CLEV presents a deeply negative liquidation posture with zero realistic recovery to equity. As of January 31, 2026, total assets of $41,943 face total liabilities of $662,730, producing a book stockholders' deficit of ($620,787). Under liquidation haircuts, the asset side deteriorates further: cash of $19,749 recovers at face; inventory of $17,770 at 60% yields ~$10,662; PP&E net of $1,033 at 50-70% yields ~$500-$720; prepaid expenses of $3,391 carry near-zero recovery. Total liquidation asset recovery approximates $31,000-$32,000 against $662,730 in liabilities held at face value, implying a liquidation deficit to equity of approximately ($630,000) to ($632,000). This is consistent with MFFAIS-reported CLV/LLV of ($642,981). The liability stack is dominated by three related-party obligations: advances from Jericho Associates ($378,210, non-interest-bearing, no written agreement, no stated repayment terms), notes payable to stockholders ($194,139, 8%-12% and 7.25% rates, all due on demand), and accrued interest to stockholders ($60,918). All three extinguish at face in a wind-up scenario. The Jericho advances are the single largest liability component at 57% of total liabilities; they are unsecured, undocumented, and currently classified as current. The filing discloses that as of March 23, 2026, cash had declined to approximately $1,200, with management stating operational runway only through April 30, 2026 — a materially worse position than the $19,749 balance at the filing date. Going concern qualification is carried forward. No intangibles, goodwill, or ROU assets are on the balance sheet. The Jericho merger transaction remains pending regulatory approval since 2018 with no resolution timeline; contingent share cancellations by officers are disclosed but have no balance sheet impact in the current period. Material weakness in internal controls remains unremediated. Compared to the prior filing (Q1 FY2026, period ended October 31, 2025), total liabilities increased by $11,584 (from $651,146) while total assets decreased by $4,233 (from $46,176), widening the deficit. The working capital deficit disclosed in the going concern note is ($621,820), essentially equal to total stockholders' deficit given the absence of long-term assets.
▼ Community Notes