Reborn Coffee, Inc. (REBN) presents a deeply negative liquidation posture as of December 31, 2025. MFFAIS reports a cash liquidation value of approximately -$5.4M, liquid liquidation value of -$4.5M, and operating liquidation value of -$4.4M, consistent with balance-sheet construction from the filed figures. Total assets of $13.2M face total liabilities of $8.5M at face value, yielding reported book equity of approximately $4.6M. However, under liquidation haircuts, recoverable asset value collapses materially. Cash of $2.6M recovers at par. Accounts receivable of $0.95M (net of $75.7K allowance) recovers at roughly 90-95%, or approximately $0.85-0.90M. Inventory of $58K recovers at 60%, or roughly $35K. PP&E net book value of $2.9M (gross $4.8M less $1.9M accumulated depreciation) recovers at 50-70%, or approximately $1.4-2.0M, against which a $444K impairment was already recorded in 2025 for Korea and Malaysia subsidiaries whose asset groups were written to negligible fair value. The $2.2M operating lease ROU asset has zero liquidation recovery — it represents a right, not a tangible asset, and is offset by the $2.2M lease liability at face value on the other side. The $1.0M long-term prepayment (non-current other assets) represents an advance on a planned real estate acquisition; recovery is uncertain and should be discounted heavily, likely to zero absent a completed transaction. The $2.0M other receivables current (a note receivable from Reborn Logistics to a related party) carries substantial recovery uncertainty given the intra-group, demand-basis structure. On the liability side, face-value obligations include: operating lease liabilities totaling $2.23M ($0.88M current, $1.35M non-current); convertible notes payable net of discount of $3.27M (gross $4.17M face, maturing in 2026, with active forbearance discussions with Arena Investors as of April 2026); EIDL loans of $0.50M face (30-year term, 3.75% interest, not accelerable in ordinary wind-up but would need to be extinguished); other loans payable of $0.28M; bank loans of $0.11M; shareholder and related-party demand loans of $0.22M combined; and a PPP loan balance of $52K. Total debt stack excluding lease liabilities approximates $4.4M. The convertible debenture facility carries a derivative liability of $0.50M bifurcated under ASC 815. G&A of $7.75M in 2025 dwarfs revenue of $8.1M, and the company generated a net loss of $9.1M (roughly double the prior year's $4.8M loss), with $8.4M of that attributable to domestic operations. The accumulated deficit stands at -$30.7M. The company received a Nasdaq minimum equity deficiency notice in December 2025 and regained compliance only after large December 2025 equity issuances totaling approximately $7.3M in gross proceeds. Filing discusses the $2.0M related-party promissory note to Reborn Logistics in MD&A but does not separately tag the receivable as a standalone XBRL balance-sheet line distinct from OtherReceivablesNetCurrent.
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