Financial Analysis 2Q20
- 2Q20 is the Company's 5th quarter of positive operating cash flows, with a +$1.6m quarterly result.
- Cash balance at end of quarter was $16.1m in consolidated Group Cash, with a $1.3m reduction in the quarter mainly due to the $1.5m investment in NSX Limited during the period.
- 2Q20 receipts from customers were down circa 20% from 1Q20 to $8.4m due to impacts from the ASX suspension and COVID-19 in the quarter.
- Client funds held decreased during the quarter to circa $82million, due to a slight reduction in customer confidence as a result of the ASX suspension.
- The Company made a further $1.5m investment in NSX Limited during the quarter, per our announcement dated 28 May 2020. In the quarter the Company is expecting to take a $1.6m impairment (non-cash) in its investment in NSX, in line with the lower share price for NSX.
- Costs related to the ASX legal proceedings in the quarter were circa $600k, taking the first half legal and advisory costs for this matter to circa $1,030k.
- Payments for directors fees and salaries for the quarter were $293k.
- For the first half 2020, excluding the impairment for NSX and costs related to the ASX legal proceedings, unaudited operating net profit after tax would have been circa $3.3m (NPAT).
- For the first half 2020, unaudited operating net profit after tax is circa $660k (NPAT).
Business Activities 2Q20
- 2Q20 unaudited revenue was for the Group was circa $7.7m. The percentage of revenue derived from industry segments during the quarter is detailed below:
- Options/CFDs/FX - 13%
- Crypto/digital currency - 2%
- Online gambling - 4%
- Online video gaming - 46%
- Credit providers - 9%
- Travel services - 0%
- Other - 26%
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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.