Looks like the tide is turning
disallowed/business/com...rn-as-inquiries-continue-20191024-p533tu.htmliSignthis yet to see 'any cause for concern' as inquiries continueBy Laura Chung and Colin KrugerOctober 24, 2019 — 2.05pm
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TODAY'S TOP STORIES'You can't make this up': Journalist barred from Australian free speech conferenceControversial payments-tech provider iSignthis says its board and executive team are yet to see "any cause for concern" about its disclosure as it detailed the extent of the queries raised by two separate inquiries.
Chief executive John Karantsiz told investors the company had been forced to answer questions from the Australian Securities Exchange and the Australian Securities and Investments Commission (ASIC) on "diverse subjects". These include the company's European Union licences, audited revenue figures,
its exposure to cryptocurrencies and its relationship with controversial Danish bank KAB which collapsed earlier this year.
iSignthis chief executive John Karantzis says the outlook for the company is "extremely positive".
“We are actively engaging with the regulators and we are yet to see a question that gives our board or our executive team any cause for concern about our continuous disclosure, our due diligence or our business operations,” Mr Karantzis said at a Goldman Sachs Annual tech day in Sydney on Thursday.
"Our priority now is to answer questions from regulators and help them understand our business and what we do."
Mr Karantzis said the company would respond to further queries from the ASX in the next few days.
In a bid to reassure shareholders, the company said on Thursday the ongoing investigations “do not continue to divert senior management attention from the operation”.
The company provides automated payment verification services to clients such as banks and brokers so they can meet "know your client" requirements under anti-money laundering regulations.
Despite the controversy surrounding the company, iSignthis' September quarterly cash flow statement to the ASX on Thursday showed a positive operating cash flow of $1.07 million.
Reported revenue and cash receipts from customers were both strong with $8.58 million in revenue reported for the period up 36 per cent quarter on quarter. Cash receipts from customers were up 38.5 per cent tp $8.36 million.
It underlined the company's recent claims of strong growth in gross processing transaction volumes (GPTV) on its payment platform which have grown from $1.1 billion on an annualised basis in August to $1.9 billion in September.
It said GPTV growth would continue as more customers used the payments network.
“The outlook for the company continues to be extremely positive, with growth prospects in the EU looking favourable well into the future,” Mr Karantzis said.
The company has estimated that next quarter's cash outflow, which excludes inflows, could reach $13.8 million - with product manufacturing and operating expenses set to more than double September’s quarterly costs.
It also reiterated its earnings guidance.
