Just to clarify the R&D tax incentive rebate is in AUD 116k so that is around 70k USD that has gone in on top of the normal business activities, so the business activities this quarter is 120k USD better than last quarter not including the tax rebate. The cash burn due to normal activities looks to be around 140k USD for the quarter.
In my opinion a 116k AUD top up from the government is an insult to such a business. There has been no significant support in hand outs or government policy for sustainable recycling initiatives at all. It is no wonder that these companies fail while they try to build the R&D and client base / product sales to support the business long term.
The government puts heaps of money into other schemes. They propped up the local car manufacturers for decades only to be left with nothing and now they are proposing to subsidise the electric car industry with reduced tariffs. Electric cars are the next recycling disaster waiting to happen.
With the collapse of Redcycle it is quite clear how much soft plastic waste there is in our consumer environment and that is only a fraction that was collected. If you account that a large percentage of people couldn’t be bothered to recycle soft plastic there is a lot more in land fill.
Plastic pallets is a good circular economy solution for soft plastic waste and should be legislated for all local and imported goods. The governments have ban single use plastics already, bags, plastic plates, forks, etc. all no more. So it can be done.
If RAN fails there is one less option to deal with the soft plastic problem and it is a big issue for everyone not just share holders.
RAN Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
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