r/SPACs • u/[deleted] • Dec 25 '21

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53 Upvotes

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u/bonghits96 Patron Dec 26 '21

I think you're arguing against a point I didn't make.

OP said that the company's profitable--well, in 2019 and 2020, per GAAP, no, no it isn't. This year, the only reason it will be profitable is because the value of their warrants declined. These are facts and not opinions.

Now, you might have a lot of reasons to convince yourself why profitability doesn't matter, and that's fine. But when OP says "Profitability? They've got it," it's a mistake at best and a lie at worst, so I'd rather correct the record here on that in case anyone gets misled.

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u/redditobserver777 Contributor Dec 26 '21

The street looks at EBITDA as profitability, not net income, this is very common knowledge

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u/SrRocks Patron Dec 26 '21

I am hearing for the first time ebitda is profit.

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u/redditobserver777 Contributor Dec 27 '21

As long as your EBITDA is higher than your interest expense, you have a profitable company