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Maui Imaging Secures $4M DOD Contract, Emerges from Stealth

Maui Imaging, a Tucson-based startup, has emerged from stealth mode with a $4 million DOD contract. The company has been building an ultrasound system capable of visualizing the anatomy that others cannot.

MAUI was founded in 2006, bringing together experts in the fields of sonar, radar, electrical engineering, and medical imaging. With experts in line, the startup began their research, building their breakthrough Computed Echo Tomography (CET).

Since their founding, they have achieved more than 160 U.S. and international patents. Their latest, FDA cleared product has caught the attention of the Department of Defense. Their K3900 imaging system is being tested to aid military medical personnel in diagnosing and treating traumatic injuries.

One crucial application being tested by the DOD and clinical studies is thanks to the technology’s ability to image through the skull without a significant fracture or surgically removing bone. This would be beneficial when soldiers need clinical insight but cannot access advanced imaging.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Holonym Foundation Secures $5.5M in Seed Funding for Human Keys

Delaware’s Holonym Foundation has announced a successful $5.5 million seed funding round. The round was led by Finality Capital and Paper Ventures, with participation from Arrington Capital, Draper Dragon, Lightshift and more.

The startup is building the next generation of digital identity security for a decentralized web. The idea? To build the core principles needed to enable citizens with a digital identity to prove their personhood. How? Using cryptography.

Cryptographic keys secure every digital interaction on the internet. Holonym plans to use this premise in a more sophisticated way. Their “Human Keys” approach turns humans into keys rather than creating private keys from random phrases. This new framing shifts ownership of digital assets from the holder of a random seed, to the human that can uniquely prove their biometrics. Human Keys make the ownership layers of the internet built on top more consumer-friendly, decentralized, and secure. This new framing shifts ownership of digital assets from the holder of a random seed, to the human that can uniquely prove their biometrics. Human Keys make the ownership layers of the internet built on top more consumer-friendly, decentralized, and secure.

Shady El Damaty, co-founder of Holonym, says this is just the start for the Holonym Foundation. “Human Keys will redefine how citizens interact with the internet by limiting the overreach of power and hardening individual rights with resilient decentralized protocols built on Zeronym and Mishti Network.”

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

NephSol Secures the Win at Alabama’s Launchpad Concept Pitch

Global Microbiology Industry Projected to Grow Due to R&D Expenditure and Innovation

NephSol Inc. has secured $25,000 after winning the concept stage of Alabama’s Launchpad Cycle 2 2024.

The company competed in a field of eight finalists on August 15. The Launchpad program is part of the Economic Development Partnership of Alabama (EDPA) in partnership with Innovate Alabama.

NephSol pitched their project which aims to revolutionize dialysis care with a headset designed to monitor cerebral blood flow during treatments. The company aims to reduce severe side effects and mortality rates associated with dialysis due to decreased blood flow in the brain.

“Winning Alabama Launchpad is the next big step for our company,” said Sydeny Ringold, co-founder of NephSol. “It means we will be able to complete our regulatory process filings – a step needed for a medical device company. We are beyond excited to finally check that off, move forward and potentially go to market very quickly.”

Each finalist company received two months of intensive mentorship, through both one-on-one and group session training with startup founders and business experts, to prepare for the finale judging panels.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Alaska Airlines Invests in JetZero

Stratodynamics Shows Pomise in Unmanned Aerial Turbulence Detection

JetZero has secured new investment funding from Alaska Airlines. The aircraft engineering startup is developing a blended-wing aircraft design to reduce carbon emissions and fuel burn by as much as 50%.

The investment came through Alaska Airlines’ venture capital subsidiary Alaska Star Ventures includes options for future aircraft orders. The total value of the investment has not been revealed.

The blended-wing design combines the winds with the fuselage, creating a smoother overall shape which reduces drag and weight. The design also affords extra width in the fuselage which opens up possibilities for cabin layouts.

“At Alaska, we are always looking for ways to innovate and shape the future of air travel for our guests, employees, and industry,” said senior vice president of public affairs and sustainability Diana Birkett Rakow. “We are proud to invest in JetZero’s development of this innovative next-generation aircraft, with a significant step-change in fuel efficiency.”

