Guided Therapeutics (GTHP) presents deeply negative liquidation recovery at December 31, 2025. Total assets of $1.324M face total liabilities of $7.330M at face value, producing book stockholders' deficit of $(6.006)M before any liquidation haircuts. Applying standard liquidation haircuts worsens this materially: cash of $63K recovers at 100% ($63K); AR of $4K net (after $4K allowance) recovers at ~90% ($4K); inventory net carrying value of $448K (gross $1.266M against $818K reserve) recovers at 60% (~$269K); PP&E net of $16K recovers at 50% ($8K); the ROU asset of $686K receives 0% recovery as a pre-paid occupancy right with no realizable liquidation value; other current assets of $90K and other noncurrent assets of $17K receive 0% recovery given their nature (prepaid/deposits). Intangibles are nil on the balance sheet. Adjusted liquidation asset pool is approximately $344K against $7.330M of liabilities at face value, yielding an estimated liquidation deficit to equity of approximately $(7.0)M, consistent with the MFFAIS CLV of $(7.224)M. The liability stack is dominated by current liabilities of $6.636M, including accounts payable of $2.416M, accrued liabilities of $1.718M (which includes accrued professional fees, bonuses, and other accruals), interest payable of $291K, convertible notes payable current of $347K, notes payable current of $105K, deferred compensation current of $47K, deferred revenue current of $189K, dividends payable current of $195K, and operating lease current of $45K. Related-party short-term borrowings (Faupel $172K, Cartwright $317K) and the current portion of related-party notes ($621K) add further claims. A $1.13M 10% senior unsecured convertible debenture remains in default at 18% default rate. The operating lease obligation of $696K total ($949K undiscounted, $253K discount) does not extinguish on wind-up, adding to the liability stack. Compared to the prior period (10-Q for Q3 2025), the annual filing adds approximately $160K of new related-party debt (Imhoff note), continued accrual on defaulted debenture, and a year of additional accrued executive compensation. Net loss attributable to common stockholders widened to $3.346M for FY2025 vs. $2.591M for FY2024, reflecting $617K of interest expense, $533K net loss on debt extinguishment, and $244K amortization of financing costs. The accumulated deficit reached $(157.1)M. NOL carryforwards of $48.6M are fully reserved with no liquidation value. Filing discusses deferred revenue of $188.6K (unshipped HDMT order) and additional post-period debt issuances (Diagonal Lending $157.6K note, January 2026) and warrant exchange proceeds (~$980K from February 2026 exercises) in subsequent events, neither of which is reflected in the December 31, 2025 balance sheet. Material weaknesses in internal controls — specifically lack of resources to account for complex transactions and deficient Board/Audit Committee oversight of related-party transactions — remain unremediated and affect reliability of financial reporting.
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