{
  "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": 45,
  "pageCount": 88,
  "prevPage": 44,
  "nextPage": 46,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 8,
  "notes": "The slide contrasts the 1Q'21 disclosure (fixed commitments) with the 2Q'21 disclosure (modified commitments) and the new 10-Q risk factor.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "paragraph",
    "comparison_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-3322bc9ae76c/45",
  "deckHref": "/decks/019dd923-622c-750b-8b99-3322bc9ae76c",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-3322bc9ae76c.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-3322bc9ae76c#slide-45",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The latest amendment opens up the door for more aggressive revenue recognition in regard to Baker Hughes reselling arrangements.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0f1c-754a-9de8-71515f41ea4f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.96,
        "x": 0.02,
        "y": 0.37
      },
      "kind": "paragraph",
      "text": "Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could adversely affect our financial results or financial condition. GAAP and related accounting pronouncements... [text continues regarding Baker Hughes amendment details]",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2213e7ee-275e-49c4-a2ad-d0787021f3ac",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "The newest risk factor in regard to the 3rd Amendment to the Baker Hughes JV introduces “variable consideration” disclosure. We find this of particular interest as the term “minimum annual non-cancelable revenues commitments” have now been replaced with “commitments”. The latest amendment opens up the door for more aggressive revenue recognition in regard to Baker Hughes reselling arrangements. Given, the obvious clues that Baker Hughes commitment to the JV continues to wain, the 3rd amendment may give some leeway to Baker Hughes to avoid any potential shortfall obligations.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "46336d8d-d2b2-437e-b898-e7294654ae7c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.2,
        "x": 0.02,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Sources: 1Q'22 10-Q, 2Q'22 10-Q",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6e8a128a-0ea8-4729-9404-7aade44dfe0f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.96,
        "x": 0.02,
        "y": 0.73
      },
      "kind": "table",
      "text": "1Q'21 Disclosure vs 2Q'21 Disclosure comparison of contractual language regarding Baker Hughes commitments.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "83771161-798c-4eb4-a5f7-329dda7b33b9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.67,
        "x": 0.31,
        "y": 0.02
      },
      "kind": "title",
      "text": "New Risk Section In The Most Recent 10-Q Reveals That Revenue Recognition Regarding The Baker Hughes JV Is Now Subject To Estimates",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9100e96d-7ee5-4486-8307-664df351c2e3",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "f298fcd0-6c53-430b-bccf-33a41d90bc86",
      "evidence": "Contrasting historical fixed revenue commitments with new subjective 'variable consideration' estimates to imply aggressive accounting.",
      "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
}