Edgemode, Inc. (EDGM) presents a deeply negative liquidation posture as of December 31, 2025. Total assets of $1.28M face total liabilities of $20.08M, producing reported stockholders' equity of negative $18.81M. Under liquidation haircuts, the asset side deteriorates further: cash of $248K recovers at 100%; prepaid and other current assets of $19K at ~90% yield ~$17K; cryptocurrency assets of $51 are negligible; PP&E net is $0 per the balance sheet. The sole material non-current asset is a construction-in-progress/investment balance ($1.01M residual after the $4.83M impairment charge already taken in the year), which under a 50-70% PP&E haircut yields at best $500-700K. Total liquidation asset recovery is approximately $770-970K. Against this, liabilities at face value total $20.08M, dominated by the $15.42M derivative liability (conversion options and warrants, Level 3 fair value), $1.18M accounts payable and accrued liabilities, $915K current convertible notes payable net of discount, $456K accrued payroll, $303K deferred revenue (Cudo Ventures deposit, refundable at term end — a cash obligation on wind-up), $228K noncurrent deferred revenue, and $35K current notes payable. Liquidation recovery to equity is approximately negative $19.1M to $19.3M, consistent with MFFAIS CLV/LLV/OLV of negative $19.6M. The derivative liability dominates the liability stack: it grew from $1.99M at December 31, 2024 to $15.42M at December 31, 2025, driven by $31.40M establishment of derivative liability on tainted warrants (ASC 815 tainting from variable-rate convertible notes issued throughout 2025), partially offset by a $18.89M mark-to-market gain and $4.03M extinguishment from warrant exercises. The SAPL share exchange, executed April 7, 2025 and now subject to rescission litigation, added assets booked at $3.15M (stock consideration) that were subsequently impaired by $4.83M, leaving no recoverable asset value from that transaction. Post-period, the Company has committed a minimum of $11.15M to the BAIF joint venture (JVA), with $500K already paid and monthly obligations commencing in 2026 — none of this is reflected as a liability in the December 31, 2025 balance sheet. The filing discusses these JVA commitments in MD&A and Note 13 but does not separately tag them in XBRL. Net operating loss carryforwards total $13.8M with a full valuation allowance. Going-concern risk is acute; the Company has $248K cash, no revenue, and a deficit of $65.1M.
▼ Community Notes