There seems to be a general misunderstanding of what Research and Development means. It is engaging in necessary designing, construction and testing of practical ideas in order to gain sufficient knowledge to eventually produce a meaningful working system. This can take enormous time and moneys without any immediate returns. Yes, years for significant projects.
Without R&D a company cannot produce a genuine ‘new’ device. The government therefore provides incentives (such as tax) to help get innovative companies off the ground. If the results of any R&D are directly used in generating revenue then that is no longer regarded as R&D and the incentive cannot be claimed. Hence the C5 write off.
It suits CWE for the time being to be seen as in R&D mode. That is the best way of attracting grants. It still needs them. However, granting bodies do not want to support dud companies – that would look bad in public. CWE has had a most remarkable success with its C5 array (lots of ticks, accolades and no failures), now talked about the world over, and this underpins its credibility with the next phase of development.
Grant application in UK has already been lodged.
CWE is now an international company and has to shed any small time imagery.
Juke
CWE Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
