Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-36304

Phio Pharmaceuticals Corp.

(Exact name of registrant as specified in its charter)

Delaware	45-3215903
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

11 Apex Drive, Suite 300A, PMB 2006, Marlborough, MA 01752

(Address of principal executive office) (Zip code)

Registrant’s telephone number, including area code: (508) 767-3861

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value, $0.0001 per share	PHIO	The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 2, 2024, Phio Pharmaceuticals Corp. had 860,721 shares of common stock, $0.0001 par value, outstanding.

PHIO PHARMACEUTICALS CORP.

FORM 10-Q — QUARTER ENDED JUNE 30, 2024

INDEX

Part No.	Item No.	Description	Page No.

I		FINANCIAL INFORMATION	3

	1	Financial Statements (Unaudited)	3
		Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	3
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023	4
		Condensed Consolidated Statements of Preferred Stock and Stockholders’ Equity for the Three and Six Months Ended June 30, 2024 and 2023	5
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023	6
		Notes to Condensed Consolidated Financial Statements	7
	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
	3	Quantitative and Qualitative Disclosures About Market Risk	22
	4	Controls and Procedures	22

II		OTHER INFORMATION	23

	1	Legal Proceedings	23
	1A	Risk Factors	23
	2	Unregistered Sales of Equity Securities and Use of Proceeds	24
	3	Defaults Upon Senior Securities	24
	4	Mine Safety Disclosures	24
	5	Other Information	24
	6	Exhibits	25

Signatures			26

PART I — FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)

(Unaudited)


	June 30, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	4,698		$	8,490
Prepaid expenses and other current assets		594			832
Total current assets		5,292			9,322
Right of use asset		–			33
Property and equipment, net		1			6
Other assets		3			3
Total assets	$	5,296		$	9,364
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	335		$	657
Accrued expenses		1,188			942
Lease liability		–			35
Total current liabilities		1,523			1,634
Commitments and contingencies (Note 2)		–			–
Stockholders’ equity:
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and December 31, 2023		–			–
Common stock, $0.0001 par value, 100,000,000 shares authorized; 510,188 and 416,368 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		–			–
Additional paid-in capital		146,979			146,936
Accumulated deficit		(143,206	)		(139,206	)
Total stockholders’ equity		3,773			7,730
Total liabilities and stockholders’ equity	$	5,296		$	9,364

The accompanying notes are an integral part of these condensed consolidated financial statements.

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share data)

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Operating expenses:
Research and development	$	866		$	1,383		$	2,014		$	3,517
General and administrative		1,048			1,164			2,109			2,632
Total operating expenses		1,914			2,547			4,123			6,149
Operating loss		(1,914	)		(2,547	)		(4,123	)		(6,149	)
Total other income (expense), net		68			(2	)		123			(2	)
Net loss	$	(1,846	)	$	(2,549	)	$	(4,000	)	$	(6,151	)
Net loss per common share:
Basic and diluted	$	(3.62	)	$	(13.27	)	$	(7.85	)	$	(38.52	)
Weighted average number of common shares outstanding
Basic and diluted		510,188			192,054			509,542			159,663

The accompanying notes are an integral part of these condensed consolidated financial statements.

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF

PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share data)

(Unaudited)


	Series D Preferred Stock				Common Stock					Additional
For the Three and Six Months Ended June 30, 2024	Shares		Amount		Shares			Amount		Paid in Capital			Accumulated Deficit			Total
Balance at December 31, 2023		–	$	–		416,368		$	–	$	146,936		$	(139,206	)	$	7,730
Issuance of common stock upon exercise of warrants		–		–		91,820			–		–			–			–
Issuance of common stock upon vesting of restricted stock units		–		–		2,689			–		–			–			–
Shares withheld for payroll taxes		–		–		(689	)		–		(4	)		–			(4	)
Stock-based compensation expense		–		–		–			–		32			–			32
Net loss		–		–		–			–		–			(2,154	)		(2,154	)
Balance at March 31, 2024		–	$	–		510,188		$	–	$	146,964		$	(141,360	)	$	5,604
Stock-based compensation expense		–		–		–			–		15			–			15
Net loss		–		–		–			–		–			(1,846	)		(1,846	)
Balance at June 30, 2024		–	$	–		510,188		$	–	$	146,979		$	(143,206	)	$	3,773


	Series D Preferred Stock						Common Stock					Additional
For the Three and Six Months Ended June 30, 2023	Shares			Amount			Shares			Amount		Paid-in Capital			Accumulated Deficit			Total
Balance at December 31, 2022		1		$	2			126,558		$	–	$	139,218		$	(128,380	)	$	10,838
Cash-in-lieu of fractional shares for reverse stock split		–			–			(190	)		–		(11	)		–			(11	)
Redemption of preferred stock		(1	)		(2	)		–			–		–			–			–
Issuance of common stock upon vesting of restricted stock units		–			–			2,009			–		–			–			–
Shares withheld for payroll taxes		–			–			(535	)		–		(25	)		–			(25	)
Stock-based compensation expense		–			–			–			–		111			–			111
Net loss		–			–			–			–		–			(3,602	)	$	(3,602	)
Balance at March 31, 2023		–		$	–			127,842		$	–	$	139,293		$	(131,982	)		7,311
Issuance of common stock and warrants, net of offering costs		–			–			73,292			–		5,048			–			5,048
Issuance of common stock upon exercise of warrants		–			–			19,444			–		–			–			–
Stock-based compensation expense		–			–			–			–		94			–			94
Net loss		–			–			–			–		–			(2,549	)		(2,549	)
Balance at June 30, 2023		–		$	–			220,578		$	–	$	144,435		$	(134,531	)	$	9,904

The accompanying notes are an integral part of these condensed consolidated financial statements.

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)
(Unaudited)


	Six Months Ended June 30,
	2024			2023
Cash flows from operating activities:
Net loss	$	(4,000	)	$	(6,151	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2			31
Amortization of right of use asset		33			63
Loss on disposal of property and equipment		3			–
Stock-based compensation		47			205
Changes in operating assets and liabilities:
Prepaid expenses and other assets		238			(45	)
Accounts payable		(322	)		(138	)
Accrued expenses		246			622
Lease liability		(35	)		(66	)
Net cash used in operating activities		(3,788	)		(5,479	)
Cash flows from investing activities:
Cash paid for purchase of property and equipment		–			(5	)
Net cash used in investing activities		–			(5	)
Cash flows from financing activities:
Net proceeds from the issuance of common stock and warrants		–			5,048
Cash in lieu of fractional shares for reverse stock split		–			(11	)
Redemption of Series D preferred stock		–			(2	)
Payment of taxes on net share settlements of restricted stock units		(4	)		(25	)
Net cash (used in) provided by financing activities		(4	)		5,010
Net decrease in cash, cash equivalents and restricted cash		(3,792	)		(474	)
Cash, cash equivalents and restricted cash at the beginning of period		8,490			11,831
Cash, cash equivalents and restricted cash at the end of period	$	4,698		$	11,357

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals above:


	June 30,
	2024		2023
Cash and cash equivalents	$	4,698	$	11,307
Restricted cash		–		50
Cash, cash equivalents and restricted cash	$	4,698	$	11,357

The accompanying notes are an integral part of these condensed consolidated financial statements.

PHIO PHARMACEUTICALS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Significant Accounting Policies

Nature of Operations

Phio Pharmaceuticals Corp. (“Phio” or the “Company”) is a clinical stage biotechnology company whose proprietary INTASYL® small interfering RNA gene silencing technology is designed to make immune cells more effective in killing tumor cells. The Company is developing therapeutics that are designed to leverage INTASYL to precisely target specific proteins that reduce the body’s ability to fight cancer, without the need for specialized formulations or drug delivery systems.

Phio was incorporated in the state of Delaware in 2011 as RXi Pharmaceuticals Corporation. On November 19, 2018, the Company changed its name to Phio Pharmaceuticals Corp., to reflect its transition from a platform company to one that is fully committed to developing groundbreaking immuno-oncology therapeutics.

Effective July 5, 2024, the Company completed a 1-for-9 reverse stock split of the Company’s outstanding common stock, including reclassifying an amount equal to the reduction in par value to additional paid-in capital. The reverse stock split did not reduce the number of authorized shares of the Company’s common or preferred stock. All share and per share amounts have been adjusted to give effect to the reverse stock split.

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures that are included in the Company’s annual consolidated financial statements, but that are not required for interim reporting purposes, have been condensed or omitted. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of the condensed consolidated financial statements have been included.

These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (the “2023 Form 10-K”). Interim results are not necessarily indicative of results for a full year.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MirImmune, LLC. All material intercompany accounts have been eliminated in consolidation.

Segments

The Company operates as one operating segment and all assets are located in the United States.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas subject to significant estimates and judgement include, among others, those related to the fair value of equity awards, accruals for research and development expenses, useful lives of property and equipment, and the valuation allowance on the Company’s deferred tax assets. On an ongoing basis the Company evaluates its estimates and bases its estimates on historical experience and other relevant assumptions that the Company believes are reasonable under the circumstances. Actual results could differ materially from these estimates.

Liquidity

The Company has reported recurring losses from operations since its inception and expects to continue to have negative cash flows from operations for the foreseeable future. Historically, the Company’s primary source of funding has been from sales of its securities. The Company’s ability to continue to fund its operations is dependent on obtaining funding from third parties, such as proceeds from the issuance of debt, sale of equity, or strategic opportunities, in order to maintain its operations. This is dependent on a number of factors, including the market demand or liquidity of the Company’s common stock. There is no guarantee that debt, additional equity or other funding will be available to the Company on acceptable terms, or at all. If the Company fails to obtain additional funding when needed, the Company would be forced to scale back or terminate its operations or seek to merge with or to be acquired by another company.

The Company has limited cash resources, has reported recurring losses from operations since inception, has negative operating cash flows and has not yet received product revenues. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern, and the Company’s current cash resources may not provide sufficient capital to fund operations for at least the next 12 months from the date of the release of these condensed consolidated financial statements. The continuation of the Company as a going concern depends upon the Company’s ability to raise additional capital through an equity offering, debt offering and/or strategic opportunity to fund its operations. There can be no assurance that the Company will be successful in accomplishing these plans in order to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents include unrestricted cash accounts, money market investments and highly liquid investment instruments with original maturity of three months or less at the date of purchase.

