AN2 Therapeutics, Inc. Liquidation Value

AN2 Therapeutics, Inc. (ANTX) is a pre-revenue clinical-stage biopharmaceutical company with zero approved products. Under a liquidation lens, recovery to equity is driven almost entirely by the cash and short-term investment balance on hand, as all other assets — primarily in-licensed intellectual property, prepaid CRO expenses, and minor PP&E — carry zero to negligible liquidation value. The MFFAIS-reported liquidation value (CLV/LLV/OLV) stands at $11.2 million as of the March 31, 2026 period end, which is the practical ceiling on equity recovery absent a strategic transaction premium.

The current filing (10-Q for Q1 2026) provides no XBRL tag data in the TAG_CONTEXT input, preventing direct line-item reconciliation from structured data. However, narrative disclosures establish the following material balance-sheet context: (1) A private placement closed March 10, 2026, raising gross proceeds of $40.0 million via 8.2 million common shares at $2.85/share and pre-funded warrants for 5.8 million additional shares at ~$2.85/warrant. This materially increased the cash position relative to the December 31, 2025 year-end balance. (2) An ATM facility with Jefferies was established in April 2026 for up to $80.0 million in common stock sales — a further dilution and liquidity mechanism but not a balance-sheet change within the Q1 period. (3) As of December 31, 2025 (per prior 10-K), the company carried approximately $127.4 million federal and $126.5 million state NOL carryforwards, fully offset by a valuation allowance — no deferred tax asset recoverable in liquidation. (4) The prior 10-K disclosed a 50% workforce reduction in August 2024, with restructuring charges of $2.2 million fully paid by year-end 2024; no residual restructuring liability exists on the liability stack. (5) The company has no long-term debt, no pension obligations, and no disclosed production commitments that would materially expand the face-value liability stack beyond current accrued liabilities and accounts payable. (6) Pre-funded warrants outstanding for approximately 8.7 million shares represent dilutive equity claims but no balance-sheet liability. (7) All intellectual property is in-licensed (primarily from Anacor/Pfizer); zero liquidation value is assigned under standard haircut methodology, and license termination risk is explicitly noted in MD&A as a going-concern sensitivity. (8) The filing discusses the March 2026 $40M private placement proceeds extensively in MD&A but the TAG_CONTEXT is empty, so no XBRL-tagged balance sheet values are available to confirm the post-placement cash figure directly from this filing. The net liquidation recovery to equity, per MFFAIS, is approximately $11.2 million, reflecting cash after all face-value liabilities — consistent with a small pre-revenue biotech whose recoverable asset base is essentially restricted to cash equivalents and short-term investments net of operating payables.