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Investigative Investment Research
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26 Feb
1) We are short SOS Ltd. $SOS. Our full report now available at culperresearch.com
2) $SOS claims to have ordered "A10 Pro 780M" and "T2T 37T" machines. $SOS offered a picture of these supposed machines, yet they appear to us to be Avalon A1066 miners, not A10 Pro or T2T 37T miners, thus calling into question whether the miners pictured really belong to $SOS.
3) $SOS claims to have purchased these machines from "HY International Group New York Inc." yet we find HY shares an address with $SOS, its site is located on the same servers as $SOS's "acquisition target", and we were unable to verify that HY's CEO "Claire Low" actually exists.
Read 7 tweets
14 Jan
1) We are short CleanSpark $CLSK. Our full report is now available at culperresearch.com
2) CleanSpark $CLSK claims to be a clean energy software company which is "changing the face of energy markets globally." We think CleanSpark has habitually lied about its supposed customers and contracts, many of which we've found simply do not exist.
3) In August, $CLSK claimed "project deployments to be executed as part their exclusive [ILAL] agreement" to install microgrids for 252 homes in Valle Divino, Mexico. We visited Valle Divino and found an empty wasteland, emblematic of CleanSpark's promises to investors.
Read 10 tweets
7 Dec 20
1) OrthoPediatrics $KIDS has yet to respond to our report. We think they can't do so without further implicating themselves in the Company's channel stuffing scheme. We believe management and the board of directors owe investors answers to the following 5 questions:
2) Thus, on December 3, a lone sell side analyst came to $KIDS defense. He began by restating the Company's revenue recognition policy, which suggests that doing actual work on the Company's practices sits well above his pay grade.
3) The analyst glosses over the fact that $KIDS recognizes revenue on shipment, which occurs when (a) replacement product is shipped after surgery, but also (b) when excess product is shipped to distributors who have been induced by $KIDS to do so. We think $KIDS stuffs via (b).
Read 6 tweets
2 Dec 20
1) We are short OrthoPediatrics $KIDS, which we believe has engaged in a channel stuffing scheme that has systematically and significantly overstated revenues. Full report now available at culperresearch.com
2) $KIDS claims to consign inventory and recognize revenues when products are used in procedures. However, we interviewed 4 Company distributors and 2 fmr. $KIDS executives who all stated that KIDS sells excess product directly to distributors, recognizing revenue on shipment.
3) 4 of these 6 interviewees also described that $KIDS induces distributors to purchase product direct from the Company in exchange for (a) equity-based awards, (b) the opportunity to return product, and/or (c) product discounts or increased commission schedules.
Read 9 tweets
19 Aug 20
1) We are short Blink Charging $BLNK. Our full report is now available at CulperResearch.com
2) $BLNK claims to "connect over 15,000 chargers" and be "the largest" owner-operator of charging stations in the industry. We believe $BLNK's functional public network approximates just 2,192 chargers, or 15% of these claims.
3) Our investigators visited 242 chargers in 88 locations across the U.S. and found an overwhelmingly decrepit assembling of assets. $BLNK claims high demand which has grown with EV growth, but its own disclosures show its chargers sit almost entirely unused by EV drivers.
Read 10 tweets