Ocean Power Technologies Inc (NYSE-A:OPTT) (OPT) told investors it has received a $1.2 million grant award from the New Jersey Economic Development Authority (NJEDA).
The company, in a statement, highlighted that the grant program is designed to assist technology and life sciences businesses in New Jersey, and it enables these companies to convert a portion of their net operating losses and unused research and development (R&D) tax credits into cash, by selling them to unrelated profitable corporations.
It noted that the mechanism has been utilized previously by OPT, and it represents a vital resource in the company’s progress toward financial profitability.
“The receipt of this award demonstrates the potential value of the company’s net operating losses and unused R&D tax credits and the need to preserve these potentially valuable assets and thereby preserve OPT’s ability to participate in future value-enhancing monetization opportunities,” the company said.