ASIC Commences Proceedings Against ISX and JK, page-2166

Hi @naomhan, I'm really not conflating anything.

You: " You're trying to argue that we got ongoing revenue for them, so making a profit on professional services work wasn't relevant." Me: I am not attempting to say the profit wasn't relevant, I said even if you discount the profit, the return - providing it was maintained or increased - would justify the investment given the payout period of ~ 3 years. Granted it would probably not be done in normal times, but I am maintaining the directors had a motive that was not self-serving to go this direction at that point in time.

It is important to look at this from the director's view at that moment in time. I believe the importance of the shares were to affect the founding family to have > 50% which would protect the future direction of the company and from a hostile takeover. I am maintaining that installing the customers was a rational choice given that strategy, what was happening at that moment in time, and given they would have understood the statistical chance of success of taking that path. I believe they did it for the future of the company, not for personal gain. It makes no absolute sense to me if viewed in the lens of personal gain. To potentially destroy the company for the sole purpose of gaining shares which would be worthless at the end of the day makes absolutely no sense. Therefore the directors had to have thought there was a benefit to the company to do this.

Dilution for me is not an issue - I was a shareholder in 2018, I knew the terms of the performance shares and I knew they would probably be earned. It would have been what ISX(BVI) shareholders felt the assets were worth when they were sold to Otis Energy. Add on the importance of a constant and steady direction, the avoidance of a potential hostile takeover, the fact that revenue increased the next year by almost 400%, and that there was no loss to the earning of the performance shares, I see only benefits to shareholders and I do not see the relevance of dilution.