California – Swanson Reed | Specialist R&D Tax Advisors

Astra Secures Contract with Defense Innovation Unit

California launch company Astra has secured a significant boost for its upcoming Rocket 4 with a new contract from the Defense Innovation Unit (DIU). Announced on October 23rd, the deal underscores the potential of Astra’s “tactically responsive launch system” and could propel the company back into the spotlight.

The DIU, a U.S. military organization focused on utilizing commercial technologies, has pledged up to $44 million to support Astra. This funding will be directed towards “advancing and scaling the production capabilities” of Astra’s launch system, ultimately aiming for a successful launch of Rocket 4. The contract allows for launches from various locations, including the United States and Australia.

This news comes after a challenging period for Astra. Their previous Rocket 3 program experienced several setbacks, culminating in a failed June 2022 launch that left two NASA hurricane-tracking satellites stranded in the wrong orbit. These difficulties led to internal restructuring, including the company going private earlier this year.

The DIU contract signifies a renewed confidence in Astra’s capabilities. With this crucial financial backing, Astra is poised to make a comeback with the more powerful and versatile Rocket 4.

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.

Northwood Space Passes First Test in Space Communication

TulsaLabs and AI VentureTech Join Together for Space Research

Bridgit Mendler’s startup, Northwood Space, has passed its first major development test by connecting with Planet Labs imagery satellites in orbit. The startup, based in El Segundo, California, aims to provide a data highway between earth and space.

“We’re building this global network to send data for satellites, built off of phased array technology that we have now successfully validated, both in the lab and in the field,” Mendler, Northwood’s CEO, told CNBC.

The company develops ground stations which, once successful, will be mass-produced. Designed with a phased array-based system, they hypothesize that their approach will outperform the parabolic dish antennas traditionally used in ground stations.

Prototype testing took place in Maddock, North Dakota. The prototype antenna was positioned and a connection established using telemetry, tracking, and control methods. The test was two-fold, evaluating connectivity in both S-band and X-band frequencies. Planet Labs heralded Northwood’s test as a “major milestone.”

“We were able to achieve bi-directional communications for the full duration of a pass with Planet’s satellites and achieved nominal communications for them. They were able to perform their operations as they would on their own system,” said Bridgit Mendler, CEO.

The company plans to deploy Portal sites that can support as many as 10 simultaneous satellite connections, with data rates over 1 gigabit per second per beam, beginning next year. Northwood is currently assessing locations in the U.S., Europe, Australia and New Zealand for its first Portal sites.

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.

Reflect Orbital Plans to Light Up Our Lives

Reflect Orbital has captured the attention of many after announcing plans to deliver sunlight after dark. The plan? To use satellites equipped with ultra-reflective mylar mirrors to bounce sunlight back to Earth using GPS to locate the position of its customers on Earth.

CEO Ben Nowack said that the overall goal of Reflect Orbital to deploy 57 small satellites, each carrying 33-square-foot mirrors. The company conducted test runs, reflecting sunlight onto solar panels from a distance of nearly 800 feet, generating about 500 watts of energy per square meter.

The startup has pitched the idea as a potential solution to revolutionize the solar energy industry with continuous power generation even during nighttime hours.

The company website mentions that the application for their sunlight services will shut down this October with limited availability. Each deployment of sunlight will last approximately four minutes covering an area with a diameter of about three miles.

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.

Upstage’s $72M Series B Funding Marks Milestone in AI Innovation

Upstage Co., Ltd., the South Korean AI powerhouse, is making waves in the tech world once again. With a recent $72 million injection in its Series B funding round, the company’s total investment now exceeds $100 million, solidifying its position as a trailblazer in AI software development.

Led by CEO Sung Kim, Upstage is on a mission to revolutionize work efficiency with its cutting-edge AI solutions. Their flagship product, Solar LLM, has garnered praise for its lightning-fast performance and unmatched cost-efficiency. By leveraging Depth-Up Scaling (DUS) technology, Solar delivers GPT-4-level performance, catering to the diverse needs of businesses across various industries.

