Creative Realities, Inc. Liquidation Value

Creative Realities, Inc. (CREX) presents a deeply negative liquidation posture as of March 31, 2026, consistent with the MFFAIS-derived values: cash liquidation value of -$81.2M, liquid liquidation value of -$62.0M, and operating liquidation value of -$54.5M. The filing body confirms the structural drivers of this deficit without providing a separate TAG_CONTEXT list of XBRL-tagged balance sheet values for this period, preventing tag-level drill-down.

From the narrative and financial tables in the MD&A and notes, the following liquidation-relevant observations are drawn. The Company carries $22.7M in total lease liabilities (present value, per the ASC 842 maturity schedule in Note 15), of which $20.5M is finance lease liability related to the CDM acquisition's Cadillac Fairview and Cominar DOOH media mall agreements. These run through 2029 and represent contractual cash obligations that do not extinguish on winding up; undiscounted future finance lease payments total $23.4M. The finance lease ROU asset is $20.4M, which under a liquidation lens receives a haircut toward zero given it represents the right to operate advertising displays under third-party mall agreements—not a transferable physical asset with independent resale value.

The Company's Term Loan (entered November 2025) generated $1,465 in Q1 2026 interest expense alone, a 356% increase year-over-year, signaling a materially higher debt service burden. Scheduled principal payments in Q1 2026 included $900 on the Term Loan and $197 on a Promissory Note. The revolving credit facility had $12.995M remaining availability as of March 31, 2026, but the revolver balance itself contributes to face-value liability stack.

Goodwill and intangible assets are not separately discussed in the truncated filing body provided, but amortization of intangibles was $1.441M in Q1 2026 versus $1.136M in Q1 2025, confirming a substantial and growing intangible base from the CDM acquisition—these receive a 0% recovery in liquidation. The Company reported a net loss of $7.461M in Q1 2026 (vs. net income of $3.368M in Q1 2025, the latter benefiting from a $4.775M non-recurring contingent consideration gain). Operating loss was $6.206M. Adjusted EBITDA was -$0.494M in Q1 2026 versus +$0.467M in Q1 2025, excluding $1.452M in CDM integration costs and $43K in deal expenses. Cash used in operations was $1.723M in Q1 2026.

The CDM acquisition introduced the dominant structural change: $23.9M of lease liabilities as of December 31, 2025 (up from $0.9M pre-CDM), a large finance lease asset that is operationally dependent, and a fixed-cost obligation structure (MAG payments to Cadillac Fairview and Cominar) that persists independent of revenue performance. The filing does not separately tag balance sheet line items in the XBRL TAG_CONTEXT provided, so all values above are sourced from narrative disclosures in the filing body. Balance sheet goodwill, intangibles net, total debt, and AR balances are discussed in MD&A and note references but not tagged in the XBRL context supplied, so they cannot be quantified at the tag level here.