NightFood Reports $84.7M Loss, $63.9M Goodwill Impairment, and Going Concern Warning
NGTF is trading near its 52-week low of $0.02 (15% above the low) on light trading volume (0.2× avg).
Summary
NightFood Holdings' annual report shows an $84.7M net loss, $63.9M in goodwill impairment, a going concern warning, and material internal control weaknesses.
Key Events · Earnings and Guidance · NGTF
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Goodwill Impairment of $63.9M
The company recorded $63,886,000 in goodwill impairment charges — $29,544,000 at Victorville, $31,993,000 at Rancho Mirage, and $2,349,000 at SWC — because operating results fell below acquisition-date forecasts.
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Net Loss of $84.7M
Fiscal 2026 net loss was $84,654,946, compared to $8,115,878 in fiscal 2025, driven primarily by the goodwill impairment and higher interest expense of $6,291,338.
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Going Concern Warning
The auditor's report includes a going concern paragraph. At June 30, 2026, the company had a working capital deficit of $29,761,991, cash of only $865,889, and an accumulated deficit of $131,408,790.
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Debt in Default of $7.05M
Convertible notes and notes payable with principal of $7,049,557 were past maturity and in default at June 30, 2026, accruing interest at default rates up to 24% per annum.
Analysis · NGTF · Technology
The 10-K reveals the full extent of fiscal 2026 deterioration: a net loss of $84.7 million driven by $63.9 million in goodwill impairment on the two hotel acquisitions and SWC, a working capital deficit of $29.8 million, and only $865,889 in cash. The auditor's going concern warning is explicit — existing cash cannot fund operations for twelve months without additional financing. Management also disclosed material weaknesses in internal controls, including insufficient accounting personnel and over-reliance on manual processes. The company is simultaneously pursuing a 1-for-150 reverse stock split to enable a Nasdaq uplisting, but the split had not been declared effective as of the filing date. This is the first comprehensive disclosure of these financial results and control deficiencies.
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In the 30 days to Oct 28, 2026, 45.8% of the 251 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.67%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, NGTF was trading at $0.02 on OTC in the Technology sector, with a market capitalization of approximately $11.9M. The 52-week trading range was $0.02 to $0.11. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.