archTIS Ltd is extending its capital funding program through the increased extension of a market rate lending facility with the Commonwealth Bank of Australia (ASX:CBA) (CBA) for A$2 million.
The company also received non-dilutive funding in the form of a A$2.117 million research and development (R&D) tax refund, for eligible research and development expenditures undertaken in 2023.
The R&D incentive program is part of the Australian Government’s commitment to developing sovereign capability to help Australian businesses grow and innovate.
Becoming cashflow positive in 2024
“The R&D tax incentive and increase in our market rate facility is important to the company’s overall corporate finance strategy,” archTIS global chief operating officer Kurt Mueffelmann said.
“It provides archTIS with working capital to invest in product innovation and technology development across Defence coalition partners and defence industrials while also providing non-dilutive funding into business operations.
“The funds are part of archTIS’ stated outlook of becoming cash flow positive in financial year 2024.”
In addition to the R&D funding, AR9 has increased and extended a A$2 million market rate facility through the CBA for a term of 24 months at a standard commercial rate.
There is a fixed and floating charge over the assets of the company in relation to this facility.