Chilean Cobalt Corp. (COBA) is a pre-revenue cobalt-copper exploration company operating in northern Chile via its wholly-owned subsidiary Baltum Mineria SpA. Under a liquidation lens as of December 31, 2025, recovery to equity is marginally positive on paper but precarious. Total assets of $2.85M are dominated by cash of $2.77M (recoverable at 100%), with $72K in prepaid expenses (partial recovery) and $2.96K in net PP&E (minimal liquidation value). Total liabilities are only $50K, all current, consisting of accounts payable, accrued liabilities, and professional fees. Book stockholders' equity is $2.80M, and applying the liquidation lens produces a recovery estimate of roughly $2.77M to $2.80M, slightly below book given minor prepaid and PP&E haircuts. The MFFAIS-reported liquidation value of $5.49M appears inconsistent with balance sheet data and likely reflects an earlier period or a different methodology; the TAG_CONTEXT supports assets of $2.85M and equity of $2.80M. The company has zero revenue, a consolidated net loss of $3.26M for 2025 (up from $883K in 2024), and negative operating cash flow of $1.15M. Cash increased $2.44M year-over-year, driven by $2.75M in common stock issuance and $831K from preferred stock, partially offset by operating burn. The dramatic loss expansion in 2025 was driven by a $1.88M asset impairment charge recorded in Q3 2025 on acquired El Cofre mining concessions (deemed impractical to independently value), plus $227K in stock-based compensation, $82K in exploration expense, and $1.32M in G&A. The NOL carryforward stands at $6.9M with a full valuation allowance. Post-period disclosures include a binding earn-in agreement with NeoRe SpA (related to 5% stockholder Madesal SpA) requiring up to $3M in contributions, and a $200K consortium commitment to a CORFO-funded R&D grant. These post-period commitments are not on the balance sheet but represent contingent cash outflows. The filing discusses the $1.88M impairment charge in MD&A but the underlying mining concession asset value was fully written off rather than carried on the balance sheet after impairment; the XBRL tag AssetImpairmentCharges confirms $1.88M. Material weaknesses in internal controls persist: lack of segregation of duties and insufficient ICFR. Going concern opinion is in effect. Disclosure controls were assessed as not effective.
▼ Community Notes