NetBrands Corp. (NBND) presents a deeply insolvent balance sheet under a liquidation lens as of December 31, 2025. Total assets are $102,185 against total liabilities of $2,515,424, producing a book equity deficit of $(2,413,239). Under liquidation haircuts, recoverable asset value is negligible: cash of $4,297 (100% recovery = $4,297), mining equipment gross $78,310 at 50-70% recovery ($39,155-$54,817), crypto assets at cost $16,039 (market-dependent, no reliable floor), and a security deposit of $3,540. Intangibles and goodwill are zero on the balance sheet. Liquidation asset pool is approximately $63,000-$79,000 against $2,515,424 in face-value liabilities, implying equity recovery of approximately negative $2.4-$2.5 million. The MFFAIS CLV/LLV/OLV of $(2.02M) is directionally consistent but slightly less negative than book deficit due to haircut methodology on a near-zero asset base. Key liability components: accounts payable and accrued liabilities $1,054,110; current convertible notes $535,735 (all in default per the filing); other loans payable current $431,869 (all in default); long-term government EIDL loans $493,710 at 3.75% over 30 years. The EIDL balance technically carries 30-year terms but does not extinguish on windup, representing a structural claim. The Cove Note ($234,425 including accrued interest, in default) carries a 125% acceleration clause on default, implying the face liability may understate the actual wind-up obligation by approximately $58,600. Company pivoted in July 2025 from snack food distribution to Bitcoin mining via 10 Bitmain S21+ ASICs hosted at Simple Mining LLC in Iowa. Full-year 2025 mining revenue was $18,265; cost of revenue $8,775; gross margin $9,490. These figures are immaterial relative to the liability stack. Net loss widened to $(1,695,935) from $(1,285,306) in 2024, driven by $733,666 in interest expense (up from $487,217) and a new $388,712 induced conversion loss on debt extinguishment. Share count exploded from 22,553,849 to 131,272,193 during 2025, primarily from convertible debt conversions (105.7M shares) at prices as low as $0.00125/share. Post-period, 128.3M additional shares were issued through April 15, 2026, further diluting any residual equity recovery value. The 127,022 Series B preferred shares outstanding each convert into 1,000 common shares (127M potential common shares), representing a substantial overhang not captured in period-end share count. Going concern opinion is present. Filing discusses the Trillium ELOC ($10M capacity) in MD&A narrative but the ELOC balance is not separately tagged in XBRL as a distinct liability line; it appears embedded within convertible notes. The balance sheet is essentially a liability-only structure with de minimis liquidating assets.
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