Phio Pharmaceuticals Reports Q2 2025 Financial Results with Increased Net Loss and Rising Assets

Phio Pharmaceuticals Corp. reported its financial results for the second quarter of 2025, revealing a net loss of $2.166 million, compared to a net loss of $1.846 million for the same period in 2024. The company's operating expenses increased to $2.309 million from $1.914 million year-over-year, primarily driven by higher research and development costs, which rose by 24% to $1.074 million. General and administrative expenses also saw an increase of 18%, totaling $1.235 million. For the first half of 2025, the net loss was $3.935 million, slightly improved from $4.000 million in the prior year.

The company experienced significant changes in its financial position, with total assets rising to $11.301 million as of June 30, 2025, up from $5.738 million at the end of 2024. This increase was largely attributed to a substantial rise in cash and cash equivalents, which reached $10.775 million, compared to $5.382 million at the end of the previous fiscal year. The increase in cash was primarily due to financing activities, including the issuance of common stock and warrants, which generated approximately $9.213 million in net cash for the first half of 2025.

Operationally, Phio Pharmaceuticals has been focusing on its lead product candidate, PH-762, which is currently undergoing a Phase 1b clinical trial for the treatment of various skin cancers. The trial has shown promising results, with a Safety Monitoring Committee recommending dose escalations based on positive patient responses. The company has also streamlined its operations, transitioning to a remote business model and reducing its workforce by over 50% to better allocate resources towards clinical development.

In terms of strategic developments, Phio terminated its Clinical Co-Development Agreement with AgonOx in May 2024, which allowed the company to cease financial obligations related to the collaboration. This decision was part of a broader cost rationalization strategy aimed at focusing on the development of its own product candidates. The company is currently assessing the impact of recent legislative changes, including the One Big Beautiful Bill Act, on its operations and financial statements.

Looking ahead, Phio Pharmaceuticals anticipates continued operating losses as it advances its clinical trials and seeks additional funding to support its operations. The company has indicated that its current cash resources are expected to sustain operations into the second quarter of 2026, but it remains dependent on raising additional capital through equity or debt offerings to maintain its business continuity.