# EDGAR Filing Document

**Accession Number:** 0001533040
**File Stem:** 0001437749-26-015604
**Filing Date:** 2026-5
**Character Count:** 96552
**Document Hash:** f4b5c7d43d8c7aec94524e4949008ddf
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-015604.hdr.sgml**: 20260507

**ACCESSION NUMBER**: 0001437749-26-015604

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 50

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260507

**DATE AS OF CHANGE**: 20260507

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Phio Pharmaceuticals Corp.
- **CENTRAL INDEX KEY:** 0001533040
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 453215903
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36304
- **FILM NUMBER:** 26953911

**BUSINESS ADDRESS:**
- **STREET 1:** 411 SWEDELAND ROAD
- **STREET 2:** SUITE 23-1080
- **CITY:** KING OF PRUSSIA
- **STATE:** PA
- **ZIP:** 19406
- **BUSINESS PHONE:** (508) 767-3861

**MAIL ADDRESS:**
- **STREET 1:** 411 SWEDELAND ROAD
- **STREET 2:** SUITE 23-1080
- **CITY:** KING OF PRUSSIA
- **STATE:** PA
- **ZIP:** 19406

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RXi Pharmaceuticals Corp
- **DATE OF NAME CHANGE:** 20111019

?xml version='1.0' encoding='ASCII'? phio20260331_10q.htm

[**Table of Contents**](#toc)

**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 March 31, 2026**

**OR**

☐ **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.)** |

---

**411 Swedeland Road, Suite 23-1080, King of Prussia, PA 19406**

**(Address of principal executive office) (Zip code)**

**Registrant**'**s telephone number, including area code: (610) 947-0251**

**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 May 5, 2026, Phio Pharmaceuticals Corp. had 11,617,250 shares of common stock, $0.0001 par value, outstanding.

------

[**Table of Contents**](#toc)

**PHIO PHARMACEUTICALS CORP.** 

**FORM 10-Q** — **QUARTER ENDED March 31, 2026**

**<u>INDEX</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Part No.** | **Item No.** | **Description** | **Page**<br> **No.** |
| I |  | [<u>FINANCIAL INFORMATION</u>](#part1) | [3](#part1) |
|  | 1 | [<u>Financial Statements (Unaudited)</u>](#financialstmts) | [3](#financialstmts) |
|  |  | [<u>Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025</u>](#bs) | [3](#bs) |
|  |  | [<u>Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025</u>](#ops) | [4](#ops) |
|  |  | [<u>Condensed Consolidated Statements of Stockholders</u><u>'</u> <u>Equity for the Three Months Ended March 31, 2026 and 2025</u>](#equity) | [5](#equity) |
|  |  | [<u>Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025</u>](#cf) | [6](#cf) |
|  |  | [<u>Notes to Condensed Consolidated Financial Statements</u>](#notes) | [7](#notes) |
|  | 2 | [<u>Management</u><u>'</u><u>s Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | [16](#mda) |
|  | 3 | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#quant) | [22](#quant) |
|  | 4 | [<u>Controls and Procedures</u>](#controls) | [22](#controls) |
| II |  | [<u>OTHER INFORMATION</u>](#part2) | [23](#part2) |
|  | 1 | [<u>Legal Proceedings</u>](#legal) | [23](#legal) |
|  | 1A | [<u>Risk Factors</u>](#risk) | [23](#risk) |
|  | 2 | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#unregistered) | [24](#unregistered) |
|  | 3 | [<u>Defaults Upon Senior Securities</u>](#defaults) | [24](#defaults) |
|  | 4 | [<u>Mine Safety Disclosures</u>](#mine) | [24](#mine) |
|  | 5 | [<u>Other Information</u>](#otherinfo) | [24](#otherinfo) |
|  | 6 | [<u>Exhibits</u>](#exhibits) | [25](#exhibits) |
| [<u>Signatures</u>](#signatures) | [<u>Signatures</u>](#signatures) | [<u>Signatures</u>](#signatures) | [28](#signatures) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

------

[**Table of Contents**](#toc)

**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)** |  |
|  | ***March 31,*** | ***December 31,*** |
| **ASSETS** | ***2026*** | ***2025*** |
| Current assets: |  |  |
| Cash and cash equivalents | $17031 | $21031 |
| Prepaid expenses and other current assets | 371 | 445 |
| Total current assets | 17402 | 21476 |
| Property and equipment, net | 10 | 11 |
| Total assets | $17412 | $21487 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $260 | $435 |
| Accrued expenses | 690 | 905 |
| Total liabilities | 950 | 1340 |
| Commitments and contingencies |  |  |
| Stockholders' equity: |  |  |
| Series D Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 0 issued and outstanding at each of March 31, 2026 and December 31, 2025 |  |  |
| Common stock, $0.0001 par value, 100,000,000 shares authorized; 11,617,250 and 11,617,250 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 1 | 1 |
| Additional paid-in capital | 175518 | 175200 |
| Accumulated deficit | (159057) | (155054) |
| Total stockholders' equity | $16462 | $20147 |
| Total liabilities and stockholders' equity | $17412 | $21487 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

------

[**Table of Contents**](#toc)

**PHIO PHARMACEUTICALS CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

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

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| Operating expenses: |  |  |
| Research and development | $2793 | $886 |
| General and administrative | 1374 | 986 |
| Total operating expenses | 4167 | 1872 |
| Operating loss | (4167) | (1872) |
| Interest income, net | 161 | 125 |
| Other income (expense), net | 3 | (22) |
| Net loss | $(4003) | $(1769) |
| Net loss per common share: |  |  |
| Basic and diluted | (0.34) | (0.41) |
| Weighted average number of common shares outstanding |  |  |
| Basic and diluted | 11617250 | 4307264 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

------

[**Table of Contents**](#toc)

**PHIO PHARMACEUTICALS CORP.** 

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS**' **EQUITY**

**(Amounts in thousands, except share data)** 

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | ***Common Stock*** | ***Common Stock*** | ***Additional*** |  |  |
|  |  |  | ***Paid in*** | ***Accumulated*** |  |
| **For the Three Months Ended March 31, 2026** | ***Shares*** | ***Amount*** | ***Capital*** | ***Deficit*** | ***Total*** |
| Balance at December 31, 2025 | 11617250 | $1 | $175200 | $(155054) | $20147 |
| Stock-based compensation expense | *-* |  | 318 |  | 318 |
| Net loss | *-* |  |  | (4003) | (4003) |
| Balance at March 31, 2026 | 11617250 | $1 | $175518 | $(159057) | $16462 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | ***Common Stock*** | ***Common Stock*** | ***Additional*** |  |  |
|  |  |  | ***Paid in*** | ***Accumulated*** |  |
| **For the Three Months Ended March 31, 2025** | ***Shares*** | ***Amount*** | ***Capital*** | ***Deficit*** | ***Total*** |
| Balance at December 31, 2024 | 1733717 | $- | $151079 | $(146356) | $4723 |
| Issuance of common stock upon exercise of warrants | 537432 |  | 2680 |  | 2680 |
| Issuance of common stock and warrants, net of offering costs | 2507005 |  | 6493 |  | 6493 |
| Stock-based compensation expense | *-* |  | 43 |  | 43 |
| Net loss | *-* |  |  | (1769) | (1769) |
| Balance at March 31, 2025 | 4778154 | $- | $160295 | $(148125) | $12170 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5

