AAQL is a micro-cap holding company (NY-incorporated, PRC-operating subsidiaries) with going-concern qualification, accumulated deficit of $1.88M, and reported stockholders' equity deficit of $300,616 as of December 31, 2025. Under the liquidation lens, recovery to equity is negative. Total assets of $1.81M face haircuts that reduce recoverable value materially, while total liabilities of $2.11M are held at face value. Cash of $936,910 recovers at par. Inventory of $101,884 recovers at approximately $61K (60% haircut). PP&E net book value of $158,083 recovers at $79K–$111K (50–70% haircut). ROU asset of $370,851 has negligible standalone liquidation value and is offset by the full $379,368 operating lease liability stack at face. Intangibles of $12,989 recover at zero. Other receivables/prepayments of $214,843 recover at roughly $193K–$204K (90–95% haircut). Gross liquidation asset recovery approximates $1.3M–$1.4M against $2.11M in face-value liabilities, yielding an estimated equity recovery of negative $700K–$800K, broadly consistent with MFFAIS CLV of negative $773,570. The two largest drivers of negative recovery are: (1) the $980,000 due to related party Barry Wan (unsecured, demand, face value in wind-up), which increased $460K from $520K at March 31, 2025 via additional advances during the period; and (2) the ASC 842 operating lease liability of $379,368 with 5.82 years weighted-average remaining term and $461,697 undiscounted future payments that do not extinguish on wind-up. The $1.284M non-cash debt-to-equity conversion (4,280,340 Class A shares issued November 25, 2025) reduced the formal notes payable balance but shifted that value entirely into additional paid-in capital with no cash recovery benefit to a liquidating creditor. Third-party loan payable of $400,395 (CNY 2.8M, maturity December 2027) was excluded from the conversion and remains a face-value obligation. Operating cash flow was positive $254,539 for the nine-month period (vs. negative $567,444 in the prior comparable period), driven by a large increase in accounts payable/accrued expenses (+$238,545) and ROU amortization ($297,416 non-cash), partially offset by inventory build ($101,884). Financing consisted entirely of $460,000 related-party advances from Mr. Wan. Revenue is 100% concentrated in a single customer, which is disclosed but not separately XBRL-tagged by counterparty. Filing discloses disclosed material weakness in internal controls (lack of US GAAP knowledge, segregation of duties).
▼ Community Notes