Cardiff Oncology, Inc. Liquidation Value

Cardiff Oncology (CRDF) is a pre-revenue clinical-stage oncology company with a single asset, onvansertib (PLK1 inhibitor), in Phase 2 trials. Under the liquidation lens, recovery to equity is negative and materially so. The company carries no debt, which is the only structural positive; the entire liability stack consists of current operating obligations.

As of March 31, 2026, CRDF reported $46.1 million in cash, cash equivalents, and short-term investments. Total current liabilities include accrued liabilities of $8.3 million (up from $7.6 million at December 31, 2025), driven primarily by accrued compensation of $4.5 million (versus $2.4 million at year-end, reflecting severance for departing CEO Erlander and CFO Levine) and accrued clinical trials of $2.9 million (down from $3.8 million as trial activity wound down). The company also carries an operating lease liability (magnitude not separately tagged in XBRL for this filing but referenced in MD&A). There is no long-term debt, no pension, and no convertible instruments outstanding at face value.

Applying standard haircuts: cash and equivalents and short-term investments recover at approximately 100%, PP&E net of $491K recovers at 50-70% (roughly $250-340K), intangibles (onvansertib license rights, patents) recover at 0% under the liquidation lens. The total recoverable asset pool is effectively the cash/investment balance plus a negligible PP&E residual. Against total liabilities at face value — $8.3 million accrued liabilities plus any operating lease tail plus potential severance obligations under executive agreements — equity recovery is marginally positive in an immediate wind-down scenario given the large cash cushion relative to the small liability base.

The critical constraint is runway, not immediate liquidation math. Management disclosed going concern uncertainty, projecting capital sufficiency only through Q1 2027 at current burn rates (~$12.3 million operating cash outflow per quarter Q1 2026, consistent with Q1 2025's $12.8 million). Working capital declined from $43.7 million at December 31, 2025 to $32.9 million at March 31, 2026 — a $10.8 million drawdown in one quarter. At this burn rate, the $46.1 million cash/investment balance has roughly 3-4 quarters of life.

A material contingent liability exists but is unquantifiable: Nerviano Medical Sciences notified CRDF of alleged material breach of the onvansertib license agreement in February 2026. If the license is terminated, onvansertib has zero recoverable value under liquidation (already $0 in this analysis), but it would also eliminate any optionality that might attract a strategic buyer at above-liquidation prices. This risk is disclosed in the Commitments and Contingencies note and in MD&A but is not separately tagged in XBRL.

The MFFAIS-provided liquidation value metrics ($974K CLV, $1.16M LLV/OLV) are directionally consistent with a near-zero or marginally positive equity recovery in immediate liquidation, though these figures appear to reflect only a subset of balance sheet items as captured at the time of model calculation. The prior filing (10-K, December 31, 2025) is the comparator period for balance sheet changes discussed above. No XBRL tags were emitted in the TAG_CONTEXT input for this filing, so no individual balance sheet line items can be separately flagged in tag_insights.