On 5th June, in response to a query from the ASX, the Board...

On 5th June, in response to a query from the ASX, the Board stated that they knew of no reason why their share price should be dropping so sharply. One month later they issued a profit warning. The ASX queried this further but the Board contended that they couldn't have known on 5th June what they discovered on 7th July. At best this is clumsy.

Reporting three years (including two future years) revenue in one year is a borderline accounting process. If nothing else the lumpy revenue reporting that ensues makes it difficult for investors to evaluate a view.
The amount of future year revenue booked across the last five years as represented by Non-Current Trade Receivables inside their Balance Sheets was:

2014 $ 2,632
2015 $13,260
2016 $23,373
2017 $23,299
2018 $26,892

The revenue adjusted by the removal of the future / unearned revenue for 2015 ($70,279 +$2,632 - $13,260) would be $59,651

Reported Revenue Adjusted Revenue
2015 $70,279 $59,651
2016 $84,532 $74,419
2017 $91,169 $91,243
2018 $91,175 $87,582

In the absence of any better knowledge on my part, I think the amount of the revenue adjustment would be passed straight through to the bottom line. So the impact of recognising revenue prior to it being earned may be meaningful. I suspect the new accounting regulations due to come into force soon will make this approach a lot more difficult.

I was less concerned about the lack of directors "skin in the game" when Steve Killelia was a director but his retirement opens up that question a lot more now than previously.

For me it's time to take some risk off the table.