RemSleep Holdings Inc. (RMSL) presents a deeply negative liquidation recovery posture as of December 31, 2025. Total reported assets are $340K against total liabilities of $308K, yielding a reported book equity of $32K. Under liquidation haircuts, the recovery picture deteriorates further: cash of $215K recovers at 100%; inventory of $46K recovers at roughly $28K (60%); PP&E net of $38K recovers at roughly $19-27K (50-70%); the ROU asset of $26K is assigned zero recovery value under liquidation. All other current assets ($4K prepaids, $10K noncurrent other assets) are largely non-recoverable. Gross liquidation asset recovery approximates $262-270K against liabilities at face value of $308K, yielding an estimated negative equity recovery of approximately ($38K) to ($46K), consistent with the MFFAIS-reported OLV of negative $47K. The liability stack includes $52K convertible debt (net of discount), $63K derivative liability, $26K operating lease obligation, $115K accounts payable, $46K accrued compensation to former chairman, and $4.6K accrued interest. All liabilities stay at face value in liquidation. The operating lease (Blackshear, GA facility, 24-month term through May 2027) does not extinguish on windup; the remaining undiscounted obligation is $27K. The dominant driver of the period's equity erosion is $2.16M in non-cash related-party compensation: 1.6M Series C preferred shares issued to Thomas Wood (CEO, deceased February 26, 2026) and 400K shares to Anita Michaels, valued at $0.0036 per common share equivalent, totaling $2.16M in stock-based expense. This is the primary reason net loss of $3.02M in 2025 was nearly triple the 2024 net loss of $1.08M. Additional cash burn of $503K from operations reflects minimal revenue ($17K vs. $117K in 2024), as the company transitioned from selling the ResPlus CPAP machine to its FDA-cleared DeltaWave product. The 1800 Diagonal convertible note program continued in 2025, with $254K of new proceeds and $402K of principal/interest/fees converted into 123.8M shares of common stock; two notes maturing March/May 2026 remain outstanding with combined principal of $80K. A subsequent event of material significance: Thomas Wood died February 26, 2026, and Anita Michaels (his sister and COO) reconstituted the board effective March 2, 2026, inheriting his super-voting preferred shares. This creates significant governance concentration risk in liquidation scenarios. The filing also discloses that disclosure controls and internal controls were not effective as of December 31, 2025, a persistent material weakness. The filing does not separately tag accrued compensation to Russell Bird ($46K) in a standalone XBRL line; it appears under AccruedLiabilitiesCurrent. The DeferredTaxAssetsOperatingLossCarryforwardsDomestic tag shows an apparent filing error: value is reported as $15,340,108 but context suggests it should be approximately $1,534,010 (NOL carryforward of $7.3M at 21%); this appears to be a XBRL data quality issue and should not be used at face value.
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