Fitlife Brands, Inc. Liquidation Value

FitLife Brands (FTLF) presents a balance sheet as of March 31, 2026 that is dominated by the August 2025 leveraged acquisition of Irwin Naturals assets via Section 363 bankruptcy purchase for $42.5M total consideration. Under liquidation lens, the recovery posture is negative to equity. The company's MFFAIS-reported cash liquidation value is -$19.3M, liquid liquidation value is -$10.5M, and operating liquidation value is +$10.8M, confirming that equity recovery depends entirely on going-concern asset values, particularly intangibles and goodwill that receive zero haircut credit in liquidation.

The asset-side problem is structural: the Irwin acquisition purchase price allocation assigned $25.5M to intangible assets and $6.3M to goodwill at closing, representing approximately 75% of the $42.5M consideration. Under liquidation lens, these carry zero recovery value. Tangible assets acquired in Irwin were $7.3M AR, $10.8M inventory, $0.07M PP&E — the only components with meaningful liquidation value. Combined consolidated inventory and AR as of March 31, 2026 (from MD&A: $7.8M AR, working capital $10.8M) are modest relative to total funded debt.

The liability side is the principal driver of negative equity recovery. Total funded debt at March 31, 2026 is $41.6M gross ($37.6M Irwin Term Loan + $4.2M revolving credit), carried at face value in liquidation. The 5-year term loan ($40.6M original) matures August 2030 with quarterly amortization stepping from $1.5M to $2.0M; all-in principal acceleration on wind-up would be $37.6M plus revolver $4.2M, totaling $41.8M. The credit agreement is cross-collateralized by substantially all assets of FTLF and its operating subsidiaries (NDS, iSatori, MP Acquisition, IN Acquisition). An interest rate swap on $18.5M-$20.0M notional (50% of original term loan) at 3.39% fixed, fair value asset of $72K as of March 31, 2026, is de minimis in liquidation context.

From the prior filing (10-K, December 31, 2025), the Irwin acquisition was consummated August 8, 2025, adding roughly $42.5M of enterprise value in one transaction and taking total funded debt from approximately $10.9M (prior term loans retired) to $40.6M term + $10M revolver capacity. This is the single largest change in the recovery posture versus any pre-acquisition period. Working capital declined slightly QoQ ($10.8M vs. $11.5M at December 31, 2025), driven by lower AR. Cash position stated at $1.2M as of March 31, 2026 — minimal liquidity cushion. The filing reports no debt covenant violations as of March 31, 2026 under the 2.75x Senior Funded Debt/EBITDA test and 1.25x Fixed Charge Coverage Ratio.

Noting a significant XBRL tagging gap: the TAG_CONTEXT input is empty — this filer emitted no XBRL tags that were passed to this analysis. All balance sheet data referenced above is drawn from filing narrative, footnotes, and MD&A prose. Specific balance sheet line items including cash, total assets, total liabilities, goodwill, intangibles net, inventory, and accounts receivable as of March 31, 2026 are discussed in MD&A but are not separately provided in TAG_CONTEXT. This limits the ability to cross-reference precise tagged values for recovery calculation.