Jushi Holdings Inc. Liquidation Value

Jushi Holdings Inc. (JUSHF) presents a deeply negative liquidation posture as of March 31, 2026. Book equity is negative $134.8M; applying standard liquidation haircuts to assets widens the deficit materially. MFFAIS-reported CLV/LLV/OLV are ($259.6M), ($255.9M), and ($220.3M), respectively, consistent with the balance sheet composition.

Asset side: Total assets of $435.1M are dominated by non-recoverable or deeply haircut categories. Goodwill ($30.9M, 0% recovery) and net intangibles ($92.8M, 0% recovery) together represent $123.7M that returns zero in liquidation. Net PP&E of $141.3M (gross $215.2M less $73.9M accumulated depreciation) at a 50-70% haircut yields $70-99M of recoverable value. Inventory of $35.6M at 60% yields approximately $21M. Cash and equivalents of $39.7M (plus restricted cash of $2.6M) recover at par. Accounts receivable of $3.7M at 90-95% yields approximately $3.4M. Finance lease ROU assets ($56.1M) and operating lease ROU assets ($18.8M) carry negligible standalone liquidation value as they are not owned assets. The aggregate haircutted asset pool is unlikely to exceed $180-200M in a stress scenario.

Liability side stays at face value. Total liabilities are $569.9M. The dominant components: (1) Long-term debt gross carrying amount of $243.6M (the 2026 Term Loan at $160M face, issued March 27, 2026, plus residual finance-related promissory notes), (2) LiabilityForUncertainTaxPositionsNoncurrent of $186.2M (IRC 280E unrecognized tax benefits, inclusive of $41.5M in interest and penalties, growing $9M QoQ from $177.2M at Dec 31, 2025), (3) Finance lease liabilities of $64.1M ($10.9M current, $53.2M noncurrent), (4) OtherLiabilitiesNoncurrent of $30.8M, (5) AccruedLiabilitiesCurrent of $27.0M, and (6) AccountsPayableCurrent of $23.4M. The unrecognized tax benefit liability is the single most consequential item under the liquidation lens: it does not extinguish on wind-up and represents a contingent federal tax obligation that grew $9M in one quarter. The April 28, 2026 cannabis rescheduling (Schedule III) may prospectively relieve 280E obligations for medical cannabis operations starting 2026 if the company registers with DEA, but retroactive relief is not guaranteed; the filing explicitly states no estimate of change can be made. The debt refinancing executed March 27, 2026 extended the maturity wall to March 2029 ($160M at 12.5% cash pay, 4% OID), eliminating near-term maturity risk but adding a $15M minimum unrestricted cash covenant. The 2026 Term Loan includes related-party participation ($28M from CEO-controlled entity, $21M from a significant investor). Loss on debt extinguishment/modification of $5.0M was recognized in Q1 2026.

Since the prior filing (10-K, December 31, 2025): the refinancing restructured the liability stack, replacing $46.1M 2024 Term Loan and $86.2M Second Lien Notes with a single $160M facility. The unrecognized tax liability grew from $177.2M to $186.2M. Stockholders' equity deepened from approximately ($115M, implied) to ($134.8M). The IRS issued a Notice of Proposed Adjustment in February 2026 related to tax year 2021; the proposed amounts were already included in the unrecognized tax benefit balance. Filing discusses the 2026 Term Loan minimum cash covenant and the DEA rescheduling potential 280E impact in MD&A but does not separately XBRL-tag the minimum cash covenant amount or the potential 280E benefit quantum.