Seres Therapeutics, Inc. Liquidation Value

Seres Therapeutics (MCRB) presents a deeply negative liquidation posture as of March 31, 2026. Total assets of $117.6M are overwhelmingly composed of the ASC 842 right-of-use asset ($70.2M, haircut to near-zero under liquidation) and restricted cash ($8.7M, recoverable at face). Liquid assets—cash $29.8M plus restricted cash $8.7M plus AR $0.2M—sum to approximately $38.7M at or near full recovery. PP&E gross of $64.2M with accumulated depreciation of $57.4M yields net PP&E of $6.9M; applying a 50-70% recovery haircut yields approximately $3.4M-$4.8M. The ROU asset of $70.2M carries negligible liquidation value; in a wind-down the leases remain obligations, not assets. Intangibles and other noncurrent assets ($31K) recover at zero.

On the liability side, total liabilities of $91.1M must be satisfied at face value. The operating lease liability stands at $80.5M ($10.9M current, $69.6M noncurrent), representing the dominant liability. Undiscounted future minimum lease payments total $113.4M, implying a weighted average discount rate of 13% is suppressing the reported present value. At face value, lease obligations dwarf any realistic asset recovery. Other current liabilities—AP $2.3M, accrued employee costs $1.8M, other accruals $0.6M—are modest. Other noncurrent liabilities of $2.1M round out the stack.

Applying liquidation haircuts: recoverable assets approximate $38.7M cash/restricted cash + $0.2M AR + $3-5M PP&E = approximately $42-44M. Against $91M in liabilities at face, estimated equity recovery is approximately negative $47-49M, consistent with MFFAIS CLV/LLV of negative $59M (the difference attributable to treatment of restricted cash and ROU impairment assumptions). Equity book value of $26.5M versus liquidation shortfall of ~$47-49M confirms zero equity recovery.

Key deterioration drivers since the 10-K (prior filing): The TSA with NESA (Nestlé affiliate) expired December 31, 2025, eliminating $13.3M in annual TSA reimbursement income. Two workforce reductions totaling approximately 55% (25% in September 2025, 30% in February 2026) generated $0.9M in Q1 2026 restructuring charges. Cash burn was $16.4M in Q1 2026; at this rate the disclosed runway extends only to Q3 2026, per the filing's own disclosure. The company has no financial debt; the liability stack is almost entirely the operating lease obligation, which does not extinguish on wind-down. Filing discusses sublease efforts for excess leased space in MD&A but does not separately XBRL-tag sublease income or impairment charges. Federal NOLs of $616.4M carry full valuation allowance—zero liquidation value.