{
  "docId": "019dd923-622b-71dc-a6d9-913c994da46b",
  "docSlug": "92117b1436eb",
  "documentTitle": "Mitek Systems, Inc. (MITK)",
  "authorId": "02_Elliott_Management",
  "authorName": "Jesse Cohn",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2018-11-20 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 3,
  "pageCount": 6,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "preempt_rebuttal",
  "function": "preempt_rebuttal",
  "density": "overcrowded",
  "nDataPoints": 2,
  "notes": "This is a text-heavy page from a shareholder letter, likely part of an activist campaign.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-913c994da46b/3",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-913c994da46b",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-913c994da46b.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-913c994da46b#slide-3",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Mitek's true rationale for adopting this poison pill - old-fashioned entrenchment - is demonstrated by the Company's use of an amorphous and far-reaching definition of beneficial ownership that extends well beyond the requirements of the Internal Revenue Code.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-1ac3-70f9-8567-d66bfd81710f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.1,
        "y": 0.35
      },
      "kind": "paragraph",
      "text": "Mitek followed this erroneous statement with another the next day, when it stated in its November 5 press release that it had only rejected ASG's proposal after consultation with its financial advisors.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "46bbba4d-9143-4e96-a3d6-1fbe1bb3c74d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.1,
        "y": 0.2
      },
      "kind": "paragraph",
      "text": "Finally, we are deeply troubled by the fact that Mitek has made misleading statements to shareholders regarding ASG's approaches to Mitek and Mitek's engagement with ASG.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "53d596f5-3c1f-4ee7-a706-6fe6a1f5486f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.8,
        "x": 0.1,
        "y": 0.8
      },
      "kind": "paragraph",
      "text": "We believe Mitek will face considerable downside risks in the market ahead. It is the responsibility of the Board to focus its attention on maximizing value rather than entrenching itself.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6b082c8e-735b-462b-aa26-9c26659187e5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.1,
        "y": 0.65
      },
      "kind": "paragraph",
      "text": "In fact, it is Mitek's lack of a serious response to ASG's proposal that is inadequate. We consider it the responsibility of the Board to enter into a non-disclosure agreement with ASG and permit ASG to conduct customary due diligence.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "706be45c-8de8-46ca-bc34-6c998d938975",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.8,
        "x": 0.1,
        "y": 0.1
      },
      "kind": "paragraph",
      "text": "Mitek's true rationale for adopting this poison pill - old-fashioned entrenchment - is demonstrated by the Company's use of an amorphous and far-reaching definition of beneficial ownership that extends well beyond the requirements of the Internal Revenue Code.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ab2111d2-1524-4eb6-85bc-c50844739e1c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.1,
        "y": 0.5
      },
      "kind": "paragraph",
      "text": "Even at our current ownership levels, Elliott is now a larger investor in Mitek than all of Mitek's non-executive directors combined.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d6ca8bc7-2c08-47ba-90a7-ef7ba5345aa3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "ASG reached out to us shortly after the announcement of our executive changes... — Mr. Hansen",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-1ac3-70f9-8567-da59a2b19f0b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "antagonist-introduction",
      "slug": null,
      "matchId": "dbacd838-1156-4789-9b99-2e7133796648",
      "evidence": "The text frames Mitek's board as entrenched and misleading.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [
    {
      "to": 3,
      "from": 3,
      "beatId": "66b77d57-b0cb-4583-8140-0a1513451a7d",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Evidence & Proof",
      "beatSlug": "consultants-gambit-evidence-proof",
      "evidence": "The preempt_rebuttal slide presents evidence and proof for Mitek's rationale.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Evidence",
      "parentBeatSlug": "evidence"
    }
  ],
  "loops": [
    {
      "to": 3,
      "from": 2,
      "name": "Anchor",
      "slug": "18-anchor",
      "bestFor": "Pricing discussions, negotiation, budget requests",
      "matchId": "e1ab4004-c993-4562-9c3c-f3fd92bb1697",
      "evidence": "The expose_contradiction and preempt_rebuttal slides work together to anchor the discussion.",
      "position": 0,
      "objective": "To anchor the discussion around the risks of the standalone path",
      "structure": "The Extreme Option (The Anchor) -> The Flaws of the Extreme -> The Balanced Proposal",
      "confidence": 0.6,
      "description": "Set a high reference point to make your actual proposal seem reasonable and attractive"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}