Other than as set forth above, there have been no material changes to the significant accounting policies disclosed in the Company’s 2023 Form 10-K.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280) – Improvements to Reporting Segment Disclosures” (“ASU 2023-07”), which requires disclosure of incremental segment information on an annual and interim basis. In addition, ASU 2023-07 clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The enhanced disclosures are required to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and disclosures, but does not expect that it will have a material impact on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of specific categories in the rate reconciliation table along with additional information for reconciling items that meet a quantitative threshold, disclosure of disaggregated income taxes paid and modifies other income tax-related disclosures. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024 and allows for adoption on a prospective basis, with a retrospective option. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09, but does not expect that it will have a material impact on its consolidated financial statements.

2. Collaboration Agreement

AgonOx, Inc. (“AgonOx”)

In February 2021, the Company entered into a clinical co-development collaboration agreement (the “Clinical Co-Development Agreement”) with AgonOx, a private company developing a pipeline of novel immunotherapy drugs targeting key regulators of the immune response to cancer. On May 8, 2024, the Company terminated the Clinical Co-Development Agreement with AgonOx, which such termination was effective immediately. Under the Clinical Co-Development Agreement, Phio and AgonOx were working to develop a T cell-based therapy using the Company’s lead product candidate, PH-762, and AgonOx’s “double positive” tumor infiltrating lymphocytes (“DP TIL”) technology. Per the terms of the Clinical Co-Development Agreement, the Company had agreed to reimburse AgonOx up to $4,000,000 in expenses incurred to conduct a Phase 1 clinical trial of PH-762 treated DP TIL in patients with advanced melanoma and other advanced solid tumors and was entitled to certain future development milestones and low single-digit sales-based royalty payments from AgonOx licensing its DP TIL technology.

The Company recognized its share of costs arising from research and development activities performed by AgonOx in the Company’s condensed consolidated financial statements in the period AgonOx incurred such expense. Effective as of the date of termination, the Clinical Co-Development Agreement and the continuing obligations of the Company and AgonOx thereunder were terminated in their entirety. As a result, the Company is no longer required to provide financial support for the development costs incurred under the Clinical Co-Development Agreement, and is not entitled to future development milestones or royalty payments from AgonOx’s licensing of its DP TIL technology.

The Company will pay to AgonOx all Company payment obligations that accrued prior to the termination of the Clinical Co-Development Agreement. Remaining payments to be made to AgonOx as of June 30, 2024 were $344,000, which primarily related to accrued obligations for patient fees and other miscellaneous costs as of the date of termination. Pursuant to the terms of the Clinical Co-Development Agreement, the Company and AgonOx are coordinating the orderly wind-down of the Phase 1 clinical trial. Each of the Company and AgonOx shall be responsible for its own costs and expenses incurred in connection with the wind-down of the Phase 1 clinical trial.

The Company recognized approximately $56,000 and $106,000 of expense in connection with the Clinical Co-Development Agreement during the three and six months ended June 30, 2024, respectively, which relate to the Company’s expense obligations under the Clinical Co-Development Agreement through the date of termination. The Company recognized approximately $181,000 and $300,000 of expense in connection with the Clinical Co-Development Agreement during the three and six months ended June 30, 2023, respectively.

3. Fair Value of Financial Instruments

The Company follows the provisions of the FASB Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement,” for the Company’s financial assets and liabilities that are re-measured and reported at fair value each reporting period and are re-measured and reported at fair value at least annually using a fair value hierarchy that is broken down into three levels. Level inputs are defined as follows:

Level 1 – quoted prices in active markets for identical assets or liabilities.

Level 2 – other significant observable inputs for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.

As of June 30, 2024, the Company categorized its cash equivalents as Level 1 hierarchy as the carrying amounts approximate their fair value due to their short-term nature and market rates of interest. As of December 31, 2023, the Company did not identify any financial instruments required to be presented at fair value.


Description	June 30, 2024		Quoted Prices In Active Markets (Level 1)		Other Significant Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	4,689	$	4,689	$	–	$	–
Total	$	4,689	$	4,689	$	–	$	–

The carrying amounts of cash, accounts payable and accrued expenses of the Company approximate their fair values due to their short-term nature.

4. Leases

The Company entered into a lease for a laboratory facility located at 17 Briden Street, Worcester, Massachusetts, which covers 321 square feet of rentable space. The lease commenced on March 1, 2024 and had an original expiration date of August 31, 2024. The Company has the option to renew the lease for additional 6-month periods. On June 1, 2024, the Company elected the option to renew the lease for an additional 6-month period, and the lease will expire on February 28, 2025. The Company made an accounting policy election under the FASB ASC Topic 824, “Leases” not to recognize leases with a term less than one year on the balance sheet and that do not contain a purchase option. Under the short-term lease election, the Company will recognize the lease payments for the laboratory facility on a straight-line basis over the lease term.

The total base rent for the premises over each 6-month term is expected to be $15,000. During the three and six month periods ending June 30, 2024, the Company recognized $8,180 and $10,780, respectively, of rent expense and variable lease costs related to the laboratory facility.

The Company’s lease for its corporate headquarters and primary research facility in Marlborough, Massachusetts was for a total of 7,581 square feet of office and laboratory space and expired on March 31, 2024. The lease agreement did not contain information to determine the borrowing rate implicit in the lease. As such, the Company calculated its incremental borrowing rate based on what the Company would have to pay to borrow on a collateralized basis over the lease term for an amount equal to the remaining lease payments, taking into consideration such assumptions as, but not limited to, the U.S. treasury yield rate and borrowing rates from a creditworthy financial institution using the above lease factors. The Company has continued operations as a primarily remote business with the expiration of the lease, but has contracted a private mailbox with an address of 11 Apex Drive, Suite 300A, PMB 2006, Marlborough, MA 01752 to use as its principal mailing address for SEC and other purposes.

The lease for the Company’s former corporate headquarters represented all of the Company’s capitalized lease obligations.

The amounts reported in the condensed consolidated balance sheets for the Company’s former corporate headquarters classified as an operating lease in which the Company is the lessee and other supplemental balance sheet information is set forth as follows, in thousands, except the lease term (number of years) and discount rate:


	June 30, 2024		December 31, 2023
Assets
Right of use asset	$	–	$	33
Liabilities
Lease liability	$	–	$	35
Lease Term and Discount Rate
Weighted average remaining lease term		–		0.25
Weighted average discount rate		–		4.70%

There were no operating lease costs for our former corporate headquarters included in operating expense for the three months ended June 30, 2024. Operating lease costs for our former corporate headquarters included in operating expense were $33,000 for the three months ended June 30, 2023 and $33,000 and $66,000 for the six months ended June 30, 2024 and 2023, respectively.

There was no cash paid for the amounts included in the measurement of the operating lease liability on the Company’s condensed consolidated balance sheets and included within changes in the lease liability in the operating activities of the Company’s condensed consolidated statements of cash flows for the Company’s former corporate headquarters for the three months ended June 30, 2024. Cash paid for the amounts included in the measurement of the operating lease liability on the Company’s condensed consolidated balance sheets and included within changes in the lease liability in the operating activities of the Company’s condensed consolidated statements of cash flows for the Company’s former corporate headquarters was $35,000 for the three months ended June 30, 2023 and $35,000 and $69,000 for the six months ended June 30, 2024 and 2023, respectively.

5. Stockholders’ Equity

Financings

May 2024 Financing — On May 16, 2024, the Company entered into a purchase agreement (the “Purchase Agreement”) with Triton Funds LP (“Triton”), pursuant to which the Company agreed to sell, and Triton agreed to purchase, upon the Company’s request in one or more transactions, up to 95,833 shares of the Company’s common stock at a purchase price of $6.48 per share (the “Purchase Price”), for aggregate gross proceeds of up to $621,000. The Company recorded expense of approximately $100,000, primarily related to legal fees, in connection with the execution of the Purchase Agreement with Triton. On July 3, 2024, the Company terminated the Purchase Agreement with Triton effective immediately. No shares of common stock were sold by the Company pursuant to the Purchase Agreement prior to termination.

April 2023 Financing — On April 20, 2023, the Company completed a registered direct offering and a concurrent private placement of a total of: 39,331 registered shares of the Company’s common stock at a purchase price per share of $50.85, unregistered five and one-half year term Series A warrants to purchase up to 39,331 shares of common stock at an exercise price of $48.60 per share and unregistered eighteen month term Series B warrants to purchase up to 39,331 shares of common stock at an exercise price of $48.60 per share (collectively, the “April 2023 Financing”). In addition, the Company issued unregistered warrants to the placement agent, H.C. Wainwright & Co., LLC (“HCW”), in the April 2023 Financing to purchase a total of 2,950 shares of common stock at an exercise price of $63.56 per share. Net proceeds to the Company from the April 2023 Financing were $1,538,000 after deducting placement agent fees and offering expenses.

In connection with the April 2023 Financing, the Company entered into warrant amendment agreements (the “Warrant Amendment Agreements”) with the participating investors to amend the exercise price of certain existing warrants to purchase up to an aggregate of 21,291 shares of common stock that were previously issued in April 2018 through January 2021, such that each of the amended warrants have an exercise price of $48.60 per share. The Company received $23,952 as consideration in connection with the Warrant Amendment Agreements. The Company assessed the amendments to the exercise price of the warrants under ASC Topic 815, “Derivatives and Hedging” (“ASC 815”) and determined that the amendment to the exercise price was completed in connection with and contingent on the close of the April 2023 Financing. The increase in fair value of $293,000 related to the Warrant Amendment Agreements was recognized as an equity issuance cost and recorded in additional paid in capital per ASC 815.

