Phio Pharmaceuticals Corp. — financial distress indicators
Financial-health summary
Phio Pharmaceuticals Corp.'s reported numbers place it in the 'Weak' financial-health band (distress score 54/100). The main indicators are losses in each of the last 3 years, operations consume cash and massive shareholder dilution.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Share count up +571% in a year.
Survival financing: repeated equity raises at depressed prices.
Cash covers ~15 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Last price $0.97.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Price is -61% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- Phio Pharmaceuticals to Present at The Global Markets Virtual Forum October 8, 2026Yahoo Finance · 2026-10-06
- Phio Pharmaceuticals to Present at the National Investment Banking Association (NIBA) 153rd ConferenceYahoo Finance · 2026-10-05
- Phio Pharmaceuticals to Present Clinical Development Update and Upcoming Catalysts at Life Sciences Future 2026 ConferenceYahoo Finance · 2026-09-23
- Phio Announces Key Development Milestone for PH-762 with FDA Submission Supporting Next Stage of Clinical Development in Cutaneous Squamous Cell CarcinomaYahoo Finance · 2026-09-14
- Phio Pharmaceuticals to Participate in the H.C. Wainwright 28th Annual Global Investment ConferenceYahoo Finance · 2026-09-11
- Phio Pharmaceuticals Reports Second Quarter 2026 Financial Results and Business UpdateYahoo Finance · 2026-08-06
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Phio Pharmaceuticals Corp.'s financial-health indicators show?
As of 2026-10-08, Phio Pharmaceuticals Corp.'s public financial data places it in the 'Weak' band with a distress score of 54/100, driven by losses in each of the last 3 years, operations consume cash and massive shareholder dilution. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Phio Pharmaceuticals Corp.'s financial distress score?
54/100 ('Weak').
What works in Phio Pharmaceuticals Corp.'s favour?
No material mitigating factors were found in the available data.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Pharma & Biotech companies with distress indicators
- ABVC BioPharma, Inc. (ABVC)Very weak 100/100
- AKAN (AKAN)Very weak 100/100
- Endovia Health Sciences, Inc. (EDVA)Very weak 100/100
- Elicio Therapeutics, Inc. (ELTX)Very weak 100/100
- IM Cannabis Corp. (IMCC)Very weak 100/100
- NeuroSense Therapeutics Ltd. (NRSN)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.