ASIC v ISX Hearing, page-343

I was surprised, at any rate, that Minehane (since he is an MD) could not deduce in the reports that the end-June costs primarily pertained to what ASIC/ASX both like to call "one off revenue". It is more appropriate to call this installation and integration revenue which generally only occurs once for a specific customer but can recur over and over by a company but for several different customers. Of course, it could recur for a single customer if they had another subsidiary that needed integration.

I am not a market analyst, but having been a shareholder since 2015, I paid attention to all reports that came from ISX. However, since my degree is in mathematics with a minor in computer science, I can clearly do math and I could discern that a huge proportion of the costs were from the new activities (installation and integration) reported in the 4C and from the numbers in the financial reports from the June Qtr and the March Qtr. Anyone not able to do the math should rely on a market analyst or not invest in small-cap stocks. Therefore, I do not think it should have been disclosed any further than it was.

Minehane also clearly originally stated the 15% disclosure was intended to reference the percentage of costs with respect to the revenue for end of year December 2018 and upon reexamination, Collinson had that point confirmed. The revenue was disrupted due to the multiple technical issues that occurred in 2018 and which were only resolved when ISX put installed their own tier-1 technology in late December 2018 and January 2019. I discuss this in more detail in Post #: 66532821 where I show that since much of this revenue occurred in the first few months of 2019, it probably was the projected end-year 2018 revenue and the % of the integration costs to revenue is in fact within cooey of 15%.

I thought that Warrell was very credible, particularly because she kept to the point and didn't succumb to any badgering - which I must say Borski's junior didn't do as much anyway. Her statements concerning why it didn't make much difference to ISX when Visa terminated ISX were particularly credible.