Edap Tms Sa Liquidation Value

EDAP TMS SA (EDAP) presents a negative liquidation recovery posture as of March 31, 2026. Total assets of $72.1M against total liabilities of $62.0M yields book equity of $10.1M, but liquidation haircuts eliminate this cushion and generate a meaningful deficit to equity. Applying standard recovery rates: cash of $15.0M recovers at 100% ($15.0M); net accounts receivable of $19.7M current plus $1.0M noncurrent recovers at 90-95% (~$18.7M); inventory net of $13.3M recovers at 60% ($8.0M); PP&E and finance lease ROU of $10.2M recovers at 50-70% (~$5.1-7.1M); operating lease ROU of $2.8M recovers at 0% under liquidation (obligation survives); intangibles net of $1.7M and goodwill of $2.8M recover at 0%; deferred tax assets of $1.1M recover at 0%; other current assets of $1.7M recover at 50% (~$0.9M). Estimated gross liquidation asset pool: approximately $48-50M. Against this, total liabilities of $62.0M stand at face value, inclusive of long-term debt of $17.6M noncurrent and $1.5M current (EIB Finance Contract, Tranche A drawn), short-term borrowings of $5.2M, deferred revenue current $7.8M and noncurrent $1.1M (service obligations do not extinguish on windup), operating lease liabilities $0.9M current and $1.9M noncurrent, finance lease liabilities $0.7M combined, pension obligation $2.3M (defined benefit plan, survives windup), accrued payroll taxes $2.2M, and other current liabilities $5.7M. The shortfall to equity under liquidation is approximately $12-14M, consistent with the MFFAIS CLV of negative $42.4M at the most conservative cut and OLV of negative $9.5M at the most optimistic. A material subsequent event—the April 1, 2026 draw of Tranche B from EIB of EUR 12.0M (approximately $13.3M at prevailing rates), disbursed April 20, 2026—adds approximately $13-14M of additional senior secured debt to the liability stack post-period, further widening the liquidation deficit. The filing discusses the Tranche B EIB borrowing extensively in MD&A and Note 19 but the debt instrument amount is tagged only via a custom XBRL tag (edap:DebtInstrumentAmountRequestedForDisbursement) not included in TAG_CONTEXT; accordingly it is noted here rather than in tag_insights. Cash burned $5.4M in Q1 2026 (operating outflow $3.0M, investing $0.8M, financing $1.4M, FX $0.3M), reducing the single most liquid asset from $20.5M to $15.0M QoQ. Management acknowledges going concern uncertainty in the liquidity section if Tranche B and other financing measures are insufficient. The EIB warrant fair value change ($1.3M in Q1 2026 vs. immaterial in Q1 2025) introduces a recurring non-cash charge that inflates net loss relative to operating cash burn but does not affect liquidation liability quantum directly. G&A jumped 58.5% YoY driven by domestic filer transition costs, accelerating the operating cash consumption rate.