- Embattled fintech iSignthis (ISX) has launched into profitability in its latest half-year accounts
- Today’s news saw ISX table a near-$800,000 profit, turning around the corresponding half’s $876,000 loss
- In addition, the fintech also nearly tripled its revenue over 2020’s first half, bringing in $19.5 million in revenue for the period
- By June 30, iSignthis had $15.5 million in the bank, although its reserves were impacted by an investment in NSX Limited (NSX), which ISX Managing Director John Karantzis also leads
- However, today’s financials won’t have any bearing on the fintech’s share price
- ISX shares have been locked up for over a year amid a scuffle with the ASX over the legitimacy of performance shares
- Company stock last traded for $1.07 in October 2019
Embattled fintech iSignthis (ISX) has launched into profitability in its latest half-year accounts.
Today’s announcement, which divulged the technology stock’s financials for 2020’s first half, tabled a $770,028 profit after tax. In comparison, iSignthis recorded an $875,904 loss over the first six months of 2019.
In addition, the fintech also nearly tripled its revenue over 2020’s first half. During the period, ISX brought in $19.5 million in revenue — up 173 per cent from the $7.1 million result this time last year.
iSignthis released a preliminary version of its accounts in late August, and today’s results are down slightly on the previous unaudited guidance. For example, its concrete profit margins shave almost $60,000 off August’s guidance, while its finalised net assets are $107,897 lower than originally forecast.
Positively, ISX retained a strong cash balance over 2020’s first half: the tech stock had $15.5 million in the bank come June 30. This is up from 2019’s corresponding half, which indicated ISX had just under $10 million in reserves.
However, the company’s cash at balance was impacted by a few key activities in 2020’s first half. Earlier this year, the company spent $5.7 million to buy a 19.22 per cent stake in NSX Limited (NSX), which ISX Managing Director John Karantzis also leads.
Speaking to the results, the iSignthis boss said he was pleased to record a half-year profit.
“Our recurring revenues continue to grow, despite some significant business and repetitional impacts during the period as a consequence the ASX’s suspension and ‘Statement of Reasons’,” John stated.
“Following a year of disruption due to the ASX matter and COVID-19, the company is now also in a position to consider its options fully with regards to further territorial expansion outside the European Economic Area (EEA),” the Managing Director concluded.
How will this affect ISX shares?
While ISX’s half-year accounts were released to the local sharemarket, the news won’t have any bearing on the fintech’s share price.
That’s because iSignthis shares haven’t traded since last year, caught up in a battle between the tech stock and the sharemarket operator.
In recent months, ISX and the ASX have gone toe-to-toe over a statement of reasons, which questions the legitimacy of 336 million performance shares issued to iSignthis managers and directors.
Late last year, ISX took the scuffle to Federal Court in a bid to return its shares to quotation. Then, back in August, iSignthis upped its claims against the ASX to $264 million in damages.
Less than a fortnight later, the tech lister tacked on an extra $200.7 million, bringing its total claim against the ASX to $464.7 million.
“By any measure, the increase in damages claimed by ISX and the impact of any adverse finding continues to make this a high stakes and material case for the ASX, as the impact goes beyond monetary damages and challenges ASX’s conduct and suitability to operate a market,” John Karantzis stated.
Now, it’s now been over a year since ISX shares we suspended from trade. Company stock last traded for $1.07 in October 2019.