KEEMO Fashion Group Ltd (KMFG) presents a deeply negative liquidation posture as of January 31, 2026. Total reported assets are $322,644, but $293,498 (91%) is goodwill recognized in connection with the October 2024 acquisition of GW Reader Sdn. Bhd. Under the liquidation lens, goodwill receives a 0% recovery haircut, eliminating its contribution entirely. Remaining tangible assets consist of cash ($22,696, recoverable at 100%), accounts receivable ($41, ~90-95% recoverable), and prepayments ($6,409, minimal recovery). Adjusted liquidation asset value is approximately $23,000. Against this, total liabilities stand at $610,298, all classified as current. The dominant liability is amounts due to related parties ($560,908 per Note 6), characterized as interest-free, unsecured, and repayable on demand — face-value treatment required under the liquidation lens. Additional current liabilities include deferred revenue ($45,254, extinguishes on wind-up but represents a cash-received obligation) and other payables/accruals ($4,136). The resulting equity deficit is ($287,654) on a book basis; under liquidation, the recovery deficit widens materially to approximately ($587,000) as flagged by MFFAIS CLV/LLV/OLV metrics, consistent with goodwill elimination. The company explicitly discloses going concern conditions: net loss of $30,239 for the six months ended January 31, 2026, working capital deficit of $581,152, and shareholders' deficit of $287,654. Operations generated negative cash flow of ($47,982); the company is dependent on continued related-party advances ($37,125 inflows in the period). The GW Reader Holding Group acquisition on September 2, 2025 was executed at zero consideration from the controlling shareholder under ASC 805-50 (common control), with assets recognized at historical carrying amounts. The goodwill of $293,498 originated in an earlier third-party acquisition (Willing Read acquired GW Reader Sdn. Bhd. on October 17, 2024) and was carried forward at predecessor cost. Deferred revenue of $45,254 represents unearned virtual currency ('Coins') sold to users — a liability that survives wind-up until refunded or extinguished. A subsequent event (February 17, 2026 Stock Purchase Agreement) provides for Addentax Group Corp. to acquire 62.18% of shares for approximately $5.5 million, pending close by May 1, 2026; this has not been recognized in the balance sheet. Filing discusses intangible assets of $2,944 in the goodwill calculation table but does not separately tag an intangibles balance sheet line in XBRL.
▼ Community Notes