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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2024

 

OR

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                  to                  

 

Commission File Number: 001-36304

 

Phio Pharmaceuticals Corp.

(Exact name of registrant as specified in its charter)

 

Delaware 45-3215903
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

 

11 Apex Drive, Suite 300A, PMB 2006, Marlborough, MA 01752

(Address of principal executive office) (Zip code)

 

Registrant’s telephone number, including area code: (508) 767-3861

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value, $0.0001 per share PHIO The Nasdaq Capital Market

  

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

  

Large accelerated filer   ☐   Accelerated filer   ☐
Non-accelerated filer   ☒   Smaller reporting company   ☒
        Emerging growth company   ☐

  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

  

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

As of May 3, 2024, Phio Pharmaceuticals Corp. had 4,591,700 shares of common stock, $0.0001 par value, outstanding.

 

 

 

 

   

 

 

PHIO PHARMACEUTICALS CORP.

FORM 10-Q — QUARTER ENDED MARCH 31, 2024

 

INDEX

 

Part No.   Item No.   Description   Page
No.
             
I       FINANCIAL INFORMATION   3
             
    1   Financial Statements (Unaudited)   3
        Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023   3
        Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023   4
        Condensed Consolidated Statements of Preferred Stock and Stockholders’ Equity for the Three Months Ended March 31, 2024 and 2023   5
        Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023   6
        Notes to Condensed Consolidated Financial Statements   7
    2   Management’s Discussion and Analysis of Financial Condition and Results of Operations   14
    3   Quantitative and Qualitative Disclosures About Market Risk   18
    4   Controls and Procedures   18
             
II       OTHER INFORMATION   19
             
    1   Legal Proceedings   19
    1A   Risk Factors   19
    2   Unregistered Sales of Equity Securities and Use of Proceeds   20
    3   Defaults Upon Senior Securities   20
    4   Mine Safety Disclosures   20
    5   Other Information   20
    6   Exhibits   22
             
Signatures   23

 

 

 

 

 

 2 

 

 

PART I — FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)

(Unaudited)

 

         
   March 31,
2024		   December 31,
2023		 
ASSETS          
Current assets:          
Cash and cash equivalents  $6,475   $8,490 
Prepaid expenses and other current assets   373    832 
Total current assets   6,848    9,322 
Right of use asset   –    33 
Property and equipment, net   2    6 
Other assets   3    3 
Total assets  $6,853   $9,364 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $320   $657 
Accrued expenses   929    942 
Lease liability   –    35 
Total current liabilities   1,249    1,634 
Commitments and contingencies (Note 2)   –    – 
Stockholders’ equity:          
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; no shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively   –    – 
Common stock, $0.0001 par value, 100,000,000 shares authorized; 4,591,700 and 3,747,329 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively   –    – 
Additional paid-in capital   146,964    146,936 
Accumulated deficit   (141,360)   (139,206)
Total stockholders’ equity   5,604    7,730 
Total liabilities and stockholders’ equity  $6,853   $9,364 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 3 

 

 

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share data)

(Unaudited)

 

         
  

Three Months

Ended March 31,

 
   2024   2023 
Operating expenses:          
Research and development  $1,148   $2,134 
General and administrative   1,061    1,468 
Total operating expenses   2,209    3,602 
Operating loss   (2,209)   (3,602)
Total other income, net   55    – 
Net loss  $(2,154)  $(3,602)
Net loss per common share:          
Basic and diluted  $(0.47)  $(3.15)
Weighted average number of common shares outstanding:          
Basic and diluted   4,580,072    1,142,213 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 4 

 

 

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF

PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share data)

(Unaudited)

 

                             
   Series D Preferred Stock   Common Stock   Additional
Paid-in		   Accumulated     
For the Three Months Ended March 31, 2024  Shares   Amount   Shares   Amount   Capital   Deficit   Total 
Balance at December 31, 2023   –   $–    3,747,329   $–   $146,936   $(139,206)  $7,730 
Issuance of common stock upon exercise of warrants   –    –    826,370    –    –    –    – 
Issuance of common stock upon vesting of restricted stock units   –    –    24,198    –    –    –    – 
Shares withheld for payroll taxes   –    –    (6,197)   –    (4)   –    (4)
Stock-based compensation expense   –    –    –    –    32    –    32 
Net loss   –    –    –    –    –    (2,154)   (2,154)
Balance at March 31, 2024   –   $–    4,591,700   $–   $146,964   $(141,360)  $5,604 

 

                             
   Series D Preferred Stock   Common Stock   Additional
Paid-in		   Accumulated     
For the Three Months Ended March 31, 2023  Shares   Amount   Shares   Amount   Capital   Deficit   Total 
Balance at December 31, 2022   1   $2    1,139,024   $–   $139,218   $(128,380)  $10,838 
Cash-in-lieu of fractional shares for reverse stock split   –    –    (1,706)   –    (11)   –    (11)
Redemption of preferred stock   (1)   (2)   –    –    –    –    – 
Issuance of common stock upon vesting of restricted stock units   –    –    18,080    –    –    –    – 
Shares withheld for payroll taxes   –    –    (4,816)   –    (25)   –    (25)
Stock-based compensation expense   –    –    –    –    111    –    111 
Net loss   –    –    –    –    –    (3,602)   (3,602)
Balance at March 31, 2023   –   $–    1,150,582   $–   $139,293   $(131,982)  $7,311 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

 

 

 

 5 

 

 

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)
(Unaudited)

 

           
  

Three Months Ended

March 31,

 
   2024   2023 
Cash flows from operating activities:          
Net loss  $(2,154)  $(3,602)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   1    16 
Amortization of right of use asset   33    31 
Loss on disposal of property and equipment   3    – 
Stock-based compensation   32    111 
Changes in operating assets and liabilities:          
Prepaid expenses and other assets   459    314 
Accounts payable   (337)   123 
Accrued expenses   (13)   331 
Lease liability   (35)   (32)
Net cash used in operating activities   (2,011)   (2,708)
Cash flows from financing activities:          
Cash in lieu of fractional shares for reverse stock split   –    (11)
Redemption of Series D preferred stock   –    (2)
Payment of taxes on net share settlements of restricted stock units   (4)   (25)
Net cash used in financing activities   (4)   (38)
Net decrease in cash, cash equivalents and restricted cash   (2,015)   (2,746)
Cash, cash equivalents and restricted cash at the beginning of period   8,490    11,831 
Cash, cash equivalents and restricted cash at the end of period  $6,475   $9,085 

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals above:

         
   March 31, 
   2024   2023 
Cash and cash equivalents  $6,475   $9,035 
Restricted cash   –    50 
Cash, cash equivalents and restricted cash  $6,475   $9,085 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

 

 

 

 6 

 

 

PHIO PHARMACEUTICALS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

 

1. Organization and Significant Accounting Policies

 

Nature of Operations

 

Phio Pharmaceuticals Corp. (“Phio” or the “Company”) is a clinical stage biotechnology company whose proprietary INTASYL™ small interfering RNA gene silencing technology is designed to make immune cells more effective in killing tumor cells. The Company is developing therapeutics that are designed to leverage INTASYL to precisely target specific proteins that reduce the body’s ability to fight cancer, without the need for specialized formulations or drug delivery systems.

 

Phio was incorporated in the state of Delaware in 2011 as RXi Pharmaceuticals Corporation. On November 19, 2018, the Company changed its name to Phio Pharmaceuticals Corp., to reflect its transition from a platform company to one that is fully committed to developing groundbreaking immuno-oncology therapeutics.

 

Basis of Presentation

 

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures that are included in the Company’s annual consolidated financial statements, but that are not required for interim reporting purposes, have been condensed or omitted. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of the condensed consolidated financial statements have been included.

 

These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (the “2023 Form 10-K”). Interim results are not necessarily indicative of results for a full year.

 

Principles of Consolidation

 

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MirImmune, LLC. All material intercompany accounts have been eliminated in consolidation.

 

Segments

 

The Company operates as one operating segment and all assets are located in the United States.

 

Use of Estimates

 

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas subject to significant estimates and judgement include, among others, those related to the fair value of equity awards, accruals for research and development expenses, useful lives of property and equipment, and the valuation allowance on the Company’s deferred tax assets. On an ongoing basis the Company evaluates its estimates and bases its estimates on historical experience and other relevant assumptions that the Company believes are reasonable under the circumstances. Actual results could differ materially from these estimates.

 

 

 

 7 

 

 

Liquidity

 

The Company has reported recurring losses from operations since its inception and expects to continue to have negative cash flows from operations for the foreseeable future. Historically, the Company’s primary source of funding has been from sales of its securities. The Company’s ability to continue to fund its operations is dependent on obtaining funding from third parties, such as proceeds from the issuance of debt, sale of equity, or strategic opportunities, in order to maintain its operations. This is dependent on a number of factors, including the market demand or liquidity of the Company’s common stock. There is no guarantee that debt, additional equity or other funding will be available to the Company on acceptable terms, or at all. If the Company fails to obtain additional funding when needed, the Company would be forced to scale back or terminate its operations or seek to merge with or to be acquired by another company.

 

The Company has limited cash resources, has reported recurring losses from operations since inception, has negative operating cash flows and has not yet received product revenues. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern, and the Company’s current cash resources may not provide sufficient capital to fund operations for at least the next 12 months from the date of the release of these condensed consolidated financial statements. The continuation of the Company as a going concern depends upon the Company’s ability to raise additional capital through an equity offering, debt offering and/or strategic opportunity to fund its operations. There can be no assurance that the Company will be successful in accomplishing these plans in order to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Summary of Significant Accounting Policies

 

Cash and Cash Equivalents

 

Cash and cash equivalents include unrestricted cash accounts, money market investments and highly liquid investment instruments with original maturity of three months or less at the date of purchase.

 

Other than as set forth above, there have been no material changes to the significant accounting policies disclosed in the Company’s 2023 Form 10-K.

