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Wall Street JournalPhio Pharmaceuticals Corp. 10-Q: Financial Report Overview and Analysis
Phio Pharmaceuticals Corp. 10-Q: Financial Report Overview and Analysis
Phio Pharmaceuticals Corp. reported a strong financial performance in Q1 2024, with significant growth in cash and cash equivalents, as well as increases in retained earnings and additional paid-in capital. The company also entered into several clinical co-development agreements and partnerships, such as the AgonOx collaboration. Additionally, Phio completed a financing round in December 2023, which contributed to the increase in abeyance shares and warrants. Overall, Phio Pharmaceuticals Corp. is experiencing steady growth and expanding its partnerships, positioning itself for continued success in the future.
”“”Overview
Phio is a clinical stage biotechnology company developing immuno-oncology therapeutics. In 2023, they implemented a cost rationalization program to transition from a research company to a product development company. This involved not renewing the lease on their Marlborough HQ, rationalizing research personnel and headcount, and redirecting savings to their Phase 1b trial of PH-762 for skin cancer.
PH-762 is an immunotherapy compound designed to increase T cells’ ability to kill cancer by reducing PD-1 expression. Preclinical studies showed PH-762 inhibits tumor growth and creates a systemic immune response. It is now in a Phase 1b trial in cutaneous squamous cell carcinoma, melanoma and Merkel cell carcinoma, evaluating safety, tolerability and dose range.
Phio previously had a collaboration with AgonOx to develop a T cell therapy using PH-762 and AgonOx’s double positive tumor infiltrating lymphocytes (DP TIL). However, this was terminated effective May 8, 2024. Phio will pay accrued costs but no longer provide financial support.
| Key Financial Results | |
|---|---|
| Operating Expenses Q1 2024 | $2.2 million |
| Operating Expenses Q1 2023 | $3.6 million |
| Operating Loss Q1 2024 | $2.2 million |
| Operating Loss Q1 2023 | $3.6 million |
| Net Loss Q1 2024 | $2.2 million |
| Net Loss Q1 2023 | $3.6 million |
| Cash Balance Q1 2024 | $6.5 million |
| Cash Balance YE 2023 | $8.5 million |
Critical Accounting Policies
No material changes to critical accounting policies compared to those in the 2023 10-K.
Results of Operations
R&D expenses decreased 46% due to reduced preclinical studies, salary & stock-based comp, lab supplies and manufacturing costs.
G&A expenses decreased 28% due to lower consulting and legal fees.
Liquidity and Capital Resources
Historically funded through sale of securities. Future funding dependent on similar sources.
Have had recurring losses and negative operating cash flow. Cash resources may not fund operations for 12 months.
Ability to continue as going concern depends on raising additional capital.
| Cash Flows | |
|---|---|
| Operating Activities Q1 2024 | $(2.0) million |
| Operating Activities Q1 2023 | $(2.7) million |
| Investing Activities Q1 2024 | $0 |
| Investing Activities Q1 2023 | $0 |
| Financing Activities Q1 2024 | $(4,000) |
| Financing Activities Q1 2023 | $(38,000) |
Outlook
Phio faces substantial doubt regarding its ability to continue as a going concern. It is dependent on raising additional capital and cutting costs in order to fund continued operations. The termination of the AgonOx collaboration will help reduce cash burn. Phio’s lead program PH-762 continues to advance in the clinic which represents the company’s best near-term shot at value creation.
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