Bridgeline Digital, Inc. (BLIN) is a micro-cap SaaS marketing technology company with a September 30 fiscal year end. The period covered is the six months ended March 31, 2026 (Q2 FY2026). MFFAIS liquidation estimates as of this period end are: cash liquidation value (CLV) of -$4.7M, liquid liquidation value (LLV) of -$3.2M, and operating liquidation value (OLV) of -$3.2M. All three measures are negative, confirming that under a liquidation scenario, equity holders receive nothing after liabilities are settled at face value. The asset base is dominated by intangibles and goodwill, which receive a 0% recovery haircut under the liquidation lens, and deferred revenue on the liability side must be settled or unwound without cash consideration. The filing does not separately provide a consolidated balance sheet in the truncated filing body provided, so precise line-item values for cash, AR, goodwill, intangibles, total debt, and deferred revenue are not directly quoted from the current period balance sheet. However, the MD&A and notes contain sufficient context to characterize recovery posture. Cash burn from operations was only $(79)K for the six months ended March 31, 2026, improved materially from $(0.2)M in the comparable prior period, suggesting the cash drain on liquidatable assets is slowing. Total debt obligations per MD&A are approximately $0.2M with $0.1M current, which is a modest secured liability position relative to the overall negative equity recovery. The most significant liability additions this period are operating lease obligations. The company entered a new Garden City, NY lease commencing December 1, 2025 at $7K/month through March 2031, and subsequently expanded that space effective April 1, 2026 at an additional $15K/month through March 2031 (a subsequent event). Total gross operating lease commitments at March 31, 2026 are $576K with a present value of $456K. The weighted average discount rate is 10.9% and weighted average remaining term is 4.3 years. These lease liabilities do not extinguish on windup and must be settled at face value, adding to the already-negative recovery stack. Sublease receipts of $132K offset gross commitments to a net $444K. Goodwill and intangibles receive 0% recovery; the company discloses ongoing amortization of intangibles at approximately $183K/quarter ($366K for the six months), which reduces the intangible asset base but does not create recoverable value. No goodwill impairment was taken this period. Warrant liabilities are carried at fair value (Level 3, Monte Carlo model) and generated a $95K gain for the six months ended March 31, 2026; in liquidation these would be settled at their mark-to-market fair value as a liability claim. The filing discusses goodwill and intangible asset carrying values, deferred revenue, and warrant liabilities in MD&A and notes but does not separately tag balance sheet totals for cash, AR, goodwill, or total intangibles in the XBRL TAG_CONTEXT provided, which is empty. Accordingly, no XBRL-tagged balance sheet values can be cited. The negative liquidation values are structurally driven by the intangible-heavy asset base and face-value liability treatment of leases, deferred revenue, and warrant liabilities. No material change in recovery posture is evident versus the prior quarter (Q1 FY2026, period ended December 31, 2025), as the lease stack and loss trajectory are broadly consistent.
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