The Intelicare Holdings Ltd (ASX: ICR) share price is down 2% despite the technology company announcing a $410,611 research & development (R&D) tax refund. The Intelicare share price had earlier risen by as high as 12% to 28 cents before the mid-session break, but has since retreated in late afternoon trade.
What did Intelicare say?
InteliCare said the tax rebate, for the financial year 2019-2020, reflected InteliCare’s significant and ongoing investment in developing its proprietary internet of things (IOT) platform.
The R&D tax incentive is an Australian government incentive scheme to assist businesses recover some of the costs of R&D. Under this program, companies receive cash refunds of 43.5% of eligible expenditure.
The company says that it now has a cash balance of approximately $3.4 million, and is well funded to continue with its current business operations.
What does Intelicare do?
Intelicare is a relatively young Perth-based technology company focusing on software solutions for the aged care sector. The company was started in 2016 with a $500,000 grant from the Western Australian Government.
The company’s flagship and first product was a patented home-monitoring solution that tracks movement patterns and provides access and data analysis for families and carers.
According to the company, COVID-19 has made its products more crucial than ever, allowing caregivers to reduce the level of face-to face interaction.
Unlike home security systems which rely on cameras, Intelicare says its technology offers privacy as “people don’t like the feeling they’re being watched, and usually don’t want to use cameras”. Intelicare says its sensors are passive – they’re just on or off and therefore “don’t cross that threshold of invading people’s privacy”.
After booking its first sales in 2019, the company brought on board a new chief executive in August this year, with the aim to execute on the next phase of its expansion strategy. This recruitment follows the company’s listing on the ASX earlier in May, where it raised $5.5 million by issuing 27.5 million shares at a price of 20 cents each through an initial public offering (IPO).
About the Intelicare share price since IPO
Since listing in May at 20 cents, the Intelicare share price lifted as high as 48 cents back in late May, its highest ever price, before retreating to its current level of 25 cents.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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