NetScientific PLC (LON:NSCI) said its portfolio firm, PDS Biotechnology Corp (NASDAQ:PDSB), it which it owns a 5.75% stake, has received US$4.5mln from the net sale of tax benefits to an unrelated, profitable New Jersey corporation pursuant to the company's participation in the New Jersey Technology Business Tax Certificate Transfer Net Operating Loss (NOL) program for 2020.
The NOL program enables qualified, unprofitable NJ-based technology or biotechnology companies with fewer than 225 employees to sell a percentage of net operating losses and research and development (R&D) tax credits to unrelated profitable corporations, allowing qualifying firms with NOLs to turn their tax losses and credits into cash proceeds to fund growth and operations.
"We are pleased to receive an allocation from the New Jersey NOL program. The funding will be beneficial to us as we continue to efficiently utilize our resources to advance our immuno-oncology pipeline through development," PDS president and chief executive Frank Bedu-Addo said in a statement.
"We are pleased at PDS' successful sale of historical losses for a substantial amount. This is a great example of a NetScientific portfolio company using non-dilutive sources of funding to further its growth objectives," added NetScientific chief executive Ilian Iliev.
Shares in NetScientific rose 1.9% to 55p in early deals on Tuesday.