. DAY 6 - Tuesday 7th March 2023 Hi Once Again Here's my notes...

.

DAY 6 - Tuesday 7th March 2023


Hi Once Again

Here's my notes from Tuesday's hearing as it proceeded.

10.20 start


Independent experts testimony on company valuation, being there is no price discovery available (suspended) re effects of the visa termination may have had to valuation, performance shares vesting, plus other event dates - mr houston - isx , mr sisson - asic are sworn in, one for each party.

Background - Both experts each did an independent report first up based on fixed criteria. They then both compared there findings. Any points of difference are addressed in this joint report, which is now being discussed in the hearing.

Joint report discussion / debate - both asic kc and isx kc both question each independant expert throughout the day. Overall summary would be 75% asic kc questions at the end of the day.

They discussed so may issues, it's difficult to write about it in detail here. The standout points discussed were:-

The jacobs / patersons valuations are the only known broker report data in the market in the early years of isx. They detailed how he arrived at his valuations of isx over a number if years. They talked a lot about DCF (discounted cash flow) among other metrics.

Event studies

Cash flow

Perf shares conversion revenue

31-7-18 Ann. Complex ann.

Price sensitive ann. Market response timeframe

GTPV

Integration

Recurring revenue / gtpv vs one off / integration

A lot of time is spend on recurring v one off revenue - Asic kc is really focusing on recurring is more favourably than one off. Houston disagrees. Revenue is driven by integration, you can't have revenue without integration.

Houston is constantly disagreeing with the asic kc, he shuts him down without answering yes or no to his questions. Houston qualifies then by giving detailed answers which doesn't benefit asic kc at all with his case. He's very knowledgeable and holds his own against the asic kc onslaught.

After a few hrs of this discussion, my view is mr houston representing isx is very knowledgeable and has far more experience in dealing with these issues than asic's mr sisson. Houston is controlling the majority of the discussion.

Misc note - Re - Asic kc now has the off market trades data. Both parties are now discussing the findings. Isx kc did mention 4 trades in the effected timeframe the courts are looking at. Asic kc objected to that number quoted as incorrect. To be continued.


Lunch 1.05 to 2.00


Questions / Discussion continue

Asic kc is asking broad statements to mr houston, he won't answer broad statements as its too general. Needs to look at actual docs. asic kc has to change his approach. Asic kc is getting frustrated, shoes on the other foot for a change. Asic kc does regroup, he's focused, however houston is winning the debates.

His honour is ok's houston's answering style.

Houston is great, asic kc getting a taste of his own medicine.

No matter how asic kc reframes his questions, houston counteracts asic kc with a far superior answers. This is a great debate of minds. Houston is schooling the asic kc.

Re <15% - Houston reads it to be the life cycle of a new client.

Asci kc finishes @3.40


@3.43 - Isx kc starts asking mr sisson questions

Nothing much stood out here


In summary - Today changed the directional flow away from asic and back to isx - Isx easily won the day. Very, very, easily imo.


@4.22 - Court adjourned until tomorrow

.