Hi R3N, the wording used was "4,133,307 shares in MySquar were...

Hi R3N, the wording used was "4,133,307 shares in MySquar were sold, realising GBP97,132 (≈ AUD170,413)" which makes me think they are talking a realised gain against the book value of the shares. As you state in your post, the share price never dropped that far. This would rely on the book value being somewhat less than the $685k referred to in your quote (which was part of the going concern statement in that report, and not necessarily the balance sheet value).

A bit of (very) rough research indicates that the initial stake was 3% of the company for aud675k in March 2015 (about GBP340k). 4.13 million shares is not 3% of what's on issue so there must of been dilution of some kind when or after MYSQ listed on LSE in July. Anyhoo, long story short there is a difference of $271k between Financial Assets (shares held) on the Fair Value Estimation and Statement of Financial Position reports, which probably relates to the difference in book value and fair value.

If you are concerned it may be a good idea to email the company with a straightforward question of what we got for the shares sold. I have a very different opinion on the way YNB is being managed but will never question the value of digging through the financials and holding management to account for any hidden gems. Can you remind me what the million dollar liability was about? Rings a bell but I cannot recall...