 

Recent Accounting Pronouncements

 

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280) – Improvements to Reporting Segment Disclosures” (“ASU 2023-07”), which requires disclosure of incremental segment information on an annual and interim basis. In addition, ASU 2023-07 clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The enhanced disclosures are required to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and disclosures, but does not expect that it will have a material impact on its consolidated financial statements.

 

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of specific categories in the rate reconciliation table along with additional information for reconciling items that meet a quantitative threshold, disclosure of disaggregated income taxes paid and modifies other income tax-related disclosures. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024 and allows for adoption on a prospective basis, with a retrospective option. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09, but does not expect that it will have a material impact on its consolidated financial statements.

 

 

 

 8 

 

 

2. Collaboration Agreement

 

AgonOx, Inc. (“AgonOx”)

 

In February 2021, the Company entered into a clinical co-development collaboration agreement (the “Clinical Co-Development Agreement”) with AgonOx, a private company developing a pipeline of novel immunotherapy drugs targeting key regulators of the immune response to cancer. Under the Clinical Co-Development Agreement, Phio and AgonOx are working to develop a T cell-based therapy using the Company’s lead product candidate, PH-762, and AgonOx’s “double positive” tumor infiltrating lymphocytes (“DP TIL”) technology. Per the terms of the Clinical Co-Development Agreement, the Company agreed to reimburse AgonOx up to $4,000,000 in expenses incurred to conduct a Phase 1 clinical trial of PH-762 treated DP TIL in patients with advanced melanoma and other advanced solid tumors.

 

The Company recognizes its share of costs arising from research and development activities performed by AgonOx in the Company’s condensed consolidated financial statements in the period AgonOx incurs such expense. Phio will be entitled to certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology.

 

The Company recognized approximately $50,000 and $119,000 of expense in connection with these efforts during the three months ended March 31, 2024 and 2023, respectively.

 

On May 8, 2024, the Company terminated its Clinical Co-Development Agreement with AgonOx, effective immediately. Effective as of the date of the termination, the Clinical Co-Development Agreement and the continuing obligations of the Company and AgonOx thereunder will be terminated in their entirety. The Company will no longer be required to provide financial support for the development costs incurred under the Clinical Co-Development Agreement or be entitled to certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology.

 

The Company will pay to AgonOx all Company payment obligations that have accrued prior to the termination of the Clinical Co-Development Agreement. The Company intends to pay to AgonOx future fees to be incurred for patients that were treated in the Phase 1 clinical trial as of the date of termination. The Company estimates that such payments to be made to AgonOx will amount to approximately $388,000, which primarily relate to the Company’s accrued obligations under the Clinical Co-Development Agreement as of March 31, 2024, as well as future fees to be incurred for patients that were treated in the Phase 1 clinical trial and other miscellaneous costs as of the date of termination. Pursuant to the terms of the Clinical Co-Development Agreement, the Company and AgonOx shall meet and discuss the orderly wind-down of the Phase 1 clinical trial. Each of the Company and AgonOx shall be responsible for its own costs and expenses incurred in connection with the wind-down of the Phase 1 clinical trial. See Item 5. Other Information included elsewhere in this Quarterly Report for further information.

 

3. Fair Value of Financial Instruments

 

The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement,” for the Company’s financial assets and liabilities that are re-measured and reported at fair value each reporting period and are re-measured and reported at fair value at least annually using a fair value hierarchy that is broken down into three levels. Level inputs are defined as follows:

 

Level 1 – quoted prices in active markets for identical assets or liabilities.

 

Level 2 – other significant observable inputs for the assets or liabilities through corroboration with market data at the measurement date.

 

Level 3 – significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.

 

As of March 31, 2024, the Company categorized its cash equivalents as Level 1 hierarchy as the carrying amounts approximate their fair value due to their short-term nature and market rates of interest. As of December 31, 2023, the Company did not identify any financial instruments required to be presented at fair value.

                    
Description  March 31, 2024  

Quoted Prices

In Active Markets
(Level 1)

    Other Significant
Observable Inputs
(Level 2)		   Unobservable
Inputs
(Level 3)		 
Assets:                    
Cash equivalents  $6,379   $6,379   $–   $– 
Total  $6,379   $6,379   $–   $– 

 

The carrying amounts of cash, accounts payable and accrued expenses of the Company approximate their fair values due to their short-term nature.

 

 

 9 

 

 

4. Leases

 

The Company’s lease for its corporate headquarters and primary research facility in Marlborough, Massachusetts was for a total of 7,581 square feet of office and laboratory space and expired on March 31, 2024. The lease agreement did not contain information to determine the borrowing rate implicit in the lease. As such, the Company calculated its incremental borrowing rate based on what the Company would have to pay to borrow on a collateralized basis over the lease term for an amount equal to the remaining lease payments, taking into consideration such assumptions as, but not limited to, the U.S. treasury yield rate and borrowing rates from a creditworthy financial institution using the above lease factors. The Company has continued operations as a primarily remote business with the expiration of the lease, but has contracted a private mailbox with an address of 11 Apex Drive, Suite 300A, PMB 2006, Marlborough, MA 01752 to use as its principal mailing address for SEC and other purposes.

 

The Company entered into a lease for a laboratory facility located at 17 Briden Street, Worcester, Massachusetts, which commenced on March 1, 2024. The lease covers 321 square feet of rentable space and expires on September 1, 2024. The total base rent for the premises over the term is expected to be $15,000 and the Company has the option to renew for additional 6-month periods. The Company made an accounting policy election under the FASB ASC Topic 824, “Leases” not to recognize leases with a term less than one year on the balance sheet and that do not contain a purchase option. Under the short-term lease election, the Company will recognize the lease payments for the laboratory facility on a straight-line basis over the lease term.

 

The lease for the Company’s corporate headquarters represented all of our significant lease obligations.

 

The amounts reported in the condensed consolidated balance sheets for the Company’s corporate headquarters classified as an operating lease in which the Company is the lessee and other supplemental balance sheet information is set forth as follows, in thousands, except the lease term (number of years) and discount rate:

        
   March 31, 2024   December 31, 2023 
Assets          
Right of use asset  $–   $33 
Liabilities          
Lease liability  $–   $35 
Lease Term and Discount Rate          
Weighted average remaining lease term   –    0.25 
Weighted average discount rate   4.70%    4.70% 

 

Operating lease costs included in operating expense were $33,000 for the three months ended March 31, 2024 and 2023, respectively.

  

Cash paid for the amounts included in the measurement of the operating lease liability on the Company’s condensed consolidated balance sheets and included within changes in the lease liability in the operating activities of the Company’s condensed consolidated statements of cash flows was $35,000 and $34,000 for the three months ended March 31, 2024 and 2023, respectively.

 

 

 

 

 10 

 

 

5. Stockholders’ Equity

 

Warrants

 

The Company first assesses warrants that are issued by the Company under the FASB ASC Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”) to determine whether the warrants are within the scope of ASC 480. If there are no instances outside of the Company’s control that could require cash settlement, the Company then applies and follows the applicable accounting guidance in the FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Financial instruments are accounted for as either derivative liabilities or equity instruments depending on the specific terms of the agreement. Based on the assessment of the warrants issued by the Company under the guidance in ASC 480 and ASC 815, the warrants issued by the Company have been classified within stockholder’s equity.

 

In December 2023, the Company entered into an inducement letter agreement (the “Inducement Letter Agreement”) with certain holders of the Company’s existing warrants to purchase up to an aggregate of 2,130,252 shares of the Company’s common stock (the “December 2023 Financing”). Pursuant to the terms of the Inducement Letter Agreement, in the event that the exercise of the existing warrants in the December 2023 Financing would have otherwise caused a holder to exceed the beneficial ownership limitations set forth in the existing warrant, the Company issued the number of shares that would not cause a holder to exceed such beneficial ownership limitation and agreed to hold such balance of shares of common stock in abeyance. Accordingly, an aggregate of 826,370 shares of common stock were held in abeyance (the “Abeyance Shares”) with such Abeyance Shares evidenced through the holder’s existing warrants and which were deemed to be prepaid. The Abeyance Shares were held until notice was received by the holder that the balance of the shares of common stock could be issued in compliance with such beneficial ownership limitations and were exercised pursuant to a notice of exercise from the holder. Until such time, the Abeyance Shares were evidenced through the holder’s existing warrants and have been included in the Company’s table of outstanding warrants below.

 

During the three months ended March 31, 2024, all of the Abeyance Shares were released and issued. There were no warrant exercises during the three months ended March 31, 2023.

 

The following table summarizes the Company’s outstanding warrants, all of which are classified as equity instruments, at March 31, 2024:

          
    Number
of Shares		   Weighted-
Average
Exercise Price
Per Share		 
Outstanding at December 31, 2023   6,331,288   $3.68 
Issued   –    – 
Exercised   (826,370)   1.33 
Expired   –    – 
Outstanding at March 31, 2024   5,504,918   $4.03 

 

6. Stock-based Compensation

 

Restricted Stock Units

 

Restricted stock units (“RSUs”) are issued under the Company’s 2020 Long-Term Incentive Plan (the “2020 Plan”) or as inducement grants issued outside of the 2020 Plan to new employees. RSUs are generally subject to graded vesting and the satisfaction of certain service requirements. RSUs granted by the Company to employees generally vest annually over 3 years after the grant date and over 1 year after the grant date for non-employee members of the Board of Directors. Upon vesting, each outstanding RSU will be settled for one share of the Company’s common stock. Employee RSU recipients may elect to net share settle upon vesting, in which case the Company pays the employee’s income taxes due upon vesting and withholds a number of shares of equal value. The Company does not expect to repurchase shares to satisfy RSU vests. The fair value of the RSUs awarded are based upon the Company’s closing stock price at the grant date and are expensed over the requisite service period.

 

 

 

 

 11 

 

 

The following table summarizes the activity of the Company’s RSUs for the three months ended March 31, 2024:

          
   Number
of Shares		   Weighted-
Average
Grant Date Fair Value
Per Share		 
Unvested units at December 31, 2023   49,683   $8.32 
Granted   –    – 
Vested   (24,198)   8.80 
Forfeited   (6,903)   10.96 
Unvested units at March 31, 2024   18,582   $6.70 

 

There were no RSUs granted during the three months ended March 31, 2024. The weighted-average fair value of RSUs granted during the three months ended March 31, 2023 was $5.24.

