COCP Cocrystal Pharma Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended June 30, 2024

 

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: 001-38418

 

COCRYSTAL PHARMA, INC.

(Exact name of registrant as specified in its charter)

 

Delaware		35-2528215
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)
19805 North Creek Parkway Bothell, WA		98011
(Address of Principal Executive Office)		(Zip Code)

 

Registrant’s telephone number, including area code: 877-262-7123

 

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 (Sec.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. (Check one):

 

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

 

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		COCP		The Nasdaq Stock Market LLC (The Nasdaq Capital Market)

 

As of August 14, 2024, the number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was approximately 10,173,790.

 

 

 

COCRYSTAL PHARMA, INC.

 

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2024

 

INDEX

 

Part I - FINANCIAL INFORMATION
Item 1.
Condensed Consolidated Balance Sheets	F-1
Condensed Consolidated Statements of Operations	F-2
Condensed Consolidated Statements of Stockholders’ Equity	F-3
Condensed Consolidated Statements of Cash Flows	F-4
Notes to the Condensed Consolidated Financial Statements	F-5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Item 3. Quantitative and Qualitative Disclosures About Market Risk	9
Item 4. Controls and Procedures	9
Part II - OTHER INFORMATION
Item 1. Legal Proceedings	10
Item 1. A. Risk Factors	10
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	10
Item 3. Defaults Upon Senior Securities	10
Item 4. Mine Safety Disclosures	10
Item 5. Other Information	10
Item 6. Exhibits	11
SIGNATURES	12

 

 

Part I – FINANCIAL INFORMATION

 

COCRYSTAL PHARMA, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

		June 30, 2024				December 31, 2023
		(unaudited)
Assets
Current assets:
Cash		$	18,143			$	26,353
Restricted cash			75				75
Tax credit receivable			1,077				890
Prepaid expenses and other current assets			365				1,773
Total current assets			19,660				29,091
Property and equipment, net			211				271
Deposits			29				46
Operating lease right-of-use assets, net (including $11 and $42 to related party)			1,673				1,851
Total assets		$	21,573			$	31,259
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses		$	2,403			$	3,022
Current maturities of operating lease liabilities (including $10 and $42 to related party)			251				240
Total current liabilities			2,654				3,262
Long-term liabilities:
Operating lease liabilities (including $0 and $0 to related party)			1,529				1,613
Total long-term liabilities			1,529				1,613
Total liabilities			4,183				4,875
Commitments and contingencies			-				-
Stockholders’ equity:
Common stock, $0.001 a par value: 100,000 and 150,000 shares authorized as of June 30, 2024, and December 31, 2023; 10,174 shares issued and outstanding as of June 30, 2024 and December 31, 2023			10				10
Additional paid-in capital			342,593				342,288
Accumulated deficit			(325,213	)			(315,914	)
Total stockholders’ equity			17,390				26,384
Total liabilities and stockholders’ equity		$	21,573			$	31,259

 

See accompanying notes to condensed consolidated financial statements.

 

 

COCRYSTAL PHARMA, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

		2024				2023				2024				2023
		Three months ended June 30,								Six months ended June 30,
		2024				2023				2024				2023
Operating expenses:
Research and development			4,308				2,801				7,258				6,708
General and administrative			1,140				1,538				2,348				2,742
Total operating expenses			5,448				4,339				9,606				9,450
Loss from operations			(5,448	)			(4,339	)			(9,606	)			(9,450	)
Other income (expense):
Interest income, net			151				140				371				140
Foreign exchange gain (loss)			(46	)			33				(64	)			(45	)
Total other expense, net			105				173				307				95
Net loss		$	(5,343	)		$	(4,166	)			(9,299	)			(9,355	)
Net loss per common share, basic and diluted		$	(0.53	)		$	(0.41	)			(0.91	)			(1.03	)
Weighted average number of common shares outstanding, basic and diluted			10,174				10,065				10,174				9,109

 

See accompanying notes to condensed consolidated financial statements.

 

 

COCRYSTAL PHARMA, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)

(in thousands)

 

		Shares				Amount				Capital				Deficit				Equity
		Common Stock								Additional Paid-in				Accumulated				Total Stockholders’
		Shares				Amount				Capital				Deficit				Equity
Balance as of December 31, 2023			10,174			$	10			$	342,288			$	(315,914	)		$	26,384
Stock-based compensation			-				-				157				-				157
Net loss			-				-				-				(3,956	)			(3,956	)
Balance as of March 31, 2024			10,174			$	10			$	342,445			$	(319,870	)		$	22,585
Stock-based compensation			-				-				148				-				148
Net loss			-				-				-				(5,343	)			(5,343	)
Balance as of June 30, 2024			10,174			$	10			$	342,593			$	(325,213	)		$	17,390

 

		Common Stock								Additional Paid-in				Accumulated				Total Stockholders’
		Shares				Amount				Capital				Deficit				Equity
Balance as of December 31, 2022			8,143			$	8			$	337,489			$	(297,930	)		$	39,567
Stock-based compensation			-				-				291				-				291
Net loss			-				-				-				(5,189	)			(5,189	)
Balance as of March 31, 2023			8,143			$	8			$	337,780			$	(303,119	)		$	34,669
Balance			8,143			$	8			$	337,780			$	(303,119	)		$	34,669
Stock-based compensation			-				-				179				-				179
Sale of common stock, net of transaction costs			2,031				2				3,998				-				4,000
Net loss			-				-				-				(4,166	)			(4,166	)
Balance as of June 30, 2023			10,174			$	10			$	341,957			$	(307,285	)		$	34,682
Balance			10,174			$	10			$	341,957			$	(307,285	)		$	34,682

 

See accompanying notes to condensed consolidated financial statements.

 

 

COCRYSTAL PHARMA, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

		2024				2023
		Six months ended June 30,
		2024				2023
Operating activities:
Net loss		$	(9,299	)		$	(9,355	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense			68				96
Stock-based compensation			305				470
Changes in operating assets and liabilities:
Prepaid expenses and other current assets			1,408				183
Deposits			17				-
Tax credit receivable			(187	)			(491	)
Decrease in right of use assets			178				108
Accounts payable and accrued expenses			(619	)			445
Operating lease liabilities			(73	)			(115	)
Net cash used in operating activities			(8,202	)			(8,659	)
Investing activities:
Purchases of property and equipment			(8	)			(59	)
Net cash used in investing activities			(8	)			(59	)
Financing activities:
Payments on finance lease liabilities			-				(7	)
Proceeds from sale of common stock, net of transaction costs			-				4,000
Net cash used in financing activities			-				3,993
Net decrease in cash and restricted cash			(8,210	)			(4,725	)
Cash and restricted cash at beginning of period			26,428				37,219
Cash and restricted cash at end of period		$	18,218			$	32,494

 

See accompanying notes to condensed consolidated financial statements.

 

 

COCRYSTAL PHARMA, INC.

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(unaudited)

 

1. Organization and Business

 

Cocrystal Pharma, Inc. (“we”, the “Company” or “Cocrystal”), a clinical stage biopharmaceutical company incorporated in Delaware, has been developing novel technologies and approaches to create first-in-class or best-in-class antiviral drug candidates. Our focus is to pursue the development and commercialization of broad-spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans. By concentrating our research and development efforts on viral replication inhibitors, we plan to leverage our infrastructure and expertise in these areas.

 

The Company’s activities since inception have principally consisted of acquiring product and technology rights, raising capital, and performing research and development. Successful completion of the Company’s development programs, obtaining regulatory approvals of its products and, ultimately, the attainment of profitable operations is dependent on future events, including, among other things, its ability to access potential markets, secure financing, develop a customer base, attract, retain and motivate qualified personnel, and develop strategic alliances. Through June 30, 2024, the Company has primarily funded its operations through equity offerings.

 

Liquidity

 

The Company’s consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses and negative operating cash flows since inception. For the six months ended June 30, 2024, the Company recorded a net loss of approximately $9,299,000 and used approximately $8,202,000 of cash in operating activities.

 

On June 30, 2024, the Company had cash and cash equivalents of approximately $18,143,000. We believe that our current resources will be sufficient to fund our operations beyond the next 12 months. This estimate is based, in part, upon our currently projected expenditures.

 

The Company’s activities since inception have principally consisted of acquiring product and technology rights, raising capital, and performing research and development. Successful completion of the Company’s development programs, obtaining regulatory approvals of its products and, ultimately, the attainment of profitable operations is dependent on future events, including, among other things, its ability to access potential markets, secure financing, develop a customer base, attract, retain and motivate qualified personnel, and develop strategic alliances. Through June 30, 2024, the Company has primarily funded its operations through equity offerings.

 

The Company will need to continue obtaining adequate capital to fund operating losses until it becomes profitable. The Company can give no assurances that the additional capital it is able to raise, if any, will be sufficient to meet its needs, or that any such financing will be obtainable on acceptable terms. Our future cash requirements, and the timing of those requirements, will depend on a number of factors, including economic conditions, the approval and success of our products in development, the continued progress of research and development of our product candidates, the timing and outcome of clinical trials and regulatory approvals, the costs involved in preparing, filing, prosecuting, maintaining, defending, and enforcing patent claims and other intellectual property rights, the status of competitive products, the availability of financing, our success in developing markets for our product candidates and legal proceedings that may arise. We have historically not generated sustained positive cash flow and if we are not able to secure additional funding when needed, we may have to delay, reduce the scope of, or eliminate one or more of our clinical trials or research and development programs. If the Company is unable to obtain adequate capital, it could be forced to cease operations or substantially curtail its drug development activities. The Company expects to continue incurring substantial operating losses and negative cash flows from operations over the next several years during its pre-clinical and clinical development phases.

 

2. Basis of Presentation and Significant Accounting Policies

 

Basis of Presentation

 

The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X set forth by the Securities and Exchange Commission (“SEC”). They do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the interim periods presented are not necessarily indicative of the results of operations for the entire fiscal year. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2023 filed on March 28, 2024 (“Annual Report”).

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Cocrystal Pharma, Inc. and its wholly owned subsidiaries: Cocrystal Discovery, Inc., Cocrystal Pharma Australia Pty Ltd. (“Cocrystal Australia”), RFS Pharma, LLC and Cocrystal Merger Sub, Inc. Intercompany transactions and balances have been eliminated. Cocrystal Discovery, Inc. conducts all of the Company’s research and development activities and oversees ongoing clinical trials conducted by others. Cocrystal Australia operates clinical trials in Australia. The other two subsidiaries are inactive.

