{
  "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",
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  "pageNumber": 63,
  "pageCount": 88,
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  "slideType": "expose_contradiction",
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  "notes": "Uses red flag imagery to emphasize the activist's skepticism regarding corporate governance.",
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  "components": [
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      "kind": "callout",
      "text": "There have been three different CFOs at C3 since the beginning of its IPO process in September 2020.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
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      "text": "There have been three different CFOs at C3 since the beginning of its IPO process in September 2020. We find it peculiar that Marc Levine would leave just after the commencement of C3 IPO process and being the original CFO signatory on its DRS on September 18, 2020. In October of 2020, David Barter was hired as the replacement CFO for Marc Levine. In the continuous revolving door of CFO, David Barter resigned after 14 months on November 27, 2021. We believe both CFO departures raise red flags. Why would Marc Levine either resign or why would C3.ai terminate its CFO just as the IPO process was commencing? Why would David Barter forfeit over 900,000 unvested options struck at $17.10 per share that had an intrinsic value of ~$20m?(1) Even more perplexing, why does C3's Paul Phillips, current VP of Investor Relations, fail to put on his biography that he served as CFO from Jan 2017 – June 2019?",
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      "kind": "source-note",
      "text": "Sources: Telenav 8-K (October 6, 2020), David Barter Employment Contract, Original DRS where Marc Levine was CFO, David Barter LinkedIn Bio, Marc Levine LinkedIn Bio, Paul Phillips LinkedIn Bio, Wayback Machine Showing Paul Phillips as CFO, Paul Phillips LinkedIn Bio\n1) Form 4 shows Barter had 913,891 options at $17.10. On his resignation day of Nov 27th, C3's share price was around $38.00",
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      "text": "CFO History Since 2017",
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      "kind": "title",
      "text": "CFO Turnover Raises Red Flags",
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      "evidence": "The slide explicitly frames CFO turnover and non-disclosure as 'red flags' to suggest potential corporate malfeasance.",
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      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Analysis and Evidence",
      "beatSlug": null,
      "evidence": "Spruce Point provides analysis and evidence to support its claims.",
      "position": 3,
      "confidence": 0.8,
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  "loops": [
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      "name": "Hypothesis Test",
      "slug": "42-hypothesis-test",
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      "evidence": "Spruce Point presents analysis and evidence to support its claims.",
      "position": 2,
      "objective": "To test the hypothesis that C3.ai's financials and business practices are flawed",
      "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)",
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      "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence"
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