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  "documentTitle": "Ginkgo Bioworks (DNA)",
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      "text": "the employee admitted that “it’s like Intrexon” – the mother of synthetic biology scams, which used the same model of round-tripping from related-party to create revenue out of thin air.",
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      "text": "Q: 'And since 2016, have you given them any cash for foundry R&D services?'\nA: 'No, because we never needed to, so the relationship was set up in a different sort of way like we were collaborating.'\nQ: 'What did they book as revenue?'\nA: 'What they book as revenue from Genomatica is, yeah, so they book what I understand to be, they book GAAP revenue from—and this is what's a little bit like Intrexon. This is the part where I'll agree with you, it's like Intrexon, but I'll be clear where I think there's a difference.' – Senior Genomatica employee",
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      "text": "At three others points in our call, the Genomatica employee re-iterated that they have not paid Ginkgo cash for foundry R&D services, stating that they don't need to pay cash until they \"run out of credits\" and that they have not paid cash since 2016. When we asked what Ginkgo is booking as revenue from Genomatica then, the employee admitted that \"it's like Intrexon\" – the mother of synthetic biology scams, which used the same model of round-tripping from related-party to create revenue out of thin air. We corroborated the finding with a second senior employee of Genomatica, and a third who is an ex-employee.",
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      "text": "\"There will come a time that once we run out of using those credits, to continue using the foundry services, we would have to pay cash for that, but we're not at that point yet.\" – Senior Genomatica employee",
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      "kind": "quote",
      "text": "\"The question is, will that foundry deliver results for those companies. We have the luxury at this point, through an arrangement that we felt was a great deal for us in 2018 that gave us the luxury to say, if the Ginkgo bet pays off, meaning if they pour hundreds of millions of dollars into building this foundry and if that high-throughput capability and all that stuff ends up working out to where it is cheaper and faster for us to get that R&D done at Ginkgo as a CRO, then great, we'll go do it. And, by the way, we don't have to spend cash to go do that, to figure that out until probably, certainly not this year and probably not next year; we don't have to spend cash.\" – Senior Genomatica employee",
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      "text": "\"So, then it all made sense for us to do this deal. Financially, what we got was tens of millions of R&D services sort of prepaid. What did they get in exchange? They got equity, and we got our partnership opened up so that we could go pursue whatever we wanted to... we're not in a position where we need to spend cash until we run out of credits.\" – Senior Genomatica employee",
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      "text": "“There will come a time that once we run out of using those credits, to continue using the foundry services, we would have to pay cash for that, but we're not at that point yet.” — Senior Genomatica employee",
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      "text": "Source: Scorpion Capital consultation calls with experts",
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