{ "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": 38, "pageCount": 175, "prevPage": 37, "nextPage": 39, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 3, "notes": "The slide uses yellow highlighting to draw attention to specific financial flows in the quoted text.", "elementsJson": [ "paragraph", "callout_box", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-1a3bea94baf9/38", "deckHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9#slide-38", "components": [ { "bbox": null, "kind": "callout", "text": "Each has a similar structure: Ginkgo and its investors create and fund the entity, which then simply returns and round-trips back cash or “non-cash consideration” to Ginkgo under the guise of R&D “prepayments” or services, which it books as Foundry revenue or deferred revenue.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-70f2-7016-81d7-beacec598572", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "Ginkgo discloses roughly 7 platform ventures and structured partnerships in total that comprise most of its foundry revenue. Each has a similar structure: Ginkgo and its investors create and fund the entity, which then simply returns and round-trips back cash or “non-cash consideration” to Ginkgo under the guise of R&D “prepayments” or services, which it books as Foundry revenue or deferred revenue. The disclosure for Joyn Bio LLC, a “Platform Venture” formed in 2017 to focus the agriculture vertical, lays out the template: an equity investment commensurate with a Foundry Services Agreement with Ginkgo.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b1a9e509-c6fb-4a63-8a5c-8b1ce4c01efa", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The Company contributed $5.0 million in cash and certain intellectual property to Cooksonia in exchange for a 70% equity interest in Cooksonia (“Class A Units”). Cooksonia received $20.0 million in cash from another investor, who is a related party of the Company, for a 20% equity interest in Cooksonia (“Class B Units”). — Excerpt from Prospectus, Sept 17, 2021", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-70f2-7016-81d7-c07b90a379f5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.9 }, "kind": "source-note", "text": "Source: Soaring Eagle Acquisition Corp prospectus 8/13/2021, https://www.sec.gov/Archives/edgar/data/0001830214/000119312521246097/d177007d424b3.htm; yellow highlights are ours for emphasis.; Joyn Bio image from Ginkgo 8-K exhibit, https://www.sec.gov/Archives/edgar/data/1830214/000119312521156844/g66969ex99_2p10g1.jpg", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "67e28ae4-4d6a-4988-8e24-887594388943", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.9, "x": 0.05, "y": 0.4 }, "kind": "table", "text": "Joyn Bio, LLC\nFounded in 2017, Joyn Bio, LLC (“Joyn”) was formed to focus on engineered microbes for use in agricultural applications. Along with certain of our investors, we formed Cooksonia, LLC (“Cooksonia”) which holds a 50% equity interest in Joyn [...]\nGinkgo also entered into a Foundry Services Agreement (“Joyn FSA”) with Joyn under which we provide R&D services [...]\nThe Company contributed $5.0 million in cash and certain intellectual property to Cooksonia in exchange for a 70% equity interest in Cooksonia (“Class A Units”). Cooksonia received $20.0 million in cash from another investor, who is a related party of the Company, for a 20% equity interest in Cooksonia (“Class B Units”).\nBayer contributed $20.0 million in cash funding plus specified intellectual property. In addition, Bayer committed to contribute up to an additional $60.0 million to be paid subject to certain funding procedures.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a4ae0a29-55f7-4036-9c7b-e60cd571b444", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.05, "y": 0.35 }, "kind": "title", "text": "Excerpt from Prospectus, Sept 17, 2021", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a01a4172-02bd-4126-8cba-783c02e2929f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "67a05ac4-d896-40e2-80a7-99c5da13b4fd", "evidence": "The slide explicitly frames the company's revenue model as a circular 'round-trip' scheme.", "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 }