 

Segments

 

The Company operates in only one segment. Management uses cash flows as the primary measure to manage its business and does not segment its business for internal reporting or decision-making.

 

F-5

 

 

Use of Estimates

 

Preparation of the Company’s consolidated financial statements in conformance with U.S. GAAP requires the Company’s management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The significant estimates in the Company’s consolidated financial statements relate to the valuation of equity awards and warrant liabilities, recoverability of deferred tax assets, estimated tax credit receivable and estimated useful lives of fixed assets. The Company bases estimates and assumptions on historical experience, when available, and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis, and its actual results may differ from estimates made under different assumptions or conditions.

 

Concentrations of Credit Risk

 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash deposited in accounts held at two U.S. financial institutions, which may, at times, exceed federally insured limits of $250,000 for each institution where accounts are held. At June 30, 2024 and December 31, 2023, our primary operating accounts held approximately $7,536,000 and $16,322,000, respectively, and our collateral account balance was $75,000 and $75,000 at a different institution. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risks thereof.

 

Foreign Currency Transactions

 

The Company and its subsidiaries use the U.S. dollar as functional currency. Foreign currency transactions are initially measured and recorded in the functional currency using the exchange rate on the date of the transaction. Foreign exchange gains and losses arising from settlement of foreign currency transactions are recognized in profit and loss.

 

Cocrystal Australia maintains its records in Australian dollars. The monetary assets and liabilities of Cocrystal Australia are remeasured into the functional currency using the closing rate at the end of every reporting period. All nonmonetary assets and liabilities and related profit and loss accounts are remeasured into the functional currency using the historical exchange rates. Profit and loss accounts, other than those that are remeasured using the historical exchange rates, are remeasured into the functional currency using the average exchange rate for the period. Foreign exchange gains and losses arising from the remeasurement into the functional currency is recognized in profit and loss.

 

Fair Value Measurements

 

FASB Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

 

	Level 1 — quoted prices in active markets for identical assets or liabilities.
	Level 2 — other significant observable inputs for the assets or liabilities through corroboration with market data at the measurement date.
	Level 3 — significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.

 

F-6

 

 

At June 30, 2024 and December 31, 2023, the carrying amounts of financial assets and liabilities, such as cash, other current assets, and accounts payable and accrued expenses approximate their fair values due to their short-term nature. The carrying values of leases payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates.

 

Long-Lived Assets

 

The Company regularly reviews the carrying value and estimated lives of its long-lived assets, including property and equipment, to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. The determinants used for this evaluation include management’s estimate of the asset’s ability to generate positive income from operations and positive cash flow in future periods as well as the strategic significance of the assets to the Company’s business objective. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount over the asset’s fair value.

 

Research and Development Expenses

 

Research and development costs consist primarily of fees paid to consultants and outside service providers, and other expenses relating to the acquisition, design, development and testing of the Company’s clinical products. All research and development costs are expensed as incurred. Research and development costs are presented net of tax credits.

 

The Company’s Australian subsidiary is entitled to receive government assistance in the form of refundable and non-refundable research and development tax credits (“Refundable Tax Credits”) from the federal and provincial taxation authorities, based on qualifying expenditures incurred during the fiscal year. The Refundable Tax Credits are from the provincial taxation authorities and are not dependent on its ongoing tax status or tax position and accordingly are not considered part of income taxes. The Company records Refundable Tax Credits as a reduction of research and development expenses when the Company can reasonably estimate the amounts and it is more likely than not, they will be received. As of December 31, 2023, balance of Refundable Tax Credits was approximately $786,000. The Company estimated and accrued Refundable Tax Credits for the six months ended June 30, 2024 of approximately $264,000, resulting in a total balance of Refundable Tax Credits receivable of approximately $1,050,000 as of the period then ended.

 

Income Taxes

 

The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered or settled. Realization of deferred tax assets is dependent upon future taxable income. A valuation allowance is recognized if it is more likely than not that some portion or all of a deferred tax asset will not be realized based on the weight of available evidence, including expected future earnings. The Company recognizes an uncertain tax position in its financial statements when it concludes that a tax position is more likely than not to be sustained upon examination based solely on its technical merits. Only after a tax position passes the first step of recognition will measurement be required. Under the measurement step, the tax benefit is measured as the largest amount of benefit that is more likely than not to be realized upon effective settlement. This is determined on a cumulative probability basis. The full impact of any change in recognition or measurement is reflected in the period in which such change occurs. The Company elects to accrue any interest or penalties related to income taxes as part of its income tax expense.

 

F-7

 

 

As of June 30, 2024, the Company assessed its income tax expense based on its projected future taxable income for the year ending December 31, 2024 and therefore recorded no amount for income tax expense for the six months ended June 30, 2024. In addition, the Company has significant deferred tax assets available to offset income tax expense due to net operating loss carry forwards which are currently subject to a full valuation allowance based on the Company’s assessment of future taxable income. Refer to our Annual Report on Form 10-K for the year ended December 31, 2023 for more information.

 

Stock-Based Compensation

 

The Company recognizes compensation expense using a fair value-based method for costs related to stock-based payments, including stock options. The fair value of options awarded to employees is measured on the date of grant using the Black-Scholes option pricing model and is recognized as expense over the requisite service period on a straight-line basis.

 

Use of the Black-Scholes option pricing model requires the input of subjective assumptions including expected volatility, expected term, and a risk-free interest rate. The Company estimates volatility using a blend of its own historical stock price volatility as well as that of market comparable entities since the Company’s common stock has limited trading history and limited observable volatility of its own. The expected term of the options is estimated by using the SEC Staff Bulletin No. 107’s Simplified Method for Estimate Expected Term. The risk-free interest rate is estimated using comparable published federal funds rates.

 

Common Stock Purchase Warrants and Other Derivative Financial Instruments

 

We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40, Contracts in Entity’s Own Equity. We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.

 

Net Income (Loss) per Share

 

The Company accounts for and discloses net income (loss) per common share in accordance with FASB ASC Topic 260, Earnings Per Share. Basic income (loss) per common share is computed by dividing income (loss) attributable to common stockholders by the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common stock for all potential dilutive common shares outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants and the conversion of convertible notes payable.

 

The following table sets forth the number of potential common shares excluded from the calculations of net loss per diluted share because their inclusion would be anti-dilutive (in thousands):

 Schedule of Anti-dilutive Securities Excluded from Calculations of Net Loss Per Share

		2024				2023
		June 30,
		2024				2023
Outstanding options to purchase common stock			555				350
Warrants to purchase common stock			-				13
Total			555				363

 

F-8

 

 

Recent Accounting Pronouncements

 

Authoritative guidance issued by the FASB (including technical corrections to the ASC), the American Institute of Certified Public Accountants, and the SEC did not, or are not expected to, have a material impact on the Company’s consolidated financial statements and related disclosures.

 

3. Property and Equipment

 

Property and equipment are recorded at cost and depreciated over the estimated useful lives of the underlying assets (three to five years) using the straight-line method. As of June 30, 2024, and December 31, 2023, property and equipment consists of (table in thousands):

 Schedule of Property and Equipment

		June 30, 2024				December 31, 2023
Lab equipment (excluding equipment under finance leases)		$	1,765			$	1,757
Finance lease right-of-use lab equipment obtained in exchange for finance lease liabilities, net			162				162
Computer and office equipment			155				155
Total property and equipment			2,082				2,074
Less: accumulated depreciation and amortization			(1,871	)			(1,803	)
Property and equipment, net		$	211			$	271

 

Total depreciation and amortization expense were approximately $68,000 and $96,000 for the six months ended June 30, 2024 and 2023, which includes amortization expense of $0 and $7,164 for the six months ended June 30, 2024 and 2023, respectively, related to assets under finance lease. For additional finance leases information, refer to Note 9 – Commitments and Contingencies.

 

4. Accounts Payable and Accrued Expenses

 

Accounts payable and accrued expenses consisted of the following (in thousands) as of:

 Schedule of Accounts Payable and Accrued Expenses

		June 30, 2024				December 31, 2023
Accounts payable		$	1,743			$	1,222
Accrued compensation			156				109
Accrued other expenses			504				1,691
Total accounts payable and accrued expenses		$	2,403			$	3,022

 

Accounts payable and accrued other expenses contain unpaid general and administrative expenses and costs related to research and development that have been billed and estimated unbilled, respectively, as of period-end.

 

5. Common Stock and Preferred Stock

 

As of June 30, 2024, the Company has authorized 100,000,000 shares of common stock, $0.001 par value per share, and 1,000,000 shares of preferred stock, $0.001 par value per share.

 

On June 27, 2024, the Company, following approval of the Company’s stockholders at the 2024 Annual Meeting of Stockholders filed an amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Amendment”) to decrease the number of shares of authorized capital stock of the Company from 155,000,000 shares of capital stock, consisting of 150,000,000 shares of common stock and 5,000,000 shares of preferred stock, to 101,000,000 shares of capital stock consisting of 100,000,000 shares of common stock and 1,000,000 shares of preferred stock. The Amendment became effective on June 27, 2024.

 

The Company had 10,174,000 shares of common stock and no shares of preferred stock issued and outstanding as of June 30, 2024, and December 31, 2023.

 

The holders of common stock are entitled to one vote for each share of common stock held.

 

F-9

 

 

6. Stock Based Awards

 

Equity Incentive Plans

 

The Company adopted an equity incentive plan in 2015 (the “2015 Plan”) under which 833,333 shares of common stock have been reserved for issuance to employees, and non-employee directors and consultants of the Company. Recipients of incentive stock options granted under the 2015 Plan shall be eligible to purchase shares of the Company’s common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The maximum term of options granted under the 2015 Plan is ten years. On June 16, 2021, the Company’s stockholders voted to approve an amendment to the 2015 Plan to increase the number of shares of common stock authorized for issuance under the 2015 Plan from 416,667 to 833,333 shares. As of June 30, 2024, 278,000 shares remain available for future grants under the 2015 Plan.

 

The following table summarizes stock option transactions for the 2015 Plan, collectively, for the six months ended June 30, 2024 (in thousands, except per share amounts):

 Schedule of Stock Option Transactions

		Number of Shares Available for Grant				Total Options Outstanding				Weighted Average Exercise Price				Aggregate Intrinsic Value
Balance at December 31, 2023			275				558			$	10.57			$	-
Exercised			-				-				-				-
Granted			-				-				-				-
Expired			3				(3	)			4.90				-
Balance at June 30, 2024			278				555			$	10.40			$	-

 

The Company accounts for share-based awards to employees and nonemployee directors and consultants in accordance with the provisions of ASC 718, Compensation—Stock Compensation., and under the recently issued guidance following FASB’s pronouncement, ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under ASC 718, and applicable updates adopted, share-based awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service, or vesting, period. The Company values its equity awards using the Black-Scholes option pricing model, and accounts for forfeitures when they occur. For the three and six months ended June 30, 2024 and 2023, equity-based compensation expense recorded was approximately 148,000 and $179,000 and $305,000 and $241,000, respectively.

