2019 Annual Report
The Company continues to build on the success of having designed and built its own regtech platforms: Paydentity(TM), ISXPay(R) and flykk(R), and having significantly enhanced Probanx(R), since acquiring that software platform in 2018.
Our platforms create opportunities for the company to deliver to customers either regtech licensing or delivery of regulated services underpinned by our regtech platforms.
- Maiden statutory profit of circa $1.6m (NPAT) for the year ending December 2019 (CY19) vs statutory loss of -$8.0m for CY18
- 'Operational' EBIT of circa $6.6m (excluding one-offs, non operational and non cash items)
- Revenue of $31.2m, up over 400% from $6.1m in CY18
- Cashflow positive model, with $4.4m of net cash from operations for CY19
- Client Funds held $96.2m
- Subsequent to end of the financial year, the NPAT positive trend continued in January 2020
- Cash and cash equivalents of $17.7m at Year End, in addition to being cash flow positive, provides adequate funds for expansion of current and future business opportunities
Non Cash, Non Operational and One Off costs Include:
- New Product R&D Spending of $1.08m in 2019 Up 223% from $334k in 2018
- $445k of New Product R&D Spending was in Q4 2019
- Card Scheme Membership Extended to Diners, Discover and Visa Australia ~$221k
- Intellectual Property protection including new patent applications ~$280k
- ASX suspension related costs of circa $697k
- Non cash costs of $2.1m (mainly share based payments)
- Strong Growth in our GPTV from $880m to ~$2Bn (annualised run rate at Q4)
- Appointment of CFO, Elizabeth Warrell, and CTO, Michael Andrewes
- Rated "Prime" by ISS ESG
- Admission to ASX300 and All Ordinaries index
- Soft launch of our flykk(R) e-money ecosystem
- Visa Australia Principal Membership achieved
- BREXIT transitional FCA license granted.
- Integration of people, product & commercial approach of Probanx Systems Ltd and UAB Baltic Banking Service (BBS), following acquisition of BBS in February.
- UAB BBS acquisition completed for EUR75k in cash and EUR575k to be issued as shares.
- Integrated Probanx to Central Bank of Lithuania to deliver ISO20022 based SEPA Core and SEPA Instant payments, for iSignthis eMoney (ISEMCY22XXX) and third party customers
- Probanx CorePlus platform 3rd party certified to APRA CPS234
- Intellectual Property enhanced, with further patents granted
- Deployed merchants to our own designed & built Tier 1 card processing network
- Resubmitted APRA (ADI PPF) , ASIC (AFSL) and RBA (ESA) submissions between February - June to accommodate brokers and market operators, which led to the NSX agreements.
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About iSignthis Ltd
iSignthis Ltd (ASX:ISX) (FRA:TA8) is a hybrid monetary financial institution and also a RegTech leader in remote identity verification, payment authentication with deposit taking, transactional banking and payment processing capability. iSignthis provides an end-to-end on-boarding service for merchants, with a unified payment, electronic money and identity service via our Paydentity(TM) and ISXPay(R) solutions.
By converging payments and identity, iSignthis delivers regulatory compliance to an enhanced customer due diligence standard, offering global reach to any of the world's 4.2Bn 'bank verified' card or account holders, that can be remotely on-boarded to meet the Customer Due Diligence requirements of AML regulated merchants in as little as 3 to 5 minutes. Paydentity(TM) has now onboarded and verified more than 1.5m persons to an AML KYC standard.
iSignthis Paydentity(TM) service is the trusted back office solution for regulated entities, allowing merchants to stay ahead of the regulatory curve, and focus on growing their core business. iSignthis' subsidiary, iSignthis eMoney Ltd, trades as ISXPay(R), and is an EEA authorised eMoney Monetary Financial Institution, offering card acquiring in the EEA, and Australia.
ISXPay(R) is a principal member of Mastercard Inc, Diners, Discover, (China) Union Pay International and JCB International, an American Express aggregator, and provides merchants with access to payments via alternative methods including SEPA, Poli Payments, Sofort, PRZ24 and others.
Probanx Solutions Ltd, a wholly owned subsidiary of iSignthis Ltd, provides API based access to CORE Banking solutions, SEPA Core, SEPA Instant and SEPA business scheme, for neobanks, banks, credit unions and emoney institutions, and provides a bridge to the Eurosystem's Central Bank of Lithuania's CENTROLink service.