CareDx (CDNA) as of March 31, 2026 presents a liquidation posture that is modestly positive at the liquid asset level but dependent heavily on the quality and collectability of its cash and marketable securities position. Total reported assets are $411.1M against total liabilities of $97.5M, producing GAAP book equity of $313.5M. Under liquidation haircuts, the picture narrows substantially. Cash and restricted cash of ~$78.5M recovers at par (~$78.5M). Marketable securities (current $109.3M plus noncurrent $10.9M, total ~$120.2M) are primarily corporate debt and U.S. agency securities per MD&A; haircut to 95% yields ~$114.2M. Accounts receivable of $44.6M at 90-95% yields ~$40.1-42.4M. Inventory of $26.4M at 60% yields ~$15.8M. PP&E net $33.2M at 50-60% yields ~$16.6-19.9M. Finite-lived intangibles net $28.6M and goodwill $40.3M and indefinite-lived intangibles $3.5M receive zero recovery under the liquidation lens. Right-of-use assets of $21.2M (ASC 842) receive zero or negligible value as they represent contractual obligations, not separable assets. Total haircutted asset recovery approximates $265-$271M. Against this, liabilities remain at face: total liabilities $97.5M, of which current liabilities are $79.2M (accounts payable $9.1M, accrued liabilities $49.5M, employee compensation $20.5M, deferred revenue $5.6M, customer refund liability $8.0M, contingent consideration current $0.1M) and noncurrent liabilities $18.4M (operating lease noncurrent $17.8M, deferred tax $0.1M, contingent consideration noncurrent $0.2M, other noncurrent $0.4M). Operating lease commitments total $27.6M undiscounted (ASC 842 ROU liability on balance sheet $24.5M); these survive on liquidation. Estimated liquidation equity recovery is approximately $168-$174M, compared to GAAP book equity of $313.5M — the gap driven almost entirely by writing off ~$72M of intangibles/goodwill and ~$21M of ROU assets against face-value lease obligations. The company had no debt outstanding at period end, which is a material positive. The swing from Q1 2025 (cash used in operations of $26.6M) to Q1 2026 (cash provided of $4.3M) and a $17.7M favorable revenue recognition catch-up adjustment (ContractWithCustomerLiabilityCumulativeCatchUpAdjustmentToRevenueChangeInEstimateOfTransactionPrice) improved the near-term liquidity picture materially. The prior filing (10-K, December 31, 2025) disclosed a material weakness in internal controls over financial reporting that was remediated during FY2025; the current 10-Q confirms no recurrence. A pending qui tam action (relator continuing after DOJ declination) and an active Medicare LCD repricing process for AlloSure constitute contingent liabilities not separately tagged in XBRL and not accrued on the face of the balance sheet; these are disclosed in MD&A and Note 8 narrative but absent from TAG_CONTEXT as discrete XBRL items.
▼ Community Notes