{
  "docId": "019dd923-622c-750b-8b9a-8652eaebc3fc",
  "docSlug": "774f2e7f1736",
  "documentTitle": "Innodata, Inc. (INOD)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-02-15 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 1,
  "pageCount": 21,
  "prevPage": null,
  "nextPage": 2,
  "slideType": "executive_summary",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 8,
  "notes": "The slide serves as the executive summary for a short-seller report by Wolfpack Research.",
  "elementsJson": [
    "paragraph",
    "bullet_list",
    "logo_grid",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": "https://imgproxy.kitesheet.com/dkJ5yPdKstO66f04GtmVWhgW_h0eo9PFMnBhV2i_e3E/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy83NzRmMmU3ZjE3MzYvcDAwMS5wbmc",
  "slideHref": "/slides/019dd923-622c-750b-8b9a-8652eaebc3fc/1",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-8652eaebc3fc",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-8652eaebc3fc.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-8652eaebc3fc#slide-1",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "We are short Innodata, Inc. (NASDAQ: INOD) because despite management’s pumping that it is “delivering the promise of AI to many of the world’s most prestigious companies,” it is a deteriorating, manual data-entry business driven by offshore labor, not innovation.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-70f9-71ae-a66a-e6a6facc1857",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.57
      },
      "kind": "list",
      "text": "A former high-level employee we spoke with called INOD’s AI “smoke and mirrors.” When we asked another former employee about INOD’s claims concerning its AI, they said management was “putting lipstick on a pig.”",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "122fd011-a277-4bbb-9abd-b4bb18ab87c9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.78,
        "x": 0.11,
        "y": 0.72
      },
      "kind": "list",
      "text": "INOD’s management has pumped its Silicon Valley contracts and AI in general as a “transformative” opportunity driving up its stock more than 300% since the beginning of 2023. But the real opportunity appears to have been the ability to dump shares, which management did in concert with many of its press releases touting AI, sometimes on the same day. In 2023, insiders dumped over $13 million in stock, which is nearly three times as much as insiders sold in the 10 years prior to 2023.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2ff19270-1f15-4564-8ed7-64596aed0c1e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.84
      },
      "kind": "list",
      "text": "INOD purports to be supporting generative AI development with four of the five biggest tech companies in the world and acts like these companies are coming to INOD for its expertise in training AI models. We think this is grossly misleading; INOD has a large offshore labor force that specializes in basic data annotation, what a former high-level employee described as “banging away on keyboards.”",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7dd93b9d-9b13-4a19-8d52-a273454e4831",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.64
      },
      "kind": "list",
      "text": "INOD does not look or operate like a technology company, much less an AI company, it does not even have a Chief Technology Officer. INOD claims its AI platform, Goldengate, powers most of what it’s doing, but our analysis indicates Goldengate is rudimentary software developed by just a handful of employees.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bd634cab-f75a-45f2-9914-d9dd7d3cdccf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.19
      },
      "kind": "paragraph",
      "text": "We are short Innodata, Inc. (NASDAQ: INOD) because despite management’s pumping that it is “delivering the promise of AI to many of the world’s most prestigious companies,” it is a deteriorating, manual data-entry business driven by offshore labor, not innovation.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "63c26333-6559-4ba9-8525-7eabcb3d6218",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "A former high-level employee we spoke with called INOD’s AI “smoke and mirrors.” When we asked another former employee about INOD’s claims concerning its AI, they said management was “putting lipstick on a pig.” — Former employees",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-70f9-71ae-a66a-e99d33a1a2a5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.44,
        "x": 0.28,
        "y": 0.16
      },
      "kind": "title",
      "text": "Exposing INOD’s “Smoke and Mirrors” AI",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0d4ddd6f-b9dc-4875-b868-6f08ec1536aa",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "executive_summary",
      "slug": null,
      "matchId": "4dc92c09-1533-410c-a4d5-7a5cd4372a73",
      "evidence": "The slide provides a high-level overview of the investment thesis and key findings.",
      "confidence": 1
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": "https://imgproxy.kitesheet.com/7iVOy77vckwBE11Yxi7fmcGwOCj-nPo1zTXpfiMItYQ/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy83NzRmMmU3ZjE3MzYvcDAwMS5qcGc",
  "thumbSrc": "https://imgproxy.kitesheet.com/Ox0z8i4_p-fs81Oh6c1TqXL20gjoCWDfszswjFS4a0k/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy83NzRmMmU3ZjE3MzYvcDAwMS5wbmc",
  "thumbSrcAlt": "https://imgproxy.kitesheet.com/0IOZBZEZJMZnfQ5n1YUkpWseQyGif75ijM18YpFQZOQ/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy83NzRmMmU3ZjE3MzYvcDAwMS5qcGc"
}