One World Products, Inc. (OWPC) as of September 30, 2025 presents a deeply negative liquidation recovery posture. Total assets are $6.6M against total liabilities of $7.1M, yielding negative GAAP book equity of $(5.2M). Under liquidation haircuts, the picture deteriorates further. Cash of $169K recovers at par. Accounts receivable of $46K recovers at ~$42K (90%). Inventory of $67K recovers at ~$40K (60%). Prepaid and other current assets of ~$23K recover near zero. The dominant asset is PP&E net of $6.3M (gross ~$6.5M, accumulated depreciation $148K), consisting primarily of machinery and equipment ($3.3M gross), buildings ($2.8M gross), and furniture/fixtures ($325K gross) — all acquired in the July 14, 2025 Eco Bio Plastics Midland asset purchase. Applying a 50-60% liquidation haircut to gross PP&E of $6.5M yields roughly $3.2-3.9M in recoverable value. Against this, liabilities at face include: current liabilities of $4.3M (accounts payable $707K, accrued liabilities $873K, current portion of related-party notes $487K, non-related-party notes payable current $1.6M, accrued dividends $301K, and other accruals); and long-term related-party notes of $2.8M. Total liabilities face value: $7.1M. Liquidation asset recovery of approximately $3.3-4.0M against $7.1M of liabilities produces estimated equity recovery of approximately negative $3.1M to negative $3.8M, consistent with MFFAIS CLV/LLV/OLV metrics of approximately negative $3.9M to negative $3.8M. The Eco Bio acquisition — booked as a bargain purchase under ASC 805, generating a $6.0M non-cash gain — substantially inflates reported net income ($4.7M for nine months) but does not generate cash or reduce the structural liability overhang. The gain represents an accounting credit, not a liquidation asset. Financing is entirely reliant on related-party demand notes from board members and affiliate investors (Dr. John McCabe, Isiah Thomas III, Dr. Kenneth Perego II) totaling $3.3M face, up from $2.2M at December 31, 2024, a 52% increase in nine months. Non-related-party notes (SDT Equities $1.3M, AJB Capital $300K, LDL8 $35K) of $1.6M are all classified current and were past their stated January 2025 maturity dates as of the balance sheet date — filing does not separately disclose default status on these instruments, though make-whole warrant provisions and conversion features create contingent equity dilution liability. Series A and B preferred stock carried at mezzanine ($1.1M stated value based on 114,733 shares at $10 and 238,501 shares at $15) have a liquidation preference senior to common equity, with $301K of accumulated Series A dividends accrued. Disclosure controls assessed as not effective. Going concern language remains. The accumulated deficit stands at $(26.1M).
▼ Community Notes