June 2023 Financing — On June 2, 2023, the Company completed a registered direct offering and a concurrent private placement of a total of: 25,961 registered shares and 8,000 unregistered shares of the Company’s common stock each at a purchase price per share of $38.52, unregistered pre-funded warrants to purchase up to an aggregate of 69,881 shares of common stock at a purchase price per share of $38.511 and with a pre-funded warrant exercise price of $0.009 per share, unregistered five and one-half year term Series A warrants to purchase up to an aggregate of 103,842 shares of common stock at an exercise price of $36.27 per share and unregistered eighteen month term Series B warrants to purchase up to an aggregate of 103,842 shares of common stock at an exercise price of $36.27 per share (collectively, the “June 2023 Financing”). In addition, the Company issued unregistered warrants to the placement agent, HCW, in the June 2023 Financing to purchase a total of 7,788 shares of common stock at an exercise price of $48.15 per share. Net proceeds to the Company from the June 2023 Financing were $3,510,000 after deducting placement agent fees and offering expenses.

Warrants

The Company first assesses warrants that are issued by the Company under the FASB ASC Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”) to determine whether the warrants are within the scope of ASC 480. If there are no instances outside of the Company’s control that could require cash settlement, the Company then applies and follows the applicable accounting guidance in ASC 815. Financial instruments are accounted for as either derivative liabilities or equity instruments depending on the specific terms of the agreement. Based on the assessment of the warrants issued by the Company under the guidance in ASC 480 and ASC 815, the warrants issued by the Company have been classified within stockholder’s equity.

In December 2023, the Company entered into an inducement letter agreement (the “December 2023 Inducement Letter Agreement”) with certain holders of the Company’s existing warrants to purchase up to an aggregate of 236,695 shares of the Company’s common stock (the “December 2023 Financing”). Pursuant to the terms of the December 2023 Inducement Letter Agreement, in the event that the exercise of the existing warrants in the December 2023 Financing would have otherwise caused a holder to exceed the beneficial ownership limitations set forth in the existing warrant, the Company issued the number of shares that would not cause a holder to exceed such beneficial ownership limitation and agreed to hold such balance of shares of common stock in abeyance. Accordingly, an aggregate of 91,820 shares of common stock were held in abeyance (the “December 2023 Abeyance Shares”) with such December 2023 Abeyance Shares evidenced through the holder’s existing warrants and which were deemed to be prepaid. The December 2023 Abeyance Shares were held until notice was received by the holder that the balance of the shares of common stock could be issued in compliance with such beneficial ownership limitations and were exercised pursuant to a notice of exercise from the holder. Until such time, the December 2023 Abeyance Shares were evidenced through the holder’s existing warrants and have been included in the Company’s table of outstanding warrants below.

During the three months ended June 30, 2024 and 2023, there were no warrant exercises. During the six months ended June 30, 2024, all of the December 2023 Abeyance Shares were released and issued, and during the six months ended June 30, 2023, 19,444 shares of common stock were issued related to the exercise of pre-funded warrants from the June 2023 Financing.

The following table summarizes the Company’s outstanding warrants, all of which are classified as equity instruments, at June 30, 2024:

Schedule of outstanding warrants
	Number of Shares			Weighted- Average Exercise Price Per Share
Outstanding at December 31, 2023		703,530		$	35.99
Issued		–			–
Exercised		(91,820	)		11.97
Expired		–			–
Outstanding at June 30, 2024		611,710		$	39.59

6. Stock-based Compensation

Restricted Stock Units

Restricted stock units (“RSUs”) are issued under the Company’s 2020 Long-Term Incentive Plan (the “2020 Plan”) or as inducement grants issued outside of the 2020 Plan to new employees. RSUs are generally subject to graded vesting and the satisfaction of certain service requirements. RSUs granted by the Company to employees generally vest annually over 3 years after the grant date and over 1 year after the grant date for non-employee members of the Board of Directors. Upon vesting, each outstanding RSU will be settled for one share of the Company’s common stock. Employee RSU recipients may elect to net share settle upon vesting, in which case the Company pays the employee’s income taxes due upon vesting and withholds a number of shares of equal value. The Company does not expect to repurchase shares to satisfy RSU vests. The fair value of the RSUs awarded are based upon the Company’s closing stock price at the grant date and are expensed over the requisite service period.

The following table summarizes the activity of the Company’s RSUs for the six months ended June 30, 2024:

Summary of RSUs activity
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Unvested units at December 31, 2023		5,529		$	74.88
Granted		–			–
Vested		(2,692	)		79.23
Forfeited		(987	)		95.33
Unvested units at June 30, 2024		1,850		$	57.58

There were no RSUs granted during the three months or six months ended June 30, 2024 or the three months ended June 30, 2023. The weighted-average fair value of RSUs granted during the six months ended June 30, 2023 was $47.16.

Stock-based compensation expense related to RSUs was $15,000 and $94,000 for the three months ended June 30, 2024 and 2023, respectively. Stock-based compensation expense related to RSUs was $41,000 and $205,000 for the six months ended June 30, 2024 and 2023, respectively.

The aggregate fair value of awards that vested during the six months ended June 30, 2024 and 2023 was $17,000 and $95,000, respectively, which represents the market value of the Company’s common stock on the date that the RSUs vested.

Stock Options

Stock options are available for issuance under the 2020 Plan or as inducement grants issued outside of the 2020 Plan to new employees. Stock options are generally subject to graded vesting and the satisfaction of service requirements. Stock options granted by the Company to employees generally vest annually over 4 years after the grant date and generally vest over 1 year after the grant date for non-employee members of the Board of Directors and expire within ten years of grant. Upon the exercise of a stock option, the Company issues new shares and delivers them to the recipient. The Company does not expect to repurchase shares to satisfy stock option exercises.

The Company uses the Black-Scholes option-pricing model to determine the fair value of all its option grants. The risk-free interest rate used for each grant was based upon the yield on zero-coupon U.S. Treasury securities with a term similar to the expected life of the related option. The Company’s expected stock price volatility assumption is based upon the Company’s own implied volatility. As the Company has limited stock option exercise information, the expected life assumption used for option grants is based upon the simplified method provided for under the FASB ASC Topic 718, “Compensation — Stock Compensation”. The dividend yield assumption is based upon the fact that the Company has never paid cash dividends and presently has no intention of paying cash dividends.

The Company did not grant any stock options during the three or six months ended June 30, 2024 and 2023.

The following table summarizes the activity of the Company’s stock options for the six months ended June 30, 2024:

Summary of stock options activity
	Number of Shares			Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value
Balance at December 31, 2023		1,146		$	10,120.69
Granted		–			–
Exercised		–			–
Forfeited		–			–
Expired		(13	)		598,313.35
Balance at June 30, 2024		1,133		$	3,371.79	$	–
Exercisable at June 30, 2024		1,133		$	3,371.79	$	–

Stock-based compensation expense related to stock options for the six months ended June 30, 2024 was $6,000. The Company did not have any stock-based compensation expense related to stock options for the three months ended June 30, 2024 and 2023 or the six months ended June 30, 2023.

Compensation Expense Related to Equity Awards

The following table sets forth total stock-based compensation expense for the three and six months ended June 30, 2024 and 2023, in thousands:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024			2023
Research and development	$	–	$	49	$	(11	)	$	112
General and administrative		15		45		58			93
Total stock-based compensation	$	15	$	94	$	47		$	205

7. Net Loss per Common Share

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted net loss per share is computed by dividing the Company’s net loss by the weighted average number of common shares outstanding and the impact of the dilutive effect of potential common stock equivalents, except when the inclusion of such potential common stock equivalents would be anti-dilutive. Dilutive potential common stock equivalents primarily consist of stock options, RSUs and warrants. Therefore, basic and diluted net loss per share applicable to common stockholders were the same for all periods presented because the impact of these items is generally anti-dilutive during periods of net loss.

The weighted average number of common shares outstanding as of June 30, 2023 includes the pre-funded warrants issued in connection with the June 2023 Financing, the exercise of which requires nominal consideration for the delivery of the shares of common stock. Therefore, these pre-funded warrants are not included in the table below.

The following table sets forth the potential common shares excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive:

Schedule of anti dilutive shares
	June 30,
	2024		2023
Stock options		1,133		16
Unvested RSUs		1,850		8,083
Warrants		611,710		357,481
Total		614,693		365,580

8. Subsequent Events

In July 2024, the Company entered into inducement letter agreements (the “July 2024 Inducement Letter Agreements”) with certain holders of certain of the Company’s existing warrants to purchase up to an aggregate of 545,286 shares of the Company’s common stock. The existing warrants were originally issued in February 2020 through December 2023, having exercise prices between $324.00 and $9.72 per share. Pursuant to the July 2024 Inducement Letter Agreements, these warrants were exercised for cash at a reduced exercise of $5.45 per share in consideration of the Company’s agreement to issue new unregistered five and one-half year term Series C warrants to purchase up to 583,098 shares of common stock at an exercise price of $5.45 and new unregistered eighteen month term Series D warrants to purchase up to 507,474 shares of common stock at an exercise price of $5.45, both issued and sold at a price of $0.125 per warrant share (the “July 2024 Financing”). In addition, the Company issued warrants to the placement agent, HCW, to purchase a total of 40,896 shares of common stock at an exercise price of $6.8125 per share. The net proceeds to the Company from the July 2024 Financing are approximately $2,600,000, after deducting placement agent fees and offering expenses.

Pursuant to the terms of the July 2024 Inducement Letter Agreements, in the event that the exercise of the existing warrants in the July 2024 Financing would have otherwise caused a holder to exceed the beneficial ownership limitations set forth in the existing warrant, the Company issued the number of shares that would not cause a holder to exceed such beneficial ownership limitation and agreed to hold such balance of shares of common stock in abeyance. Accordingly, an aggregate of 328,758 shares of common stock were held in abeyance (the “July 2024 Abeyance Shares”) with such July 2024 Abeyance Shares evidenced through the holder’s existing warrants and which are deemed to be prepaid. The July 2024 Abeyance Shares will be held until notice is received by the holder that the balance of the shares of common stock may be issued in compliance with such beneficial ownership limitations and may be exercised pursuant to a notice of exercise from the holder. Until such time, the Abeyance Shares are evidenced through the holder’s existing warrants. Subsequent to the balance sheet date and through the date of the filing with the SEC of this Quarterly Report on Form 10-Q, 201,758 of the July 2024 Abeyance Shares were released.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

In this report, “we,” “our,” “ours,” “us,” “Phio” and the “Company” refers to Phio Pharmaceuticals Corp. and our subsidiary, MirImmune, LLC and the ongoing business operations of Phio Pharmaceuticals Corp. and MirImmune, LLC, whether conducted through Phio Pharmaceuticals Corp. or MirImmune, LLC.

