HITIQ secures $1.5M R&D loan facility to support global growth push
HITIQ Limited (ASX: HIQ) has entered into a new R&D Tax Incentive Loan (RDTI Loan) with No Bull Health Pty Ltd, a related party of the company’s largest shareholder, Harmil Angel Investments. The facility provides up to $1,500,000 in funding, with an initial drawdown of $750,000 already completed.
The move is designed to support continued commercial expansion across HITIQ’s three target markets: consumer, elite sport, and military. Notably, this is not the company’s first such arrangement — a previous facility will be repaid upon receipt of the FY26 Tax Incentive Refund, with any shortfall rolled into the new facility.
Earl Eddings, Executive Chairman
“This facility provides funding certainty and ongoing support for HITIQ’s global growth strategy across the consumer, elite sport and military markets. We remain focused on disciplined execution, expanding the commercial adoption of our technology and delivering value for shareholders.”
When big ASX news breaks, our subscribers know first
Facility terms at a glance
The RDTI Loan is initially unsecured. Shareholder approval will be sought at the upcoming Annual General Meeting (AGM) for a Specific Security Agreement with No Bull Health, which would secure the loan against forecast R&D expenditure — consistent with standard arrangements of this type. The facility is structured on an arms-length basis with terms the company describes as standard for this type of arrangement.
| Facility Term | Detail |
|---|---|
| Loan Amount | $1,500,000 |
| Initial Drawdown | $750,000 |
| Interest Rate | 12% per annum |
| Maturity | Rolling, subject to annual review |
| Final Tax Claim Date | 30 June 2027 |
| Application Fee | $5,500 (incl. GST) |
What is an R&D Tax Incentive loan facility and why does it matter?
Australia’s R&D Tax Incentive (RDTI) programme allows eligible companies to claim a cash refund from the Australian Taxation Office (ATO) on qualifying research and development expenditure. An RDTI loan facility lets a company borrow against that anticipated refund before it is actually received, effectively converting a future government payment into working capital today.
For growth-stage technology companies, this structure has a meaningful practical benefit. It allows R&D activity to continue without requiring the company to raise equity from shareholders, avoiding dilution while keeping the innovation pipeline funded.
Key features of this type of arrangement include:
- The refund is provided by the ATO under the federal R&D Tax Incentive scheme
- The loan is typically repaid from the RDTI refund once it is received by the company
- The structure is commercially common and widely used by technology companies investing heavily in R&D
What this means for HITIQ’s investment case
The new facility provides runway support for HITIQ’s commercial activities across its three target verticals. The company’s flagship product, PROTEQT™ (co-developed with Shock Doctor), delivers real-time head impact data through an instrumented mouthguard and analytics platform, targeting athletes, clubs, leagues, and clinicians. The same core sensor technology underpins PROTEQT D-MAX, developed specifically for defence applications.
On the military side, HITIQ’s US defence research collaboration with two Congressionally funded research centres positions PROTEQT D-MAX for evaluation across firearms and special operations training environments, with potential Cooperative Research and Development Agreements flagged as a longer-term pathway.
By securing access to up to $1.5 million without tapping equity markets, HITIQ can sustain its development and commercial rollout activities while the FY26 R&D tax refund process runs its course.
The RDTI facility sits alongside a Victorian Government grant secured in May 2026, which provides between $250,000 and $1.5 million in non-dilutive funding tied to manufacturing scale-up and R&D milestones running through to 2031.
Investors watching the near-term progress of the company should keep an eye on the following:
- AGM vote on the Specific Security Agreement with No Bull Health
- Receipt of the FY26 R&D Tax Incentive Refund to repay the prior facility
- Continued commercial rollout across consumer, sport, and defence channels
Don’t Miss the Next Healthcare Breakout
Big News Blast delivers FREE breaking ASX healthcare news directly to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ investors already staying ahead of the market. Click the “Free Alerts” button at StockWire X to start receiving alerts the moment news breaks.