The iSignthis Ltd (ASX: ISX) share price dropped 3.5% after making an announcement.
iSignthis is listed on the ASX and Frankfurt Stock Exchange. It provides remote identity verification and payment authentication combined with e-money, transactional banking, IBAN issue and payment processing capability. Its products and businesses are iSignthis Paydentity, ISXPay, UAB Baltic Banking Service and Probanx Information Systems.
Here’s What Happened Today
iSignthis formally responded today to a report from Ownership Matters that raised some concerns about its ownership, related party transactions and disclosures.
The fintech business defended itself by saying that the conditions for the conversion of its performance rights were set out in the prospectus and each of the three performance targets were independent and based on iSignthis achieving revenue of different specified amounts.
Each target only triggered a third of the performance rights. One of the headlines from this debacle was that the performance rights were only met by $1,347 excluding R&D grants and interest income.
Target A had a revenue target of $2.5 million, which was exceeded by over $3 million.
Target B had a revenue target of $3.75 million, which was exceeded by $1.76 million.
Target C was the one that was exceeded by $512,057 – or $1,347 excluding the interest and grants.
iSignthis also explained why its reporting period was changed, so that it streamlined its audit and reporting requirements as a European financial entity and to help match the auditing periods between Australia and Europe.
Other points that iSignthis defended itself on were the ownership of its shares by directors, it re-iterated that it made 22 announcements about its revenue progress and it explained the patent situation.
iSignthis said that it has written to Ownership Matters seeking clarification and is considering various options and will update the market as appropriate.
I’m not sure if this will be the end of it, but it’s certainly an unwelcome cloud over the business. For potentially good returns I’d rather buy the growth shares in the free report below.
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