------

[**Table of Contents**](#toc)

**PHIO PHARMACEUTICALS CORP.** 

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Amounts in thousands)**

 **(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| Cash flows from operating activities: |  |  |
| Net loss | $(4003) | $(1769) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Depreciation and amortization | 1 |  |
| Net gain on disposal of property and equipment | (3) |  |
| Stock-based compensation | 318 | 43 |
| Changes in operating assets and liabilities: |  |  |
| Prepaid expenses and other assets | 74 | 196 |
| Accounts payable | (175) | 174 |
| Accrued expenses | (215) | 81 |
| **Net cash used in operating activities** | **(4003)** | **(1275)** |
| Cash flows from investing activities: |  |  |
| Asset sale proceeds | 3 |  |
| Cash paid for purchase of property and equipment |  | (2) |
| **Net cash provided by (used in) investing activities** | **3** | **(2)** |
| Cash flows from financing activities: |  |  |
| Net proceeds from the exercise of warrants |  | 6493 |
| Net proceeds from the issuance of common stock and warrants |  | 2680 |
| **Net cash provided by financing activities** | **-** | **9173** |
| Net increase (decrease) in cash, cash equivalents and restricted cash | (4000) | 7896 |
| Cash, cash equivalents and restricted cash at the beginning of period | 21031 | 5382 |
| Cash, cash equivalents and restricted cash at end of period | $**17031** | $**13278** |

---

See accompanying notes to consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6

------

[**Table of Contents**](#toc)

**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 biopharmaceutical company whose proprietary INTASYL® self-delivering small interfering RNAi(siRNA) 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. The Company is committed to discovering and developing innovative cancer treatments for patients by creating new pathways toward a cancer-free future.

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.

***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, the interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of results for the periods presented.

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, 2025*, as filed with the Securities and Exchange Commission (the "**SEC**") on *March 5, 2026 (*the "***2025* 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 judgment 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *7*

------

[**Table of Contents**](#toc)

***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 ("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.

Based on current cash flow projections, the Company believes it has sufficient cash and cash equivalents, including net proceeds from its *January 2025* Offerings, *July 2025* Financing, and *November 2025* Financing, (collectively, "the *2025* Financings"), to meet its current planned obligations for at least *12* months from the date these financial statements are issued. The Company has limited cash resources, has incurred recurring operating losses and negative cash flows from its operations since its inception and has *not* yet recognized any product revenues. These factors have previously raised doubt about the Company's ability to continue as a going concern. With the *2025* Financings, the Company was able to alleviate such doubt about its ability to continue as a going concern as of the date the *September 30, 2025* financial statements were issued, accordingly, *no* going-concern disclosures are required for the current period under ASC *205*-*40* as of the date of the filing of this Quarterly Report on Form *10*-Q.

***Summary of Significant Accounting Policies***

The Company's significant accounting policies as of *March 31, 2026,* are consistent with those described in the Company's Annual Report on Form *10-K* for the year ended *December 31, 2025.* There have been *no* material changes during the current period.

***Recent Accounting Pronouncements***

In *November 2024,* the FASB issued ASU *2024*-*03,* "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic *220*-*40*): Disaggregation of Income Statement Expenses," which requires additional disclosure about the specific expense categories in the notes to financial statements at interim and annual reporting periods. The amendments in this ASU do *not* change or remove current expense disclosure requirements but affect where this information appears in the notes to financial statements. This ASU is effective for annual reporting periods beginning after *December 15, 2026,* and interim reporting periods beginning after *December 15, 2027,* with early adoption permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently evaluating the impact that ASU *2024*-*03* will have on its consolidated financial statements.

***Recent Tax Legislation***

On *July 4, 2025,* the One Big Beautiful Bill Act (the "**OBBBA**") was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions and allows immediate expensing of certain domestic research and experimental expenditures under new Section *174A* of the Internal Revenue Code. The Company has *not* had a material impact from the OBBBA to its consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *8*

------

[**Table of Contents**](#toc)

***2.* Accounts Payable and Accrued Liabilities**

Accounts payable and accrued liabilities are comprised of the following:

---

| | | |
|:---|:---|:---|
|  | ***March 31,*** | ***December 31,*** |
|  | ***2026*** | ***2025*** |
| Accounts payable trade | $260 | $435 |
| Research and development accruals | 413 | 477 |
| Professional fee accrual | 133 | 68 |
| Payroll accruals | 144 | 360 |
|  | $950 | $1340 |

---

***3.* 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. 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 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.

In *May 2024,* the Company terminated the Clinical Co-Development Agreement with AgonOx, effective immediately. 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. The Company is *no* longer required to provide financial support for the development costs incurred in the Clinical Co-Development Agreement and the Company is *no* longer entitled to future development milestones or royalty payments from AgonOx's licensing of its DP TIL technology.

The Company paid AgonOx all payment obligations that accrued prior to the termination of the Clinical Co-Development Agreement. Pursuant to the terms of the Clinical Co-Development Agreement, each of the Company and AgonOx were responsible for its own costs and expenses incurred in connection with the wind-down of the Phase *1* clinical trial. The Company made the remaining payment of $34,320, which primarily related to accrued obligations for patient fees and other miscellaneous costs as of the date of termination, to AgonOx on *March 21, 2025.* This settled all future obligations to AgonOx.

***4.* Leases**

The Company leases space for various corporate and research purposes and accounts for lease arrangements in accordance with the provisions of ASC *842,* Leases. The Company calculates the lease liability as the present value of the lease's cash flows using the interest rate implicit in the lease, if determinable. If the rate implicit in the lease is *not* determinable, the Company uses its incremental borrowing rate. The incremental borrowing rate is defined as the rate the Company would have to pay to borrow on a collateralized basis over the lease term. The Company has elected the accounting policy election available under ASC *842* to *not* record a lease liability for leases with a term of less than *one* year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *9*

------

[**Table of Contents**](#toc)

On *March 1, 2024,* the Company commenced an operating lease for a laboratory facility located at *17* Briden Street, Worcester, Massachusetts, which expired on *February 28, 2026.* The Company currently maintains shared office space at LifeSciences PA located at *411* Swedeland Road, King of Prussia, PA for access to full working space during normal business hours of operations for a monthly fee of $300. This arrangement is cancellable at any time.

