
has become an extremely effective financing tool for high-technology
companies needing to bring products to market and attract
investors,”
she says. Approvals increased from 91 companies last year to 118
approved
companies this year, including 73 from returning companies and 45
new ones.
Could your company get transfer credits?
To be eligible, the company must have a new or expanding technology
or biotechnology and have no more than 225 employees. At least 75
percent of the employees must work in New Jersey, and the company
must do a major part of its business in New Jersey. Companies can
keep on applying every year until they reach a lifetime cap of $10
million.
It’s as if a minimum wage earner who pays no income tax could sell
her deductions to someone in a high tax bracket. Technology companies
can take research and development tax credits to offset the nine
percent
corporate tax, but young companies are so poor they aren’t paying
that tax.
Under the law passed three years ago, the young and poor firm can
sell the tax credit to the more profitable firm. The bigger company
pays at least 75 percent of the value of the credit but gets to take
100 percent off its state tax. The small company can use the proceeds
mostly for fixed assets but also for salaries and working capital.
Another potential deduction that can be sold is the one for net
operating
loss.
Among the major buyers for these credits are the Bank of New York,
PSE&G, Tiffany and Company, the New York Times Company, BNY Capital
Markets Inc., Comcast Cablevision of New Jersey, and Merrill Lynch
Professional Clearing Corp.
Applications for next year are due June 30. For a detailed guide to
EDA programs, “The Power to Help New Jersey Business Grow,”
call 609-292-1800 or write to NJEDA, Box 990, Trenton 08625, or go
to www.njeda.com. The site has a clickable map locating
EDA projects by county and a questionnaire that helps companies figure
out what programs might work in their business.
— Barbara Fox
Of the successful applications, nearly 40 are from Central Jersey:
Computers: Hardware
Fullcomm Inc., 110 West Franklin Avenue, StraubeCenter, Pennington 08534. Founded 1998. Staff size: 4. 609-730-9900.Home page: www.fullcomm.comA digital security solutions provider — security hardwaretechnology,and encryption for digital data.Internet SalesDigital Demographics, 41 Bayard Street, NewBrunswick08901. 732-296-8885. Home page: www.recommend-it.comInternet advertising and marketing.Dotphoto.com, 800 Silvia Street, Ewing 08628.Founded2000. Staff size: 8. 609-434-0340. Home page: www.dotphoto.comPhoto processing site with voice captions.Panama Tech, 5 Independence Way, Princeton 08540.609-514-5174.Business to business E-commerce.Multi-MediaPrinceton Teaching Associates Software Inc., Ewing08628. Founded 1994. Staff size: 5. 609-883-2266. Home page:www.ptas.com(PTAS) educational software developer and multimedia producer, withmultimedia SAT prep CD software.Princeton Video Image (PVI), 15 and 11 PrincessRoad, Lawrenceville 08648. Founded 1990. Staff size: 71. 609-912-9400.Home page: www.pvimage.comDevelopment, manufacturing, and sales of hardware and software forvideo processing for television advertising production.SoftwareDatamark Technologies, 681 Route 1 South,TechnologyCenter of New Jersey, North Brunswick 08902. Founded 1992. Staff size:25. 732-873-5322. Home page: www.datamarktech.comDevelopment and management of electronic customer loyalty and storedvalue programs for retail, hospitality, telecommunications andconsumerproducts.Knowledge Window Inc., 4365 Route 1, Suite 210,Princeton 08540. Founded 1987. Staff size: 18. 609-514-5000. Homepage: www.knowledgewindow.comDistance learning software solutions.Voxware Inc., 168 Franklin Corner Road, Suite 3,Lawrenceville 08648. Founded 1993. Staff size: 10. 609-514-4100.Home page: www.voxware.comProvider of integrated voice-based solutions for distribution andlogistics operations.EnvironmentalEnvirogen, 4100 Quakerbridge Road, Lawrenceville08648. Founded 1988. Staff size: 70. 609-936-9300. Home page:www.envirogen.comToxic and hazardous waste cleanup, bioremediation technology R&D,vapor extraction systems, and on-site removal of organic contaminantsfrom soils and groundwater.Medical Productsi-STAT Corporation, 104 Windsor Center Drive, EastWindsor 08520. Founded 1984. Staff size: 150. 609-443-9300. Home page:www.i-stat.comDiagnostic blood analysis equipment manufacturing. It just signeda $30 million financing with Cerberus Capital Management LP.ManufacturingOcean Power Technologies, 1590 Reed Road, BuildingA, Suite 1, Pennington 08534. Founded 1984. Staff size: 12.609-730-0400.Home page: www.oceanpowertech.comDevelopment, manufacture, and sales of equipment to generateelectricalpower using ocean waves and currents.Quantem Corporation, 1457 Lower Ferry Road, Box7599, Trenton 08628. Founded 1974. Staff size: 25. 609-883-9191.Thermal sensing and control devices.Systech Solutions Inc., 7 Clarke Drive, Cranbury08512. Founded 1985. Staff size: 40. 