LANTRONIX INC (LTRX) presents a negative cash liquidation value (CLV of -$13.3M per MFFAIS) and a marginally positive liquid liquidation value ($10.2M) as of March 31, 2026. Under liquidation-lens haircuts, the recovery posture is as follows: cash of $23.5M recovers at 100% ($23.5M); AR of $23.5M at 90-95% yields approximately $21.2-22.3M; inventory of $26.4M at 60% yields approximately $15.9M; PP&E of $1.7M at 50-70% yields approximately $0.9-1.2M; intangibles (finite-lived) of $2.3M and goodwill of $31.1M recover at 0%. Total identifiable asset recovery is approximately $61.5-62.9M before liability settlement. Total liabilities at face value are $45.5M, of which current liabilities are $28.1M and non-current are $17.5M. The SVB revolving credit facility carries $8.7M outstanding (non-current long-term tranche per XBRL). Operating lease ROU assets ($7.3M on the asset side) have a corresponding liability embedded in OtherLiabilitiesCurrent ($10.5M) and OtherLiabilitiesNoncurrent ($8.8M), which do not extinguish on wind-up. Deferred revenue of $5.0M ($3.1M current, $1.9M non-current) remains a face-value liability; unearned service obligations would survive liquidation as refund or settlement claims. The accumulated deficit stands at -$238.3M, reflecting persistent losses. Net loss for the nine months ended March 31, 2026 was $3.9M, improved from $8.7M in the prior-year period, driven by reduced operating expenses (restructuring, lower intangible amortization as prior-year acquisitions fully amortize out). Goodwill at $31.1M is the single largest asset by book value and recovers at zero under liquidation, constituting the primary drag on CLV. Intangible amortization for the nine months ended March 31, 2026 was $1.4M versus $3.4M in the prior-year period, reflecting near-full burn-down of acquired intangibles from the Netcomm and prior acquisitions. The Loan Agreement with SVB requires 75% of US cash to be held at SVB, creating concentration risk that affects the practical accessibility of cash in a distress scenario. The filing discusses potential tariff refunds related to IEEPA-based duties paid on imported products but does not recognize any recovery amount and does not separately XBRL-tag this contingent asset. Working capital improved modestly to $48.9M from $47.0M at June 30, 2025. Operating cash flow for the nine months was $7.95M, positive, providing some near-term runway. The operating liquidation value ($36.7M per MFFAIS) reflects going-concern value above the liquidation floor, but equity recovery under a strict wind-up scenario is thin and dependent on inventory realizing above 60% haircut assumptions and deferred revenue obligations not exceeding face value.
▼ Community Notes