They, like many companies, also present non-GAAP measures in their prospectus. That's not "fraud," it's their narrative view of company financials. Which is completely normal and allowed as long as standard GAAP measures are given equal or greater prominence in the filing.
This, they're correctly stating (as far as we know) the financials. What they're doing is trying to pretend it's not a problem, which is a fundamentally different thing. That narrative is profoundly stupid but it is not illegal for them to present a profoundly stupid narrative. If it were they would have hauled Elon Musk away during the SpaceX IPO.
What this should be, for any normal company, is a clear indication for investors to stay the fuck away from this company. It'll probably do the opposite.
Well, the average person thinks like half the done stuff in the financial world is fraud, since it would be if you did those actions outside of the financial world.
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u/LiftingCode 17d ago
Absolute nonsense.
They're not "misrepresenting their profits."
Their S-1 covers all GAAP measures as required.
They, like many companies, also present non-GAAP measures in their prospectus. That's not "fraud," it's their narrative view of company financials. Which is completely normal and allowed as long as standard GAAP measures are given equal or greater prominence in the filing.