 

As of June 30, 2024, there was approximately $402,000 of total unrecognized compensation expense related to non-vested stock options that is expected to be recognized over a weighted average period of 0.9 years. For options granted and outstanding, there were 555,000 options outstanding which were fully vested or expected to vest, with an aggregate intrinsic value of $0, a weighted average exercise price of $10.40 and weighted average remaining contractual term of 7.7 years at June 30, 2024. For vested and exercisable options, outstanding shares totaled 307,000, with an aggregate intrinsic value of $0. These options had a weighted average exercise price of $16.33 per share and a weighted-average remaining contractual term of 6.8 years at June 30, 2024.

 

The aggregate intrinsic value of outstanding and exercisable options at June 30, 2024 was calculated based on the closing price of the Company’s common stock as reported on The Nasdaq Capital Market on June 30, 2024 of $2.33 per share less the exercise price of the options. The aggregate intrinsic value is calculated based on the positive difference between the closing fair market value of the Company’s common stock and the exercise price of the underlying options.

 

F-10

 

 

Common Stock Reserved for Future Issuance

 

The following table presents information concerning common stock available for future issuance (in thousands) as of:

 Schedule of Common Stock Reserved for Future Issuance

		June 30, 2024				June 30, 2023
Stock options issued and outstanding			555				350
Shares authorized for future option grants			278				484
Warrants outstanding			-				13
Total			833				847

 

7. Warrants

 

The following is a summary of activity in the number of warrants classified as liabilities outstanding to purchase the Company’s common stock for the six months ended June 30, 2024 (in thousands):

 Schedule of Warrants Activity

		January 2014 Warrants
Outstanding, December 31, 2023			11
Exercised			-
Granted			-
Expired			(11	)
Outstanding, June 30, 2024			-
Expiration date:			1/16/2024

 

8. Licenses and Collaborations

 

Merck Sharp & Dohme Corp.

 

On January 2, 2019, the Company entered into an Exclusive License and Research Collaboration Agreement (the “Collaboration Agreement”) with Merck Sharp & Dohme LLC (“Merck”) to discover and develop certain proprietary influenza A/B antiviral agents. Under the terms of the Collaboration Agreement, Merck funded research and development for the program, including clinical development, and was responsible for worldwide commercialization of any products derived from the collaboration. Under the Collaboration Agreement Cocrystal was eligible to receive payments related to designated development, regulatory and sales milestones with the potential to earn up to $156,000,000, as well as royalties on product sales. The Collaboration Agreement provided that Merck may terminate the Collaboration Agreement at any time prior to the first commercial sale of the first product developed under the Collaboration Agreement, in its sole discretion, without cause.

 

On December 15, 2023, the Company received written notice from Merck of Merck’s election to terminate the Collaboration Agreement. The termination of the Collaboration Agreement took effect on March 14, 2024. According to Merck’s termination notice, Merck determined there were no existing conditions to continue the collaboration. The termination resulted from the inability to develop the compounds to meet a specific aspect of Merck’s program. The pending patent applications on compounds covered by the Collaboration Agreement and previously filed by Merck on behalf of both companies remain in place.

 

Kansas State University Research Foundation

 

Cocrystal entered into two License Agreement with Kansas State University Research Foundation (the “Foundation”) on February 18, 2020 to further develop certain proprietary broad-spectrum antiviral compounds for the treatment of norovirus and coronavirus infections.

 

F-11

 

 

On February 28, 2024, the Company provided notice to the Foundation of the Company’s election to terminate the 2020 License Agreements. The terminations, which were made due to the Company’s determination that further development efforts under the License Agreements would be futile, took effect on March 29, 2024.

 

9. Commitments and Contingencies

 

Commitments

 

In the ordinary course of business, the Company enters into non-cancellable leases to purchase equipment and for its facilities, including related party leases (see Note 10 – Transactions with Related Parties). Leases are accounted for as operating leases or finance leases, in accordance with ASC 842, Leases.

 

Operating Leases

 

The Company leases office space in Miami, Florida and research and development laboratory space in Bothell, Washington under operating leases that expire on August 31, 2024 and January 31, 2029, respectively. For operating leases, the weighted average discount rate is 6.0% and the weighted average remaining lease term is 5.9 years.

 

The following table summarizes the Company’s maturities of operating lease liabilities, by year and in aggregate, as of June 30, 2024 (table in thousands):

 Schedule of Maturities of Operating Lease Liabilities

2024 (excluding the six months ended June 30, 2024)		$	178
2025			344
2026			355
2027			365
2028			376
2029 and thereafter			513
Total operating lease payments			2,131
Less: present value discount			(351	)
Total operating lease liabilities		$	1,780

 

As of June 30, 2024, the total operating lease liability of $251,000 is classified as a current operating lease liability.

 

The operating lease liabilities summarized above do not include variable common area maintenance (the “CAM”) charges, which are contractual liabilities under the Company’s Bothell, Washington lease. CAM charges for the Bothell, Washington facility are calculated annually based on actual common expenses for the building incurred by the lessor and proportionately billed to tenants based on leased square footage. For the six months ended June 30, 2024 and 2023, approximately $95,000 and $54,000 of CAM was included in general and administrative operating expenses on the condensed consolidated statements of operations, respectively.

 

The minimum lease payments above include the amounts that would be paid if the Company maintains its Bothell lease for the five-year term, starting February 2024.

 

On September 1, 2021, the Company entered into a three-year lease extension with a limited liability company controlled by Dr. Phillip Frost, a director and a principal stockholder of the Company. On an annualized basis, straight-line rent expense is approximately $62,000, including fixed and estimable fees and taxes. The Company intends to renew the lease following expiration in 2024.

 

On September 21, 2023, the Company amended the lease agreement with a North Creek Tec LLC, to expand its laboratory facility in Bothell – WA, with additional 6,000 sq ft for a period of 5 years that expires on January 31, 2029, with monthly lease payments under this lease totaling $660,000. In addition, the Company amended the lease agreement to extend the original laboratory facility for an additional 7 years with monthly lease payments under this lease totaling $1,498,000. Through January 2031, the minimum lease payment combined totals approximately $380,000 annually.

 

F-12

 

 

For the six months ended June 30, 2024 and 2023, operating lease expense, excluding short-term leases, finance leases and CAM charges, totaled approximately $189,000 and $116,000, respectively, of which $31,000 and $26,000 for each period was to a related party.

 

Finance Leases

 

In April 2020, the Company entered into lease agreements to acquire lab equipment with 36 monthly payments of $2,000 payable through March 31, 2023. The final payment under the lease agreement was made in March 2023 and the title of the equipment has transferred title to the Company.

 

The leased lab equipment is depreciable over five years and is presented net of accumulated depreciation on the condensed consolidated balance sheets under property and equipment. As of December 31, 2023, total right-of-use assets lab equipment exchanged for finance lease liabilities was $162,000 and accumulated depreciation for lab equipment under finance leases was $162,000. The remaining lab equipment under the finance lease terminated on March 31, 2023, and due to the leased equipment’s remaining 25 months of useful life, it was transferred to fixed assets at book value of $32,000 and continues to depreciate.

 

Phase 2a Clinical Trial

 

On August 3, 2022 the Company engaged hVIVO, a subsidiary of London-based Open Orphan plc (AIM: ORPH), a rapidly growing specialist contract research organization (“CRO”), to conduct a Phase 2a clinical trial with the Company’s novel, broad-spectrum, orally administered antiviral influenza candidate. The Company prepaid a reservation fee of $1.7 million upon execution of the agreement. As of June 30, 2024 the Company expensed $1.7 million leaving no balance in prepaid and other expenses. In addition, the Company incurred additional costs of $1.7 million on this agreement during the six months ending June 30, 2024.

 

The total estimated cost of the agreement (including the reservation fee) is approximately $6.9 million.

 

On May 21, 2024, the Company entered into a new agreement with hVIVO, as a follow-on to CPI-CST-001 Influenza virus challenge study, in which potential resistance to CC-42344 antiviral compound will be genotypically characterized. The Company incurred $45,000 on this agreement for three months ended June 30, 2024. The total estimated cost of this agreement is approximately $227,000.

 

Contingencies

 

From time to time, the Company is a party to, or otherwise involved in, legal proceedings arising in the normal course of business. As of the date of this report, except as described below, the Company is not aware of any proceedings, threatened or pending, against it which, if determined adversely, would have a material effect on its business, results of operations, cash flows or financial position.

 

10. Transactions with Related Parties

 

On September 1, 2021, the Company entered into a three-year lease extension with a limited liability company controlled by Dr. Phillip Frost, a director and a principal stockholder of the Company. For the six months ended June 30, 2024 and 2023, rent expense was approximately $31,000 for each period, including fixed and estimable fees and taxes. The Company intends to renew the lease following expiration in 2024.

 

On April 4, 2023, the Company entered into a Securities Purchase Agreement with two accredited investors (the “Purchasers”) whereby the Purchasers agreed to purchase a total of 2,030,458 shares of unregistered common stock at a price of $1.97 per share for a total purchase price of $4,000,000 in two equal $2,000,000 investments. The Purchasers were an entity controlled by a director and another investor who subsequently joined the Company’s Board of Directors.

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Overview

 

Cocrystal Pharma, Inc. (the “Company” or “Cocrystal”) is a clinical-stage biotechnology company seeking to discover and develop novel antiviral therapeutics as treatments for serious and/or chronic viral diseases. We employ unique structure-based technologies and Nobel Prize winning expertise to create first- and best-in-class antiviral drugs. These technologies are designed to efficiently deliver small molecule therapeutics that are safe, effective and convenient to administer. We have identified promising preclinical and clinical-stage antiviral compounds for unmet medical needs including influenza virus, coronavirus, norovirus and hepatitis C virus (“HCV”).

 

Research and Development Update

 

During the six months ended June 30, 2024 and more recently the Company continued to focus its research and development efforts primarily in three areas. The following is an overview of the characteristics, goals and development progress of each of these programs.

