A long story short - UTK business model is to acquire technology from university/lab at a low cost, and transfers to companies (usually micro-size/start-up) in exchange of the shares from them.
The report challenges the background of those companies as well as the valuation of the shares.
Here is my opinion.
The report is biased, to begin with. The author shorted 75,000 shares before the report was published. To be fair, he does disclose his position in the report. To be precise, "biased" doesn't mean the report provides inaccurate information (I have no idea the level of accuracy in the report), however, it could filter and only provide the information he wants you to hear.
Furthermore, I wasn't surprised that some of their partners has questionable background, or has a questionable business. However, I don't think that shall be the reason to sell the stock, here is why.
By the nature of their business model, they mainly deal with micro-size company - Pick Sheet, Over the counter, or start-up. Very few investors buy those stocks in anticipation of 10% - 15% annual returns - instead, it is either 100% loss, or huge gains. This indeed, makes UTK's model more attractive - it diversifies the portfolio by making deals with a lots of those companies, and allow a reasonable portion of those companies to fail eventually.
So, if you believe in their business model, the real question is do they have a competent management team with good judgement, execute deals in good faith, each and every time?
To that question, I don't have a answer.
My friend Jaewoo's blog has a few updates on the subject. Worth reading if you are interested.