Feeds

Digislide stiffed by Austrade

Downhill slide halted for now

Boost IT visibility and business value

South Australia tech start-up darling Digislide is embroiled in a wrangle with Austrade over denial of funding.

The ASX listed company, which builds miniature projectors, has been lauded overseas with “hot technology” awards and has been part of numerous Austrade showcases such as Communicasia. In recent months it has also secured international commercialisation deals and more recently $5m in funding.

However, the Australian government has withdrawn support for the company under its Export Marketing Development Grant program. The company revealed in its half-year financial statements that Austrade had denied grants relating to $500,000 of overseas marketing expenses, a decision that company is appealing. The Australian Taxation Office is also auditing the company's GST account.

"Austrade denied the company's (2008-09 export grant) claim based on the 'size of the commercial return received or receivable in the grant year', 'the company's financial position' at the time, its 'resources to maintain its international business' and the 'net economic benefits for Australia',” the company said.

Under the EMDG, companies must spend the export marketing money up front over a year and then claim it back from Austrade.

"Digislide is rigorously appealing this decision arguing that Austrade must take into accounts the effects of the global financial crisis (on companies and countries) and the considerable funds injected since June 2008 and additional commitments received since that time for international marketing," the company added.

Last month Digislide company secretary Jeff King confirmed that the Australian Government owed the company about $800,000 in tax and export marketing grants, an amount that would help the company survive while it worked toward breakeven.

It also recently announced that it had secured a standby equity deal with investment group Fortrend Securities, giving the company access to an equity raising facility with a limit of $5m. The facility will operate for three years as the company moves toward breaking even.

The company reported a loss of $1.6m for the December half, down from December 2009's $3.9m loss.

During the half Digislide signed joint venture agreements with marketing and distribution entities in the United States and India. The company said last year these marketing deals will deliver the company a volume of sales that lead to breakeven by the end of the March quarter.

Last August Digislide also announced that had secured a deal to commercialise a new IP video delivery platform. The licencing agreement would see its virtual streaming delivery network technologies (VSDN) used within Asia with broadcast cable operators and video delivery partners including China Telecom and China Unicom.

Digislide’s auditors, Hayes Knight, however warned of the inherent uncertainty of the company as a going concern, noting it remained dependent on raising further funds from shareholders to remain solvent. ®

Build a business case: developing custom apps

More from The Register

next story
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
Detroit losing MILLIONS because it buys CHEAP BATTERIES – report
Man at hardware store was right: name brands DO last longer
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
EU justice chief blasts Google on 'right to be forgotten'
Don't pretend it's a freedom of speech issue – interim commish
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.