But Upstage isn’t stopping there. The company’s Document AI solution, powered by state-of-the-art OCR technology, is transforming document processing for high-growth sectors like finance and healthcare. With clients including industry giants like Samsung and Hanwha, Upstage’s Document AI is streamlining workflows and reducing operational costs for businesses worldwide.

The Series B funding will fuel Upstage’s ambitious plans for global expansion, including the establishment of a new office in San Jose, California. This strategic move will enable Upstage to accelerate the development of purpose-trained LLMs tailored to the needs of global enterprises.

Leading the investment round are prominent backers such as SK Networks, KT, and Korea Development Bank, reaffirming their confidence in Upstage’s vision and capabilities. Existing investors, including SBVA and Primer Sazze Partners, have also doubled down on their support, recognizing Upstage’s potential to reshape the future of AI.

Founded in 2020, Upstage is committed to enhancing work efficiency through industry-leading document processing engines and LLMs. With Solar LLM and Document AI at the forefront of innovation, Upstage is poised to lead the AI revolution, one breakthrough at a time.

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.

Revolutionizing Hydrogen Storage: H2MOF’s Quest for a Greener Tomorrow

In the sunny landscape of California, a pioneering startup named H2MOF is at the forefront of a revolution – one that could reshape our energy landscape and propel us towards a sustainable future. Co-founded by Nobel laureate Fraser Stoddart, H2MOF is tackling the Achilles’ heel of the hydrogen economy: efficient storage. In a world where hydrogen holds immense promise as a clean energy source, the challenge lies in unlocking its potential.

Hydrogen, abundant in the universe, emerges as a beacon of hope for a carbon-neutral future. It’s light, efficient, and with the right production methods, leaves no carbon footprint. However, the stumbling block has always been storage. High pressures and low temperatures currently characterize hydrogen storage, posing logistical and economic challenges.

Scotland, a trailblazer in renewable energy, is setting ambitious hydrogen production targets, but the storage question lingers. This is where H2MOF comes into play, armed with a vision to transform hydrogen storage. Fraser Stoddart and his team are focusing on metal-organic frameworks (MOFs), porous materials with the potential to store substantial amounts of hydrogen at room temperature and moderate pressures.

The journey towards a decarbonized future is complex. The International Energy Agency envisions hydrogen as a linchpin in achieving a carbon-neutral world economy by 2050. Green hydrogen, produced through electrolysis with decarbonized electricity, is a promising solution, but scaling production necessitates significant infrastructure development.

H2MOF is leading the charge in the race to solve the hydrogen storage challenge. The potential breakthrough could usher in a new era of clean, green energy, providing a crucial element in achieving a sustainable future beyond conventional batteries. The world watches with anticipation, hopeful that companies like H2MOF will pave the way for a green transition powered by hydrogen – a beacon lighting the path to a brighter, more sustainable tomorrow.

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.

California OTA Confirms Need for Documentation in R&D Tax Claims

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The California Office of Tax Appeals (OTA) has recently issued two opinions regarding the burden of proof taxpayers must meet to substantiate entitlement to California’s research and development (R&D) tax credit for qualified expenditures under California Revenue and Taxation Code section 23609. In both opinions, the OTA ruled in favor of the California Franchise Tax Board, holding each taxpayer failed to meet its respective burden to substantiate the R&D tax credit claimed.

It has long been stated that the burden of proof falls on taxpayers, but as a result of the complexity of the R&D tax credit, many taxpayers fail to meet this requirement. California’s R&D tax credit follows much of the same legislation as the federal and requires that taxpayers retain sufficiently detailed records to substantiate the four part test as outlined in IRC Sec 41:

the expenditures must be eligible to be treated as research expenses under Internal Revenue Code section 174;
the research must be undertaken for the purpose of discovering information that is technological in nature;
the application of the research must be intended to be useful in the development of a new or improved business component of the taxpayer; and
substantially all of the research activities must constitute elements of a process of experimentation for a qualified purpose.

