ONAR Holding Corporation presents a deeply negative liquidation posture as of September 30, 2025. Total assets of $4.31M are overwhelmingly offset by total liabilities of approximately $8.98M in current liabilities alone, with equity at negative $4.67M. The MFFAIS-computed cash liquidation value of approximately negative $8.69M is consistent with the balance sheet: applying standard haircuts, recoverable asset value is approximately $0.28M cash (100%), $0.20M AR (~90% = $0.18M), $0.08M PP&E (~60% = $0.05M), and intangibles including goodwill are zeroed ($2.65M goodwill and $0.27M other intangibles receive 0% recovery). The $0.40M advance to affiliated entity (a 10-year unsecured note to the CEO's vehicle) is unlikely recoverable at face value in liquidation and should be haircut to near zero. Total liquidation-basis assets recoverable: approximately $0.5M. Against this, face-value liabilities include $8.98M current liabilities consisting of $1.0M accounts payable, $2.0M accrued liabilities, $2.09M convertible notes payable current, $2.19M notes payable current, $0.59M deferred revenue, $0.08M contract liabilities, and a nominal operating lease liability. Total notes payable across all maturities reached $6.07M at period end versus $2.68M at December 31, 2024, a 126% increase driven by $2.86M in new convertible debt proceeds and the August 2025 related-party note consolidation at $1.01M. The working capital deficit widened to $8.3M from $4.0M at year-end 2024 and $5.5M at June 30, 2025, confirming accelerating deterioration. The Juice Labs acquisition (September 15, 2025, $2.12M cash consideration) added $2.19M goodwill on a net negative asset position of $0.07M, meaning virtually the entire purchase price was allocated to goodwill — a zero-recovery intangible under the liquidation lens. The Retina AI asset acquisition ($0.15M intangible) similarly receives zero recovery. The $0.64M payroll tax liability (2023 vintage, unresolved with taxing authorities) is a contingent face-value obligation not separately tagged in XBRL but disclosed in Note 6; it is included in accrued liabilities. Subsequent to quarter-end, an additional $0.76M note was entered (November 9, 2025), secured by substantially all assets, further subordinating other creditors. The CFO departed during Q3 2025 and the CEO is serving dual as principal financial officer. Disclosure controls were assessed as not effective. The filing discusses payroll tax liability of $641K in MD&A but it is not separately XBRL-tagged; it is subsumed within AccruedLiabilitiesAndOtherLiabilities.
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