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December 12, 2001 edition of U.S. 1 Newspaper. All rights


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


Program "has proven increasingly popular as an innovative means

to support the growth of high-technology businesses in New


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


has become an extremely effective financing tool for high-technology

companies needing to bring products to market and attract


she says. Approvals increased from 91 companies last year to 118


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


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


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



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 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, Straube

Center, Pennington 08534. Founded 1998. Staff size: 4. 609-730-9900.

Home page:

A digital security solutions provider — security hardware


and encryption for digital data.

Internet Sales

Digital Demographics, 41 Bayard Street, New


08901. 732-296-8885. Home page:

Internet advertising and marketing., 800 Silvia Street, Ewing 08628.


2000. Staff size: 8. 609-434-0340. Home page:

Photo processing site with voice captions.

Panama Tech, 5 Independence Way, Princeton 08540.


Business to business E-commerce.


Princeton Teaching Associates Software Inc., Ewing

08628. Founded 1994. Staff size: 5. 609-883-2266. Home page:

(PTAS) educational software developer and multimedia producer, with

multimedia SAT prep CD software.

Princeton Video Image (PVI), 15 and 11 Princess

Road, Lawrenceville 08648. Founded 1990. Staff size: 71. 609-912-9400.

Home page:

Development, manufacturing, and sales of hardware and software for

video processing for television advertising production.


Datamark Technologies, 681 Route 1 South,


Center of New Jersey, North Brunswick 08902. Founded 1992. Staff size:

25. 732-873-5322. Home page:

Development and management of electronic customer loyalty and stored

value programs for retail, hospitality, telecommunications and



Knowledge Window Inc., 4365 Route 1, Suite 210,

Princeton 08540. Founded 1987. Staff size: 18. 609-514-5000. Home


Distance learning software solutions.

Voxware Inc., 168 Franklin Corner Road, Suite 3,

Lawrenceville 08648. Founded 1993. Staff size: 10. 609-514-4100.

Home page:

Provider of integrated voice-based solutions for distribution and

logistics operations.


Envirogen, 4100 Quakerbridge Road, Lawrenceville

08648. Founded 1988. Staff size: 70. 609-936-9300. Home page:

Toxic and hazardous waste cleanup, bioremediation technology R&D,

vapor extraction systems, and on-site removal of organic contaminants

from soils and groundwater.

Medical Products

i-STAT Corporation, 104 Windsor Center Drive, East

Windsor 08520. Founded 1984. Staff size: 150. 609-443-9300. Home page:

Diagnostic blood analysis equipment manufacturing. It just signed

a $30 million financing with Cerberus Capital Management LP.


Ocean Power Technologies, 1590 Reed Road, Building

A, Suite 1, Pennington 08534. Founded 1984. Staff size: 12.


Home page:

Development, manufacture, and sales of equipment to generate


power using ocean waves and currents.

Quantem Corporation, 1457 Lower Ferry Road, Box

7599, Trenton 08628. Founded 1974. Staff size: 25. 609-883-9191.

Thermal sensing and control devices.

Systech Solutions Inc., 7 Clarke Drive, Cranbury

08512. Founded 1985. Staff size: 40. 609-395-8400. Home page:

Manufacturer of automated inspection systems — bar code reading

machines, automation systems, manufacturing systems controls. Winner

of private company of the year award for 2001 from New Jersey



WorldWater Corp., 55 Route 31 South, Pennington

Business Park, Pennington 08534. Founded 1984. Staff size: 20.


Home page:

Supplier of renewable energy and remote water supply for emerging

nations, designing, developing and marketing proprietary technology.

High Tech Manufacturing

Ariel Corp., 2540 Route 130, Cranbury 08512;


1982. 609-860-2900. Home page:

Engineering, development, and manufacturing of digital signal


Laser Energetics Inc., 4044 Quakerbridge Road,

Mercerville 08619. Founded 1991. Staff size: 30. 609-587-8250. Home


Laser processors.


Anthra Pharmaceuticals, 103 Carnegie Center, Suite

102, Princeton 08540. Founded 1985. 609-924-2680.

Anthracylines for chemotherapy.

