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  "documentTitle": "Dropbox, Inc. (DBX)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2020-02-06 00:00:00",
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  "notes": "Includes a specific quote from company filings and a table showing the pro forma adjustment to book value.",
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      "text": "Accrued compensation fell in Q1 2019, and Dropbox did not provide any quantitative discussion regarding the factors why. We believe it may have been related to bonus payments made to employees. Yet, it does not appear that any of the $48.5m of future cash compensation requirements increased this account",
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      "text": "We believe Dropbox should have been conservative and accrued a $48.5m liability for cash contractual agreements for future payments related to the HelloSign acquisition. As a result, we believe its book value is overstated.",
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      "text": "On February 8, 2019, the Company acquired all outstanding stock of JN Projects, Inc. (d/b/a HelloSign) (\"HelloSign\"), which provides an e-signature and document workflow platform......In addition to the total purchase consideration above, the Company has compensation agreements with key HelloSign personnel consisting of $48.5 million in future cash payments subject to on-going employee service. The related expense will be recognized within research and development expenses over the required service period of three years, and the payments will begin in the first quarter of 2020 if the requisite service is provided.",
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      "text": "Book Value Potentially Over-Stated From Missing Cash Liability",
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