TanamiRod, this a great point you've made.The current applicable...

TanamiRod, this a great point you've made.

The current applicable R&D tax credit percentage is 43.5% for PAR's situation. This is paid upfront despite being a pre-revenue company. ie. The ATO will send a cheque for 43.5 cent on every dollar spent on clinical trials at the very next tax return. The R&D tax refund for the 2020 financial year was $3.38 million but this figure is about to be significantly ramped up with the onset of P3 spending. Theoretically, if P3 costs the company a total of $100 million then the ATO will send a cheque for $43.5 million to PAR whenever the money is spent (so probably spread over 2 or so financial years).

I suppose the question then is - was this future tax refund already factored in when they ran the numbers prior to the previous capital raise? (in which case the benefit of this tax refund has already been budgeted). I personally do not believe this would be the case since you can never be 100% sure that any future tax claim will be successful. Tax legislation is also fluid and subject to change at any time. Financial advisors are usually scared of liability and I do not see them advising the company to plan for a favourable future tax scenario that is not 100% guaranteed to remain. If this theory is correct then that means a potential bonus inflow of $30-$50 million revenue which has not been "counted on" by the company. Just some food for thought..