Quince Therapeutics, Inc. Liquidation Value

Quince Therapeutics (QNCX) is a late-stage biotech that, as of March 31, 2026, has no viable product pipeline. Its sole clinical asset, eDSP (dexamethasone sodium phosphate encapsulated in autologous red blood cells), failed its Phase 3 NEAT trial in January 2026, missing both primary and key secondary endpoints. Management has explicitly stated eDSP cannot be developed further in any indication. The company carries an accumulated deficit of $424.5 million and has formal going concern disclosure. The MFFAIS-computed liquidation value is negative $19.7 million, which is consistent with the balance sheet structure described in this filing.

On the asset side, the dominant recoverable asset is cash and cash equivalents of $18.2 million as of March 31, 2026, recoverable at 100%. Subsequent to period-end, the company raised an additional $5.4 million via ATM common stock issuance (2,510,000 shares), bringing total available liquidity to approximately $23.6 million before ongoing cash burn. The company also held short-term investments that produced $12.0 million in investing cash inflows during Q1 2026 via maturities. Intangible assets, which consisted of IPR&D and a tradename from the October 2023 EryDel acquisition, were written to zero via a $67.8 million non-cash impairment charge in Q1 2026. Under the liquidation lens, intangibles carry 0% recovery, so this impairment charge confirms rather than creates the zero-recovery position on that asset class. PP&E is described as primarily maintained in Italy; the filing does not separately disclose the carrying value in XBRL tags available for this period.

On the liability side, the EIB loan—tranches A and B drawn on a 30.0 million euro facility—was settled in full on March 27, 2026 for 4.8 million euros ($5.5 million), generating a $12.2 million fair value gain on debt settlement recognized in Q1 2026. The loan is fully extinguished as of period-end. Contingent consideration from the EryDel acquisition was also determined uncollectable given trial failure, and was written to zero, generating a $64.3 million fair value gain. Warrant liability from the June 2025 private placement carried a fair value of $0.7 million at March 31, 2026, which represents a face-value claim on equity. Accrued expenses were approximately $3.4 million. Operating lease obligations remain on the balance sheet (Italian operations); the filing does not separately disclose ASC 842 ROU asset or lease liability balances in available XBRL.

The Q1 2026 GAAP net income of $35.9 million is entirely non-cash driven: $64.3 million contingent consideration gain, $12.2 million debt fair value gain, and $31.1 million warrant fair value gain, offset by the $67.8 million impairment charge. Operating cash burn was $7.6 million for the quarter. At the filing date, management does not believe cash is sufficient for the next 12 months. The company is pursuing a reverse merger as its primary strategic path; no agreements are in place. Pending Nasdaq delisting risk (minimum market value of listed securities non-compliance, deadline September 14, 2026) adds execution risk to the reverse merger path. Post-quarter severance costs of $0.8 million are expected as restructuring continues. The filing discusses gain on settlement of accounts payable of $2.6 million in MD&A but this concept is not separately tagged in XBRL. TAG_CONTEXT provided is empty; no XBRL-tagged balance sheet line items are available for this filing period, precluding tag-level liquidation analysis.