Long Beach-based JetZero was founded in 2021 by Mark Page, who led the first NASA-funded blended-wing design initiative, and by Tom O’Leary, former COO of electric air taxi startup Beta Technologies. JetZero is targeting a 2030 launch for its aircraft.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Rotor Technologies is Bringing the Two Largest Commercial Drones to Market

Rotor Technologies, Inc. has announced the launch of the world’s two largest commercial drones. The startup, which is based in New Hampshire, was founded by a team of MIT aerospace engineers to develop and manufacture the most capable commercial UAVs possible.

The new drones, named Airtruck and Sparyhawk, have been based on the Robinson R44 helicopter airframe – which is a four-seat light helicopter commercialized in 1992. The drone design, however, has adapted the R44 frame to support lifting cargo and spraying crops, all while remotely operated.

Airtruck is a general utility drone able to move up to 1,000 lb (453 kg) of cargo, while Sprayhawk has been conceived as an agricultural UAV, carrying a 110-gallon tank for crop dusting.

Rotor Technologies, which is collaborating with helicopter manufacturer Robinson to develop the two drones, plans to build some 25 units per year of the two models (15 Sprayhawks and 10 Airtrucks) at its New Hampshire plant.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Senate Fails to Pass Bill to Reinstate R&D Deduction

Six months ago, we watched a bipartisan tax bill fly through the House with overwhelming support. Now, we’ve seen it fail in the Senate with a vote to end debate coming in at 48-44.

The Tax Relief for American Families and Workers Act (HR.7024), sponsored by House Ways and Means Chair Jason Smith (R-MO) and Senate Finance Chair Ron Wyden (D-OR), tied together three provisions. First, and most important to us, the bill would have revived expired tax provisions to reinstate R&D expense deductions. The other provisions included expanding the low-income housing tax credit, child tax credit, and cutting off the employee-retention tax credit.

On August 1, the Senate floor vote was held and only three Republicans voted in favor: Senators Josh Hawley (R-MO), Markwayne Mullin (R-OK), and Rick Scott (R-FL).

Senator Maggie Hassan (D-NH) has made clear her disappointment in the bill not passing and R&D deduction being passed over. She added “I am going to continue to work across party lines to pass my bipartisan measure to restore the full R&D tax deduction and cut taxes for hard-working families.”

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Kansas Updates State R&D Tax Credit

Kansas has long offered a state R&D tax credit for C corporations. Now, recent changes will see this credit opened up to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.

The original credit came into effect for all taxable years beginning after Dec. 31 1987. This new, expansive credit will be available to all income taxpayers beginning in tax year 2023.

Summary of Recent Changes

The first big change includes opening the credit to all income taxpayers, rather than simply C corporations.

The second change is the inclusion of an application prior to claiming the credit using form K-204. This form must be submitted along with a copy of the federal Form 6765 and any substantiating data.

In the third change, for tax year 2023 and on, new R&D tax credits can be transferred by a taxpayer without any tax liability to any person. The credit must be transferred in full and only one time. The recipient may then carry the credit forward as needed.

The credit will increase from 6.5% to 10%.

The Credit

The Kansas state credit follows in line with the federal regulations in the Internal Revenue Code of 1986. This means qualified research expenditures are those expenses for activities intended to discover information that eliminates technical uncertainty when developing or improving a product, process, technique, formula, or invention.

Of course, there are some limitations. The research must be conducted in the state and the expenses made in the state of Kansas. In addition, qualified research expenditures must fall within the following categories:

Staff time spent designing or conducting technical experimentation or development
Domestic contractors in the state performing development work on behalf of the company
Consumable materials and supplies (e.g. for prototypes)
Cloud-based software licensing fees or technical hosting costs associated with development

The credit is 6.5% of the difference between the actual qualified R&D expenses for the year and the average of the actual expenditures made in a prior year baseline period. For all taxable years commencing after December 21, 2022, the credit will be 10% of the difference.

The Preapproval Application Form K-204

The new K-204 (Research and Development Credit Application) is designed as a means to obtain approval and certification. The taxpayer must specify any shareholders, partners, or members whom the credit will flow through to. In addition, the form requests information for each type of expenditure and the computation for the credit.

