{ "docId": "019dd923-622c-750b-8b9a-1a3bea94baf9", "docSlug": "c358888161f0", "documentTitle": "Ginkgo Bioworks (DNA)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-10-06 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 124, "pageCount": 175, "prevPage": 123, "nextPage": 125, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A transcript format to highlight potential governance issues and lack of arm's-length negotiation.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-1a3bea94baf9/124", "deckHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9#slide-124", "components": [ { "bbox": null, "kind": "callout", "text": "The pricing was multi-million dollars per project per year. A project lasts two or three years, so it's a significant amount...Their pricing method was very opaque, ..There was very little breakdown about what was happening behind the door for each project...But at the beginning, it was really one pot, and you didn't know exactly what you were paying for.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b62-723f-b68f-d3cbce6003a1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.28 }, "kind": "paragraph", "text": "Motif executive chuckled when saying they’re “independent” of Ginkgo; suggested Motif spend was controlled by a Motif “employee” who was acting in Ginkgo’s interest", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7c159562-b19d-4429-8489-a23556a58428", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.8 }, "kind": "paragraph", "text": "Motif executive indicated Ginkgo pricing was “opaque” with “very little breakdown”\n“The pricing is multi-million dollars per project per year. A project lasts two or three years, so it’s a significant amount...Their pricing method was very opaque, ..There was very little breakdown about what was happening behind the door for each project...But at the beginning, it was really one pot, and you didn’t know exactly what you were paying for.” – Current Motif executive", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9372076a-d49d-487b-b47b-8095de8a0350", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.9, "x": 0.05, "y": 0.34 }, "kind": "paragraph", "text": "Q: “You sort of chuckled earlier when you said, yeah, we’re independent; I think you said they try to exert control. I’m curious if you can elaborate on that - there’s always that push and pull.”\nA: “Exactly. I would say that the person that was the director of R&D, pretty much overseeing the project, was actually a Ginkgo employee at first, so he had really little say because he was an insider from Ginkgo, so he couldn’t really tell them what you’re doing is not the perfect thing. I work for Motif, and I need to have the best result for Motif. And so, you can promise me everything or anything, but at the end of the day, you have to deliver commercial strains for us.”\nQ: “So, you’re saying initially, the head of R&D at Motif was a Ginkgo employee?”\nA: “Well, he was a Motif employee, but he was a former Ginkgo employee, yes, that’s right.”\nQ: “For all intents and purposes, was he acting on behalf of Motif, or was he there to make sure that Ginkgo got the right level of R&D spend from Motif?”\nA: “I would say that no matter what he was trying to do, if he was trying to be on the side of Motif, being an ex-Ginkgo employee and having worked on the Motif project, maybe it’s a little difficult to challenge them, I would say.”\nQ: “Challenge them on what? The amount they wanted to charge? Or were they forcing you guys to use them?”\nA: “[Chuckles] Well, yes, all of the above. So, yes, the amount they charged us, there was no negotiation. I mean, the price was pretty much fixed back then by Ginkgo, I would say, very early on, and there was very little leeway and that’s changed because we are now using other syn-bio companies as well because we’re not exclusive. So, we can now negotiate a little more on the pricing. They are a stakeholder. They are an equity holder of our company; they founded us. So, their investment is really equity-based for us.” – Current Motif executive", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c6128327-1a14-4bcb-bfd8-30cd0f7304ef", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Exactly. I would say that the person that was the director of R&D, pretty much overseeing the project, was actually a Ginkgo employee at first, so he had really little say because he was an insider from Ginkgo, so he couldn't really tell them what you're doing is not the perfect thing.” — Current Motif executive", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2b62-723f-b68f-d53a2d0bcf28", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.05, "y": 0.96 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2a0f4bea-4252-48f3-913a-932430de865e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "A second employee at related-party Motif, an executive, indicated the Ginkgo’s pricing was “opaque” with “very little breakdown,” and chuckled when saying they’re “independent” of Ginkgo; suggested Motif spend with Ginkgo was previously controlled by a Motif “employee” who was acting in Ginkgo’s interest.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9d94ea12-b4d8-496c-9aad-b846a9c47328", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "5277e35a-5e6c-449f-8b69-31fca99ffbe9", "evidence": "The slide presents evidence of potential self-dealing and lack of arm's-length pricing between related parties.", "confidence": 0.9 } ], "arcBeats": [ { "to": 175, "from": 9, "beatId": "ffe290af-3a4f-4e06-8d60-dfbfc07d2e08", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The deck presents evidence contradicting Ginkgo's claims and highlighting potential wrongdoings.", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }