XG Technology, Inc (XGTI)

[calbwt]

That "net income" was only because they used an accounting trick called "gain on bargain purchase". It isn't real money. It's merely the difference between what they paid for an asset and what somebody says that asset is worth. Without this accounting trick they're clearly operating in the red. And look at the three-month numbers -- they're back in the red without the big GOBP. They've always operated at a net loss, which explains why they continue to issue new shares. (Notice today's S-1?)

They make their money selling stock. Their hardware/software/IP business is just incidental.