COCP

Cocrystal Pharma, Inc. (COCP) - 10-K Summary for Fiscal Year Ended December 31, 2025

Business Context and Reporting Period

Cocrystal Pharma, Inc. is a clinical-stage biotechnology company focused on discovering and developing novel antiviral therapeutics for RNA viruses, including influenza, norovirus, coronaviruses (SARS-CoV-2), and Hepatitis C. The company utilizes a proprietary structure-based drug design platform. This report covers the fiscal year ended December 31, 2025. The company operates as a single business segment and is classified as a non-accelerated filer and smaller reporting company.

Key Financial Metrics

Note: The filing text does not provide specific debt figures other than operating lease liabilities of $1.51 million. The company has no long-term debt.

Material Changes vs. Prior Period

• Reduced Burn Rate: Net loss decreased by approximately 49% year-over-year, driven primarily by a $7.48 million reduction in R&D expenses. This was due to the winding down of clinical study costs for the initial Phase 2a influenza trial and reductions in employee-related expenses.
• Capital Raises: In 2025, the company raised approximately $5.37 million through financing activities, including a registered direct offering and private placement of common stock and warrants. In contrast, there were no financing proceeds in 2024.
• Cash Position: Cash and restricted cash decreased by $2.84 million to $7.10 million, reflecting continued operating losses despite the capital raise.

Guidance, Outlook, Risks, and Unusual Items

Going Concern Warning: Management and the independent auditors have concluded there is substantial doubt about the company's ability to continue as a going concern for at least 12 months from the filing date. Current resources are insufficient to fund operations beyond this period without additional capital.

Clinical Program Updates:

• Influenza (CC-42344): The initial Phase 2a study failed to yield scientifically viable efficacy data due to unexpectedly low infection rates among participants. The company is in a dispute with the Clinical Research Organization (CRO) regarding a refund of $6.31 million or a redo of the study. Arbitration is expected. A new Phase 2a study is required to advance the program.
• Norovirus/Coronavirus (CDI-988): Phase 1 safety and tolerability data were favorable. In February 2026, the company commenced a Phase 1b human challenge study at Emory University to evaluate CDI-988 as a norovirus preventive and treatment.

Risks and Contingencies:

• Capital Needs: The company must raise additional capital to fund the new influenza trial and ongoing operations. Failure to do so could force a curtailment of operations.
• Regulatory and Political: Risks include potential delays in FDA approvals due to reduced government staffing and funding under the current administration.
• Legal Dispute: The outcome of the arbitration with the CRO regarding the failed influenza trial is uncertain and could result in the loss of the $6.31 million investment.

Investor Verification Checklist

• Liquidity Runway: Verify the timeline for the next capital raise given the "substantial doubt" going concern opinion and current cash balance of $7.1 million.
• Influenza Trial Dispute: Monitor the status of the arbitration with the CRO regarding the $6.31 million refund and the timeline for initiating the new Phase 2a study.
• CDI-988 Phase 1b Results: Track the progress and preliminary data from the norovirus challenge study commenced in February 2026.
• Dilution Risk: Review the impact of outstanding warrants (7.22 million shares) and options on future equity dilution.
• Executive Compensation: Note the reduction in base salaries for Co-CEOs effective January 1, 2025, as a cost-saving measure.