Hepion Pharmaceuticals, Inc. (HEPA) as of December 31, 2025 presents a near-total-loss liquidation posture. Total assets of $3.07M consist entirely of current assets: cash of $1.83M (100% recovery = $1.83M) and prepaid expenses of $1.24M (likely 0-10 cents on the dollar in liquidation, as prepaid D&O insurance and similar items have no third-party market). There are no tangible fixed assets, no inventory, and no receivables of note. The sole non-cash, non-prepaid asset is a de minimis amount. Total liabilities of $0.40M include accounts payable of $0.17M, accrued liabilities of $0.08M, a current note payable of $0.05M (D&O insurance financing, last payment January 2026), and a non-current derivative liability of $0.10M (Series A warrant liability classified at fair value). All liabilities are settled at face value in liquidation. Applying the lens: gross liquidation asset recovery of approximately $1.83M to $1.95M (cash plus a small fraction of prepaids) against $0.40M of liabilities at face value yields a residual equity recovery of approximately $1.4M to $1.6M against a reported stockholders equity of $2.67M—a meaningful haircut driven entirely by the illiquid prepaid component. The MFFAIS CLV/LLV/OLV figure of $3.36M appears to reflect the full book value of current assets without applying liquidation haircuts to prepaids; the adjusted recovery figure is materially lower. The company has no operating lease obligations (terminated December 2024, $0 ROU asset and $0 lease liability as of period end), no pension, no debt beyond the D&O insurance note. The $2.9M OID note outstanding at December 31, 2024 was repaid January 23, 2025 from the January 2025 equity offering proceeds, eliminating that prior-period liability drag. The derivative liability (2024 Series A warrants, $103K fair value) and a $600K Pharma Two B loan receivable that was fully written off in the current period are both resolved from the prior filing's balance sheet. The accumulated deficit stands at $246.1M. Federal NOL carryforwards of $131.2M generate a gross deferred tax asset of $45.5M, fully offset by a $45.5M valuation allowance—zero balance sheet value. The company was delisted from Nasdaq in May 2025 and now trades on OTCQB. A subsequent-event IP license from Cirna Diagnostics (February 2026) involves up to $6.85M in milestone and sales milestone payments plus royalties—contingent obligations, not reflected on the balance sheet. Material weakness disclosures remain in effect.
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