Operating lease costs included in operating expense were approximately $900 and $8,400 for the *three* months ended *March 31, 2026* and *2025*, 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 *March 31, 2026* and *2025*.

***5.* Stockholders**' **Equity**

***Financings***

 *January 13, 2025* Concurrent Registered Direct Offering and Private Placement*

On *January 13, 2025,* the Company entered into a securities purchase agreement (the "***January 13, 2025* Securities Purchase Agreement**") with certain institutional and accredited investors in connection with a registered direct public offering (the "***January 13, 2025* Registered Direct Offering**") and concurrent private placement (the "***January 13, 2025* Private Placement**" and, together with the *January 13, 2025* Registered Direct Offering, the "***January 13, 2025* Offerings**"). The *January 13, 2025* Offerings closed on *January 14, 2025.* In addition, the Company issued warrants to the placement agent, H.C. Wainwright & Co, LLC ("**HCW**") to purchase a total of 79,775 shares of Common Stock at an exercise price of $3.75 per share. The net proceeds to the Company from the *January 13, 2025* Registered Direct Offerings and the *January 13, 2025* Private Placement were approximately $2.8 million, after deducting fees and estimated offering expenses.

Pursuant to the *January 13, 2025* Securities Purchase Agreement, the Company offered and sold in the *January 13, 2025* Registered Direct Offering 1,063,670 shares of Common Stock at a purchase price of $3.00 per share. In the *January 13, 2025* Private Placement, the Company also issued to certain institutional and accredited investors unregistered warrants to purchase up to 2,127,340 shares of Common Stock (the "**Series G Warrants**"). Under the terms of the *January 13, 2025* Securities Purchase Agreement, for each share of Common Stock issued in the *January 13, 2025* Registered Direct Offering, two accompanying Series G Warrants were issued to the purchaser thereof. Each Series G Warrant is exercisable for one share of Common Stock at an exercise price of $3.00 per share and will expire on *January 14, 2027.*

 *January 14, 2025* Concurrent Registered Direct Offering and Private Placement*

On *January 14, 2025,* the Company entered into a securities purchase agreement (the "***January 14, 2025* Securities Purchase Agreement**") with certain institutional and accredited investors in connection with a registered direct public offering (the "***January 14, 2025* Registered Direct Offering**") and concurrent private placement (the "***January 14, 2025* Private Placement**" and together with the *January 14, 2025* Registered Direct Offering, the "***January 14, 2025* Offerings**"). The *January 14, 2025* Offerings closed on *January 15, 2025.* In addition, the Company issued warrants to the placement agent, HCW, to purchase a total of 62,500 shares of Common Stock at an exercise price of $3.75 per share. The net proceeds to the Company from the *January 14, 2025* Registered Direct Offering and the *January 14, 2025* Private Placement were approximately $2.1 million, after deducting fees and estimated offering expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *10*

------

[**Table of Contents**](#toc)

Pursuant to the *January 14, 2025* Securities Purchase Agreement, the Company offered and sold in the *January 14, 2025* Registered Direct Offering 833,335 shares of Common Stock at a purchase price of $3.00 per share. In the *January 14, 2025* Private Placement, the Company also issued to such institutional and accredited investors unregistered warrants to purchase up to 1,666,670 shares of Common Stock (the "**Series H Warrants**"). Under the terms of the *January 14, 2025* Securities Purchase Agreement, for each share of Common Stock issued in the *January 14, 2025* Registered Direct Offering, two accompanying Series H Warrants were issued to the purchaser thereof. Each Series H Warrant is exercisable for one share of Common Stock at an exercise price of $3.00 per share and will expire on *January 15, 2027.*

 *January 16, 2025* Concurrent Registered Direct Offering and Private Placement*

On *January 16, 2025,* the Company entered into a securities purchase agreement (the "***January 16, 2025* Securities Purchase Agreement**") with certain institutional and accredited investors in connection with a registered direct public offering (the "***January 16, 2025* Registered Direct Offering**") and concurrent private placement (the "***January 16, 2025* Private Placement**" and, together with the *January 16, 2025* Registered Direct Offering, the "***January 16, 2025* Offerings**" and the *January 16, 2025* Offerings, together with the *January 13, 2025* Offerings and the *January 14, 2025* Offerings, the "***January 2025* Offerings**"). The *January 16, 2025* Offerings closed on *January 17, 2025.* In addition, the Company issued warrants to the placement agent, HCW, to purchase a total of 45,750 shares of Common Stock at an exercise price of $3.75 per share The net proceeds to the Company from the *January 16, 2025* Registered Direct Offering and the *January 16, 2025* Private Placement were approximately $1.5 million, after deducting fees and estimated offering expenses.

Pursuant to the *January 16, 2025* Securities Purchase Agreement, the Company offered and sold in the *January 16, 2025* Registered Direct Offering 610,000 shares of Common Stock at a purchase price of $3.00 per share. In the *January 16, 2025* Private Placement, the Company also issued to such institutional and accredited investors unregistered warrants to purchase up to 1,220,000 shares of Common Stock (the "**Series I Warrants**"). Under the terms of the *January 16, 2025* Securities Purchase Agreement, for each share of Common Stock issued in the *January 16, 2025* Registered Direct Offering, two accompanying Series I Warrants were issued to the purchaser thereof. Each Series I Warrant is exercisable for one share of Common Stock at an exercise price of $3.00 per share and will expire on *January 19, 2027.*

 *July 2025* Financing*

On *July 25, 2025,* the Company entered into inducement letter agreements (the "***July 2025* Inducement Letter Agreements**") with certain holders of certain of the Company's existing warrants to purchase an aggregate of 928,596 shares of Common Stock. Pursuant to the *July 2025* Inducement Letter Agreements, the existing warrants were originally issued in *December 2024* and *January 2025,* having exercise prices between $2.00 and $3.00 per share. Warrants to purchase 100,000 shares of Common Stock at the existing exercise price of $2.00 per share were exercised at their existing exercise price of $2.00 per share, and warrants to purchase 828,596 shares of Common Stock were exercised at a reduced exercise price of $2.485 per share.

Pursuant to the *July 2025* Inducement Letter Agreements, in consideration for the immediate exercise of such warrants for cash and the payment of an additional $0.125 per New *July 2025* Warrant (as defined below), or an aggregate of $232,149 for all New *July 2025* Warrants, the Company agreed to issue new unregistered five-year term Series J warrants (the "**Series J Warrants**") to purchase an aggregate of up to 318,596 shares of Common Stock at an exercise price of $2.485 and new unregistered 24-month term Series K warrants (the "**Series K Warrants**" and, together with the Series J Warrants, the "**New *July 2025* Warrants**") to purchase an aggregate of up to 1,538,596 shares of Common Stock at an exercise price of $2.485 (the "***July 2025* Financing**").