This management’s discussion and analysis of financial condition as of June 30, 2024 and results of operations for the three and six months ended June 30, 2024 and 2023 should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (the “2023 Form 10-K”).

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “intends,” “believes,” “anticipates,” “indicates,” “plans,” “expects,” “suggests,” “may,” “would,” “should,” “potential,” “designed to,” “will,” “ongoing,” “estimate,” “forecast,” “target,” “predict,” “could” and similar references, although not all forward-looking statements contain these words. Forward-looking statements are neither historical facts nor assurances of future performance. These statements are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Risks that could cause actual results to vary from expected results expressed in our forward-looking statements include, but are not limited to, the impact to our business and operations by inflationary pressures, rising interest rates, recession fears, the development of our product candidates, our ability to execute on business strategies, our ability to develop our product candidates with collaboration partners, if any, and the success of any such collaborations, the timeline and duration for advancing our product candidates into clinical development, results from our preclinical and clinical activities, the timing or likelihood of regulatory filings and approvals, the success of our efforts to commercialize our product candidates if approved, our ability to manufacture and supply our product candidates for clinical activities, and for commercial use if approved, the scope of protection we are able to establish and maintain for intellectual property rights covering our technology platform, and our ability to obtain future financing. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements as a result of a number of important factors, including those identified in our 2023 Form 10-K under the heading “Risk Factors” and in other filings the Company periodically makes with the SEC. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q speak as of the date hereof and the Company does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this report except as required by law.

Overview

Phio is a clinical stage biotechnology company whose proprietary INTASYL® small interfering RNA gene silencing technology is designed to make immune cells more effective in killing tumor cells. We are developing therapeutics that are designed to leverage INTASYL to precisely target specific proteins that reduce the body’s ability to fight cancer, without the need for specialized formulations or drug delivery systems.

Cost Rationalization

In 2023, we implemented a cost rationalization program driven by our transition from a research company to a product development company. This transition resulted in a decision not to renew the lease for our corporate headquarters and primary research facility in Marlborough, Massachusetts, which expired on March 31, 2024. As of April 1, 2024, we have continued operations primarily as a remote business with a laboratory facility in Worcester, Massachusetts. Additionally, we rationalized research personnel and reduced our headcount by approximately 36%. These expense reductions have been redirected to funding the Phase 1b clinical trial with PH-762 directed toward skin cancer.

PH-762

PH-762 is an INTASYL compound designed to reduce the expression of cell death protein 1 (“PD-1”). PD-1 is a protein that inhibits T cells’ ability to kill cancer cells and is a clinically validated target in immunotherapy. Decreasing the expression of PD-1 can thereby increase the capacity of T cells, which protect the body from cancer cells and infections, to kill cancer cells.

Our preclinical studies have demonstrated that direct-to-tumor application of PH-762 resulted in potent anti-tumoral effects and have shown that direct-to-tumor treatment with PH-762 inhibits tumor growth in a dose dependent fashion in PD-1 responsive and refractory models. Importantly, direct-to-tumor administration of PH-762 resulted in activity against distant untreated tumors, indicative of a systemic anti-tumor response. We believe these data further support the potential for PH-762 to provide a strong local immune response without the dose immune-related adverse effects seen with systemic antibody therapy.

PH-762 is currently being evaluated in a U.S. multi-center Phase 1b dose-escalating clinical trial through the intratumoral injection of PH-762 for the treatment of patients with cutaneous squamous cell carcinoma, melanoma and Merkel cell carcinoma. The trial is designed to evaluate the safety and tolerability of neoadjuvant use of intratumorally injected PH-762, assess the tumor response, and determine the dose or dose range for continued study of PH-762 and is expected to enroll up to 30 patients. In November 2023, we announced the dosing of the first patient under a previously cleared Investigational New Drug (“IND”) application by the U.S. Food and Drug Administration. In May 2024, a safety monitoring committee reviewed data from the first dose cohort treated and recommended the escalation to the next dose concentration. The trial is open for the continued enrollment of patients and expects to complete enrollment of patients in the second quarter of 2025.

AgonOx Collaboration

Due to INTASYL’s ease of administration, we have shown that our compounds can easily be incorporated into current adoptive cell therapy (“ACT”) manufacturing processes. In ACT, T cells are usually taken from a patient's own blood or tumor tissue, grown in large numbers in a laboratory, and then given back to the patient to help the immune system fight cancer. By treating T cells with our INTASYL compounds while they are being grown in the laboratory, we believe our INTASYL compounds can improve these immune cells to make them more effective in killing cancer. Preclinical data generated in collaboration with AgonOx, Inc. (“AgonOx”), a private company developing a pipeline of novel immunotherapy drugs targeting key regulators of the immune response to cancer, demonstrated that treating AgonOx’s “double positive” tumor infiltrating lymphocytes (“DP TIL”) with PH-762 increased their tumor killing activity by two-fold.

In February 2021, we entered into a clinical co-development collaboration agreement (the “Clinical Co-Development Agreement”) with AgonOx to develop a T cell-based therapy using PH-762 and AgonOx’s DP TIL. Under the Clinical Co-Development Agreement, we and AgonOx were working to develop a T cell-based therapy using the our lead product candidate, PH-762, and AgonOx’s DP TIL technology. We had agreed to reimburse AgonOx up to $4 million in expenses incurred to conduct a Phase 1 clinical trial of PH-762 treated DP TIL in patients with advanced melanoma and other advanced solid tumors. We were also eligible to receive certain future development milestones and low single-digit sales-based royalty payments from AgonOx’s licensing of its DP TIL technology.

In May 2024, we terminated the Clinical Co-Development Agreement with AgonOx, which such termination was effective immediately. Effective as of the date of termination, the Clinical Co-Development Agreement and our continuing obligations and those of AgonOx thereunder were terminated in their entirety. We are no longer required to provide financial support for the development of costs incurred under the Clinical Co-Development Agreement, and we are no longer entitled to future development milestones or royalty payments from AgonOx’s licensing of its DP TIL technology. We will pay to AgonOx all payment obligations that accrued prior to the termination of the Clinical Co-Development Agreement. Remaining payments to be made to AgonOx as of June 30, 2024 total $344,000, which primarily relate to accrued obligations for patient fees and other miscellaneous costs as of the date of termination. Pursuant to the terms of the Clinical Co-Development Agreement, we and AgonOx are coordinating the orderly wind-down of the Phase 1 clinical trial. Each of us and AgonOx shall be responsible for its own costs and expenses incurred in connection with the wind-down of the Phase 1 clinical trial.

Prior to the termination of the Clinical Co-Development Agreement with AgonOx, PH-762 treated DP TIL were being evaluated in a Phase 1 clinical trial in the United States with up to 18 patients with advanced melanoma and other advanced solid tumors by AgonOx. The primary trial objectives were to evaluate the safety and to study the potential for enhanced therapeutic benefit from the administration of PH-762 treated DP TIL. AgonOx had enrolled three patients. The first two patients were treated with DP TIL only and the third patient was treated with a combination of DP TIL and PH-762.

Critical Accounting Policies and Estimates

The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions and could have a material impact on our reported results.

There have been no material changes to our critical accounting policies and estimates as compared to those disclosed in our 2023 Form 10-K.

Results of Operations

The following data summarizes the results of our operations for the periods indicated, in thousands:

	Three Months Ended June 30,									Six Months Ended June 30,
Description	2024			2023			Dollar Change			2024			2023			Dollar Change
Operating expenses	$	1,914		$	2,547		$	(633	)	$	4,123		$	6,149		$	(2,026	)
Operating loss	$	(1,914	)	$	(2,547	)	$	633		$	(4,123	)	$	(6,149	)	$	2,026
Net loss	$	(1,846	)	$	(2,549	)	$	703		$	(4,000	)	$	(6,151	)	$	2,151

Comparison of the Three and Six Months Ended June 30, 2024 and 2023

Operating Expenses

The following table summarizes our total operating expenses, for the periods indicated, in thousands:

	Three Months Ended June 30,							Six Months Ended June 30,
Description	2024		2023		Dollar Change			2024		2023		Dollar Change
Research and development	$	866	$	1,383	$	(517	)	$	2,014	$	3,517	$	(1,503	)
General and administrative		1,048		1,164		(116	)		2,109		2,632		(523	)
Total operating expenses	$	1,914	$	2,547	$	(633	)	$	4,123	$	6,149	$	(2,026	)

Research and Development Expenses

Research and development expenses relate to compensation and benefits for research and development personnel, facility-related expenses, supplies, external services, costs to acquire technology licenses, research activities under our research collaboration agreement, expenses associated with preclinical and clinical development activities and other operating costs. Our research and development programs are focused on the development of immuno-oncology therapeutics based on our INTASYL therapeutic platform. Since we commenced operations, research and development expenses have been a significant portion of our total operating expenses and are expected to constitute the majority of our spending for the foreseeable future.

Research and development expenses for the three months ended June 30, 2024 decreased 37% as compared with the three months ended June 30, 2023. The decrease in research and development expenses was primarily driven by our cost rationalization measures in transitioning from a research company to a product development company resulting in a decrease of $246,000 in salary-related costs, including stock-based compensation expense, and $74,000 in lab supplies associated with the reduction in headcount, in addition to a decrease in clinical consulting fees of $110,000 incurred in connection with our IND filing for PH-762 in the prior period.

Research and development expenses for the six months ended June 30, 2024 decreased 43% as compared with the six months ended June 30, 2023. The decrease in research and development expenses was primarily driven by our cost rationalization measures in transitioning from a research company to a product development company resulting in a decrease of $321,000 of expense due to the wind-down of preclinical studies, $470,000 in salary-related costs, including stock-based compensation expense, and $182,000 in lab supplies associated with the reduction in headcount, in addition to a decrease in clinical consulting fees of $335,000 incurred in connection with our IND filing for PH-762 in the prior period and a decrease of $176,000 in manufacturing fees for PH-762.

