HITIQ Gains Funding Runway With $750,000 R&D Loan Drawdown
3 min read
9:30am on Wednesday 23rd of September, 2026 AEST ~9am, 23rd Sept, 26
HITIQ has secured a $1.5 million R&D tax incentive loan facility and drawn half the available funding, providing immediate liquidity while adding interest-bearing debt. The arrangement with a related party also puts shareholder approval of proposed security in focus.
- $1.5 million rolling R&D tax incentive loan facility
- $750,000 initial drawdown completed
- 12% annual interest and $5,500 application fee
- Proposed security over forecast R&D expenditure requires shareholder approval
- Previous facility to be repaid from FY26 tax refund
HITIQ Limited (ASX:HIQ) has drawn $750,000 from a new $1.5 million R&D tax incentive loan facility, giving the concussion-management technology company immediate funding while it waits for its FY26 tax incentive refund.
New Facility Adds Immediate Liquidity
The rolling facility, provided by No Bull Health, carries interest of 12% a year and a $5,500 application fee including GST. It is subject to annual review, with the final tax claim date set for 30 June 2027. HITIQ said the terms are on an arm’s-length basis and standard for this type of facility.
The new loan will also deal with the company’s previous R&D tax incentive facility. HITIQ said that facility will be repaid when the FY26 tax incentive refund arrives, with any shortfall rolled into the new arrangement. The announcement does not disclose the expected refund, the balance outstanding under the earlier facility or the potential size of any shortfall.
Related-Party Security Awaits Shareholder Vote
No Bull is a related party of Harmil Angel Investments, HITIQ’s largest shareholder. The new facility is initially unsecured, but the company plans to seek shareholder approval at its upcoming annual general meeting for a Specific Security Agreement that would secure the loan against forecast R&D expenditure.
That approval is the key governance issue in the announcement. If approved, the proposed security would give the lender rights over the expenditure supporting HITIQ’s future tax claim, although the filing does not provide the detailed security terms.
Funding Supports PROTEQT Expansion
Executive Chairman Earl Eddings said the facility provides “funding certainty and ongoing support” for HITIQ’s expansion across consumer, elite sport and military markets. The company’s PROTEQT platform combines an instrumented mouthguard with analytics to provide real-time head-impact data, while PROTEQT D-MAX applies the core sensor technology to defence applications.
The immediate benefit is cash access; the cost is a 12% annual funding charge and a further layer of debt pending the tax refund. The next material markers are the refund itself, repayment of the old facility and the shareholder decision on whether HITIQ’s forecast R&D expenditure becomes security for the new loan.
Bottom Line?
HITIQ has bought near-term funding capacity, but the economics now depend on the FY26 refund and the outcome of shareholder approval for the proposed security.
Questions in the middle?
- How large will the FY26 tax incentive refund be, and will it fully repay the previous facility?
- What shortfall, if any, will be rolled into the new loan?
- Will shareholders approve security over forecast R&D expenditure at the upcoming AGM?
