NRC Health (NRC) as of March 31, 2026 presents a deeply negative liquidation recovery posture, consistent with its software/SaaS profile where book value is dominated by intangibles and goodwill. MFFAIS CLV of -$110M confirms this. Applying standard liquidation haircuts to the $134.6M asset base: cash $2.5M recovers at 100% ($2.5M); net AR $10.8M recovers at ~90-95% (~$10.3M); PP&E net book $40.3M (largely capitalized internal-use software and renovated headquarters building) recovers at 50-70% of tangible hard asset value, though internal-use software and leasehold improvements within that figure would recover at the low end—say $10-15M on a blended basis; goodwill $66.2M recovers at 0%; other intangibles net $2.2M recovers at 0%; deferred contract costs $3.1M recovers at 0%; prepaid/other current ~$6.1M recovers at 20-30%. Total recoverable asset pool is roughly $25-30M. Against this, total liabilities stand at $121.1M at face value, including $78.4M Delayed Draw Term Loan (gross, matures Feb 2030, floating SOFR+2.25-2.75%, currently ~6.02%), $17.2M current deferred revenue (service delivery obligation—extinguishes operationally but creates refund exposure on wind-up), $38.5M total current liabilities, and $82.6M non-current liabilities. The resulting liquidation deficit to equity is approximately -$90M to -$95M, closely tracking the MFFAIS figure. No material change in debt structure this quarter—term loan declined modestly from $79.4M to $78.4M via scheduled amortization ($1.03M cash principal paid). Working capital deficit widened to -$18.5M from -$16.4M at year-end 2025, driven by deferred revenue build ($17.2M current) and declared but unpaid dividends ($3.6M). A material subsequent event was disclosed: April 27, 2026, board approved equity award amendments expected to produce ~$9.4M of Q2 2026 expense ($6.5M non-cash accelerated stock comp, $2.9M cash bonuses). The $2.9M cash outflow is a near-term liquidity draw not yet reflected on the March 31 balance sheet. Filing discusses the $60M stock repurchase authorization (March 2026) in MD&A but does not separately XBRL-tag the remaining authorization balance. The $154.5M treasury stock balance—accumulated from years of buybacks—represents a permanent capital drain with no liquidation recovery value.
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