  

Stock-based compensation expense related to RSUs was $26,000 and $111,000 for the three months ended March 31, 2024 and 2023, respectively.

 

The aggregate fair value of awards that vested during the three months ended March 31, 2024 and 2023 was $17,000 and $95,000, respectively, which represents the market value of the Company’s common stock on the date that the RSUs vested.

 

Stock Options

 

Stock options are available for issuance under the 2020 Plan or as inducement grants issued outside of the 2020 Plan to new employees. Stock options are generally subject to graded vesting and the satisfaction of service requirements. Stock options granted by the Company to employees generally vest annually over 4 years after the grant date and generally vest over 1 year after the grant date for members of the Board of Directors and expire within ten years of grant. Upon the exercise of a stock option, the Company issues new shares and delivers them to the recipient. The Company does not expect to repurchase shares to satisfy stock option exercises.

 

The Company uses the Black-Scholes option-pricing model to determine the fair value of all its option grants. The risk-free interest rate used for each grant was based upon the yield on zero-coupon U.S. Treasury securities with a term similar to the expected life of the related option. The Company’s expected stock price volatility assumption is based upon the Company’s own implied volatility. As the Company has limited stock option exercise information, the expected life assumption used for option grants is based upon the simplified method provided for under the FASB ASC Topic 718, “Compensation — Stock Compensation”. The dividend yield assumption is based upon the fact that the Company has never paid cash dividends and presently has no intention of paying cash dividends.

 

The Company did not grant any stock options during the three months ended March 31, 2024 and 2023.

 

The following table summarizes the activity of the Company’s stock options for the three months ended March 31, 2024:

               
   Number
of Shares		   Weighted-
Average
Exercise
Price
Per Share		   Aggregate
Intrinsic
Value		 
Balance at December 31, 2023   10,084   $134.86      
Granted   –    –      
Exercised   –    –      
Forfeited   –    –      
Expired   (23)   13,541.48      
Balance at March 31, 2024   10,061   $104.21   $– 
Exercisable at March 31, 2024   10,061   $104.21   $– 

 

Stock-based compensation expense related to stock options for the three months ended March 31, 2024 was $6,000. The Company did not have any stock-based compensation expense related to stock options for the three months ended March 31, 2023.

 

 

 

 12 

 

 

Compensation Expense Related to Equity Awards

 

The following table sets forth total stock-based compensation expense for the three months ended March 31, 2024 and 2023, in thousands:

          
   March 31, 
   2024   2023 
Research and development  $(11)  $63 
General and administrative   43    48 
Total stock-based compensation  $32   $111 

 

7. Net Loss per Common Share

 

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted net loss per share is computed by dividing the Company’s net loss by the weighted average number of common shares outstanding and the impact of the dilutive effect of potential common stock equivalents, except when the inclusion of such potential common stock equivalents would be anti-dilutive. Dilutive potential common stock equivalents primarily consist of stock options, RSUs and warrants. Therefore, basic and diluted net loss per share applicable to common stockholders were the same for all periods presented because the impact of these items is generally anti-dilutive during periods of net loss.

 

The following table sets forth the potential common shares excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive:

          
   March 31, 
   2024   2023 
Stock options   10,061    177 
Unvested RSUs   18,582    72,755 
Warrants   5,504,918    545,401 
Total   5,533,561    618,333 

 

 

 

 

 

 

 13 

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

In this report, “we,” “our,” “ours,” “us,” “Phio” and the “Company” refers to Phio Pharmaceuticals Corp. and our subsidiary, MirImmune, LLC and the ongoing business operations of Phio Pharmaceuticals Corp. and MirImmune, LLC, whether conducted through Phio Pharmaceuticals Corp. or MirImmune, LLC.

 

This management’s discussion and analysis of financial condition as of March 31, 2024 and results of operations for the three months ended March 31, 2024 and 2023 should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (the “2023 Form 10-K”).

 

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “intends,” “believes,” “anticipates,” “indicates,” “plans,” “expects,” “suggests,” “may,” “would,” “should,” “potential,” “designed to,” “will,” “ongoing,” “estimate,” “forecast,” “target,” “predict,” “could” and similar references, although not all forward-looking statements contain these words. Forward-looking statements are neither historical facts nor assurances of future performance. These statements are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Risks that could cause actual results to vary from expected results expressed in our forward-looking statements include, but are not limited to, the impact to our business and operations by inflationary pressures, rising interest rates, recession fears, the development of our product candidates, our ability to execute on business strategies, our ability to develop our product candidates with collaboration partners, if any, and the success of any such collaborations, the timeline and duration for advancing our product candidates into clinical development, results from our preclinical and clinical activities, the timing or likelihood of regulatory filings and approvals, the success of our efforts to commercialize our product candidates if approved, our ability to manufacture and supply our product candidates for clinical activities, and for commercial use if approved, the scope of protection we are able to establish and maintain for intellectual property rights covering our technology platform, and our ability to obtain future financing. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements as a result of a number of important factors, including those identified in our 2023 Form 10-K under the heading “Risk Factors” and in other filings the Company periodically makes with the SEC. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q speak as of the date hereof and the Company does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this report except as required by law.

 

Overview

 

Phio is a clinical stage biotechnology company whose proprietary INTASYL™ small interfering RNA gene silencing technology is designed to make immune cells more effective in killing tumor cells. We are developing therapeutics that are designed to leverage INTASYL to precisely target specific proteins that reduce the body’s ability to fight cancer, without the need for specialized formulations or drug delivery systems.

 

Cost Rationalization

 

In 2023, we implemented a cost rationalization program driven by our transition from a research company to a product development company. This transition resulted in a decision not to renew the lease for our corporate headquarters and primary research facility in Marlborough, Massachusetts, which expired on March 31, 2024. As of April 1, 2024, we have continued operations primarily as a remote business with a laboratory facility in Worcester, Massachusetts. Additionally, we rationalized research personnel and reduced our headcount by approximately 36%. These expense reductions have been redirected to funding the Phase 1b clinical trial with PH-762 directed toward skin cancer.

 

 

 

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PH-762

 

PH-762 is an INTASYL compound designed to reduce the expression of cell death protein 1 (“PD-1”). PD-1 is a protein that inhibits T cells’ ability to kill cancer cells and is a clinically validated target in immunotherapy. Decreasing the expression of PD-1 can thereby increase the capacity of T cells, which protect the body from cancer cells and infections, to kill cancer cells.

 

Our preclinical studies have demonstrated that direct-to-tumor application of PH-762 resulted in potent anti-tumoral effects and have shown that direct-to-tumor treatment with PH-762 inhibits tumor growth in a dose dependent fashion in PD-1 responsive and refractory models. Importantly, direct-to-tumor administration of PH-762 resulted in activity against distant untreated tumors, indicative of a systemic anti-tumor response. We believe these data further support the potential for PH-762 to provide a strong local immune response without the dose immune-related adverse effects seen with systemic antibody therapy.

 

PH-762 is currently being evaluated in a U.S. multi-center Phase 1b dose-escalating clinical trial through the intratumoral injection of PH-762 for the treatment of patients with cutaneous squamous cell carcinoma, melanoma and Merkel cell carcinoma. The trial is designed to evaluate the safety and tolerability of neoadjuvant use of intratumorally injected PH-762, assess the tumor response, and determine the dose or dose range for continued study of PH-762 and is expected to enroll up to 30 patients. In November 2023, we announced the dosing of the first patient under a previously cleared Investigational New Drug (“IND”) application by the U.S. Food and Drug Administration. The first two patients enrolled in our first cohort have completed treatment with PH-762 with no reported adverse events. The trial is currently open for the continued enrollment of patients and expects to complete enrollment of patients in the second quarter of 2025.

 

AgonOx Collaboration

 

Due to INTASYL’s ease of administration, we have shown that our compounds can easily be incorporated into current adoptive cell therapy (“ACT”) manufacturing processes. In ACT, T cells are usually taken from a patient's own blood or tumor tissue, grown in large numbers in a laboratory, and then given back to the patient to help the immune system fight cancer. By treating T cells with our INTASYL compounds while they are being grown in the laboratory, we believe our INTASYL compounds can improve these immune cells to make them more effective in killing cancer. Preclinical data generated in collaboration with AgonOx, Inc. (“AgonOx”), a private company developing a pipeline of novel immunotherapy drugs targeting key regulators of the immune response to cancer, demonstrated that treating AgonOx’s “double positive” tumor infiltrating lymphocytes (“DP TIL”) with PH-762 increased their tumor killing activity by two-fold.

 

In February 2021, we entered into a clinical co-development collaboration agreement (the “Clinical Co-Development Agreement”) with AgonOx to develop a T cell-based therapy using PH-762 and AgonOx’s DP TIL. Under the Clinical Co-Development Agreement, we had agreed to reimburse AgonOx up to $4 million in expenses incurred to conduct a Phase 1 clinical trial of PH-762 treated DP TIL in patients with advanced melanoma and other advanced solid tumors. We were also eligible to receive certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology.

 

On May 8, 2024, we terminated the Clinical Co-Development Agreement with AgonOx, effective immediately. Effective as of the date of the termination, the Clinical Co-Development Agreement and our continuing obligations and those of AgonOx thereunder will be terminated in their entirety. We will no longer be required to provide financial support for the development costs incurred under the Clinical Co-Development Agreement or be entitled to certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology. We will pay to AgonOx all payment obligations that have accrued prior to the termination of the Clinical Co-Development Agreement. We intend to pay to AgonOx future fees to be incurred for patients that were treated in the Phase 1 clinical trial as of the date of termination. We estimate that such payments to be made to AgonOx will amount to approximately $388,000, which primarily relate to our accrued obligations under the Clinical Co-Development Agreement as of March 31, 2024, as well as future fees to be incurred for patients that were treated in the Phase 1 clinical trial and other miscellaneous costs as of the date of termination. Pursuant to the terms of the Clinical Co-Development Agreement, we and AgonOx shall meet and discuss the orderly wind-down of the Phase 1 clinical trial. Each of us and AgonOx shall be responsible for its own costs and expenses incurred in connection with the wind-down of the Phase 1 clinical trial. See Item 5. Other Information included elsewhere in this Quarterly Report for further information.

