Cambium Networks Corp (CMBMF) presents a deeply negative liquidation posture as of December 31, 2025. Total assets of $137.1M face a $173.1M total liability stack, producing negative book equity of approximately $(35.9M) before any liquidation haircuts are applied. Applying standard liquidation haircuts materially worsens this: cash of $11.1M recovers at par; AR gross $43.7M with a $3.4M allowance yields net $40.3M, recoverable at 90-95% (~$36-38M); inventory gross $56.4M against a $28.9M valuation reserve leaves net $27.5M, recoverable at 60% (~$16.5M); PP&E net $3.4M at 50-70% yields ~$1.7-2.4M; capitalized software net $14.4M and operating ROU assets $5.7M recover at 0% under liquidation; goodwill $0.9M at 0%. Total haircutted asset recovery is approximately $66-70M. Against this, total liabilities of $173.1M stay at face value. The estimated net recovery to equity under liquidation is approximately $(103M) to $(107M), consistent with MFFAIS CLV of $(112M). This is a materially insolvent entity on a liquidation basis. The dominant liability driver is $66.4M of long-term debt classified entirely as current (credit agreement in payment default as of June 2025, Bank of America not having accelerated as of the filing date but retaining that right), plus $34.3M in accrued liabilities and $17.8M accounts payable. The debt default is the central risk factor: the Amended Credit Agreement with Bank of America covering a ~$21.5M term loan and $45.0M revolver is in covenant default and payment default (principal and interest ceased June 2025), with the lender having acceleration rights. No waiver has been obtained. Combined credit facility exposure is ~$66.5M, all classified current. Since the Q3 2025 10-Q (prior filing), the annual 10-K confirms the default persisted through December 31, 2025 and into 2026. The company was subsequently delisted from Nasdaq on March 25, 2026 and shares migrated to OTC Expert Market. A February 2025 restructuring added $1.8M in charges (fully paid by year-end), reducing the restructuring liability to zero. Purchase commitments of $110.2M ($99.3M within one year) remain an off-balance-sheet claim that would crystallize in liquidation. Deferred revenue of $22.0M ($9.2M current, $12.8M noncurrent) represents a performance obligation that extinguishes without cash recovery in a wind-down. The company disclosed nine material weaknesses in internal controls over financial reporting covering inventory, revenue, impairment, income taxes, and IT general controls, which introduces reliability uncertainty over several key balance sheet estimates. DTA gross of $64.9M is fully offset by a $60.5M valuation allowance, with net DTA of $4.4M offset against a deferred tax liability of $1.8M; no liquidation recovery on tax assets is expected.
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