Replies to post #8442 on Nightfood Holdings Inc (NGTF)

[TheGreatOne99]

Repurchase is the key. If consumers like the product enough to repurchase, the brand wins

All the customer acquisition cost and slotting fees are expenses that go away over time,

[bcomaha]

I have a question from the 10Q.

What part of this makes Nightfood a losing proposition?

In April, 2020, the Company successfully negotiated a Debt Incentive Agreement with one of its creditors to whom it owed $731,118. This Debt Incentive Agreement provides for the elimination of the entire debt should the Company make payments in calendar 2020 totaling $166,224 in cash, and approximately 4,000 pints of ice cream. Because this reduction in debt is conditional, the full $731,118.33 is currently included in the liabilities section of our balance sheet. Should the Company make the payment and retire the debt during calendar 2020, The Company would realize a Gain on Extinguishment of Debt of approximately $560,000.

That looks like * $140.00 per pint!