CID HoldCo Inc. (NASDAQ:DAIC) shares fell 48.36% in Tuesday’s after-hours trading after the company disclosed an additional Nasdaq listing deficiency and a loan default that could lead to foreclosure on a material portion of its assets and operations.
The stock closed Tuesday’s regular session up 14.52% at $0.64 before falling 48.36% to $0.33 in after-hours trading.
CID HoldCo is a technology company operating through its subsidiaries.
Nasdaq Delisting Risk Grows
CID HoldCo said it received an additional staff determination from Nasdaq identifying another basis for potential delisting of its common stock.
Nasdaq previously notified the company that its market value of publicly held shares had remained below the required $15 million threshold for 30 consecutive trading days. The company was given until Aug. 10 to regain compliance but failed to do so.
Nasdaq had also determined on Aug. 6 that CID HoldCo failed to meet the $50 million minimum Market Value of Listed Securities requirement.
The company has requested a hearing before the Nasdaq Hearings Panel and paid a $20,000 hearing fee. The hearing request stays the suspension of the company’s securities pending a written decision, meaning DAIC shares remain listed on Nasdaq for now.
CID HoldCo said it is pursuing potential strategic alternatives to address the listing deficiencies, but warned there is no assurance the Hearings Panel will allow the company to remain listed or that it will regain compliance.
Loan Default, Foreclosure Risk
CID HoldCo also disclosed a default under its secured loan agreement with LHT I, LLC.
The company said it received a default notice on Aug. 12 alleging numerous failures to make required minimum monthly installment payments beginning in January 2026, along with the Nasdaq delisting determination.
According to the default notice, the amount owed was $1.06 million as of Aug. 12, including attorneys’ fees and costs.
LHT I demanded that CID HoldCo assemble its collateral and warned that it could exercise its rights under the loan agreement, including foreclosure on the company’s assets.
CID HoldCo said it expects LHT I to proceed with foreclosure, which would result in the transfer of a material portion of the company’s operations and assets.
Price Action
CID HoldCo has a market capitalization of approximately $1.25 million.
The stock has a 52-week high of $127.25 and a 52-week low of $0.41. DAIC shares are down 99.45% over the past year.
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