IPM (Intelligent Protection Management Corp.) presents a negative liquidation recovery posture as of March 31, 2026, consistent with the MFFAIS-reported cash liquidation value of approximately negative $10.5 million and liquid liquidation value of approximately negative $8.3 million. The balance sheet carries total assets of $29.5 million against total liabilities of $12.1 million, yielding GAAP book equity of $17.5 million. Under liquidation haircuts, that equity evaporates and goes negative. The dominant reason: $7.4 million net intangible assets (customer relationships, trade names, internally developed software) and $4.6 million goodwill collectively represent roughly $12 million of balance-sheet value that receives zero recovery in liquidation. PP&E net of $508K recovers at 50-70%, yielding at most $355K. Cash of $5.7 million (unrestricted) recovers at par; restricted cash of $1.0 million used as collateral for a now-matured credit facility is likewise recoverable at par. AR net of $2.16 million recovers at 90-95%, or approximately $2.0-2.1 million. Prepaid and other current assets of $2.1 million receive modest recovery. The right-of-use asset of $4.2 million is non-recoverable (receives zero), while the corresponding operating lease liability of $4.2 million ($466K current, $3.75 million long-term) remains at face value — the ADC Phoenix lease extension executed February 2026 through August 2032 added $3.2 million of ROU asset and matching liability, materially lengthening the committed lease stack from a prior weighted average remaining term of 1.95 years (March 2025) to 6.32 years (March 2026). Deferred revenue of $4.65 million is a performance obligation that does not extinguish in liquidation and stays at face on the liability side, while the corresponding future cash inflow disappears. The Cisco WebEx patent award of $65.7 million gross (final judgment August 2024) is a contingent asset with no XBRL tag and no balance-sheet recognition; the company estimates it would receive no more than one-third of gross proceeds net of litigation costs, and the award is subject to appellate proceedings with a damages retrial ordered. This represents material optionality not captured in any liquidation value calculation. The Cisco ManyCam counter-litigation (defense) carries no accrued liability but has incurred $0.8 million in aggregate defense costs; IPRs were denied April 2026, increasing litigation risk. No long-term debt is outstanding. The acquisition earn-out to Newtek (up to $5 million, contingent on 2025-2026 EBITDA thresholds) is disclosed in MD&A but is not separately tagged in XBRL; if triggered, it would increase the liability stack at face value in a wind-up scenario.
▼ Community Notes