Thread by @CulperResearch

We're short Aterian $ATER, formerly known as Mohawk Group Holdings $MWK. Our full report is now available culperresearch.com

2) Aterian $ATER has ties to convicted criminals and is promoting what we believe is an overhyped "AI" narrative and a string of garbage acquisitions. ATER shares are up ~300% as investors salivate over the Company's recent M&A, yet we find the deals to be utter garbage.

3) In Feb 2021, $ATER acquired "Healing Solutions" ("HS") from Jason Hope, who ran alleged text messaging scam JAWA, which was sued by the Texas AG. $ATER calls HS a "recurring revenue" business, yet our analysis of import records suggests 62% of the business is hand sanitizers.

4) HS's final shipment of sanitizers was received August 2020: we think this business is never coming back. Hope himself stated "the terms we got from $ATER were far superior to other offers" suggesting even he knows he took $ATER for a ride. Hope's lock-up expires on August 2.

5) In Dec 2020, $ATER purchased "the Smash Assets" from felon Mikial Nijjar. 5 months later, $ATER is still unable to provide audited financials for the acquisition, leaving its S-3 shelf ineligible. Nijjar's lock-up expires in June.

6) In Aug 2020, $ATER acquired Truweo from Muhammad Sikandar, "7 Figure Kindle Tycoon". Truweo sells a $19.99 back brace whose Amazon rankings have fallen off a cliff since being acquired. $ATER calls these acquisitions "historical opportunities". We think they're garbage.

7) We think $ATER's "AIMEE" is more a stock promotion tool than a real AI player. Customers have been in pilot programs since 2018, yet revenues remain miniscule and decreased in 2020. One former customer estimated $ATER only had one-third of the capabilities it claimed.

8) 5 additional $ATER employees cast doubt on AIMEE, calling it "very simple" and asking "how much of this is AI…" We think $ATER product launches are aided instead by hidden Facebook groups and massive rebate programs, "gray area" tactics which can get sellers booted from AMZN.

9) We think $ATER's core business is nosediving. For ex. in $ATER's largest category, its hOmeLabs dehumidifiers went from a #41 ranking a year ago to #830 today. The Company's 2021 guidance doesn't even meet the estimated EBITDA from acquired businesses.

10/10) Over 25% of $ATER shares are now owned by 2 felons & 2 alleged fraudsters. We think they now face a prisoner's dilemma as lock-ups expire. Past the AI and flywheel fairytales, we see a reseller of cheap Chinese goods whose business is imploding. We're short.