Dynamix Corporation (ETHM) is a Cayman Islands blank check SPAC incorporated June 13, 2024, with a mandatory liquidation deadline of November 22, 2026 if no business combination closes. The company's auditor (WithumSmith+Brown) issued a going concern qualification in the 10-K for the year ended December 31, 2025. Under the liquidation lens, the recovery picture for non-redeemable equity is deeply negative and structurally unavoidable given the SPAC architecture. The dominant asset is $173.4M held in the Trust Account, but that balance is dollar-for-dollar encumbered by the $173.4M redemption obligation to Class A public shareholders (16,600,000 shares at $10.45 redemption price). This asset and corresponding mezzanine liability cancel out entirely, leaving the residual claim for non-redeemable equity holders dependent solely on assets outside the trust. Outside-trust assets as of December 31, 2025 consist of $224K cash and $73K in prepaid expenses, totaling $296K in current assets plus $731 in long-term prepaid insurance. Against these, total liabilities outside the trust stack to $27.3M: $3.7M in accounts payable and accrued expenses (up from $208K at December 31, 2024, an approximately 17x increase driven by deal costs and deferred professional fees), $17.0M in warrant liability (up from $2.2M, a $14.9M mark-to-market increase driven by public warrant price appreciation), and $6.6M in deferred underwriting fee. The $6.6M deferred underwriting fee is partially mitigated by a July 2025 letter agreement under which underwriters agreed to accept $500K cash at closing in lieu of the full deferred fee, contingent on Business Combination closing — but the $6.6M remains on balance sheet at face value as of period end, consistent with liquidation lens treatment. The warrant liability at $17.0M represents a non-cash mark-to-market obligation that would extinguish at zero in a liquidation scenario (warrants are out-of-the-money relative to trust per-share value and would expire worthless), but under the liquidation lens as defined here, no haircut is applied to the liability side. MFFAIS CLV/LLV/OLV all report approximately -$3.5M, consistent with the filing math: outside-trust net assets of roughly $296K minus the non-trust, non-warrant, non-deferred-fee payables of approximately $3.7M yields a working capital deficit of approximately -$3.4M, which management confirms. Total shareholders' deficit widened from -$7.6M at December 31, 2024 to -$27.1M at December 31, 2025, driven primarily by the $14.9M warrant fair value increase and $6.2M of accretion of redeemable shares to redemption value. The company withdrew $714,928 from trust for working capital during 2025. As of filing, $482K outside-trust cash was reported at September 30, 2025 (prior 10-Q), declining to $224K by December 31, 2025. The Business Combination Agreement with The Ether Machine, Inc. was executed July 21, 2025; closing has not occurred as of the 10-K filing date of March 6, 2026. The filing does not separately tag the $500K reduced underwriting fee contingency or the approximately $1.0M in deferred creditor fees mentioned in MD&A in XBRL.
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