Digital Brand Media & Marketing Group, Inc. Liquidation Value

DBMM presents a deeply negative liquidation posture at February 28, 2026. MFFAIS-computed CLV is negative $8.85M, consistent with the XBRL-tagged data: total assets of $81,756 against total liabilities of $8,971,969, producing book equity of negative $8,890,213. Under liquidation haircuts, asset recovery is trivial — cash of $63,335 recovers at par, AR of $18,166 recovers at roughly 90-95% (~$17K), and prepaid of $255 is negligible. Total identifiable assets net to approximately $81K gross, yielding a post-haircut recovery of roughly $81K against $9.0M in face-value liabilities. Equity recovery is effectively zero; the shortfall to creditors exceeds $8.9M.

The liability stack is the governing constraint. Loans payable total $4.05M (all current), accrued AP and accrued liabilities are $4.44M, accrued interest stands at $2.00M, deferred compensation is $997K, and convertible debt is $293K. Derivative liabilities add $149K. Notably, the filing tags NotesPayable at $4.30M but LoansPayableCurrent at $4.05M — the delta likely reflects accrued original face versus carrying amount; in either case all debt is current. There are no long-term assets and no operating lease liabilities disclosed.

QoQ progression (versus the Q1 FY2026 10-Q for the period ended November 30, 2025): working capital deficiency widened from approximately $8.6M to $9.0M. Operating cash burn was $304K for the six-month period. The company funded operations through $345K of new note issuances, which added to an already unsustainable debt load. Interest expense for the six-month period was $265K on a corpus that generates $86K in semi-annual revenue and a $269K operating loss before financing charges.

The DCIE platform and all related intangible/IP assets carry zero liquidation value under standard haircut methodology. No XBRL-tagged intangible or capitalized software balances appear; the filing discloses DCIE development in MD&A but does not separately tag any capitalized development cost or intangible asset in XBRL. The consulting agreement with Linda Perry ($150K/year, rolling three-year term through September 2028) represents a contractual commitment that would not extinguish on wind-up. The filing discusses accrued compensation and deferred compensation ($997K tagged) but does not separately break out the Perry contract liability in XBRL. A $250K letter of credit is tagged under LettersOfCreditOutstandingAmount — this is a contingent obligation not separately discussed in the narrative and its counterparty/purpose is not disclosed. The accumulated deficit stands at negative $19.79M.