Earth Science Tech, Inc. Liquidation Value

Earth Science Tech, Inc. (ETST) is a Florida-domiciled holding company operating compounding pharmacies (RxCompound, Mister Meds), telemedicine platforms (Peaks, DOConsultations), a brick-and-mortar health clinic (Villas), real estate/investment management (Avenvi), and a 75% interest in MagneChef. Period end: December 31, 2025 (Q3 FY2026, nine months ended). Prior period compared: September 30, 2025 (Q2 FY2026).

Under the liquidation lens, the recovery posture is modestly positive in aggregate book equity ($5.8M stated) but becomes negative once standard haircuts are applied. Rough liquidation math: Cash $416K (100% = $416K); AR $306K (90% = $275K); Equity investments at fair value $1.13M (Level 1, 90% = $1.02M, reflecting execution risk); Inventory $1.09M (60% = $653K); PP&E net $1.89M (60% = $1.13M, mix of land, building, land improvements, furniture/equipment); ROU asset $139K (0%); Intangibles net $378K (0%); Goodwill $2.65M (0%); Deposits/Prepaid ~$97K (50% = $49K). Estimated gross liquidation proceeds approximately $3.54M. Total liabilities at face: $2.29M (includes $140K operating lease obligations, $39K equipment loan, $1.09M AP, $1.02M accrued expenses). Net liquidation recovery to equity approximately +$1.25M before winding costs, transaction friction, and any priority claims. MFFAIS-reported CLV of -$1.86M reflects a more conservative asset haircut methodology; the difference is largely attributable to treatment of the equity investment portfolio and PP&E.

Key drivers of recovery posture: (1) Goodwill of $2.65M and intangibles net $378K carry zero liquidation value — together they represent 37% of total assets and are the primary drag. (2) The Level 1 equity investment portfolio ($1.13M) is the most liquid non-cash asset and is realizable near par minus execution costs. (3) Liability stack is relatively light and short-duration — total liabilities decreased $929K QoQ from $3.22M (March 31, 2025) to $2.29M at December 31, 2025, driven by a $1.4M reduction in accrued officer compensation from $1.81M to $416K. (4) Inventory roughly doubled QoQ from $504K to $1.09M, increasing the haircut drag. (5) Goodwill increased to $2.65M due to April 1, 2025 acquisitions of Las Villas/DOConsultations ($118K goodwill) and Magnefuse ($228K goodwill), plus a BBQraft trademark acquisition ($173K intangibles) subsequently sold back January 1, 2026 per Note 13. (6) Operating cash flow declined to $1.06M for the nine months vs $2.38M in the comparable prior year period, driven by inventory build ($518K cash use), AR increase ($177K), and working capital shifts. (7) The $10M share repurchase program (Avenvi-managed) is an ongoing cash commitment not separately reflected as a contingent liability in the balance sheet.