Business
IMUNON Receives $1.6 Million from Sale of its New Jersey Net Operating Losses
Non-dilutive funding strengthens balance sheet and extends current operating runway into 2025The sale of an additional $1.8 million of unused New Jersey NOLs
About this update from Imunon, Inc.
[{"type":"text","content":"Non-dilutive funding strengthens balance sheet and extends current operating runway into 2025The sale of an additional $1.8 million of unused New Jersey NOLs expected in 2023 LAWRENCEVILLE, NJ, Jan. 12, 2023 (GLOBE NEWSWIRE) -- IMUNON, Inc. (NASDAQ: IMNN), a clinical-stage drug development company today announced it has received $1.6 million in net cash proceeds from the sale of approximately $1.7 million of its unused New Jersey net operating losses (NOLs). The NOL sales cover the tax year 2021 and are administered through the New Jersey Economic Development Authority’s (NJEDA) Technology Business Tax Certificate Transfer (NOL) program. This non-dilutive funding further strengthens the Company’s balance sheet. The Company plans to sell an additional $1.8 million of unused New Jersey NOLs available to the Company under the program in 2023. Based on current budget projections, the Company anticipates the current cash balance coupled with future sales of its unused NOLs to be sufficient to fund its operations and clinical development programs into 2025. The Technology Business Tax Certificate Transfer administered by the NJEDA enables qualified companies to sell up to $20 million of their unused New Jersey net operating losses and R&D tax credits to unaffiliated, profit-generating corporate taxpayers in the state of New Jersey. The economic development program is designed to allow technology and biotechnology companies with NOLs to turn their tax losses and credits into cash proceeds to fund more R&D, expand its workforce, and cover other allowable expenditures. IMUNON is one of several biotechnology/technology companies to qualify in this competitive process to share in the funding this year. “In light of the challenging capital markets, this program offered by the NJEDA provides IMUNON with investor-friendly ways to finance its clinical development programs and vaccine research initiative,” said Jeffrey W. Church, IMUNON’s executive vice president and CFO. “Balancing the high cost of research and drug development with a focus on our shareholders is reflected in the sale of over $18 million of unused New Jersey NOLs over the past five years. We appreciate the support of the NJEDA and applaud their efforts to foster continued investment and growth for businesses in New Jersey and plan to fully participate in this program to sell t...