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  "documentTitle": "Tempus AI, Inc. (TEM)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-05-28 00:00:00",
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  "notes": "Uses a callout box to explain the accounting logic (Level 3 assets) and points to the financial tables.",
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      "kind": "callout",
      "text": "Given that the Pathos warrant is for a private company that is an illiquid security and depends on significant model input assumptions, we believe it would be classified as a Level 3 asset.",
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      "text": "Tempus, which is a related party entity, heavily promotes Pathos AI, which at its Series C round in October 2024 claimed it was valued at $600 million. The subsequent D raise in May 2025 touted a $1.6 billion post-money valuation and that the money would fund trials of solid tumor drugs sourced from Novo Nordisk. Tempus also claims to own 15% of Pathos (pre-Series D funding). Beneath all the hype, we find: 1) Tempus marks zero value to the Pathos warrant on its balance sheet, and 2) Novo Nordisk just sold its entire 4 million shares of Tempus.",
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      "kind": "paragraph",
      "text": "Tempus Disclosure of Pathos Warrant",
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      "kind": "paragraph",
      "text": "“On August 19, 2021, the Company entered into a related party arrangement with Pathos AI, Inc. (“Pathos”), which was subsequently amended on February 12, 2024, for the purpose of furthering the commercialization efforts of drug development. The Company received a warrant to purchase 23,456,790 shares, or approximately 15% of the current outstanding equity in Pathos, for $0.0125 per share.”",
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      "kind": "source-note",
      "text": "Source: TEM Q1’25 10-Q, Pathos Series C Raise, “Pathos AI secures $365M Series D to Fund Novo Nordisk Solid Tumor Drug”, Fierce Biotech, May 15, 2025. Note: Tempus discloses that marketable securities are publicly traded equities. Therefore, we do not believe the Pathos warrant is included in the $67m account.",
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      "kind": "table",
      "text": "Tempus Asset Accounts Where The Pathos Warrant Should Be Disclosed",
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      "kind": "title",
      "text": "Tempus Hypes Pathos AI, But Its Internal Valuation Is Marked As Worthless....",
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