MMEX Resources Corp presents a deeply negative liquidation recovery posture at January 31, 2026. Total assets of $992K are overwhelmingly illiquid: $978K is net PP&E (refinery land, land improvements, and easements at the Pecos County, Texas site), which under a 50-70% recovery haircut yields approximately $490K-$685K. The remaining $14K in current assets (cash of $1,428 and prepaid of $13K) recovers near par. Against this, total liabilities of $7.34M at face value produce a liquidation deficiency to equity of roughly $6.6M-$6.8M, consistent with the reported stockholders' deficit of $6.35M and MFFAIS CLV/LLV/OLV of negative $5.7M. The deficit has widened from the prior filing (October 31, 2025 period, working capital deficit $5.45M vs. $5.69M at January 31, 2026). The liability stack is dominated by: accrued expenses of $1.43M (including $1.21M accrued interest and penalties, a figure that grew from $1.04M at April 30, 2025), accounts payable of $998K, related-party AP of $1.37M (doubled from $677K at April 30, 2025 due to accruing consulting fees without cash payments), related-party convertible notes (net) of $1.56M, notes payable in default of $1.15M, convertible notes in default of $654K, and other current notes of $101K. The company has zero revenue, cash of $1,428, and net operating cash burn of $145K in the nine-month period, funded entirely by related-party debt advances. Two new related-party convertible notes totaling $174.9K gross principal were issued in the period. The Maple Resources convertible note (note [4]) saw $578K of principal converted to equity during the period, reducing gross principal from $1.02M to $442K, but this deleveraged the related-party note stack only marginally since total related-party convertible gross principal declined from $2.09M to $1.59M. Intangible value in the development-stage refinery and hydrogen projects is zero under the liquidation lens; all project costs are expensed as incurred per policy. The filing does not separately tag derivative liabilities in XBRL despite MD&A and policy disclosures referencing multinomial lattice derivative valuations, but no derivative liability balance appears on the face statements or in TAG_CONTEXT, suggesting none is currently recorded. The Sabby litigation (disputed convertible note of $184K principal plus $132K accrued interest) remains unresolved and represents a contingent additional claim at face value in a winding-up scenario. Subsequent to period end, the company drew $59.5K from the related-party convertible line of credit, incrementally worsening the posture.
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