Intelligent Systems stated in a press release last night: "On May 24 and May 30, 2019, separate commentaries about Intelligent Systems Corporation were released by Aurelius Value and Grizzly Reports. The anonymous authors never contacted the company for clarifications or answers to any questions they may have. Had they done so, Intelligent Systems would have pointed out factual errors, incomplete information and erroneous conclusions which are rebutted by Intelligent Systems' public filings and other publicly available information...We believe it is in the best interest of our shareholders for management to remain focused on business rather than debating or responding to rumor and innuendo. However, due to the number of inquiries to the company, management believes it important to now respond to these misrepresentations. It is also important for interested parties to consider that the individuals responsible for the 'short and distort' reports have a financial interest in a decline in the company's stock price. We believe this calls into question the motivation and intent behind the allegations as well as the timing of its release." Intelligent Systems management plans to host an investor conference call on Wednesday June 5, 2019 at 11 am Eastern Time to discuss "corporate developments and to address the false and misleading statements and innuendo in the above-mentioned commentaries," the company noted.
Shares of Intelligent Systems are down after the company was the subject of a second short report in week. Following Aurelius Value's report on May 24, Grizzly Research posted a short report today on its website. Grizzly, which says it produces "differentiated research insights on publicly traded companies through in-depth due diligence," put a $5 price target on shares of Intelligent Systems. The stock in midday trading is down 17%, or $5.85, to $27.96. "We believe that Intelligent Systems Corp. has its employees set up or take control of undisclosed shell companies in Asia, who then partake in undisclosed related party transactions with INS intended to either round-trip revenue back to INS or siphon money out of the company," Grizzly said in its report. The firm believes "these material undisclosed related party transactions cast doubt on the integrity of INS's financial statements."
Aurelius Value stated in a new short report about Intelligent Systems (INS) published on its website: "While INS is touted as a fintech set to disrupt the payments space with breakthrough technology, we believe the company is merely a glorified Indian outsourcing business that, like so many other stock promotions, will leave investors chasing the prospect of quick riches disappointed by the underlying economics and growth prospects. INS features a problematic cast of cronies, including the disgraced former CEO of MiMedx, Parker 'Pete' Petit, whom INS made the 'financial expert' of its Audit Committee, even though he orchestrated a giant fraud at MiMedx that has thus far cost investors over $1.5 Billion in losses." Reference Link