PetVivo Holdings (PETV) presents deeply negative liquidation recovery at December 31, 2025. MFFAIS CLV of -$961K and OLV of -$326K confirm equity holders recover nothing in any liquidation scenario. The balance sheet shows total assets of $4.38M against total liabilities of $997K, yielding GAAP book equity of $3.38M — but under liquidation haircuts this reverses sharply. Cash of $18K recovers at par; AR of $30K at ~90% is negligible; inventory of $605K haircut to 60% yields ~$363K; PP&E gross $1.06M (net $464K) recovers at 50-70%, call it $350-530K; intangible assets (patents, licenses, trademarks) net $21K plus $2.53M in OtherAssets (which includes the $800K VetStem licensing agreement recorded at fair value and $150K investment) receive 0% recovery under the liquidation lens — these are the single largest asset on the balance sheet and are worthless in wind-down. Liabilities at face: current liabilities $988K (A/P $386K, accrued $541K, operating lease current $62K) plus noncurrent $9K lease = ~$997K total. Applied haircuts produce a gross asset recovery of approximately $750-950K against $997K in liabilities — indicating negative or near-zero equity recovery before wind-down costs. The liquidity position is critical: cash fell to $18K at December 31, 2025, down from $768K at September 30, 2025 (prior quarter). Operating cash outflow was $5.29M for the nine-month period. The company burned through the bulk of the $5M Series B preferred stock raise within two quarters. The auditors have issued a going-concern paragraph. During the nine months ended December 31, 2025, the company extinguished $1.875M in convertible notes through equity conversion (3.67M shares at $0.50/share) and separately paid a $315K lease termination penalty on the 14,000 sq ft production facility vacated June 30, 2025, shrinking the operating lease stack from ~$891K ROU/liability to $71K. Remaining lease obligations of $71K undiscounted through March 2027 are modest and do not materially affect the liability stack. The filing discloses material weaknesses in ICFR over convertible note modification accounting, BCF measurement, and derivative liabilities — unresolved as of this filing date. The VetStem exclusive license ($800K fair value recorded as intangible) was acquired for 1M shares in September 2025; it carries zero recovery value under the liquidation lens but is separately tagged as FiniteLivedLicenseAgreementsGross at $2.8M gross, suggesting prior licensing asset additions not yet fully amortized. Filing discusses annual minimum purchase commitments under the VetStem agreement but does not separately XBRL-tag the minimum purchase obligation quantum — a contingent liability that would stand at face value in liquidation.
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