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  "docSlug": "9c995cfa26e4",
  "documentTitle": "Porch Group Inc (PRCH)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-04-08 00:00:00",
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      "text": "There's already evidence that Porch is failing to meet its financial objectives. The Company claimed it would complete the transaction with $205m of cash and no debt. Yet, it ended up with more cash than projected, but its debt balance is still claimed to be $40m in Porch's investor presentations. This figure is actually contradicted by Porch's 2020 10-K to be $50.8m(1)",
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      "kind": "chart",
      "text": "Equity Ownership breakdown",
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      "text": "99.99% of PropTech stockholders elected to retain their holdings, ~$173M remained in trust\n~$323M+ gross proceeds received (trust + PIPE)\nCash: $220M\nDebt: $40M",
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      "text": "debt balance: $50.8m",
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      "kind": "paragraph",
      "text": "There's already evidence that Porch is failing to meet its financial objectives. The Company claimed it would complete the transaction with $205m of cash and no debt. Yet, it ended up with more cash than projected, but its debt balance is still claimed to be $40m in Porch's investor presentations. This figure is actually contradicted by Porch's 2020 10-K to be $50.8m(1) Did projections of positive cash flow in 2H'2020 fail to materialize that could account for this?",
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      "kind": "paragraph",
      "text": "The combined company will have an estimated post-transaction enterprise value of $523 million, consisting of an estimated equity value of $728 million and $205 million in cash and no debt...",
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      "kind": "quote",
      "text": "So as we go public here through this SPAC, we will be very well-capitalized to be able to pursue that M&A strategy. So we'll end this transaction debt-free with $205 million of capital on our balance sheet.",
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      "text": "So as we go public here through this SPAC, we will be very well-capitalized to be able to pursue that M&A strategy. So we'll end this transaction debt-free with $205 million of capital on our balance sheet. When we went out to do our pipe raise, we started at $50 million pipe. It was upsized in the second day to $100 million and then upsized again to $150 million, and we are still 2x oversubscribed for that pipe. And so that will give us a lot of ammo to be able to go and pursue our strategy — CEO Gateway Conf Sept 2020",
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      "text": "1) Porch's 2020 10-K p.89, lists principal payments required as of 12/31/20 total $50.8m",
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      "kind": "source-note",
      "text": "Source: SPAC deal announcement – July 31, 2020",
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      "kind": "source-note",
      "text": "Source: M&A and Investor Update Presentation – Jan 14, 2021 and still listed by Porch as $40m at 3/31/21 presentation",
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      "kind": "title",
      "text": "What Happened To Debt Free And What Is Porch's Real Debt Repayment Requirement?",
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