Finance & Innovation

Ayming Helps Medical Devices Company Soundbite Significantly Increase SR&ED Claim

"Ayming worked closely with Soundbite throughout the year to diligently capture and properly categorize all expenses, resulting in a significantly higher claim than we originally anticipated."

Ayming Helps Medical Devices Company Soundbite Significantly Increase SR&ED Claim

Situation

Soundbite is a Montreal and Sherbrooke-based medical devices company developing and commercializing proprietary wire-based devices and generator technology that delivers shockwave energy within the cardiovascular system to treat chronic total occlusions (CTO’s) and calcium related artery diseases. The company will target CTOs in patients with peripheral artery disease (PAD) and coronary artery disease (CAD), disease states that affect over 12 million and 8 million Americans, respectively.

Soundbite has developed a proprietary method to produce and focus shockwaves into wire-based devices of 0.014” and 0.018” size. Device sizes are compatible with standard angioplasty platforms. The energy produced helps power through calcium and fibrotic deposits. Shockwaves are believed to be benign to healthy elastic tissue.

When Ayming first met Soundbite in 2016, the company was well into the development of their CTO crossing system prototype and was about to launch their clinical trial activities. Since the nature of their activities would be changing/evolving, they were looking for consultants with an expertise in claiming SR&ED credits for clinical trials. They wanted to have guidance on how to set up their contracts and timesheet tracking documents so as not to leave any ambiguity with respect to claiming the SR&ED credits they were entitled to. Soundbite also wanted to make sure they were not leaving any money on the table when it came to maximizing their SR&ED tax credits.

Since Ayming started working with Soundbite early in their fiscal year, we were able to set up the proper documentation system from the get-go. Initial activities included a full review of existing or soon-to-be signed contracts in order to ensure compliance in the eventuality of a CRA audit. Recommendations were made to clarify any ambiguous wording that may create points of contention in an audit, or to add clarifications where needed. A new timesheet tracking system was put in place with Soundbite which tracked specific activities of all employees as well as some key sub-contractors to ensure that all time was captured and properly catalogued.

 

Since the company was conducting a hybrid of development activities as well as a clinical trial, the totality of the expenses was analyzed in order to determine the most advantageous method of claiming (Proxy or Traditional). Based on the analysis, the Traditional Method was selected, and training was given to the team at Soundbite to clearly identify any and all overhead costs that qualify for the SR&ED credits using this method. 

Results

Ayming worked closely with Soundbite throughout the year to diligently capture and properly categorize all expenses, resulting in a significantly higher claim that Soundbite originally anticipated.

 

Soundbite was very pleased with the results obtained as well as with the open and frequent communication with the team at Ayming.