Opinion 1 – Appeal of First Solar, Inc., 2023-OTA-532P (Sept. 19, 2023)

The OTA held that the taxpayer failed to meet its burden of proof. The precedential opinion noted that the taxpayer had a single, total line item for R&D expenses but did not include the audit working papers or any document itemizing the expenses that made up the total amount. The taxpayer also provided (a) a list of 15 patent applications, (b) documents relating to an IRS audit of the taxpayer for a previous tax year (the documents did not indicate the IRS examined the R&D tax credit); and (c) testimony by the taxpayer’s co-founder and Chief Technology Officer.

Opinion 2 – Appeal of Electronic Data Systems Corporation & Subsidiaries, 2023-OTA-540 (Sept. 20, 2023)

In this case, the OTA held in a non-precedential opinion that the taxpayer failed to meet its burden of proof for substantiating its claimed R&D tax credit by relying primarily on insufficient employee surveys developed after the conclusion of the research activities. The OTA stated that the provided employee surveys submitted by the taxpayer were insufficient for numerous reasons including: the employees who completed the surveys lacked relevant legal experience, there was no evidence the employees completed the surveys impartially, the employees did not provide signed statements under penalty of perjury, and the surveys did not contain contemporaneous supporting documentation from when the taxpayer conducted the research activities.

Opinions like this reinforce the need for sufficient and detailed documentation. This means both financial documentation and that which describes and substantiates development efforts. One approach is the use of a narrative which describes a project and its technical uncertainties and experimentation processes in detail. This narrative is often not enough alone. For these reasons, it is often recommended, even by the OTA, that taxpayers should work closely with their internal and external advisors on establishing and enforcing proper document retention procedures to comply with applicable R&D tax credit substantiation requirements.

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.

Unlocking the Future of Healthcare: Gero’s Epigenetic Biomarker Discovery

Gero, a biotechnology startup, has recently announced a partnership with FOXO Technologies. FOXO is the creator of a saliva-based epigenetic technology while Gero is creating therapeutics against chronic diseases with a mission to slow down human aging itself.

Epigenetic biomarkers are a hot topic in the world of medical research, and Gero is harnessing their potential to transform healthcare. These biomarkers provide a window into the way genes are regulated and can offer crucial insights into various aspects of health, from disease risk to aging.

The companies have not yet signed a letter of intent, but “a deal will happen,” Gero CEO Peter Fedichev said. The scientific, technical, and financial details are still being worked out.

Gero’s partnership with FOXO Technologies could be a game-changer. FOXO proteins play a crucial role in regulating genes associated with longevity and age-related diseases. By leveraging FOXO technologies, Gero aims to uncover a treasure trove of epigenetic biomarkers that could reshape healthcare as we know it.

Aging is a complex process, and Gero’s efforts are dedicated to unraveling its mysteries. By understanding the epigenetic changes that occur as we age, Gero seeks to develop innovative therapies and interventions that promote healthy aging and extend our lifespan.

One of the most exciting aspects of Gero’s work is its potential for precision medicine. Epigenetic biomarkers can help tailor treatments to individual patients, ensuring they receive the right care at the right time. This personalized approach has the potential to revolutionize how we treat and prevent diseases.

As Gero advances its epigenetic biomarker discovery through FOXO Technologies, the possibilities for the future of healthcare are endless. Imagine a world where diseases are detected and treated before they even manifest symptoms, where aging is a graceful process, and where each individual’s health journey is unique.

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.

Kriya Therapeutics’ $150M Boost to Series C Funding for Breakthrough Gene Therapies

Kriya Therapeutics, a biopharmaceutical company focused on gene therapy, has secured $150 million for its Series C funding round. This significant funding injection further propels the company’s mission to advance cutting-edge gene therapies and propel its drug development endeavors to new heights.

Having already secured a total of over $430 million in Series C funding, Kriya Therapeutics has now amassed an impressive $600 million since its inception in 2019. With a stronghold in California, the company has been consistently attracting substantial investments, with Patient Square Capital leading a $270 million Series C financing round in May 2022, following $80 million in Series A funding in May 2020 and $100 million in Series B.

Kriya Therapeutics has set its sights on groundbreaking advancements, planning to progress its undisclosed gene therapies into clinical trials. Alongside this, the company is dedicated to further enhancing its computational, engineering, and manufacturing platforms, ensuring that its therapies reach their full potential.

