Just noticed deep down in the Crowdcube documents it mentioned this:
“ The Company entered into a contract with a specialist tax advisory on 22 May 2018 for the provision of specialist services to assist the Company with a research and development tax relief claim to HMRC. The initial period of the said contract was 3 years pertaining to the Company’s accounting periods ending 30 April 2018, 30 April 2019 and 30 April 2020.
Following a dispute, the Company emailed the advisor on or around 9 August 2019 to give notice that the contract is terminated with immediate effect.
The advisor has informed the Company in an email dated 15 August 2019 that, notwithstanding the said termination, it wishes to be paid its fees relating to the accounting periods ending 30 April 2019 and 30 April 2020 (the Company paid the relevant fees for the accounting period ending 30 April 2018 and this is not disputed by the advisor).
The advisor has issued proceedings to recover the unpaid fees relating to the accounting periods ending 30 April 2019 and 30 April 2020 and the value of its claim is £87,268.72 plus court and legal fees. The Company has served a Defence and Counterclaim. The parties are currently in negotiations to settle the dispute.”
Does this mean that Chip is being sued? If so, I’d have thought this is the kind of info that should be mentioned a little more transparently in the pitch…
Having looked back at the previous rounds docs, it appears this claim was previously said to be £31000 - what is the reason for the increase and what are the potential costs of the associated litigation?