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  "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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  "pageNumber": 9,
  "pageCount": 63,
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  "notes": "Uses a red flag icon to signal danger/fraud risk.",
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      "kind": "callout",
      "text": "Porch essentially barters its software for leads, which it then sells, yet doesn't record the transaction in cost of revenues. Given the subjectivity and managerial discretion on placing values for exchanged services in barter transactions, they have often been heavily scrutinized by the SEC and are susceptible to accounting fraud.",
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      "kind": "paragraph",
      "text": "Porch's Disclosure on Cost of Revenue excludes lead cost: \"Cost of revenue primarily consist of professional fees and materials under the Managed Services model and credit card processing fees, including merchant fees.\"",
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      "kind": "paragraph",
      "text": "Porch's CEO At Gateway Conference: \"Porch provides ERP and CRM software to a wide variety of home services companies. Those companies can pay us with typical software fees or we really encourage those companies to pay us by providing us access to their consumer, to their homebuyers, where we then generate B2B2C transactional revenues as we help those consumers with key services for their home.\"",
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      "text": "Porch provides ERP and CRM software to a wide variety of home services companies. Those companies can pay us with typical software fees or we really encourage those companies to pay us by providing us access to their consumer, to their homebuyers, where we then generate B2B2C transactional revenues as we help those consumers with key services for their home. — Porch CEO At Gateway Conference",
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      "text": "SEC-Charged Barter Frauds table",
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      "text": "History of SEC-Charged Barter Related Frauds",
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