 

 

Influenza Program

 

We have several candidates under development for the treatment of influenza infection. CC-42344, a novel PB2 inhibitor, was selected as a preclinical lead for the treatment of pandemic and seasonal influenza A. Oral CC-42344 was advanced to a Phase 2a influenza human challenge clinical study as described in more detail below. This drug candidate binds to a highly conserved PB2 site of influenza polymerase complex (PB1: PB2: PA) and exhibits a novel mechanism of action. CC-42344 showed excellent antiviral activity against influenza A strains, including avian pandemic strains and strains resistant to Tamiflu® and Xofluza, and has favorable pharmacokinetic and drug resistance profiles. This drug candidate was specifically designed and developed using Cocrystal’s proprietary structure-based drug discovery platform technology.

 

We received authorization from the United Kingdom Medicines and Healthcare Products Regulatory Agency (MHRA) to initiate a Phase 2a human challenge study with oral CC-42344 as a potential treatment for pandemic and seasonal influenza A. This ongoing randomized, double-blind, placebo-controlled study is evaluating the safety, tolerability, viral and clinical measurements of influenza A infection in subjects dosed with oral CC-42344 treatment. In May 2024 we announced completion of enrollment of 78 subjects.

 

 

In June 2024 we reported the potential efficacy of CC-42344 against the new avian flu strain with the recently published genome sequence for H5N1. Using our proprietary structure-based platform technology, Cocrystal created a high-resolution crystal structure of this avian PB2 protein and confirmed that CC-42344 binds to its highly conserved PB2 region. The in vitro data generated testing CC-42344 against the avian H5N1 PB2 protein showed a desired level of CC-42344’s activity similar to that of Cocrystal’s data in other strains of pandemic and seasonal influenza A.

 

 

CC-42344 binds to the highly conserved region of the avian influenza A H5N1 PB2 protein

 

In addition to oral CC-42344, we developed inhaled CC-42344 for the prophylactic treatment of pandemic and seasonal influenza A infections. Our preclinical data of inhaled CC-42344 showed excellent antiviral activity in influenza H1N1-infected human upper airway epithelium with a favorable safety profile. We completed inhalation formulation development and are conducting 14-day GLP toxicology study.

 

We also continue developing novel broad-spectrum influenza antivirals targeting replication enzymes of influenza A and B strains.

 

Norovirus and Coronavirus Programs

 

We developed novel protease inhibitor CDI-988 as an oral pan-viral treatment of noroviruses and coronavirus, including SARS-CoV-2 and its variants. CDI-988 was specifically designed and developed using our proprietary structure-based drug discovery platform technology as a broad-spectrum antiviral inhibitor to a highly conserved region in the active site of noroviruses, coronaviruses and other 3CL viral proteases.

 

Oral CDI-988 is being clinically evaluated for safety, tolerability and pharmacokinetics including a food-effect cohort in healthy volunteers in a single-center, randomized, double-blind, placebo-controlled Phase 1 study being conducted in Australia.

 

In July 2024 we announced favorable safety and tolerability results from the single-ascending dose (SAD) cohorts of the Phase 1 study with CDI-988. Study participants in the SAD cohorts received CDI-988 in doses ranging from 100 mg to 600 mg. All participants completed the study with no discontinuations. There were no serious adverse events or severe treatment-emergent adverse events. No clinically significant observations were noted in laboratory assessments, physical exams or electrocardiograms.

 

Therapeutic Targets

 

Influenza: A worldwide public health problem, including the potential for pandemic disease.

 

Influenza is a severe respiratory illness, caused primarily by influenza A or B virus. Influenza A viruses are the only influenza viruses known to cause influenza pandemics. Each year there are approximately 1 billion cases of seasonal influenza worldwide, with 3-5 million severe illnesses and up to 650,000 deaths, according to the World Health Organization (“WHO”). On average about 8% of the U.S. population contracts influenza each season, according to the Centers for Disease Control and Prevention (“CDC”). In addition to the health risk, influenza is responsible for approximately $10.4 billion in direct medical costs in the U.S. annually, according to the National Institutes of Health (“NIH”).

 

 

Currently, approved antiviral treatments for influenza are effective, but burdened with significant viral resistance. Strains of influenza virus that are resistant to the approved treatments oseltamivir phosphate (Tamiflu®), zanamavir (Relenza®) and baloxavir marboxil (Xofluza®) have appeared, and in some cases are predominant. For example, the predominant strain of the 2009 swine influenza pandemic was resistant to oseltamivir. Oseltamivir inhibits influenza neuraminidase enzymes, which are not highly conserved between viral strains. According to the WHO, approximately 15% of the H1N1 isolated circulating worldwide were oseltamivir resistant. Also, treatment-emergent resistance to recently approved baloxavir has been observed during clinical trials and the potential transmission of resistant influenza variants could significantly diminish baloxavir effectiveness.

 

Coronavirus: COVID-19 continues to be a global pandemic fueled by an emergence of new strains.

 

COVID-19 is a global pandemic with 775,673,955 confirmed cases globally, including 7,053,524 deaths, as of July 7, 2024, according to data reported by the WHO.

 

Coronaviruses (CoV) are a large family of RNA viruses that historically have been associated with illness ranging from mild symptoms similar to the common cold to more severe respiratory disease. Infection with the novel SARS-CoV-2 has been associated with a wide range of responses, from no symptoms to more severe disease that has included pneumonia, severe acute respiratory syndrome, kidney failure, and death. The incubation period for SARS-CoV-2 is believed to be within 14 days after exposure, with most illness occurring within about five days after exposure. SARS-CoV-2, like other RNA viruses, is prone to mutate over time, resulting in the emergence of multiple variants. Adaptive mutations in the viral genome can alter the virus’s pathogenic potential. Even a single amino acid exchange can drastically affect a virus’s ability to evade the immune system and complicate the vaccine and antibody therapeutics development against the virus. Based on the recent epidemiological update by the WHO, five SARS-CoV-2 VOCs (variants of concern) have been identified since the beginning of the pandemic. Also, as demonstrated in Delta and Omicron variants as well as the more recent JN.1 strain, some variations allow the virus to spread more easily and make it resistant to the treatments and vaccines.

 

On October 22, 2020, the U.S. Food and Drug Administration (“FDA”) approved the antiviral drug Veklury® (remdesivir) for the treatment of COVID-19 requiring hospitalization. Remdesivir is a nucleotide prodrug that inhibits viral replication and was previously evaluated in clinical trials for Ebola treatment in 2014. On May 25, 2023, the FDA approved Paxlovid™ (nirmatrelvir tablets and ritonavir tablets, co-packaged for oral use) for use to treat COVID-19 for the treatment of mild-to-moderate COVID-19 in adults who are at high risk for progression to severe COVID-19, including hospitalization or death. For certain hospitalized adults with COVID-19, the FDA has also approved Olumiant® (baricitinib) and Actemra® (tocilizumab). In addition, the FDA issued emergency use authorization (EUA) for several antibody and antiviral therapeutics, including and Lagevrio™ (molnupiravir).

 

We continue pursuing the development of novel antiviral compounds for the treatment of coronavirus infections using our established proprietary drug discovery platform. By targeting the viral replication enzymes and protease, we believe it is possible to develop an effective treatment for all coronavirus diseases including COVID-19, Severe Acute Respiratory Syndrome (SARS), and Middle East Respiratory Syndrome (MERS).

 

Norovirus: A worldwide public health problem responsible for close to 90% of epidemic, non-bacterial outbreaks of gastroenteritis around the world with no effective treatment.

 

Norovirus is a very common and highly contagious virus that causes symptoms of acute gastroenteritis among people of all ages. Norovirus infection can be significantly more severe and prolonged in specific risk groups including infants, children, the elderly and people with immunodeficiency. Symptoms include nausea, vomiting, stomach pain and diarrhea as well as fatigue, fever and dehydration. Outbreaks occur most commonly in semi-closed communities and have become notorious for their occurrence in hospitals, nursing homes, childcare facilities, cruise ships, schools, disaster relief sites and military settings. In the U.S. alone, noroviruses are responsible for an estimated 21 million cases annually, including 109,000 hospitalizations, 465,000 emergency department visits and nearly 900 deaths, according to the CDC. The NIH estimates the annual burden to the United States at $10.6 billion. Noroviruses are responsible for up to 1.1 million hospitalizations and 218,000 deaths annually in children in the developing world. In immunosuppressed patients, chronic norovirus infection can lead to a debilitating illness with extended periods of nausea, vomiting and diarrhea.

 

 

There is currently no effective treatment or effective vaccine for norovirus, and the ability to curtail outbreaks is limited. We have a norovirus therapeutic candidate in clinical testing. A few companies have been developing vaccines and are in stages of clinical testing, including Vaxart Pharmaceutical, Moderna, Hillevax, Takeda Pharmaceuticals, Anhui Zhifei Longcom Biopharmaceutical (China) and National Vaccine and Serum Institute (China).

 

By targeting viral replication enzymes and a viral protease, we believe it is possible to develop an effective treatment for all genogroups of norovirus. Also, because of the significant unmet medical need and the possibility of chronic norovirus infection in immunocompromised individuals, new antiviral therapeutic and prophylactic approaches may warrant an accelerated path to market. We are developing inhibitors of the RNA-dependent RNA polymerase and protease of norovirus. These enzymes are essential to viral replication and are highly conserved between all noroviral genogroups. Therefore, an inhibitor of these enzymes might be an effective treatment or short-term prophylactic agent, when administered during a cruise or nursing home stay, for example. We have developed X-ray quality norovirus polymerase and protease crystals and have identified promising inhibitors. We are implementing the platform and approaches that have proven successful in our other antiviral programs.

 

Hepatitis C: A large competitive market with opportunity for shorter treatment regimens.

 

HCV is a highly competitive and changing market. Since 2014, several combinations of direct-acting antiviral agents (“DAAs”) have been approved for the treatment of HCV infection. These include Harvoni® (sofosbuvir/ledipasvir) 12 weeks of treatment, Viekira Pak™ (ombitasvir/paritaprevir/ritonavir, dasabuvir) 12 weeks of treatment, Epclusa® (sofosbuvir/velpatasvir) 12 weeks of treatment, Zepatier™ (elbasvir/grazoprevir) 12 weeks of treatment and Mavyret® (glecaprevir/pibrentasvir) eight weeks of treatment. We believe the next improvements in HCV treatment will be ultra-short combination oral treatments of four to six weeks, which is the goal of our program.

 

We anticipate a significant global HCV market opportunity that will persist through at least 2036, given the large prevalence of HCV infection worldwide. The 2024 World Health Organization Global Hepatitis Report estimates that 50 million people worldwide have chronic HCV infections with about 1 million new infections occurring per year and an estimated 3.2 million adolescents and children with chronic HCV infection.

