Ann: Response to ASX Query Letter, page-245

"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)."

We're still going with this...

"(H) Revenue recognition
Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

(i) Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:
 the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
 the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
 the amount of revenue can be measured reliably;
 it is probable that the economic benefits associated with the transaction will flow to the Group; and
 the costs incurred or to be incurred in respect of the transaction can be measured reliably.

(ii) Interest income
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset of the net carrying amount of the financial asset.

(iii) Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established."

https://www.asx.com.au/asxpdf/20150129/pdf/42w7gwjpw5tsc1.pdf

Other revenue is outlined by the prospectus as qualifying as revenue for the sake of performance rights. ISX address this specifically in their response to the OM report.

"Note that even if interest and government grants were excluded from the audited revenue figure, only Milestone C would have been achieved by a margin of$1,347. Milestone A would have been achieved by a margin of $2,501,347 and Milestone B would have been achieved by a margin of $1,251,347."

https://www.asx.com.au/asxpdf/20190917/pdf/448lrdp92q083r.pdf

"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."
Cool mate, thanks for sharing but no one really wants your biased and ignorant comments. Jog on

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"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."

"C. ASX’s apparent view about materiality
With the benefit of hindsight, the ASX now seems to assert that the execution of these four customer agreements
were material to the price or value of ISX’s shares, apparently on the basis of the quantum of the early revenue
attributable to sign-on, establishment and technical integration.
ISX has a different view. It does not consider the one-off technical integration fees to be material. Rather, it regards
the evergreen long-term payment and electronic money services relationship delivered via its Paydentity™ and ISXPay®
platforms as being the material relationship and the material value-driver. For example, the actual gross profit from
the establishment phase of the arrangements with the customers identified in 3a, 3b and 3c of the question was a
modest $120,000 (approximately). When compared with the long-term gross profit or ongoing Merchant Services Fee
that would be derived from the services agreements, it was not material."

Again, read what the company has said about the issues you've brought up. It's like you choose not to do any research into what you misunderstand about ISX, and vaguely or wrongly criticise them instead. There are plenty of fair criticisms for management at the moment but the majority of what you say is crap. I welcome people that might bring to my attention an issue with a company that I have money in, it can help inform my decisions. You just talk shit though