IDEX Biometrics has once again been granted tax relief for its research and development efforts in the United Kingdom. The company specifically applied for relief under the country’s small or medium-sized enterprise (SME) R&D tax relief program, which allows qualified companies to deduct up to 230 percent of their qualifying costs from their yearly profit.
2019 will be the third straight year that IDEX has received tax benefits under the SME R&D program. The company has already received a cash refund of 8.1 million NOK (just under 800,000 USD) based on its 2017 and 2018 returns, and also has 25.4 million NOK (roughly 2.5 million USD) in tax credits that it can use to offset future taxable income in the UK.
The credits are available to companies that are operating at a loss. The SME R&D program allows those companies to claim credits that are worth up to 14.5 percent of their eligible losses.
IDEX will apply for additional R&D relief with its 2019 UK tax return. That application will be one of several financial moves that the company has made in recent months. IDEX hired an investor relations specialist back in February, shortly after making its debut on the OTCQB Venture Market exchange. The company has also secured $9.9 million through private placement.
March 13, 2020 – by Eric Weiss