Graphjet Technology (GTIJF) presents deeply negative liquidation recovery to equity at September 30, 2025. MFFAIS reports CLV of approximately -$10.2M, consistent with the balance sheet: total assets of $4.4M against total liabilities of $15.3M, yielding reported stockholders' equity deficit of -$10.9M. Under liquidation haircuts, recovery deteriorates further. Cash of $7,354 recovers at par. Accounts receivable of $5,602 recovers ~90-95% (~$5,300). Inventory of $38,877 recovers at 60% (~$23,300). PP&E net book value of $1.8M (gross $2.0M) recovers at 50-70%; at 60%, that is ~$1.1M. The $2.34M prepaid deposit for a factory building acquisition (non-current, classified as such because completion is expected beyond 12 months from period end) carries meaningful recovery uncertainty — it represents an advance under a sale and purchase agreement signed August 19, 2025, and at liquidation could be partially or fully unrecoverable depending on contractual terms and vendor solvency. Intangibles of $2,613 receive zero recovery. Right-of-use asset of $16,975 nets against the corresponding lease liability and contributes nothing. On the liability side, all obligations remain at face: current liabilities of $10.25M include payables to prior shareholders of $3.0M (Lim Hooi Beng/Aw Jeen Rong), $3.45M accrued bonus provision (Lim Hooi Beng), $1.3M shareholder loan (Lee Ping Wei at 15% p.a., due on demand), $0.47M other current liabilities, $1.89M other payables/accruals, and $0.55M third-party loans. Non-current liabilities of $5.0M include $3.7M long-term payable to Lim Hooi Beng (tranche 2 of debt settlement, due 24 months from April 2025) and $1.3M compensation payable to Liu Yu. A remaining capital commitment of approximately $5.0M for the factory building acquisition is disclosed in Note 21 but is not separately XBRL-tagged as a contingent liability on the face; it is discussed in commitments and contingencies. The $19.2M non-cash share compensation charge (Black-Scholes warrant fair value to Aiden Lee Ping Wei) inflated the FY2025 operating loss to $22.5M but does not affect balance-sheet liquidity directly — the warrant is equity-classified. The company was delisted from Nasdaq in November 2025 and now trades OTC as GTIJF. Subsequent to period end, a new $7M secured loan from International Liquidity LLC (pledging 3.16M shares) is disclosed but not on the balance sheet. Total accumulated deficit is -$42.2M. Recovery to equity in liquidation is materially negative under any plausible asset-haircut scenario.
▼ Community Notes