PRO DEX INC (PDEX) as of March 31, 2026 shows a liquidation posture that is modestly positive at the operating asset level but faces meaningful compression from new debt added in Q3 FY2026 to fund the APM acquisition. MFFAIS reports a cash liquidation value of negative $8.8M, a liquid liquidation value of $10.6M, and an operating liquidation value of $33.0M — consistent with the balance sheet structure observed in the filing. Total assets are $75.0M against total liabilities of $29.8M, leaving book equity of $45.2M. Under liquidation haircuts, the recovery picture degrades materially. Gross AR of $19.5M (90-95% recovery = ~$17.5-18.5M) is concentrated: Customer 1 accounts for 75% ($14.6M) of gross AR, introducing single-obligor recovery risk if that relationship were to impair in a wind-down. Inventory of $22.4M (60% recovery = ~$13.4M) includes $8.1M WIP and $1.7M finished goods; the WIP haircut is severe given surgical device specificity and proprietary design. PP&E net book value of $6.0M (50-70% recovery = $3.0-4.2M) includes owned real property (Franklin Property in Tustin) secured by UMB under the Property Loan, limiting free equity recovery. Goodwill of $6.5M from the APM acquisition is zero-recovery under liquidation. Finite-lived intangibles (customer relationships and patents, net $712K) are also effectively zero in a distressed sale. On the liability side, total notes payable increased to $18.5M from $15.4M at June 30, 2025, driven by new Term Loan D ($6.65M) and APM subordinated seller note ($2.0M) issued February 9, 2026, partially offset by paydown of the revolving facility (zero balance at March 31, 2026 vs. $3.7M at June 30, 2025). Operating lease obligations of $1.7M (total undiscounted $1.7M) remain at face value. Customer 1 represents 79% of Q3 FY2026 revenue and 75% of gross AR — single-customer dependency is the primary going-concern assumption embedded in the asset values; in liquidation, the intangible component of that relationship (proprietary design rights, supply agreements through 2028) would realize nothing. The $39M firm backlog disclosed in MD&A is not a balance-sheet asset and provides no liquidation value. Filing discusses goodwill from APM acquisition in MD&A and notes but does not separately tag goodwill impairment testing assumptions in XBRL — no impairment recorded in the period.
▼ Community Notes