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  "documentTitle": "PetIQ, Inc. (PETQ)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-30 00:00:00",
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  "notes": "Uses a combination of corporate filings/quotes and a dual-axis chart to highlight the discrepancy between narrative and financial reality.",
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      "kind": "callout",
      "text": "PETQ 10-K – FY 2018",
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      "kind": "callout",
      "text": "PETQ Earnings Call – Q2 FY17",
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      "kind": "callout",
      "text": "However, PetIQ contributes less than one tenth of 1% of sales to R&D, on which it spent as little as $33,000 in Q3 FY18 - down close to 80% since the time of the IPO.",
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      "text": "Paltry R&D Spending For An \"Innovative\" Company",
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      "text": "R&D Spend as a % of Sales: 0.1%",
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      "kind": "paragraph",
      "text": "Management refers to PetIQ on earnings calls as an \"innovative\" company with a focus on product portfolio expansion. The Company's 10-K states that product improvement and new product development is a \"key element of our growth strategy,\" and that company results have \"material\" downside risk to a lack of success in product development. However, PetIQ contributes less than one tenth of 1% of sales to R&D, on which it spent as little as $33,000 in Q3 FY18 – down close to 80% since the time of the IPO. R&D grew in Q4 largely due to its acquisition of HBH Enterprises, not of a renewed internal initiative to invest in R&D.",
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      "kind": "quote",
      "text": "\"The company is focused and executing on the following initiatives:.... Second, innovation; we're focused on further product development and innovation in each of the pet categories that we participate in and continue to broaden our portfolio across each of our factories' manufacturing disciplines.\" — Scott Adcock - President and Co-Founder, PetIQ",
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      "kind": "title",
      "text": "Product Innovation, A \"Key Element Of [PetIQ's] Growth Strategy,\" At A Standstill",
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