Xechem Inc./Xechem International, 100 Jersey


New Brunswick 08901-3279; Founded 1990. Staff size: 12. 732-247-3300.

Home page:

Research, development, and production of generic and proprietary


including ginseng and melatonin products, also Xetapharm for



Aesgen Inc., 2 Research Way, Princeton 08540.


1995. Staff size: 8. 609-419-1090.

Identification, development, and marketing of pharmaceutical products

primarily generated by research at the Mayo Clinic.

Gynetics Inc., 3371 Route 1, Suite 200,


08648. Founded 1995. Staff size: 5. 609-919-1931. Home page:

Development and marketing of drugs and devices to advance women’s

health, also

Hymedix Inc., 2245 Route 130, Suite 101, Dayton

08810. Staff size: 12. 732-274-2288. Home page:

Cosmetics, proprietary hydrogels, drug delivery systems, wound care

products, lubricious coatings, implants, sensors, etc.

Morphochem/Small Molecule Therapeutics, 11 Deer

Park Drive, Princeton Corporate Plaza, Suite 116, Monmouth Junction

08852. Founded 1997. Staff size: 25. 732-274-2882. Home page:

Drug development company, formerly Small Molecule Therapeutics,


of Munich-based firm.

Biotech R&D

Biomira U.S.A. Inc., 1002 Eastpark Boulevard,


08512. Founded 1988. Staff size: 25. 609-655-5300. Home page:

Research and development of immunotherapy products for treating


formerly OncoTherapeutics Inc., owned by Alberta-based firm.

Cytogen Corporation, 600 College Road East, CN

5308, Princeton 08543-5308; Founded 1981. Staff size: 45.


Home page:

Marketing and development of products for targeted delivery of


and therapeutic substances directly to sites of disease.

Delsys Pharmaceutical Corporation, 11 Deer Park

Drive, Monmouth Junction 08852. Founded 1997. Staff size: 50.


Home page:

Privately-held developer of automated drug manufacturing and drug

delivery systems through electrostatic dry powder, with a total of

54 employees.

Integra LifeSciences Corporation, 105 Morgan Lane,

Box 688, Plainsboro 08536. Founded 1989. Staff size: 175.


Home page:

Tissue and organ replacements, including artificial skin, cartilage,

and nerve conduits.

The Liposome Company/Elan Pharmaceutical, 1

Research Way, Princeton Forrestal Center, Princeton 08540. Founded

1981. Staff size: 150. 609-452-7060. Home page:

Development of advanced liposomal drugs for the treatment of cancer

and infectious diseases, also at 600 College Road and 4 Corporate

Drive at Exit 8A.

Orchid BioSciences Inc., 303 College Road East,

Princeton 08543. Founded 1995. Staff size: 200. 609-750-2200. Home


Production services and technologies of single nucleotide polymorphism

(SNP) scoring and genetic diversity analysis, with 300 employees


Palatin Technologies Inc., 103 Carnegie Center,

Suite 200, Wing A, Princeton 08540. Staff size: 8. 609-520-1911. Home


Products for sexual dysfunction and appendicitis detection, also


to facilitate ultrasound testing.

Senesco Technologies Inc., 303 George Street, Suite

420, New Brunswick 08901. Founded 1998. Staff size: 4. 732-296-8400.

Home page:

Agrobiotechnology — developing gene technology to extend the


of produce.

Chemical R&D

BlackLight Power, 493 Edinburg Road, Cranbury


Founded 1986. Staff size: 28. 609-490-1090. Home page:

Research and development of novel hydrogen chemistry with applications

of novel compounds and alternative power sources.

Electronic R&D

Princeton Lightwave Inc., 2601 Route 130 South,

Cranbury 08512. Founded 2000. Staff size: 80. 609-925-8100. Home page:

High performance optical components including high-power pump lasers

and modules for advanced network applications.

Medical Product R&D

EchoCath Inc., 4326 Route 1 North, Box 7224,


08543; Staff size: 15. 609-987-8400.

Research and development of high tech medical devices, including an

ultrasound-guided angioplasty catheter.

Other brand-new firms taking the tax credit are


in Belle Mead, in Princeton, MainStreet IPO in

North Brunswick, and Luminide Pharmaceutical in Cranbury.

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