Australian anti-drone security company, DroneShield (ASX: DRO) has entered an agreement with R&D Capital Partners Pty Ltd which will enable it to access the equivalent cash to the R&D tax incentive long before they would otherwise receive it from the government.
DroneShield has received the R&D tax incentive, most recently $500,000, each year it has been operating but there is a considerable delay between carrying out the research and receiving the funds from Canberra.
Under its agreement with R&D Capital, DroneShield has drawn down $500,000, and potentially a further $150,000, which is the expected equivalent of the tax incentive for the period ending 31 December 2019.
The funding is non-convertible, and is otherwise on terms that are typical of loans of this nature.
Clearly there are advantages for a young company in being able to boost its tax flow now, rather than waiting until the first half of 2020 when the government would normally be expected to pay the incentive.
The funds will be used towards the Company’s research and development, sales and marketing, and general working capital.
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