We remember in last years Annual Report - shareholders were amazed at some of the Director fees. Hopefully we are not seeing the same thing again! Ashley has been the only one working full-time for some time now. We certainly hope the consultancy fees will not be anywhere near last years.
It is clearly unjustifiable (as it was last year) for a small coy like ECT to be spending like that in its infancy on "consultancy fees". And what have the results been for shareholders...? ____________________________________________
4 February 2013:
The Company has finalised a “FAST Finance” loan of $1,700,000 ... managed through Greenard Willing and Platinum Road.
The FAST Finance loan is an advance against the expected R&D tax concession due in October-November 2013. The Board believes that this is a reasonable source of short-term finance and an appropriate arrangement.
The key terms of the FAST Finance loan are as follows: ? Term: 12 months ? Repayment: Cash in full from the R&D tax rebate refund ? Interest Rate: 15% p.a. payable upfront _____________________________________________ The Ausindustry R&D scenario has changed in recent months - the changes DO work in ECT's favour IF ECT get their 2012-13 tax return lodged pronto. ECT glaringly need $$$ shortly as most recognise.
"Quarterly credits will be claimable from January 2014. "
"The R&D refundable tax offset is normally provided annually as part of a company’s income tax assessment.
Providing a quarterly credit in advance of that process will improve company cash flow and enhance incentives to invest in R&D. Quarterly credits will be accessible for each quarter commencing on or after 1 January 2014."
The Arup payments began from Feb 19 2013. So far there is at least (its not just Arup that can be claimed) $1.25m paid out to Arup AFTER the last FF which was Feb 4 2013.
That means that ECT can get ~$1.25m from the ATO/Ausindustry in the Jan quarter 2014 instead of waiting until the former annual scenario Oct/Nov 2014...significant for ECT.
The above is the case - ECT can do FF now for say $1.25m and do a 9-12 mth term with Govt paying ECT 1st or 2nd quarter 2014.
However - ECT need to be organised to accomplish the above.
Are they? ___________________________________________
3.5 START DATE OF 1 JANUARY 2014
Eligible companies will be able to access quarterly credits for each quarter commencing on or after 1 January 2014.
The quarterly credit amount advised by the ATO will be based on the 2011-12 income year, unless the company has lodged its 2012-13 income tax return sufficiently early in which case the 2012-13 income year will be used. ______________________________________________________ This means ECT would have to lodge their 2012-13 tax return before they can apply for a 1st Q 2014 payment. It is of the utmost importance that ECT get this tax return done pronto.
July 1 is Monday - ECT is a relatively small coy and any well governed coy would have up to date accounts monthly if not weekly. There is absolutely no reason why ECT cannot lodge their return prior to July 15 - no excuse. We could do it next week.
We have accountants in the family and have researched the above "new R&D scenario.
It is totally unacceptable to be making placements at these share price levels when there is clearly an alternative largely non-dilutionary means like discussed here.
The FF/R&D scenario has served ECT well in recent times - ECT must ensure that their 2012-13 tax return is lodged pronto. The R&D rebate is then lodged at the same time -> meaning a placement is NOT necessary.
tick tock...
ESI Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
