Quantum Genesis AI Corp. (QTZM) presents one of the most extreme liquidation-value profiles possible for a public registrant. As of January 31, 2026, total assets consist entirely of $59 in cash — the sole recoverable asset at 100% haircut rate. Total liabilities at face value are $418,401, comprised of accounts payable and accrued expenses ($169,733), notes payable ($232,066), and related party payables ($16,602). Liquidation recovery to equity is negative $418,342, representing a 100% loss of equity and a shortfall to creditors of effectively the full liability stack, since the asset base covers less than 0.02% of obligations. There are no PP&E, no inventory, no receivables, and no intangibles on the balance sheet — a structurally clean but catastrophically undercapitalized position. The filing carries a formal going concern qualification. The company has generated zero revenue across all periods presented. The most significant event in the current period is a non-cash debt conversion on January 20, 2026: 2,010,000 shares of common stock were issued at a recorded value of $4,401,900 to retire $60,300 in notes payable and $15,728 in accrued interest, generating a recognized loss on debt settlement of $4,325,872. This transaction does not improve the liquidation posture — it extinguished $76,028 in face-value liabilities but increased the accumulated deficit by $4.3M and is accretive to APIC only on a book basis. The prior period (Q1 FY2026, ended October 31, 2025, filed as 10-Q/A) showed total assets of $184, total liabilities of $490,769, and working capital deficit of $490,585. The sequential improvement in working capital deficit from $490,585 to $418,342 is entirely attributable to the non-cash debt conversion, not cash generation or operations. Notes payable declined from $249,081 at July 31, 2025 to $232,066 at January 31, 2026 — the net of $43,285 in new note proceeds drawn and $60,300 converted to equity. The company remains entirely dependent on external note financing (single noteholder, 10% rate, due on 10 days written notice) to fund even minimal operating expenses of $43,810 in cash burn over the half-year. The prior filing (10-Q/A for Q1 FY2026) disclosed intellectual property including a pending patent application (US20250146029A1) assigned via a post-period Assignment Agreement; this IP is discussed in that filing's MD&A but is not separately tagged in XBRL and carries zero balance sheet value under standard intangible accounting, consistent with the 0% liquidation recovery rate for intangibles.
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