Arkansas Patent of the Month – August 2020

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Arkansas’ BioVentures has developed a method of diagnosing multiple myeloma, a type of blood cancer, through assessment of gene expression profiles. The American Cancer Society estimates that there will be about 32,270 cases of multiple myeloma in the U.S. this year, with around 12,830 expected deaths. BioVentures’ invention provides easier, more accurate prognoses for: (1) those that have this cancer, and (2) those suspected of developing it.

Invention

The multiple myeloma methods are based on gene expression profiling using:

  • enolase 1 (ENO1),
  • fatty acid binding protein 5 (FABP5),
  • thyroid hormone receptor interactor 13 (TRIP13),
  • transgelin 2 (TAGLN2), and
  • replication factor C (activator 1) 4 (RFC4).

The test quantifies the gene expression levels of each of these genes; an abnormal gene expression profile is a poor prognosis.

Application

For those who have this cancer, the gene expression levels can be tested at the protein level or the nucleic acid level, and are commonly tested on people undergoing myeloma therapy. A poor prognosis could mean a reduced likelihood of overall survival (OS) and/or a reduced likelihood of progression-free survival (PFS).

If a person is suspected of having multiple myeloma (but hasn’t yet been diagnosed), the gene expressions are tested from a nucleic acid sample, where again abnormal or elevated gene expression means a poor prognosis.

In either case, BioVentures’ aims to be able to also provide recommendations of treatments, based on the test results. For example, a poor prognosis (high risk myeloma) may indicate the need for a more aggressive myeloma therapy (either by adding treatments to a regimen and/or increasing the dose of treatments). Or, the best action may be a less aggressive treatment, focusing on patient comfort instead of eliminating disease. Alternatively, a favorable prognosis (low risk myeloma) can indicate that a more aggressive myeloma therapy can be avoided, withdrawn, or a more aggressive therapy may be used to attempt to eliminate disease.

Research Team

BioVentures was established as a formal outgrowth of the University of Arkansas for Medical Sciences‘ (UAMS). Its aim is to promote a biomedical technology industry for Arkansas and translate its research into products that benefit human health. It links the research minds at UAMS to global markets in order to advance Arkansas’ scientific and economic development.

Are you developing a new medical technique? Did you know your R&D experiments could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? 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.

Study Ranks Performance of Each State’s Economy Over The Past Decade

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The economy of the United States is the largest in the world by nominal gross domestic product (GDP) and the second-largest by purchasing power parity (PPP). During the past decade, in most of the US states, economy has improved considerably, but that is not to say every state’s economy is equally healthy. Some states are experiencing an economic boom, while others continue to contend with poor GDP growth, low per capita income, unemployment and poverty.

The Ohio Alliance for Innovation in Population Health conducted an analysis of the data collected by the Appalachian Regional Commission (ARC) for 2009 and 2019 and ranked the economic performance of all fifty states in the US. The results determined that the economies of the states such as New Hampshire, followed by North Dakota, turned out to be the healthiest over the past ten years, while the states such as Louisiana and Mississippi were regarded as the most economically distressed states. To be more precise, the most economically distressed states for 2019 were Georgia, Arkansas, South Carolina, Arizona, Kentucky, Alabama, West Virginia, New Mexico, Louisiana, and Mississippi. However, the results of the study should be interpreted with caution.

This is because, though ranked last and being labelled as the poorest state, Mississippi improved its economic distress index score of 153 in 2009 to 141.8 in 2019. The state witnessed an upsurge in nearly all income-related categories. But simultaneously, it also faced widespread weakness across the economy. Sectors shrinking included government, construction, entertainment, arts, agriculture, nondurable goods manufacturing and recreation. The state’s economic conditions weakened as compared to its growth in the past. The economy grew just 0.3% in 2017, compared to 2% growth in 2016. However this is expected to improve in 2018 and 2019.

It can be concluded that economic vitality can help communities remain competitive and adapt to the constantly changing world.

The Best and Worst CyberStates for 2017

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The Computing Technology Industry Association (CompTIA) is a leading not-for-profit technology association. Their 18th edition of the Cyberstates report aims to provide a representation of the size and scope of the US tech sector. The report analyses the industry and workforce by state and uses metrics such as tech patents, venture capital funding, business establishments and job postings.

