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  "documentTitle": "dLocal (DLO)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "presentationDate": "2022-11-16 00:00:00",
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  "notes": "The slide uses a table to illustrate sensitivity analysis of net monetary positions and text to detail the contradiction between UK and Malta subsidiary filings.",
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      "text": "In other words, UK LLP’s financials show that it owed Malta Operating 26.6% more than Malta Operating’s financials show it could be owed.",
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      "text": "DLO has three primary operating subsidiaries – DLocal Ltd (Malta) (“Malta Operating”), Dlocal LLP (UK) (“UK LLP”) and DLocal Corp (UK) (“UK Corp”) – which in turn sit at the top of a network of local subsidiaries. In 2019 and 2020, these subsidiaries respectively accounted for ~94.9% and ~90.5% of consolidated revenue. UK LLP’s 2020 financials show that as of December 31, 2020, it owed Malta Operating $15.7 million. Malta Operating’s 2020 financials show that as of December 31, 2020, it is owed by all related parties a total of only $12.4 million. In other words, UK LLP’s financials show that it owed Malta Operating 26.6% more than Malta Operating’s financials show it could be owed.",
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      "text": "Then the 2021 20-F reverts to the lower Net Monetary Position of $45.6 million. In this document, DLO ceases to separately disclose Trade and Other Receivables in local currency, which illustrates another theme – DLO’s increasing opacity.",
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      "text": "We understand that substantially all of cross-border payments that DLO processes pass through these three subsidiaries. Two of these subsidiaries’ financials, which are available from the UK Companies House and the Malta Corporate Registry, are in opposition to one another in the flow of funds, bolstering our view that DLO’s accounts are materially misstated. The primary subsidiary DLocal LLP (UK) (“UK LLP”) shows an account payable owed to the primary subsidiary DLocal Ltd. (Malta) (“Malta Operating”) that is contradicted by Malta Operating’s filings.",
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      "kind": "paragraph",
      "text": "Because DLO is in the business of managing money moves between counterparties, banks, and across borders, the highly mutable nature of the foreign currency risk reporting and the foreign currency receivables, in particular, are as troubling as its attempt to cover it up.",
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      "text": "5 DLO 2021 20-F, p. F-52",
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      "text": "Subsidiary Account Conflicts",
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