Dear Stakeholder,I am absolutely delighted to have announced our...

Dear Stakeholder,

I am absolutely delighted to have announced our FY results last week.

iSignthis was first listed in March 2015, with capabilities similar to that of payment gateway, together with granted patents that we believed offered potential (and indeed they do!)

In four short years, we have launched our own Tier 1 network across the world’s largest payment schemes, integrated to a central bank, started generating export revenue (or income into Australia) by exploiting our patents and know how, created an ecosystem for regulated merchants, employ more than 70 people (about 98 as of today), pay taxes, continue to grow and generate a maiden profit - all with a very modest capital outlay from shareholders.

Financial Highlights Include :

• Maiden statutory profit of circa $1.6m (NPAT) for the year ending December 2019 (CY19) vs statutory loss of -$8.0m for CY18
• ‘Operational’ EBIT of circa $6.6m (excluding one-offs, non operational and non cash items)
• Revenue of $31.2m, up over 400% from $6.1m in CY18
• Cashflow positive model, with $4.4m of net cash from operations for CY19
• Client Funds held $96.2m
• Subsequent to end of the financial year, the NPAT positive trend continued in January 2020
• Cash and cash equivalents of $17.7m at Year End, in addition to being cash flow positive, provides
• adequate funds for expansion of current and future business opportunities

SEPA Instant

The launch of SEPA instant will allow the Company to boost revenues associated with our EMA product, and provide an alternative to the SWIFT service. SEPA instant is a more efficient and obviously faster means to transfer EUROS (€), which we anticipate will allow us to grow our transactional base much faster than the use of SWIFT. The majority of our SWIFT traffic was for EUROS (€), and the 2-3 days clearing meant that customers would more likely wait to ‘batch’ payments. Whenever customers are faced with a delay or friction on the internet, inevitably, customers either find another way, or, the opportunity may be lost altogether. We have opted to provide our customers with an instant solution instead.

Our EMA agreements allow us to charge inbound fees as a percentage of the transaction, with a flat fee for outbound - be that the inbound or outbound transactions, via SEPA Core, SEPA Instant or SWIFT.

Where SEPA instant will make a difference is in retail transactions, and the speed in which those transactions can now inflow to our business customer’s EMAs. We have prioritised that business case over that of SWIFT, as we believe that this is the ‘gold’ standard.

Of course, SEPA Instant ties into our flykk ecosystem, and our ability to to allow brokers and merchants to be paid instantly. In due course, this will provide a further capability for our ClearPay JV and the NSXA.

ISX is still connected to SWIFT, and are a Swift Alliance member. We can receive EUROS (€) inbound via our current capabilities. Our SWIFT project is intended to reconnect our outbound capability, which was deferred in lieu of completing SEPA Instant (which has instant bidirectional capability). We now anticipate that the SWIFT project will be commenced shortly, for completion mid year, provided that other business cases don’t provide a better return in the interim.

See today’s SEPA announcement for more details > https://www.asx.com.au/asxpdf/20200305/pdf/44fsbj55kvj8v0.pdf

Shareholder Communications

Please note that we will not be distributing hard copies of the report as part of our commitment to the environment. We will send each shareholder a letter reminding shareholders of where to access the report electronically, as well as a reminder to subscribe to electronic communications.(by first creating an account at our share registry, Link Market Services, https://investorcentre.linkmarketservices.com.au/Login/Login )

Our annual report is here > https://www.asx.com.au/asxpdf/20200228/pdf/44flykgv8j01j6.pdf

Thank you for your continuing support.

Regards

N J (John) Karantzis

CEO - iSignthis Ltd (ASX : ISX || FRA : TA8)