Rocket Pharmaceuticals (RCKT) presents a deeply negative liquidation posture as of March 31, 2026. Total reported assets are $285.4M against total liabilities of $47.4M, yielding GAAP book equity of $238.0M. Under the liquidation lens, asset-side haircuts eliminate most of that equity buffer. Cash and cash equivalents of $49.6M receive 100% recovery. Short-term investments of $94.8M (described as primarily U.S. Treasury Securities) receive near-100% recovery, bringing liquid asset recovery to approximately $144.4M — consistent with the company's own disclosure of $144.4M in cash, equivalents, and investments. Prepaid expenses of $5.4M recover at a nominal fraction. Property, plant, and equipment, net of $26.7M (gross $57.4M, accumulated depreciation $30.7M) includes the Cranbury, NJ cGMP manufacturing facility; applying a 50-60% haircut to net book value yields $13-16M of estimated recovery. Goodwill of $39.2M (from the Renovacor acquisition) receives zero recovery under the liquidation lens, as does $25.2M of net intangible assets. The finance lease ROU asset of $39.7M carries no direct recovery — the corresponding $21.3M finance lease liability stays at face value and represents a committed obligation to the landlord regardless of winddown. Operating lease ROU of $3.1M similarly zeros out. The $1.49B accumulated deficit confirms the cumulative cash consumption since inception. On the liability side, total liabilities of $47.4M are modest: accounts payable and accrued liabilities of $21.5M, current finance lease of $1.9M, non-current finance lease of $19.3M, operating lease liabilities of $3.5M, and other non-current liabilities of $1.1M. All stay at face value. Netting approximately $144M of liquid assets against $47M of face-value liabilities yields rough equity recovery in the range of $95-100M before transaction costs and any winddown liabilities — a materially lower figure than GAAP book equity. The company has no revenue; KRESLADI received FDA accelerated approval in March 2026 but no product revenue has been recognized. A subsequent event of material significance: on April 26, 2026, RCKT entered a definitive agreement to sell its Priority Review Voucher (PRV) for $180M. This transaction is not reflected in the March 31 balance sheet. If and when closed, PRV proceeds would increase the liquid asset base by $180M, substantially improving the short-term liquidity and liquidation recovery profile. The PRV sale proceeds are subject to HSR clearance and standard closing conditions. The filing notes management believes existing cash plus PRV proceeds fund operations into Q2 2028. Two pending securities class action lawsuits and a derivative action related to RP-A501 Phase 2 SAEs represent unquantified contingent liabilities not separately accrualized on the balance sheet; these could materially affect recovery in a winddown scenario. The RGNX license agreement requires payment of 20% of PRV proceeds to RGNX — filing does not separately tag this obligation in XBRL, but it is disclosed in the prior 10-K intellectual property footnotes; at $180M gross PRV proceeds, $36M would be owed to RGNX, reducing net PRV proceeds to approximately $144M. This contingent royalty is discussed in MD&A/footnotes of the prior filing but is not separately XBRL-tagged in the current period filing.
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