 

Prior to the termination of the Clinical Co-Development Agreement with AgonOx, PH-762 treated DP TIL were being evaluated in a Phase 1 clinical trial in the United States with up to 18 patients with advanced melanoma and other advanced solid tumors by AgonOx. The primary trial objectives were to evaluate the safety and to study the potential for enhanced therapeutic benefit from the administration of PH-762 treated DP TIL. AgonOx had enrolled three patients. The first two patients were treated with DP TIL only and the third patient was treated with a combination of DP TIL and PH-762.

 

 

 

 

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Critical Accounting Policies and Estimates

 

The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions and could have a material impact on our reported results.

 

There have been no material changes to our critical accounting policies and estimates as compared to those disclosed in our 2023 Form 10-K.

 

Results of Operations

 

The following data summarizes the results of our operations for the periods indicated, in thousands: 

 

   Three Months Ended
March 31,		   Dollar 
   2024   2023   Change 
Operating expenses  $2,209   $3,602   $(1,393)
Operating loss  $(2,209)  $(3,602)  $1,393 
Net loss  $(2,154)  $(3,602)  $1,448 

 

Comparison of the Three Months Ended March 31, 2024 and 2023

 

Operating Expenses

 

The following table summarizes our total operating expenses, for the periods indicated, in thousands:

 

   Three Months Ended
March 31,		   Dollar 
   2024   2023   Change 
Research and development  $1,148   $2,134   $(986)
General and administrative   1,061    1,468    (407)
Total operating expenses  $2,209   $3,602   $(1,393)

 

Research and Development Expenses

 

Research and development expenses relate to compensation and benefits for research and development personnel, facility-related expenses, supplies, external services, costs to acquire technology licenses, research activities under our research collaboration agreement, expenses associated with preclinical and clinical development activities and other operating costs. Our research and development programs are focused on the development of immuno-oncology therapeutics based on our INTASYL therapeutic platform. Since we commenced operations, research and development expenses have been a significant portion of our total operating expenses and are expected to constitute the majority of our spending for the foreseeable future.

 

Research and development expenses for the three months ended March 31, 2024 decreased 46% as compared with the three months ended March 31, 2023. The decrease in research and development expenses was primarily driven by our cost rationalization measures in transitioning from a research company to a product development company resulting in a decrease of $305,000 of expense due to the wind-down of preclinical studies, $170,000 in salary-related costs, including stock-based compensation expense, and $108,000 in lab supplies associated with the reduction in headcount, in addition to a decrease in clinical consulting fees of $225,000 incurred in connection with our IND filing for PH-762 in the prior period and a decrease of $131,000 in manufacturing fees for PH-762.

 

 

 

 

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General and Administrative Expenses

 

General and administrative expenses relate to compensation and benefits for general and administrative personnel, facility-related expenses, professional fees for legal and patent-related activities, audit, tax and consulting services, as well as other general corporate expenses.

 

General and administrative expenses for the three months ended March 31, 2024 decreased 28% as compared with the three months ended March 31, 2023. The decrease in general and administrative expenses was primarily due to decreases in consulting expenses of $102,000 and legal expenses of $211,000 as compared to the prior year period.

 

Liquidity and Capital Resources

 

Historically, our primary source of funding has been through the sale of our securities. In the future, we will be dependent on obtaining funding from third parties, such as proceeds from the issuance of debt, sale of equity or strategic opportunities, in order to maintain our operations. We have reported recurring losses from operations since inception and expect that we will continue to have negative cash flows from our operations for the foreseeable future. At March 31, 2024, we had cash of $6,475,000 as compared with $8,490,000 at December 31, 2023.

 

We have limited cash resources, have reported recurring losses from operations since inception, have negative operating cash flows and have not yet received product revenues. These factors raise substantial doubt regarding our ability to continue as a going concern, and our current cash resources may not provide sufficient capital to fund operations for at least the next 12 months from the date of the release of the condensed consolidated financial statements included elsewhere in this Quarterly Report. Our continuation as a going concern depends upon our ability to raise additional capital through equity offerings, debt offerings and/or strategic opportunities to fund our operations. There can be no assurance that we will be successful in accomplishing any of these plans in order to continue as a going concern. The condensed consolidated financial statements included elsewhere in this Quarterly Report do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

 

The following table summarizes our cash flows for the periods indicated, in thousands:

 

   Three Months Ended
March 31,		 
   2024   2023 
Net cash used in operating activities  $(2,011)  $(2,708)
Net cash used in financing activities   (4)   (38)
Net decrease in cash, cash equivalents and restricted cash  $(2,015)  $(2,746)

 

Net Cash Flow from Operating Activities

 

Net cash used in operating activities for the three months ended March 31, 2024 decreased 26% as compared to the three months ended March 31, 2023, primarily due to a decrease in net loss of $1,448,000, a decrease in non-cash related items of $89,000 primarily related to reduced stock-based compensation expense, and a decrease in the changes in operating assets and liabilities of $662,000 primarily as a result of liabilities owed to support our IND filing for PH-762 and manufacturing fees related to the fill/finish of PH-762 drug product in the prior year period.

 

Net Cash Flow from Investing Activities

 

There were no net cash flows from investing activities for the three months ended March 31, 2024 and 2023.

 

 

 

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Net Cash Flow from Financing Activities

 

Net cash used in financing activities for the three months ended March 31, 2024 decreased 89% as compared to the three months ended March 31, 2023, primarily due to the amount of payments made for taxes on the net share settlements of RSUs.

 

Contractual Obligations

 

Details of our obligations under the Clinical Co-Development Agreement with our former collaboration partner AgonOx can be found in Note 2 of the condensed consolidated financial statements. Outside of the above, there have been no material changes to the contractual obligations as disclosed in our 2023 Form 10-K.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a smaller reporting company, we are not required to provide this information.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Our management, with the participation of our Principal Executive Officer (who is also acting as our Principal Financial Officer), evaluated the effectiveness of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report to ensure that information that we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives. We believe that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Based on the evaluation of our disclosure controls and procedures as of the end of the period covered by this report, management, with the participation of our Principal Executive Officer (who is also acting as our Principal Financial Officer), concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of such date.

 

Changes in Internal Control Over Financial Reporting

 

There have been no changes in our internal control over financial reporting that occurred during the quarter ending March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

 

 

 

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PART II — OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

From time to time, we may become a party to various legal proceedings and complaints arising in the ordinary course of business. We are not currently a party to any actual or threatened material legal proceedings of which we are aware.

 

ITEM 1A. RISK FACTORS

 

Other than set forth below, there have been no material changes in our risk factors set forth in Part I, “Item 1A. Risk Factors” in our 2023 Form 10-K. The risk factor set forth below and risk factors disclosed in Part I, “Item 1A. Risk Factors” in our 2023 Form 10-K could materially adversely affect our business, financial condition, or results of operations. This Quarterly Report on Form 10-Q also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including these risks. Additional risks not currently known or currently material to us may also harm our business.

 

We may not be able to regain, or maintain, compliance with the continued listing requirements of The Nasdaq Capital Market.

 

On January 24, 2024, we received notice (the “Notification Letter”) from Nasdaq notifying us that we are not in compliance with the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of our common stock for the 30 consecutive business days prior to the date of the Notification Letter, we no longer meet the minimum bid price requirement.

 

The Notification Letter does not impact our listing on The Nasdaq Capital Market at this time. The Notification Letter states that we have 180 calendar days, or until July 22, 2024, to regain compliance. To regain compliance, the bid price of our common stock must have a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days at any time prior to July 22, 2024. In the event that we do not regain compliance by July 22, 2024, we may be eligible for additional time to reach compliance with the minimum bid price requirement. However, if we fail to regain compliance with the minimum bid price listing requirement or fail to maintain compliance with all other applicable continued listing requirements and Nasdaq determines to delist our common stock, the delisting could adversely impact us by, among other things, reducing the liquidity and market price of our common stock; reducing the number of investors willing to hold or acquire our common stock; limiting our ability to issue additional securities in the future; and limiting our ability to fund our operations.

 

We are currently evaluating options to resolve such deficiency, including by effecting a reverse stock split of our common stock.

 

Additionally, Nasdaq Listing Rule 5550(b)(1) requires companies listed on the Nasdaq Capital Market to maintain stockholders’ equity of at least $2.5 million for continued listing. As of March 31, 2024, our stockholders’ equity was $5.6 million and there can be no assurance that we will be able to maintain or increase our stockholders’ equity in the future. If our stockholders equity falls below $2.5 million, as a result of operating losses or for other reasons, or if we are unable to demonstrate to Nasdaq’s satisfaction that we subsequently regained compliance with this requirement, Nasdaq will notify us of such non-compliance. If we receive such notice from Nasdaq, in accordance with the Nasdaq Listing Rules, we will have 45 calendar days from the date of the notification to submit a plan to regain compliance with Nasdaq Listing Rule 5550(b)(1). If our compliance plan is accepted, we may be granted up to 180 calendar days from the date of the initial notification to evidence compliance. If our compliance plan is not accepted or we are otherwise unable to evidence compliance within Nasdaq’s allotted timeframe, Nasdaq may take steps to delist our common stock.

 

Such a delisting would have an adverse effect on the market liquidity of our securities, decrease the market price of our securities, result in the potential loss of confidence by investors, suppliers, customers and employees and fewer business development opportunities, and adversely affect our ability to obtain financing for the continuation of our operations. We are actively monitoring our stockholders’ equity and will consider any and all options available to us to maintain compliance with Nasdaq Listing Rule 5550(b)(1).

