Private ruling: ESIC
Date of advice: 22 August 2025
Published: 27 October 2025
Ruling period: Income year ended 30/06/20XX
Date scheme commenced: 1/07/20XX

Ruling: Q1: Does the Company meet the relevant criteria for classification as an Early Stage Innovation Company (ESIC), under section 360-40 of the Income Tax Assessment Act 1997 in respect of shares issued during the 20XX income year? | A1: Yes

Relevant facts and circumstances: 1. The Company is an Australian company that incorporated within the last 3 income years. 2. The Company during the relevant income year had one 100% subsidiary, SubCo. 3. For the year ended 30/06/20XX: (a) the Company and its 100% subsidiaries aggregated expenses were less than $1 million. (b) neither the Company nor its 100% subsidiary derived any assessable income. 4. None of the shares / equity interests issued by the company have been listed on a stock exchange in Australia or a foreign jurisdiction at any time since it was incorporated. 5. The company issued shares throughout the 20XX income year to raise funds its activities. Product Development 6. The Company is pioneering XXXX storage solutions in Australia. Commercialisation Strategy 7. The Company is solely focus on commercialising the innovative XX storage technology. The Company has raised capital to conduct research and development and supporting activities to bring its technology to market. 8. Further development and testing activities are required before the Company can take their service to the market. 9. The Company is genuinely focused on commercialisation. The Company board and management are fully committed to the translation of their ideas into a reality and have established a business structure and a plan to do so. High growth potential 10. The value proposition of the Company's service will be able to address a local market, but would easily translate to an international readily addressable market opportunity with significant potential for growth given the number of countries that have signed up to the XX Agreement with it 2050 net zero greenhouse gas emissions. Scale up the business 11. The Company's business model is scalable and based on building on the innovation. Broader than local market 12. The Company has identified that the global market is potentially large and growing. The opportunity to innovation in the market appears to be significant. Competitive advantages 13. The Company is an Australian company that will be creating Australian jobs and products powered by Australian innovation and will own all intellectual property. 14. The Company is the only company in Australia and globally that is known to be developing processes that will lead its able offer the service to the market.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 360-A | Income Tax Assessment Act 1997 section 360-15 | Income Tax Assessment Act 1997 section 360-40