CID HoldCo, Inc. Reports Lender Default Notice and Nasdaq Delisting Risk

What Happened CID HoldCo, Inc. (DAIC) filed an 8-K reporting that its senior secured convertible note (under a Loan Agreement dated December 4, 2025) was assigned to LHT I, LLC on June 22, 2026. On August 12, 2026 the company received a Notice of Default and Demand to Assemble Collateral from LHT I’s counsel, alleging missed Minimum Monthly Installment Payments beginning in January 2026 and citing Nasdaq’s staff delisting determination effective August 6, 2026. The Default Notice states the amount due as of August 12, 2026 is $1,057,417.37 (including attorneys’ fees and costs) and demanded immediate assembly of collateral, warning that LHT I would exercise remedies — including foreclosure — if the company did not cooperate by 5:00 p.m. ET on August 13, 2026. The company expects LHT I may proceed with foreclosure, which it says could transfer a material portion of the company’s operations and assets.

Separately, on August 12, 2026 Nasdaq issued an Additional Staff Determination that provides an additional basis to delist CID’s common stock from The Nasdaq Global Market for failing to meet the Market Value of Publicly Held Shares (MVPHS) $15,000,000 minimum by the August 10, 2026 deadline. This follows an Initial Staff Determination dated August 6, 2026 for failure to meet the $50 million Market Value of Listed Securities (MVLS) test. The company has requested a hearing before the Nasdaq Hearings Panel, paid the $20,000 hearing fee, and the common stock remains listed pending the Hearings Panel’s decision.

Key Details

• Loan Agreement and Senior Secured Convertible Note dated: December 4, 2025.
• Note assignment: J.J. Astor & Co. → LHT I, LLC by Note Purchase and Assignment Agreement on June 22, 2026.
• Default Notice received: August 12, 2026; Default Amount claimed: $1,057,417.37 (includes attorneys’ fees).
• Nasdaq timeline: notified Feb 10, 2026 of MVPHS deficiency; 180-day cure period ended Aug 10, 2026; Initial Staff Determination for MVLS dated Aug 6, 2026; Additional Staff Determination dated Aug 12, 2026. Hearing requested and $20,000 fee paid; listing remains stayed pending Hearings Panel decision.

Why It Matters These events create two immediate risks for investors: (1) creditor action — including possible foreclosure — that could transfer a material portion of the company’s assets and operations to the lender, and (2) potential delisting from Nasdaq if the Hearings Panel does not grant continued listing. Both outcomes could materially affect the company’s operations, liquidity and the tradability and value of its common stock. The company is pursuing strategic alternatives and appealing the delisting decisions, but there is no assurance of a favorable outcome.