We anticipate our research and development expenses will remain relatively consistent for the remainder of 2024.

General and Administrative Expenses

General and administrative expenses relate to compensation and benefits for general and administrative personnel, facility-related expenses, professional fees for legal and patent-related activities, audit, tax and consulting services, as well as other general corporate expenses.

General and administrative expenses for the three months ended June 30, 2024 decreased 10% as compared with the three months ended June 30, 2023. The decrease in general and administrative expenses was primarily due to decreases in salary-related expenses for our President & CEO of $78,000 and in professional fees of $60,000 related to consulting expenses as compared to the prior year period.

General and administrative expenses for the six months ended June 30, 2024 decreased 20% as compared with the six months ended June 30, 2023. The decrease in general and administrative expenses was primarily due to decreases in salary-related expenses for our President & CEO of $120,000 and in professional fees for a total of $364,000 related to consulting, legal and patent expenses as compared to the prior year period.

We anticipate our general and administrative expenses will remain relatively consistent for the remainder of 2024.

Liquidity and Capital Resources

Historically, our primary source of funding has been through the sale of our securities. In the future, we will be dependent on obtaining funding from third parties, such as proceeds from the issuance of debt, sale of equity or strategic opportunities, in order to maintain our operations. We have reported recurring losses from operations since inception and expect that we will continue to have negative cash flows from our operations for the foreseeable future. At June 30, 2024, we had cash of $4,698,000 as compared with $8,490,000 at December 31, 2023.

On May 16, 2024, we entered into a purchase agreement (the “Purchase Agreement”) with Triton Funds LP (“Triton”), pursuant to which we agreed to sell, and Triton agreed to purchase, upon our request in one or more transactions, up to 95,833 shares of our common stock at a purchase of $6.48 per share (the “Purchase Price”), for aggregate gross proceeds of up to $621,000. On July 3, 2024, we terminated the Purchase Agreement with Triton effective immediately. No shares of common stock were sold by us pursuant to the Purchase Agreement prior to termination.

In July 2024, we entered into inducement letter agreements (the “July 2024 Inducement Letter Agreements”) with certain holders of certain of our existing warrants to purchase up to an aggregate of 545,286 shares of the Company’s common stock. The existing warrants were originally issued in February 2020 through December 2023, having exercise prices between $324.00 and $9.72 per share. Pursuant to the July 2024 Inducement Letter Agreements, these warrants were exercised for cash at a reduced exercise of $5.45 per share in consideration of our agreement to issue new unregistered five and one-half year term Series C warrants to purchase up to 583,098 shares of common stock at an exercise price of $5.45 and new unregistered eighteen month term Series D warrants to purchase up to 507,474 shares of common stock at an exercise price of $5.45, both issued and sold at a price of $0.125 per warrant share (the “July 2024 Financing”). The net proceeds to us from the July 2024 Financing are approximately $2,600,000, after deducting placement agent fees and offering expenses.

We have limited cash resources, have reported recurring losses from operations since inception, have negative operating cash flows and have not yet received product revenues. These factors raise substantial doubt regarding our ability to continue as a going concern, and our current cash resources may not provide sufficient capital to fund operations for at least the next 12 months from the date of the release of the condensed consolidated financial statements included elsewhere in this Quarterly Report. Our continuation as a going concern depends upon our ability to raise additional capital through equity offerings, debt offerings and/or strategic opportunities to fund our operations. There can be no assurance that we will be successful in accomplishing any of these plans in order to continue as a going concern. The condensed consolidated financial statements included elsewhere in this Quarterly Report do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

The following table summarizes our cash flows for the periods indicated, in thousands:

	Six Months Ended June 30,
	2024			2023
Net cash used in operating activities	$	(3,788	)	$	(5,479	)
Net cash used in investing activities		–			(5	)
Net cash used in (provided by) financing activities		(4	)		5,010
Net decrease in cash, cash equivalents and restricted cash	$	(3,792	)	$	(474	)

Net Cash Flow from Operating Activities

Net cash used in operating activities was $3,788,000 for the six months ended June 30, 2024 as compared with $5,479,000 for the six months ended June 30, 2023. The decrease was primarily due to a decrease in net loss of $2,151,000, a decrease in non-cash related items of $214,000 primarily related to reduced stock-based compensation expense, and a decrease in the changes in operating assets and liabilities of $246,000 primarily as a result of liabilities owed for the completion of preclinical studies in the prior year period.

Net Cash Flow from Investing Activities

There were no investing activities for the six months ended June 30, 2024 as compared with $5,000 for the six months ended June 30, 2023. The decrease in net cash used in investing activities was primarily due to laboratory and computer equipment purchases for our facility during the prior year period.

Net Cash Flow from Financing Activities

Net cash used in financing activities was $4,000 for the six months ended June 30, 2024 as compared with net cash provided by financing activities of $5,010,000 for the six months ended June 30, 2023. The decrease was primarily due to the completion of our financing activities during the prior year period.

Contractual Obligations

Details of our obligations under the Clinical Co-Development Agreement with our former collaboration partner AgonOx can be found in Note 2 of the condensed consolidated financial statements. Outside of the above, there have been no material changes to the contractual obligations as disclosed in our 2023 Form 10-K.

Future Funding Requirements

At June 30, 2024, we had cash and cash equivalents of $4,698,000 and received estimated net proceeds of $2,600,000 from our July 2024 Financing. We expect that our cash and cash equivalents will enable us to fund our current operating plan into Q2 2025. Due to the difficulty and uncertainty associated with the design and implementation of preclinical studies and clinical trials, we will continue to assess our cash and cash equivalents and future funding requirements. However, there is no assurance that additional funding will be achieved and that we will succeed in our future operations. We expect to continue to incur substantial additional operating losses for at least the next several years as we continue to develop our product candidates and seek marketing approval and, subject to obtaining such approval, the eventual commercialization of our product candidates. If we obtain marketing approval for any of our product candidates, we will incur significant sales, marketing and manufacturing expenses. We also expect to continue to incur significant costs to comply with corporate governance, internal controls and similar requirements associated with operating as a public reporting company.

Actual cash requirements could differ from management’s projections due to many factors including additional investments in research and development programs, clinical trial expenses for PH-762, competing technological and market developments, general and administrative expenses, and the costs of any strategic acquisitions and/or development of complementary business opportunities.

We expect to seek additional funding to sustain our future operations and while we have successfully raised capital in the past, the ability to raise capital in future periods is not assured. We do not know if additional capital will be available when needed or on terms favorable to us or our stockholders. Collaboration, licensing or other agreements may not be available on favorable terms, or at all. If we seek to sell our equity securities, we do not know whether and to what extent we will be able to do so, or on what terms. If available, additional equity financing may be dilutive to stockholders, debt financing may involve restrictive covenants or other unfavorable terms and dilute our existing stockholders’ equity, and funding through collaboration, licensing or other commercial agreements may be on unfavorable terms, including requiring us to relinquish rights to certain of our technologies or products. If adequate financing is not available if and when needed, we may delay, reduce the scope of, or eliminate research or development programs, if any, postpone or cancel the pursuit of product candidates, or otherwise significantly curtail our operations to reduce our cash requirements and extend our capital.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, we are not required to provide this information.

ITEM 4.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Principal Executive Officer and our Principal Financial Officer, evaluated the effectiveness of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report to ensure that information that we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives. We believe that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Based on the evaluation of our disclosure controls and procedures as of the end of the period covered by this report, management, with the participation of our Principal Executive Officer and our Principal Financial Officer, concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of such date.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the quarter ending June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

From time to time, we may become a party to various legal proceedings and complaints arising in the ordinary course of business. We are not currently a party to any actual or threatened material legal proceedings of which we are aware.

ITEM 1A.

RISK FACTORS

Other than set forth below, there have been no material changes in our risk factors set forth in Part I, “Item 1A. Risk Factors” in our 2023 Form 10-K. The risk factor set forth below and risk factors disclosed in Part I, “Item 1A. Risk Factors” in our 2023 Form 10-K could materially adversely affect our business, financial condition, or results of operations. This Quarterly Report on Form 10-Q also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including these risks. Additional risks not currently known or currently material to us may also harm our business.

We may not be able to maintain compliance with the continued listing requirements of The Nasdaq Capital Market.

Nasdaq Listing Rule 5550(b)(1) requires companies listed on the Nasdaq Capital Market to maintain stockholders’ equity of at least $2.5 million for continued listing. As of June 30, 2024, our stockholders’ equity was $3.8 million and there can be no assurance that we will be able to maintain or increase our stockholders’ equity in the future. If our stockholders equity falls below $2.5 million, as a result of operating losses or for other reasons, or if we are unable to demonstrate to Nasdaq’s satisfaction that we subsequently regained compliance with this requirement, Nasdaq will notify us of such non-compliance. If we receive such notice from Nasdaq, in accordance with the Nasdaq Listing Rules, we will have 45 calendar days from the date of the notification to submit a plan to regain compliance with Nasdaq Listing Rule 5550(b)(1). If our compliance plan is accepted, we may be granted up to 180 calendar days from the date of the initial notification to evidence compliance. If our compliance plan is not accepted or we are otherwise unable to evidence compliance within Nasdaq’s allotted timeframe, Nasdaq may take steps to delist our common stock.

Such a delisting would have an adverse effect on the market liquidity of our securities, decrease the market price of our securities, result in the potential loss of confidence by investors, suppliers, customers and employees and fewer business development opportunities, and adversely affect our ability to obtain financing for the continuation of our operations. We are actively monitoring our stockholders’ equity and will consider any and all options available to us to maintain compliance with Nasdaq Listing Rule 5550(b)(1).

On January 24, 2024, we received notice (the “Notification Letter”) from Nasdaq notifying us that we were not in compliance with the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of our common stock for the 30 consecutive business days prior to the date of the Notification Letter, we no longer met the minimum bid price requirement. On July 19, 2024, we received written notice (the “Second Notification Letter”) from Nasdaq notifying us that we had regained compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. The Second Notification Letter was sent following the implementation of a one-for-nine reverse split of our common stock (the “Reverse Split”), which became effective on July 5, 2024. Additional information regarding the Reverse Split can be found in our Current Report on Form 8-K filed on July 2, 2024.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

No sales or issuances of unregistered securities occurred that have not previously been disclosed in a Current Report on Form 8-K.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.

MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.

OTHER INFORMATION

During the three months ended June 30, 2024, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6.

EXHIBITS

EXHIBIT INDEX

		Incorporated by Reference Herein
Exhibit Number	Description	Form	Date

3.1	Amended and Restated Certificate of Incorporation of Phio Pharmaceuticals Corp.	Current Report on Form 8-K (File No. 001-36304)	November 19, 2018

3.2	Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Phio Pharmaceuticals Corp.	Current Report on Form 8-K (File No. 001-36304)	January 14, 2020

3.3	Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Phio Pharmaceuticals Corp.	Current Report on Form 8-K (File No. 001-36304)	January 25, 2023

3.4	Amended and Restated Bylaws of Phio Pharmaceuticals Corp.	Current Report on Form 8-K (File No. 001-36304)	May 2, 2022

10.1	Purchase Agreement, dated May 16, 2024, by and between Phio Pharmaceuticals Corp. and Triton Funds LP.	Current Report on Form 8-K (File No. 001-36304)	May 17, 2024

10.2	2020 Phio Pharmaceuticals Corp. Long Term Incentive Plan, as amended and restated. †	Current Report on Form 8-K (File No. 001-36304)	June 21, 2024

31.1	Sarbanes-Oxley Act Section 302 Certification of Principal Executive Officer.*

31.2	Sarbanes-Oxley Act Section 302 Certification of Principal Financial Officer.*

32.1	Sarbanes-Oxley Act Section 906 Certification of Principal Executive Officer.**

32.2	Sarbanes-Oxley Act Section 906 Certification of Principal Financial Officer.**

101.INS	Inline XBRL Instance Document.*
101.SCH	Inline XBRL Taxonomy Extension Schema Document.*
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.*
104	The cover page for this report, formatted in Inline XBRL (included in Exhibit 101).*

_________________
*	Filed herewith.
**	Furnished herewith and not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section or incorporated by reference into any filing under the Securities Act or the Exchange Act.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Phio Pharmaceuticals Corp.

	By:		/s/ Robert J. Bitterman
			Robert J. Bitterman
			President and Chief Executive Officer (as Principal Executive Officer)

			Date: August 14, 2024


	By:		/s/ Robert M. Infarinato
			Robert M. Infarinato
			Vice President, Chief Financial Officer (as Principal Financial Officer)

			Date: August 14, 2024

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

SECURITIES EXCHANGE ACT OF 1934 RULES 13a-14(a) AND 15d-14(a)

AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert J. Bitterman, certify that:

	1.	I have reviewed this Quarterly Report on Form 10-Q of Phio Pharmaceuticals Corp.;

	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

	4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: August 14, 2024


/s/ Robert J. Bitterman
Robert J. Bitterman
President and Chief Executive Officer
(as Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

SECURITIES EXCHANGE ACT OF 1934 RULES 13a-14(a) AND 15d-14(a)

AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert M. Infarinato, certify that:

	1.	I have reviewed this Quarterly Report on Form 10-Q of Phio Pharmaceuticals Corp.;

	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

	4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: August 14, 2024


/s/ Robert M. Infarinato
Robert M. Infarinato
Vice President, Chief Financial Officer
(as Principal Financial Officer)

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Phio Pharmaceuticals Corp. (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned officer of the Company certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to their knowledge:

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	2.	The information contained in the Report fairly presents, in all material respects, the Company’s financial condition and result of operations.

Dated: August 14, 2024


/s/ Robert J. Bitterman
Robert J. Bitterman
President and Chief Executive Officer
(as Principal Executive Officer)

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	2.	The information contained in the Report fairly presents, in all material respects, the Company’s financial condition and result of operations.

Dated: August 14, 2024


/s/ Robert M. Infarinato
Robert M. Infarinato
Vice President, Chief Financial Officer
(as Principal Financial Officer)

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-36304
Entity Registrant Name	Phio Pharmaceuticals Corp.
Entity Central Index Key	0001533040
Entity Tax Identification Number	45-3215903
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	11 Apex Drive
Entity Address, Address Line Two	Suite 300A, PMB 2006
Entity Address, City or Town	Marlborough
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01752
City Area Code	508
Local Phone Number	767-3861
Title of 12(b) Security	Common Stock, par value, $0.0001 per share
Trading Symbol	PHIO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		860,721

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 4,698	$ 8,490
Prepaid expenses and other current assets	594	832
Total current assets	5,292	9,322
Right of use asset	0	33
Property and equipment, net	1	6
Other assets	3	3
Total assets	5,296	9,364
Current liabilities:
Accounts payable	335	657
Accrued expenses	1,188	942
Lease liability	0	35
Total current liabilities	1,523	1,634
Commitments and contingencies (Note 2)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and December 31, 2023	0	0
Common stock, $0.0001 par value, 100,000,000 shares authorized; 510,188 and 416,368 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	0	0
Additional paid-in capital	146,979	146,936
Accumulated deficit	(143,206)	(139,206)
Total stockholders’ equity	3,773	7,730
Total liabilities and stockholders’ equity	$ 5,296	$ 9,364

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	510,188	416,368
Common stock, shares outstanding	510,188	416,368

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating expenses:
Research and development	$ 866	$ 1,383	$ 2,014	$ 3,517
General and administrative	1,048	1,164	2,109	2,632
Total operating expenses	1,914	2,547	4,123	6,149
Operating loss	(1,914)	(2,547)	(4,123)	(6,149)
Total other income (expense), net	68	(2)	123	(2)
Net loss	$ (1,846)	$ (2,549)	$ (4,000)	$ (6,151)
Net loss per common share:
Net loss per common share, Basic	$ (3.62)	$ (13.27)	$ (7.85)	$ (38.52)
Net loss per common share, Diluted	$ (3.62)	$ (13.27)	$ (7.85)	$ (38.52)
Weighted average number of common shares outstanding
Weighted average number of common shares outstanding, Basic	510,188	192,054	509,542	159,663
Weighted average number of common shares outstanding, Diluted	510,188	192,054	509,542	159,663

CONDENSED CONSOLIDATED STATEMENTS OF PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Preferred Stock Series D [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2022	$ 2		$ 139,218	$ (128,380)	$ 10,838
Balance at beginning, shares at Dec. 31, 2022	1	126,558
Cash-in-lieu of fractional shares for reverse stock split			(11)		(11)
Cash-in-lieu of fractional shares for reverse stock split, shares		(190)
Redemption of preferred stock	$ (2)
Redemption of preferred stock, shares	(1)
Issuance of common stock upon vesting of restricted stock units
Issuance of common stock upon vesting of restricted stock units, shares		2,009
Shares withheld for payroll taxes			(25)		(25)
Shares withheld for payroll taxes, shares		(535)
Stock-based compensation expense			111		111
Net loss				(3,602)	(3,602)
Ending balance, value at Mar. 31, 2023			139,293	(131,982)	7,311
Balance at ending, shares at Mar. 31, 2023	0	127,842
Beginning balance, value at Dec. 31, 2022	$ 2		139,218	(128,380)	10,838
Balance at beginning, shares at Dec. 31, 2022	1	126,558
Net loss					(6,151)
Ending balance, value at Jun. 30, 2023			144,435	(134,531)	9,904
Balance at ending, shares at Jun. 30, 2023	0	220,578
Beginning balance, value at Mar. 31, 2023			139,293	(131,982)	7,311
Balance at beginning, shares at Mar. 31, 2023	0	127,842
Issuance of common stock and warrants, net of offering costs			5,048		5,048
Issuance of common stock and warrants, net of offering costs, shares		73,292
Issuance of common stock upon exercise of warrants
Issuance of common stock upon exercise of warrants, shares		19,444
Stock-based compensation expense			94		94
Net loss				(2,549)	(2,549)
Ending balance, value at Jun. 30, 2023			144,435	(134,531)	9,904
Balance at ending, shares at Jun. 30, 2023	0	220,578
Beginning balance, value at Dec. 31, 2023			146,936	(139,206)	7,730
Balance at beginning, shares at Dec. 31, 2023	0	416,368
Issuance of common stock upon exercise of warrants
Issuance of common stock upon exercise of warrants, shares		91,820
Issuance of common stock upon vesting of restricted stock units
Issuance of common stock upon vesting of restricted stock units, shares		2,689
Shares withheld for payroll taxes			(4)		(4)
Shares withheld for payroll taxes, shares		(689)
Stock-based compensation expense			32		32
Net loss				(2,154)	(2,154)
Ending balance, value at Mar. 31, 2024			146,964	(141,360)	5,604
Balance at ending, shares at Mar. 31, 2024	0	510,188
Beginning balance, value at Dec. 31, 2023			146,936	(139,206)	7,730
Balance at beginning, shares at Dec. 31, 2023	0	416,368
Net loss					(4,000)
Ending balance, value at Jun. 30, 2024			146,979	(143,206)	3,773
Balance at ending, shares at Jun. 30, 2024	0	510,188
Beginning balance, value at Mar. 31, 2024			146,964	(141,360)	5,604
Balance at beginning, shares at Mar. 31, 2024	0	510,188
Stock-based compensation expense			15		15
Net loss				(1,846)	(1,846)
Ending balance, value at Jun. 30, 2024			$ 146,979	$ (143,206)	$ 3,773
Balance at ending, shares at Jun. 30, 2024	0	510,188

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss	$ (4,000)	$ (6,151)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2	31
Amortization of right of use asset	33	63
Loss on disposal of property and equipment	3	0
Stock-based compensation	47	205
Changes in operating assets and liabilities:
Prepaid expenses and other assets	238	(45)
Accounts payable	(322)	(138)
Accrued expenses	246	622
Lease liability	(35)	(66)
Net cash used in operating activities	(3,788)	(5,479)
Cash flows from investing activities:
Cash paid for purchase of property and equipment	0	(5)
Net cash used in investing activities	0	(5)
Cash flows from financing activities:
Net proceeds from the issuance of common stock and warrants		5,048
Cash in lieu of fractional shares for reverse stock split	0	(11)
Redemption of Series D preferred stock	0	(2)
Payment of taxes on net share settlements of restricted stock units	(4)	(25)
Net cash (used in) provided by financing activities	(4)	5,010
Net decrease in cash, cash equivalents and restricted cash	(3,792)	(474)
Cash, cash equivalents and restricted cash at the beginning of period	8,490	11,831
Cash, cash equivalents and restricted cash at the end of period	$ 4,698	$ 11,357

Reconciliation of Cash and Restricted Cash - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 4,698	$ 11,307
Restricted cash	0	50
Cash, cash equivalents and restricted cash	$ 4,698	$ 11,357

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (1,846)	$ (2,154)	$ (2,549)	$ (3,602)	$ (4,000)	$ (6,151)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization and Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Organization and Significant Accounting Policies

1. Organization and Significant Accounting Policies

Nature of Operations

Basis of Presentation

Principles of Consolidation

Segments

The Company operates as one operating segment and all assets are located in the United States.

