Ludwig Enterprises, Inc. (LUDG) presents a deeply negative liquidation posture as of December 31, 2025. Total assets of $248K are overwhelmed by total liabilities of $4.64M, yielding a GAAP stockholders' deficit of -$4.39M. MFFAIS-computed liquidation values confirm: CLV -$4.64M, LLV -$4.53M, OLV -$4.53M. Under liquidation lens, asset recovery is negligible: cash is effectively zero (reported as a $1,252 bank overdraft, not a positive balance), inventory recovers at 60% of $4,529 (~$2.7K), prepaid expenses ($14.9K) recover at zero, notes receivable ($106K) are highly speculative given the counterparty is Marijuana Inc. (MAJI), a contingent-payment instrument that is already in default on a $100K promissory note due December 31, 2025. Deferred offering costs ($113K) recover at zero under liquidation. Intangibles ($9.2K) recover at zero. No PP&E disclosed. On the liability side, the full $4.64M stays at face value. The liability stack consists of: accounts payable and accrued liabilities ($791K), notes payable - net ($1.27M, 13 unsecured promissory notes extended to March 31, 2026), convertible notes payable ($1.17M, derivative-laden instruments with variable conversion features triggered on uplisting), a derivative liability ($535K, Level 3 Black-Scholes, bifurcated from convertible notes), related-party current liabilities ($55K), and a bank overdraft ($1.3K). Accrued executive compensation obligations (CFO $98K, CEO $161K, CSO $205K) are embedded within the $791K accrued liabilities line. The Purchaser Note receivable from Marijuana Inc. ($100K principal, 8% interest, due December 31, 2025) is explicitly noted as in default and is carried at face on the asset side — recovery under liquidation is highly uncertain and assigned near-zero value here. Convertible note face amount increased materially YoY: from $578K at 12/31/2024 to $1.17M at 12/31/2025, driven by $750K in new 2025 issuances with variable conversion features. A $953.6K derivative liability was recognized as debt discount on these instruments, fully amortized during the year ($796K amortization of debt discount), producing a $117K loss on extinguishment. The derivative liability net balance at year-end is $535K. The filing does not separately tag total accrued compensation liabilities as a distinct XBRL concept; those amounts appear embedded in AccountsPayableAndAccruedLiabilitiesCurrent and OtherAccruedLiabilitiesCurrentAndNoncurrent. A post-period settlement agreement (March 12, 2026) commits the company to pay former CEO Todd $275K in accrued salary plus $36.9K note principal plus interest, contingent on an uplisting — this contingent liability is not reflected on the December 31, 2025 balance sheet and is not separately XBRL-tagged. Change from prior filing (10-Q for period ended September 30, 2025): convertible notes payable and derivative liability are new year-end additions relative to the Q3 2025 interim period; the full-year 10-K crystallizes the liability stack. The company remains a pre-revenue entity with no operating cash generation capability.
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