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  "documentTitle": "Super Micro Computer, Inc. (SMCI)",
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  "authorName": "Spruce Point Capital Management",
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  "notes": "The slide uses a table to perform a forensic accounting reconciliation of debt balances and interest rates.",
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      "text": "$2.3m vs. $4.0m reported",
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      "text": "Based on SMCI's disclosures, we estimate its Q1 interest expense should have been $2.3 million vs. the $4.0 million cash interest expenses reported at the bottom of its cash flow statement.",
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      "text": "Interest Expense: $2.3m",
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      "text": "SMCI provides balances and interest rates for its current short-term credit facilities and term loans outstanding. Spruce Point warns that SMCI may be under greater financial stress than it reports. Based on SMCI's disclosures, we estimate its Q1 interest expense should have been $2.3 million vs. the $4.0 million cash interest expenses reported at the bottom of its cash flow statement. Our interpretation is that either SMCI carried a significantly higher intra-quarter debt balance, or there are other \"hidden\" liabilities not accounted for on the balance sheet.",
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      "text": "(1) =Average Debt (D) x Average Interest Rate Between Periods (C) x 25%. Source: SMCI SEC filings and Spruce Point Capital Management. Note: Even if our analysis assume the full debt balance at year end, and higher interest rate, we still fall short of SMCI's reported interest expense by $0.5m",
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