RESAAS Positioned for Growth Post SR&ED Policy Changes
RESAAS Services Inc. (TSXV: RSS) is pleased to announce its eligibility for refundable Scientific Research & Experimental Development (SR&ED) credits, a significant development in the tech sector affecting public companies. Prior to these changes, such credits were exclusively available to private entities. This move marks a transformative opportunity for RESAAS, positioning it for enhanced financial robustness.
Financial Benefits of Refundable SR&ED Credits
The newly approved SR&ED policy within the Canadian Federal Budget will allow RESAAS to capitalize on cash refunds for qualifying research and development (R&D) activities. This fiscal relief is anticipated to retroactively begin from January 1, 2025. Such a measure is pivotal as it will convert expenses related to technology development into valuable, non-dilutive, non-debt capital for the Company.
Strengthening Innovation Through Financial Resilience
CEO Tom Rossiter expressed enthusiasm about the recent policy changes, stating, "RESAAS has been at the forefront of technology innovation for several years, pioneering the development of an industry platform for the global real estate sector. While we have accrued a strong balance against future earnings through SR&ED Investment Tax Credits, this change allows for direct refunds from the Federal Government for our technology investments." This forward-thinking approach is set to bolster the Company’s innovative capabilities.
Advocacy for Public Technology Companies
RESAAS's proactive advocacy for expanding SR&ED benefits to public issuers has been noteworthy. Collaborating with industry leaders and policy-makers, the Company has played a significant role in advocating for a more equitable landscape for technology companies. This partnership with the TMX Group and the Federal Department of Finance underscores their commitment to elevating the tech sector.
Positive Impacts on Future Projects
With the eligibility for refundable SR&ED credits now confirmed, RESAAS anticipates that a substantial portion of its technological endeavors in the coming year will lead to non-dilutive and non-debt cash inflows. This funding will significantly fuel ongoing innovation and support the growth of their unique real estate data platform, enabling the company to expand its service offerings and reach.
An Overview of RESAAS Services Inc.
RESAAS is an award-winning technology Company that provides cutting-edge solutions to the Global Residential and Commercial Real Estate Industry. Boasting a network of over 600,000 real estate agents across 160 countries, RESAAS helps these professionals access unique real estate data while facilitating connections and opportunities.
Empowering the Real Estate Industry
Commercial Real Estate's largest brokerages and institutions benefit from RESAAS by leveraging the platform as a secure data exchange channel. This ensures that data remains protected while enabling seamless distribution among designated third parties, fostering collaborative advancements within the sector.
Contact Information
For inquiries or further information, please reach out to:
Tom Rossiter, CEO
Email: investors@resaas.com
Website: www.resaas.com
Frequently Asked Questions
What is the SR&ED program?
The SR&ED program is a federal tax incentive program to encourage research and development in Canada by providing refunds for expenditures incurred during eligible projects.
How does this policy change impact RESAAS?
This change allows RESAAS to receive direct cash refunds for its qualifying R&D expenditures, strengthening its financial position and supporting ongoing innovation efforts.
What are the expected outcomes for RESAAS in the next year?
With the new policy, RESAAS expects significant cash inflows from its technology development activities, which will support its growth and innovation plans.
Who can benefit from the SR&ED credits?
Publicly traded technology companies like RESAAS can benefit from these credits, which were previously only available to private firms.
How does RESAAS contribute to the real estate industry?
RESAAS provides a unique platform that enhances how real estate agents access data and build connections, substantially contributing to the efficiency and effectiveness of the industry.
