{ "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": 53, "pageCount": 175, "prevPage": 52, "nextPage": 54, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 5, "notes": "The slide uses a Q&A transcript format to highlight a discrepancy between reported financial data and executive testimony.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-1a3bea94baf9/53", "deckHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9#slide-53", "components": [ { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.35 }, "kind": "callout", "text": "Executive indicated the paltry amounts of related-party revenue Ginkgo discloses from Synlogic does not square with the level of spending Synlogic is actually doing under the agreement", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f17fbbae-f7fc-46d7-befb-e0f8cc8c7a9d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "paragraph", "text": "Q: “I'm actually looking at their financials, and it looks like they have only booked as far as foundry revenue from Synlogic because they disclosed revenue from related parties and classify you guys as a related party. $72,000 in 2019, $73,000 in 2020, $6000 in Q1 2021. Is that really the volume of work you're sending their way? $17,000 a year, $70,000 a year?”\nA: “No, that doesn't seem—I'm not looking at what you're looking at.”\nQ: “That is what is in their financials. They break it out. There's a line for Synlogic.”\nA: “Yeah, I haven't seen that, but that doesn't sound accurate...I'm probably not the right person to comment on the accounting related to the relationship.”\nQ: “Does that square with the amount that you think Synlogic is spending?”\nA: “I mean, we have $30 million to spend over five years. So, it would be difficult to spend that much at those rates. I think that the agreement specified a five-year period if I'm not mistaken.”\nQ: “Let me put it this way, are you aware of work that's going on there that is more than $100,000 a year because they're saying it's less than $100,000 worth of work a year?”\nA: “Yes, we're spending more than that. I don't know how the money was captured in the original deal. I don't know any of that stuff.”\nQ: “Is there some other entity or something that is contracted with them, like do you have some other CRO that's actually working on behalf of Synlogic?”\nA: “No, it's a direct relationship, as far as I know.” – Current Synlogic executive", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0a19e056-5eb7-40ee-9f5d-58c162282652", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "We were unable to conduct a similar analysis of Synlogic’s R&D spend with Ginkgo for periods other than 2020, given that it failed to disclose related party R&D spend under the collaboration agreement. However, we spoke with an executive of Synlogic who expressed surprise and incredulity when we asked about the negligible amounts that Ginkgo’s related party disclosures attributed to Synlogic in 2019, 2020, and Q1 2021. The executive indicated it’s not consistent with the R&D projects they have had to send their way by virtue of the $30MM foundry credits Ginkgo gave them.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1695ee3c-4766-4ecb-abcf-990c18f5b38f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“that doesn't sound accurate...I'm probably not the right person to comment on the accounting related to the relationship.” — Current Synlogic executive; “Yes, we're spending more than that.” — Current Synlogic executive", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2b62-723f-b688-ddc8a93afd7f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9a6bf887-fe31-4b0b-b5b0-f7d2f36d4ff1", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "619a5301-c159-49fd-b0c5-7a170ac9d5c7", "evidence": "The slide uses an executive quote to contradict financial disclosures.", "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 }