QuoteMedia Inc. (QMCI) presents a deeply negative liquidation posture as of March 31, 2026. The MFFAIS-calculated cash liquidation value is -$6.18M and the liquid liquidation value is -$4.98M, consistent with the balance sheet structure visible in this filing. The company carries a GAAP stockholders' deficit of -$1.46M at March 31, 2026, deteriorating from -$0.84M at December 31, 2025, driven by Q1 2026 net loss of $621K. The accumulated deficit stands at -$24.13M, up from -$23.51M at December 31, 2025. Under a liquidation lens, the asset side is dominated by intangibles (capitalized application software, amortized over 3 years) and right-of-use assets, both of which receive zero or near-zero recovery haircuts. Cash of $522K at quarter-end (100% recovery) represents the primary liquid asset. Accounts receivable carries an allowance for doubtful accounts of $370K at March 31, 2026, reduced from $570K at December 31, 2025; net AR would recover at approximately 90-95%. The filing does not separately disclose gross AR or total tangible asset values in the XBRL tag context provided, so a precise liquidation waterfall cannot be constructed from XBRL alone. On the liability side, the Series A Redeemable Convertible Preferred Stock (123,685 shares outstanding, carried at $2.98M) has a liquidation preference of $25.00 per share ($3.09M aggregate face value), which sits senior to common equity in any winding-up scenario and must be satisfied before any residual accrues to common. Total operating lease liabilities of $142.5K remain on-balance-sheet under ASC 842 and would be face-value obligations in a wind-up. Deferred revenue of $1.81M (of which $1.69M is current) is a performance obligation that extinguishes economically on cessation of operations, but accrued cost exposure to fulfill is disclosed as minimal. Related-party amounts payable to 410734 B.C. Ltd. ($83K), Bravenet ($73.6K accrued fees plus $71.8K advance), and CEO Keith Randall ($151.3K unreimbursed expenses) total approximately $380K and would be senior trade/unsecured claims in liquidation. Working capital deficit is stated at -$4.65M at March 31, 2026. The filing discloses $7.48M in unrecognized compensation expense tied to liquidity-event-contingent preferred stock warrants; these do not trigger in a standard wind-up absent a qualifying liquidity event, so they do not directly load the liquidation liability stack, but they underscore the complexity of any structured exit. The prior filing (10-K for FY2025) confirms the material weakness in internal controls (lack of segregation of duties) persists, which adds execution risk to any orderly asset disposition. Overall, equity recovery to common stockholders under a stop-and-liquidate scenario is negative and likely remains so by a margin of several million dollars even after zero-valuing all intangibles and applying standard haircuts to the modest liquid asset base.
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