Passage BIO (PASG) presents a deeply negative liquidation posture as of March 31, 2026. Total assets per XBRL are $36.5 million against total liabilities of $24.7 million, yielding GAAP book equity of $11.8 million. Under liquidation haircuts, the recovery picture collapses materially. Cash and cash equivalents of $33.3 million are the only asset recoverable near par. Prepaid and other current assets of $0.7 million recover at roughly 90%, contributing ~$0.6 million. Property, plant and equipment net book value is $0.8 million (gross $2.9 million, accumulated depreciation $2.1 million); at a 50-60% liquidation haircut on net book, recovery is approximately $0.4-0.5 million. The operating ROU asset of $0.7 million is effectively worthless in liquidation as the underlying Philadelphia office lease (2005 Market Street, expiring December 2031) cannot be easily terminated without penalty, and in fact represents a future liability. Intangible assets and the pipeline (PBFT02, HD program) carry zero liquidation value under the lens. Total haircutted asset recovery is approximately $34-35 million. On the liability side, face-value obligations include: current liabilities of $20.1 million (accounts payable $1.3 million, accrued professional fees $0.5 million, employee-related $1.3 million, deferred revenue current $13.8 million, operating lease current $1.1 million, and other accruals); non-current liabilities of $4.6 million (operating lease non-current); total liabilities $24.7 million. The deferred revenue current of $13.75 million is a critical liability — it reflects the Gemma sublicense payments received for which service obligations may not be fully extinguished on wind-up, and would likely be required to be refunded or settled. The Philadelphia office lease has $7.4 million in aggregate future rent payments outstanding, and ASC 842 lease liability at face is $5.8 million total; this obligation does not extinguish on wind-up. Additionally, the $0.9 million Catalent divestiture fee is accrued and payable at face. Post-wind-up severance from the April 28, 2026 announced 75% workforce reduction (estimated $3.3 million) is a post-period contingent liability not reflected on the March 31 balance sheet but would be a first-priority cash drain. Net liquidation recovery to equity after face-value liabilities and haircut assets is marginally positive in the $9-11 million range before the post-period severance charge and any lease termination penalties, but approaches zero or turns negative once those are factored. The accumulated deficit stands at $712.3 million. The company has explicitly disclosed substantial going concern doubt, burned $13.0 million in operating cash in Q1 2026 alone, and has $33.3 million cash which it states is insufficient for the next 12 months. The April 2026 announcement of a strategic alternatives review (merger, reverse merger, asset sale, licensing) is the operative scenario management is pursuing rather than orderly liquidation, but the balance sheet economics leave minimal margin for equity recovery in a distressed scenario. The $5.0 million installment due from Gemma under the Amended Sublicenses in March 2026 is not reflected as received in current cash per the filing; the filing does not confirm receipt separately in XBRL. The prior filing (10-K for FY2025, filed March 3, 2026) provides the comparison baseline from which Q1 2026 burned approximately $13 million in operating cash.
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