C4 Therapeutics (CCCC) is a pre-revenue clinical-stage TPD company with no marketed products and a balance sheet dominated by liquid financial assets and operating lease obligations. Under a liquidation lens as of December 31, 2025, the recovery posture is marginally positive but structurally thin. Total assets of $359.1M are comprised primarily of cash and equivalents ($74.6M, 100% recovery), marketable securities ($222.5M AFS at fair value, effectively 100% given liquid government and corporate instruments with minimal unrealized loss of $59K), restricted cash ($3.4M, 100%), accounts receivable ($2.4M, ~90-95% recovery), and prepaid/other current assets ($7.2M, partial recovery). PP&E net of depreciation is $4.7M (gross $15.5M, $10.8M accumulated depreciation), recoverable at 50-70% haircut yielding roughly $2.4-3.3M. The right-of-use asset of $40.5M receives a zero recovery haircut as an intangible-equivalent contractual right, but critically the corresponding operating lease liability of $60.0M (undiscounted future payments of $71.1M through 2031+) remains at full face value, creating a structural deficit of approximately $19.5M to $20M on the lease stack alone. Total liabilities at face value are $102.5M, anchored by deferred revenue ($28.3M, which extinguishes on wind-up as performance obligations cease), operating lease liability ($60.0M), accrued compensation ($8.7M), and accrued liabilities ($13.3M). Reported stockholders' equity is $256.6M, but this includes $738.7M accumulated deficit. Under liquidation mechanics, adjusted liquid asset recovery approximates: cash $74.6M + AFS securities $222.5M + restricted cash $3.4M + AR $2.3M + prepaid partial $2-3M + PP&E $2.4-3.3M = roughly $307-309M, against $102.5M of liabilities at face. This yields a rough liquidation equity of ~$204-207M, materially below book equity of $256.6M, primarily due to ROU asset write-off. MFFAIS CLV/LLV values of negative $12M and $9.6M appear to reflect a more conservative treatment that nets out deferred revenue as a cash-equivalent offset liability and applies stricter haircuts. The $116.9M October 2025 underwritten offering was the dominant change from the prior period: gross proceeds injected cash into the balance sheet while also issuing 101.2M warrant shares (Class A + Class B at $2.22 exercise) that could yield up to an additional $225M if exercised — currently unexercisable at prevailing share price. The Merck (US) collaboration agreement was terminated late November 2025, eliminating $6M of annual revenue run-rate and extinguishing $6M deferred revenue liability. An ROU asset impairment charge of $10.6M was recorded in 2025 (disclosed in segment reconciliation as reconciling item), reducing carrying value of the ROU asset. Operating lease commitments ($71.1M undiscounted, $60.0M discounted at 5.3%) are the single largest non-cash liability claim on liquidation proceeds. Filing discusses impairment of long-lived assets in MD&A reconciliation but does not separately tag the specific impaired asset or impairment amount in XBRL beyond OperatingLeaseImpairmentLoss at $10.6M.
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