Here is a summary of the results by state:

Tech Industry Employment

There were around 6.9 million US tech workers in 2016, up from 6.7 million in 2015.

Top 5

  1. California
  2. Texas
  3. New York
  4. Florida
  5. Massachusetts

Bottom 5

  1. Wyoming
  2. South Dakota
  3. Alaska
  4. North Dakota
  5. Montana

Tech Patents Granted

Top 5

  1. California
  2. Texas
  3. Washington
  4. New York
  5. Massachusetts

Bottom 5

  1. Alaska
  2. South Dakota
  3. Mississippi
  4. Montana
  5. West Virginia

Innovation Score Per Capita

The number of tech startups and new tech establishments grew to 36,508 in 2015. Many were IT services covering data processing, hosting and web search portals.

Top 5

  1. California
  2. Massachusetts
  3. Washington
  4. Colorado
  5. New Jersey

Bottom 5

  1. West Virginia
  2. Mississippi
  3. Arkansas
  4. South Dakota
  5. Ohklahoma

Tech Gross State Produce (GSP) As A Percent of Total State Product (in billions)

Top 5

  1. Oregon
  2. Washington
  3. Massachusetts
  4. California
  5. Colorado

Bottom 5

  1. Wyoming
  2. Louisiana
  3. Oklahoma
  4. Mississippi
  5. West Virginia

Average Tech Industry Wages Rank

The average tech sector wage was 105 percent higher than the average national wage of $53,130 in 2016.

Top 5

  1. California
  2. Washington
  3. Massachusetts
  4. New Jersey
  5. New York

Bottom 5

  1. South Dakota
  2. Mississippi
  3. Wyoming
  4. West Virginia
  5. Montana

The full report is available at Cyberstates.

US tech companies undertaking qualified activities can apply for the state and/or federal R&D tax credit. To check whether your projects meet the necessary criteria, contact a Swanson Reed representative today.

How Does Your State Rank on the Innovation Scale?

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Innovation Is Key

Innovation is crucial to sustainable economic growth, but for innovation to occur businesses must have both the incentive and the capacity to invest.

As innovation is key to the United States’ economy as a whole, many U.S. states are showing off while others are falling short when it comes to patents, R&D, venture capital and academics.

So which states are excelling in innovation and which ones are lacking, you ask?

Patents

The top states in patents per population include:

  1. Wisconsin
  2. Washington
  3. Texas
  4. Utah
  5. California
  6. Massachusetts

The bottom five patented states include:

  1. Alaska
  2. Mississippi
  3. Tennessee
  4. West Virginia
  5. Wyoming

Venture Capital

The top states for venture capital are:

  1. Massachusetts
  2. California
  3. Utah
  4. Washington
  5. Colorado

The lowest are:

  1. Arkansas
  2. Alaska
  3. Hawaii
  4. Wyoming
  5. Iowa
  6. South Dakota

R&D Spending

The leaders in R&D spending are:

  1. Delaware
  2. Michigan
  3. California
  4. Connecticut
  5. Massachusetts

The states that spent the least on R&D include:

  1. Arkansas
  2. Wyoming
  3. Louisiana
  4. Alaska
  5. Mississippi

Academics

As for academics, the top states include:

  1. New Mexico
  2. Maryland
  3. Rhode Island
  4. Massachusetts
  5. Alabama

The lowest academic rankings were for:

  1. Louisiana
  2. Arkansas
  3. Delaware
  4. Wyoming
  5. Nevada

If you are a U.S. based company conducting R&D you may be eligible for the federal and/or state research tax credit. Please contact a Swanson Reed representative to find out further information.

Research parks increasing technology and innovation in Arkansas

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Research parks within Arkansas are the first port of call for the Little Rock Chamber of Commerce, to gauge the current ecosystem within the state. Jay Chesshir from theChamber of Commerce, stated that the Chamber of Commerce is attempting to transform the state to become a leader in the fields of technology and innovation.

The Arkansas Research and Technology Park (ARTP) adjacent to the University of Arkansas, and the Arkansas Bio science Innovation and Commercial Center at Arkansas State University are the two current science parks within the state; with a new park under construction within central Arkansas.