 

 

 

 19 

 

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

No sales or issuances of unregistered securities occurred that have not previously been disclosed in a Current Report on Form 8-K.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

 

Termination of Clinical Co-Development Agreement with AgonOx

 

On May 8, 2024, we notified AgonOx, Inc. (“AgonOx”) of our election to terminate the Clinical Co-Development Agreement, dated February 26, 2021, by and between the Company and AgonOx (the “Clinical Co-Development Agreement”), effective immediately. We elected to terminate the Clinical Co-Development Agreement pursuant to Section 12.2.3.3 of the Clinical Co-Development Agreement due to enrollment delays in the Phase 1 clinical trial described below.

 

On February 26, 2021, we entered into the Clinical Co-Development Agreement with AgonOx to develop a T cell-based therapy using our lead product candidate, PH-762, and AgonOx’s “double positive” tumor infiltrating lymphocytes (“DP TIL”) technology. Per the terms of the Clinical Co-Development Agreement, we agreed to reimburse AgonOx up to $4,000,000 in expenses incurred to conduct a Phase 1 clinical trial of PH-762 treated DP TIL in patients with advanced melanoma and other advanced solid tumors. We were also eligible to receive certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology.

 

Prior to the termination of the Clinical Co-Development Agreement with AgonOx, PH-762 treated DP TIL was being evaluated in a Phase 1 clinical trial in the United States with up to 18 patients with advanced melanoma and other advanced solid tumors by AgonOx. The primary trial objectives were to evaluate the safety and to study the potential for enhanced therapeutic benefit from the administration of PH-762 treated DP TIL. As of the effective date of the termination, AgonOx had treated three patients. The first two patients were treated with DP TIL only and the third patient was treated with a combination of DP TIL and PH-762.

 

Effective as of the date of termination, the Clinical Co-Development Agreement and our continuing obligations and those of AgonOx thereunder will be terminated in their entirety. We will no longer be required to provide financial support for the development costs incurred under the Clinical Co-Development Agreement or entitled to certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology. We will pay to AgonOx all payment obligations that have accrued prior to the termination of the Clinical Co-Development Agreement. We intend to pay to AgonOx future fees to be incurred for patients that were treated in the Phase 1 clinical trial as of the date of termination. We estimate that such payments will amount to approximately $388,000, which primarily relate to the Company’s accrued obligations under the Clinical Co-Development Agreement as of March 31, 2024, as well as future fees to be incurred for patients that were being treated in the Phase 1 clinical trial and other miscellaneous costs as of the date of termination.

 

 

 

 20 

 

 

Pursuant to the terms of the Clinical Co-Development Agreement, we and AgonOx shall meet and discuss the orderly wind-down of the Phase 1 clinical trial. Each of us and AgonOx shall be responsible for its own costs and expenses incurred in connection with the wind-down of the Phase 1 clinical trial.

 

The foregoing summary of the Clinical Co-Development Agreement does not purport to be complete and is subject to, and qualified in its entirety by, reference to the full text of the Clinical Co-Development Agreement, a copy of which is filed as Exhibit 10.2 to our Form 10-K for the year ended December 31, 2023 and incorporated herein by reference.

 

 

ITEM 6. EXHIBITS

 

EXHIBIT INDEX

 

        Incorporated by Reference Herein

Exhibit
Number

   Description   Form   Date
             
31.1   Sarbanes-Oxley Act Section 302 Certification of Principal Executive Officer and Principal Financial Officer. *        
             
32.1   Sarbanes-Oxley Act Section 906 Certification of Principal Executive Officer and Principal Financial Officer. **        
             
101.INS   Inline XBRL Instance Document.*        
101.SCH   Inline XBRL Taxonomy Extension Schema Document.*        
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document.*        
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document.*        
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document.*        
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document.*        
104   The cover page for this report, formatted in Inline XBRL (included in Exhibit 101).*        

 

 _________________
* Filed herewith.
** Furnished herewith and not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section or incorporated by reference into any filing under the Securities Act or the Exchange Act.

 

 

 

 

 22 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  Phio Pharmaceuticals Corp.
     
  By:   /s/ Robert J. Bitterman                            
      Robert J. Bitterman
     

President and Chief Executive Officer

(as Principal Executive and Financial Officer)

     
      Date: May 9, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 23 

 

Exhibit 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

SECURITIES EXCHANGE ACT OF 1934 RULES 13a-14(a) AND 15d-14(a)

AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Robert J. Bitterman, certify that:

 

  1. I have reviewed this Quarterly Report on Form 10-Q of Phio Pharmaceuticals Corp.;

 

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

  4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

 

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

 

  b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

  5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

 

Dated: May 9, 2024

   

/s/ Robert J. Bitterman

  
Robert J. Bitterman  
President and Chief Executive Officer  
(as Principal Executive and Financial Officer)

 

Exhibit 32.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Phio Pharmaceuticals Corp. (the “Company”) on Form 10-Q for the period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned officer of the Company certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to their knowledge:

 

  1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

  2. The information contained in the Report fairly presents, in all material respects, the Company’s financial condition and result of operations.

 

 

Dated: May 9, 2024

 

   
/s/ Robert J. Bitterman  
Robert J. Bitterman  
President and Chief Executive Officer  
(as Principal Executive and Financial Officer)

 

v3.24.1.u1
Cover - shares
 3 Months Ended
Mar. 31, 2024
May 03, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2024  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2024  
Current Fiscal Year End Date --12-31  
Entity File Number 001-36304  
Entity Registrant Name Phio Pharmaceuticals Corp.  
Entity Central Index Key 0001533040  
Entity Tax Identification Number 45-3215903  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 11 Apex Drive  
Entity Address, Address Line Two Suite 300A, PMB 2006  
Entity Address, City or Town Marlborough  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 01752  
City Area Code 508  
Local Phone Number 767-3861  
Title of 12(b) Security Common Stock, par value, $0.0001 per share  
Trading Symbol PHIO  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   4,591,700
v3.24.1.u1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 6,475 $ 8,490
Prepaid expenses and other current assets 373 832
Total current assets 6,848 9,322
Right of use asset 0 33
Property and equipment, net 2 6
Other assets 3 3
Total assets 6,853 9,364
Current liabilities:    
Accounts payable 320 657
Accrued expenses 929 942
Lease liability 0 35
Total current liabilities 1,249 1,634
Commitments and contingencies (Note 2)
Stockholders’ equity:    
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; no shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 0 0
Common stock, $0.0001 par value, 100,000,000 shares authorized; 4,591,700 and 3,747,329 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 0 0
Additional paid-in capital 146,964 146,936
Accumulated deficit (141,360) (139,206)
Total stockholders’ equity 5,604 7,730
Total liabilities and stockholders’ equity $ 6,853 $ 9,364
v3.24.1.u1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares, issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares, issued 4,591,700 3,747,329
Common stock, shares outstanding 4,591,700 3,747,329
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Operating expenses:    
Research and development $ 1,148 $ 2,134
General and administrative 1,061 1,468
Total operating expenses 2,209 3,602
Operating loss (2,209) (3,602)
Total other income, net 55 0
Net loss $ (2,154) $ (3,602)
Net loss per common share:    
Net loss per common share, Basic $ (0.47) $ (3.15)
Net loss per common share, Diluted $ (0.47) $ (3.15)
Weighted average number of common shares outstanding:    
Weighted average number of common shares outstanding, Basic 4,580,072 1,142,213
Weighted average number of common shares outstanding, Diluted 4,580,072 1,142,213
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Unaudited) - USD ($)
$ in Thousands
Preferred Stock Series D [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Dec. 31, 2022 $ 2 $ 0 $ 139,218 $ (128,380) $ 10,838
Balance at beginning, shares at Dec. 31, 2022 1 1,139,024      
Cash-in-lieu of fractional shares for reverse stock split (11) (11)
Cash-in-lieu of fractional shares for reverse stock split, shares   (1,706)      
Redemption of preferred stock $ (2)
Redemption of preferred stock, shares (1)        
Issuance of common stock upon vesting of restricted stock units
Issuance of common stock upon vesting of restricted stock units, shares   18,080      
Shares withheld for payroll taxes (25) (25)
Shares withheld for payroll taxes, shares   (4,816)      
Stock-based compensation expense 111 111
Net loss (3,602) (3,602)
Ending balance, value at Mar. 31, 2023 $ 0 $ 0 139,293 (131,982) 7,311
Balance at ending, shares at Mar. 31, 2023 0 1,150,582      
Beginning balance, value at Dec. 31, 2023 $ 0 $ 0 146,936 (139,206) 7,730
Balance at beginning, shares at Dec. 31, 2023 0 3,747,329      
Issuance of common stock upon exercise of warrants
Issuance of common stock upon exercise of warrants, shares   826,370      
Issuance of common stock upon vesting of restricted stock units
Issuance of common stock upon vesting of restricted stock units, shares   24,198      
Shares withheld for payroll taxes (4) (4)
Shares withheld for payroll taxes, shares   (6,197)      
Stock-based compensation expense 32 32
Net loss (2,154) (2,154)
Ending balance, value at Mar. 31, 2024 $ 0 $ 0 $ 146,964 $ (141,360) $ 5,604
Balance at ending, shares at Mar. 31, 2024 0 4,591,700      
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities:    
Net loss $ (2,154) $ (3,602)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 1 16
Amortization of right of use asset 33 31
Loss on disposal of property and equipment 3 0
Stock-based compensation 32 111
Changes in operating assets and liabilities:    
Prepaid expenses and other assets 459 314
Accounts payable (337) 123
Accrued expenses (13) 331
Lease liability (35) (32)
Net cash used in operating activities (2,011) (2,708)
Cash flows from financing activities:    
Cash in lieu of fractional shares for reverse stock split 0 (11)
Redemption of Series D preferred stock 0 (2)
Payment of taxes on net share settlements of restricted stock units (4) (25)
Net cash used in financing activities (4) (38)
Net decrease in cash, cash equivalents and restricted cash (2,015) (2,746)
Cash, cash equivalents and restricted cash at the beginning of period 8,490 11,831
Cash, cash equivalents and restricted cash at the end of period $ 6,475 $ 9,085
v3.24.1.u1
Reconciliation of Cash and Restricted Cash - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Statement of Financial Position [Abstract]    
Cash and cash equivalents $ 6,475 $ 9,035
Restricted cash 0 50
Cash, cash equivalents and restricted cash $ 6,475 $ 9,085
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure [Table]    
Net Income (Loss) $ (2,154) $ (3,602)
v3.24.1.u1
Organization and Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Organization and Significant Accounting Policies

1. Organization and Significant Accounting Policies

 

Nature of Operations

 

Phio Pharmaceuticals Corp. (“Phio” or the “Company”) is a clinical stage biotechnology company whose proprietary INTASYL™ small interfering RNA gene silencing technology is designed to make immune cells more effective in killing tumor cells. The Company is developing therapeutics that are designed to leverage INTASYL to precisely target specific proteins that reduce the body’s ability to fight cancer, without the need for specialized formulations or drug delivery systems.

