What is the process for filing for the Scientific Research and Experimental Development program (SR&ED) and The Ontario Interactive Digital Media Tax Credit (OIDMTC)?

Joseph Mauceri, Manager, R&D Tax Incentives Practice, KPMG

A. In order to make a claim for the Scientific Research and Experimental Development program (SR&ED), a company must prepare schedule T661 on its annual tax return.

For each project identified as SR&ED eligible, a technical report must be prepared describing the technological advancements you were trying to achieve, the technological obstacles/uncertainties you had to overcome and the work that was performed to overcome the technological Continue reading »

What are some tax credits for Canadian digital media companies?

Joseph Mauceri, Manager, R&D Tax Incentives Practice, KPMG

The Scientific Research and Experimental Development program (SR&ED) offers Canadian companies both federal and provincial tax credits for expenditures relating to eligible SR&ED activities.

The work must be advancing the understanding of technology and should address technological uncertainty through  systematic investigation. Whether your company is developing new products/processes or improving existing products/processes you may qualify for up to 73 cents on the dollar of internal labour expenditures. Continue reading »

What are five steps I should take to help control my company’s Google search results?

Barbara Coll, CEO of WebMama:

1. Increase the amount of text-based content visible to visitors on your corporate website.

2. Write unique meta-description tags (an html element) using the top converting keywords or category words you want to own so you will be highly visible in search results. Write unique tags for every page. The meta description tag should be two sentences long and focus on what visitors would think if all they saw was the first five or six words. Include your company name and major brand names. Maximum of 25 words. [do not worry about the meta keyword tag for search visibility purposes} Continue reading »

How should we price common shares after a preferred share round?

Q: How should we price common shares after a preferred share round?

A: It is sometimes necessary to establish a price for the common shares of a private company when the most recently completed financing round involved the sale of preferred stock. A price may be needed for a subsequent sale of commons, in which case negotiations and the market will ultimately set the deal price, or more commonly for grants under an ESOP, where the plan documents and tax laws may make it essential that the strike price be “fair market value” on the date of grant. Continue reading »

How does a private company with no existing equity plan compensate advisory board members?

Q: How does a private company with no equity plan in place compensate advisory board members based on performance? 

Barry Reiter

A: Well-constituted and operated advisory boards can add great value. Members may be willing to serve as advisors when they would not wish to accept director liability, or the company principals may not be willing to share information or control.

The company can institute a Continue reading »

How do I do a valuation on my software company when there’s no revenue?

Q: How do I do a valuation on my software company, which was launched in March 2010, when there’s no revenue (or hard-to-project revenue)? Continue reading »