{
  "docId": "019dd923-622c-750b-8b99-3322bc9ae76c",
  "docSlug": "72469199073c",
  "documentTitle": "C3.ai, Inc. (AI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-02-16 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 38,
  "pageCount": 88,
  "prevPage": 37,
  "nextPage": 39,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "Uses red flags and callout boxes to highlight specific problematic clauses in legal/financial documents.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "screenshot"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-3322bc9ae76c/38",
  "deckHref": "/decks/019dd923-622c-750b-8b99-3322bc9ae76c",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-3322bc9ae76c.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-3322bc9ae76c#slide-38",
  "components": [
    {
      "bbox": {
        "x": 0.68,
        "y": 0.77
      },
      "kind": "callout",
      "text": "Negative: “Specified Offerings” – a new and undefined term. We interpret this as a narrower scope of C3’s total offerings",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "05f5fc27-a5f0-4f0e-b4c2-a690e85008a1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "x": 0.95,
        "y": 0.72
      },
      "kind": "callout",
      "text": "Negative: Price Discounts on “Prospective Customers” and “Contingency Payments” To C3",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0cc5629f-e4bc-45e6-a774-75cd6ca7867f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "x": 0.95,
        "y": 0.53
      },
      "kind": "callout",
      "text": "Prices are omitted, but it is possible that C3 got increased prices for work-in-process....but with a big trade-off in the future",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0d179bb6-a570-40ff-acea-ae5cdc57cce4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point believes the 3rd Amendment to the BH agreement triggered a contract modification.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0f1c-754a-9de7-caa1b330c54d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "x": 0.98,
        "y": 0.38
      },
      "kind": "paragraph",
      "text": "Spruce Point believes the 3rd Amendment to the BH agreement triggered a contract modification. Notably, there is clear language around future price discounts to prospective customers and payments to C3 being “contingent.”",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d8f03df9-b0f4-4b2b-8d44-6048561c557a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "x": 0.98,
        "y": 0.92
      },
      "kind": "paragraph",
      "text": "Beginning in fiscal year 2023, Baker Hughes’ annual commitments will be reduced by any revenue that Baker Hughes generates from certain customers...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dfcf52d7-7a72-4f37-bf8f-656d785c4c2c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"Whenever an entity and its customer agree to change what the entity promises to deliver (i.e., the contract's scope) or the amount of consideration the customer will pay (i.e., the contractual price), there is a contract modification.\" — Deloitte Accounting Spotlight",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0f1c-754a-9de7-cc59560c8535",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "x": 0.98,
        "y": 0.99
      },
      "kind": "source-note",
      "text": "Source: 3rd Amendment to JV Agreement; Q2 FY 2022 10-Q; Deloitte Accounting Spotlight",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6125203a-bf0b-4a32-b93a-96b0dc87738e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "x": 0.98,
        "y": 0.12
      },
      "kind": "title",
      "text": "3rd Amendment Has Critical Price Changes, Which May Have Allowed C3 To Pull Forward Revenue",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "934fa55b-a0a9-434d-95b3-8480030eef6e",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "9f8457ad-f4c6-4e22-8f3e-5bf1eb77b346",
      "evidence": "The slide explicitly highlights contract language to argue for revenue manipulation.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 50,
      "from": 11,
      "beatId": "52faac95-a3b7-441a-8dc7-c9afddcebc77",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Challenges and Critique",
      "beatSlug": null,
      "evidence": "The document presents a detailed critique of C3.ai's financials, business dealings, and corporate governance.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}