{
  "docId": "019dd923-622c-750b-8b9a-4b91788fc785",
  "docSlug": "5fadb686cc03",
  "documentTitle": "Twist Bioscience (TWST)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-11-15 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.2941177,
  "pageNumber": 118,
  "pageCount": 236,
  "prevPage": 117,
  "nextPage": 119,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 2,
  "notes": "The slide uses red dashed ellipses to highlight the inverse correlation between the two metrics in both charts.",
  "elementsJson": [
    "paragraph",
    "callout_box",
    "line_chart"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/118",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-118",
  "components": [
    {
      "bbox": {
        "h": 0.06,
        "w": 0.45,
        "x": 0.05,
        "y": 0.43
      },
      "kind": "callout",
      "text": "In the last two years, COGS has steadily fallen as R&D has increased, both as % of sales",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b114cb88-d4a8-45db-8884-b68be8e083ad",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.45,
        "x": 0.52,
        "y": 0.43
      },
      "kind": "callout",
      "text": "Gross margin spike has been accompanied by escalating R&D expenses",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dd68cf6b-d802-42d9-9c2b-41567e65d7c6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.4,
        "w": 0.45,
        "x": 0.05,
        "y": 0.5
      },
      "kind": "chart",
      "text": "COGS vs. R&D As % Of Sales",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "461ac27e-c007-45f7-a5c1-47d53a2bd774",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.4,
        "w": 0.45,
        "x": 0.52,
        "y": 0.5
      },
      "kind": "chart",
      "text": "Gross Margin Vs. R&D As % Of Sales",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b5a69f7b-570a-4e0e-b467-3f32a472c69d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "gross margin",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0932-77cf-bfed-bc0bf5866306",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.9,
        "x": 0.05,
        "y": 0.08
      },
      "kind": "paragraph",
      "text": "Two simple charts help illustrate why we think that Twist is stuffing COGS into R&D to show improving gross margin. The first shows that COGS was significantly higher than R&D, as one would expect for a manufacturer. However, the gap has steadily narrowed and recently flipped to where R&D is higher than COGS – that is, the decline in COGS is accompanied by a rise in R&D increases. The second chart shows that the recent increase in gross margin closely tracks a simultaneous spike in R&D – that is, taking from hand to feed the other.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ca34f901-c3f1-4bcf-988a-66ed518091eb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.05,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: Capital IQ data;",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "64a1205f-2495-498a-bd39-e729c5e7e217",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "87fc09c1-a86f-4676-8494-faea6f45c384",
      "evidence": "The slide explicitly argues that the company is 'stuffing COGS into R&D' to manipulate financial reporting.",
      "confidence": 0.95
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}