The reason is obvious - due to recent media reports and short selling activity which resulted in price volatility. The suspension is there to protect the market, including the shareholders.
Reading in to the response today more, the application of revenue recognition by ISX was clearly aggressive and not done by the book - they admit that 1.5% was for service arrangements, which means that revenue has to be recognised over time rather than at a point in time. Whether it is refundable or non-refundable is neither here or there for accounting purposes for recognising revenue. Not only that, ISX also included R&D rebates as revenue, also an incorrect treatment - it should be classed as other income (an important distinction that most here won't understand).
My strong opinion is that 30/6/18 revenue has been overstated with the intention of meeting those revenue milestones for the performance rights - based on the above 2 errors. Not to mention there were also various credit notes issued post 30 june for revenue booked. All of these factors stacked up really paints and solidifies that picture to me. Then there are the other issues with poor disclosure of those 4 major customers, including not disclosing revenues >10% for customers for the period as required under one other accounting standard.
It doesn't help ISX when they are being very aggressive in their responses and argumentative - don't pick a fight with the regulator as you won't win.
ISX Price at posting:
$1.07 Sentiment: None Disclosure: Not Held
