C2 Blockchain, Inc. (CBLO) is a development-stage blockchain infrastructure company with a December 31, 2025 balance sheet that shows deeply negative liquidation recovery for equity. Total assets of $659,713 are overwhelmingly composed of non-cash, high-haircut items: $597,465 tagged as OtherIntangibleAssetsNet representing DOG Coin holdings (a Bitcoin-native Runes protocol token), and $58,570 in a company vehicle (not separately XBRL-tagged as PP&E). Under liquidation-lens haircuts, cryptocurrency holdings classified as intangibles receive a 0% recovery rate; the vehicle as PP&E receives 50-70%. Current assets of $3,677 (cash $1,177, prepaid $2,500) are near-trivially small. Applying haircuts: cash recovers $1,177, prepaid recovers $0 (no marketplace value on windup), vehicle recovers approximately $29,000-$41,000 at 50-70%, and crypto recovers $0. Gross liquidation asset pool is approximately $30,000-$42,000. Against this, total liabilities at face value are $1,100,628, consisting of accrued liabilities $85,000 (salary owed to sole officer), convertible loans net of discount $137,313, derivative liability $852,645, and vehicle loan $25,670. Liquidation deficit to equity is approximately ($1,059,000) to ($1,071,000), materially worse than the reported stockholders' deficit of ($440,915), which includes $597,465 of crypto marked at fair value but subject to 0% intangible recovery haircut. The derivative liability of $852,645 - established entirely this period from two convertible note transactions with Quick Capital LLC and associated tainted warrants - is the single largest liability and dominates the recovery shortfall. The derivative is a Level 3 Black-Scholes valuation using 335-346% volatility; at face value in liquidation it remains a full obligation. Compared to the prior filing (September 30, 2025), total liabilities increased from $1,863,333 (Q1 FY2026) to $1,100,628 at December 31, 2025, reflecting a large QoQ decrease driven by derivative fair value remeasurement downward (from $1,597,514 to $852,645 - a gain of $744,870 in Q2 but still a net loss of $189,009 for the six-month period). Cryptocurrency dropped from $1,082,426 to $597,465 as fair value declined by $1,126,053. The company has $1,177 in cash, $44 in six-month revenue, and a going concern qualification. Subsequent event: 45,000,000 shares issued post-period to a related-party entity controlled by the sole officer, and a $25,000 additional convertible note. The vehicle loan is not classified as long-term despite a payoff date of October 2031 - the filing presents it entirely as current.
▼ Community Notes