MariMed Inc. (MRMD) presents a deeply negative liquidation recovery posture at December 31, 2025. The MFFAIS cash liquidation value is reported at -$124.4M, liquid liquidation value at -$115.3M, and operating liquidation value at -$78.7M, consistent with the balance sheet structure described in this filing. Total assets are $202.6M against total liabilities of $137.8M on a GAAP basis, but under liquidation lens the asset side is severely impaired by haircuts. The dominant asset is PP&E at $89.4M gross book ($89.4M net after $27.1M accumulated depreciation), which at a 50-70% recovery rate yields $45-63M — substantially below the $72.7M net mortgage and notes payable stack alone. Intangibles ($17.2M net carrying value) and goodwill ($24.0M) are assigned zero recovery, eliminating roughly $41M of book assets entirely. Inventory at $36.6M haircuts to approximately $22M at 60% recovery, providing some offset. Cash and restricted cash total $8.9M (100% recovery). Accounts receivable net of $9.1M applies at 90-95% recovery, or approximately $8.7-8.7M. The liability stack at face value is punishing: mortgages and notes payable total $72.7M (net of discount; gross face $76.0M), operating lease liabilities $8.6M, finance lease liabilities $4.0M, accrued income taxes current $27.0M, accrued liabilities current $9.5M, accounts payable $14.6M, and deferred revenue $1.4M. The $27.0M accrued income taxes line is particularly notable and reflects Section 280E-driven tax obligations plus disputed IRS federal tax liens of approximately $6.0M (2023 tax year) and $1.3M (acquired FSC subsidiary liability), all fully accrued. The CREM Loan — a $58.7M 10-year mortgage with Needham Bank at 8.43% fixed for five years on MD and MA operating assets — dominates the debt structure and is secured by a first priority lien on the company's most valuable revenue-generating assets in Maryland and Massachusetts, meaning those assets would be encumbered in liquidation. A Restructuring and Exchange Agreement was executed February 24, 2026 (post-balance-sheet date) that extinguished the $14.2M Series B Obligation and replaced it with $8.0M in new promissory notes (Note #1: $2.0M at 8%, due 2028; Note #2: $6.0M at 10%, due 2031) and 26.9M shares of new Series B Preferred Stock with $6.7M aggregate liquidation preference — this shifts approximately $14.2M of mezzanine equity obligation into a combination of $8.0M senior debt and $6.7M preferred liquidation claim, worsening the recovery posture for common equity relative to the balance sheet date. The inventory revaluation charge of $5.6M in 2025 (up from $3.7M in 2024) signals ongoing pressure on cannabis product valuations, relevant to inventory recovery assumptions. Full valuation allowance ($17.3M) against deferred tax assets confirms no recovery value from NOL carryforwards. Net loss of $14.5M in 2025 versus $12.4M in 2024 reflects a deteriorating operating trajectory. No tangible equity recovery exists for common equity holders under liquidation mechanics.
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