Cocrystal Pharma, Inc. (COCP) - Q1 2026 Filing Summary
Business Context and Reporting Period
Cocrystal Pharma, Inc. is a clinical-stage biopharmaceutical company focused on developing broad-spectrum antiviral drug candidates for viral diseases including norovirus, influenza, and coronaviruses. This Form 10-Q covers the quarterly period ended March 31, 2026. The company operates as a single reportable segment and is classified as a non-accelerated filer and smaller reporting company.
Key Financial Metrics
| Metric (in thousands) | Q1 2026 | Q1 2025 |
|---|---|---|
| Grant Income | $225 | $0 |
| Total Operating Expenses | $2,581 | $2,341 |
| Net Loss | $(2,299) | $(2,301) |
| Net Loss Per Share (Basic & Diluted) | $(0.17) | $(0.23) |
| Cash and Restricted Cash (End of Period) | $4,760 | $6,996 |
| Net Cash Used in Operating Activities | $(2,340) | $(2,939) |
| Total Assets | $7,426 | $9,712 (Dec 31, 2025) |
| Total Liabilities | $3,310 | $3,381 (Dec 31, 2025) |
Note: The company has no product revenue; income is derived solely from government grants. There is no long-term debt, only operating lease liabilities.
Material Changes vs. Prior Period
- Grant Income: The company recognized $225,000 in grant income in Q1 2026 from an NIH/NIAID SBIR Phase I award, compared to $0 in Q1 2025.
- Operating Expenses: Total operating expenses increased by $240,000 (10.3%) to $2.581 million. This was driven by a $229,000 increase in General and Administrative (G&A) expenses due to higher legal and consultant costs, partially offset by a slight decrease in salary expenses. Research and Development (R&D) expenses remained relatively flat at $1.371 million.
- Liquidity: Cash and restricted cash decreased by approximately $2.34 million during the quarter, leaving $4.76 million on hand as of March 31, 2026.
- Net Loss: Net loss remained consistent year-over-year at approximately $2.3 million, despite the new grant income, due to increased operating costs.
Outlook, Risks, and Management Commentary
- Liquidity and Going Concern: Management states that current resources are not sufficient to fund operations beyond the next 12 months. The company has incurred net losses since inception, and the independent auditor has expressed substantial doubt about the company's ability to continue as a going concern. Additional capital is required to continue clinical trials.
- Legal Proceedings: A significant dispute exists with a UK-based Clinical Research Organization (CRO) regarding a Phase 2a study for the influenza candidate CC-42344. The study failed to yield viable efficacy data due to low infection rates. Cocrystal is seeking a refund of $6.309 million or a redo of the study, while the CRO is seeking an additional $600,000. Arbitration has been initiated.
- Program Updates:
- CDI-988 (Norovirus/Coronavirus): Received FDA Fast Track designation. Phase 1b challenge study commenced in March 2026 at Emory University.
- CC-42344 (Influenza): Development is contingent on resolving the CRO dispute or raising capital for a new study. In vitro data suggests efficacy against the H5N1 avian flu strain.
- Financing: The At-The-Market (ATM) offering agreement was terminated in September 2025. Future funding will likely require new private or public equity offerings, which may be dilutive.
Investor Verification Checklist
- Cash Runway: Verify the company's ability to raise capital within the next 12 months given the "substantial doubt" going concern warning.
- CRO Dispute Resolution: Monitor the status of the arbitration regarding the $6.3 million claim against the UK CRO, as this impacts the influenza program and potential cash recovery.
- Grant Utilization: Confirm the timeline for the remaining $275,000 of the $500,000 NIH SBIR award and its impact on future cash flow.
- Dilution Risk: Assess the potential dilution from future equity offerings, noting the existence of 7.2 million outstanding warrants and 838,000 stock options.
- Clinical Milestones: Track the enrollment and preliminary data from the CDI-988 Phase 1b norovirus challenge study.