Propanc Biopharma, Inc. Liquidation Value

Propanc Biopharma, Inc. (PPCB) is a pre-revenue, development-stage pharmaceutical company with no tangible operating assets of consequence. Under a liquidation lens at December 31, 2025, equity recovery to common stockholders is deeply negative. The MFFAIS CLV/LLV/OLV are all reported at negative $2.59 million, but the filing data suggests the deficit is substantially larger when all liabilities are held at face value and assets receive appropriate haircuts.

On the asset side, total reported assets are $15.1 million, but this figure is dominated by prepaid expenses (current $7.1 million plus long-term $7.3 million) representing pre-paid equity compensation to consultants, investor relations, and advisors. These prepaid equity instruments have zero liquidation recovery — they are non-cash, non-forfeitable share issuances for future services that extinguish on windup with no cash return. Cash is $561,237 (100% recovery). The GST receivable of $17,000 is recoverable. The ROU asset ($50,901) has no independent recovery in liquidation. PP&E ($4,397 net) and security deposit ($2,000) are negligible. Adjusted gross liquidation asset value approximates $580,000.

On the liability side, total liabilities stand at $3.66 million at face value: current convertible debt $55,000; accounts payable and accrued liabilities (including accrued salaries of $149,000, accrued interest $168,000, rent payable to related party $88,000, and bonus payable to CEO $230,000) totaling approximately $1.99 million; employee benefit liability (unused leave for Nathanielsz family) $703,000; related-party loans current $472,000; standalone loans payable $65,000 in default; derivative liabilities $321,000 (warrant liability $289,000 plus embedded conversion option $32,000); operating lease current $22,000 and non-current $35,000. Total face-value liabilities: approximately $3.66 million.

Liquidation recovery to equity: approximately negative $3.1 million before considering the Series C Preferred Stock redemption obligation. The Series C Preferred Stock (100 shares at $10,000 stated value) carries a liquidation preference at 100% of stated value ($1.0 million) plus a 110% redemption premium on any triggering event — these obligations sit senior to common equity and are not separately tagged in XBRL but are disclosed in MD&A and footnotes; the filing does not tag the Series C liquidation preference as a standalone liability line. The $932,246 deemed dividend recognized this period reflects accretion to the Series C redemption value, further subordinating common equity.

Period-over-period: convertible debt reduced sharply from $537,921 to $55,000 (primarily via equity conversions), derivative liabilities fell from $403,892 to $320,763, and related-party loans increased from $415,329 to $472,083 current (long-term portion extinguished). Cash improved from $12,088 to $561,237 driven by the August 2025 IPO ($3.3 million net) and November 2025 Series C placement ($950,000). Despite this, operational cash burn of $2.9 million in the six-month period is not sustainable at current cash levels. Going-concern qualification remains. Helena Partners litigation ($265,000 claimed) is unaccrued and not tagged in XBRL.