Nightfood Holdings Inc. closed two hotel acquisitions on November 20 2025, purchasing the Rancho Mirage Hilton Garden Inn for $52.8 million and the Victorville Holiday Inn for an undisclosed amount. The deals add two fully‑operating properties that generate recurring hospitality revenue and provide on‑site test beds for the company’s AI‑powered Robotics‑as‑a‑Service platform.
The transactions created $91.5 million in temporary equity that will convert to permanent equity once Nightfood meets the criteria for an uplisting to a national exchange. The temporary equity is structured as a convertible instrument tied to the company’s future listing, allowing the firm to strengthen its balance sheet while preserving liquidity for ongoing expansion.
Despite the asset growth, the company reported a net loss of $3.7 million for the quarter ended September 30 2025 and a working‑capital deficit of $18.7 million. Total assets rose to $128.8 million from $7.3 million at June 30 2025, but the company’s cash position remains constrained, prompting a going‑concern warning in its latest filing. The loss reflects significant capital expenditures on robotics development and the costs of integrating the new hotel operations.
Nightfood’s three reportable segments—Foodservice Packaging Distribution, Robotics‑as‑a‑Service, and Hotel Operations—contributed $782 k in revenue for the quarter, a first‑time figure that signals early traction. The hotel segment, now bolstered by the two acquisitions, is expected to generate steady cash flow once the properties reach full operational capacity, while the RaaS segment continues to build a subscription base that can scale across the newly owned hotels.
CEO Jimmy Chan said the quarter was “one of the most pivotal in the company’s history” and highlighted the $10 million annualized revenue milestone as validation of the integrated growth model. He added that the Victorville property would serve as the company’s first automation blueprint, where robotics can be tested, refined, and replicated in other hotels.
The acquisitions reinforce Nightfood’s strategy of vertical integration, allowing the firm to deploy and validate its robotics technology in its own properties while generating recurring hospitality revenue. However, the company’s financial position underscores the need for additional financing to sustain growth and meet the liquidity requirements of a national exchange listing. The balance between expanding the asset base and maintaining cash flow will be a key focus for management as it pursues its uplisting goal.
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