Payments platform iSignthis (ASX:ISX) has now responded to a list of 17 questions posed by the ASX regarding the company’s operations.

The 12-page response gave investors, analysts and market commentators plenty of material to pore over, as iSignthis shares remain suspended from trading.

The suspension was first handed down by the ASX back on October 2, after ISX shares fell sharply in the wake of a report by watchdog group Ownership Matters (OM) questioning the company’s governance and accounting practices.

Before that, iSignthis shares went on a torrid run in 2019 — from 20c to $1.70 — as the company built momentum with its reg-tech payments network that provides compliance and know-your-customer (KYC) services for customers to comply with anti-money laundering laws.

While still in a trading halt, iSignthis released its quarterly 4C filing last week, which showed quarterly cash receipts rose by 40 per cent in the three months to September to $8.3m.

Included in today’s response was an (unaudited) breakdown of monthly revenues in the period from April to September 2018.

iSignthis’ prospectus allocated more than 300m performance share options for the company’s executive team and early investors, in the event that three separate revenue targets were hit by June 2018.

The OM report cast a spotlight on the third tranche, which it said would only have been cleared by $1,347 when adjusted for R&D and interest costs.

This table shows that iSignthis’ total contract fee service revenue rose to $1.93m in June 2018, before a sharp fall to around $115,000 the next month:

During the period to June 2018, ISX advised that a material chunk — 23.5 per cent — of revenues were derived from a trading platform called OT Capital.

In February 2018, ASIC obtained an injunction against OT Capital and warned retail investors against dealing with the company. ASIC subsequently received a notice of proposed deregistration for OT Capital earlier this year.

iSignthis also addressed the nature of its relationship with Danish bank KAB, which processed a series of transactions to and from an iSignthis subsidiary.

An AFR report last month revealed that a number of those transactions triggered a high-volume alert at the bank between June and July 20.

KAB was subsequently taken over by Danish regulators in September 2018 amid allegations of money-laundering.

When asked by the ASX why it chose KAB, iSignthis said it was one of the few banks in the Eurozone jurisdiction that would hold client funds “as a custodian for authorised electronic money institutions” such as iSignthis’ subsidiary.

The company approached other banks in Scandivia, Germany and the UK, but struggled to attract interest for custodial services because its revenues were still “modest at that stage”.

In a previous statement to the ASX, iSignthis also confirmed that it’s cooperating with ASIC, after the corporate regulator issued a notice on October 8 for the company to produce information confirming that it was in compliance with its continuous disclosure obligations.