The issue of eligibility for the Australian Government R&D tax...

The issue of eligibility for the Australian Government R&D tax incentive arises as the principal subsidiaries of Sensera are companies incorporated in the US and Germany. The ATO does grant concessions for some foreign business activity under the scheme (assessed on a case-by-case basis) so there may be some eligibility for this tax offset.

The situation may be further complicated by the bilateral tax treaty between the US and Australia (and the possibility of a similar rebate scheme in the US or Germany) hence my question to management seeking clarification on the issue. It's consequential given Sensera's R&D spend and current cash position; Sensera spent US $1.6M on R&D in FY18 and has a forecast R&D spend of around US $0.5M for Q1 FY19.

Finally, revenues for Q4 FY18 were at the bottom end of the forecast, so given Ralph's comments and assuming no R&D offset and knowing the Nanotron milestone payments (US $0.9) fall due 1 Oct, we've got to expect a CR very soon. There may be an ann. or two to help lift the SP before it, but the good news in all this is the marginal note bottom of pg.4 that states net cash outflow for Q1 FY19 is est. at US $1.1-1.2M... so with growing revenues and the and the Farnam Street equipment loan facility, any CR should be relatively small...

We're well on the way to a cash flow positive business with very strong growth prospects. GLTAH R-7