Australian-based reproductive biotechnology company, Memphasys Limited (ASX: MEM), announce that it has received a research and development (R&D) tax refund from the Australian Tax Office (ATO) to the value of approximately $1.3 million.
The refund has been used to repay an R&D loan to Radium Capital of $849,000 plus interest of $46,621.
The R&D Tax Incentive is a business assistance programme administered by the Australian Government to support businesses undertaking R&D activities. R&D entities with an aggregated turnover of less than $20 million are entitled to a refundable tax offset fixed at 18.5 percentage points above the company’s tax rate. In MEM’s case, this is 43.5 per cent. The benefit is reviewed and audited by the ATO and AusIndustry.
The net R&D tax refund of $419,466 received by MEM is being reinvested into MEM and used as working capital to fund the continued development and commercialisation of its novel products.