Digital Novel Assets
R&D claims and DNA services are linked, but they deliver different benefits.
R&D tax claims reward the cost of innovation, while DNA services help capture the asset value created by that innovation.
Turning R&D into Asset Value
Many innovative companies create valuable intellectual property through R&D, but that value is often hidden. The business may have developed software, technical know-how, processes, algorithms, designs, products or systems, yet these assets are not clearly identified, evidenced or reflected in the company’s balance sheet.
Our Digital Novel Asset services help bridge that gap by reviewing the output of successful R&D and technical development work to assess whether the intellectual property created can be defined, evidenced, valued and digitally secured as an intangible asset.
Digital Novel Asset Services
R&D tax relief provides a financial benefit for the cost of qualifying development work. Digital Capitalisation goes a step further by considering whether that work has created a valuable asset for the business.
This process helps answer key questions:
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What intellectual property has been created?
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Can the asset be clearly identified?
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Does the company own or control the asset?
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Are the development costs properly evidenced?
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Is there a clear route to future economic benefit?
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Could the asset support funding, investment, licensing or commercialisation?
Where the position is supportable, this can help transform historic R&D activity into a more visible commercial asset.
Defining and evidencing the asset
A key part of the process is collating and reviewing the evidence behind the development work. This may include technical reports, source code, design documents, drawings, test results, lab reports, prototype records, process documentation, development logs and other records showing how the asset was created.
This evidence is used to support the existence, ownership, cost base and commercial relevance of the intangible asset.
Digital protection and verification
Once the asset and supporting evidence have been identified, the relevant documentation can be securely archived and digitally recorded. This may include the creation of a blockchain-based record, helping to timestamp and verify the existence of the asset and its supporting evidence.
The digital record does not create the value by itself. Instead, it helps evidence, protect and secure the intellectual property already created by the business.
Supporting balance sheet and funding discussions
Where appropriate, Digital Novel Assets may support discussions with accountants, auditors, lenders and investors. The aim is to help the business demonstrate that valuable IP exists, that it has been created through evidenced development work, and that it may have future economic value.
This can support:
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Balance sheet strengthening
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Investor confidence
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Asset-backed lending discussions
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Licensing opportunities
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Commercialisation planning
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Business valuation exercises
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Exit or acquisition preparation
Important compliance considerations
Digital Capitalisation is not automatic. A successful R&D claim does not guarantee that a capitalisable asset exists. The asset must be identifiable, evidenced, owned or controlled by the company, linked to future economic benefit and supported by reliable cost records.
The company’s accountant or auditor must also be comfortable with the accounting treatment. Our role is to support the identification, evidence gathering, valuation logic and digital record process, helping the client build a credible and supportable position.
