ASIC revenue recognition & performance rights inquires...., page-104

The exponential growth possibilities that ISX have is phenomenal. Most long-term ISX holders have known this for a number of years. The original ISX plan to develop a KYC and payment processing platform with low customer “click rate” to meet the new AML regulations in the EU was brilliant. To then patent this process and establish “exclusivity” in the use of their customer on-boarding method was the next great step. The vision was huge, as early investors we waited for a couple of years to see if the method worked, it does. Now, as the business has achieved significant revenue growth they no longer are flying “under the radar”, as expected, so many people and organisations want to own the business as it is a “once in a lifetime” wealth creation business.

The most ideal aspect of the ISX business is the recurring revenue, the initial sale to a merchant is “one off”, it’s not a business model that sells a product and then needs to sell it again to earn revenue, and as long as the merchant is happy with the results they will continue to use ISX’s services. The integration of the ISX platform into a merchants business operation takes time and “know how” and is not a process that a merchant wants to change often. This creates a very “sticky” relationship with the merchants especially when the outstanding ISX customer on-boarding method, with up to 80% customer conversion rate, is compared to ISX competitors. With the rare business wealth opportunity that ISX has created, people will do “all they can” to get ownership and some competitors will do “all they can” to disrupt the growth of ISX or at worse stop ISX from operating. It’s the sad reality of what some people will do to win at all costs, but it’s true.

For ISX to take the ASX to the Federal Court was a bold and necessary step, we need to have ISX protected by one of the highest authorities in Australia acting with honesty and transparency. The legitimacy of the business model and how it works doesn’t seem to be the reason for the suspension; it appears that the question as to how the performance shares were obtained is the reason for the suspension. Based on this possibility some scenarios that could determine ISX’ future are:

1. The performance shares, or part thereof, are cancelled and the beneficiaries of those performance shares accept this, the ASX suspension is lifted and ISX continues its growth.

2. The beneficiaries of the performance shares fight for them “at all costs” potentially drawing out the court battle for too long and ISX suffers.

3. Someone, some people, organisation or a competitor with the financial influence, wins and for whatever reason, nefarious or not, ISX don’t survive.

I believe John Karantzis and the ISX board will do “whatever it takes” to keep the growth of ISX continuing. John, as the inventor of the ISX KYC customer on-boarding method , the ISX board and major shareholders have too much to lose by trying to win “at all costs”.