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  "documentTitle": "PROCEPT BioRobotics Corporation (PRCT)",
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  "authorName": "Spruce Point Capital Management",
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  "notes": "The slide uses a Bloomberg terminal screenshot to highlight the trend in DSOs from 2007 to 2011.",
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      "text": "From 2008 to 2011, medical device company Orthofix Medical improperly booked revenue to inflate its financial results. One practice involved the company recording revenue despite extending customers significant extensions of time to make payments, and again, rising DSOs provided investors a warning sign.",
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      "text": "Four then-executives at Orthofix also agreed to pay penalties to settle cases related to the accounting failures, which according to the SEC's order involved Orthofix improperly recording certain revenue as soon as a product was shipped despite contingencies requiring certain events to occur in order to receive payment in the transaction. In other instances, Orthofix immediately recorded revenue when it had provided customers with significant extensions of time to make payments. The accounting failures caused the company to materially misstate certain financial statements from at least 2011 to the first quarter of 2013.",
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      "text": "Red underline for Spruce Point emphasis. Source: Bloomberg, SEC press release dated 1/18/17,",
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      "text": "Bloomberg terminal table showing financial ratios for Orthofix Medical from 2007 to 2011, highlighting Days Sales Outstanding increasing from 79.49 to 103.65.",
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      "text": "Rising DSOs Have Been A Harbinger Of Accounting Issues In MedTech: The Case Of Orthofix Medical",
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