Collaborate Corporation Limited (ASX: CL8) primarily operates car rental businesses in Australia. The Company offers peer-to-peer rental services, caravan rentals from private owners, and commercial and household item rentals. Collaborate Corporation also operates in the business-to-business online market place industry.
The company has via the latest release on ASX disclosed that it has received an Australian Government R&D Tax Incentive Refund of $325,259 for the year ended 30 June 2018. The amount of the refund is 22% higher than the amount received for the 2017 financial year and is reflective of the additional emphasis being placed on the technology development and scaling the digital growth potential of the business.
The Company received the R&D Tax Incentive after spending approximately $750,000 on R&D activities concerning its peer-to-peer platforms in the 2018 financial year. The funds from the R&D Tax Incentive will principally be used to continue to grow and develop Collaborate’s mobility solutions, the launch of Carly and supplement the Company’s working capital.
For the FY ended 30 June 2018, the revenues of the company grew by 31% on a YoY basis and came in at $1,207,134. However, the company had reported a Net loss for the period attributable to members of $2,991,370. The loss rose as a result of substantially increased investment in personnel, product development and other growth drivers which are likely to contribute more substantially to revenue in future periods. The Group’s net assets are $2,685,898 (2017: $5,417,161) and the Group has cash reserves of $801,667 (2017: $3,637,813). The Net Tangible Assets per Share (cents) came in at 0.09 cps.
The Group will continue with the development of its online marketplaces. The allocation of resources will continue to be focused on the high growth opportunities available to the Group.
The company hadn’t paid or declared any dividends since the commencement of the financial year, and the Directors also didn’t recommend the payment of a dividend in respect of the fiscal year, in view of the prospective growth plans.
The Directors believe that there are reasonable grounds to believe that the Group will be able to continue as a going concern. However, if in the case, the company is not able to get sufficient funds to continue with its operations, there will exist a significant uncertainty that may cast significant doubt on the ability of the company to continue as a going concern.
Now let us quickly have a look at the Collaborate Corporation Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $0.014 and is trading up by 7.692% during the day’s trade, with a market capitalization of ~$9.35 million. The counter opened the day at $0.013, reached an intraday high of $0.015 & touched an Intraday low of $0.012. The stock has yielded a Year Till Date returns of 8.33% and posted returns of -26.42%, -13.33% over the last six months & three months respectively. It has a 52-week high price of $0.032 and touched 52 weeks low of $0.011, with an average volume of 529,869 approximately.
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