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  "documentTitle": "Ginkgo Bioworks (DNA)",
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  "authorName": "Scorpion Capital",
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  "presentationDate": "2021-10-06 00:00:00",
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  "notes": "The slide uses a 'modus operandi' argument to suggest a pattern of circular financing between Ginkgo and its related parties.",
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      "kind": "callout",
      "text": "Allonnia release announcing Ginkgo investment, Oct 2020 (includes follow-on Series A >$33MM)",
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      "kind": "callout",
      "text": "Allonnia financials buried at end of SPAC prospectus show $24.5MM of R&D expenses in 2019, simultaneous with Ginkgo booking $24.5MM of deferred revenue from the entity.",
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      "kind": "list",
      "text": "Allonnia Launches from Ginkgo Bioworks' Ferment Consortium with $40M Series A to Address Critical Problems in Waste Remediation with Synthetic Biology, Appoints Nicole Richards as CEO",
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      "kind": "metric",
      "text": "deferred revenue: $24.5MM",
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      "text": "Pursuant to the Series A-1 Unit Purchase Agreement, as amended, the Company issued 2,970,000 and 1,664,911 units of Series A-1 at a purchase price of $11.11111 per unit in 2019 and 2020, respectively, for the total gross proceeds of $51,499,011.",
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      "text": "The last two pages illustrated Joyn Bio and Synlogic as examples where Ginkgo recorded large prepayments from related parties in coordination with financings by it and/or its own investors. We looked at each disclosed related party with a meaningful deferred revenue balance, and the modus operandi is identical. Allonnia is another related party, where the initial Series A Preferred tranche appears to be for $33MM in Dec 2019. By Dec 31, 2019, Ginkgo already booked $24.5MM in deferred revenue from the entity. As the only private related party with financials disclosed in Ginkgo’s prospectus, one can see that Allonnia simultaneously recorded $24.5MM in R&D expenses.",
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      "kind": "source-note",
      "text": "Source: Soaring Eagle Acquisition Corp prospectus 8/13/2021, [URL]; Scorpion Capital analysis and estimates; [URL]",
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      "text": "Table showing Allonnia operating expenses and Ginkgo revenue recognition",
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      "text": "Initial Series A tranche appears to be $33MM in Dec 2019",
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      "text": "Allonnia financials buried at end of SPAC prospectus show $24.5MM of R&D expenses in 2019, simultaneous with Ginkgo booking $24.5MM of deferred revenue from the entity",
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