Nearmap is an Australian-based location intelligence company which listed on the Australian exchange in December 2020. In February 2021, the company was attacked by short-seller J-Capital Research alleging that it was failing in its attempt to gain a foothold into the US market despite reporting strong growth. J-Capital believed the company was using accounting tricks to hide this failure and that actual US revenue growth was less than 50% of that reported. Furthermore, it expected Nearmap to become embroiled in a patent dispute over its technology. In May, its largest competitor filed a patent infringement case in the US which remains ongoing. There are some characteristics suggesting accelerated revenue recognition and cash flow window-dressing but they are inconclusive. Nearmap's earnings expectations have continued to fall since the report's publication. On balance, J-Capital’s allegations have been partially demonstrated.

Last updated July 2022.

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