Decoy Therapeutics Reports $2.2 Million Net Loss in Q1 2026, Increases R&D Spending

Decoy Therapeutics Inc., formerly known as Salarius Pharmaceuticals, reported a net loss of $2.2 million for the first quarter of 2026, an increase from a net loss of $1.7 million during the same period in 2025. The company's total operating expenses rose to $2.3 million, compared to $1.7 million in the prior year, primarily driven by increased research and development costs associated with its newly integrated IMP3ACT platform following a merger with Legacy Decoy in November 2025. Research and development expenses surged to $749,813, up from $75,532 in the previous year, reflecting the company's commitment to advancing its pipeline of peptide conjugate therapeutics.

The company’s cash, cash equivalents, and restricted cash totaled $7.8 million as of March 31, 2026, a decrease from $10.7 million at the end of 2025. This decline was attributed to cash used in operating activities, which amounted to $2.9 million for the quarter, significantly higher than the $1.2 million used in the same quarter of 2025. The company noted that approximately $3 million of its cash position is restricted for use under a grant agreement with the Gates Foundation, limiting its availability for general operational expenses.

Decoy Therapeutics has undergone significant organizational changes, including a name change and a reverse stock split, aimed at enhancing its compliance with Nasdaq listing requirements. Following the merger, the company has focused on integrating its operations and expanding its product pipeline, which includes two small molecule drugs targeting gene dysregulation and a range of Designable Multi-Antivirals (D-MAV) candidates. The company plans to file an Investigational New Drug (IND) application with the FDA or its European equivalent in the first half of 2027.

As of March 31, 2026, Decoy Therapeutics had 531,968 shares of common stock outstanding, following the reverse stock splits executed in August 2025 and March 2026. The company has not generated any revenue from product sales to date and continues to rely on external funding sources, including grants and potential equity offerings, to support its operations. The management expressed concerns regarding the company's ability to continue as a going concern, emphasizing the need for additional capital to fund ongoing development efforts.

Looking ahead, Decoy Therapeutics aims to leverage its proprietary IMP3ACT platform to accelerate the development of its therapeutic candidates. The company is actively seeking strategic partnerships and collaborations to enhance its financial position and expand its market presence. However, management cautioned that the ability to raise additional funds remains uncertain, and failure to secure necessary financing could adversely impact the company's operations and development plans.