Tuesday, September 28, 2021

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    Former employee says the company has lost millions

    San Jose, Calif .—Publicly, Elizabeth Holmes was called the next Steve Jobs on the cover of Inc. magazine in 2015, but personally, the blood testing company Theranos she founded is a few. It suffered a billion dollar loss.

    On Tuesday, San Ho Spyby, the first witness to the government in a Holmes fraud trial and long-time Theranos financial manager, also by Danise Yam, detailed the actual state of the company’s financial position. I testified.

    According to Yam, Theranos had a net loss of $ 16.2 million in 2010, $ 27.2 million in 2011, $ 57 million in 2012 and $ 92 million in 2013. Every week in 2013, “cash started to get a little tighter.”

    Yam testified that Theranos had accumulated a loss of $ 585 million by 2015, according to tax documents. Nonetheless, the prosecutor pointed out a document submitted to investors who predicted revenue of $ 140 million in 2014 and $ 990 million in 2015. Yam said he did not prepare this document.

    “Have you ever provided financial forecasts to investors?” Asked Assistant Federal Attorney Robert Reach. “No,” Yam replied.

    During the interrogation, the defense lawyer pointed out a document in which Theranos was valued at either $ 9.5 billion or $ 1.69 billion, depending on the methodology. Holmes lawyer Lance Wade quized Spivey about another company that suffered significant losses in the 2009 financial crisis.

    Yam testified that he had never sold the shares owned by Holmes and had never processed the sale.

    Holmes faces wire fraud and plots of wire fraud in connection with misleading investors and patients about Theranos technology. She swore innocence. Her long-awaited criminal fraud trial began last week in San Jose. In the opening statement, Holmes’ defense team described her as an ambitious young woman who truly wanted to revolutionize healthcare.

    Holmes told several investors that Theranos technology had been deployed to battlefields, Afghanistan, and Medebuck helicopters by the US Department of Defense. During the four hours at the stand, Yam testified that Theranos had no actual revenue-generating contracts with the Pentagon or the military.

    The government’s next witness, Erica Chan, quit her job as a lab associate seven months later, became a whistleblower, gave a TED talk, and was interviewed for numerous news articles.

    Chan testified to Holmes during a job interview that he was “starred.”

    “She was charismatic and very clear,” Chan said. “She was very confident in her mission.”

    Cheung told the court that he was excited to work for Theranos, based on the “little information” given. “I asked a lot of questions about the company, and [Holmes] I said I would know when I started working here. “

    Theranos was once valued at $ 9 billion.

    “At the time, she was one of the few female entrepreneurs to win the unicorn status,” said Chan, who said Holmes could “set an example for other women to get excited about science and engineering.” I added.

    Cheung testified that her orientation was done by Holmes’ brother Christian Holmes. Cheung said he ran only 12 tests while at Theranos the Edison, which was used to process blood samples, and all other tests were run on third-party machines.

    “The Edison analyzer could only perform one type of test on one patient at a time,” Cheung said.

    Holmes arrived in federal court hand in hand with his mother, Noel Holmes. When Holmes entered the court, the outside audience applauded his support, became emotional, and shouted, “It’s ridiculous to put everything alone.”

    Earlier that day, the judge excused one jury for financial difficulties and moved another to the main bench. It changed the jury composition to eight men and four women.

    Former employee says the company has lost millions

    Source link Former employee says the company has lost millions

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