Newton Golf Company, Inc. (NWTG) presents a deeply negative liquidation posture as of March 31, 2026. The company reported a stockholders' deficit of $1,521,000, and management explicitly identified going concern conditions in the filing. Under a liquidation lens, equity recovery is negative and the deficit is widening materially quarter-over-quarter. The prior period (December 31, 2025) showed no convertible debt on the balance sheet; by March 31, 2026, the company had added $500,000 face value in convertible notes payable to a related party (entities affiliated with a board director), net carrying value $429,000 after a $71,000 debt discount from warrant allocation and issuance costs. This is new senior unsecured debt that adds directly to the liability stack at face value in a liquidation scenario. On the asset side, cash was approximately $593,000 at March 31, 2026, down from a higher prior period balance, applying at 100%. Inventory of $605,000 (net of $121,000 reserve) applies a 60% haircut, yielding approximately $363,000 recoverable. PP&E net book value was $888,000 against gross of $1,481,000; at 50-70% of net book value this yields approximately $444,000-$622,000, though leasehold improvements ($436,000 gross) have near-zero standalone recovery, compressing the range. The MFFAIS-computed cash liquidation value is -$1,159,000 and liquid liquidation value is -$1,057,000, consistent with the negative stockholders' equity position. Liability-side items include operating lease liability of $75,000, software license obligation of $27,000, warrant liabilities classified as ASC 815 liabilities totaling $785,000 (Series A $326,000, Series B $459,000), and accounts payable and accrued liabilities not separately tagged in XBRL but present on the balance sheet. The warrant liabilities are mark-to-market obligations that would need resolution in a wind-down; they are not extinguishable at zero. The filing discloses $0.9 million in customer deposits representing deferred revenue obligations that do not extinguish on liquidation without order fulfillment. A material subsequent event: on April 6, 2026, NWTG received a Nasdaq deficiency notice for falling below the $2,500,000 minimum stockholders' equity requirement. Additionally, subsequent to March 31, 2026, the company issued an additional $850,000 in convertible notes to third-party investors, further increasing the liability stack post-period. The filing does not separately tag balance sheet totals, accounts payable, accrued liabilities, total current liabilities, total assets, total liabilities, or stockholders' equity/deficit in XBRL — these are discussed in MD&A and narrative but absent from TAG_CONTEXT. Customer deposits ($0.9 million) are disclosed in MD&A but not separately tagged in XBRL.
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