In addition, the Company issued warrants to the placement agent, HCW, to purchase up to 69,645 shares of Common Stock. 7,500 of the placement agent warrants issued have an exercise price of $2.8125 per share of Common Stock and a term of five years, 16,395 of the placement agent warrants issued have an exercise price of $3.4188 per share of Common Stock and a term of five years, and 45,750 of the placement agent warrants issued have an exercise price of $3.4188 per share of Common Stock and a term of twenty-four months. The net proceeds to the Company from the *July 2025* Financing were approximately $2.1 million, after deducting placement agent fees and offering expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *11*

------

[**Table of Contents**](#toc)

 *November 2025* Financing*

On *November 3, 2025,* the Company entered into inducement letter agreements (the "***November 2025* Inducement Letter Agreements**") with certain holders of the Company's existing warrants to purchase an aggregate of 5,663,182 shares of Common Stock. The existing warrants were originally issued in *July 2024, December 2024, January 2025* and *July 2025,* having exercise prices between $2.00 and $5.45 per share. Warrants to purchase 60,000 shares of Common Stock were exercised at their existing exercise price of $2.00 per share, warrants to purchase 948,596 shares of Common Stock were exercised at their existing exercise price of $2.485 per share and warrants to purchase 4,654,586 shares of Common Stock were exercised at a reduced exercise price of $2.05 per share.

Pursuant to the *November 2025* Inducement Letter Agreements, in consideration for the exercise of such warrants for cash and the payment of an additional $0.125 per Series A Warrant (as defined below), or an aggregate of $1.4 million for all Series A *2025* Warrants, the Company agreed to issue new unregistered twenty-four month term Series A Warrants (the "**Series A Warrants**") to purchase an aggregate of up to 11,326,364 shares of Common Stock at an exercise price of $2.05 (the "***November 2025* Financing**"). In addition, the Company issued warrants to the placement agent, HCW, to purchase up to 424,739 shares of Common Stock. 4,500 of the placement agent warrants issued have an exercise price of $2.8125 per share of Common Stock and a term of twenty-four months, 349,094 of the placement agent warrants issued have an exercise price of $2.875 per share of Common Stock and a term of twenty-four months, and 71,145 of the placement agent warrants issued have an exercise price of $3.4188 per share of Common Stock and a term of twenty-four months. The net proceeds to the Company from the *November 2025* Financing were approximately $12.1 million, 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 the FASB ASC Topic *815,* "*Derivatives and Hedging*" ("**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.

During the *three* months ended *March 31, 2026* and *2025*, there were 0 and 537,432 warrants exercised, respectively.

The following table summarizes the Company's outstanding warrants, all of which are classified as equity instruments, at *March 31, 2026* and *2025:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***2026*** | ***2026*** | ***2025*** | ***2025*** |
|  |  | ***Weighted-*** |  | ***Weighted-*** |
|  |  | ***Average*** |  | ***Average*** |
|  | ***Number*** | ***Exercise Price*** | ***Number*** | ***Exercise Price*** |
|  | ***of Shares*** | ***Per Share*** | ***of Shares*** | ***Per Share*** |
| Outstanding at January 1, | 13527968 | $2.94 | 1925867 | $12.66 |
| Issued |  |  | 5242342 | 3.06 |
| Exercised |  |  | (537432) | 5.45 |
| Expired | (141911) | 10.76 | (9659) | 457.92 |
| Outstanding at March 31, | 13386057 | $2.86 | 6621118 | $4.99 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *12*

------

[**Table of Contents**](#toc)

***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**"). RSUs are generally subject to the satisfaction of certain service requirements. RSUs granted by the Company to employees generally cliff vest one year after the grant date. Upon vesting, each outstanding RSU will be settled for *one* share of Common Stock. Employee RSU recipients *may* elect to net share settle upon vesting, in which case the Company pays the employee's withholding 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 is based upon the Company's closing stock price at the grant date and is expensed over the requisite service period.

The following table summarizes the activity of the Company's RSUs for the *three* months ended *March 31, 2026*:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted-*** |
|  |  | ***Average*** |
|  |  | ***Grant Date*** |
|  | ***Number*** | ***Fair Value*** |
|  | ***of Shares*** | ***Per Share*** |
| Unvested units at December 31, 2025 | 477700 | $2.32 |
| Granted | 353500 | 0.86 |
| Vested |  |  |
| Forfeited |  |  |
| Unvested units at March 31, 2026 | 831200 | $2.32 |

---

There were 353,500 RSUs granted during the *three* months ended *March 31, 2026* and no RSUs granted during the *three* months ended *March 31, 2025*.

Stock-based compensation expense related to RSUs was $318,000 and $43,000 for the *three* months ended *March 31, 2026* and *2025*, respectively.

No RSUs vested during the *three* months ended *March 31, 2026* and *2025,* respectively.

*Stock Options*

Stock options are available for issuance under the *2020* Plan. Stock options granted by the Company to participants generally vest annually over four years from the grant date and expire ten years from the date of the grant. All outstanding stock options continue to be accounted for in accordance with ASC *718.*

The Company did not grant any stock options during the *three* months ended *March 31, 2026* or *2025*. As of *March 31, 2026,* there were 1,115 stock options outstanding.

The Company did not have any stock-based compensation expense related to stock options for the *three* months ended *March 31, 2026* and *2025*.

*Compensation Expense Related to Equity Awards*

The following table sets forth total stock-based compensation expense for the *three* months ended *March 31, 2026* and *2025*, in thousands:

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| Research and development | $70 | $15 |
| General and administrative | 248 | 28 |
| Total stock-based compensation | $318 | $43 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *13*

------

[**Table of Contents**](#toc)

As of *March 31, 2026*, the total unrecognized compensation cost related to non-vested RSUs was approximately $754,000. This cost is expected to be recognized over a weighted-average period of 0.45 years.

***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 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:

---

| | | |
|:---|:---|:---|
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| Stock options | 1115 | 1126 |
| Unvested RSUs | 831200 | 71000 |
| Warrants | 13386057 | 6621118 |
| Total | 14218372 | 6693244 |

---

***8.* Segment Information** 

The Company has one reportable segment and operates as a clinical stage biopharmaceutical company. To date, the Company has yet to generate operating revenues and does *not* expect to generate any revenue in the foreseeable future. The Company's chief operating decision maker (CODM) is the President and Chief Executive Officer (CEO). The accounting policies of the single segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the single segment and decides how to allocate resources based on net loss as reported on the condensed consolidated statements of operations. The CODM uses net loss to monitor budget versus actual results and to evaluate overall cash burn of the business. All of the Company's operations occur within the United States.

