Orthogonal Thinker shadiness??

So Orthogonal Thinker’s 2019 financial statements were published recently. The SEC requires any company who raises money via a crowdfund to publish annual financials, which is why they are forced to publish theirs. You can find them on the SEC’s EDGAR website if you’d like.

The TL;DR on the financial side: they raised almost $5 million last year by issuing convertible debt at some pretty rich valuations. But they only generated $15,000 in revenue while losing over -$700,000 in net income. And that was a big jump over the loss of -$260,000 in 2018.

There were some puzzling (troubling?) things that jump out in their financial statements:

  1. They have a loan outstanding to their officers for over $705,000, and this increased almost $500k from the year prior. Does this mean the company gave their officers that amount from the funds they raised? If so it’s pretty suspect.
  2. They have auto lease and expense of $23,000, which equates to $1,900 per month. Does the company pay for auto leases for the three officers? If so they must drive nice cars for a $650 per month lease
  3. For a company that claims to have great IP, they only spent $35,000 on product research, and they only value their IP at $25,000.
  4. The company claims to have great investments in companies like Airbnb, but the investments only have a total value of less than $400,000. Also, you can see on a different statement that the Airbnb shares specifically were bought on a secondary market. That means that the company didn’t invest alongside other VCs. Instead they bought them on a secondary share marketplace like EquityZen (like anyone can do).

I hope I’m wrong about some of this becuase its not a very good look

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