NightFood Holdings, Inc.

TechForce Robotics (Formerly NightFood Holdings) Annual Investor Summary - 2023/2024

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The Big Picture

TechForce completely reinvented itself this year, swapping midnight snacks for robots and hotels. While they made first-ever robotics income in June 2025 (after this fiscal year ended), 100% of this year's revenue still came from old snack sales they've discontinued. The company burned through $1.6M in cash and now has only $350,000 left - enough to operate for about 4 months.

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Financial Health Check

🚩 Warning Lights Flashing:

• Cash Crisis: Only $350k left (down from $2M last year)
• $9.5M Debt Hole: Owe $10.7M more than they can quickly pay
• Lifetime Losses: $38.6M total (up $8.6M from last year)
• Stock Band-Aids: Paid $1M+ in bills/acquisitions with shares instead of cash

The Good News:

• First robotics contracts signed (3-year deals)
• Raised $4.4M through stock sales for hotel projects

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Where’s the Growth?

1. Robotics (New Hope):

   • Started earning money June 2025 (after fiscal year)
   • Maintenance costs built into service fees
   • What’s Missing: Exact revenue numbers not disclosed

2. Hotels (Big Gamble):

   • Bought 2 properties to test robots (Aug/Sep 2025)
   • Red Flag: Requires unquantified renovation costs

3. Packaging (Dead Weight):

   • $0 sales this year - inventory still unsold

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Major Risks

1. Survival Risk: Needs emergency funding within 12 months
2. Stock Dilution: 83,333 new preferred shares created for hotel deals
3. Hotel Money Pit: Renovation costs could drain remaining cash
4. Economic Sensitivity: Rising costs/recession could kill robot demand

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Leadership Moves

• Pivoted to "hotel lab" strategy using stock instead of cash
• Acquired Skytech Robotics ($528k stock deal)
• Investor Note: No executive changes reported

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The Competition

• Robotics: Behind established players but has first customers
• Hotels: Unique "testing lab" approach - no direct competitors
• Financials: Much weaker than rivals (-$9.5M equity vs. competitors’ profits)

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Should You Invest?

Potential Upsides:

• First-mover advantage in hotel robotics labs
• 3-year robot contracts provide some stability

Clear Downsides:

• 96% chance of needing emergency funding soon
• Stock value likely to drop with continued dilution
• No proven success in new ventures yet

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The Bottom Line

TechForce Robotics is a high-risk bet trying to pivot from snacks to robots+hotels. While they’ve made first steps, critical issues remain:

1. Cash Burn: Operating on 4 months’ runway
2. Unproven Model: Robots just started earning, hotels unopened
3. Transparency Issues: Missing key data on robot revenue/hotel costs

Investor Takeaway: Only suitable for speculative investors comfortable with potential total loss. The company needs near-perfect execution AND new funding to survive 2026.

Final Note: The limited detail in their annual report raises questions about transparency - proceed with extreme caution.

🔍 *Want deeper analysis? Ask about:

• Their $10.7M working capital deficit
• The 83,333 preferred share structure
• How hotel robots differ from existing automation*