 

Phio was incorporated in the state of Delaware in 2011 as RXi Pharmaceuticals Corporation. On November 19, 2018, the Company changed its name to Phio Pharmaceuticals Corp., to reflect its transition from a platform company to one that is fully committed to developing groundbreaking immuno-oncology therapeutics.

 

Basis of Presentation

 

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures that are included in the Company’s annual consolidated financial statements, but that are not required for interim reporting purposes, have been condensed or omitted. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of the condensed consolidated financial statements have been included.

 

These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (the “2023 Form 10-K”). Interim results are not necessarily indicative of results for a full year.

 

Principles of Consolidation

 

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MirImmune, LLC. All material intercompany accounts have been eliminated in consolidation.

 

Segments

 

The Company operates as one operating segment and all assets are located in the United States.

 

Use of Estimates

 

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas subject to significant estimates and judgement include, among others, those related to the fair value of equity awards, accruals for research and development expenses, useful lives of property and equipment, and the valuation allowance on the Company’s deferred tax assets. On an ongoing basis the Company evaluates its estimates and bases its estimates on historical experience and other relevant assumptions that the Company believes are reasonable under the circumstances. Actual results could differ materially from these estimates.

 

Liquidity

 

The Company has reported recurring losses from operations since its inception and expects to continue to have negative cash flows from operations for the foreseeable future. Historically, the Company’s primary source of funding has been from sales of its securities. The Company’s ability to continue to fund its operations is dependent on obtaining funding from third parties, such as proceeds from the issuance of debt, sale of equity, or strategic opportunities, in order to maintain its operations. This is dependent on a number of factors, including the market demand or liquidity of the Company’s common stock. There is no guarantee that debt, additional equity or other funding will be available to the Company on acceptable terms, or at all. If the Company fails to obtain additional funding when needed, the Company would be forced to scale back or terminate its operations or seek to merge with or to be acquired by another company.

 

The Company has limited cash resources, has reported recurring losses from operations since inception, has negative operating cash flows and has not yet received product revenues. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern, and the Company’s current cash resources may not provide sufficient capital to fund operations for at least the next 12 months from the date of the release of these condensed consolidated financial statements. The continuation of the Company as a going concern depends upon the Company’s ability to raise additional capital through an equity offering, debt offering and/or strategic opportunity to fund its operations. There can be no assurance that the Company will be successful in accomplishing these plans in order to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Summary of Significant Accounting Policies

 

Cash and Cash Equivalents

 

Cash and cash equivalents include unrestricted cash accounts, money market investments and highly liquid investment instruments with original maturity of three months or less at the date of purchase.

 

Other than as set forth above, there have been no material changes to the significant accounting policies disclosed in the Company’s 2023 Form 10-K.

 

Recent Accounting Pronouncements

 

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280) – Improvements to Reporting Segment Disclosures” (“ASU 2023-07”), which requires disclosure of incremental segment information on an annual and interim basis. In addition, ASU 2023-07 clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The enhanced disclosures are required to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and disclosures, but does not expect that it will have a material impact on its consolidated financial statements.

 

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of specific categories in the rate reconciliation table along with additional information for reconciling items that meet a quantitative threshold, disclosure of disaggregated income taxes paid and modifies other income tax-related disclosures. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024 and allows for adoption on a prospective basis, with a retrospective option. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09, but does not expect that it will have a material impact on its consolidated financial statements.

 
v3.24.1.u1
Collaboration Agreement
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Collaboration Agreement

2. Collaboration Agreement

 

AgonOx, Inc. (“AgonOx”)

 

In February 2021, the Company entered into a clinical co-development collaboration agreement (the “Clinical Co-Development Agreement”) with AgonOx, a private company developing a pipeline of novel immunotherapy drugs targeting key regulators of the immune response to cancer. Under the Clinical Co-Development Agreement, Phio and AgonOx are working to develop a T cell-based therapy using the Company’s lead product candidate, PH-762, and AgonOx’s “double positive” tumor infiltrating lymphocytes (“DP TIL”) technology. Per the terms of the Clinical Co-Development Agreement, the Company agreed to reimburse AgonOx up to $4,000,000 in expenses incurred to conduct a Phase 1 clinical trial of PH-762 treated DP TIL in patients with advanced melanoma and other advanced solid tumors.

 

The Company recognizes its share of costs arising from research and development activities performed by AgonOx in the Company’s condensed consolidated financial statements in the period AgonOx incurs such expense. Phio will be entitled to certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology.

 

The Company recognized approximately $50,000 and $119,000 of expense in connection with these efforts during the three months ended March 31, 2024 and 2023, respectively.

 

On May 8, 2024, the Company terminated its Clinical Co-Development Agreement with AgonOx, effective immediately. Effective as of the date of the termination, the Clinical Co-Development Agreement and the continuing obligations of the Company and AgonOx thereunder will be terminated in their entirety. The Company will no longer be required to provide financial support for the development costs incurred under the Clinical Co-Development Agreement or be entitled to certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology.

 

The Company will pay to AgonOx all Company payment obligations that have accrued prior to the termination of the Clinical Co-Development Agreement. The Company intends to pay to AgonOx future fees to be incurred for patients that were treated in the Phase 1 clinical trial as of the date of termination. The Company estimates that such payments to be made to AgonOx will amount to approximately $388,000, which primarily relate to the Company’s accrued obligations under the Clinical Co-Development Agreement as of March 31, 2024, as well as future fees to be incurred for patients that were treated in the Phase 1 clinical trial and other miscellaneous costs as of the date of termination. Pursuant to the terms of the Clinical Co-Development Agreement, the Company and AgonOx shall meet and discuss the orderly wind-down of the Phase 1 clinical trial. Each of the Company and AgonOx shall be responsible for its own costs and expenses incurred in connection with the wind-down of the Phase 1 clinical trial. See Item 5. Other Information included elsewhere in this Quarterly Report for further information.

 
v3.24.1.u1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

3. Fair Value of Financial Instruments

 

The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement,” for the Company’s financial assets and liabilities that are re-measured and reported at fair value each reporting period and are re-measured and reported at fair value at least annually using a fair value hierarchy that is broken down into three levels. Level inputs are defined as follows:

 

Level 1 – quoted prices in active markets for identical assets or liabilities.

 

Level 2 – other significant observable inputs for the assets or liabilities through corroboration with market data at the measurement date.

 

Level 3 – significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.

 

As of March 31, 2024, the Company categorized its cash equivalents as Level 1 hierarchy as the carrying amounts approximate their fair value due to their short-term nature and market rates of interest. As of December 31, 2023, the Company did not identify any financial instruments required to be presented at fair value.

                    
Description  March 31, 2024  

Quoted Prices

In Active Markets
(Level 1)

    Other Significant
Observable Inputs
(Level 2)		   Unobservable
Inputs
(Level 3)		 
Assets:                    
Cash equivalents  $6,379   $6,379   $–   $– 
Total  $6,379   $6,379   $–   $– 

 

The carrying amounts of cash, accounts payable and accrued expenses of the Company approximate their fair values due to their short-term nature.

 
v3.24.1.u1
Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases

4. Leases

 

The Company’s lease for its corporate headquarters and primary research facility in Marlborough, Massachusetts was for a total of 7,581 square feet of office and laboratory space and expired on March 31, 2024. The lease agreement did not contain information to determine the borrowing rate implicit in the lease. As such, the Company calculated its incremental borrowing rate based on what the Company would have to pay to borrow on a collateralized basis over the lease term for an amount equal to the remaining lease payments, taking into consideration such assumptions as, but not limited to, the U.S. treasury yield rate and borrowing rates from a creditworthy financial institution using the above lease factors. The Company has continued operations as a primarily remote business with the expiration of the lease, but has contracted a private mailbox with an address of 11 Apex Drive, Suite 300A, PMB 2006, Marlborough, MA 01752 to use as its principal mailing address for SEC and other purposes.

 

The Company entered into a lease for a laboratory facility located at 17 Briden Street, Worcester, Massachusetts, which commenced on March 1, 2024. The lease covers 321 square feet of rentable space and expires on September 1, 2024. The total base rent for the premises over the term is expected to be $15,000 and the Company has the option to renew for additional 6-month periods. The Company made an accounting policy election under the FASB ASC Topic 824, “Leases” not to recognize leases with a term less than one year on the balance sheet and that do not contain a purchase option. Under the short-term lease election, the Company will recognize the lease payments for the laboratory facility on a straight-line basis over the lease term.

 

The lease for the Company’s corporate headquarters represented all of our significant lease obligations.

 

The amounts reported in the condensed consolidated balance sheets for the Company’s corporate headquarters classified as an operating lease in which the Company is the lessee and other supplemental balance sheet information is set forth as follows, in thousands, except the lease term (number of years) and discount rate:

        
   March 31, 2024   December 31, 2023 
Assets          
Right of use asset  $–   $33 
Liabilities          
Lease liability  $–   $35 
Lease Term and Discount Rate          
Weighted average remaining lease term   –    0.25 
Weighted average discount rate   4.70%    4.70% 

 

Operating lease costs included in operating expense were $33,000 for the three months ended March 31, 2024 and 2023, respectively.

