Fabric.AI, Inc. (FABC, formerly StableX Technologies / AYRO) presents a deeply negative liquidation posture at December 31, 2025. Total assets are $11.4M against total liabilities of $1.7M, yielding reported book equity of $3.7M. However, applying liquidation haircuts materially erodes the asset side. Cash and cash equivalents of $5.0M recover at par ($5.0M). Marketable securities (U.S. Treasuries and money market fund) of $3.2M recover near par given Level 1 classification. Restricted cash of $0.1M recovers at par. Crypto assets tagged at fair value of $1.9M (cost $4.1M, unrealized loss $2.2M) are speculative tokens in the stablecoin infrastructure sector; under a forced liquidation scenario, recovery is uncertain and could be materially below carrying value given thin liquidity and token-specific risk. Prepaid and other current assets of $0.95M would recover minimally. Net PP&E and ROU asset are immaterial ($0.2M ROU, minimal PP&E). Intangibles receive zero recovery. The liability stack is modest at $1.7M total, dominated by accounts payable ($0.9M), accrued liabilities ($0.5M), and operating lease obligations ($0.3M). The Series I Convertible Preferred Stock (redeemable, 7% dividend, quarterly installment redemptions through February 2027) is classified as temporary equity at period-end following warrant reclassification events during 2025; the preferred stock carries liquidation preference senior to common, with accreted value embedded in the $5.1M adjustment to additional paid-in capital. The filing discloses the Series I preferred carries a liquidation preference senior to all common stock and junior only to Series H-7 preferred (which appears to have been extinguished via warrant reclassification during 2025). Net pre-haircut liquidation value attributable to common is approximately breakeven to modestly positive, but the crypto asset recovery uncertainty and preferred liquidation claims compress common equity recovery to near zero or negative depending on crypto realizations. The company has $112.9M in federal NOL carryforwards with a full valuation allowance—no tax asset recovery in liquidation. Digital asset treasury strategy adopted Q3 2025 represents a new and speculative capital allocation. Operating cash burn was $7.7M for FY2025; cash and liquid assets at period-end total approximately $9.1M current assets, implying roughly 12-14 months of runway at current burn absent the preferred redemption schedule. The Lithion and Club Car litigation are fully resolved as of period-end. Material weakness in internal controls over financial reporting persists as of the filing date. Filing discusses digital asset holdings and the treasury strategy in MD&A and notes but does not separately break out individual token positions or fair values by token in XBRL; the aggregate crypto asset fair value ($1.95M) and cost ($4.1M) are tagged.
▼ Community Notes