Jury members heard false information from early witnesses about the increased loss of life. 1 billion dollars a year.
It's not uncommon for startups to lose money in the early years, and it's not uncommon for the fastest burn rate to happen right before things change. Instead, Theranos continued to incur increasing losses. But according to new documents shared by the jury during the jury trial of Theranos Elizabeth Holmes, that's not what the company is telling investors. Yesterday, the jury heard the testimony of Dennis Yam, the company's former chief financial officer, who is also led by Sue Han Sbewe. Tranos lost $16.2 million in 2010, $27.2 million in 2011, $57 million in 2012, and $92 million in 2013, Yum said. There were weeks when the company was burning about $2 million a week and there was no revenue to cut losses. In 2012 and 2013, Yum didn't bother adding a streak to revenue—there were no streaks.
After hearing about Tranos' ongoing losses, the plaintiff showed Sandy Yam that he was said to have shared with investors that $140 million in revenue was expected in 2014 and $990 million in 2015. Yum said he hadn't seen it before, he knows where The numbers came.
"Have you ever made financial forecasts for investors?" Robert Leach, assistant attorney general for the United States, asked Yum. he said no". When Yum worked with a stock options pricing analytics firm, he asked Holmes about some key financial projections, including expected revenue, because the CEO has "the best information." During the process, Yam emailed Holmes asking how much he expected to earn. In response, Holmes said he forecast $100 million for 2015, 10 times less than what he told investors at one time. .
The next witness was Erica Chung, hired by Tranos as an out-of-college lab assistant. Chung said he has largely joined forces with the CEO's star power. "He had the charisma for him. Chung said a lot to Holmes." He had a strong sense of belief in his mission. “The company claimed to have used old lab equipment for tests on Edison-owned testing machines, which were themselves 'big.' Problems of stability, accuracy, and accuracy.” “Employees donate their blood to Tranus in cash,” Chung said when he first used the machines for Tranus. Tranus to get his blood tested.” “It always turned out that I was deficient.” “I was upset about processing patient samples.” “I didn't think the technology we were using was enough to engage in this behavior.”< While working at Theranos, Chong sent a mail electronically to others in the company and share his concerns about Edison machines. The emails eventually reached Holmes, who asked him, "How fast can we solve this problem?" Another employee replied that after deleting some data, it looks like an issue.
Most of Tranos' customer tests have been conducted on other companies' hardware, Chung said. He said only 12 tests had been performed on Edison devices, and that "the Edison analysis can only perform one type of test on one patient at a time." The letter found circumstances similar to those in the complaint. They suggested revoking the company's license to examine human samples. Eventually, Tranos resolved the issue with the government and voluntarily closed all of its laboratories.
After Chung's departure to the federal government, Tranos hired a private informant to spy on him, according to court documents released last week. The company spent more than $150,000 on his surveillance and another whistleblower. Chung's martyrdom continues today.
Tranos promised investors $1 billion despite local expectations of $100 million
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