Blue Line Holdings, Inc. Liquidation Value

Blue Line Holdings, Inc. (BLNH) is a Colorado-incorporated development-stage company incorporated May 2024 with no revenue to date. Its sole operating asset is an exclusive license to distribute CocoLove-branded coconut water in France, for which it issued 200,000 common shares at $0.10 per share ($20,000 non-cash consideration) to licensor Monarch Media. No distribution or marketing activity has commenced as of the filing date.

Under a liquidation lens, equity recovery to common stockholders is deeply negative and deteriorating. Total assets at March 31, 2026 are $16,782, consisting entirely of $7,682 cash (100% recovery = $7,682) and $9,100 in prepaids (recovery near zero: this is the amortizing prepaid interest component tied to promissory notes issued to third-party lenders and will yield no cash in liquidation). The licensing intangible is not separately capitalized on the balance sheet but the economic interest it represents carries zero liquidation value. Total liabilities at face value are $84,197, comprising $25,197 in accounts payable and accrued liabilities and $59,000 in promissory notes (of which $50,000 mature June 30, 2026 and $9,000 are payable on demand). Liquidation value to equity = $7,682 cash - $84,197 liabilities = approximately negative $76,500, consistent with the MFFAIS CLV/LLV/OLV of negative $68,833 (the minor difference reflects timing and prepaid recovery assumption).

Material change versus the prior quarter (December 31, 2025): total liabilities increased from $59,197 (prior filing: $32,622 AP + $50,000 note principal + $9,000 demand notes, net $59k shown on that balance sheet at $50,734 equity deficit) to $84,197, driven entirely by the $59,000 promissory note balance now reflected at current reporting date. The accumulated deficit grew from $163,434 at December 31, 2025 to $180,115 at March 31, 2026, a $16,681 increase from Q3 operating losses. Stockholders' deficit widened from ($50,734) to ($67,415). The company has no PP&E, no inventory, no AR, no long-term assets, and no leases under ASC 842. The $50,000 tranche of promissory notes matures June 30, 2026, creating an imminent refinancing risk on a balance sheet with only $7,682 cash. The filing discloses substantial doubt about going concern. Disclosure controls were assessed as not effective; material weaknesses in segregation of duties remain. The licensing agreement carries a termination right by Monarch Media if royalties paid do not reach $5,000 within each twelve-month period beginning July 2025 — no royalties have been paid as no sales have occurred, placing the license at risk of termination.