Free Flow USA, Inc. (FFLO) presents a deeply negative liquidation posture as of March 31, 2026. Total assets stand at $206,239, consisting entirely of current assets: cash $12,847, Other Current Assets net $160,662, and a $32,730 ERTC refund receivable from the IRS. There is no PP&E, no inventory, and no intangible assets on the balance sheet. Against this, total liabilities are $1,381,174, comprising accounts payable of $180,239, an SBA EIDL loan of $500,000, and company-specific Promissory Notes Payable of $700,935. The promissory notes arose from the September 2025 conversion of redeemable preferred shares Series B and C held by the CEO (Sabir Saleem, via Redfield Holdings Ltd.); no repayment date has been set and no interest accrues, but the obligations remain at face value under a liquidation lens. Applying standard liquidation haircuts to assets — cash at 100% ($12,847), the ERTC receivable at ~90% ($29,457), and Other Current Assets at ~90% ($144,596, though the composition is undisclosed and may warrant a steeper haircut) — yields gross recoverable asset value of approximately $187,000 against $1,381,174 of face-value liabilities. Liquidation value to equity is approximately negative $1,194,000, consistent with the MFFAIS CLV/LLV/OLV of negative $148,953 on a cash-only basis and confirming deeply negative recovery. Stockholders' equity deficit per the balance sheet is $(1,174,937). The accumulated deficit is $1,727,899 since inception. The filing discloses a $200,000 subscription receivable for 1,000,000 common shares issued in Q3 2025 for which consideration was received as uncashed checks as of March 31, 2026; management recorded a full provision against collectibility — this asset does not appear on the balance sheet and is not separately XBRL-tagged. The composition of 'Other Current Assets net' ($160,662) is not separately disclosed in the XBRL tags or in the financial statement footnotes; filing does not separately identify the components, which introduces uncertainty in applying any recovery haircut. No prior 10-Q filing was available for direct QoQ comparison; comparison is made against the December 31, 2025 10-K balance sheet. From year-end 2025 to March 31, 2026, total liabilities increased $19,964 (entirely accounts payable), cash increased $1,525, and stockholders' deficit widened $21,110 reflecting the Q1 net loss. The liability stack is unchanged at the long-term level. Going concern doubt is explicitly disclosed. No PP&E, no inventory, no goodwill — the asset base is entirely current and de minimis relative to liabilities.
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