iSignthis has revealed that the Australian Securities and Investments Commission is investigating whether it contravened continuous disclosure rules during 2018.

The company, which as been suspended by the ASX since October 2019 filed its annual results on Friday unveiling its maiden statutory net profit of $1.6 million for the 2019 calendar year. That compared to an $8 million loss in 2018.

iSignthis said the “unjustified suspension” has dampened its growth.

It also revealed that ASIC was looking into disclosures from 1 April 2018 to 2 October 2019 as part of its investigation.

“The Company continues to cooperate with ASIC in this matter,” iSignthis said.

"Potential consequences of this matter could include legal fees and charges, fines and penalties and reputational damage to the Company. The Company holds no provision for this matter, as the outcome is so uncertain, no reliable estimate can be made.”