CytoSorbents Corporation Secures $1.7 Million Via New Jersey Tax Program

CytoSorbents Corporation Secures Critical Funding Through New Jersey Tax Initiative

CytoSorbents Corporation, listed on NASDAQ as CTSO, is at the forefront of advanced medical treatments for life-threatening conditions, particularly within ICUs and during cardiac surgeries via blood purification technology. Recently, the company has announced a significant financial boost totaling about $1.7 million. This funding comes from their participation in the New Jersey Technology Business Tax Certificate Transfer Program, a strategic initiative endorsed by the New Jersey Economic Development Authority (NJEDA).

This program allows technology and biotech enterprises, such as CytoSorbents, to convert unused Net Operating Losses (NOL) and Research and Development (R&D) tax credits into non-dilutive funding. The most recent announcement highlights the sale of their 2022 amended NOLs and R&D tax credits, enabling CytoSorbents to fortify their cash reserves without diluting shareholder equity.

In a statement from Peter J. Mariani, the Chief Financial Officer of CytoSorbents, he expressed gratitude for the collaboration with NJEDA, emphasizing the importance of this funding in enhancing their financial foundation. Mariani stated, "This funding will assist us in our growth endeavors, particularly in preparations for the anticipated market launch of our DrugSorb™-ATR in the U.S. and Canada. It will also support the scaling of our manufacturing capabilities at our new facility in Princeton."

The NJEDA program has proven invaluable for companies holding substantial tax credits and losses, allowing them to translate these financial statements into immediate cash flow. This initiative represents a broad effort by New Jersey to stimulate growth within its biotech sector, catering to businesses that might otherwise struggle with early-stage funding shortages.

On a legislative front, a significant change occurred with the enactment of tax reform legislation in New Jersey on July 3, 2023. This new legislation allows taxpayers to immediately deduct Research and Experimental expenditures from their taxable income for which an R&D credit is claimed, thus benefiting companies like CytoSorbents. This reform led to modifications in their 2022 tax filing, thereby increasing the available NOL storage for the current NJEDA funding cycle.

CytoSorbents is recognized for its innovative proprietary blood purification technology, comprising biocompatible and highly porous polymer beads. These beads play a critical role in clinical applications by enabling the removal of harmful substances from blood during various medical procedures. Not only does this technology serve to mitigate bleeding risks during cardiothoracic surgeries by removing blood thinners, but it also targets inflammatory agents that exacerbate critical illnesses.

The company’s flagship product, CytoSorb®, is currently approved for use in the European Union and is distributed across 70 countries. This product holds the distinction of being the first cytokine adsorber to gain CE mark certification. Additionally, CytoSorbents is on the brink of launching its anticipated investigational DrugSorb™-ATR device in North America, aimed at enhancing safety during surgeries that require antithrombotic drugs for patients.

With the financial backing from the NJEDA program, CytoSorbents is poised to solidify its leadership in blood purification technologies. Their ongoing commitment to research and innovation in this domain ensures that they remain at the forefront of providing solutions for critical medical conditions, significantly contributing to the improvement of patient survival rates.

For more information and updates on their ongoing projects, partnerships, and technological advancements, stakeholders and interested parties are encouraged to visit the official CytoSorbents corporate website or follow their social media profiles.