GAMG (formerly Kenilworth Systems Corporation) underwent a structural transformation in 2025 via two stock-for-stock acquisitions: DC Rental Portfolio Corp. (accounted for as a reverse merger under ASC 805-40, with DC Rental as accounting acquirer) and Bella Rio Marketing Agency, Inc. The balance sheet expanded from $46K total assets at 12/31/2024 to $10.2M at 12/31/2025, driven entirely by the DC Rental transaction. Under a liquidation lens, this expansion is largely illusory for equity recovery purposes: the dominant asset is $7.6M net PP&E (residential real estate in DC), which at a 50-70% haircut yields roughly $3.8M-$5.3M liquidation value. Against that sits $9.99M in mortgage debt carried under a company-specific tag (kens:MortgagePayableNetCurrent) classified as other noncurrent liabilities but described in Note 7 as secured by the underlying real estate. At face value, that single liability absorbs the entire PP&E recovery and then some. The $1.6M escrow holdback (construction, interest, insurance, and RE tax reserves held contractually per the DC Rental financing) is also a new non-current asset this period; recovery at close to par is plausible if the escrow is genuinely ring-fenced, but it is a custom XBRL tag with no independent third-party confirmation of enforceability in this filing. Deferred financing costs of $267K receive zero recovery under liquidation accounting. Total liabilities are $10.19M against total assets of $10.20M on a GAAP basis, yielding reported book equity of $17K. On a liquidation basis, applying standard haircuts to all assets and holding liabilities at face, recovery to equity is deeply negative—consistent with the MFFAIS CLV/LLV/OLV of approximately negative $147K even before haircuts are applied to the illiquid real estate and escrow. The accumulated deficit stands at $39.9M, up $154K YoY. Auditor (LAO Professionals, Lagos, Nigeria, PCAOB ID 7057) issued a going concern qualification. The filing also discloses that Topic 842 (ASC leases) has not yet been adopted despite being effective for private companies well before 2025; the related party office lease ($150/month, 5-year term with Key Realty, Inc., controlled by the President/Director) is discussed in MD&A but no ROU asset or lease liability appears on the balance sheet or in XBRL tags. Filing discusses lease obligation in Item 13 but does not separately tag it in XBRL.
▼ Community Notes