CytoSorbents secures $1.7M via NJ tax credit transfer

PRINCETON, N.J. - CytoSorbents Corporation (NASDAQ: CTSO) has bolstered its financial position by obtaining $1.7 million in cash proceeds through the New Jersey Technology Business Tax Certificate Transfer Program, as administered by the New Jersey Economic Development Authority (NJEDA). The transaction involves the sale of the company’s 2023 and amended 2022 Net Operating Loss (NOL) and Research & Development (R&D) tax credits.

The NJEDA’s program allows eligible technology and biotechnology businesses to sell their unused NOL and R&D tax credits to profitable corporate taxpayers within New Jersey. This exchange provides these businesses with non-dilutive funding that can be utilized for various allowable expenses, including purchasing equipment or facilities.

CytoSorbents’ Chief Financial Officer, Peter J. Mariani, expressed gratitude towards the NJEDA for the continued support which contributes to the company’s growth strategies. The funds are expected to aid in the U.S. and Canada launch preparations for DrugSorb™-ATR, expansion of manufacturing capabilities at their new Princeton facility, and other strategic initiatives.

The company had the opportunity to increase its available NOL for the program following New Jersey tax reform legislation enacted on July 3, 2023. This legislation, A.B. 5323, allowed for an immediate deduction of Research and Experimental (R&E) expenditures, retroactively applicable from January 1, 2022.

CytoSorbents is known for its blood purification technologies used in critical care and cardiac surgery. Their lead product, CytoSorb®, is distributed in over 70 countries and has been used in more than 270,000 instances worldwide. The company is currently seeking approval for DrugSorb™-ATR in the United States and Canada, which is designed to reduce perioperative bleeding associated with blood thinners during surgery. The company has demonstrated impressive revenue growth of 14.51% and maintains a robust gross profit margin of 70.59%. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other US equities.

This financial development comes as part of CytoSorbents’ ongoing efforts to advance its mission of developing and commercializing technologies aimed at saving lives. The information reported is based on a press release statement from CytoSorbents Corporation.

In other recent news, CytoSorbents Corporation reported its fourth-quarter 2024 financial results, highlighting a smaller-than-expected loss per share of $0.03, compared to the forecasted loss of $0.05. Despite this positive earnings per share (EPS) surprise, the company’s revenue for the quarter came in lower than anticipated at $9.15 million, against a forecast of $10.25 million. Product revenue saw a notable 25% increase year-over-year, contributing to the company’s improved financial performance. The gross margin for the quarter stood at 71%, and the operating loss improved by 47% to $16.7 million. CytoSorbents is also focusing on the strategic release of its DrugSorb ATR device, with regulatory decisions from the FDA and Health Canada expected in 2025. Additionally, the company has extended the expiration date of its Series B Right Warrants to June 10, 2025. Analyst firms such as H.C. Wainwright and Zacks Small Cap Research have shown interest in the company’s regulatory progress and financial strategies. These developments reflect CytoSorbents’ ongoing efforts to strengthen its market position and financial health.

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