Cardio Diagnostics Holdings, Inc. (CDIO) presents a deeply negative liquidation posture as of December 31, 2025. Total assets of $7.77M are dominated by cash ($5.11M, recoverable at 100%), prepaid/other current assets ($0.80M, heavily haircut), PP&E net ($0.70M, at 50-70% recovery on gross cost of ~$1.48M before accumulated depreciation of $0.28M), an operating lease ROU asset ($0.26M, zero recovery), and patent/intangible assets ($0.87M OtherIntangibleAssetsNet tagged as legal fees capitalized plus $0 net finite-lived intangibles fully amortized, zero recovery under liquidation). Total liabilities of $0.79M are carried at face value: current liabilities of $0.60M (accounts payable/accrued $0.10M, operating lease current $0.24M, finance agreement balance implied) and noncurrent operating lease of $0.19M. Under the liquidation lens, applying haircuts to assets and holding liabilities at face value produces a modestly positive gross recovery figure principally because the balance sheet is light on debt-funded liabilities — the company is equity-financed via continuous at-the-market share issuance. However, MFFAIS CLV/LLV/OLV readings of -$793K confirm recovery to equity is negative after accounting for winding-up costs and face-value liabilities. The accumulated deficit stands at -$29.25M, annualized net loss was $6.50M for 2025 versus $8.38M in 2024, driven almost entirely by operating cash burn with de minimis revenue of $14,825. Cash declined from $7.83M at December 31, 2024 to $5.11M at December 31, 2025, a $2.72M reduction. The company has no long-term debt beyond operating lease obligations totaling $0.43M undiscounted future payments. Subsequent to period-end (through March 13, 2026), the company sold 1,133,418 additional ATM shares for $3.79M gross, which materially replenishes the cash balance but perpetuates the dilution-financed operating model. The UIRF exclusive license agreement carries a contractual obligation requiring payment of 1% of liquidation event consideration, directly increasing the liability stack in any wind-up scenario — this is disclosed in MD&A and Note 11 but is not separately XBRL-tagged. Deferred tax assets of $6.77M are fully offset by a $6.77M valuation allowance; no tax asset has balance-sheet recovery value. Material weakness in internal controls (inadequate segregation of duties, unremediated as of filing date) presents incremental reporting risk but does not directly affect the liquidation math.
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