The following table presents selected financial information with respect to the Company's single operating segment (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| Research and development |  |  |
| PH-762 | $2148 | $457 |
| PH-894 | 18 | 57 |
| Employee expense, lab supplies and overhead | 627 | 372 |
| Total research and development | 2793 | 886 |
| General and administrative | 1374 | 986 |
| Total operating expenses | $(4167) | $(1872) |
| Other income, net | 164 | 103 |
| Net loss | $(4003) | $(1769) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *14*

------

[**Table of Contents**](#toc)

***9.* Subsequent Events**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *At The Market Offering Agreement*

On *April 8, 2026,* the Company entered into an At the Market Agreement ("Sales Agreement") with HCW pursuant to which the Company *may* offer and sell shares of Common Stock, having an aggregate price of up to $6,360,000 from time to time through HCW, acting as sales agent (the "ATM Program").

The Company is *not* obligated to sell any shares under the ATM Program and *may* suspend or terminate the program at any time. Net proceeds from sales of shares under the ATM Program, after deducting sales commissions and other offering expenses, are intended to fund the development of PH-*762* in an expected Phase *2b/3* clinical trial for cutaneous squamous cell carcinoma, other development activities and for general working capital needs.

Subsequent to *March 31, 2026,* and through the date of issuance of these financial statements, the Company did *not* sell any shares of Common Stock under the ATM Program and did *not* receive any proceeds therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *15*

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **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 March 31, 2026 and results of operations for the three months ended March 31, 2026 and 2025 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, 2025, which was filed with the Securities and Exchange Commission (the* "***SEC***"*) on March 5, 2026 (the* "***2025 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. 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, but not limited to:*

● *we are dependent on the success of our INTASYL<sup>TM</sup> technology, and our product candidates based on this technology, which is unproven and may never lead to approved and marketable products;*

● *our product candidates are in an early stage of development and we may fail, experience significant delays, never advance in clinical development or not be successful in our efforts to identify or discover additional product candidates, which may materially and adversely impact our business;*

● *disruptions at the FDA, including due to a reduction in the FDA*'*s workforce and/or inadequate funding for the FDA, could prevent the FDA from performing normal functions on which our business relies, which could negatively impact our business;*

● *if we experience delays or difficulties in identifying and enrolling subjects in clinical trials, it may lead to delays in generating clinical data and the receipt of necessary regulatory approvals;*

● *interim and topline data may not accurately reflect or may materially differ from the complete results of a clinical trial;*

● *we rely upon third parties for the manufacture of the clinical supply for our product candidates;*

● *our business and operations would suffer in the event of computer system failures, cyberattacks or a deficiency in our cybersecurity;*

● *we are dependent on the patents we own and the technologies we license, and if we fail to maintain our patents or lose the right to license such technologies, our ability to develop new products would be harmed;*

● *we will require substantial additional funds to complete our research and development activities;*

● *future financing may be obtained through, and future development efforts may be paid for by, the issuance of debt or equity, which may have an adverse effect on our stockholders or may otherwise adversely affect our business;*

● *we may not be able to remain compliant with the continued listing requirements of The Nasdaq Capital Market; and*

● *the price of our Common Stock ("Common Stock") has been and may continue to be volatile.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16

------

[**Table of Contents**](#toc)

*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 Pharmaceuticals Corp. ("**Phio**," "**we**," "**our**" or the "**Company**") is a clinical stage biopharmaceutical company whose proprietary INTASYL® self-delivering small interfering RNAi (siRNA) 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. We are committed to discovering and developing innovative cancer treatments for patients by creating new pathways toward a cancer-free future.

The Company operates as a remote business under a streamlined cost structure and continues to focus its resources on advancing its clinical development programs.

**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 non-clinical 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 was 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 (NCT 06014086) was 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. The study was fully enrolled in November 2025 with a total of 22 patients, 20 with cutaneous squamous cell carcinoma, one with melanoma and one with Merkel cell carcinoma. The clinical phase of the trial is complete, and the final data is currently being analyzed.

While final study data is pending formal analysis, an FDA submission intended to propose and seek guidance for next steps in clinical study design for PH-762 is targeted for the second quarter of 2026. A total of 22 patients with cutaneous carcinomas completed treatment in the Phase 1b trial and underwent excision of the treated lesional site. Reported data supports an overall response rate of 65% for squamous cell carcinomas (cSCC). Among the 20 patients with cSCC, 13 patients were classified as pathologic responders, including 9 patients with complete response (100% clearance), 2 patients with major/near clear response (greater than 90% clearance), and 2 patients with partial response (greater than 50% clearance). A single patient with metastatic Merkel cell carcinoma had a partial response. Seven cSCC patients and one melanoma patient had responses of less than 50%, however, none of these patients experienced a progression of the disease.

In the trial, intratumoral injection of PH-762 was well tolerated in all enrolled patients and there were no dose-limiting toxicities or clinically relevant treatment-emergent adverse effects in any patients who received intratumoral PH-762. PH-762 has been evaluated in patients within five dose-escalating cohorts, increasing drug concentration 20-fold from the first to the final cohort. Safety data through an extended follow-up period is expected to be reported in the second quarter of 2026.

In July 2025, we entered into a comprehensive drug substance development services agreement with a U.S. manufacturing company pursuant to which the manufacturer will provide analytical and process development activity, and cGMP manufacture of drug substance to manufacture clinical supplies for our lead development compound, PH-762.

In December 2025, we entered into a development services agreement with a U.S. laboratory to conduct a nonclinical toxicology study for PH-762, which is required by the FDA prior to commencing a human clinical trial for registration purposes.

In March 2026, we entered into a cGMP drug product manufacturing services agreement with a U.S. manufacturer for clinical supplies and to satisfy strategic objectives associated with advancement of PH-762.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17

------

[**Table of Contents**](#toc)

**PH-894**

PH-894 is an INTASYL compound that is designed to silence BRD4, a protein that controls gene expression in both T cells and tumor cells, thereby affecting the immune system as well as the tumor. Intracellular and/or commonly considered "undruggable" targets, such as BRD4, represent a challenge for small molecule and antibody therapies. Therefore, what sets this compound apart is its dual mechanism: PH-894 suppression of BRD4 in T cells results in T cell activation, and suppression of BRD4 in tumor cells results in tumors becoming more sensitive to being killed by T cells.

