{ "docId": "019dd923-622c-750b-8b99-1e32ee1ceb49", "docSlug": "cce862680d4f", "documentTitle": "Heska Corporation (HSKA)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-10-25 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 116, "pageCount": 128, "prevPage": 115, "nextPage": 117, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 4, "notes": "Uses excerpts from a proxy filing and a Form 990 to demonstrate the contradiction.", "elementsJson": [ "headline_text", "callout_box", "screenshot", "data_table", "paragraph" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-1e32ee1ceb49/116", "deckHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49#slide-116", "components": [ { "bbox": { "h": 0.11, "w": 0.98, "x": 0.02, "y": 0.16 }, "kind": "callout", "text": "David Sveen founded and runs a consulting firm named Cedarstone that provides services to non-profits. He is also a trustee and President of the Domanada Foundation, which has paid Cedarstone approximately $420,000 each year from 2016 through 2019. In fact, the two organizations even share an address. Yet, it is listed on the form as \"independent\" – how is this so?", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "58b3189f-5007-4221-b774-7a3de56d26cd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.24, "x": 0.23, "y": 0.71 }, "kind": "callout", "text": "How are they \"independent\" with the same address and individual?", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bad00582-d7b5-4484-bdf1-b3a7c1784259", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "In fact, the two organizations even share an address. Yet, it is listed on the form as “independent” – how is this so?", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3c-7011-a9ad-7618729ae628", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.98, "x": 0.02, "y": 0.33 }, "kind": "paragraph", "text": "David E. Sveen, Ph.D., age 64, has served us as a Director since November 2013. He is the Executive Chair and Managing Director of Cedarstone...", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5aa69a2f-4bdb-450e-b643-85e4c4b2a934", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.98, "x": 0.02, "y": 0.81 }, "kind": "paragraph", "text": "According to Charity Navigator, a common rule of thumb in assessing charities is that the organization should spend 25% or less of its budget on total administration expenses. In total from 2016 through 2019, Domanada spent 49.4% of its budget on expenses and 26.5% of its budget on Cedarstone alone.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bba1a1a7-45ea-4a89-abb3-e2b9479610a1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.5, "x": 0.02, "y": 0.91 }, "kind": "source-note", "text": "Source: Heska 2021 proxy, Domanada Foundation Form 990s for 2019, 2018, 2017, and 2016", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "94eb7e2f-4d0f-47ac-ad23-e7a7e5d2bd41", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.28, "w": 0.98, "x": 0.02, "y": 0.49 }, "kind": "table", "text": "Form 990 data showing David Sveen as Trustee and Cedarstone Partners as an independent contractor receiving $421,800.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3820c29e-9ca9-404b-97db-2f61ff47d4ac", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.68, "x": 0.28, "y": 0.03 }, "kind": "title", "text": "Heska Director Sveen Has A Charity With A Not So Clearly Independent Administrator", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7a491c4f-7388-484f-807b-59ffdcbab377", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.98, "x": 0.02, "y": 0.44 }, "kind": "title", "text": "Excerpts From Domanada Foundation 2019 Form 990", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2e11e3e5-ac8e-44f2-93d5-a55e465d1547", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.98, "x": 0.02, "y": 0.28 }, "kind": "title", "text": "David Sveen Bio in Heska Proxy Filed 3/25/21", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ddd06b63-508b-4b1b-bbaf-45d2f84e5aae", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "f46782c5-e987-42a8-96e1-02da0b4f108e", "evidence": "The slide explicitly questions the independence of a contractor to expose a potential conflict of interest.", "confidence": 0.9 } ], "arcBeats": [ { "to": 128, "from": 51, "beatId": "4e43434d-b2d5-4e85-8876-a8ed1db53557", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Victory", "beatSlug": "overcoming-monster-the-victory", "evidence": "The deck concludes with a strong sell opinion and a call to action for investors.", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }