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  "documentTitle": "dLocal (DLO)",
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  "authorName": "Carson Block",
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  "sourceTypeLabel": "Short seller",
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  "notes": "The text details the forensic accounting process used to reconcile merchant-related cash flows from consolidated financial statements.",
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      "text": "Therefore, either DLO's disclosures are inadequate (i.e., more detail is needed to disaggregate merchant account balances from those of DLO), inaccurate, or DLO likely used client funds for its 2020 cash needs.",
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      "text": "Trade receivables: Of the $45,932 outflow... we ascribe $42,303 to the merchants.",
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      "text": "Trade payables: Of the $89,888 inflow... we ascribe $85,895 to the merchants.",
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      "text": "Effects of exchange rates on cash and cash equivalents: This adjustment totals $30... We ascribe $18 of it to the merchants.",
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      "text": "Net exchange differences: This is a minor adjustment of only $99. We ascribe it to merchants.",
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      "kind": "paragraph",
      "text": "The Check Sum field in the adjusted cash flow statement below compares the difference between beginning and end of year cash balances to the cash flow account totals.",
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      "text": "The key to this analysis is remembering that because DLO holds clients' funds, its consolidated accounts include cash, trade receivable, and trade payable balances belonging to its merchant clients.",
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      "text": "discrepancies could be due to inadequate or inaccurate disclosures, it also gives rise to the concern that DLO possibly used client funds.",
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      "text": "Trade Receivables correspond to uncollateralized gross amounts due from acquirers, processors, merchants and preferred suppliers for services performed that will be collected in less than one year, so they are classified as current — DLocal 2020 Financial Statements Note 16.",
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