  

Cash paid for the amounts included in the measurement of the operating lease liability on the Company’s condensed consolidated balance sheets and included within changes in the lease liability in the operating activities of the Company’s condensed consolidated statements of cash flows was $35,000 and $34,000 for the three months ended March 31, 2024 and 2023, respectively.

 
v3.24.1.u1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Stockholders’ Equity

5. Stockholders’ Equity

 

Warrants

 

The Company first assesses warrants that are issued by the Company under the FASB ASC Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”) to determine whether the warrants are within the scope of ASC 480. If there are no instances outside of the Company’s control that could require cash settlement, the Company then applies and follows the applicable accounting guidance in the FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Financial instruments are accounted for as either derivative liabilities or equity instruments depending on the specific terms of the agreement. Based on the assessment of the warrants issued by the Company under the guidance in ASC 480 and ASC 815, the warrants issued by the Company have been classified within stockholder’s equity.

 

In December 2023, the Company entered into an inducement letter agreement (the “Inducement Letter Agreement”) with certain holders of the Company’s existing warrants to purchase up to an aggregate of 2,130,252 shares of the Company’s common stock (the “December 2023 Financing”). Pursuant to the terms of the Inducement Letter Agreement, in the event that the exercise of the existing warrants in the December 2023 Financing would have otherwise caused a holder to exceed the beneficial ownership limitations set forth in the existing warrant, the Company issued the number of shares that would not cause a holder to exceed such beneficial ownership limitation and agreed to hold such balance of shares of common stock in abeyance. Accordingly, an aggregate of 826,370 shares of common stock were held in abeyance (the “Abeyance Shares”) with such Abeyance Shares evidenced through the holder’s existing warrants and which were deemed to be prepaid. The Abeyance Shares were held until notice was received by the holder that the balance of the shares of common stock could be issued in compliance with such beneficial ownership limitations and were exercised pursuant to a notice of exercise from the holder. Until such time, the Abeyance Shares were evidenced through the holder’s existing warrants and have been included in the Company’s table of outstanding warrants below.

 

During the three months ended March 31, 2024, all of the Abeyance Shares were released and issued. There were no warrant exercises during the three months ended March 31, 2023.

 

The following table summarizes the Company’s outstanding warrants, all of which are classified as equity instruments, at March 31, 2024:

          
    Number
of Shares		   Weighted-
Average
Exercise Price
Per Share		 
Outstanding at December 31, 2023   6,331,288   $3.68 
Issued   –    – 
Exercised   (826,370)   1.33 
Expired   –    – 
Outstanding at March 31, 2024   5,504,918   $4.03 

 
v3.24.1.u1
Stock-based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation

6. Stock-based Compensation

 

Restricted Stock Units

 

Restricted stock units (“RSUs”) are issued under the Company’s 2020 Long-Term Incentive Plan (the “2020 Plan”) or as inducement grants issued outside of the 2020 Plan to new employees. RSUs are generally subject to graded vesting and the satisfaction of certain service requirements. RSUs granted by the Company to employees generally vest annually over 3 years after the grant date and over 1 year after the grant date for non-employee members of the Board of Directors. Upon vesting, each outstanding RSU will be settled for one share of the Company’s common stock. Employee RSU recipients may elect to net share settle upon vesting, in which case the Company pays the employee’s income taxes due upon vesting and withholds a number of shares of equal value. The Company does not expect to repurchase shares to satisfy RSU vests. The fair value of the RSUs awarded are based upon the Company’s closing stock price at the grant date and are expensed over the requisite service period.

 

The following table summarizes the activity of the Company’s RSUs for the three months ended March 31, 2024:

          
   Number
of Shares		   Weighted-
Average
Grant Date Fair Value
Per Share		 
Unvested units at December 31, 2023   49,683   $8.32 
Granted   –    – 
Vested   (24,198)   8.80 
Forfeited   (6,903)   10.96 
Unvested units at March 31, 2024   18,582   $6.70 

 

There were no RSUs granted during the three months ended March 31, 2024. The weighted-average fair value of RSUs granted during the three months ended March 31, 2023 was $5.24.

  

Stock-based compensation expense related to RSUs was $26,000 and $111,000 for the three months ended March 31, 2024 and 2023, respectively.

 

The aggregate fair value of awards that vested during the three months ended March 31, 2024 and 2023 was $17,000 and $95,000, respectively, which represents the market value of the Company’s common stock on the date that the RSUs vested.

 

Stock Options

 

Stock options are available for issuance under the 2020 Plan or as inducement grants issued outside of the 2020 Plan to new employees. Stock options are generally subject to graded vesting and the satisfaction of service requirements. Stock options granted by the Company to employees generally vest annually over 4 years after the grant date and generally vest over 1 year after the grant date for members of the Board of Directors and expire within ten years of grant. Upon the exercise of a stock option, the Company issues new shares and delivers them to the recipient. The Company does not expect to repurchase shares to satisfy stock option exercises.

 

The Company uses the Black-Scholes option-pricing model to determine the fair value of all its option grants. The risk-free interest rate used for each grant was based upon the yield on zero-coupon U.S. Treasury securities with a term similar to the expected life of the related option. The Company’s expected stock price volatility assumption is based upon the Company’s own implied volatility. As the Company has limited stock option exercise information, the expected life assumption used for option grants is based upon the simplified method provided for under the FASB ASC Topic 718, “Compensation — Stock Compensation”. The dividend yield assumption is based upon the fact that the Company has never paid cash dividends and presently has no intention of paying cash dividends.

 

The Company did not grant any stock options during the three months ended March 31, 2024 and 2023.

 

The following table summarizes the activity of the Company’s stock options for the three months ended March 31, 2024:

               
   Number
of Shares		   Weighted-
Average
Exercise
Price
Per Share		   Aggregate
Intrinsic
Value		 
Balance at December 31, 2023   10,084   $134.86      
Granted   –    –      
Exercised   –    –      
Forfeited   –    –      
Expired   (23)   13,541.48      
Balance at March 31, 2024   10,061   $104.21   $– 
Exercisable at March 31, 2024   10,061   $104.21   $– 

 

Stock-based compensation expense related to stock options for the three months ended March 31, 2024 was $6,000. The Company did not have any stock-based compensation expense related to stock options for the three months ended March 31, 2023.

 

Compensation Expense Related to Equity Awards

 

The following table sets forth total stock-based compensation expense for the three months ended March 31, 2024 and 2023, in thousands:

          
   March 31, 
   2024   2023 
Research and development  $(11)  $63 
General and administrative   43    48 
Total stock-based compensation  $32   $111 

 
v3.24.1.u1
Net Loss per Common Share
 3 Months Ended
Mar. 31, 2024
Net loss per common share:  
Net Loss per Common Share

7. Net Loss per Common Share

 

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted net loss per share is computed by dividing the Company’s net loss by the weighted average number of common shares outstanding and the impact of the dilutive effect of potential common stock equivalents, except when the inclusion of such potential common stock equivalents would be anti-dilutive. Dilutive potential common stock equivalents primarily consist of stock options, RSUs and warrants. Therefore, basic and diluted net loss per share applicable to common stockholders were the same for all periods presented because the impact of these items is generally anti-dilutive during periods of net loss.

 

The following table sets forth the potential common shares excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive:

          
   March 31, 
   2024   2023 
Stock options   10,061    177 
Unvested RSUs   18,582    72,755 
Warrants   5,504,918    545,401 
Total   5,533,561    618,333 

 
v3.24.1.u1
Organization and Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Nature of Operations

Nature of Operations

 

Phio Pharmaceuticals Corp. (“Phio” or the “Company”) is a clinical stage biotechnology company whose proprietary INTASYL™ small interfering RNA gene silencing technology is designed to make immune cells more effective in killing tumor cells. The Company is developing therapeutics that are designed to leverage INTASYL to precisely target specific proteins that reduce the body’s ability to fight cancer, without the need for specialized formulations or drug delivery systems.

 

Phio was incorporated in the state of Delaware in 2011 as RXi Pharmaceuticals Corporation. On November 19, 2018, the Company changed its name to Phio Pharmaceuticals Corp., to reflect its transition from a platform company to one that is fully committed to developing groundbreaking immuno-oncology therapeutics.

 
Basis of Presentation

Basis of Presentation

 

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures that are included in the Company’s annual consolidated financial statements, but that are not required for interim reporting purposes, have been condensed or omitted. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of the condensed consolidated financial statements have been included.

 

These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (the “2023 Form 10-K”). Interim results are not necessarily indicative of results for a full year.

 
Principles of Consolidation

Principles of Consolidation

 

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MirImmune, LLC. All material intercompany accounts have been eliminated in consolidation.

 
Segments

Segments

 

The Company operates as one operating segment and all assets are located in the United States.

 
Use of Estimates

Use of Estimates

 

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas subject to significant estimates and judgement include, among others, those related to the fair value of equity awards, accruals for research and development expenses, useful lives of property and equipment, and the valuation allowance on the Company’s deferred tax assets. On an ongoing basis the Company evaluates its estimates and bases its estimates on historical experience and other relevant assumptions that the Company believes are reasonable under the circumstances. Actual results could differ materially from these estimates.

 
Liquidity

Liquidity

 

The Company has reported recurring losses from operations since its inception and expects to continue to have negative cash flows from operations for the foreseeable future. Historically, the Company’s primary source of funding has been from sales of its securities. The Company’s ability to continue to fund its operations is dependent on obtaining funding from third parties, such as proceeds from the issuance of debt, sale of equity, or strategic opportunities, in order to maintain its operations. This is dependent on a number of factors, including the market demand or liquidity of the Company’s common stock. There is no guarantee that debt, additional equity or other funding will be available to the Company on acceptable terms, or at all. If the Company fails to obtain additional funding when needed, the Company would be forced to scale back or terminate its operations or seek to merge with or to be acquired by another company.

