Seasick VR firm owes half million

A  Christchurch business developing a virtual reality headset to cure seasickness has gone into liquidation owing creditors more than $513,000.

Motion Research Ltd, previously trading as See Level, had been working on VR technology which mimicked the visual appearance of being on land for boat users suffering from seasickness.

On the See Level website company founders said it took 80 software builds and repeated boat tests on seasick individuals in Lyttelton Harbour until ‘‘we got it right’’.

Among creditors is the Ministry of Business and Innovation (MBIE), owed innovation grants.

Company shareholders Dudley Jackson, Angela Burgess, Graham Rule and Kendons Trust Services (Rule Burgess) Ltd, MIRJ Investments Ltd and Toby Buxton appointed RAC Insolvency’s Robin Crimp as their liquidator on March 19.

Mr Crimp said in his first liquidators report the company was set up in 2018 to develop a product for countering seasickness.

‘‘Unfortunately, it was never able to develop a commercial product and ultimately decided to liquidate.’’

He said the company was unable to repay innovation funding it had received.

Fixed assets, of limited value, were estimated at $6000.

The liquidator found intellectual property in expired patents and general knowledge related to unsuccessful product development, but had yet to receive a preferential claim from Inland Revenue for tax obligations.

‘‘It is too early for the liquidator to indicate the likely funds available for unsecured creditors. The ability to make a distribution to unsecured creditors will be dependent on the extent of currently unknown preferential debts, and through insolvent transactions and actions against certain other parties.’’

See Level credited support for the innovation from the government via Callaghan Innovations, the University of Canterbury, Heritage Expeditions, Whale Watch Kaikoura and other groups.

Creditors included ANZ Bank, Mr Jackson, Mr Rule, IRD, MIRJ Investments and MBIE.