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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 Q&A transcript format to highlight a contradiction between reported revenue and actual cash flow.",
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      "text": "A senior Genomatica employee told us clearly and unequivocally that they have never paid Ginkgo cash for foundry R&D services, and are simply using R&D credits provided after large investments by Viking and Ginkgo into Genomatica.",
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      "text": "revenue: $9.4MM",
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      "text": "Our worst fears were confirmed when we spoke with Genomatica, one of Ginkgo’s key related-party “customers” – which provided a smoking gun leading us to conclude that most of Ginkgo’s reported revenue is non-cash hocus-pocus where equity investments are round-tripped back via “R&D credits.”",
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      "text": "Senior employee of Ginkgo states their foundry R&D “spend” with Ginkgo is not cash consideration",
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      "text": "Ginkgo reported $9.4MM of revenue from Genomatica in 2020 and $3.3MM in Q1 2021 – 16% percent of its total Foundry revenue. Genomatica is also one of Ginkgo’s largest sources of deferred revenue - $38MM in 2019 and $30MM in 2020, 26% and 23% of total deferred revenue in each of those years, respectively.",
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      "text": "“But I think what's also clear, and you'd understand this, we're not spending cash. So, appropriately, they put GAAP revenue, but there's no cash revenue that we're spending over at Ginkgo right now because we have credits that go back from 2018 when they got $40 million worth of equity in Genomatica as part of our Series B and in exchange, they gave us a bunch of R&D credits.” — Senior Genomatica employee",
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      "text": "Source: Scorpion Capital consultation calls with experts",
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