CID Holdco Faces Second Nasdaq Delisting Ground and $1.06M Loan Default Foreclosure Threat
DAIC sits 57% above its 52-week low of $0.413.
Summary
CID Holdco received a second Nasdaq delisting determination for failing the $15M public float rule and a default notice from lender LHT I demanding $1.06M and threatening foreclosure on material assets.
Key Events · Legal and Risk Events · DAIC
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Second Nasdaq Delisting Ground
Nasdaq issued an Additional Staff Determination on August 12, 2026, citing failure to maintain the $15M MVPHS requirement under Rule 5450(b)(2)(C); the company missed the August 10, 2026 compliance deadline.
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Loan Default and Foreclosure Threat
LHT I, LLC declared a default under the Loan Agreement for missed monthly payments since January 2026 and the delisting determination, demanding $1,057,417.37 and assembly of collateral by August 13, 2026.
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Material Asset Transfer Expected
The company expects LHT I to proceed with foreclosure, which would transfer a material portion of its operations and assets.
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Hearing Requested
The company timely requested a hearing before the Nasdaq Hearings Panel and paid the $20,000 fee, staying suspension pending the panel's written decision.
Analysis · DAIC · Technology
The company now confronts two independent Nasdaq delisting determinations—the initial $50M MVLS failure and a newly disclosed $15M MVPHS failure—while lender LHT I has declared a default on the senior secured convertible note and demanded collateral assembly, threatening foreclosure on a material portion of the company's assets. The $1,057,417.37 default amount is nearly 84% of the company's entire market cap, and the company itself expects foreclosure to transfer a material portion of its operations. This compounds an already dire situation: the company has been exploring strategic alternatives, furloughing employees, and taking highly dilutive financing since May. The hearing before the Nasdaq Hearings Panel is the only near-term event that could preserve the listing, but the company offers no assurance it will prevail.
How filings like this one have moved
In the 30 days to Oct 18, 2026, 43.6% of the 289 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.46%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DAIC was trading at $0.65 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.3M. The 52-week trading range was $0.41 to $127.25. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.