Preclinical studies conducted have demonstrated that PH-894 resulted in a strong, concentration dependent and durable silencing of BRD4 in T cells and in various cancer cells. Similar to PH-762, nonclinical studies have also shown that direct-to-tumor application of PH-894 resulted in potent and statistically significant anti-tumoral effects against distant untreated tumors, indicative of a systemic anti-tumor response. These nonclinical data indicate that PH-894 can reprogram T cells and other cells in the tumor microenvironment to provide enhanced immunotherapeutic activity. We have completed the IND-enabling studies. As a result of the reprioritization to advance our clinical trial with PH-762 in the U.S., we have elected to defer the IND submission for PH-894.

**Synergies With Other Therapies**

Preclinical studies with our INTASYL compounds in combination with antibodies resulted in enhanced potency in vivo. The combination of INTASYL with antibodies may also increase the number of addressable drug targets. Unlike other antibody combination approaches, INTASYL can target multiple protein drug targets in a specific therapeutic dose, thereby enhancing potency while maintaining a favorable tolerability and safety profile.

We have demonstrated nonclinical activity with INTASYL in adoptive cell therapy ("ACT") applications. In preclinical studies, INTASYL was shown to enhance the activity of ACT therapies, including with tumor infiltrating lymphocytes and natural killer cells. As demonstrated in these preclinical studies, INTASYL can be efficiently incorporated into current ACT manufacturing processes.

**Patents and Patent Applications**

INTASYL compounds have a single-stranded phosphorothioate region, a short duplex region, and contain a variety of nuclease-stabilizing and lipophilic chemical modifications that we believe combine the beneficial properties of both conventional RNAi and antisense technologies. We protect our proprietary information by means of United States and foreign patents, trademarks, and copyrights. In addition, we rely upon trade secret protection and contractual arrangements to protect certain of our proprietary information and products. We have pending patent applications that relate to potential drug targets, compounds we are developing to modulate those targets, methods of making or using those compounds, and proprietary elements of our drug discovery platform.

We have also obtained rights to various patents and patent applications under assignment and/or license agreements with third parties, which require us to pay royalties, milestone payments, or both. We assess our license agreements on an ongoing basis and may from time to time terminate licenses to technology that we do not intend to employ in our technology platforms, or in our product discovery or development activities.

We actively protect our intellectual property and are prosecuting a number of patents and pending patent applications covering our compounds and technologies. We continue to rationalize our intellectual property position to protect our lead clinical candidates in key geographic regions while abandoning patents or applications that do not pertain to INTASYL or are country-specific in regions that are not of strategic geographic focus. A combined summary of these patents and patent applications is set forth below in the following table:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Pending | Pending | Issued | Issued |
|  | Applications | Applications | Patents | Patents |
| United States |  | 5 |  | 24 |
| Canada |  | 2 |  | 2 |
| Europe |  | 5 |  | 16 |
| Japan |  | 4 |  | 9 |
| Other Markets |  | 2 |  | 4 |
| International PCT |  | 2 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18

------

[**Table of Contents**](#toc)

Our portfolio includes 55 issued patents, 50 of which cover our INTASYL platform, and of those 28 cover immuno-oncology compounds and therapeutic uses. There are 15 patent families broadly covering both the composition and methods of use of our self-delivering INTASYL platform technology and uses of our INTASYL compounds targeting immune checkpoint, cellular differentiation, and metabolism targets for *ex vivo* cell-based cancer immunotherapies. The INTASYL platform patents are scheduled to expire between 2029 and 2038.

Furthermore, there are 20 patent applications, encompassing what we believe to be important new RNAi compounds and their use as therapeutics, chemical modifications of RNAi compounds that improve the compounds' suitability for therapeutic uses (including delivery) and compounds directed to specific targets (*i.e.*, that address specific disease states). The patents that may issue from these pending patent applications will, if issued, be set to expire between 2029 and 2044, not including any patent term extensions that may be afforded under the Federal Food, Drug, and Cosmetic Act ("**FFDCA**") (and the equivalent provisions in foreign jurisdictions) for any delays incurred during the regulatory approval process relating to human drug products (or processes for making or using human drug products).

**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 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 2025 Form 10-K. For a discussion of our critical accounting policies and estimates, refer to "*Management*'*s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates*" in Part II, Item 7 of our Form 10-K for the fiscal year ended December 31, 2025.

**Results of Operations**

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

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |  |
|  |  |  | **Dollar** |
| **Description** | **2026** | **2025** | **Change** |
| Operating expenses | $4167 | $1872 | $2295 |
| Operating loss | $(4167) | $(1872) | $(2295) |
| Net loss | $(4003) | $(1769) | $(2234) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19

------

[**Table of Contents**](#toc)

**Comparison of the Three Months Ended March 31, 2026 and 2025**

***Operating Expenses***

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

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |  |
|  |  |  | **Dollar** |
| **Description** | **2026** | **2025** | **Change** |
| Research and development | $2793 | $886 | $1907 |
| General and administrative | 1374 | 986 | 388 |
| Total operating expenses | $4167 | $1872 | $2295 |

---

**Research and Development Expenses**

Research and development expenses consist primarily of personnel expenses, including salaries, benefits and RSU stock compensation expense for research and development personnel, contract research organization (CRO) clinical trial costs, technology licenses and other expenses associated with nonclinical and clinical development activities. Our research and development programs are focused on the development of immuno-oncology therapeutics based on our INTASYL technology. 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 March 31, 2026 increased 215% or $1.9 million as compared with the three months ended March 31, 2025. This increase in research and development expenses was primarily driven by a $1.6 million increase in nonclinical and clinical trial costs, chemistry, manufacturing and controls (CMC) costs in connection with advancing our PH-762 program and a $220 thousand increase in R&D employee personnel related costs for salary, bonus and stock compensation expense. Management believes that research and development expenses will continue to increase as we continue to advance our PH-762 program.

------

**General and Administrative Expenses**

General and administrative expenses consist primarily of personnel expenses, including salaries, benefits and RSU stock compensation expense for general and administrative personnel, professional fees for legal, audit, tax consulting services, as well as other general corporate expenses.

General and administrative expenses for the three months ended March 31, 2026 increased 39% or $400 thousand as compared with the three months ended March 31, 2025. The increase in general and administrative expenses was primarily driven by a $98 thousand increase in bonus expense accrual, $228 thousand increase in stock-based compensation expense, $65 thousand increase in investor outreach and $66 thousand increase in professional fees. Additionally, there was an $115 thousand increase in finance employee-related costs that is offset by a reduction of $248 thousand for outsourced accounting fees in the first quarter of 2025.

**Liquidity and Capital Resources**

Historically, we have primarily funded our operations through the sale of our securities. In the future, we expect to depend on external funding from third parties, such as proceeds from the sale of equity, debt financings or potential strategic opportunities, to support our operations. Since our inception we have incurred operating losses and expect that we will continue to have negative cash flows from our operations and for the foreseeable future. As of March 31, 2026, we had cash and cash equivalents of $17 million as compared with $21 million at December 31, 2025.

