Respectfully, did you read ISX’s response to the SOR? I’ve copied the link to the rebuttal for your examination (at the end of my post).
There are essentially two parts Revenue, one definition and 2 nd around the legality of achieving it, i.e. ‘revenue recognition’.
What constitutes revenue does need clarification (sometimes), e.g. ‘GST revenue’ is different from that of a ‘Jobkeeper’ revenue, and so on. There is evidence that revenue definition to achieve performance shares meant ‘turnover’ and your findings around what constitutes revenue support that definition as well, i.e. it’s NOT just ‘ordinary business revenue’ (whatever that means) as asserted by ASX.
Who defines what’s ordinary or extraordinary? For one ISX is a startup, and it provides an online ecosystem that supports software, CRM, integration to ISXPay, deployment & integration to various 3rd party platforms in banking, accounting, etc…for clients who don’t have that knowledge nor the resources. The final product a client owns has a significant value add regardless of the make-up of those costs. In my understanding ISX did not represent itself as a commission agent.
Next comes the legality, i.e. “Revenue Recognition’ and clearly ASX nor ASIC are not the authority to determine that. There are Australian Accounting standards (AASB https://www.aasb.gov.au/admin/file/content105/c9/AASB118_07-04_%20COMPapr07_07-07.pdf) that provide standards to annual reporting periods. Of course there will variations and amendments to standards, also differences in interpretation, which is why there are Independent auditors who fulfill and comply with those requirements/standards. It’s entirely possible that the auditor could get this wrong, which is why cases can be challenged in court by ASIC (regulator) or vice versa.No different to how tax laws are or can be challenged in court when there is a difference in opinion with the ATO.
Therefore I echo the sentiment of @ itzgr82balive and other holders, can ASX rationalise its continued suspension of ISX for reasons of achieving performance share?
I also share the view of @Surfguy, that is ASIC also culpable for not acting soon enough and protecting the rights of us holders despite the numerous complaints?
Finally @sallyfolds, please share what you find after discussing with the legal team? This has dragged on far too long.
iSignthis’ official response to ASX’s “Statement of Reasons”
