- NRZ has secured another $1.5m (with another $500k expected this month) against the Advanced Finding
- Total cash rebate received so far is $5.5m for the 21/22 period, with this further funding secured against 22/23 expenditure
- Total estimated eligible expenditure of $70.7m which equates to cash rebate of $30.7m or $34.3m
Advance Finding
As announced on the 22nd of December 2022 South Australian Company NeuRizer Ltd (NRZ or the Company) was awarded by AusIndustry a “Certificate for Advance Finding” for certain activities under Stage 1 of the NeuRizer Urea Project.
An Advance Finding is intended to provide companies with certainty that planned activities are eligible under the R&D Tax Incentive programme. It is binding for the income tax years commencing 21/22 and two subsequent years.
The finding provides certainty over current and forecast Research and Development claims for up to 3 years. The Advanced Finding relates to estimated eligible expenditure of $70.7m to be incurred on Stage 1 of the Project.
Eligible expenditure currently entitles NRZ to claim a refundable tax offset, or cash rebate at the rate of 43.5% or 48.5% of costs incurred. As such, if expenditure were to be incurred exactly in line with forecasts, then NRZ would receive a cash rebate of $30.7m or $34.3m over the period.
The Company anticipates another cash rebate for FY22/23 and has secured a $1.5m (with another $500k expected this month) facilityagainst this cash rebate. NRZ has secured approximately $7.0m in cash rebates or relating funding since the advanced finding was received.
The key terms of the loan are that it expires in November 2023 or at the date of the repayment whichever is earlier, the facility has an establishment fee of $500, an Annual Interest Rate of 15.0% calculated monthly, and funds will be repaid from the refund.