Epiminder to Repay $15.77M to ATO, Retains $4.23M from IPO Proceeds
Epiminder Limited has settled a $15.77 million tax liability with the ATO related to historical R&D claims, freeing up $4.23 million from IPO proceeds for working capital.
- Epiminder to repay $15.77 million to ATO by December 19, 2025
- Tax liability relates to R&D claims from 2019 to 2024
- Company retains $4.23 million from IPO proceeds for working capital
- Payment discharges all outstanding obligations to the ATO
- Epiminder focuses on epilepsy monitoring device Minder
Background on the Tax Liability
Epiminder Limited, a medical device company specializing in continuous brain activity monitoring for epilepsy patients, has announced the finalisation of a significant tax matter. The company disclosed in its November 2025 IPO prospectus that it would reserve $20 million of its IPO proceeds to cover a tax liability related to research and development (R&D) tax offset claims spanning the income years from 2019 to 2024.
Today, Epiminder confirmed it has received amended assessments from the Australian Taxation Office (ATO) requiring repayment of $15.77 million by December 19, 2025. This repayment fully settles the company's outstanding obligations concerning these historical R&D claims.
Financial Implications and Use of IPO Proceeds
The company had prudently set aside $20 million from its IPO proceeds to cover this liability. With the repayment amount now confirmed at $15.77 million, Epiminder will retain the remaining $4.23 million to support its working capital needs. This retention provides the company with additional liquidity to fund ongoing operations and potential growth initiatives.
While the tax repayment is a substantial cash outflow, the clear resolution of this matter removes a significant financial uncertainty that had loomed over the company since its IPO. Investors can now assess Epiminder’s financial position with greater clarity.
Company Focus and Market Position
Epiminder’s flagship product, Minder, is a minimally invasive device designed to continuously monitor electrographic brain activity in epilepsy patients. By enabling long-term monitoring outside clinical settings, Minder provides valuable data to clinicians for assessing treatment effectiveness and managing seizure disorders.
Founded in 2017 with backing from leading research institutions and medical centres, Epiminder operates out of Melbourne with offices in the United States. The company’s focus on innovative diagnostic tools positions it well in the growing medical device sector addressing neurological conditions.
Looking Ahead
With the tax liability now settled, Epiminder can concentrate on advancing its product development and commercialisation efforts. However, the scale of the repayment underscores the challenges companies face when navigating complex R&D tax regimes. Investors will be watching closely to see how Epiminder balances growth ambitions with prudent financial management in the coming quarters.
Bottom Line?
Epiminder’s cleared tax hurdle paves the way for renewed focus on growth but highlights the cost of navigating R&D incentives.
Questions in the middle?
- What were the specific reasons behind the ATO’s amended assessments on Epiminder’s R&D claims?
- How will the $4.23 million retained for working capital be allocated across operations and growth initiatives?
- Could there be further tax or regulatory risks related to past or future R&D claims?