 

We are targeting the viral NS5B polymerase with an NNI, which could be developed as part of an all-oral, pan-genotypic combination regimen. Our focus is on developing what is now called ultrashort treatment regimens from four to six weeks in length. Combining CC-31244 with different classes of approved DAAs has the potential to change the paradigm of treatment for HCV by shortening the duration of treatment. Combination strategies with approved drugs could allow us to expand CC-31244 into the HCV antiviral therapeutic area globally and could lead to a high and fast cure rate, to improved compliance, and to reduced treatment duration. To our knowledge no competing company has yet developed a short HCV treatment of less than 8 weeks with a high (>95%) sustained virologic response (SVR) at week 12.

 

CC-31244, an HCV NNI, is a potential best in class pan-genotypic inhibitor of NS5B polymerase for the treatment of HCV. We completed a randomized, double-blinded Phase 1a/b study in healthy volunteers and HCV-infected subjects in Canada in September 2016, with favorable safety results. We completed a Phase 2a study in HCV genotype 1 subjects in the U.S. in 2017. HCV-infected subjects treated with CC-31244 had a rapid and marked decline in HCV RNA levels, and slow viral rebound after treatment. Results of this study suggest that CC-31244 could be an important component in a shortened duration all-oral HCV combination therapy. We have completed the Phase 2a final study report as filed with the FDA. See “Item 1 – Business – Research and Development Update – Hepatitis C” in our Annual Report on Form 10-K for the year ended December 31, 2023 for more information.

 

We have been seeking a partner for further clinical development of CC-31244 since completing Phase 2a trials.

 

 

Results of Operations for the Six Months Ended June 30, 2024 compared to the Six Months Ended June 30, 2023

 

Research and Development Expense

 

Research and development expense consists primarily of compensation-related costs for our employees dedicated to research and development activities and clinical trials, as well as lab supplies, lab services, and facilities and equipment costs related to our research and development programs.

 

Total research and development expenses for the three months ended June 30, 2024, and 2023 were $4,308,000 and $2,801,000, respectively. The increase of $1,507,000 was primarily due to our Influenza CC-42344 product candidate entering into a Phase 2a clinical trial and our norovirus and coronavirus candidate CDI-988 entering into a Phase 1 clinical trial.

 

Total research and development expenses for the six months ended June 30, 2024, and 2023 were $7,258,000 and $6,708,000, respectively. The increase of $550,000 was primarily due ongoing clinical trials described above.

 

General and Administrative Expense

 

General and administrative expenses include compensation-related costs for our employees dedicated to general and administrative activities, legal fees, audit and tax fees, consultants and professional services, and general corporate expenses.

 

General and administrative expenses for the three months ended June 30, 2024, and 2023 were $1,140,000 and $1,538,000, respectively. The decrease of $398,000 was primarily due to a reduction of litigation expenses.

 

General and administrative expenses for the six months ended June 30, 2024, and 2023 were $2,348,000 and $2,742,000, respectively. The decrease of $394,000 was primarily due to a reduction of litigation expenses.

 

Interest Income, Net

 

Interest income for the three months ended June 30, 2024 and 2023 was $151,000 and $140,000, respectively, and for the six months ended June 30, 2024 and 2023 was $371,000 and $140,000, respectively. The interest income was primarily earned on cash held in interest bearing bank accounts.

 

Foreign Exchange Loss

 

In 2022, the Company established a wholly owned subsidiary in Australia, making it subject to foreign exchange rate fluctuations. Foreign exchange loss during the six months ended June 30, 2024, and 2023 was $64,000 and $45,000, respectively.

 

Income Taxes

 

No income tax benefit or expense was recognized for the three and six months ended June 30, 2024 and 2023. The Company’s effective income tax rate was 0.00% and 0.00% for the three and six months ended June 30, 2024 and 2023. As a result of the Company’s cumulative losses, management has concluded that a full valuation allowance against the Company’s net deferred tax assets is appropriate.

 

Net Loss

 

As a result of the above factors, net loss for the three and six months ended June 30, 2024 was $5,343,000 and $9,299,000, compared with a net loss of $4,166,000 and $9,355,000 for the three and six months ended June 30, 2023, respectively, primarily as a result of operations described above.

 

 

Liquidity and Capital Resources

 

Net cash used in operating activities was $8,202,000 for the six months ended June 30, 2024 compared with net cash used in operating activities of $8,659,000 for the same period in 2023. This decrease was primarily due to period expenses related to the completion of our COVID-19 Phase 1 clinical trial and completion of our Influenza A Phase 2a clinical trial and preparation for our anticipated Influenza A Phase 1 inhaler administer medicine clinical trial and completion of our COVID-19 Phase 1 clinical trial.

 

We used $8,000 net cash for investing activities during the six months ended June 30, 2024 compared with $59,000 net cash used for the same period in 2023. For the six months ended June 30, 2024 the level of investments decreased compared with June 30, 2023 due to comparative reduction in purchases of laboratory equipment in 2024.

 

Net cash used in financing activities totaled $0 for the six months ended June 30, 2024 compared with net cash used in financing activities of $3,993,000 for the same period in 2023 due to sufficient capital resulting in a lack of financing activity in the 2024 period.

 

The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs. The Company had $18,143,000 unrestricted cash on June 30, 2024. The Company believes it has sufficient cash to maintain planned operations for more than the next 12 months.

 

We have focused our efforts on research and development activities, including through collaborations with suitable partners. We have been profitable on a quarterly basis but have never been profitable on an annual basis. We have no products approved for sale and have incurred operating losses and negative operating cash flows on an annual basis since inception.

 

The Company’s interim consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Historically, public and private equity offerings have been our principal source of liquidity.

 

The Company is party to the At-The-Market Offering Agreement, dated July 1, 2020 (“ATM Agreement”) with H.C. Wainwright & Co., LLC (“Wainwright”), pursuant to which the Company may issue and sell over time and from time to time, to or through Wainwright, up to $10,000,000 of shares of the Company’s common stock. During January 2021, the Company sold 1,030,000 shares of its common stock pursuant to the ATM Agreement for net proceeds of approximately $2,072,000. On May 24, 2023, the Company filed a prospectus supplement covering sales under the ATM Agreement under which we may offer and sell shares of our common stock having an aggregate offering price of up to $7,250,000 from time to time through Wainwright. There were no sales under the ATM Agreement during the six months ended June 30, 2024.

 

As the Company continues to incur losses, achieving profitability is dependent upon the successful development, approval and commercialization of its product candidates, and achieving a level of revenues adequate to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. Management intends to fund future operations through additional private or public equity offerings and through arrangements with strategic partners or from other sources. There can be no assurances, however, that additional funding will be available on terms acceptable to the Company, or at all, and any equity financing may be very dilutive to existing stockholders.

 

 

Cautionary Note Regarding Forward-Looking Statements

 

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future effectiveness of our product candidates, our plans for the future development of preclinical and clinical drug candidates, the progress and expected or potential timelines of achieving certain value driving milestones in our programs, progressing our programs in the clinical development process generally, our expectations regarding future operating results and liquidity. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.

 

The results anticipated by any or all of these forward-looking statements might not occur. Important factors that could cause actual results to differ from those in the forward-looking statements include the risks and uncertainties arising from the risks arising from inflation, interest rate increases, the possibility of a recession and the economic impact of the wars in Israel and Ukraine on our Company, our collaboration partners, and on the U.S., U.K., Australia and global economies, including downturns in economic activity and capital markets, manufacturing and research delays arising from raw materials and labor shortages, supply chain disruptions and other business interruptions including any adverse impacts on our ability to obtain raw materials and test animals as well as similar problems with our vendors and our current and any future contract research organizations (CROs) and contract manufacturing organizations (CMOs), the ability of our CROs to recruit volunteers for, and to proceed with, clinical studies, and our collaboration partners’ technology and software performing as expected, financial difficulties experienced by certain partners, the results of the studies for CC-42344 and CDI-988 and any future preclinical and clinical trials we or our strategic partners undertake, general risks arising from clinical trials, receipt of regulatory approvals, regulatory changes, development of effective treatments and/or vaccines by competitors, including as part of the programs financed by governmental authorities and potential mutations in a virus we are targeting which may result in variants that are resistant to a product candidate we develop. Further information on our risk factors is contained in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

 

Critical Accounting Policies and Estimates

 

In our Annual Report on Form 10-K for the year ended December 31, 2023, we disclosed our critical accounting policies and estimates upon which our financial statements are derived.

 

Accounting estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from these estimates.

 

Readers are encouraged to review these disclosures in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 in conjunction with the review of this report.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

We carried out an evaluation, under the supervision and with the participation of our management, including our Co-Chief Executive Officers and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this report. Based on that evaluation, our Co-Chief Executive Officers and Chief Financial Officer have concluded that our disclosure controls and procedures as of June 30, 2024 were effective to ensure that information required to be disclosed by us 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.

 

Changes in Internal Control over Financial Reporting

 

There were no material changes in our internal controls over financial reporting or in other factors that could materially affect, or are reasonably likely to affect, our internal controls over financial reporting during the quarter ended June 30, 2024. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

 

PART II — OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

From time to time, the Company is a party to, or otherwise involved in, legal proceedings arising in the normal course of business. During the reporting period, there have been no material changes to the description of legal proceedings set forth in our Annual Report on Form 10-Q for the year ended June 30, 2024.

 

ITEM 1.A RISK FACTORS

 

None.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

All recent sales of unregistered securities have been previously reported.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

During the six months ended June 30, 2024, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule 10b5-1 arrangement” as defined in Item 408(c) of Regulation S-K.

 

 

ITEM 6. EXHIBITS

 

The exhibits listed in the accompanying “Exhibit Index” are filed or incorporated by reference as part of this Form 10-Q.

 

EXHIBIT INDEX

 

Exhibit				Incorporated by Reference						Filed or Furnished
No.		Exhibit Description		Form		Date		Number		Herewith
3.1		Certificate of Incorporation, as amended		10-Q		8/16/21		3.1
3.1(a)		Certificate of Amendment to Certificate of Incorporation		8-K		10/3/22		3.1
3.1(b)		Certificate of Amendment to Certificate of Incorporation – reduce number of authorized shares		8-K		6/28/24		3.1
3.2		Amended and Restated Bylaws		8-K		2/19/21		3.1
31.1		Certification of Principal Executive Officer (302)								Filed
31.2		Certification of Principal Executive Officer (302)								Filed
31.3		Certification of Principal Financial Officer (302)								Filed
32.1		Certification of Principal Executive and Principal Financial Officer (906)								Furnished*
101.INS		Inline XBRL Instance Document								Filed
101.SCH		Inline XBRL Taxonomy Extension Schema Document								Filed
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document								Filed
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document								Filed
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document								Filed
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document								Filed
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)								Filed

 

* This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K.

