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Titomic (ASX:TTT) granted Research Service Provider status

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ASX:TTT      MCAP $59.62M
17 April 2020 14:55 (AEST)

3D printing specialist Titomic (TTT) has been officially certified by the Australian Government as a Research Service Provider (RSP).

RSP status is granted Innovation and Science Australia, which is a government branch. Essentially, the certification verifies that a company has the resources, expertise, and capability to conduct research and development (R&D) activities on behalf of another company.

This means small and medium businesses can now collaborate with Titomic to take on some R&D work without having to fork out a hefty sum of cash for specialist staff or infrastructure.

Titomic is the first 3D printing — or, more specifically, additive manufacturing — company to be granted RSP status.

This is a vote of confidence for the company given the “stringent eligibility criteria” required from Innovation and Science Australia in order to achieve the certification. And, importantly, it’s a tangible competitive advantage for Titomic.

Titomic’s RSP expertise covers engineering the aerospace, manufacturing, and materials fields through the Titomic Kinetic Fusion (TKF) 3D printing machine.

Titomic Managing Director Jeff Lang said the company is proud to have its tech acknowledged by Innovation and Science Australia.

“More than ever, today’s investments in R&D breakthroughs by Australian companies will determine the size of future sovereign advanced manufacturing capabilities and commercial dividends being paid back into Australia’s future economy,” Jeff said.

The RSP certification provides some benefits to other companies in these fields of expertise.

By completing R&D work with an RSP partner, companies can claim the government R&D tax offset for eligible spending on the research and development under the ordinary threshold.

Simply put, companies normally have to spend at least $20,000 on research and development per year before they are eligible for a tax rebate. Working with an RSP eliminates this requirement, meaning the companies can be compensated for smaller amounts of spending.

Titomic shares spike this morning after the company released the news, but things have somewhat settled since then. In mid-afternoon trade, shares are up 1.14 per cent and worth 89 cents each.

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