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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": "Uses highlighted text to draw attention to specific accounting practices.",
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      "text": "We further noticed a handful of alarming sentences buried in the prospectus – ones suggesting that Ginkgo’s reported revenue is a mix of cash and non-cash consideration, essentially admitting that Ginkgo is using medieval alchemy to transform equity investments in related-parties into “revenue.” For example, Ginkgo reported ~$12MM of deferred revenue as of 3/31/21 with related-party “customer” Kalo Ingredients – the prospectus states the deferred revenue is 100% non-cash.",
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      "text": "The common stock received under the Motif IP Agreement is considered non-cash consideration and has been recognized at fair value. The Company determined the fair value of the common stock was $65.1 million at inception of the agreement with the assistance of a third-party valuation specialist, which was initially recorded as non-current deferred revenue.",
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      "text": "The Company’s collaborative arrangements with its investees and related parties typically include upfront payments consisting of cash or non-cash consideration for future research and development services and non-cash consideration in the form of equity securities for licenses that will be transferred in the future. The Company records the upfront cash payments and fair value of the equity securities as deferred revenue.",
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      "text": "As of June 30, 2021, the Company had a deferred revenue balance of $11.9 million with Kalo, consisting of the non-cash consideration received.",
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      "text": "Certain agreements contain payment in the form of equity or other non-cash consideration. Any non-cash consideration is measured at the fair value of the non-cash consideration at contract inception.",
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      "text": "Deferred revenue represents consideration received by the Company in excess of revenue recognized and primarily results from transactions where the Company receives upfront payments and non-cash equity consideration.",
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      "kind": "source-note",
      "text": "Source: Soaring Eagle Acquisition Corp prospectus 8/13/2021, https://www.sec.gov/Archives/edgar/data/0001830214/000119312521246097/d177007d424b3.htm; Scorpion Capital analysis and estimates",
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      "text": "Excerpts from prospectus",
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