 

Copies of this report (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our stockholders who make a written request to our Corporate Secretary at Cocrystal Pharma, Inc., 4400 Biscayne Blvd, Suite 101, Miami, FL 33137.

 

 

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.

 

	Cocrystal Pharma, Inc.
Dated: August 14, 2024	By:	/s/ Sam Lee
		Sam Lee
		President and Co-Chief Executive Officer
		(Principal Executive Officer)
Dated: August 14, 2024	By:	/s/ James Martin
		James Martin
		Chief Financial Officer and Co-Chief Executive Officer
		(Principal Executive Officer and Principal Financial Officer)

 

 

 

Exhibit 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

 

I, Sam Lee, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Cocrystal Pharma, Inc.;

 

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

 

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

 

4. The registrant’s other certifying officer(s) 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:

 

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;

 

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;

 

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

 

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

 

5. The registrant’s other certifying officer(s) 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):

 

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

 

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

 

Date: August 14, 2024

 

/s/ Sam Lee
Sam Lee
President and Co-Chief Executive Officer
(Principal Executive Officer)

 

 

 

Exhibit 31.2

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

 

I, James Martin, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Cocrystal Pharma, Inc.;

 

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

 

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

 

4. The registrant’s other certifying officer(s) 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:

 

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;

 

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;

 

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

 

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

 

5. The registrant’s other certifying officer(s) 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):

 

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

 

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

 

Date: August 14, 2024

 

/s/ James Martin
James Martin
Co-Chief Executive Officer
(Principal Executive Officer)

 

 

 

Exhibit 31.3

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

 

I, James Martin, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Cocrystal Pharma, Inc.;

 

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

 

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

 

4. The registrant’s other certifying officer(s) 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:

 

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;

 

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;

 

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

 

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

 

5. The registrant’s other certifying officer(s) 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):

 

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

 

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

 

Date: August 14, 2024

 

/s/ James Martin
James Martin
Chief Financial Officer
(Principal Financial Officer)

 

 

 

Exhibit 32.1

 

CERTIFICATION 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 Cocrystal Pharma, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof, I, Sam Lee, certify, pursuant to 18 U.S.C. Sec.1350, as adopted pursuant to Sec.906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

1. The quarterly report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

 

2. The information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Sam Lee
Sam Lee
President and Co-Chief Executive Officer
(Principal Executive Officer)

 

Dated: August 14, 2024

 

In connection with the quarterly report of Cocrystal Pharma, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof, I, James Martin, certify, pursuant to 18 U.S.C. Sec.1350, as adopted pursuant to Sec.906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

1. The quarterly report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

 

2. The information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ James Martin
James Martin
Chief Financial Officer and Co-Chief Executive Officer
(Principal Executive Officer and Principal Financial Officer)

 

Dated: August 14, 2024

 

 

 

v3.24.2.u1

Cover - $ / shares	6 Months Ended
	Jun. 30, 2024	Aug. 14, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-38418
Entity Registrant Name	COCRYSTAL PHARMA, INC.
Entity Central Index Key	0001412486
Entity Tax Identification Number	35-2528215
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	19805 North Creek Parkway
Entity Address, City or Town	Bothell
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98011
City Area Code	877
Local Phone Number	262-7123
Title of 12(b) Security	Common Stock
Trading Symbol	COCP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,173,790
Entity Listing, Par Value Per Share	$ 0.001

v3.24.2.u1

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 18,143,000	$ 26,353,000
Restricted cash	75,000	75,000
Tax credit receivable	1,077,000	890,000
Prepaid expenses and other current assets	365,000	1,773,000
Total current assets	19,660,000	29,091,000
Property and equipment, net	211,000	271,000
Deposits	29,000	46,000
Operating lease right-of-use assets, net (including $11 and $42 to related party)	1,673,000	1,851,000
Total assets	21,573,000	31,259,000
Current liabilities:
Accounts payable and accrued expenses	2,403,000	3,022,000
Current maturities of operating lease liabilities (including $10 and $42 to related party)	251,000	240,000
Total current liabilities	2,654,000	3,262,000
Long-term liabilities:
Operating lease liabilities (including $0 and $0 to related party)	1,529,000	1,613,000
Total long-term liabilities	1,529,000	1,613,000
Total liabilities	4,183,000	4,875,000
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 a par value: 100,000 and 150,000 shares authorized as of June 30, 2024, and December 31, 2023; 10,174 shares issued and outstanding as of June 30, 2024 and December 31, 2023	10,000	10,000
Additional paid-in capital	342,593,000	342,288,000
Accumulated deficit	(325,213,000)	(315,914,000)
Total stockholders’ equity	17,390,000	26,384,000
Total liabilities and stockholders’ equity	$ 21,573,000	$ 31,259,000

v3.24.2.u1

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Operating lease right of use assets related party	$ 11	$ 42
Operating lease liabilities related party current	10	42
Operating lease liabilities related party non-current	$ 0	$ 0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	150,000,000
Common stock, shares issued	10,174,000	10,174,000
Common stock, shares outstanding	10,174,000	10,174,000

v3.24.2.u1

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating expenses:
Research and development	$ 4,308,000	$ 2,801,000	$ 7,258,000	$ 6,708,000
General and administrative	1,140,000	1,538,000	2,348,000	2,742,000
Total operating expenses	5,448,000	4,339,000	9,606,000	9,450,000
Loss from operations	(5,448,000)	(4,339,000)	(9,606,000)	(9,450,000)
Other income (expense):
Interest income, net	151,000	140,000	371,000	140,000
Foreign exchange gain (loss)	(46,000)	33,000	(64,000)	(45,000)
Total other expense, net	105,000	173,000	307,000	95,000
Net loss	$ (5,343,000)	$ (4,166,000)	$ (9,299,000)	$ (9,355,000)
Net loss per common share, basic	$ (0.53)	$ (0.41)	$ (0.91)	$ (1.03)
Net loss per common share, diluted	$ (0.53)	$ (0.41)	$ (0.91)	$ (1.03)
Weighted average number of common shares outstanding, basic	10,174	10,065	10,174	9,109
Weighted average number of common shares outstanding, diluted	10,174	10,065	10,174	9,109

v3.24.2.u1

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 8,000	$ 337,489,000	$ (297,930,000)	$ 39,567,000
Balance, shares at Dec. 31, 2022	8,143
Stock-based compensation		291,000		291,000
Net loss			(5,189,000)	(5,189,000)
Balance at Mar. 31, 2023	$ 8,000	337,780,000	(303,119,000)	34,669,000
Balance, shares at Mar. 31, 2023	8,143
Balance at Dec. 31, 2022	$ 8,000	337,489,000	(297,930,000)	39,567,000
Balance, shares at Dec. 31, 2022	8,143
Net loss				(9,355,000)
Balance at Jun. 30, 2023	$ 10,000	341,957,000	(307,285,000)	34,682,000
Balance, shares at Jun. 30, 2023	10,174
Balance at Mar. 31, 2023	$ 8,000	337,780,000	(303,119,000)	34,669,000
Balance, shares at Mar. 31, 2023	8,143
Stock-based compensation		179,000		179,000
Net loss			(4,166,000)	(4,166,000)
Sale of common stock, net of transaction costs	$ 2,000	3,998,000		4,000,000
Sale of common stock, net of transaction costs, shares	2,031
Balance at Jun. 30, 2023	$ 10,000	341,957,000	(307,285,000)	34,682,000
Balance, shares at Jun. 30, 2023	10,174
Balance at Dec. 31, 2023	$ 10,000	342,288,000	(315,914,000)	26,384,000
Balance, shares at Dec. 31, 2023	10,174
Stock-based compensation		157,000		157,000
Net loss			(3,956,000)	(3,956,000)
Balance at Mar. 31, 2024	$ 10,000	342,445,000	(319,870,000)	22,585,000
Balance, shares at Mar. 31, 2024	10,174
Balance at Dec. 31, 2023	$ 10,000	342,288,000	(315,914,000)	26,384,000
Balance, shares at Dec. 31, 2023	10,174
Net loss				(9,299,000)
Balance at Jun. 30, 2024	$ 10,000	342,593,000	(325,213,000)	17,390,000
Balance, shares at Jun. 30, 2024	10,174
Balance at Mar. 31, 2024	$ 10,000	342,445,000	(319,870,000)	22,585,000
Balance, shares at Mar. 31, 2024	10,174
Stock-based compensation		148,000		148,000
Net loss			(5,343,000)	(5,343,000)
Balance at Jun. 30, 2024	$ 10,000	$ 342,593,000	$ (325,213,000)	$ 17,390,000
Balance, shares at Jun. 30, 2024	10,174

v3.24.2.u1

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities:
Net loss	$ (9,299,000)	$ (9,355,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	68,000	96,000
Stock-based compensation	305,000	470,000
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	1,408,000	183,000
Deposits	17,000
Tax credit receivable	(187,000)	(491,000)
Decrease in right of use assets	178,000	108,000
Accounts payable and accrued expenses	(619,000)	445,000
Operating lease liabilities	(73,000)	(115,000)
Net cash used in operating activities	(8,202,000)	(8,659,000)
Investing activities:
Purchases of property and equipment	(8,000)	(59,000)
Net cash used in investing activities	(8,000)	(59,000)
Financing activities:
Payments on finance lease liabilities		(7,000)
Proceeds from sale of common stock, net of transaction costs		4,000,000
Net cash used in financing activities		3,993,000
Net decrease in cash and restricted cash	(8,210,000)	(4,725,000)
Cash and restricted cash at beginning of period	26,428,000	37,219,000
Cash and restricted cash at end of period	$ 18,218,000	$ 32,494,000

v3.24.2.u1

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (5,343,000)	$ (3,956,000)	$ (4,166,000)	$ (5,189,000)	$ (9,299,000)	$ (9,355,000)

v3.24.2.u1

Insider Trading Arrangements	6 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual [Table]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.24.2.u1

