Episode Details

Changing a corporate business model creates an ugly short-term revenue hole, and surviving the transition entirely depends on having the balance sheet runway to wait it out.

• Domo (DOMO) triggered a bank default after a strategic shift to AI-consumption pricing stalled immediate revenue.

• PowerFleet (AIOT) is intentionally absorbing heavy installation losses to deploy hardware as a software Trojan horse.

• Canopy Growth (CGC) suffered a massive vaporizer impairment, exposing the downside of un-monetized physical assets.

Even when strategic pivots succeed fundamentally, the financial transition valley can easily bankrupt a company before it reaches the other side.