Profound Medical Corp. (PROF) as of March 31, 2026 presents a balance sheet with $73.5M in total assets against $14.0M in total liabilities, yielding $59.4M in book equity. Under liquidation lens, the recovery picture is marginally positive but thin given the asset composition. Cash of $50.3M recovers at 100% ($50.3M). Net receivables of $9.4M (gross $9.5M, implying minimal reserve) recover at 90-95% (~$8.5-9.0M). Inventory of $9.0M (finished goods $5.1M, raw materials $3.9M) recovers at 60% (~$5.4M). PP&E net of $0.7M recovers at 50-70% (~$0.3-0.5M). Intangibles of $0.1M and ROU assets of $2.9M recover at 0%. Estimated gross liquidation proceeds: approximately $64-65M. Against face-value liabilities of $14.0M (current $10.6M including $4.5M revolving credit drawn, $2.1M AP, $1.7M accrued employee, $0.5M deferred revenue current; non-current $3.4M including $2.9M operating lease liability non-current and $0.4M other), estimated net recovery to equity is approximately $50-51M — modestly positive. The CIBC revolving credit facility ($4.5M drawn, classified entirely as current) matures March 3, 2027; this creates near-term refinancing exposure. The company burned $8.6M in operating cash in Q1 2026 against a starting cash balance of $59.7M (year-end 2025), leaving $50.3M at quarter-end. At the Q1 2026 burn rate, the runway is approximately 5-6 quarters, consistent with management's 12-month sufficiency assertion. Accumulated deficit of $294.8M reflects persistent structural losses. The large ROU asset ($2.9M) is matched by an offsetting lease liability ($3.0M total operating lease liability), with undiscounted future lease payments of $3.7M extending beyond one year — these obligations do not extinguish in liquidation. The prior filing (10-K, December 31, 2025) showed total assets of $77.5M and cash of $59.7M; quarter-over-quarter total assets declined $4.0M, predominantly from cash burn. No goodwill is carried. Intangibles ($0.1M) are de minimis and zero-valued under liquidation. ROU assets are carried at $2.9M versus $0.2M at year-end 2025 — the filing discloses a new lease commenced in Q1 2026 adding $2.9M in Canada ROU assets, which materially increased both the ROU asset and corresponding lease liability. This new lease obligation ($2.9M non-current + $68K current) is a new liquidation-facing liability that did not exist at December 31, 2025. Filing discusses inventory write-downs as a component of cost of sales in MD&A but does not separately tag a write-down amount in XBRL.
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