HITIQ’s RDTI Repayment Signals Tightened Financial Controls Amid Growth
HITIQ Limited has received $1.6 million from the R&D Tax Incentive Scheme, using most of it to repay its RDTI Facility with Keystone Capital Partners, signaling a strategic move to streamline its R&D funding.
- Received approximately $1.6 million from R&D Tax Incentive Scheme
- Repaid $1.472 million principal, costs, and interest on RDTI Facility
- Rolled remaining $86,000 into a new 2025 RDTI Facility
- RDTI Facility arranged with Keystone Capital Partners
- Supports HITIQ’s ongoing investment in brain care technology
R&D Tax Incentive Receipt Strengthens HITIQ’s Financial Position
HITIQ Limited (ASX: HIQ), a leader in evidence-based brain care technology, has announced the receipt of approximately $1.6 million from the Australian Government’s Research and Development Tax Incentive (RDTI) Scheme. This inflow represents a significant reimbursement for the company’s ongoing investment in innovative concussion management solutions.
In a strategic financial move, HITIQ has utilised $1.472 million of these funds to fully repay the principal, associated costs, and interest on its existing RDTI Facility with Keystone Capital Partners. This repayment not only reduces the company’s debt burden but also reflects a disciplined approach to managing its R&D funding arrangements.
New Facility Sets Stage for Continued Innovation
The remaining $86,000 from the RDTI receipt will be incorporated into a new RDTI Facility for 2025, ensuring that HITIQ maintains access to flexible funding to support its research and development activities. While details of the new facility’s terms have not been disclosed, this rollover indicates confidence in the company’s ongoing innovation pipeline.
HITIQ’s technology suite includes a sensor-enabled mouthguard, AI-powered data analytics, and advanced return-to-play/work software, all designed to improve brain health outcomes for athletes and other at-risk populations. The company’s partnerships with major sporting leagues such as the AFL, EPL, and NRL underscore the commercial relevance and impact of its solutions.
Implications for Investors and Market Position
By efficiently managing its RDTI funding and associated debt, HITIQ is positioning itself to sustain its research momentum without over-leveraging. This financial discipline could enhance investor confidence as the company continues to expand its footprint in the sports technology and medtech sectors.
In addition, the repayment signals a positive cash flow event tied directly to the company’s R&D efforts, reinforcing the tangible benefits of its innovation strategy. As HITIQ prepares for the next phase of development, market watchers will be keen to see how these funds translate into product advancements and commercial growth.
Bottom Line?
HITIQ’s deft handling of RDTI funds clears the way for fresh innovation capital in 2025.
Questions in the middle?
- What are the specific terms and conditions of the new 2025 RDTI Facility?
- How will HITIQ allocate R&D funding to accelerate product development this year?
- What impact will this repayment have on HITIQ’s overall capital structure and cash flow?
