Ensysce Biosciences, Inc. Liquidation Value

Ensysce Biosciences (ENSC) is a clinical-stage pharmaceutical company with zero approved products and no product revenue. The liquidation recovery posture as of March 31, 2026 is deeply negative. The MFFAIS-computed liquidation value is approximately -$537,000 across all three metrics (CLV, LLV, OLV), which is consistent with the balance sheet profile visible in the filing narrative: the company held only $0.7 million in cash at period end, carrying obligations that exceed recoverable assets on any haircut basis.

The asset side is dominated by cash ($0.7M, recoverable at 100%) and NIH federal grant receivables — the filing discloses $6.0M in remaining MPAR grant funding as of March 31, 2026, expected to be utilized by May 2027. However, grant receivables are contingent on continued performance and compliance with NIDA reporting requirements; under a liquidation scenario, recoverability would be uncertain and likely zero. All other assets (intangibles, IP, preclinical drug candidates) carry zero liquidation value. The filing does not separately disclose PP&E or inventory balances in the narrative excerpt provided.

On the liability side, the key obligations are: (1) a $0.2M senior secured convertible promissory note held by a board member, subject to a forbearance agreement that expired April 25, 2026 — subsequently converted into 508,614 shares of common stock post-quarter-end; (2) Series B Preferred Stock with 1,405 shares outstanding at period end, carrying a net book value of $3.5M and an aggregate liquidation preference of $1.55M, with a 125%-of-conversion-amount liquidation preference clause that could increase the effective claim; and (3) estimated $17M in open purchase orders and CRO/CMO contractual commitments, which management characterizes as cancellable but which would nonetheless represent material wind-down liabilities in a true liquidation. Operating cash burn was $3.5M for Q1 2026, nearly double the $1.7M burn in Q1 2025, driven by increased Phase 3 PF614 clinical activity.

The going concern disclosure is explicit: without additional capital, cash is sufficient only through late Q2 2026. Post-quarter events include a $2.0M Series B Preferred Stock issuance (April 6, 2026) and conversion of 1,686 preferred shares into 4.9M common shares — the latter accelerating dilution without adding cash. The April 6 closing also increased the Series B stated value from $1,100 to $1,200 per share, increasing the preferred liquidation preference on all outstanding shares. CRO and CMO commitments ($17M disclosed in MD&A but not separately XBRL-tagged) represent the largest off-balance-sheet overhang in a liquidation. Filing discusses the $17M commitment in MD&A but does not separately tag it in XBRL. Equity recovery to common is nil under any plausible liquidation scenario given the preferred liquidation preference stack, the convertible note (now resolved post-period), and the gap between cash and total obligations.