Based on current cash flow projections, we believe we have sufficient cash and cash equivalents, including net proceeds from our latest financing that occurred during November 2025, to meet our current planned obligations for at least 12 months. We have limited cash resources, have incurred recurring operating losses and negative cash flows from our operations since our inception and have not yet recognized any product revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20

------

[**Table of Contents**](#toc)

To address our liquidity needs and strengthen our financial position, in April 2026, we established an At The Market Agreement ("Sales Agreement") with H.C. Wainwright & Co., LLC ("HCW") pursuant to which we may offer and sell shares of our Common Stock having an aggregate offering price of up to $6,360,000 from time to time through HCW, acting as sales agent, at prevailing market prices. No assurance can be given that any Common Stock will be sold under the Sales Agreement, or if such sales occur, no assurance can be given as to the price or number of shares of Common Stock that will be sold, or the dates on which any such sales will take place.

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

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Net cash used in operating activities | $(4003) | $(1275) |
| Net cash provided by (used in) investing activities | 3 | (2) |
| Net cash provided by financing activities |  | 9173 |
| Net increase (decrease) in cash and cash equivalents | $(4000) | $7896 |

---

***Net Cash Used in Operating Activities***

Net cash used in operating activities for the three months ended March 31, 2026 increased by $2.7 million as compared to the three months ended March 31, 2025. This was primarily driven by net loss from operations in the first quarter of 2026 due to increased development spend.

***Net Cash Provided by or Used in Investing Activities***

Net cash provided by investing activities for the three months ended March 31, 2026 was $3 thousand for an equipment sale. Net cash used in investing activities was $2 thousand for the purchase of computer equipment for the three months ended March 31, 2025.

***Net Cash Provided by Financing Activities***

There was no cash provided by financing activities for the three months ended March 31, 2026. The $9.2 million decrease in net cash provided by financing activities as compared to the three months ended March 31, 2025, was primarily due to the issuance of Common Stock and warrants, and the exercise of warrants in the prior year, both as described in Note 3 of the condensed consolidated financial statements.

**Contractual Obligations**

There have been no material changes to the contractual obligations as disclosed in our 2025 Form 10-K. For a discussion of our critical accounting policies and estimates, refer to "*Management*'*s Discussion and Analysis of Financial Condition and Results of Operations - Contractual Obligations*" in Part II, Item 7 of our 2025 Form 10-K.

**Future Funding Requirements**

At March 31, 2026, we had cash and cash equivalents of $17.0 million. We expect that our cash and cash equivalents will enable us to fund our current operating plan for at least 12 months. Due to the difficulty and uncertainty associated with the design and implementation of nonclinical 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21

------

[**Table of Contents**](#toc)

Actual cash requirements could differ from management's projections due to many factors including additional investments in research and development programs such as PH-894, nonclinical and clinical trial expenses for PH-762, competing technological and market developments, personnel costs, general and administrative expenses, and the costs of any strategic acquisitions and/or development of complementary business opportunities. The amount of additional capital we will require will be influenced by many factors, including, but not limited to:

● the scope, progress, results, and costs of nonclinical and clinical trials of PH-762;

● our expectations regarding the timing and clinical development of PH-762;

● whether and to what extent we internally fund, whether and when we initiate, and how we conduct additional pipeline product development programs, including PH-894;

● the costs involved with manufacturing clinical supply of PH-762;

● whether and when we are able to enter into strategic arrangements for our product candidates and the nature of those arrangements;

● the costs involved in preparing, filing, prosecuting, maintaining, defending, and enforcing any patent claims;

● changes in our operating plan, resulting in increases or decreases in our need for capital;

● disruptions at the FDA, including due to a reduction in the FDA's workforce and/or inadequate funding for the FDA; and

● our views on the availability, timing, and desirability of raising capital.

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 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 March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22

------

[**Table of Contents**](#toc)

**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 "*Risk Factors in Part I*, "*Item 1A*". in our 2025 Form 10-K. The risk factor described therein and set forth below 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.

***Future financing may be obtained through, and future development efforts may be paid for by, the issuance of debt or equity, which may have an adverse effect on our stockholders or may otherwise adversely affect our business.***

If we raise funds through the issuance of debt or equity, any debt securities or preferred stock issued will have rights, preferences and privileges senior to those of holders of Common Stock in the event of a liquidation. In such event, there is a possibility that once all senior claims are settled, there may be no assets remaining to pay out to the holders of Common Stock. The terms of debt securities may also impose restrictions on our operations, which may include limiting our ability to incur additional indebtedness, to pay dividends on or repurchase our capital stock, or to make certain acquisitions or investments. In addition, we may be subject to covenants requiring us to satisfy certain financial tests and ratios, and our ability to satisfy such covenants may be affected by events outside of our control. For example, in April 2026, we established an At The Market Agreement (the "**Sales Agreement**") with H.C. Wainwright & Co., LLC ("**HCW**") pursuant to which we may offer and sell shares of Common Stock having an aggregate offering price of up to $6,360,000 from time to time through HCW, acting as sales agent, at prevailing market prices pursuant to one or more "at the market" offerings. As of the date of this filing, we have $6,360,000 million of Common Stock remaining available for sale under the Sales Agreement. If we raise funds through the issuance of additional equity, whether through private placements or public offerings, which we have done in the past, including through one or more "at the market" offerings under the Sales Agreement, such issuances would dilute current stockholders' ownership in us, perhaps substantially. The issuance of a significant amount of shares of Common Stock could cause the market price of Common Stock to decline or become highly volatile.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **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**  |

---

*Insider Trading Arrangements*

During the *three* months ended *March 31, 2026*, 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **ITEM 6.** | **EXHIBITS**  |

