{
  "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": 50,
  "pageCount": 128,
  "prevPage": 49,
  "nextPage": 51,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "Uses a red flag icon to signal a warning/contradiction.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-1e32ee1ceb49/50",
  "deckHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49#slide-50",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "In short, we simply don't believe it. Moreover, the Company hasn't even made clear how it is going to market with Element AIM. Specifically, are they even charging for the machine or simply placing it for free to capture the consumables stream?",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3c-7011-a9a8-626a09480087",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.32,
        "w": 0.88,
        "x": 0.11,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "Heska has repeatedly stated that customer demand for the Element AIM is strong, but we find that hard to square with how these systems are sold, or, in the case of Heska, \"placed.\"",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c22f5d62-d24d-4962-a213-51b85973ebdb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"Yeah, we just can't go fast enough. So, we continue to build backlog, every quarter goes by we're confident that demand is more than there to get to where we want to be.\" — CEO Wilson, Q4 2020 Earnings Call; \"I think we're solidly in the second quarter. And we also have really good pre-subscription demand for that product.\" — CEO Wilson, Q1 2021 Earnings Call; \"In fact, in terms of our product launch, we've got pre-orders, we've got pre subscriptions, we go to market on six years subscriptions, but we've got pre-subscriptions for our Element AIM product that fill out our demand for 2021, and we're now well into filling out 2022.\" — CEO Wilson, Jefferies Conference June 2021; \"So preorder trends, I think it's fair to say we have more preorders than we can manufacture at scale and deliver in the fourth quarter.\" — CEO Wilson, Q2 2021 Earnings Call",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f3c-7011-a9a8-65fcdd927cc7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Bloomberg Transcripts",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8983d729-4dcc-48a7-8d78-a5cfae932ca6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.97,
        "x": 0.02,
        "y": 0.49
      },
      "kind": "table",
      "text": "CEO Wilson Comments on Element AIM Demand",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3dfd895c-d865-456c-8753-1f973034df9f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "We Don't Believe Heska's Repeated Comments About Element AIM Demand Make Sense",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8fbb8074-b855-4103-8f47-359949e08a93",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "c85d5157-b0e9-4e92-82a8-be34a44e77b0",
      "evidence": "Contrasts management quotes with analyst skepticism",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 50,
      "from": 11,
      "beatId": "412174ed-5484-439a-aff3-7a3e556cebff",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "The deck presents an analysis of Heska Corp.'s financial performance, competitive position, and business model.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 70,
      "from": 50,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "5757e4f8-7cdf-47a2-9b16-5ff0d9fc9db3",
      "evidence": "The deck presents a thorough analysis of Heska Corp.'s financials and business model, highlighting several red flags.",
      "position": 1,
      "objective": "The cost of inaction for investors is significant, as Heska Corp.'s stock price may decline.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}