 

The Company has limited cash resources, has reported recurring losses from operations since inception, has negative operating cash flows and has not yet received product revenues. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern, and the Company’s current cash resources may not provide sufficient capital to fund operations for at least the next 12 months from the date of the release of these condensed consolidated financial statements. The continuation of the Company as a going concern depends upon the Company’s ability to raise additional capital through an equity offering, debt offering and/or strategic opportunity to fund its operations. There can be no assurance that the Company will be successful in accomplishing these plans in order to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 
Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

 

Cash and Cash Equivalents

 

Cash and cash equivalents include unrestricted cash accounts, money market investments and highly liquid investment instruments with original maturity of three months or less at the date of purchase.

 

Other than as set forth above, there have been no material changes to the significant accounting policies disclosed in the Company’s 2023 Form 10-K.

 
Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280) – Improvements to Reporting Segment Disclosures” (“ASU 2023-07”), which requires disclosure of incremental segment information on an annual and interim basis. In addition, ASU 2023-07 clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The enhanced disclosures are required to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and disclosures, but does not expect that it will have a material impact on its consolidated financial statements.

 

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of specific categories in the rate reconciliation table along with additional information for reconciling items that meet a quantitative threshold, disclosure of disaggregated income taxes paid and modifies other income tax-related disclosures. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024 and allows for adoption on a prospective basis, with a retrospective option. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09, but does not expect that it will have a material impact on its consolidated financial statements.

 
v3.24.1.u1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of financial instruments at fair value
                    
Description  March 31, 2024  

Quoted Prices

In Active Markets
(Level 1)

    Other Significant
Observable Inputs
(Level 2)		   Unobservable
Inputs
(Level 3)		 
Assets:                    
Cash equivalents  $6,379   $6,379   $–   $– 
Total  $6,379   $6,379   $–   $– 
v3.24.1.u1
Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Schedule of lease amounts recorded in balance sheet
        
   March 31, 2024   December 31, 2023 
Assets          
Right of use asset  $–   $33 
Liabilities          
Lease liability  $–   $35 
Lease Term and Discount Rate          
Weighted average remaining lease term   –    0.25 
Weighted average discount rate   4.70%    4.70% 
v3.24.1.u1
Stockholders’ Equity (Tables)
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Schedule of outstanding warrants
          
    Number
of Shares		   Weighted-
Average
Exercise Price
Per Share		 
Outstanding at December 31, 2023   6,331,288   $3.68 
Issued   –    – 
Exercised   (826,370)   1.33 
Expired   –    – 
Outstanding at March 31, 2024   5,504,918   $4.03 
v3.24.1.u1
Stock-based Compensation (Tables)
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of RSU activity
          
   Number
of Shares		   Weighted-
Average
Grant Date Fair Value
Per Share		 
Unvested units at December 31, 2023   49,683   $8.32 
Granted   –    – 
Vested   (24,198)   8.80 
Forfeited   (6,903)   10.96 
Unvested units at March 31, 2024   18,582   $6.70 
Summary of stock option activity
               
   Number
of Shares		   Weighted-
Average
Exercise
Price
Per Share		   Aggregate
Intrinsic
Value		 
Balance at December 31, 2023   10,084   $134.86      
Granted   –    –      
Exercised   –    –      
Forfeited   –    –      
Expired   (23)   13,541.48      
Balance at March 31, 2024   10,061   $104.21   $– 
Exercisable at March 31, 2024   10,061   $104.21   $– 
Schedule of stock-based compensation expense
          
   March 31, 
   2024   2023 
Research and development  $(11)  $63 
General and administrative   43    48 
Total stock-based compensation  $32   $111 

 
v3.24.1.u1
Net Loss per Common Share (Tables)
 3 Months Ended
Mar. 31, 2024
Net loss per common share:  
Schedule of anti dilutive stock
          
   March 31, 
   2024   2023 
Stock options   10,061    177 
Unvested RSUs   18,582    72,755 
Warrants   5,504,918    545,401 
Total   5,533,561    618,333 
v3.24.1.u1
Collaboration Agreement (Details Narrative) - Clinical Co Development Agreement [Member] - Agon Ox [Member] - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Expense from contractual obligations $ 50,000 $ 119,000  
Contractual obligation     $ 388,000
v3.24.1.u1
Fair Value of Financial Instruments - (Details - Financial instruments at fair value)
$ in Thousands
Mar. 31, 2024
USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Total $ 6,379
Fair Value, Inputs, Level 1 [Member]  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Total 6,379
Fair Value, Inputs, Level 2 [Member]  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Total 0
Fair Value, Inputs, Level 3 [Member]  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Total 0
Cash and Cash Equivalents [Member]  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Total 6,379
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Total 6,379
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Total 0
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Total $ 0
v3.24.1.u1
Leases (Details - Balance sheet lease items) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Assets    
Right of use asset $ 0 $ 33
Liabilities    
Total lease liability $ 0 $ 35
Lease Term and Discount Rate    
Weighted average remaining lease term   3 months
Weighted average discount rate 4.70% 4.70%
v3.24.1.u1
Leases (Details Narrative)
 3 Months Ended
Mar. 01, 2024
USD ($)
ft²
Mar. 31, 2024
USD ($)
ft²
Mar. 31, 2023
USD ($)
Operating lease costs   $ 33,000 $ 33,000
Operating lease payments   $ 35,000 $ 34,000
Property Subject to Operating Lease [Member]      
Operating lease footage | ft² 321 7,581  
Lease expiration date Sep. 01, 2024 Mar. 31, 2024  
Total base rent $ 15,000    
v3.24.1.u1
Stockholders' Equity (Details - Warrants outstanding) - Warrant [Member]
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Class of Stock [Line Items]  
Warrants outstanding, beginning | shares 6,331,288
Warrants outstanding, weighted average exercise price | $ / shares $ 3.68
Warrants issued, shares | shares 0
Warrants issued, weighted average exercise price | $ / shares $ 0
Warrants exercised, shares | shares (826,370)
Warrants exercised, weighted average exercise price | $ / shares $ 1.33
Warrants expired, shares | shares 0
Warrants expired, weighted average exercise price | $ / shares $ 0
Warrants outstanding | shares 5,504,918
Warrants outstanding, weighted average exercise price | $ / shares $ 4.03
v3.24.1.u1
Stockholders’ Equity (Details Narrative) - shares
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Class of Stock [Line Items]    
Warrants exercised shares 0  
Abeyance Shares [Member]    
Class of Stock [Line Items]    
Common Stock, Capital Shares Reserved for Future Issuance   826,370
December 2023 Financing [Member]    
Class of Stock [Line Items]    
[custom:AmendedWarrants]   2,130,252
v3.24.1.u1
Stock-based Compensation (Details - RSU activity) - Restricted Stock Units (RSUs) [Member] - $ / shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
RSU's unvested units, beginning balance 49,683  
RSU beginning balance, price per share $ 8.32  
RSU's granted 0  
RSU's granted, price per share $ 0 $ 5.24
RSU's vested (24,198)  
RSU's vested, price per share $ 8.80  
RSU's forfeited (6,903)  
RSU's forfeited, price per share $ 10.96  
RSU's unvested units, ending balance 18,582  
RSU ending balance, price per share $ 6.70  
v3.24.1.u1
Stock-based Compensation (Details - Option activity) - Share-Based Payment Arrangement, Option [Member]
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Number of shares outstanding, Beginning | shares 10,084
Weighted average exercise price per share, Beginning | $ / shares $ 134.86
Number of shares outstanding, Granted | shares 0
Weighted average exercise price per share, Granted | $ / shares $ 0
Number of shares outstanding, Exercised | shares 0
Weighted average exercise price per share, Exercised | $ / shares $ 0
Number of shares outstanding, Forfeited | shares 0
Weighted average exercise price per share, Forfeited | $ / shares $ 0
Number of shares outstanding, Expired | shares (23)
Weighted average exercise price per share, Expired | $ / shares $ 13,541.48
Number of shares outstanding, Ending | shares 10,061
Weighted average exercise price per share, Ending | $ / shares $ 104.21
Aggregate intrinsic value, Outstanding | $ $ 0
Number of shares outstanding, Exercisable | shares 10,061
Weighted average exercise price per share, Exercisable | $ / shares $ 104.21
Aggregate intrinsic value, Exercisable | $ $ 0
v3.24.1.u1
Stock-based Compensation (Details - Share-based compensation) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation $ 32 $ 111
Research and Development Expense [Member]    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation (11) 63
General and Administrative Expense [Member]    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation $ 43 $ 48
v3.24.1.u1
Stock-based Compensation (Details Narrative) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Share-based compensation expense $ 32,000 $ 111,000
Restricted Stock Units (RSUs) [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
RSU's granted, price per share $ 0 $ 5.24
Share-based compensation expense $ 26,000 $ 111,000
Fair value of awards vested $ 17,000 95,000
Restricted Stock Units (RSUs) [Member] | Employees [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Vesting period 3 years  
Restricted Stock Units (RSUs) [Member] | Non Employee Members [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Vesting period 1 year  
Share-Based Payment Arrangement, Option [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Share-based compensation expense $ 6,000 $ 0
Share-Based Payment Arrangement, Option [Member] | Employees [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Vesting period 4 years  
Share-Based Payment Arrangement, Option [Member] | Board Of Directors [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Vesting period 1 year  
v3.24.1.u1
Net Loss per Common Share (Details - Antidilutive shares) - shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive shares 5,533,561 618,333
Stock Options [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive shares 10,061 177
Restricted Stock Units (RSUs) [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive shares 18,582 72,755
Warrant [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive shares 5,504,918 545,401
Grafico Azioni Phio Pharmaceuticals (NASDAQ:PHIO)
Storico
Da Dic 2024 a Gen 2025 Clicca qui per i Grafici di Phio Pharmaceuticals
Grafico Azioni Phio Pharmaceuticals (NASDAQ:PHIO)
Storico
Da Gen 2024 a Gen 2025 Clicca qui per i Grafici di Phio Pharmaceuticals