Once submitted, the state will review the application and, if approved, provide a tax credit certificate number, which can be entered on the new K-53.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

US Government Launches $1.6B Advanced Chip R&D Competition

The Commerce Department has announced plans for a $1.6 billion advanced chip R&D competition. This CHIPS for America program will make awards of around $150 million each to promote private sector investment in five research areas.

The money will come through the 2022 Chips and Science Act in an effort to accelerate the US’s expertise in advanced packaging. Advanced packaging technology is in high demand now with advances in semiconductor technology powered by the growth of artificial intelligence applications and microelectronics. Currently, this market is dominated by Asian countries, and the US is estimated to control just 3% of the world’s capacity.

The US government outlined its vision for boosting its advanced chip capabilities in the National Advanced Packaging Manufacturing Program (NAPMP), which was unveiled last year. It has already handed out financial incentives to companies such as Intel , SK Hynix, Amkor and Samsung to boost the domestic advanced packaging sector.

With this new announcement the US Commerce Department is targeting five R&D areas:

Equipment, tools, processes, and process integration
Power delivery and thermal management
Connector technology, including photonics and radio frequency (RF)
Chiplets ecosystem
Co-design/electronic design automation (EDA)

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Illinois is Extending their State R&D Tax Credit

Governor JB Pritzker has signed a package of economic development legislation into law, extending their existing R&D tax credit and implementing a new tax credit for quantum computing.

The R&D tax credit will be extended to any tax year ending before January 1, 2032. Under the preexisting law, the credit could be claimed for any tax year ending before Jan. 1, 2027, according to the bill.

The state credit provides a non-refundable credit against the regular income tax for increasing research activities in Illinois in an amount equal to 6.5% of qualifying expenditures. Qualifying expenditures” means qualifying expenditures as defined for the federal credit for increasing research activities that would be allowed under IRC § 41 and that are conducted in Illinois.

Quantum Computing

The state is focused on becoming a home to quantum computing innovation by designating a “quantum campus” somewhere in the state. Businesses in that area would receive tax breaks on construction, materials purchase and use taxes, similar to an existing enterprise zone program.

This is tied to $500 million in capital funding that was approved earlier this month as part of the state’s budget for the upcoming fiscal year. That includes $100 million in funding for construction at the site, $200 million for a cryogenic facility and $200 million in matching funds for federal grant programs. That’s on top of $200 million the state spent on quantum computing four years ago.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Zephyr AI: Pioneering the Future of Precision Medicine

Alaska Patent of the Month - September 2021

In the dynamic world of healthcare, a McLean-based startup, Zephyr AI, is making waves with its groundbreaking approach to precision medicine and a newly successful funding round. Established in 2020, Zephyr AI is on a mission to democratize personalized treatment by harnessing the power of artificial intelligence (AI) to extract meaningful insights from complex healthcare data.

Zephyr AI’s innovative algorithms aim to address a pressing need in the medical field: the ability to deliver precise, individualized treatments without waiting for the next generation of high-fidelity data. As Jeff Sherman, co-founder and interim CEO, emphasizes, the company operates with a sense of urgency to provide solutions for patients today.

Precision medicine, the focus of Zephyr AI, tailors medical management decisions to the unique genomic, environmental, and lifestyle factors of each patient. This approach promises to transform the treatment landscape for diseases such as cancer and heart disease by offering targeted and effective therapies.

In a significant milestone, Zephyr AI secured $111 million in a Series A funding round in March, attracting investments from prominent entities like Revolution Growth and Eli Lilly & Co. This funding is set to accelerate the development of their AI-driven algorithms and expand their capacity to analyze vast datasets for more nuanced medical insights.

The company was co-founded by industry visionaries Grant Verstandig and Yisroel Brumer, who bring a wealth of experience from healthcare and defense sectors. Under their leadership, Zephyr AI is gearing up to significantly expand its team, particularly in science, engineering, and business development.

A key factor in Zephyr AI’s success has been its ability to demonstrate the real-world effectiveness of its algorithms. During investor demos, the company showcased how their technology can distinguish between patients with similar clinical profiles who respond differently to treatments. This capability underscores the potential of AI to revolutionize personalized medicine by ensuring that patients receive the most effective therapies based on their unique characteristics.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.