Carisma Therapeutics Inc. Liquidation Value

Carisma Therapeutics Inc. (CARM) is in active wind-down as of September 30, 2025. The company has explicitly stated it has no intention of resuming R&D activities and is pursuing orderly liquidation of remaining assets. This is not a going-concern analysis in the traditional sense — management itself has framed this as a liquidation event. The liquidation-value recovery to equity is effectively zero or negative under any reasonable haircut assumption.

Asset side: Total assets of $6.6 million consist almost entirely of current assets ($5.9 million). Cash and equivalents are $2.8 million (100% recovery). Prepaid and other current assets total $3.1 million, which includes a $1.3 million receivable from OrthoCellix for termination fees and expense reimbursement that has NOT been paid and OrthoCellix has not confirmed intention to pay — this is a contested receivable with material collection risk, not a liquid asset at face value. Remaining prepaids ($1.8 million) include prepaid insurance ($1.4 million) and other items with limited liquidation recovery. Property, plant and equipment is reported at $0 net book value — the finance lease was terminated and equipment sold during the period. The operating lease ROU asset of $0.68 million has zero liquidation value. No intangibles are separately stated on the balance sheet; the patent sale to Resolution ($0.5 million) and Moderna amendment ($4.0 million) confirm all monetizable IP has been substantially disposed of during the period.

Liability side at face value: Total liabilities of $7.4 million exceed total assets of $6.6 million, producing negative book equity of $0.87 million before any haircuts. Current liabilities of $6.8 million include accounts payable of $5.6 million, accrued liabilities of $1.1 million, and employee-related liabilities of $0.83 million. Noncurrent liabilities of $0.61 million are the operating lease obligation. Finance lease liabilities have been extinguished.

On a liquidation basis: applying 100% recovery to cash ($2.8 million) and minimal recovery to the contested $1.3 million receivable (low probability of collection given OrthoCellix's non-confirmation), prepaid insurance ($1.4 million, partial recovery at best), and zero to ROU assets — recoverable assets are likely $3.5-4.5 million against $7.4 million of face-value liabilities. This produces negative recovery to equity of approximately $3-4 million, consistent with the MFFAIS CLV/LLV/OLV of negative $4.6 million. Post-period events worsen the picture: CEO severance ($1.0 million) and CSO severance ($0.7 million) are accruing as of October-November 2025 but not yet on the September 30 balance sheet. The $44.98 million deferred revenue balance at December 31, 2024 was fully recognized in Q3 2025 via the Moderna Amendment — this was a non-cash P&L event that generated accounting income of $25.7 million for the nine months but zero incremental cash recovery (the $4.0 million cash was a separate payment). Filing discusses the $4.2 million workforce reduction severance in MD&A but the full accrual detail is embedded in EmployeeRelatedLiabilitiesCurrent ($0.83 million) with the remainder presumably paid. The company has been delisted from Nasdaq as of October 13, 2025. Management explicitly states it is 'unlikely that there will be a meaningful amount of cash available for distribution to stockholders.'