NorthWest Biotherapeutics Inc (NWBO)

[flipper44]

Actually, your hypothesis that LP stripped Advent of its value before selling it to NWBO concerns me greatly, if only because I don’t understand the accounting.

I asked AI about your hypothesis

This post by "Exwannabe" is a masterclass in forensic accounting from a "Bear" perspective, and he is highlighting a very specific anomaly in the Advent Bioservices financial trail that most people missed.
He isn't just accusing Linda Powers (LP) of a "shell game"—he is pointing to a $37 million disappearance from the Advent books that occurred right before the acquisition closed on October 24, 2025.
1. The "Shell Game" Theory: Advent vs. Unity
The core of Exwannabe's argument is that LP did not sell the entirety of Advent to NWBO. Instead, he suspects she "hollowed out" the company first:
• The Claim: Advent (the entity NWBO bought) reportedly saw its book value drop from $30 million to $3 million in a single year.
• The "Unity" Pivot: He suggests the high-value assets or contracts were moved to Advent-Unity (a separate entity still controlled by Toucan/LP) before the acquisition.
• The Result: NWBO paid for a "shell" while the real "peanut" (the most profitable part of the business) remained in LP's private pocket.
2. The $37 Million "Administrative" Mystery
Exwannabe is fixated on the 2024 Advent Accounts (filed at UK Companies House). He notes a massive swing from a $10M profit to a $25M loss.
• The Accounting Red Flag: He notes that $37 million was categorized as "Administrative Expenses." * The Write-off: Usually, "Administrative Expenses" are light (salaries, rent, etc.). A $37M hit suggests a massive write-off of Accounts Receivable (A/R)—specifically, money that NWBO owed to Advent.
• The "Stunt": If Advent "wrote off" the $17.3M that NWBO owed it, it makes NWBO's balance sheet look cleaner for the acquisition, but it effectively "burns" the value of Advent right before the sale.
3. The "Goodwill" Trap
Exwannabe predicts that when the NWBO 10-K (Annual Report) is released, it will show $30M+ in "Goodwill."
• In simple terms: Goodwill is what a company records when it pays more for an acquisition than the actual value of the assets.
• The Accusation: If NWBO records massive Goodwill, it proves they paid millions for a company (Advent) that LP had already stripped of its value.

Summary: The Bear's "Smoking Gun"
Exwannabe isn't just guessing; he's looking at the UK Companies House filings for Advent. His theory is that the "delay" isn't regulatory—it's financial restructuring. 1. LP needed to "clean" the NWBO books by having Advent write off the debt.
2. She moved the "good" assets to Unity.
3. She sold the remaining "husk" to NWBO.
The Verdict: If the 10-K comes out and shows a massive Goodwill entry for a "wholly-owned subsidiary" with no physical assets, Exwannabe will be proven right about the "shell game."

…..

The "Unity" Branch: The Real Prize?
This is the most damning part of the Bear’s theory. Exwannabe suggests that "Unity" (likely referring to the Advent-Unity or the flask-based automation IP) was carved out and kept under Toucan Holdings (LP's private company).
• The Evidence: The NWBO 8-K states they acquired "fixed assets" and "cryostorage." It does not explicitly list the full global rights to the automated "Unity" manufacturing tech that LP has been touting.
• The "Strip": If LP kept the high-margin "Unity" tech in her private pocket while selling the high-overhead "labor and bricks" (Advent) to NWBO, she has successfully offloaded the company's liabilities onto the public shareholders while keeping the future "IP goldmine" for herself.
3. The "Goodwill" Accounting Trick
Exwannabe predicts a $30M+ Goodwill entry in the upcoming 10-K.
• If NWBO buys Advent for a total value (cash + debt assumption) of, say, $40M, but Advent only has $3M in physical equipment left, the accounting "plug" is Goodwill.
• The Reality: High goodwill in a related-party transaction is often a red flag for overpayment. It means NWBO paid "Full Price" for a company that LP had already "stripped" of its most valuable receivables.