DriveItAway Holdings, Inc. (DWAY) presents a deeply negative liquidation posture as of December 31, 2025. Applying standard recovery haircuts, the asset side yields minimal value: cash of $90K (100% recovery), AR of $17K (~90% recovery, ~$15K), and PP&E of $439K (vehicles at 50-70% recovery, ~$220-$307K). Intangibles and deferred offering costs of $200K recover at zero. Total gross liquidation asset value approximates $325-$415K. Against this, total liabilities stand at $8.19M at face value, producing an equity recovery deficit in the range of negative $7.8M to negative $7.9M. MFFAIS reports CLV/LLV/OLV at approximately negative $7.97-$7.99M, consistent with this estimate. The working capital deficiency as reported is $(7.97M) at December 31, 2025, modestly improved from $(8.99M) at September 30, 2025, driven primarily by a $981K gain on change in fair value of derivative liabilities reducing current liabilities rather than any operational improvement. The derivative liability balance decreased from $4.45M at September 30, 2025 to $3.47M at December 31, 2025 as a non-cash mark-to-market gain; this does not represent cash recovery. The liability stack is dominated by: (1) derivative liabilities of $3.47M (all current, Level 3 fair value); (2) AJB convertible notes payable principal of $1.84M plus $652K accrued interest; (3) secured convertible notes of $450K in default; (4) accounts payable and accrued liabilities of $1.70M; and (5) promissory notes of $94.8K. Multiple debt instruments are in default. On January 22, 2026, the Company refinanced seven AJB notes into a new $1.15M note due July 22, 2026 with a $230K OID, extending but not extinguishing the obligation. Collateral securing the $637K promissory note line of credit has a net book value of $236K, below gross borrowings. The SBA Loan of $114K matures June 2050 and would remain at face value on wind-up. Operating cash burn was $(177K) for the quarter. The Company carries 110.15M warrants outstanding with nominal exercise prices, virtually all of which are derivatives; the filing confirms equity environment remains 'tainted' under ASC 815, with no prospect of warrant-to-equity conversion providing balance sheet relief. Accumulated deficit is $(9.91M). Going concern doubt is explicitly stated by auditors and management. The prior filing (10-K/A for FY ended September 30, 2025) confirmed accumulated deficit of $(10.46M) at September 30, 2025 and working capital deficit of $(8.99M); the sequential improvement to $(9.91M) accumulated deficit and $(7.97M) working capital deficit reflects the non-cash derivative fair value gain rather than operational recovery. Filing discusses deferred financing costs of $200K related to warrant issuances in MD&A but the treatment as an asset under ASC 470-20-25-2 exception is a going-concern accounting posture that liquidation analysis haircuts to zero.
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