@ChrisBond
First of all, milestone C was achieved in excess of $512K or c.10% over the threshold as set in the prospectus. The AUDITED revenue of $5,512,057 for the 6 months ended 30th June 2018 included ‘government grants’ and ‘interest’ and these two items are assessable income and therefore for all intents and purposes are classified as revenue. Discussing anything else is just noise or distraction. The recent manipulative media tactics have done exactly that. Further, the prospectus did not say EBITDA or NPAT, so no point arguing about that either (as others have done).
The rules of engagement were laid out some time back and JK played by those rules in my opinion. I would have done exactly that, within my powers, to hit those milestones, e.g. offering discounts to sign up big customers, investing in systems or extra resources to process/validate payments quicker etc, as the key was meeting those ‘Revenue’ target, not profit. Most if not all businesses undertake tax planning exercises before end of the year to minimise tax and that is completely legal. Then why similar strategies and plans to hit milestones are considered crossing the line?
Additionally, the published report of ISX was audited by an external auditor. From experience, audits with listed companies especially related to performance shares or bonuses are quite comprehensive and tight. Who knows, ISX could have initially produced a raw revenue figure of $6m or $7m?When we doubt or question the achievement of milestones, we are questioning both the integrity of the management and that of the external auditor. External auditors are independent, and their role is to lend credibility to financial reports. And if you don’t trust this process then share investment is not for you, especially with speculative start-ups like ISX as many things can go wrong along the way.
Between the share price ‘crashing down to zero’ or ‘reaching mighty highs’, at this stage I’m in favour of the latter. The recent falsified media stories have not changed my sentiment one bit.All in my views. DYOR
