Can B Corp (NASC) presents a deeply negative liquidation posture as of September 30, 2024, consistent with the MFFAIS-computed cash liquidation value of approximately negative $11.6 million. The company has effectively ceased its primary operating segment: the hemp division's assets were auctioned under UCC Article 9 in March 2024, generating approximately $300,000 in proceeds against a gross PP&E that stood at $7.67 million at December 31, 2023. By September 30, 2024, PP&E net book value is zero — all categories (manufacturing equipment, medical equipment, furniture, leasehold improvements) have been disposed. Under liquidation haircuts, the prior $4.1 million net PP&E would have yielded perhaps $2.1-2.9 million at 50-70% recovery; actual realized proceeds of roughly $300,000 confirm that orderly-liquidation assumptions significantly overstated recoverable value for this asset base. Inventory collapsed from $1.62 million at December 31, 2023 to $156,000 at September 30, 2024, reflecting wind-down of the hemp product line; at a 60% haircut, this yields only approximately $94,000. Intangible assets (technology, IP, patents of $95,000 net at December 31, 2023) were fully impaired during the nine months ended September 30, 2024 — $95,144 impairment recorded — and carry zero value at period-end, consistent with the liquidation lens assumption of 0% recovery on intangibles. Cash is $7,879, which at 100% recovery is negligible. On the liability side, notes payable in the aggregate principal amount of approximately $8.7 million were disclosed as past due as of September 30, 2024, up from approximately $7.8 million at June 30, 2024. Named obligations include Arena convertible notes (ASOP Note I: $2.35 million, ASOF Note I: $90,000, ASOP Note II: $1.22 million, ASOF Note II: $315,000 — all in default/past maturity), TWS equipment note ($1.63 million), WOMF consolidated/promissory notes ($350,000 + $257,000 + $156,000), ClearThink notes (multiple tranches totaling approximately $415,000 based on disclosed principal), Tysadco/ClearThink combined note ($1.01 million past due), Blue Lake ($58,000 past due), Alumni Capital ($52,000), Empire Properties ($52,000), and a related-party note to Pat Ferro ($458,000 secured by a pledge of the Company's equity interest in Nascent). Working capital deficit is $10.05 million at September 30, 2024 versus $7.13 million at June 30, 2024 — the deficit widened materially quarter-over-quarter. The filing discloses the aggregate past-due notes figure and the Arena lawsuit (court indicated inclination to grant preliminary injunctive relief per October 25, 2024 hearing), a $336,924 Alabama judgment (Evexia Plus), and other contingencies. No aggregate notes payable or total liabilities balance sheet line is separately tagged in XBRL in this filing — the TAG_CONTEXT is empty — so all debt figures referenced above are drawn from MD&A and footnote disclosures. The filing does not separately XBRL-tag total assets, total liabilities, notes payable aggregates, or any balance sheet summary lines. The company's forward strategy pivots entirely to Nascent Pharma LLC's unacquired cannabis patents, which have no current liquidation value. Recovery to equity in a liquidation scenario is negative and deeply so; preferred stock liquidation preference (Series A, C, D) would rank ahead of common equity, and even the aggregate preferred preference is wiped out by the liability overhang. The filing discusses aggregate past-due debt, negative working capital, and the Arena lawsuit outcome risk in MD&A but does not separately tag these in XBRL.
▼ Community Notes