Firefly Neuroscience, Inc. (AIFF) is a pre-profitability neurotechnology company with a balance sheet that shows deeply negative liquidation recovery to equity. As of December 31, 2025 (10-K filing period), total assets are $10.5M against total liabilities of $2.8M, producing GAAP stockholders' equity of $7.6M. Under liquidation haircuts, the picture is materially worse. Cash of $2.7M recovers at 100% ($2.7M). Net accounts receivable of $194K recovers at 90-95% (~$180-185K). Inventory of $108K raw materials recovers at 60% (~$65K). PP&E net $146K recovers at 50-70% (~$73-102K). Intangibles of $861K net (finite-lived, acquired in Evoke combination) recover at 0%. Goodwill of $5.2M recovers at 0%. Non-current prepaid/other assets of $268K recovers at 0-20% at best. Total liquidation asset recovery approximates $3.1-3.2M, against total liabilities held at face value of $2.84M, yielding a marginal positive recovery to equity of approximately $260K-$360K. MFFAIS CLV of $2.68M and OLV of $2.98M are broadly consistent with this framing. The asset base is dominated by zero-recovery intangibles and goodwill ($6.0M combined, 57% of total assets), leaving very little tangible cushion. The accumulated deficit stands at $111.6M, and FY2025 net loss was $19.9M, including a $9.4M unrealized loss on derivatives and a $1.4M loss on debt extinguishment, both non-cash but reflecting warrant and convertible note complexity. Key liability items are accounts payable $1.35M, accrued liabilities, contingent consideration of $478K current (Evoke earnout), and deferred revenue of $249K. Total deferred tax assets gross $26.2M are fully offset by a $26.0M valuation allowance — zero net DTA on the balance sheet, consistent with no realistic tax asset recovery. Post-period, the Company raised $2.25M in a March 2026 private placement (1.5M units at $1.50 each), which would modestly improve the cash recovery posture; this is not reflected in the December 31, 2025 balance sheet. The filing discloses ongoing going concern risk implicitly through the cash burn rate ($8.2M operating cash outflow FY2025) and the reliance on equity capital markets. The Evoke Neuroscience acquisition (closed Q2 2025) added goodwill ($5.2M) and intangibles ($2.1M gross) to the balance sheet, both of which contribute zero to liquidation value and are the primary reason recovery remains marginal rather than clearly positive.
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