Healthy Extracts Inc. (HYEX) presents a deeply negative liquidation posture as of March 31, 2026. The company's own MFFAIS-computed cash liquidation value is approximately -$2.25M and operating liquidation value is approximately -$1.22M, consistent with the balance-sheet structure visible in this filing. Total assets are reported at $27.3M, but this figure is dominated by items that carry zero recovery under a liquidation lens: the filing discloses $315,604 in patents from the UBN acquisition (0% haircut under liquidation), goodwill from prior acquisitions, and — critically — a $23.5M long-term investment representing the fair value of 13,075,920 shares issued to Donald Swanson in connection with the Gummy USA merger. Management explicitly states these shares were not cancelled upon rescission of the original MIPA and have been recorded as a long-term investment pending completion of consolidation analysis. Under a liquidation lens, this asset carries zero realizable value: it is an unresolved intercompany/equity instrument tied to a transaction that was rescinded and re-executed, with no independent third-party market value. Stripping this $23.5M long-term investment and intangibles leaves tangible operating assets well below the $3.3M total liabilities at face value. Tangible current assets as of March 31, 2026 total approximately $1.09M (cash $164K, plus receivables and inventory). Against total liabilities of $3.34M — which include $821K in related-party notes payable (several past due, including Unsecured Debt I matured June 2025 and Unsecured Debt O matured January 2026), $6.75K in convertible notes, $471.6K in ASC 842 operating lease liabilities, and $69.4K derivative liability — the haircutted asset pool does not cover the liability stack. Operating lease obligations of $530.7K undiscounted ($471.6K present value) across two facilities (Henderson, NV and Sarasota, FL, both expiring 2028) survive a winddown and are carried at face on the liability side. Related-party debt of $821.5K includes at least two tranches already past maturity with no evidence of formal extension; under liquidation these would be immediately callable. The derivative liability declined materially from $625.4K at December 31, 2024 to $69.4K at March 31, 2026, primarily driven by payoff of convertible note #4 ($111.3K paid in Q1 2026) and fair-value mark-downs, which modestly reduces the liability stack. The filing discloses a subsequent-event secured loan of $140K ($152.9K all-in cost) drawn April 30, 2026, adding to the post-period liability position. Going concern qualification is present. Accumulated deficit stands at $20.3M inception-to-date. The long-term investment accounting treatment for the Gummy USA merger shares — disclosed in MD&A and footnotes but not separately XBRL-tagged beyond the general tag context — is the single largest distortion between book total assets and liquidation-value total assets. Filing does not separately XBRL-tag the long-term investment, goodwill, or intangible assets as distinct line items in the TAG_CONTEXT provided; these are discussed extensively in narrative but absent from the filer's emitted XBRL tag set for this period.
▼ Community Notes