Kir Kahlon, founder and CIO of Scorpion Capital, reveals his latest short thesis on Ginkgo Bioworks Holdings ($DNA). Ginko appears to have major problems with its business model, generating almost all its revenue from “China Hustle” like round tripping of investments into an ever-growing list of related parties that appear in some case to be nothing more than hollow shells controlled by Ginko. The reported levels of related party revenues are staggering but Kir argues that there is strong evidence that these numbers are being underreported and related party revenue may be close to 100% of Ginko’s revenue. On top of that, much of this revenue is non-cash in the form of prepaid R&D credits, resulting in some of the worst financials Kir has ever seen.

The full report can be found on Scorpion Capital’s website here: