AquaBounty Technologies (AQB) presents a deeply negative liquidation posture as of March 31, 2026. Total assets of $10.2 million are dominated by $9.6 million classified as assets of discontinued operations (the Ohio Farm Project subsidiary), which carry material recovery uncertainty at any haircut rate. Liquid assets consist of $441 thousand in cash (100% recovery) and $158 thousand in prepaid/other current assets (minimal recovery value). Applying standard liquidation haircuts, gross asset recovery is unlikely to exceed $1 million from continuing-operations assets; the Ohio Farm Project assets would require a negotiated sale at uncertain pricing to generate meaningful proceeds. Against this, total liabilities stand at $12.4 million at face value, yielding a liquidation deficit consistent with MFFAIS's reported CLV/LLV/OLV of negative $11.5 million. The liability stack includes $3.8 million in long-term debt (Senior Notes, net of $518 thousand deferred financing costs, so gross principal $4.0 million) bearing 18% per annum PIK interest with an 18-month maturity from October 2025 closing, $8.6 million in current liabilities of which $7.4 million are liabilities of discontinued operations, and $923 thousand in accrued employee liabilities. Stockholders' equity is negative $2.1 million on a book basis; on a liquidation basis equity recovery is zero. Since the prior filing (10-K for year ended December 31, 2025), the key changes are: (1) the Ohio Farm Project was formally designated as a discontinued operation with $9.6 million in assets and $7.4 million in associated liabilities reclassified; (2) the Senior Notes balance increased from $3.49 million to $3.79 million as PIK interest accretes at 18%; (3) cash declined from approximately $502 thousand to $441 thousand despite $960 thousand in equity proceeds from a February 2026 common stock offering, reflecting $1.02 million cash burn in operating activities; (4) accumulated deficit reached $389.5 million. Post-period, on April 7, 2026, the company exchanged the full $4.0 million Senior Notes principal plus $316 thousand accrued interest for Series A Convertible Preferred Stock, which introduces a senior liquidation preference ahead of common equity — further subordinating common equity recovery. Filing discusses the Ohio Farm Project's net asset value and potential sale in MD&A but does not separately XBRL-tag the components of discontinued operation assets and liabilities at a granular level (e.g., PP&E vs. other assets within the disposal group). Going concern qualification is explicit. Absent a sale of the Ohio subsidiary at or above book value, equity recovery in liquidation is zero.
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