---

**EXHIBIT INDEX** 

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Incorporated by Reference Herein** | **Incorporated by Reference Herein** |
| **Exhibit<br> Number** | **Description** | **Form** | **Date** |
| 3.1 | [<u>Amended and Restated Certificate of Incorporation of Phio Pharmaceuticals Corp.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316818003505/phio_ex0302.htm) | Current Report on Form 8-K (File No. 001-36304) | November 19, 2018 |
| 3.2 | [<u>Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Phio Pharmaceuticals Corp.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316820000141/phio_ex0301.htm) | Current Report on Form 8-K (File No. 001-36304) | January 14, 2020 |
| 3.3 | [<u>Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Phio Pharmaceuticals Corp.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316823000307/phio_ex0301.htm) | Current Report on Form 8-K (File No. 001-36304) | January 25, 2023 |
| 3.4 | [<u>Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Phio Pharmaceuticals Corp.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316824004619/phio_ex0301.htm) | Current Report on Form 8-K (File No. 001-36304) | July 2, 2024 |
| 3.5 | [<u>Certificate of Designation of Series D Preferred Stock, dated November 16, 2022.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316822007821/phio_ex0301.htm) | Current Report on Form 8-K (File No. 001-36304) | November 16, 2022 |
| 3.6 | [<u>Amended and Restated Bylaws of Phio Pharmaceuticals Corp.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316820003428/phio_ex0301.htm) | Current Report on Form 8-K (File No. 001-36304) | May 2, 2022 |
| 4.1 | [<u>Form of Warrant.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316818002882/rxi_s1aa2-0405.htm) | Amendment No. 1 to the Registration Statement on Form S-1 (File No. 333-221173) | September 28, 2018 |
| 4.2 | [<u>Form of Warrant.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316820001071/phio_ex0401.htm) | Current Report on Form 8-K (File No. 001-36304) | April 2, 2020 |
| 4.3 | [<u>Form of Common Stock Warrant.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316821000249/phio_ex0401.htm) | Current Report on Form 8-K (File No. 001-36304) | January 25, 2021 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25

------

[**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| 4.4 | [Form of Placement Agent Warrant](http://www.sec.gov/Archives/edgar/data/1533040/000168316823008732/phio_ex0402.htm) | Current Report on Form 8-K (File No. 001-36304) | December 8, 2023 |
| 4.5 | [Form of Series C/D Warrant](http://www.sec.gov/Archives/edgar/data/1533040/000168316824004800/phio_ex0401.htm) | Current Report on Form 8-K (File No. 001-36304) | July 12, 2024 |
| 4.6 | [Form of Placement Agent Warrant](http://www.sec.gov/Archives/edgar/data/1533040/000168316824004800/phio_ex0402.htm) | Current Report on Form 8-K (File No. 001-36304) | July 12, 2024 |
| 4.7 | [Form of Placement Agent Warrant](http://www.sec.gov/Archives/edgar/data/1533040/000168316824008884/phio_ex0402.htm) | Current Report on Form 8-K (File No. 001-36304) | December 20, 2024 |
| 4.8 | [Form of Placement Agent Warrant](http://www.sec.gov/Archives/edgar/data/1533040/000168316824008984/phio_ex0402.htm) | Current Report on Form 8-K (File No. 001-36304) | December 26, 2024 |
| 4.9 | [<u>Form of Placement Agent Warrant.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316825000347/phio_ex0402.htm) | Current Report on Form 8-K (File No. 001-36304) | January 14, 2024 |
| 4.10 | [<u>Form of Placement Agent Warrant.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316825000384/phio_ex0402.htm) | Current Report on Form 8-K (File No. 001-36304) | January 15, 2024 |
| 4.11 | [<u>Form of Placement Agent Warrant.</u>](http://www.sec.gov/Archives/edgar/data/1533040/000168316825000426/phio_ex0402.htm) | Current Report on Form 8-K (File No. 001-36304) | January 17, 2024 |
| 4.12 | [Form of Series J/K Warrant](http://www.sec.gov/Archives/edgar/data/1533040/000168316825005523/phio_ex0401.htm) | Current Report on Form 8-K (File No. 001-36304) | July 30, 2025 |
| 4.13 | [Form of Placement Agent Warrant](http://www.sec.gov/Archives/edgar/data/1533040/000168316825005523/phio_ex0402.htm) | Current Report on Form 8-K (File No. 001-36304) | July 30, 2025 |
| 4.14 | [Form of Series A Warrant](http://www.sec.gov/Archives/edgar/data/0001533040/000143774925033600/ex_882927.htm) | Current Report on Form 8-K (File No. 001-36304) | November 6, 2025 |
| 4.15 | [Form of Placement Agent Warrant](http://www.sec.gov/Archives/edgar/data/1533040/000143774925033600/ex_882928.htm) | Current Report on Form 8-K (File No. 001-36304) | November 13, 2025 |
| 10.1 | [Second Amendment to the Employment Agreement of Robert J. Bitterman, dated February 17, 2026, by and between Robert J. Bitterman and Phio Pharmaceuticals Corp.#](http://www.sec.gov/Archives/edgar/data/1533040/000143774926004542/ex_921338.htm) | Current Report on Form 8-K (File No. 001-36304) | February 18, 2026 |
| 10.2 | [At the Market Offering Agreement, by and between the Company and H.C. Wainwright & Co., LLC, dated April 8, 2026.](http://www.sec.gov/Archives/edgar/data/1533040/000143774926011761/ex_942765.htm) | Current Report on Form 8-K (File No. 001-36304) | April 8, 2026 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| 31.1 | [<u>Sarbanes-Oxley Act Section 302 Certification of Principal Executive Officer.</u>\*](ex_931022.htm) |
| 31.2 | [<u>Sarbanes-Oxley Act Section 302 Certification of Principal Financial Officer.</u>\*](ex_931023.htm) |
| 32.1 | [<u>Sarbanes-Oxley Act Section 906 Certification of Principal Executive Officer and Principal Financial Officer.</u>\*\*](ex_931024.htm) |
| 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.

# Indicates a management contract or compensatory plan or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27

------

[**Table of Contents**](#toc)

**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 on May 7, 2026.

---

| | |
|:---|:---|
| Phio Pharmaceuticals Corp. | Phio Pharmaceuticals Corp. |
| By: | /s/ Robert J. Bitterman |
|  | Robert J. Bitterman |
|  | President and Chief Executive Officer<br> (as Principal Executive Officer) |

---

---

| | |
|:---|:---|
| By: | /s/ Lisa C. Carson |
|  | Lisa C. Carson |
|  | Chief Financial Officer<br> (as Principal Financial Officer) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28

## Exhibit 31.1

**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:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are 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:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our 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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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: May 7, 2026

---

| |
|:---|
| /s/ Robert J. Bitterman |
| Robert J. Bitterman |
| President and Chief Executive Officer |

---

## Exhibit 31.2

**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, Lisa C. Carson, certify that:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are 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:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our 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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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: May 7, 2026

---

| |
|:---|
| /s/ Lisa C. Carson |
| Lisa C. Carson |
| Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL 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 March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned officers of the Company certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to their knowledge:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the Company's financial condition and results of operations.

Dated: May 7, 2026

---

| |
|:---|
| /s/ Robert J. Bitterman |
| Robert J. Bitterman |
| President and Chief Executive Officer |
| (Principal Executive Officer) |

---

Dated: May 7, 2026

---

| |
|:---|
| /s/ Lisa C. Carson |
| Lisa C. Carson |
| Chief Financial Officer |
| (Principal Financial Officer) |

---