Some of the invoices raised in the June qtr ($482K) took a while for the cash to be received (see below) but that does not necessarily indicate any wrong doing.
ISX's disclosure of the problems with KAB is obviously being looked at. It appears that the problems were more significant than they first thought.
From the Sep 2018 quarterly:
Receivables balance includes an amount of $482k, which amount is anticipated to be received this quarter based upon invoices raised last quarter.
On 26th September 2018 the Company advised the market of its supply chain issues and the impact on revenue in the quarter. The ability to process, clear and settle funds throughout the quarter was significantly reduced by Kobenhavns Andelkasse Bank (KAB) being placed under the control of the Danish State banking administrator Finansiel Stabilitet (FS).
Significant payments have ‘bounced’ from our banking partners back to source, and these have started to be recovered only in the last 6 weeks.
Summary
Whilst the KAB matter has significant impact on short term revenues, the Company’s Tier 1 facilities are being progressively completed and commissioned over the coming weeks. KAB was a short term, one off incident, that partly validates the Company’s model to enter into the sector due to the dearth of specialist AML regulated sector banks in the EU.