Organization and Business	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	1. Organization and Business   Cocrystal Pharma, Inc. (“we”, the “Company” or “Cocrystal”), a clinical stage biopharmaceutical company incorporated in Delaware, has been developing novel technologies and approaches to create first-in-class or best-in-class antiviral drug candidates. Our focus is to pursue the development and commercialization of broad-spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans. By concentrating our research and development efforts on viral replication inhibitors, we plan to leverage our infrastructure and expertise in these areas.   The Company’s activities since inception have principally consisted of acquiring product and technology rights, raising capital, and performing research and development. Successful completion of the Company’s development programs, obtaining regulatory approvals of its products and, ultimately, the attainment of profitable operations is dependent on future events, including, among other things, its ability to access potential markets, secure financing, develop a customer base, attract, retain and motivate qualified personnel, and develop strategic alliances. Through June 30, 2024, the Company has primarily funded its operations through equity offerings.   Liquidity   The Company’s consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses and negative operating cash flows since inception. For the six months ended June 30, 2024, the Company recorded a net loss of approximately $9,299,000 and used approximately $8,202,000 of cash in operating activities.   On June 30, 2024, the Company had cash and cash equivalents of approximately $18,143,000. We believe that our current resources will be sufficient to fund our operations beyond the next 12 months. This estimate is based, in part, upon our currently projected expenditures.   The Company’s activities since inception have principally consisted of acquiring product and technology rights, raising capital, and performing research and development. Successful completion of the Company’s development programs, obtaining regulatory approvals of its products and, ultimately, the attainment of profitable operations is dependent on future events, including, among other things, its ability to access potential markets, secure financing, develop a customer base, attract, retain and motivate qualified personnel, and develop strategic alliances. Through June 30, 2024, the Company has primarily funded its operations through equity offerings.   The Company will need to continue obtaining adequate capital to fund operating losses until it becomes profitable. The Company can give no assurances that the additional capital it is able to raise, if any, will be sufficient to meet its needs, or that any such financing will be obtainable on acceptable terms. Our future cash requirements, and the timing of those requirements, will depend on a number of factors, including economic conditions, the approval and success of our products in development, the continued progress of research and development of our product candidates, the timing and outcome of clinical trials and regulatory approvals, the costs involved in preparing, filing, prosecuting, maintaining, defending, and enforcing patent claims and other intellectual property rights, the status of competitive products, the availability of financing, our success in developing markets for our product candidates and legal proceedings that may arise. We have historically not generated sustained positive cash flow and if we are not able to secure additional funding when needed, we may have to delay, reduce the scope of, or eliminate one or more of our clinical trials or research and development programs. If the Company is unable to obtain adequate capital, it could be forced to cease operations or substantially curtail its drug development activities. The Company expects to continue incurring substantial operating losses and negative cash flows from operations over the next several years during its pre-clinical and clinical development phases.

v3.24.2.u1

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	2. Basis of Presentation and Significant Accounting Policies   Basis of Presentation   The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X set forth by the Securities and Exchange Commission (“SEC”). They do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the interim periods presented are not necessarily indicative of the results of operations for the entire fiscal year. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2023 filed on March 28, 2024 (“Annual Report”).   Principles of Consolidation   The consolidated financial statements include the accounts of Cocrystal Pharma, Inc. and its wholly owned subsidiaries: Cocrystal Discovery, Inc., Cocrystal Pharma Australia Pty Ltd. (“Cocrystal Australia”), RFS Pharma, LLC and Cocrystal Merger Sub, Inc. Intercompany transactions and balances have been eliminated. Cocrystal Discovery, Inc. conducts all of the Company’s research and development activities and oversees ongoing clinical trials conducted by others. Cocrystal Australia operates clinical trials in Australia. The other two subsidiaries are inactive.   Segments   The Company operates in only one segment. Management uses cash flows as the primary measure to manage its business and does not segment its business for internal reporting or decision-making.     Use of Estimates   Preparation of the Company’s consolidated financial statements in conformance with U.S. GAAP requires the Company’s management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The significant estimates in the Company’s consolidated financial statements relate to the valuation of equity awards and warrant liabilities, recoverability of deferred tax assets, estimated tax credit receivable and estimated useful lives of fixed assets. The Company bases estimates and assumptions on historical experience, when available, and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis, and its actual results may differ from estimates made under different assumptions or conditions.   Concentrations of Credit Risk   Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash deposited in accounts held at two U.S. financial institutions, which may, at times, exceed federally insured limits of $250,000 for each institution where accounts are held. At June 30, 2024 and December 31, 2023, our primary operating accounts held approximately $7,536,000 and $16,322,000, respectively, and our collateral account balance was $75,000 and $75,000 at a different institution. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risks thereof.   Foreign Currency Transactions   The Company and its subsidiaries use the U.S. dollar as functional currency. Foreign currency transactions are initially measured and recorded in the functional currency using the exchange rate on the date of the transaction. Foreign exchange gains and losses arising from settlement of foreign currency transactions are recognized in profit and loss.   Cocrystal Australia maintains its records in Australian dollars. The monetary assets and liabilities of Cocrystal Australia are remeasured into the functional currency using the closing rate at the end of every reporting period. All nonmonetary assets and liabilities and related profit and loss accounts are remeasured into the functional currency using the historical exchange rates. Profit and loss accounts, other than those that are remeasured using the historical exchange rates, are remeasured into the functional currency using the average exchange rate for the period. Foreign exchange gains and losses arising from the remeasurement into the functional currency is recognized in profit and loss.   Fair Value Measurements   FASB Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:     Level 1 — quoted prices in active markets for identical assets or liabilities.       Level 2 — other significant observable inputs for the assets or liabilities through corroboration with market data at the measurement date.       Level 3 — significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.     At June 30, 2024 and December 31, 2023, the carrying amounts of financial assets and liabilities, such as cash, other current assets, and accounts payable and accrued expenses approximate their fair values due to their short-term nature. The carrying values of leases payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates.   Long-Lived Assets   The Company regularly reviews the carrying value and estimated lives of its long-lived assets, including property and equipment, to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. The determinants used for this evaluation include management’s estimate of the asset’s ability to generate positive income from operations and positive cash flow in future periods as well as the strategic significance of the assets to the Company’s business objective. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount over the asset’s fair value.   Research and Development Expenses   Research and development costs consist primarily of fees paid to consultants and outside service providers, and other expenses relating to the acquisition, design, development and testing of the Company’s clinical products. All research and development costs are expensed as incurred. Research and development costs are presented net of tax credits.   The Company’s Australian subsidiary is entitled to receive government assistance in the form of refundable and non-refundable research and development tax credits (“Refundable Tax Credits”) from the federal and provincial taxation authorities, based on qualifying expenditures incurred during the fiscal year. The Refundable Tax Credits are from the provincial taxation authorities and are not dependent on its ongoing tax status or tax position and accordingly are not considered part of income taxes. The Company records Refundable Tax Credits as a reduction of research and development expenses when the Company can reasonably estimate the amounts and it is more likely than not, they will be received. As of December 31, 2023, balance of Refundable Tax Credits was approximately $786,000. The Company estimated and accrued Refundable Tax Credits for the six months ended June 30, 2024 of approximately $264,000, resulting in a total balance of Refundable Tax Credits receivable of approximately $1,050,000 as of the period then ended.   Income Taxes   The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered or settled. Realization of deferred tax assets is dependent upon future taxable income. A valuation allowance is recognized if it is more likely than not that some portion or all of a deferred tax asset will not be realized based on the weight of available evidence, including expected future earnings. The Company recognizes an uncertain tax position in its financial statements when it concludes that a tax position is more likely than not to be sustained upon examination based solely on its technical merits. Only after a tax position passes the first step of recognition will measurement be required. Under the measurement step, the tax benefit is measured as the largest amount of benefit that is more likely than not to be realized upon effective settlement. This is determined on a cumulative probability basis. The full impact of any change in recognition or measurement is reflected in the period in which such change occurs. The Company elects to accrue any interest or penalties related to income taxes as part of its income tax expense.     As of June 30, 2024, the Company assessed its income tax expense based on its projected future taxable income for the year ending December 31, 2024 and therefore recorded no amount for income tax expense for the six months ended June 30, 2024. In addition, the Company has significant deferred tax assets available to offset income tax expense due to net operating loss carry forwards which are currently subject to a full valuation allowance based on the Company’s assessment of future taxable income. Refer to our Annual Report on Form 10-K for the year ended December 31, 2023 for more information.   Stock-Based Compensation   The Company recognizes compensation expense using a fair value-based method for costs related to stock-based payments, including stock options. The fair value of options awarded to employees is measured on the date of grant using the Black-Scholes option pricing model and is recognized as expense over the requisite service period on a straight-line basis.   Use of the Black-Scholes option pricing model requires the input of subjective assumptions including expected volatility, expected term, and a risk-free interest rate. The Company estimates volatility using a blend of its own historical stock price volatility as well as that of market comparable entities since the Company’s common stock has limited trading history and limited observable volatility of its own. The expected term of the options is estimated by using the SEC Staff Bulletin No. 107’s Simplified Method for Estimate Expected Term. The risk-free interest rate is estimated using comparable published federal funds rates.   Common Stock Purchase Warrants and Other Derivative Financial Instruments   We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40, Contracts in Entity’s Own Equity. We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.   Net Income (Loss) per Share   The Company accounts for and discloses net income (loss) per common share in accordance with FASB ASC Topic 260, Earnings Per Share. Basic income (loss) per common share is computed by dividing income (loss) attributable to common stockholders by the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common stock for all potential dilutive common shares outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants and the conversion of convertible notes payable.   The following table sets forth the number of potential common shares excluded from the calculations of net loss per diluted share because their inclusion would be anti-dilutive (in thousands):  Schedule of Anti-dilutive Securities Excluded from Calculations of Net Loss Per Share     2024     2023       June 30,       2024     2023   Outstanding options to purchase common stock     555       350   Warrants to purchase common stock     -       13   Total     555       363       Recent Accounting Pronouncements   Authoritative guidance issued by the FASB (including technical corrections to the ASC), the American Institute of Certified Public Accountants, and the SEC did not, or are not expected to, have a material impact on the Company’s consolidated financial statements and related disclosures.

v3.24.2.u1

Property and Equipment	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment	3. Property and Equipment   Property and equipment are recorded at cost and depreciated over the estimated useful lives of the underlying assets (three to five years) using the straight-line method. As of June 30, 2024, and December 31, 2023, property and equipment consists of (table in thousands):  Schedule of Property and Equipment     June 30, 2024     December 31, 2023   Lab equipment (excluding equipment under finance leases)   $ 1,765     $ 1,757   Finance lease right-of-use lab equipment obtained in exchange for finance lease liabilities, net     162       162   Computer and office equipment     155       155   Total property and equipment     2,082       2,074   Less: accumulated depreciation and amortization     (1,871 )     (1,803 ) Property and equipment, net   $ 211     $ 271     Total depreciation and amortization expense were approximately $68,000 and $96,000 for the six months ended June 30, 2024 and 2023, which includes amortization expense of $0 and $7,164 for the six months ended June 30, 2024 and 2023, respectively, related to assets under finance lease. For additional finance leases information, refer to Note 9 – Commitments and Contingencies.

