Cabaletta Bio (CABA) is a pre-revenue clinical-stage biopharmaceutical company. Under a liquidation lens as of December 31, 2025, equity recovery is modestly positive but thin relative to total capital deployed. Total assets of $165.1M are dominated by cash and short-term investments: cash of $83.0M (100% recovery) plus available-for-sale debt securities of $133.6M carried at fair value with a negligible $25K unrealized gain (near-100% recovery given high-grade short-duration profile typical of clinical-stage treasuries). Applying standard haircuts, liquid asset recovery approximates $213-216M before liabilities. Total liabilities are $53.0M, the composition of which is critical: current liabilities of $50.2M include finance lease current portion of $20.8M, accrued employee compensation of $9.7M, accounts payable of $6.6M, and operating lease current portion of $3.5M. Non-current liabilities of $2.9M consist entirely of finance lease non-current. The finance lease stack ($23.6M face, comprising a $21.9M payment due in the next 12 months) represents the most consequential liability concentration—these obligations do not extinguish on wind-up and must be satisfied at face. Net of all liabilities at face value, estimated recovery to equity is approximately $160-163M against book stockholders equity of $112.1M. The gap reflects that liquid assets carry at or near par and liabilities are modest relative to the asset base. Accumulated deficit stands at $(517.0M), reflecting cumulative losses since inception; the 2025 net loss was $(167.9M), driven by $142.7M R&D and $29.6M G&A. The company executed a material equity raise in 2025 ($93.6M from common stock issuance) and holds 53.1M warrants outstanding (including 50M pre-funded warrants from the June 2025 offering), which do not affect the liquidation calculus directly but signal meaningful near-term dilution potential on a going-concern basis. Relative to the prior 10-Q period (September 30, 2025), the annual filing shows completion of the June 2025 equity offering as the principal balance-sheet change: cash and investments rose materially, and the finance lease ROU asset and liability increased significantly following the $21.1M ROU asset obtained in exchange for a new operating lease obligation recognized in-period. The valuation allowance increased $47.1M to $157.9M, absorbing gross deferred tax assets of $163.0M—zero deferred tax benefit is recoverable in liquidation. The operating lease liability DTA is offset by a corresponding deferred tax liability for the ROU asset, netting to zero on balance. PP&E net of $1.9M applies a 50-70% recovery haircut yielding $1.0-1.3M incremental. Intangible or IP value from the UPenn/CHOP license, OxB supply agreement, and IASO sublicense is not separately capitalized on the balance sheet and receives zero recovery under the liquidation lens. The Lonza and Cellares manufacturing agreements (disclosed in exhibit index) likely carry committed minimum payments not separately quantified in XBRL—this represents an off-balance-sheet contingent liability the filing does not separately tag in XBRL.
▼ Community Notes