Phio Pharmaceuticals Corp. (PHIO) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Phio Pharmaceuticals Corp. is a clinical-stage biopharmaceutical company developing immuno-oncology therapeutics using its proprietary INTASYL self-delivering siRNA technology. The company operates as a single segment with no product revenue to date, focusing resources on advancing its lead candidate, PH-762, and deferring the IND submission for PH-894.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Net Loss | $(4.14) million | $(8.14) million | $(3.94) million |
| Operating Expenses | $(4.27) million | $(8.44) million | $(4.18) million |
| Research & Development | $(3.08) million | $(5.87) million | $(1.96) million |
| General & Administrative | $(1.19) million | $(2.56) million | $(2.22) million |
| Cash & Equivalents (End of Period) | $13.0 million | $13.0 million | $10.8 million |
| Net Cash Used in Operating Activities | N/A | $(8.04) million | $(3.82) million |
| Stock-Based Compensation | $0.28 million | $0.60 million | $0.09 million |
Note: All financial figures are in thousands unless otherwise noted. The company reported no debt obligations.
Material Changes vs. Prior Period
- Increased R&D Spend: Research and development expenses increased by 187% in Q2 2026 and 200% YTD 2026 compared to the prior year periods. This was driven by a $1.8 million increase in nonclinical toxicology study costs and a $1.5 million increase in Chemistry, Manufacturing, and Controls (CMC) costs to advance the PH-762 program.
- Cash Burn: Net cash used in operating activities increased by approximately $4.2 million YTD 2026 compared to YTD 2025, reflecting the accelerated development spend.
- Financing Activity: Unlike the prior year, there were no financing cash inflows in the first six months of 2026. The company relied on cash reserves from financings completed in late 2025 (November 2025 Financing raised ~$12.1 million).
- Stock-Based Compensation: Increased significantly to $0.60 million YTD 2026 from $0.09 million in the prior year period due to new RSU grants.
Outlook, Guidance, and Risks
- PH-762 Progress: The Phase 1b clinical trial for PH-762 (cutaneous squamous cell carcinoma) is fully enrolled (22 patients) and completed. Data analysis is ongoing, with an FDA meeting targeted for Q3 2026 to discuss next steps. A pivotal GLP toxicology study was initiated in May 2026.
- Liquidity: Management believes current cash of $13.0 million is sufficient to fund operations for at least 12 months from the filing date. No product revenue is expected in the foreseeable future.
- Capital Raising: In April 2026, the company established an "At the Market" (ATM) sales agreement to sell up to $6.36 million of common stock. As of June 30, 2026, no shares have been sold under this program.
- Risks: Key risks include the unproven nature of the INTASYL technology, potential delays in clinical trials or FDA approvals, and the necessity of raising additional capital to continue operations. Failure to secure funding could force the company to scale back or terminate operations.
Investor Verification Checklist
- Cash Runway: Verify the $13.0 million cash balance against the projected burn rate to confirm the 12-month liquidity runway.
- PH-762 Data Readout: Monitor the upcoming FDA meeting in Q3 2026 and the release of final Phase 1b data for cutaneous squamous cell carcinoma.
- ATM Utilization: Track whether the company initiates sales under the $6.36 million ATM program to fund the planned Phase 2b/3 trial.
- Dilution Risk: Note the significant number of outstanding warrants (13.4 million shares) and potential future equity issuances required for funding.
- PH-894 Status: Confirm the continued deferral of the IND submission for PH-894 as the company prioritizes PH-762.