Equillium, Inc. (EQ) is a pre-revenue clinical-stage biopharmaceutical company. Under a liquidation lens as of December 31, 2025, the recovery posture is marginally positive but thin. Total assets of $31.9M are dominated by cash and cash equivalents of $30.3M, which recover at par. The remaining asset base ($1.6M current non-cash, $0.8M PP&E net, $0.7M ROU asset) recovers at modest haircuts. Against total liabilities of only $3.3M (current $2.9M, non-current lease $0.4M), the liquidation value estimate approximates the MFFAIS-reported cash liquidation value of $27.0M, with the primary deficit arising from applying a standard 0% haircut to intangibles (nil here) and the face-value lease liability stack. The operating lease obligations total $0.8M undiscounted ($0.7M present value), expiring February 2027 and January 2028, which do not extinguish on wind-up and reduce recovery by that amount at face. Accumulated deficit stands at $216.2M. Net loss for FY2025 was $22.4M, sharply higher than $7.7M in FY2024, driven primarily by a restructuring in the company's primary asset: on September 30, 2025 Equillium terminated the Biocon license agreement for itolizumab, its lead program, surrendering all rights back to Biocon. This eliminates the primary going-concern intangible asset and any pipeline optionality from the balance sheet—under the liquidation lens this changes nothing (intangibles were already zeroed), but it removes the rationale for a going-concern premium. The company raised $27.9M in a private placement during FY2025 and a further $35.0M in a post-period March 2026 private placement (subsequent event disclosed in Note 15), which substantially replenishes the cash base. Warrants for common stock reserved increased from 1.4M to 32.2M shares year-over-year due to the August 2025 private placement, including 35.1M shares of common stock or pre-funded warrants subject to milestone closing disclosed in the reserved-shares table. The deferred tax asset of $54.9M gross is fully offset by a $54.7M valuation allowance; no deferred tax benefit accrues to the liquidation estate. The filing does not separately tag a going-concern disclosure in XBRL, though the company's operational profile (no revenue, $22.4M annual cash burn) is consistent with a short runway absent the post-period financing.
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