FullNet Communications Inc (FULO) is a micro-cap integrated communications provider (mass notification, colocation, help desk) with a total asset base of $3.40M at December 31, 2023. Under a liquidation lens, the recovery posture is modestly positive but thin. Liquidatable assets consist almost entirely of cash ($3.13M at 100% recovery = $3.13M), with net AR of $823 (gross $209K, allowance $208.7K — effectively zero recovery value), prepaid expenses of $35.7K (marginal), PP&E net of $70.6K (applying 50-70% haircut to gross cost of $1.31M against accumulated depreciation of $1.24M yields roughly $35-49K), goodwill/intangibles of $19.9K (zero recovery under liquidation), and a right-of-use asset of $145.4K (zero recovery — corresponds dollar-for-dollar to the current operating lease liability). Approximate liquidated asset value: ~$3.17-3.18M. Against this, total liabilities of $1.78M must be settled at face: accounts payable $13.7K, accrued liabilities $524.3K (includes amounts owed to officers/directors per MD&A in prior filing), operating lease liability current $145.4K, and deferred revenue $1.10M (tagged as OtherLiabilitiesCurrent — in liquidation this represents a service obligation that would require cash refund or settlement). Long-term operating lease liability is zero at year-end 2023, reclassified fully to current as the lease expires in 2024. Net liquidation recovery to equity is approximately $1.38-1.40M, directionally consistent with MFFAIS CLV/LLV of ~$1.35M. The largest single risk to recovery is the $1.10M deferred revenue balance: this is cash already collected from customers and represents a real obligation that does not extinguish on windup without cash outlay or service delivery. The $524K accrued liabilities line includes officer/director payables that management has agreed not to demand if doing so would jeopardize going concern — in a true wind-up, this agreement likely lapses. Series A preferred stock carries a liquidation preference of $1.00/share plus accrued dividends on 618,257 shares, totaling approximately $618K-$686K ahead of common equity in a liquidation scenario; this preference is disclosed in Note E but is not separately tagged in XBRL, reducing recovery available to common materially. The auditor is BF Borgers CPA PC (PCAOB ID 5041), which was subsequently barred by the SEC/PCAOB in May 2024 — a governance-level concern for audit reliance on this filing. Year-over-year, cash increased $377K, total liabilities were essentially flat (+$6K), and deferred revenue grew $96K. The balance sheet improved modestly from 2022.
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