ADM Endeavors (ADMQ) is a small promotional products and school uniform manufacturer/retailer operating through its wholly-owned subsidiary Just Right Products, Inc. (JRP). As of December 31, 2025, total assets are $10.88M against total liabilities of $7.28M, producing book equity of $3.60M. Under a liquidation lens, recovery to equity is materially negative. The dominant asset is property and equipment net of $8.66M, which consists overwhelmingly of construction-in-progress (CIP) at $7.38M gross — up from $3.89M at year-end 2024. CIP receives at best a 50-60% haircut in liquidation given its illiquid, incomplete nature; realizable value on the full PP&E stack is likely $4-5M after haircuts. Goodwill of $0.69M is a zero in liquidation. Cash of $0.36M recovers at par. AR of $0.41M recovers at ~90-95%. Inventory of $0.54M recovers at ~60% ($0.32M). Against these haircut assets, liabilities stand at face value: secured notes payable total $5.92M (two construction/real estate notes, one at 5.5% maturing 2032, one new at 8.5% originated March 2025 maturing 2032, combined gross $6.09M before discount); convertible note payable of $0.11M (repeatedly extended, now to October 2026, overdue at balance sheet date with derivative liability of $0.25M attached); accrued liabilities of $0.51M including $0.12M accrued interest and $0.20M credit cards payable; and taxes payable current of $0.15M. Rough liquidation math: haircut assets ~$5.1-5.5M versus face liabilities of $7.28M yields a shortfall of approximately $1.8-2.2M to equity — consistent with MFFAIS CLV of negative $637K on a more generous basis. The MFFAIS OLV of $307K reflects only the operating assets stripped of real estate, which is the cleanest recovery scenario. The large increase in secured debt (from $3.48M to $5.92M, a 70% increase year over year) driven by $2.50M in new note proceeds to fund the CIP building project is the primary change in recovery posture since the prior filing (9/30/2025 10-Q). A subsequent event discloses a $500K revolving credit facility with the CEO (related party), with $382K already drawn as of filing — this incremental liability is not on the December 31 balance sheet but further pressures any liquidation scenario. The company carries material weaknesses in internal controls (no independent directors, inadequate segregation of duties, no written policies). Goodwill of $0.69M is discussed in the narrative but no impairment was taken; given liquidation lens treatment (zero recovery), this directly reduces recoverable assets.
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