Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-26

R&D loans offer several accounting benefits compared to traditional loans. They are often secured against anticipated R&D tax refunds, making them less risky and potentially more accessible. R&D financing is also typically non-dilutive, meaning it doesn't involve giving up ownership in your company. Additionally, R&D loans can be repaid through the tax refund, providing a predictable repayment schedule. Here's a more detailed breakdown of the benefits
:1. Reduced Risk: R&D loans are often secured against anticipated R&D tax refunds, reducing the risk for both the borrower and lender. This can make it easier to secure financing compared to traditional loans that might require collateral or personal guarantees.
2. Non-Dilutive Funding: R&D financing doesn't require you to give up ownership in your company, unlike equity financing. This allows you to maintain control and avoid the potential dilution of ownership that can come with equity investment.
3. Predictable Repayment: The repayment of R&D loans is typically linked to the receipt of the R&D tax refund, providing a predictable repayment schedule. This can be beneficial for businesses that need to manage their cash flow effectively.