Protagenic Therapeutics (PTIX) is a pre-revenue pharmaceutical development company. As of December 31, 2025, the liquidation analysis produces a deeply negative recovery to equity. Total assets of $4.43M are overwhelmingly offset by total liabilities of $6.82M — all classified as current — yielding reported stockholders' deficit of ($2.39M). Under liquidation haircuts, the picture is worse: cash of $2.21M recovers at 100% (~$2.21M); prepaid of $44K recovers at ~50% (~$22K); inventory of $1K is negligible; intangible assets of $2.09M (in-process R&D and assembled workforce, carried at cost from the May 2025 reverse merger with Phytanix Bio) recover at 0% under standard liquidation treatment; PP&E net of $39K recovers at ~60% (~$23K); VAT receivable of $42K at ~80% (~$34K). Total liquidation asset recovery approximates $2.29M against face-value liabilities of $6.82M, implying an equity recovery deficit of approximately ($4.5M). This is consistent with the MFFAIS CLV of ($2.40M), though the haircut-adjusted figure is materially worse. The liability stack is concentrated in current items: accounts payable $2.03M (up from $961K at March 31, 2025), notes payable current $3.16M (convertible notes with variable conversion prices, all past original June 2025 maturity), derivative liabilities $544K, related-party loans $840K (non-interest-bearing, no fixed repayment), and accrued liabilities $253K. A critical subsequent-event development dominates this filing: on February 17, 2026, PTIX and Phytanix Bio executed an Unwind Agreement rescinding the May 2025 reverse merger. Phytanix Bio was returned to its former stockholders, all merger consideration shares were forfeited back to PTIX, and PTIX paid $300K at closing plus $10K contingent. This unwind means the $2.09M of intangible assets (in-process R&D) and $39K net PP&E acquired in that merger, as well as the associated $857K of acquired AP, will be removed from the balance sheet in the subsequent period. Post-unwind, the legacy PTIX entity reverts to its pre-merger capital structure, stripping out both the Phytanix-originated assets and the Series C, C-1, and D preferred stock issued as merger consideration. The notes payable of $3.16M originated with Phytanix Bio and include $1.12M of additional debt recognized upon merger completion; the disposition of these notes post-unwind is not explicitly resolved in this filing. The PTIX filing discloses a going-concern runway only through approximately Q2 FY2027 (September 2026) based on $2.21M cash as of December 31, 2025. Management notes disclosed material weaknesses in internal controls. Filing discusses the unwind's balance-sheet impact in the subsequent events note but does not separately tag the post-unwind pro-forma balance sheet in XBRL.
▼ Community Notes