{
  "docId": "019dd923-622c-750b-8b99-38d956541145",
  "docSlug": "a8618aad4c6b",
  "documentTitle": "Stryker Corp. (SYK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-04-06 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 142,
  "pageCount": 195,
  "prevPage": 141,
  "nextPage": 143,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 2,
  "notes": "The slide uses a red flag icon to draw attention to the potential risk associated with the executive's past.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "headshot",
    "paragraph",
    "bullet_list",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-38d956541145/142",
  "deckHref": "/decks/019dd923-622c-750b-8b99-38d956541145",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-38d956541145.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-38d956541145#slide-142",
  "components": [
    {
      "bbox": {
        "h": 0.18,
        "w": 0.84,
        "x": 0.08,
        "y": 0.17
      },
      "kind": "callout",
      "text": "K2M Group’s Chief Accounting Officer was initially Gregory S. Cole. He also was CFO. George Z. Moratis was appointed Principal Accounting Officer Dec 15, 2015. Both of these K2M Group executives worked previously at InPhonic, Inc. (Nasdaq: INPC), which had an accounting scandal...",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "03549152-baba-44e9-aa0f-5ec67079ed32",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Both of these K2M Group executives worked previously at InPhonic, Inc. (Nasdaq: INPC), which had an accounting scandal and issued a non-reliance opinion on its financial statements.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-25b2-736e-8e55-ed7f984d5c0b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.12,
        "x": 0.08,
        "y": 0.52
      },
      "kind": "image",
      "text": "George Z. Moratis",
      "attrs": null,
      "subkind": "headshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ab2f293b-f50a-4b36-a7ba-3f8ac07811a5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.44,
        "x": 0.52,
        "y": 0.43
      },
      "kind": "list",
      "text": "June 2006: Washington DC Attorney General sues InPhonic... April 2007: Issues Non-Reliance Opinion... May 2007: CFO resigns, George Moratis designated... Nov 8, 2007: Bankruptcy filing...",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3d3eaa3e-2db6-4aee-82cf-844362de9d87",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.4,
        "x": 0.52,
        "y": 0.38
      },
      "kind": "list",
      "text": "InPhonic Accounting Scandal Timeline",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "eeccc1fd-c936-4c43-b65f-35b857c378c5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.26,
        "x": 0.22,
        "y": 0.52
      },
      "kind": "paragraph",
      "text": "George Z. Moratis is the Company's Global Accounting Officer... Mr. Moratis has more than 30 years of accounting, finance, and financial reporting experience...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bb9c0978-4f26-461b-a901-5fd92b318e93",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "The Company did not maintain adequate documentation to support the proper accounting for inventory movements related to phone shipments for refitting and refurbishment. Consequently, the Company overstated inventory or receivables by not maintaining adequate documentation of track phones provided to outside services providers. As a result of this material weakness, an adjustment was necessary to properly record costs of goods sold and amounts due from vendors — 10K/A states",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-25b2-736e-8e55-f38ce6402f54",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.96,
        "x": 0.02,
        "y": 0.85
      },
      "kind": "source-note",
      "text": "Source: K2M.com via Wayback Machine. 1) K2M Group S-1 Prospectus 2) 8-K appointment 3) SEC vs. Len Familant and Paul V. Greene and settlements 1 and 2 4) Original 2016 results vs. restated results",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f0dcbbac-10cb-4e52-bfd1-ab2c95501a13",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.68,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "When Stryker Bought K2M Group In 2018, How Carefully Did It Look Into Its Chief Accounting Officer?",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c7f4eff9-a417-44e2-a6b8-9c91784c66dd",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "172454e5-fbc0-4a43-bb8b-6fdbd9abd7c7",
      "evidence": "The slide explicitly links an executive's past employment at a company involved in an accounting scandal to current risk.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 195,
      "from": 61,
      "beatId": "85f871f2-b4a8-4a0d-ac09-177a661eed97",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Resolution",
      "beatSlug": "resolution",
      "evidence": "The document concludes with a clear call to action, urging investors to reconsider their position on Stryker's stock.",
      "position": 4,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}