Use of Estimates

Liquidity

Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents include unrestricted cash accounts, money market investments and highly liquid investment instruments with original maturity of three months or less at the date of purchase.

Other than as set forth above, there have been no material changes to the significant accounting policies disclosed in the Company’s 2023 Form 10-K.

Recent Accounting Pronouncements

Collaboration Agreement

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Collaboration Agreement

2. Collaboration Agreement

AgonOx, Inc. (“AgonOx”)

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

3. Fair Value of Financial Instruments

Level 1 – quoted prices in active markets for identical assets or liabilities.

Level 2 – other significant observable inputs for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.


Description	June 30, 2024		Quoted Prices In Active Markets (Level 1)		Other Significant Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	4,689	$	4,689	$	–	$	–
Total	$	4,689	$	4,689	$	–	$	–

The carrying amounts of cash, accounts payable and accrued expenses of the Company approximate their fair values due to their short-term nature.

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

4. Leases

The lease for the Company’s former corporate headquarters represented all of the Company’s capitalized lease obligations.


	June 30, 2024		December 31, 2023
Assets
Right of use asset	$	–	$	33
Liabilities
Lease liability	$	–	$	35
Lease Term and Discount Rate
Weighted average remaining lease term		–		0.25
Weighted average discount rate		–		4.70%

Stockholders’ Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders’ Equity

5. Stockholders’ Equity

Financings

Warrants

The following table summarizes the Company’s outstanding warrants, all of which are classified as equity instruments, at June 30, 2024:

Schedule of outstanding warrants
	Number of Shares			Weighted- Average Exercise Price Per Share
Outstanding at December 31, 2023		703,530		$	35.99
Issued		–			–
Exercised		(91,820	)		11.97
Expired		–			–
Outstanding at June 30, 2024		611,710		$	39.59

Stock-based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

6. Stock-based Compensation

Restricted Stock Units

The following table summarizes the activity of the Company’s RSUs for the six months ended June 30, 2024:

Summary of RSUs activity
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Unvested units at December 31, 2023		5,529		$	74.88
Granted		–			–
Vested		(2,692	)		79.23
Forfeited		(987	)		95.33
Unvested units at June 30, 2024		1,850		$	57.58

Stock Options

The Company did not grant any stock options during the three or six months ended June 30, 2024 and 2023.

The following table summarizes the activity of the Company’s stock options for the six months ended June 30, 2024:

Summary of stock options activity
	Number of Shares			Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value
Balance at December 31, 2023		1,146		$	10,120.69
Granted		–			–
Exercised		–			–
Forfeited		–			–
Expired		(13	)		598,313.35
Balance at June 30, 2024		1,133		$	3,371.79	$	–
Exercisable at June 30, 2024		1,133		$	3,371.79	$	–

Compensation Expense Related to Equity Awards

The following table sets forth total stock-based compensation expense for the three and six months ended June 30, 2024 and 2023, in thousands:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024			2023
Research and development	$	–	$	49	$	(11	)	$	112
General and administrative		15		45		58			93
Total stock-based compensation	$	15	$	94	$	47		$	205

Net Loss per Common Share

6 Months Ended

Jun. 30, 2024

Net loss per common share:

Net Loss per Common Share

7. Net Loss per Common Share

The following table sets forth the potential common shares excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive:

Schedule of anti dilutive shares
	June 30,
	2024		2023
Stock options		1,133		16
Unvested RSUs		1,850		8,083
Warrants		611,710		357,481
Total		614,693		365,580

Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

8. Subsequent Events

Organization and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Nature of Operations	*Nature of Operations* Phio Pharmaceuticals Corp. (“Phio” or the “Company”) is a clinical stage biotechnology company whose proprietary INTASYL® small interfering RNA gene silencing technology is designed to make immune cells more effective in killing tumor cells. The Company is developing therapeutics that are designed to leverage INTASYL to precisely target specific proteins that reduce the body’s ability to fight cancer, without the need for specialized formulations or drug delivery systems. Phio was incorporated in the state of Delaware in 2011 as RXi Pharmaceuticals Corporation. On November 19, 2018, the Company changed its name to Phio Pharmaceuticals Corp., to reflect its transition from a platform company to one that is fully committed to developing groundbreaking immuno-oncology therapeutics. Effective July 5, 2024, the Company completed a 1-for-9 reverse stock split of the Company’s outstanding common stock, including reclassifying an amount equal to the reduction in par value to additional paid-in capital. The reverse stock split did not reduce the number of authorized shares of the Company’s common or preferred stock. All share and per share amounts have been adjusted to give effect to the reverse stock split.
Basis of Presentation	*Basis of Presentation* The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures that are included in the Company’s annual consolidated financial statements, but that are not required for interim reporting purposes, have been condensed or omitted. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (the “2023 Form 10-K”). Interim results are not necessarily indicative of results for a full year.
Principles of Consolidation	*Principles of Consolidation* The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MirImmune, LLC. All material intercompany accounts have been eliminated in consolidation.
Segments	*Segments* The Company operates as one operating segment and all assets are located in the United States.
Use of Estimates	*Use of Estimates* The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas subject to significant estimates and judgement include, among others, those related to the fair value of equity awards, accruals for research and development expenses, useful lives of property and equipment, and the valuation allowance on the Company’s deferred tax assets. On an ongoing basis the Company evaluates its estimates and bases its estimates on historical experience and other relevant assumptions that the Company believes are reasonable under the circumstances. Actual results could differ materially from these estimates.
Liquidity	*Liquidity* The Company has reported recurring losses from operations since its inception and expects to continue to have negative cash flows from operations for the foreseeable future. Historically, the Company’s primary source of funding has been from sales of its securities. The Company’s ability to continue to fund its operations is dependent on obtaining funding from third parties, such as proceeds from the issuance of debt, sale of equity, or strategic opportunities, in order to maintain its operations. This is dependent on a number of factors, including the market demand or liquidity of the Company’s common stock. There is no guarantee that debt, additional equity or other funding will be available to the Company on acceptable terms, or at all. If the Company fails to obtain additional funding when needed, the Company would be forced to scale back or terminate its operations or seek to merge with or to be acquired by another company. The Company has limited cash resources, has reported recurring losses from operations since inception, has negative operating cash flows and has not yet received product revenues. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern, and the Company’s current cash resources may not provide sufficient capital to fund operations for at least the next 12 months from the date of the release of these condensed consolidated financial statements. The continuation of the Company as a going concern depends upon the Company’s ability to raise additional capital through an equity offering, debt offering and/or strategic opportunity to fund its operations. There can be no assurance that the Company will be successful in accomplishing these plans in order to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
Summary of Significant Accounting Policies	*Summary of Significant Accounting Policies* Cash and Cash Equivalents Cash and cash equivalents include unrestricted cash accounts, money market investments and highly liquid investment instruments with original maturity of three months or less at the date of purchase. Other than as set forth above, there have been no material changes to the significant accounting policies disclosed in the Company’s 2023 Form 10-K.
Recent Accounting Pronouncements	*Recent Accounting Pronouncements* In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280) – Improvements to Reporting Segment Disclosures” (“ASU 2023-07”), which requires disclosure of incremental segment information on an annual and interim basis. In addition, ASU 2023-07 clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The enhanced disclosures are required to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and disclosures, but does not expect that it will have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of specific categories in the rate reconciliation table along with additional information for reconciling items that meet a quantitative threshold, disclosure of disaggregated income taxes paid and modifies other income tax-related disclosures. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024 and allows for adoption on a prospective basis, with a retrospective option. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09, but does not expect that it will have a material impact on its consolidated financial statements.

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of financial instruments at fair value


Description	June 30, 2024		Quoted Prices In Active Markets (Level 1)		Other Significant Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	4,689	$	4,689	$	–	$	–
Total	$	4,689	$	4,689	$	–	$	–

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of lease amounts recorded in balance sheet


	June 30, 2024		December 31, 2023
Assets
Right of use asset	$	–	$	33
Liabilities
Lease liability	$	–	$	35
Lease Term and Discount Rate
Weighted average remaining lease term		–		0.25
Weighted average discount rate		–		4.70%

Stockholders’ Equity (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of outstanding warrants

Schedule of outstanding warrants
	Number of Shares			Weighted- Average Exercise Price Per Share
Outstanding at December 31, 2023		703,530		$	35.99
Issued		–			–
Exercised		(91,820	)		11.97
Expired		–			–
Outstanding at June 30, 2024		611,710		$	39.59

Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of RSUs activity

Summary of RSUs activity
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Unvested units at December 31, 2023		5,529		$	74.88
Granted		–			–
Vested		(2,692	)		79.23
Forfeited		(987	)		95.33
Unvested units at June 30, 2024		1,850		$	57.58

Summary of stock options activity

Summary of stock options activity
	Number of Shares			Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value
Balance at December 31, 2023		1,146		$	10,120.69
Granted		–			–
Exercised		–			–
Forfeited		–			–
Expired		(13	)		598,313.35
Balance at June 30, 2024		1,133		$	3,371.79	$	–
Exercisable at June 30, 2024		1,133		$	3,371.79	$	–

Schedule of stock-based compensation expense


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024			2023
Research and development	$	–	$	49	$	(11	)	$	112
General and administrative		15		45		58			93
Total stock-based compensation	$	15	$	94	$	47		$	205

