{
  "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": 117,
  "pageCount": 128,
  "prevPage": 116,
  "nextPage": 118,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 12,
  "notes": "Includes a screenshot of a legal document (Case No. 2005-004562) and a quote from a 10-K filing.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "screenshot"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-1e32ee1ceb49/117",
  "deckHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49#slide-117",
  "components": [
    {
      "bbox": {
        "h": 0.11,
        "w": 0.47,
        "x": 0.52,
        "y": 0.36
      },
      "kind": "callout",
      "text": "Was Unable to Properly Calculate Interest Expense After Doing a Convertible Note Offering; We Suggest Companies Not Do Structured Products if They Don’t Understand Them",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "11d3196a-7a73-461a-9298-98fca6a052e7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.47,
        "x": 0.03,
        "y": 0.36
      },
      "kind": "callout",
      "text": "Was Disciplined by the Colorado State Board of Accountancy for Practicing as a CPA in Colorado for almost three years Without Having a State License (Case No. 2005-004562)",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "282555a6-c6b8-49a0-8496-0b0b6ca89f24",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "How can the Board allow Heska to operate without a CFO for that long, unless they had concerns?",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-70f3-714d-84b5-855d0a15bed3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.47,
        "x": 0.03,
        "y": 0.48
      },
      "kind": "image",
      "text": "Excerpt from Colorado State Board of Accountancy document",
      "attrs": null,
      "subkind": "screenshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bc6d9723-1105-4417-a6e6-6c5e84941812",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.84,
        "x": 0.12,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "CFO Grassman worked at PricewaterhouseCoopers for almost three years without having an active Colorado state CPA license. In addition, Heska was unable to properly calculate the interest expense resulting from their convertible notes. We question the conclusion of “immateriality” for a Company with minimal profitability. We note that Grassman worked at PwC for 15 years without making Partner. We also note that Grassman was appointed VP and CAO in December 2017 upon the departure of the previous CFO but was not named CFO until almost 1.5 years later. How can the Board allow Heska to operate without a CFO for that long, unless they had concerns?",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b013537d-8bae-4681-8972-a5a1b18b1c92",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.47,
        "x": 0.52,
        "y": 0.48
      },
      "kind": "quote",
      "text": "During the fourth fiscal quarter of 2020, the Company recorded an out-of-period adjustment that impacted the Consolidated Balance Sheets... The Company concluded that the errors were not material...",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1395ae1f-894d-4998-b65e-2ec0ff4fe9fb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"During the fourth fiscal quarter of 2020, the Company recorded an out-of-period adjustment that impacted the Consolidated Balance Sheets, Consolidated Statements of (Loss) Income and Consolidated Statements of Comprehensive (Loss) Income.\" — Heska 2020 10-K",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-70f3-714d-84b5-8a9610b246d6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.45,
        "x": 0.03,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: Colorado State Board of Accountancy Case No. 2005-0044562, Heska 2020 10-K",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "40e3dd1b-2dc0-4f3c-8c4d-052d8dfd330a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "CFO Grassman Has A Disciplinary Record And Has Reported Financial Errors With Heska",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9756be31-66b5-4e98-be39-ff1ad61d8a11",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "8acd8364-62c2-4273-ad02-72740b33df39",
      "evidence": "Highlights disciplinary record and financial reporting errors to question management integrity.",
      "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
}