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  "documentTitle": "Chinook Therapeutics Inc (KDNY)",
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  "presentationDate": "2023-06-07 00:00:00",
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  "notes": "The slide uses forensic accounting analysis to challenge the legitimacy of reported revenue and the operational substance of the SanReno joint venture.",
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      "text": "Collaboration and License Revenue\nTotal revenue was $51.6 million for the year ended December 31, 2021, an increase of $50.8 million compared to $0.8 million for the year ended December 31, 2020.",
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      "text": "The $40.0 million should be recorded as “other income” or the “gains from investment”, not revenue.",
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      "text": "revenue: $40.0 million",
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      "text": "SanReno’s seems to lack substance thus far, further calling into question the reasonableness of the $40.0 million valuation. The Shanghai operating entity was only set up on December 30, 2021, meaning that SanReno has no record of industry success.",
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      "kind": "paragraph",
      "text": "$40.0 million of Chinook’s reported 2021 revenue comes from the deemed value of its non-cash contribution to SanReno. The source of this revenue is consideration from a JV investment transaction; therefore, it should have been booked as income from investing, not revenue.",
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      "text": "Total revenue was $51.6 million for the year ended December 31, 2021, an increase of $50.8 million compared to $0.8 million for the year ended December 31, 2020. The increase in revenue was primarily due to $41.2 million of non-cash revenue recognized under our license agreement with SanReno and a development milestone of $10.0 million recognized under our agreement with Merck and Co, Inc., or Merck. The agreement with Merck was acquired through the Merger. For additional information, refer to Note 11 “Collaboration and License Agreements”. — Chinook 2021 10-K, Pg. 77",
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      "text": "Source: Chinook 2021 10-K, Pg. 77",
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      "kind": "source-note",
      "text": "33 SanReno Therapeutics (Shanghai) Credit Report,. April 27, 2023. See below.\n34 信瑞诺医药(上海)有限公司\n35 https://www.sanreno.com/CN/Contact.aspx. An office mentioned in SanReno’s Shanghai filings seems to be a service office.\n36 https://www.yscro.com/cde/6f39ab7e5ed00ed8a24c205e1ac90d45.html",
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