AVAI Bio, Inc. (formerly Avant Technologies Inc.) presents a deeply negative liquidation posture as of December 31, 2025. Total assets of $172,912 are overwhelmingly composed of intangible assets ($112,060 net book value) and cash ($50,402), with negligible PP&E ($1,500 fully depreciated equipment). Under liquidation haircuts, intangibles receive zero recovery, PP&E contributes nothing, and cash recovers at par, yielding gross liquidation proceeds of approximately $61,000 (cash $50,402 plus prepaid $10,450 at roughly 80-90% = ~$59,000-61,000 total). Against total liabilities of $2,967,398 — all classified current — the shortfall to equity is approximately negative $2.9 million, consistent with the MFFAIS CLV/LLV/OLV of -$2.92 million. The entire liability stack is current: accounts payable $1.4 million, convertible notes payable $320,000, a $550,000 notes payable (loan payable drawn in the nine-month period), related-party loans aggregating roughly $573,000 (Tunevic $114,328, Racius $128,563, IGOR 1 CORP $293,553, Mehrabian $30,000, Seiranova $7,000), subsidiary advances $124,590, and other current liabilities $698,034. No long-term liabilities exist; all debt is demand or near-term. The working capital deficit widened from $1.70 million at March 31, 2025 to $2.91 million at December 31, 2025, a $1.21 million deterioration in nine months driven by $514,133 in accounts payable accumulation and a $550,000 new loan payable. The company generated zero revenue in both comparative periods and burned $959,017 in operating cash during the nine months ended December 31, 2025, funded almost entirely by financing inflows of $928,366. Two new joint ventures (Klothonova LLC and Insulinova LLC) were formed in the period with AVAI committed to fund up to $1.5 million each over 18 months — these contingent capital commitments are disclosed in MD&A and Note 1 but are not separately tagged in XBRL, and no amounts have been accrued on the balance sheet as of the reporting date. Accumulated deficit reached $5.61 million, up from $4.12 million at March 31, 2025. Going concern qualification is explicit. Recovery to equity under any liquidation scenario is strongly negative.
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