The ARTP used innovative techniques to nurture technology-intensive companies. It attempted to stimulate the formation of a collaborative community of companies, together with university faculty and students at Fayetteville, linked interdependently around a set of core R&D research competencies at the university.

 Growing current expertise within research parks

In a highly competitive industry, the ARTP is an example of a community that has begun to create the next generation of electronic and photonic devices for biotechnology and related areas. These areas include transportation and logistics, in which Arkansas is a leader; materials and manufacturing; database software; telecommunications; and applied sustainability. Those are areas in which the ARTP is successful in terms of grants attracted and progress toward becoming a center of excellence.

 The state’s primary knowledge community

A major advantage for the ARTP is its location in northwest Arkansas, near the main university campus. As the state’s primary knowledge community, the Fayetteville area provided valuable fuel for the innovation and technology development activities of the ARTP. Two affiliates had received the prestigious Frost and Sullivan Award for excellence in technology, and another affiliate won the Tibbetts Award for the most innovative small business. Earlier in the year, another affiliate won an R&D 100 award, which cites Washington County as one of the most innovative in the country. ARTP affiliates, he said, continue to advance the frontier of product development in many specialty areas.

In central Arkansas, a group had engaged a consultant to review activities at the University of Arkansas for Medical Sciences and the University of Arkansas at Little Rock. The question they asked was: How can we take the research and innovation that is already here and make it stronger? For so long, he said, the state had suffered from brain drain as its best and brightest young scientists, engineers, and medical researchers sought opportunities elsewhere. How, they asked, could the region take advantage of local innovative talent and turn it into jobs for the area and the state as a whole.

In 2007, this effort was rewarded when the General Assembly voted to create a research park authority, a legislative opportunity that would permit anyone in the state to create a research park and design it for sustainability. That effort had moved forward, he said, and at the end of the month, the authority was scheduled to be finalized with the city of Little Rock and its partners in central Arkansas, with the goal of beginning construction by 2012.

$1 million donated to Innovation Hub fund for student startups

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The Delta Regional Authority has donated $1 million toward the Arkansas Regional Innovation Hub’s I-Fund, a funding and training program for small businesses started by college students. The program will expand in its geographical reach and will be called the Delta I-Fund, according to the Hub.

The I-Fund was founded in 2015 as an early stage, proof-of-concept fund to train and invest in university startups in Arkansas. However, with the support of the DRA, the fund will now work with companies throughout the eight-state Delta region: Arkansas, Missouri, Illinois, Kentucky, Tennessee, Alabama, Mississippi and Louisiana.

IberiaBank, which donated $1 million to the I-Fund in the fall, also concentrates its philanthropic aims in the Delta region. The bank is headquartered in Lafayette, La. The training portion of the Delta I-Fund is based on the National Science Foundation’s I-Corps program, according to Jeff Stinson, director of entrepreneurship for the Hub.

Eight student companies were chosen to be the 2016 I-Fund group. Schools initially participating in the partnership were the University of Arkansas at Little Rock, the University of Arkansas for Medical Sciences, Arkansas State University and the University of Arkansas.

The companies were also given $5,000 upfront, once admitted to the program, and have the potential to receive up to $50,000 if they choose to apply for additional grants before the end of the school year. The additional funding is contingent on the students opening a viable company rather than keeping the idea as an academic pursuit, Stinson said.

Five of the eight companies applied for a second round of funding at $20,000 in the fall, but none of the companies have applied so far for the third round at $25,000. The next two 12-week sessions will be in the fall, offering $50,000 in potential funding for each startup. All companies accepted to the program will receive $5,000. Participants will be selected by a five-person committee, according to the Hub.

A Case for a Prospective Therapeutic Method for Brain Swelling During Concussions

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Concussions are traumatic brain injuries that change the way a brain performs. More often than not, concussions are caused by a blow to the head or violent shaking to the head or upper body region. The devastating condition is commonly caused by contact sports- such as football, car accidents, falls, and assaults. Centers for Disease Control and Prevention reports a startling average of deaths and lasting disabilities due to traumatic brain injuries every year in the United States.

One of the leading causes to the significantly high death rate in patients who experience a mild concussion is the edema of astrocytes, or swelling. Astrocytes are cells that tile the entire central nervous system. Astrocytes are the most profuse cell type in the brain, outnumbering neurons 5:1.

