EvoAir Holdings Inc. (EVOH) presents a deeply negative liquidation posture as of February 28, 2026. The MFFAIS-calculated cash liquidation value is approximately negative $4.0M, consistent with the balance sheet math. Applying standard liquidation haircuts confirms this: cash of $46K (100% recovery), net AR of $57K (~90-95% = ~$54K), inventory of $340K (~60% = ~$204K), PP&E net of $251K (~50-60% = ~$125K-$151K), and operating ROU asset of $63K (zero recovery in liquidation). Deferred offering costs of $3.2M (carried as an asset) recover nothing under the intangibles-zero rule. The dominant non-cash asset is net intangibles of $40.3M (patents and trademarks carried at adjusted cost after a $27.5M accumulated impairment), which recover zero in a wind-down. Against these haircut assets of roughly $0.4M-$0.5M stand total liabilities of $4.1M at face value, including $3.3M owed to shareholders (interest-bearing at 3-8%, classified as current), $682K in accounts payable and accruals, and $68K in operating lease obligations. The result is deeply negative equity recovery in any liquidation scenario, consistent with the MFFAIS OLV of negative $3.6M. Compared to the prior quarter (November 30, 2025 10-Q), the liability stack has grown materially: amounts due to shareholders increased from $2.44M (August 31, 2025) to $3.30M (February 28, 2026), a $863K increase in six months, representing the primary funding mechanism for operations. Revenue run-rate is de minimis at $88K for the six months ended February 28, 2026. The company carries a $55.9M accumulated deficit, a full valuation allowance against $55.9M in deferred tax assets, disclosed going concern uncertainty, and multiple material weaknesses in internal controls. Deferred offering costs of $3.2M are carried as an asset against a prospective Nasdaq uplisting that has not yet occurred; filing explicitly notes these would be expensed if the IPO is unsuccessful, which would further deteriorate equity. The $40.3M net intangible balance (patents/trademarks assigned by the founder in 2021 for shares) dominates the balance sheet at approximately 91% of total assets, but carries zero liquidation value. Filing does not separately tag the deferred offering cost write-off scenario risk in XBRL beyond the DeferredCosts line.
▼ Community Notes