LIVE VENTURES Inc Liquidation Value

Live Ventures Inc (LIVE) presents a deeply negative liquidation posture across all three MFFAIS valuation frameworks as of March 31, 2026: cash liquidation value of approximately -$192M, liquid liquidation value of approximately -$158M, and operating liquidation value of approximately -$39M. The filing body is the MD&A and Part II sections of the 10-Q for the six months ended March 31, 2026; no XBRL tags were provided in TAG_CONTEXT, so all balance-sheet quantification below is derived from narrative disclosures.

The most significant new development since the prior filing (Q1 FY2026, period ended December 31, 2025) is the FCCR covenant breach and forbearance at subsidiary PMW (Precision Manufacturing Works, housed in the Steel Manufacturing segment). PMW violated the Fixed Charge Coverage Ratio covenant under its Fifth Third Bank revolving credit facility. Fifth Third entered a Forbearance Agreement on March 24, 2026, expiring June 15, 2026, conditioned on delivery of a replacement facility commitment by March 31, 2026 and a fully committed refinancing by May 31, 2026 with closing by June 15, 2026. As a result, approximately $10.5M of PMW long-term debt has been reclassified to current liabilities at March 31, 2026 (Fifth Third Revolver $7.3M, M&E Loan $3.2M). Under the forbearance lens, this acceleration risk is fully live at period end; under liquidation, the entire $10.5M stays at face value as current obligation regardless of forbearance outcome.

Goodwill impairment of $4.0M was recognized at PMW during Q2 FY2026 (zero carrying value benefit in liquidation; the impairment confirms deterioration in the underlying asset quality attributed to PMW's sustained operating losses and underperformance vs. internal projections). This charge is incrementally negative versus the prior filing, which carried no impairment. Under liquidation, goodwill recovers at 0% regardless, so the carrying-value haircut is already complete — the signaling value is that PMW's tangible asset base is now under greater scrutiny.

Consolidated working capital increased to approximately $74.4M at March 31, 2026 from $62.1M at September 30, 2025, driven primarily by the PMW debt reclassification shifting prior long-term debt into current (reducing net long-term liabilities) and modest cash and inventory builds. Cash on hand is $15.2M (100% recovery). The company carried approximately $24.6M of undrawn revolver capacity.

The Retail-Flooring segment continues to be the most significant drag on operating value: six-month operating loss of $8.3M vs. $4.9M in the prior-year period, revenue down 23% year-over-year, and gross margin contracting 280bps to 33.1%. This segment's assets — primarily inventory and lease-associated PP&E — face material haircuts (inventory at 60%, PP&E at 50-70%), while the operating lease obligations embedded in this retail network persist at face value through wind-up. The filing discusses ongoing cost-reduction initiatives in Retail-Flooring but does not separately disclose segment-level balance sheet detail in XBRL.

The filing does not separately tag goodwill, inventory, PP&E, long-term debt, operating lease liabilities, or any other balance-sheet line item in XBRL (TAG_CONTEXT is empty). All material balance-sheet items referenced in the liquidity and segment discussions — including the $10.5M accelerated PMW debt, the $4.0M goodwill impairment, working capital components, and operating lease obligations embedded in the retail footprint — must be assessed from narrative disclosure only. The absence of XBRL tags prevents tag-level recovery analysis for this filing.