The swelling of the brain during a concussion can vastly increase the asperity of the injury. Fortunately, biomedical engineering researchers at the University of Arkansas have discovered an FDA-approved drug- Acetazolamide, that is commonly used for altitude sickness and epilepsy, to be the therapeutic solution. Preliminary treatment to the cells with the Acetazolamide has proven to reduce the pronouncement of a specified protein, aquaporin-4, that generates swelling.

A recent issue of Nature’s Scientific Reports published the researchers’ uncovering of the therapeutic treatment.

“Our study found that mild traumatic brain injury resulted in increased expression of a protein called aquaporin-4, which caused a massive cellular influx of fluid, leading to increased astrocyte cell volume and injury,” said Kartik Balachandran, assistant professor of biomedical engineering. “We then worked with a drug called Acetazolamide. Our results showed that Acetazolamide minimized cell swelling and injury, suggesting a therapeutic role for this drug in reducing the detrimental effects of concussions.”

Nasya Sturdivant, a doctoral candidate; Jeffrey Wolchok, a biomedical engineering assistant professor; and FDA’s National Center for Toxicological Research conducted research along with Balachandran.

The researchers’ collaboration has led to a possible therapeutic advancement along with a creation of a benchtop bioreactor. In order to examine astrocyte cells, the researchers engineered a benchtop bioreactor. The device led the researchers to uncover that mild traumatic brain injuries lead to an assertion of aquaporin-4. Aquaporin-4 is a protein that leads to a vast influx of fluid. The assertion of aquaporin-4 causes an increased astrocyte cell volume.

The researchers’ collaborative efforts are an encouraging indication that there is a case for therapeutic options for brain swelling during concussions.

The National Science Foundation funded the research.

Does your company conduct R&D? Contact us to find out if you qualify for the R&D tax credit. 

Arkansas

State Credit Name: The state of Arkansas offers 4 different credits for research and development:

  1. In-House Income Research Tax Credit
  2. In-House Research by a Targeted Business Tax Credit
  3. Research and Development in Area of Strategic Value Tax Credit
  4. University Based Research and Development Tax Credit

Expiration Date: Indefinite

Who Can Apply? Corporations and flow-through entities

Credit Carry Forward: Unused credit in each incentive can be carried forward for 9 years.

About the Credit: 

  1. In-House Research Income Tax Credit: Qualified companies that conduct “in-house” research that are eligible for the federal R&D credit may qualify for the Arkansas In-House R&D Credit. The credit rate is 20% of QRE’s that surpass the base year, for a period of 3 years and the incremental increase in QRE’s for the following two years.  For a start-up in-house research facility, the base year is zero, meaning the first 3 years following the date of the financial incentive agreement, all eligible expenditures can qualify for the credit.
  2. In-House Research by a Targeted Business Tax Credit: Under the authority of the AEDC Executive Director, a targeted business may be granted income tax credits equal to 33% of the QRE’s incurred each year for up to five years. The application for this credit must include a project plan, the expenditures plan, the start and end dates of the project and an estimated total project costs. QRE’s are made up of in-house expenses for taxable wages paid and supplies used in the conduct of qualified research. The QRE’s must pass the federal 4-part test to qualify. Income tax credit for R&D earned by targeted businesses may be sold.
  3. Research and Development in Area of Strategic Value Tax Credit: This credit is for qualifying business that invest in:
    • in-house research in an area of strategic value, meaning research in fields having long-term economic or commercial value to the state, and that have been identified in the R&D plan approved from time to time by the Board of Directors of the Arkansas Science and Technology Authority; or
    • a research and development project offered by the Arkansas Science and Technology Authority.
  4. University Based Research and Development Tax Credit: A qualifying business that contracts with at least one     Arkansas college or university conducting R&D may qualify for a 33% income tax credit for QRE’s.

Notes: Each credit can offset 100% of a taxpayer’s tax due in a given year.

Click here to find out if you qualify for the federal research credit.


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T: (501) 588-0500
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Suite #1012
Little Rock, Arkansas 72207

Tel: (501) 588-0500, Fax: (512) 256-8157

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