Ocean Power Technologies Inc (NYSE-A:OPTT) announced that it has received a $1.1 million preliminary award from the New Jersey Economic Development Authority Technology Business Tax Certificate Transfer Program, commonly known as the Net Operating Loss (NOL) Program.
This program allows technology and life sciences companies in New Jersey to sell a portion of their state net operating losses and unused research and development (R&D) tax credits to unrelated profitable businesses in exchange for cash.
The company said the non-dilutive funding is a “significant resource” as it progresses towards profitability.
It added that the award shows the value of the company’s net operating losses and unused R&D tax credits and the need to protect these assets so OPT can benefit from future monetizing opportunities.
The company participates in the NOL program annually and received a $1.2 million award under the 2023 program.
OPT delivers smart maritime solutions and services designed to make ocean operations safer, cleaner, and more efficient across sectors such as defense and security, oil and gas, science and research, and offshore wind.
Shares of OPT were around 7.2% higher on Wednesday afternoon.
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