Some 1.6 million litas out of the company's accrued loss of nearly 5.5 million litas is planned to be compensated from the state budget, according to a draft government resolution drawn up by the Ministry of Economy.
The ministry proposes to cover the remaining loss by reducing LTC's authorized share capital to 26,700 litas, from the current 3.9 million litas.
LTC has signed eight letters of intent with IBM, under which the state-owned company has acquired research and development services from the technology giant, with solely EU structural funds planned to be used for this purpose.
In late June 2011, the Ministry of Economy approved 38.908 million litas in EU aid for LTC's scientific projects. However, the company, which has no revenues yet, had not received the EU money by the beginning of March.
LTC and IBM have equal rights to use scientific research results, and Lithuanian scientists are able to work at IBM laboratories in Zurich and Haifa. The center was established as part of an agreement signed by the Lithuanian government and IBM on 16 September 2010.
