AdAlta Ltd (ASX:1AD) has received a FY2022 Research and Development Tax Incentive (RDTI) refund of $1,582,473.
The company could also receive a further $495,454 after lodging an overseas finding application with AusIndustry to determine if overseas expenditure, including expenditure incurred in the period ending June 30, 2022, is eligible for the R&D Tax Incentive.
Should the overseas finding be approved, the total RDTI refund for FY2022 would be more than $2 million.
The RDTI is an Australian Government program providing support for biotechnology and other sectors under which companies receive cash refunds for eligible expenditure on research and development.
AdAlta received the refund for 43.5% of eligible expenditure.
Use of funds
AdAlta is likely to use part of the rebate for a partial repayment of the $4 million non-dilutive financing facility agreement it has with the Victorian Government.
This is fully repayable on receipt of the FY2023 RDTI rebate. The specific amount is to be finalised with Invest Victoria.
The clinical stage drug discovery company is developing novel therapeutic products from its i-body platform AD-214.
In July, the company altered the sequence of manufacturing campaigns and toxicology studies for AD-214, in order to better align them with the priorities of potential partners and take advantage of data from a pre-clinical study of AD-214 in eye fibrosis, expected in the third quarter of this year.
Read: AdAlta modifies AD-214 development program timeline to maximise partner opportunities and extend cash runway