609-395-8400. Home page:www.systech-tips.comManufacturer of automated inspection systems — bar code readingmachines, automation systems, manufacturing systems controls. Winnerof private company of the year award for 2001 from New JerseyTechnologyCouncil.WorldWater Corp., 55 Route 31 South, PenningtonBusiness Park, Pennington 08534. Founded 1984. Staff size: 20.609-818-0700.Home page: www.worldwater.comSupplier of renewable energy and remote water supply for emergingnations, designing, developing and marketing proprietary technology.High Tech ManufacturingAriel Corp., 2540 Route 130, Cranbury 08512;Founded1982. 609-860-2900. Home page: www.ariel.comEngineering, development, and manufacturing of digital signalprocessors.Laser Energetics Inc., 4044 Quakerbridge Road,Mercerville 08619. Founded 1991. Staff size: 30. 609-587-8250. Homepage: www.laserenergetics.comLaser processors.PharmaceuticalAnthra Pharmaceuticals, 103 Carnegie Center, Suite102, Princeton 08540. Founded 1985. 609-924-2680.Anthracylines for chemotherapy.Xechem Inc./Xechem International, 100 JerseyAvenue,New Brunswick 08901-3279; Founded 1990. Staff size: 12. 732-247-3300.Home page: www.xechem.comResearch, development, and production of generic and proprietarydrugs,including ginseng and melatonin products, also Xetapharm foralternativemedicines.Aesgen Inc., 2 Research Way, Princeton 08540.Founded1995. Staff size: 8. 609-419-1090.Identification, development, and marketing of pharmaceutical productsprimarily generated by research at the Mayo Clinic.Gynetics Inc., 3371 Route 1, Suite 200,Lawrenceville08648. Founded 1995. Staff size: 5. 609-919-1931. Home page:www.gynetics.comDevelopment and marketing of drugs and devices to advance women’shealth, also www.preven.comHymedix Inc., 2245 Route 130, Suite 101, Dayton08810. Staff size: 12. 732-274-2288. Home page: www.hymedix.comCosmetics, proprietary hydrogels, drug delivery systems, wound careproducts, lubricious coatings, implants, sensors, etc.Morphochem/Small Molecule Therapeutics, 11 DeerPark Drive, Princeton Corporate Plaza, Suite 116, Monmouth Junction08852. Founded 1997. Staff size: 25. 732-274-2882. Home page:www.morphochem.comDrug development company, formerly Small Molecule Therapeutics,subsidiaryof Munich-based firm.Biotech R&DBiomira U.S.A. Inc., 1002 Eastpark Boulevard,Cranbury08512. Founded 1988. Staff size: 25. 609-655-5300. Home page:www.biomira.comResearch and development of immunotherapy products for treatingcancer,formerly OncoTherapeutics Inc., owned by Alberta-based firm.Cytogen Corporation, 600 College Road East, CN5308, Princeton 08543-5308; Founded 1981. Staff size: 45.609-987-8200.Home page: www.cytogen.comMarketing and development of products for targeted delivery ofdiagnosticand therapeutic substances directly to sites of disease.Delsys Pharmaceutical Corporation, 11 Deer ParkDrive, Monmouth Junction 08852. Founded 1997. Staff size: 50.732-329-3407.Home page: www.delsyspharma.comPrivately-held developer of automated drug manufacturing and drugdelivery systems through electrostatic dry powder, with a total of54 employees.Integra LifeSciences Corporation, 105 Morgan Lane,Box 688, Plainsboro 08536. Founded 1989. Staff size: 175.609-275-0500.Home page: www.integra-ls.comTissue and organ replacements, including artificial skin, cartilage,and nerve conduits.The Liposome Company/Elan Pharmaceutical, 1Research Way, Princeton Forrestal Center, Princeton 08540. Founded1981. Staff size: 150. 609-452-7060. Home page: www.lipo.comDevelopment of advanced liposomal drugs for the treatment of cancerand infectious diseases, also at 600 College Road and 4 CorporateDrive at Exit 8A.Orchid BioSciences Inc., 303 College Road East,Princeton 08543. Founded 1995. Staff size: 200. 609-750-2200. Homepage: www.orchid.comProduction services and technologies of single nucleotide polymorphism(SNP) scoring and genetic diversity analysis, with 300 employeesoverall.Palatin Technologies Inc., 103 Carnegie Center,Suite 200, Wing A, Princeton 08540. Staff size: 8. 609-520-1911. Homepage: www.palatin.comProducts for sexual dysfunction and appendicitis detection, alsoproductto facilitate ultrasound testing.Senesco Technologies Inc., 303 George Street, Suite420, New Brunswick 08901. Founded 1998. Staff size: 4. 732-296-8400.Home page: www.senesco.comAgrobiotechnology — developing gene technology to extend theshelf-lifeof produce.Chemical R&DBlackLight Power, 493 Edinburg Road, Cranbury08512.Founded 1986. Staff size: 28. 609-490-1090. Home page:www.blacklightpower.comResearch and development of novel hydrogen chemistry with applicationsof novel compounds and alternative power sources.Electronic R&DPrinceton Lightwave Inc., 2601 Route 130 South,Cranbury 08512. Founded 2000. Staff size: 80. 609-925-8100. Home page:www.princetonlightwave.comHigh performance optical components including high-power pump lasersand modules for advanced network applications.Medical Product R&DEchoCath Inc., 4326 Route 1 North, Box 7224,Princeton08543; Staff size: 15. 609-987-8400.Research and development of high tech medical devices, including anultrasound-guided angioplasty catheter.Other brand-new firms taking the tax credit areNet*Transportin Belle Mead, Ibyl.com in Princeton, MainStreet IPO inNorth Brunswick, and Luminide Pharmaceutical in Cranbury.Previous StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
