BearCaution

ZNOG Zion Oil & Gas Update – Video of Well Interview

Video footage of wells – Worker says there isn’t oil there at MJ #1 Well Chairman of Corporate Governance Committee Resigns. Running out of Cash within the next 2 months.

SSTI ShotSpotter (SSTI) – Court Case Exposes Failures of ShotSpotter Technology

We are short ShotSpotter because: The Simmons case alleges unreliable data & forensic reports that can be modified after the fact. ShotSpotter’s accuracy percentage is a product of their marketing department, not their data scientists. ShotSpotter’s technology & testimony has been deemed inadmissible in certain courts in 2 of its major markets (CA & NY). ShotSpotter has made no known efforts to get independent confirmation of the validity of their data for court use. ShotSpotter requires human analysis to prevent false positives that their software generates. We believe 9.5x EV/Sales is an unsustainable valuation for this unprofitable company.

BDSI BDSI – Money Losing Opioid Company Founded By The Bankruptcy Experts

We are short BioDelivery Sciences International (BDSI), a money losing opioid manufacturer that is connected to Dr. Frank O’Donnell, Jonnie Williams’ long-time business partner. Dr. Frank O’Donnell and Jonnie Williams are business partners whose companies have a 30-year history of stock wipeouts, SEC investigations, shareholder lawsuits, and even bribery of a governor. BDSI engages in questionable business practices similar to Insys & Purdue Pharma – co-pay cards for free opioids; paying suspect doctors; and convincing doctors to increase dosage. However BDSI is different from other opioid companies in that they burn through cash hand over fist. Over $6.5m of negative Free Cash Flow from Operations per quarter! 10-K disclosure around the Teva settlement shows that a generic Belbuca could be coming much sooner than management has indicated.

XXII 22nd Century Group – Key Patents have Expired!

Fuzzy Panda Research is Short XXII since we discovered that the most important patents in XXII’s patent portfolio have now expired. XXII’s Key QPT patents behind the tobacco used in their MRTP & PMTA applications expired in 2018. QPT expired patents are the essential patents behind the Vector 21-41 tobacco strain. Patent Expiration explains why BAT was not willing to pay $3 million to have an exclusive license. Big Tobacco companies already have a plethora of low-nicotine tobacco patents and can adhere to FDA low-nicotine standards and now they can produce a similar plant to XXII’s Vector 21-41 tobacco strain. Lawsuit accusing XXII, CEO Henry Sicignano, and Trey Prevost (a felon) of stealing and copying the intellectual property of Global Tobacco LLC.

WKHS Workhorse Group Inc (WKHS) – Short – Critical Failures in USPS NGDV Bid Revealed

A few weeks ago, Hindenburg Research exposed Nikola, a high-flying EV company, as an alleged “intricate fraud”. The stock fell over 50% in the process. Nikola has since admitted to purposely rolling a truck down a hill to mask the appearance of a working prototype for a promo video... Workhorse rolled a USPS prototype truck down a hill accidently1 after their parking brake failed causing a union USPS driver to be hospitalized after jumping out of the runaway vehicle. We think this debacle as well as the numerous other “critical failures” we will lay out, destroyed Workhorse’s chances of ever landing the USPS NGDV award.

FRSX Foresight Autonomous (FRSX): A Minefield of Criminals, Self-dealing, Fake Sales, and Old Technology

We are Short Foresight Autonomous (FRSX) and see material downside and expect this reverse-merger penny-stock promotion to collapse back to below $1 for the following reasons: FRSX’s cap table is littered with accused & convicted criminals. Insider Enrichment via egregious related party “service agreements” which allow FSRX’s CEO and the known penny stock promoters to siphon cash out of the company. Founding shareholders, members of the Board of Directors, and FRSX’s CFO have been involved in at least ten other stock promotion schemes. Insiders got paid but shareholders got fleeced. FRSX is a family affair. The new CTO is actually the CEO’s Brother-In-Law. The CEO’s daughter, is their legal advisor and VP of HR. His daughter has also received generous share grants including free extensions of expiring options despite being a part-time employee.

ELMS ELMS – EV Pretender – Passing Off Chinese Imports as “Made in the USA”; Booking Fake Revenue of Fully Returnable Products?

We are short ELMS because we think they have taken misleading statements to investors to a different level and gone beyond just exaggerating the size of their order book. ELMS DO NOT even BUILD their own EVs Import Records show ELMS is importing fully assembled Chinese vehicles and trying to pass them off as “Made in the USA.” Secure order book and revenue is actually returnable! ELMS’s major “customer” is Randy Marion Automotive – Contracts show that Randy Marion has the right to RETURN all the vehicles purchased from ELMS. We think ELMS has potentially been questionably booking revenue. Overpaid for an idled factory – capital from their SPAC IPO was used to buy a factory that had been idled and was about to be written down. Purchased from the company ELMS recently fired CEO used to run at a >60% premium. Factory Visits = Empty Parking Lots + Chinese Vehicles with ELMS “logo added”.

EVGO EVGO – A Broken “ESG” Company Connected to Jeffrey Epstein

EVGO is a mediocre EV charging company that we believe is substantially overvalued. Not only are a significant number of their EV chargers broken, but they also have triple digit negative operating profit margins which have gotten even worse. UC Berkeley study reveals 25.5% of EVGO’s chargers are broken/out of service. Operating margins declined from -199% in 2019 to -260% in 2021 and -381% in Q1-22 Charger utilization has DECLINED by 21% from 2019 to 2021. Key patent was recently denied in May 2022. EVGO only spends $2m a year on R&D Questionable partnerships – including with ELMS who recently filed for bankruptcy.