{
  "docId": "019dd923-622c-750b-8b99-acb9ee1902a4",
  "docSlug": "7928eb40991c",
  "documentTitle": "Monster Beverage Corp. (MNST)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-04-08 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 66,
  "pageCount": 79,
  "prevPage": 65,
  "nextPage": 67,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 45,
  "notes": "Includes a red arrow pointing from the amortization period change to the impairment charges, highlighting the 'bust' nature of the deal.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-acb9ee1902a4/66",
  "deckHref": "/decks/019dd923-622c-750b-8b99-acb9ee1902a4",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-acb9ee1902a4.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-acb9ee1902a4#slide-66",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Monster does not say what the revenue contribution from these purchased customer relationships is which suggests that its organic revenue growth could potentially be challenged and overstated.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0f1f-75c8-8577-5b50f24a48c8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Amortization period: $42.4 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0f1f-75c8-8577-63255ea2b6d4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.23,
        "w": 0.96,
        "x": 0.02,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Spruce Point believes two signs of Monster's growing strains can be seen in its intangible asset accounts. For example, in 2024 Monster reported a $42.4 million intangible asset purchase through the cash flow statement. Upon evaluation, we see it was recorded in amortizing intangibles which are described as related to “customer relationships”. Monster does not say what the revenue contribution from these purchased customer relationships is which suggests that its organic revenue growth could potentially be challenged and overstated. Secondly, Monster has been slowly increasing the amortization period of expenses. In 2022, the period increased from 5 – 7 to 5 – 15 years, presumably because of the CANarchy deal. However, all signs point to this deal being a bust, which calls into question the long-term duration of customer relationships.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e4020b28-9930-4c9b-ab06-f2107889d74e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Amortizing intangibles primarily consist of customer relationships. — MNST SEC filings",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0f1f-75c8-8577-5ecb452b94f8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.3,
        "x": 0.02,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: MNST SEC filings and Spruce Point analysis",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "35898e22-f80a-453c-ad73-9244e2b01288",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.96,
        "x": 0.02,
        "y": 0.48
      },
      "kind": "table",
      "text": "Analysis of Intangible Assets table showing Gross Amortizing Intangibles, Accumulated Amortization, Net Amortizing Intangibles, YoY Gross Increase, Bang Acquisition, CANarchy Acquisition, Acquisition of Intangibles, Amortization Expense, Amortization period, Non-Amortizing Intangibles, and Impairment Charges from 2020-2024.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1fd76811-83cd-4bc7-a488-248db25a09c0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.02
      },
      "kind": "title",
      "text": "Now Potentially Resorting To Buying Customer Relationships...",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "98a8b7ef-a524-41d3-ae00-6c79993aaf86",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "8c745bba-32bc-4bde-b9f7-a954f1741850",
      "evidence": "The slide explicitly links accounting choices (amortization periods) to potential business failure (CANarchy bust) and overstated organic growth.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [
    {
      "to": 79,
      "from": 14,
      "name": "The Reveal",
      "slug": "05-the-reveal",
      "bestFor": "Product launches, strategic pivots, unexpected findings",
      "matchId": "469f687c-a10d-4864-98fa-9c9877675ea6",
      "evidence": "Repeated use of 'expose_contradiction' slides to highlight discrepancies in Monster Beverage's reporting and operations.",
      "position": 0,
      "objective": "Reveal the extent of Monster Beverage's problems and their implications on the stock price.",
      "structure": "Setup the Question -> Build Suspense -> The Big Reveal",
      "confidence": 0.7,
      "description": "Build mystery and anticipation, then deliver a surprising or powerful conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}