Phio Pharmaceuticals Corp. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, the company had cash and cash equivalents of $5.39 million, a decrease from $8.49 million at the end of 2023. Total current assets also fell to $5.86 million from $9.32 million, while total assets decreased to $5.87 million from $9.36 million. The company’s total stockholders’ equity was reported at $4.95 million, down from $7.73 million at the end of 2023, raising concerns about compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum of $2.5 million in stockholders' equity.

For the three months ended September 30, 2024, Phio Pharmaceuticals recorded total operating expenses of $1.59 million, a significant reduction from $2.78 million in the same period of 2023. The operating loss for this quarter was $(1.59 million), compared to $(2.78 million) in the prior year. The net loss for the quarter was $(1.52 million), down from $(2.78 million) in 2023, resulting in a net loss per share of $(1.54), compared to $(10.25) in the same period last year.

For the nine months ended September 30, 2024, total operating expenses were $5.71 million, down from $8.93 million in 2023. The net loss for this period was $(5.52 million), compared to $(8.93 million) in the previous year, with a net loss per share of $(8.23), compared to $(45.28) in 2023.

The company implemented a cost rationalization program in 2023, which included a 36% reduction in research personnel to redirect funds towards the Phase 1b clinical trial of its lead product candidate, PH-762, for skin cancer. Research and development expenses for the three months ended September 30, 2024, decreased by 64% compared to the same period in 2023, primarily due to reductions in salary-related costs and the wind-down of preclinical studies.

In May 2024, Phio terminated its Clinical Co-Development Agreement with AgonOx, which had involved the development of a T cell-based therapy using PH-762. This termination eliminated future financial obligations and milestone entitlements, although the company still has remaining payment obligations of $35,000 to AgonOx for accrued costs prior to the termination.

The company raised approximately $2.64 million in July 2024 through the exercise of existing warrants at a reduced price, which is expected to fund operations into Q2 2025. However, Phio Pharmaceuticals continues to face substantial doubt regarding its ability to continue as a going concern, dependent on raising additional capital through various means.