KORU Medical Systems (KRMD) as of March 31, 2026 presents a marginally positive liquidation recovery posture at the operating liquidation value level, consistent with MFFAIS's reported OLV of approximately $7.6M, but negative at the cash liquidation level (CLV approximately -$2.9M). Total assets of $28.6M haircut under liquidation assumptions yield materially less: cash at 100% ($8.8M), AR at 90-95% (~$5.4-5.7M), inventory at 60% (~$2.7M), PP&E net $4.3M at 50-70% (~$2.2-3.0M), intangibles $0.7M at 0%, ROU asset at 0% for liquidation purposes, other assets at modest recovery. Estimated gross liquidation proceeds approximate $19-21M before liability settlement. Total liabilities at face value are $11.7M, but the operating lease liability of $3.2M (undiscounted $3.7M over 6.3 weighted-average years) does not extinguish on windup and must be settled or assumed at contract value, materially pressuring recovery. Finance lease liability ($0.17M) is minor. No bank debt is drawn on the $5M revolver or $5M term loan facility as of period end, following a March 30, 2026 amendment extending maturities and lowering the rate floor to 5.50%; however, these facilities are secured by a first-priority lien on substantially all assets, which constrains liquidation optionality if drawn in future periods. Accumulated deficit widened to $32.8M from $32.0M at December 31, 2025, reflecting the Q1 2026 net loss of $0.8M. Treasury stock increased from $3.9M to $5.5M QoQ, driven by 380,000 restricted stock shares forfeited by the departing CEO and returned to treasury per the separation agreement executed March 2026; an additional 200,000 shares were forfeited post-quarter end (April 12, 2026). Inventory increased $0.8M QoQ to $4.5M, attributed to management's demand build; at a 60% recovery haircut, incremental liquidation value from this build is approximately $0.5M. The filing discusses tariff exposure in MD&A but does not separately XBRL-tag any tariff-related reserve or accrual. The full deferred tax asset valuation allowance (approximately $7.1M gross DTA per prior 10-K) continues with zero net recovery in liquidation. KORU carries no goodwill. Net cash from operations was essentially breakeven ($14.7K) in Q1 2026, an improvement from $(237K) in Q1 2025, with the cash burn trajectory meaningful to runway assessment against the $8.8M cash balance.
▼ Community Notes