CEO Shankar Ramaswamy emphasized the company’s commitment to efficient gene therapy development, stating, “Our investments in world-class infrastructure and talent have supported our ability to move with unprecedented efficiency in the engineering and production of gene therapies.” With a passion for transformative healthcare, Kriya Therapeutics aims to provide better treatment options for patients battling metabolic, neurological, and ophthalmological conditions.

The company’s diverse pipeline encompasses therapies for metabolic disorders like diabetes and glycogen storage diseases, neurological diseases including epilepsy, and ophthalmological conditions like diabetic retinopathy. The acquisition of Redpin Therapeutics has further strengthened Kriya’s neurological gene therapy portfolio.

Though specifics about its treatments are yet to be revealed, Kriya Therapeutics made a splash at the 2023 American Society of Gene and Cell Therapy Annual Meeting. The company presented ten abstracts detailing its groundbreaking technology and manufacturing platforms, hinting at the transformative potential of its gene therapies.

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.

SCiFi Foods’ CRISPR Cultivated Beef Meets Price Parity

forefront of bioscience automated farming equipment

SCiFi Foods is set on creating the next lightbulb. It’s the seemingly simple innovations that really revolutionize our future. The thing about these simple innovations is … they are only simple after they’ve been invented. With that in mind, SCiFi Foods is tackling the daunting task of cruelty-free, sustainable, cultivated meat.

The company’s goals include replicating the same taste, texture, and nutrition as conventional meat without the cost to the planet or the unsustainable practices of raising and farming beef. With their recent breakthrough, their cell-based beef is now 1000 times cheaper to produce.

The California-based startup has recently announced they have achieved price parity with beef using their proprietary cultivated meat food-tech. This comes as the company’s first R&D announcement, and is also a first for the world. SCiFi Foods is officially the first to produce edible cultivated beef cell lines grown in a single-cell suspension.

“We’ve known from day one that by opting to work on cultivated beef, we were choosing a much bigger challenge in terms of the science and technology required,” SCiFi Foods CEO and co-founder Joshua March said in a statement. “However, beef is the ultimate prize—with both the biggest market demand and the biggest climate impact. This breakthrough illustrates the power of our bioengineering strategy, and is a huge testament to our team and the platform they’ve built.”

Their proprietary beef cultivating process uses CRISPR technology. CRISPR began as a controversial technology adapted from a genome editing system that bacteria use for immunity. By capturing and inserting small pieces of DNA from the attacking virus into their own DNA, bacteria create what’s called CRISPR arrays. But for all of its potential, the tech has also brought controversy as studies have found that altering the DNA of embryos or eggs and sperm could cause mutations that create other health threats.

SCiFi Foods has done extensive testing and determined the use of CRISPR is unlikely to pose risks to humans who consume CRISPR-edited cultivated beef. The technology also allows for price parity, with a good chance that cultivated beef prices will drop even further.

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.

Binarly Raises $3.6M in Seed Funding to Support R&D and Scaling

Firmware security company Binarly, Inc. on Wednesday announced that it has raised $3.6 million in a seed funding round.Several angel investors took part in the seed round, led by Westwave Capital and Acrobator Ventures.

The funding will aid in speeding up R&D initiatives, expanding their engineering team, and scaling the adoption of their technologies.

Binarly has developed a SaaS platform designed for firmware threat identification and response. This AI-powered firmware protection platform performs in-depth introspection through a combination of machine learning and code analysis techniques. These techniques are proprietary technologies developed by the company. With this technology, security teams can identify vulnerabilities and malicious firmware modifications.

“The current approach in the industry is to detect risks related to the firmware by leveraging the current version number of the firmware update against a public database of vulnerabilities and threats. This leads to firmware supply chain failures because known vulnerabilities that are not associated with a certain version number of a firmware release will not be detected, thus keeping the ‘doors’ open for an attacker,” said Alex Matrosov, co-founder and CEO of Binarly.

Binarly has identified firmware vulnerabilities in products from major manufacturers such as AMI, AMD, Dell, Fujitsu, HP, Insyde, Intel and Lenovo. The startup claims to have identified more than 100 new flaws this year alone.

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.