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  "documentTitle": "Kornit Digital Ltd. (KRNT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2019-05-07 00:00:00",
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  "notes": "The slide uses red circles and lines to draw attention to the Q4 2016 warrant expense and the corresponding percentage of revenue, contrasting it with Q4 2018.",
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      "kind": "callout",
      "text": "How is it possible that Q4'16 expense > Q4'18 expense: Q4'18: 1.1m warrants o/s, price $18.72, 100d historical vol 55.7% Q4'16 Never disclosed warrants o/s, price $12.65, 100d historical vol 46.7%",
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      "kind": "callout",
      "text": "Largest charge was pre-announcement",
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      "text": "It is very concerning to Spruce Point that the largest warrant expense charge was recognized during this pre-announcement period. This raises the potential of expense front-loading to potentially overstate future revenues.",
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      "text": "Warrant Expense As A % of GAAP Revenue: 6.3%",
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      "text": "Why did Kornit recognize warrant expense in Q4 2016 when its deal with Amazon wasn't signed and the warrants legally issued until January 10, 2017? It is very concerning to Spruce Point that the largest warrant expense charge was recognized during this pre-announcement period. This raises the potential of expense front-loading to potentially overstate future revenues.",
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      "kind": "source-note",
      "text": "Source: Kornit SEC filings 1) Warrant agreement Jan 10, 2017",
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      "text": "Table showing GAAP Revenues, Warrant Expense, Non-GAAP Revenue, and Warrant Expense as % of GAAP Revenue from Q4 2016 to Q4 2018.",
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      "kind": "title",
      "text": "Potential Revenue Manipulation Through Front-Loading of Expenses?",
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