Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) provides the following quarterly activity report and Appendix 4C.
Quarterly Activity Report – 1 January to 31 March 2021
During the quarter, the Company continued activities to rebuild the facility at Bacchus Marsh (the “Project”).
Approximately $732K (prior quarter $601K) in cash was spent on the Project during the quarter on eligible research and development (“R & D”) expenditure that will qualify for the ATO’s R & D incentive.
Of this amount, $399K (prior quarter$402K) was attributable to property, plant and equipment purchases with the remaining $333K (prior quarter $199K) on other R & D project expenses.
During the quarter, the Company received the first drawdown of the loan secured by the Company’s R & D tax incentive rebate of $300K. Subsequent to the quarter covered by this report and Appendix 4C, the Company received a further drawdown of $410K.
In January 2021, the Company received the remaining $593K owing from an insurance claim made by the Company following the fire at its Bacchus Marsh facility in October 2019. This insurance claim is now complete.
Administration and corporate costs reduced by $98K compared to the previous quarter. This reduction was spread across several expenses including consulting fees, patents, and legal fees. Other cash inflow and outflow categories were comparable to the previous quarter. As such, and notwithstanding the items mentioned above, the Appendix 4C is not materially different to the prior quarter.
Cash on hand at the end of the quarter was $233K compared to $324K at the end of December 2020. Cash on hand as at the date of this report is $1,227K.
In April 2021, the Company announced a capital raising consisting of a share placement for $1.5M and a share purchase plan for $2M (see ASX announcement 7 April 2021). The Company has since completed the share placement. Amounts received after the end of the quarter ended 31 March 2021 are not included in this Appendix 4C.
As at the date of this announcement, the Company has undrawn loan facilities of $490K. This loan is secured by the Company’s R & D tax incentive credit and is expected to be fully drawn to $1.2M prior to the end of the financial year.
For further information, contact:
Glenn Fozard – Chairman [email protected]210429-asx-quarterly-report-copy