CytoSorbents Receives Approximately $400,000 in Non-Dilutive Capital from the Sale of Net Operating Loss Carryovers
MONMOUTH JUNCTION, N.J., Jan. 29, 2013 /PRNewswire/ -- CytoSorbents Corporation (OTCBB:CTSO), a critical care focused company using blood purification to treat life-threatening illnesses, announced today that, as an approved participant of the Technology Business Tax Certificate Transfer Program sponsored by the New Jersey Economic Development Authority, it has received $391,562 from the sale of its prior unused net operating loss carryovers. These funds are non-dilutive to shareholders and will be used for working capital purposes.
Since the beginning of 2009, the Company has worked to specifically attain non-dilutive funding as a means to generate cash without issuing equity. In that period of time, the Company has been awarded approximately $6.5 million in non-dilutive grants, contract awards from DARPA and the U.S. Army, and net operating loss carryover awards. A significant portion of this $6.5 million still remains to be realized over the next few years, pending the successful achievement of our contract milestones under the Company's DARPA contract and pending U.S. Army Phase II SBIR contract, that is expected to help offset future cash needs.
About CytoSorbents Corporation
CytoSorbents Corporation is a critical care focused therapeutic device company using blood purification to treat life-threatening illnesses commonly seen in the intensive care unit such as sepsis and infection, influenza, severe lung injury, trauma, burn injury, and pancreatitis. Its advanced purification technology is based upon biocompatible, highly porous polymer beads that can efficiently remove toxic substances from blood and other bodily fluids. The Company's flagship product CytoSorb®, a first-in-class extracorporeal cytokine filter compatible with standard hemodialysis machines, has achieved European Union CE Mark regulatory approval and is now being commercialized in Europe. The goal of the CytoSorb® cytokine filter is to prevent or treat multiple organ failure, the leading cause of death in the intensive care unit, by reducing the excessive production of cytokines, or "cytokine storm", that could otherwise lead to deadly inflammation, organ injury, and death. Multiple organ dysfunction syndrome and acute organ failure represents one of the most serious unmet medical needs in modern medicine, claiming millions of lives around the world, at a cost of hundreds of billions of dollars, each year. By actively addressing one of the most important underlying causes of acute organ failure, CytoSorb® represents a potentially revolutionary advance in the treatment of critical illnesses.
CytoSorbents has received funding from both DARPA and the US Army, and continues to invest significantly in its research and development pipeline. One of its most advanced products under development is HemoDefend, a blood purification technology platform for the blood transfusion industry intended to reduce transfusion reactions and improve the safety of "old" blood by removing many substances, such as antibodies, free hemoglobin and inflammatory mediators that can cause potentially serious and sometimes fatal transfusion reactions. CytoSorb® and HemoDefend are just two of a number of different polymers the Company has developed for various medical applications, including improved dialysis, reduction of post-surgical complications in cardiac surgery, treatment of inflammatory and autoimmune disorders, radio-imaging contrast removal in imaging and interventional radiology procedures, and the treatment of rhabdomyolysis, drug overdose, and others. Additional information is available for download on the Company's website: http://www.cytosorbents.com.
This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may differ materially from those expressed or implied by the statements herein. CytoSorbents Corporation and CytoSorbents, Inc believe that its primary risk factors include, but are not limited to: obtaining government approvals including required FDA and additional CE Mark approvals; ability to successfully develop commercial operations; dependence on key personnel; acceptance of the Company's medical devices in the marketplace; the outcome of potential litigation; compliance with governmental regulations; reliance on research and testing facilities of various universities and institutions; the ability to obtain adequate and timely financing in the future when needed; product liability risks; limited manufacturing experience; limited marketing, sales and distribution experience; market acceptance of the Company's products; competition; unexpected changes in technologies and technological advances; and other factors detailed in the Company's Form 10-K filed with the SEC on March 30, 2012, which is available at http://www.sec.gov.
Dr. Phillip Chan
Chief Executive Officer
(732) 329-8885 ext. *823
Alliance Advisors, LLC
(914) 669-0222 x201
SOURCE CytoSorbents Corporation