Kerrisdale, which notes it makes money as the stock in Siebel’s company declines, said C3 has little artificial intelligence in its technology and was making most money on professional services while hawking a product built on old technology that is expensive and difficult to implement and use and has trouble attracting new customers. C3 has not responded to the Kerrisdale report on its website on via the SEC's Edgar site.. According to Kerrisdale, the company has suffered from severe sales turnover and gone through four CFOs in four years with the latest a 39-year-old with no CFO experience. In addition, Kerrisdale called for an investigation of C3’s accounting practices. In its report, the investment firm wrote, “We sent a letter today to C3.ai’s signing audit partner and the head of the U.S. audit & assurance practice at Deloitte & Touche LLP regarding serious accounting and disclosure issues we have identified in C3.ai’s SEC public financial statements.” The allege problems include efforts to inflate gross margins by reclassifying costs of revenue as R&D expenses, “Opaque, confusing and highly concerning disclosures and financials related to the company’s related party and very large customer, Baker Hughes”, “highly conspicuous growth in unbilled receivables to levels we’ve never before seen in software companies: and classification of services or consulting-related revenue as subscription revenue.” One of C3’s earlier claims was that it was revolutionizing CRM, but Kerrisdale said a highly-touted relationship with Microsoft in that area has virtually disappeared. Siebel’s leadership received low marks for showing “signs of unchecked power, poor executive judgement, and self-enrichment” and “a management style that many employees have characterized as dictatorial, demotivating, or toxic.”