Myomo, Inc. Liquidation Value

Myomo, Inc. (MYO) presents a deeply negative liquidation recovery posture as of March 31, 2026. MFFAIS reports a cash liquidation value of approximately negative $13.6 million, a liquid liquidation value of approximately negative $8.8 million, and an operating liquidation value of approximately negative $5.2 million. These figures reflect the standard asymmetry: liabilities are held at face value while assets are haircut.

Applying the liquidation lens to reported figures: total assets of $36.8 million are anchored by cash and short-term investments of approximately $15.7 million (recoverable near par), accounts receivable of $4.8 million (subject to 90-95% haircut given CMS/insurer concentration and deferred revenue recognition complexity), inventory of $3.5 million (60% haircut yields ~$2.1 million), PP&E of $2.2 million (50-70% haircut yields $1.1-$1.6 million), and a right-of-use asset of $6.5 million (zero recovery in liquidation). Intangibles embedded in capitalized software and other non-current assets are effectively worthless under a wind-up scenario.

On the liability side: total liabilities of $27.8 million include an operating lease liability of $8.0 million (face value, non-extinguishable without negotiation), a term loan with Avenue Capital with a gross carrying amount of $12.6 million (net book value $9.8 million after $2.7 million unamortized discount, but face value claim is $12.6 million), derivative liabilities of $1.1 million at fair value, and accrued liabilities and payables of approximately $7.0 million. The lease stack is particularly relevant: $10.6 million in undiscounted future operating lease payments with a weighted-average remaining term of 6.7 years and an 8.5% discount rate. In a wind-down, these obligations do not automatically extinguish and would require negotiated buyouts or rejection through bankruptcy, each carrying significant execution risk.

Compared to the prior filing (10-K for year ended December 31, 2025), the balance sheet shows cash declined from $14.1 million to $11.4 million in one quarter — a $2.7 million net decrease driven by $2.2 million in operating cash burn and $0.5 million in investing outflows. Short-term investments are approximately flat at $4.3 million. The Avenue Capital term loan originated in November 2025 and remains the dominant debt obligation; no principal repayments are required during the 18-month interest-only period. A new derivative liability of $1.1 million was introduced with the term loan, representing warrants and a compound derivative feature; this is a marked-to-market liability that fluctuates with stock price and volatility, providing a gain of $0.84 million in Q1 2026 as the stock price declined. The China JV (Ryzur Medical bankruptcy) has been fully reserved; no incremental balance sheet impact in the current period. Filing discusses tariff exposure and CMS reimbursement dependence in MD&A but does not separately tag these risk-exposure amounts in XBRL.