Australian microbiome biopharmaceutical company, Immuron Limited (ASX: IMC) made an announcement on 3 January 2019 stating that it has received a cash refund of $1.19 million under the Australian Government’s Research and Development Income Tax Concession incentive program. Following this news, the share price of the company increased by 9.524 percent as on 3 January 2019.
This cash refund of $1.19M reflects the Immuron’s research and development expenditure made during FY 2018 to progress its pipeline programs as well as the continuous development of the Company’s existing Travelan / Protectyn programs.
Commenting on this R&D Tax Concession Refund, Immuron’s CEO Dr. Gary S. Jacob told that the management of the company is grateful for the support of the Australian Government. He also told that this cash refund scheme has provided an opportunity for the company to accelerate the clinical development timelines for a number of its high-value pipeline programs.
Recently in November 2018, the company appointed Mr. Gary S. Jacob as the new CEO of Immuron Limited. In FY 2018, the company reported total operating revenue of $1.84 million which is an increase of 32% from FY 2017. As at 30 June 2018, the company was having cash of $4.73 million and trade and other receivables of $1.68 million. Further, the company reported an after-tax loss of $3.01 million which was 56 percent less than FY 2017.
During the year, the Company engaged a specialized R&D Tax consultant to review the research and development expenses of the Company for FY 2018, to make sure that the maximum rebate is received under the Australian Government’s R&D Tax Incentive program.
The net operating and investing cash outflows for the year were $3.53 million which included costs associated with the Company’s further development of its research and development programs, together with significant clinical trial cost expenditure related to the NASH and ASH clinical trials.
During FY 2018, the company received $2.16 million from the Australian Government’s R&D tax concession refund incentives. During FY 2018, the Company entered into a short-term loan arrangement with Great Accommodation Pty Ltd to fund its R&D expenditure, for an amount of A$500,000 at an interest rate of 15 percent per annum and an A$15,000 establishment fee. Immuron Limited will continue to gain from the available Australian Government Research and Development incentives.
Meanwhile, in the last six months, the share price of the company decreased by 35.38 percent as on 2 January 2019. IMC’s shares traded at $0.230 with a market capitalization of circa $30.08 million as on 3 January 2019.
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