False. They have zero operating profits and fully diluted shares would be over 90 million.
They even lost money from operations in Q1 when the S/A author and most others expected an operating profit.
They will have a non-cash derivative gain in Q2 but that means ZERO to any valuation of NGHT.
On a price to sales valuation, NGHT might be moderately undervalued at this level, but only if they report an operating profit for Q2 and don't show a need to issue more debt this year.
This latest news on debt swapped for equity relates to old pre-reverse merger debt that has had questions about it for years. Questions exist to why it even existed or wasn't converted to stock at the time of the reverse merger.
It even raises questions on whether the holder realized he had little chance to recover the money and took some shares to get something...but this will require selling 3 million shares into a market that already has a huge overhead supply as huge warrants are still being liquidated and convertible debt will cause huge additional shares for sale (all at 50% on the dollar to existing stock prices).
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