Case filing & court posture: Flipcause, Inc., an Oakland-based SaaS platform providing fundraising and payment-processing tools for nonprofits, filed for chapter 11 on December 19, 2025 in the District of Delaware (Case No. 25-12246). Dkt. 1 Judge Thomas M. Horan presides. The filing followed a November 2025 California Attorney General cease-and-desist order and Stripe's December 4, 2025 termination of payment processing services, which froze approximately $2.2 million in reserves. Dkt. 4
Liquidity & financing path: At filing, the Debtor held only approximately $70,000 in available operating cash after Stripe imposed a 100% hold on credit reserves. Dkt. 4 The Debtor sought interim authority to use cash collateral. Dkt. 11 The Debtor carried approximately $1.2 million in secured debt to Grand Avenue Investments LP and approximately $35 million in unsecured obligations, including over $29 million owed to nonprofit clients.
Trustee appointment: The California Attorney General moved for appointment of a chapter 11 trustee on January 5, 2026, citing concerns over prepetition insider transfers totaling approximately $3.83 million in the 90 days before filing. The Court directed appointment of a trustee on January 13, 2026 , and Jeffrey T. Testa was approved as chapter 11 trustee on January 22, 2026. An official committee of unsecured creditors was appointed on January 28, 2026.
Sale process: The Court approved bid procedures for a section 363 sale of substantially all of the Debtor's assets on February 5, 2026. Dkt. 109 The auction is scheduled for March 3, 2026, with a sale hearing set for March 17, 2026. Dkt. 113
Current status: The case is in the pre-auction marketing and bid solicitation phase under the Trustee's direction. First-day relief motions remain pending, with an adjourned hearing on interim cash collateral and other first-day matters. Dkt. 108 The 341 meeting of creditors was held and continued to March 6, 2026. Dkt. 115