Net Loss per Common Share (Tables)

6 Months Ended

Jun. 30, 2024

Net loss per common share:

Schedule of anti dilutive shares

Schedule of anti dilutive shares
	June 30,
	2024		2023
Stock options		1,133		16
Unvested RSUs		1,850		8,083
Warrants		611,710		357,481
Total		614,693		365,580

Organization and Significant Accounting Policies (Details Narrative)	Jul. 05, 2024
Subsequent Event [Member]
Subsequent Event [Line Items]
Reverse stock split	1-for-9 reverse stock split

Collaboration Agreement (Details Narrative) - Clinical Co Development Agreement [Member] - Agon Ox [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Contractual obligation	$ 4,000,000		$ 4,000,000
Expense from contractual obligations	$ 56,000	$ 181,000	$ 106,000	$ 300,000

Fair Value of Financial Instruments - (Details - Financial instruments at fair value) $ in Thousands	Jun. 30, 2024 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	$ 4,689
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	4,689
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	0
Cash and Cash Equivalents [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	4,689
Cash and Cash Equivalents [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	4,689
Cash and Cash Equivalents [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	0
Cash and Cash Equivalents [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	$ 0

Leases (Details - Balance sheet lease items) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets
Right of use asset	$ 0	$ 33
Liabilities
Lease liability	$ 0	$ 35
Lease Term and Discount Rate
Weighted average remaining lease term		3 months
Weighted average discount rate	0.00%	4.70%

Leases (Details Narrative)		3 Months Ended		6 Months Ended
Leases (Details Narrative)	Mar. 01, 2024 ft²	Jun. 30, 2024 USD ($) ft²	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) ft²	Jun. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease costs		$ 0	$ 33,000	$ 33,000	$ 66,000
Operating lease payments		$ 0	$ 35,000	$ 35,000	$ 69,000
Property Subject to Operating Lease [Member]
Lessee, Lease, Description [Line Items]
Operating lease footage \| ft²	321	7,581		7,581
Lease expiration date	Aug. 31, 2024			Mar. 31, 2024
Total base rent				$ 15,000
Property Subject to Operating Lease [Member] \| Laboratory Facility [Member]
Lessee, Lease, Description [Line Items]
Operating lease expense		$ 8,180		$ 10,780

Stockholders' Equity (Details - Warrants outstanding) - Warrant [Member]	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Class of Stock [Line Items]
Warrants outstanding, Beginning balance \| shares	703,530
Warrants outstanding weighted average exercise price per share, Beginning balance \| $ / shares	$ 35.99
Warrants issued, shares \| shares	0
Warrants issued weighted average exercise price per share \| $ / shares	$ 0
Warrants exercised, shares \| shares	(91,820)
Warrants exercised weighted average exercise price per share \| $ / shares	$ 11.97
Warrants expired, shares \| shares	0
Warrants expired weighted average exercise price per share \| $ / shares	$ 0
Warrants outstanding, Ending balance \| shares	611,710
Warrants outstanding weighted average exercise price per share, Ending balance \| $ / shares	$ 39.59

Stockholders’ Equity (Details Narrative) - USD ($)				3 Months Ended		6 Months Ended	12 Months Ended
Stockholders’ Equity (Details Narrative) - USD ($)	May 16, 2024	Jun. 02, 2023	Apr. 20, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2023
Warrant Exercises [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities				0	0
June 2023 Prefunded Warrants [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities						19,444
Abeyance Shares [Member]
Class of Stock [Line Items]
Shares of common stock held in abeyance							91,820
May 2024 Financing [Member]
Class of Stock [Line Items]
Common stock shares	95,833
Purchase price	$ 6.48
Gross proceeds from common stock	$ 621,000
April 2023 Financing [Member]
Class of Stock [Line Items]
Purchase price			$ 50.85
Number of shares issued			39,331
Proceeds from equity			$ 1,538,000
April 2023 Financing [Member] \| Warrant Amendment Agreements [Member] \| Previously Issued Warrants [Member]
Class of Stock [Line Items]
Exercise price			$ 48.60
Amended warrants			21,291
Proceeds from amendment of warrants			$ 23,952
Increase in fair value of warrants			$ 293,000
April 2023 Financing [Member] \| Series A Warrants [Member]
Class of Stock [Line Items]
Warrant new shares issued			39,331
Exercise price			$ 48.60
April 2023 Financing [Member] \| Series B Warrants [Member]
Class of Stock [Line Items]
Warrant new shares issued			39,331
Exercise price			$ 48.60
April 2023 Financing [Member] \| Placement Agent Warrants [Member]
Class of Stock [Line Items]
Warrant new shares issued			2,950
Exercise price			$ 63.56
June 2023 Financing [Member]
Class of Stock [Line Items]
Proceeds from equity		$ 3,510,000
June 2023 Financing [Member] \| Series A Warrants [Member]
Class of Stock [Line Items]
Warrant new shares issued		103,842
Exercise price		$ 36.27
June 2023 Financing [Member] \| Series B Warrants [Member]
Class of Stock [Line Items]
Warrant new shares issued		103,842
Exercise price		$ 36.27
June 2023 Financing [Member] \| Placement Agent Warrants [Member]
Class of Stock [Line Items]
Warrant new shares issued		7,788
Exercise price		$ 48.15
June 2023 Financing [Member] \| Registered Shares [Member]
Class of Stock [Line Items]
Number of shares issued		25,961
June 2023 Financing [Member] \| Unregistered Shares [Member]
Class of Stock [Line Items]
Purchase price		$ 38.52
Number of shares issued		8,000
June 2023 Financing [Member] \| Unregistered Pre Funded Warrants [Member]
Class of Stock [Line Items]
Purchase price		$ 38.511
Warrant new shares issued		69,881
Exercise price		$ 0.009
December 2023 Financing [Member] \| December 2023 Inducement Letter Agreement [Member]
Class of Stock [Line Items]
Amended warrants							236,695

Stock-based Compensation (Details - RSU activity) - Restricted Stock Units (RSUs) [Member] - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of unvested restricted stock units, Beginning balance			5,529
Weighted- average grant date fair value per share of unvested restricted stock units, Beginning balance			$ 74.88
Number of restricted stock units, Granted			0
Weighted- average grant date fair value per share of restricted stock units, Granted	$ 0	$ 0	$ 0
Number of restricted stock units, Vested			(2,692)
Weighted- average grand date fair value per share of restricted stock units, Vested			$ 79.23
Number of restricted stock units, Forfeited			(987)
Weighted- average grant date fair value per share of restricted stock units, Forfeited			$ 95.33
Number of unvested restricted stock units, Ending balance	1,850		1,850
Weighted- average grant date fair value per share of unvested restricted stock units, Ending balance	$ 57.58		$ 57.58

Stock-based Compensation (Details - Option activity) - Share-Based Payment Arrangement, Option [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options outstanding, beginning balance \| shares	1,146
Options outstanding, price per share, beginning balance \| $ / shares	$ 10,120.69
Options granted \| shares	0
Options granted, price per share \| $ / shares	$ 0
Options exercised \| shares	0
Options exercised, price per share \| $ / shares	$ 0
Options forfeited \| shares	0
Options forfeited, price per share \| $ / shares	$ 0
Options expired \| shares	(13)
Options expired, price per share \| $ / shares	$ 598,313.35
Options outstanding, ending balance \| shares	1,133
Options outstanding, price per share, ending balance \| $ / shares	$ 3,371.79
Aggregate intrinsic value, outstanding \| $	$ 0
Options exercisable \| shares	1,133
Options exercisable, price per share \| $ / shares	$ 3,371.79
Aggregate intrinsic value, exercisable \| $	$ 0

Stock-based Compensation (Details - Share-based compensation) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 15	$ 94	$ 47	$ 205
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	0	49	(11)	112
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 15	$ 45	$ 58	$ 93

Stock-based Compensation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Stock-based Compensation (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation expense	$ 15,000	$ 94,000	$ 47,000	$ 205,000
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
RSU's granted, shares	$ 0	$ 0	$ 0
Weighted-average price per share				$ 47.16
Share-based compensation expense	$ 15,000	$ 94,000	$ 41,000	$ 205,000
Fair value of awards vested			$ 17,000	95,000
Restricted Stock Units (RSUs) [Member] \| Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period			3 years
Restricted Stock Units (RSUs) [Member] \| Non Employee Members [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period			1 year
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation expense	$ 0	$ 0	$ 6,000	$ 0
Share-Based Payment Arrangement, Option [Member] \| Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period			4 years
Share-Based Payment Arrangement, Option [Member] \| Non Employee Members [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period			1 year

Net Loss per Common Share (Details - Antidilutive shares) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	614,693	365,580
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	1,133	16
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	1,850	8,083
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	611,710	357,481

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended
Subsequent Events (Details Narrative) - USD ($)	Jul. 31, 2024	Dec. 31, 2023	Feb. 28, 2020
Warrants Issued February 2020 [Member]
Subsequent Event [Line Items]
Exercise price			$ 324.00
Warrants Issued December 2023 [Member]
Subsequent Event [Line Items]
Exercise price		$ 9.72
Subsequent Event [Member] \| July 2024 Financing [Member]
Subsequent Event [Line Items]
Amended warrants	545,286
Exercise price	$ 5.45
Purchase price	$ 0.125
Proceeds from sale of equity	$ 2,600,000
Subsequent Event [Member] \| July 2024 Financing [Member] \| Series C Warrants [Member]
Subsequent Event [Line Items]
Exercise price	$ 5.45
Warrant new shares issued	583,098
Subsequent Event [Member] \| July 2024 Financing [Member] \| Series D Warrants [Member]
Subsequent Event [Line Items]
Exercise price	$ 5.45
Warrant new shares issued	507,474
Subsequent Event [Member] \| July 2024 Financing [Member] \| Placement Agent Warrants [Member]
Subsequent Event [Line Items]
Exercise price	$ 6.8125
Warrant new shares issued	40,896
Subsequent Event [Member] \| July 2024 Financing [Member] \| Abeyance Shares [Member]
Subsequent Event [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	328,758
Abeyance shares released	201,758

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