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  "documentTitle": "PROCEPT BioRobotics Corporation (PRCT)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-01-16 00:00:00",
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  "notes": "The slide uses a combination of qualitative narrative, a direct quote, and a quantitative table to build a case for non-disclosure.",
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      "kind": "callout",
      "text": "Deleted Revenue Recognition Disclosure Related to Rental Activity (Last Appeared in 2022 10-K)",
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      "text": "Procept's Disclosed Rental and Evaluation Unit Commentary and Disclosures Suggest Modest Activity",
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      "text": "Given how often this issue arose in our research, we believe Procept may not be fully disclosing its rental activities, perhaps because such arrangements may be indicative of difficulties closing system sales.",
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      "text": "Implied US Rental Revenue",
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      "text": "On its Q1 2022 earnings call, Procept disclosed that it had placed ten evaluation units with customers as of YE 2021, and the following quarter, CFO Waters downplayed the Company's system rental activity.",
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      "kind": "quote",
      "text": "And we may periodically put a rental out with a customer, but right now, our model is pretty much we're going to sell and not offer a demo program.",
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      "text": "Systems rented for a fixed monthly fee during an evaluation period... are recognized as revenue straight-line during the lease term, and are not material.",
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      "kind": "quote",
      "text": "\"And we may periodically put a rental out with a customer, but right now, our model is pretty much we're going to sell and not offer a demo program.\" — CFO Waters, Q2 2022 Earnings Call",
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      "text": "Source: Procept Q1 2022 earnings call transcript, Procept Q2 2022 earnings call transcript, Procept SEC filings",
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      "text": "We Believe Procept May Not Be Fully Disclosing System Rental and Loan Activity",
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