3/11/2023 0 Comments Irapp thin client![]() Revenue declined 44% from the previous year versus a 17% y/y decline in 1Q, and gross profit loss also increased. ![]() Regardless, we have heightened conviction that shares of Code Rebel will ultimately be worth pennies.Ĭode Rebel's 2Q results were awful. We believe the company's promotional efforts, including claims regarding business momentum in its IPO prospectus, could come under regulatory scrutiny. Management continues to issue press releases at an alarming rate, and we are curious whether it is getting a legal sign-off to reference the many Fortune 500 customers it names, who, in all likelihood, represent hundreds of dollars (not hundreds of thousands) in quarterly revenue. 17% y/y in 1Q - in stark contrast to public statements by management. Instead, a review of 2Q results demonstrates y/y sales declining at a rapidly increasing rate - down 44% y/y vs. James Canton, we would have thought a 2Q press release and conference call would have been a shining opportunity to get the Code Rebel story out there. Given the tremendous "momentum" described in the IPO prospectus and publicly discussed during the 2nd quarter by CEO Arben Kryeziu and highly incentivized Board Member Dr. Given the company's numerous press releases since its May IPO, including 2 since our article, we found it shocking that it issued its 2Q 10-Q after the close on Friday, August 14th, without a press release advising investors several day prior to releasing earnings or a press release discussing earnings (and, no conference call with management). We previously wrote about Code Rebel ( NASDAQ: CDRB) as a short on August 7th, and shares have declined 20%. "It's easier to fool people than to convince them they have been fooled." - Mark TwainĪs investors, we diligently review our portfolio companies' press releases, with special importance to their earnings releases and SEC filings.
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