Resaas welcomes policy changes in 2025 Canadian budget

Executive Summary

• Resaas Services Inc. welcomes the inclusion of refundable Scientific Research and Experimental Development (SR&ED) credits for publicly traded technology companies in Canada’s 2025 federal budget, a change previously restricted to private companies.
• The policy change is retroactive to January 1, 2025, allowing Resaas to receive cash refunds on qualifying R&D expenditures, thereby converting technology development costs into non-dilutive, non-debt capital.
• This shift significantly strengthens the company's financial position by generating expected cash inflows from its technology development investments, supporting continued innovation and growth in its real estate data platform.

Key Details

• Policy Change: Canada’s 2025 federal budget, approved by parliament on November 17, 2025, introduces refundable SR&ED credits for publicly traded technology companies.
• Retroactivity: The eligibility for cash refunds applies retroactively to January 1, 2025.
• Financial Impact: The change converts qualifying research and development expenditures into non-dilutive, non-debt capital, strengthening Resaas's financial position.
• Previous Status: Prior to this change, SR&ED investment tax credits were only available to private companies, resulting in a credit balance against future earnings rather than immediate cash refunds.
• Company Advocacy: Resaas had previously advocated for expanding SR&ED benefits to public issuers, collaborating with the TMX Group (parent of the Toronto Stock Exchange) and the federal Department of Finance.
• Future Outlook: Resaas expects a meaningful portion of its 2025 technology development to generate non-dilutive, non-debt cash inflows, which will support innovation across its real estate data platform and investment in growth.

Notable Quotes

• "Resaas has been at the forefront of technology innovation for several years, pioneering the development of an industry platform for the global real estate sector... While this has amassed a strong credit balance against future earnings, the company applauds this change in policy. Resaas will receive refunds from the federal government for its investments made in technology advancement." — Tom Rossiter, Chief Executive Officer