v3.24.2.u1

Accounts Payable and Accrued Expenses	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	4. Accounts Payable and Accrued Expenses   Accounts payable and accrued expenses consisted of the following (in thousands) as of:  Schedule of Accounts Payable and Accrued Expenses     June 30, 2024     December 31, 2023   Accounts payable   $ 1,743     $ 1,222   Accrued compensation     156       109   Accrued other expenses     504       1,691   Total accounts payable and accrued expenses   $ 2,403     $ 3,022     Accounts payable and accrued other expenses contain unpaid general and administrative expenses and costs related to research and development that have been billed and estimated unbilled, respectively, as of period-end.

v3.24.2.u1

Common Stock and Preferred Stock	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Common Stock and Preferred Stock	5. Common Stock and Preferred Stock   As of June 30, 2024, the Company has authorized 100,000,000 shares of common stock, $0.001 par value per share, and 1,000,000 shares of preferred stock, $0.001 par value per share.   On June 27, 2024, the Company, following approval of the Company’s stockholders at the 2024 Annual Meeting of Stockholders filed an amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Amendment”) to decrease the number of shares of authorized capital stock of the Company from 155,000,000 shares of capital stock, consisting of 150,000,000 shares of common stock and 5,000,000 shares of preferred stock, to 101,000,000 shares of capital stock consisting of 100,000,000 shares of common stock and 1,000,000 shares of preferred stock. The Amendment became effective on June 27, 2024.   The Company had 10,174,000 shares of common stock and no shares of preferred stock issued and outstanding as of June 30, 2024, and December 31, 2023.   The holders of common stock are entitled to one vote for each share of common stock held.

v3.24.2.u1

Stock Based Awards	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock Based Awards	6. Stock Based Awards   Equity Incentive Plans   The Company adopted an equity incentive plan in 2015 (the “2015 Plan”) under which 833,333 shares of common stock have been reserved for issuance to employees, and non-employee directors and consultants of the Company. Recipients of incentive stock options granted under the 2015 Plan shall be eligible to purchase shares of the Company’s common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The maximum term of options granted under the 2015 Plan is ten years. On June 16, 2021, the Company’s stockholders voted to approve an amendment to the 2015 Plan to increase the number of shares of common stock authorized for issuance under the 2015 Plan from 416,667 to 833,333 shares. As of June 30, 2024, 278,000 shares remain available for future grants under the 2015 Plan.   The following table summarizes stock option transactions for the 2015 Plan, collectively, for the six months ended June 30, 2024 (in thousands, except per share amounts):  Schedule of Stock Option Transactions     Number of Shares Available for Grant     Total Options Outstanding     Weighted Average Exercise Price     Aggregate Intrinsic Value   Balance at December 31, 2023     275       558     $ 10.57     $        -   Exercised     -       -       -       -   Granted     -       -       -       -   Expired     3       (3 )     4.90       -   Balance at June 30, 2024     278       555     $ 10.40     $ -     The Company accounts for share-based awards to employees and nonemployee directors and consultants in accordance with the provisions of ASC 718, Compensation—Stock Compensation., and under the recently issued guidance following FASB’s pronouncement, ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under ASC 718, and applicable updates adopted, share-based awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service, or vesting, period. The Company values its equity awards using the Black-Scholes option pricing model, and accounts for forfeitures when they occur. For the three and six months ended June 30, 2024 and 2023, equity-based compensation expense recorded was approximately 148,000 and $179,000 and $305,000 and $241,000, respectively.   As of June 30, 2024, there was approximately $402,000 of total unrecognized compensation expense related to non-vested stock options that is expected to be recognized over a weighted average period of 0.9 years. For options granted and outstanding, there were 555,000 options outstanding which were fully vested or expected to vest, with an aggregate intrinsic value of $0, a weighted average exercise price of $10.40 and weighted average remaining contractual term of 7.7 years at June 30, 2024. For vested and exercisable options, outstanding shares totaled 307,000, with an aggregate intrinsic value of $0. These options had a weighted average exercise price of $16.33 per share and a weighted-average remaining contractual term of 6.8 years at June 30, 2024.   The aggregate intrinsic value of outstanding and exercisable options at June 30, 2024 was calculated based on the closing price of the Company’s common stock as reported on The Nasdaq Capital Market on June 30, 2024 of $2.33 per share less the exercise price of the options. The aggregate intrinsic value is calculated based on the positive difference between the closing fair market value of the Company’s common stock and the exercise price of the underlying options.     Common Stock Reserved for Future Issuance   The following table presents information concerning common stock available for future issuance (in thousands) as of:  Schedule of Common Stock Reserved for Future Issuance     June 30, 2024     June 30, 2023   Stock options issued and outstanding     555       350   Shares authorized for future option grants     278       484   Warrants outstanding     -       13   Total     833       847

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Warrants	6 Months Ended
	Jun. 30, 2024
Warrants
Warrants	7. Warrants   The following is a summary of activity in the number of warrants classified as liabilities outstanding to purchase the Company’s common stock for the six months ended June 30, 2024 (in thousands):  Schedule of Warrants Activity     January 2014 Warrants   Outstanding, December 31, 2023     11   Exercised     -   Granted     -   Expired     (11 ) Outstanding, June 30, 2024     -   Expiration date:     1/16/2024

v3.24.2.u1

Licenses and Collaborations	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Licenses and Collaborations	8. Licenses and Collaborations   Merck Sharp & Dohme Corp.   On January 2, 2019, the Company entered into an Exclusive License and Research Collaboration Agreement (the “Collaboration Agreement”) with Merck Sharp & Dohme LLC (“Merck”) to discover and develop certain proprietary influenza A/B antiviral agents. Under the terms of the Collaboration Agreement, Merck funded research and development for the program, including clinical development, and was responsible for worldwide commercialization of any products derived from the collaboration. Under the Collaboration Agreement Cocrystal was eligible to receive payments related to designated development, regulatory and sales milestones with the potential to earn up to $156,000,000, as well as royalties on product sales. The Collaboration Agreement provided that Merck may terminate the Collaboration Agreement at any time prior to the first commercial sale of the first product developed under the Collaboration Agreement, in its sole discretion, without cause.   On December 15, 2023, the Company received written notice from Merck of Merck’s election to terminate the Collaboration Agreement. The termination of the Collaboration Agreement took effect on March 14, 2024. According to Merck’s termination notice, Merck determined there were no existing conditions to continue the collaboration. The termination resulted from the inability to develop the compounds to meet a specific aspect of Merck’s program. The pending patent applications on compounds covered by the Collaboration Agreement and previously filed by Merck on behalf of both companies remain in place.   Kansas State University Research Foundation   Cocrystal entered into two License Agreement with Kansas State University Research Foundation (the “Foundation”) on February 18, 2020 to further develop certain proprietary broad-spectrum antiviral compounds for the treatment of norovirus and coronavirus infections.     On February 28, 2024, the Company provided notice to the Foundation of the Company’s election to terminate the 2020 License Agreements. The terminations, which were made due to the Company’s determination that further development efforts under the License Agreements would be futile, took effect on March 29, 2024.

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Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies   Commitments   In the ordinary course of business, the Company enters into non-cancellable leases to purchase equipment and for its facilities, including related party leases (see Note 10 – Transactions with Related Parties). Leases are accounted for as operating leases or finance leases, in accordance with ASC 842, Leases.   Operating Leases   The Company leases office space in Miami, Florida and research and development laboratory space in Bothell, Washington under operating leases that expire on August 31, 2024 and January 31, 2029, respectively. For operating leases, the weighted average discount rate is 6.0% and the weighted average remaining lease term is 5.9 years.   The following table summarizes the Company’s maturities of operating lease liabilities, by year and in aggregate, as of June 30, 2024 (table in thousands):  Schedule of Maturities of Operating Lease Liabilities           2024 (excluding the six months ended June 30, 2024)   $ 178   2025     344   2026     355   2027     365   2028     376   2029 and thereafter     513   Total operating lease payments     2,131   Less: present value discount     (351 ) Total operating lease liabilities   $ 1,780     As of June 30, 2024, the total operating lease liability of $251,000 is classified as a current operating lease liability.   The operating lease liabilities summarized above do not include variable common area maintenance (the “CAM”) charges, which are contractual liabilities under the Company’s Bothell, Washington lease. CAM charges for the Bothell, Washington facility are calculated annually based on actual common expenses for the building incurred by the lessor and proportionately billed to tenants based on leased square footage. For the six months ended June 30, 2024 and 2023, approximately $95,000 and $54,000 of CAM was included in general and administrative operating expenses on the condensed consolidated statements of operations, respectively.   The minimum lease payments above include the amounts that would be paid if the Company maintains its Bothell lease for the five-year term, starting February 2024.   On September 1, 2021, the Company entered into a three-year lease extension with a limited liability company controlled by Dr. Phillip Frost, a director and a principal stockholder of the Company. On an annualized basis, straight-line rent expense is approximately $62,000, including fixed and estimable fees and taxes. The Company intends to renew the lease following expiration in 2024.   On September 21, 2023, the Company amended the lease agreement with a North Creek Tec LLC, to expand its laboratory facility in Bothell – WA, with additional 6,000 sq ft for a period of 5 years that expires on January 31, 2029, with monthly lease payments under this lease totaling $660,000. In addition, the Company amended the lease agreement to extend the original laboratory facility for an additional 7 years with monthly lease payments under this lease totaling $1,498,000. Through January 2031, the minimum lease payment combined totals approximately $380,000 annually.     For the six months ended June 30, 2024 and 2023, operating lease expense, excluding short-term leases, finance leases and CAM charges, totaled approximately $189,000 and $116,000, respectively, of which $31,000 and $26,000 for each period was to a related party.   Finance Leases   In April 2020, the Company entered into lease agreements to acquire lab equipment with 36 monthly payments of $2,000 payable through March 31, 2023. The final payment under the lease agreement was made in March 2023 and the title of the equipment has transferred title to the Company.   The leased lab equipment is depreciable over five years and is presented net of accumulated depreciation on the condensed consolidated balance sheets under property and equipment. As of December 31, 2023, total right-of-use assets lab equipment exchanged for finance lease liabilities was $162,000 and accumulated depreciation for lab equipment under finance leases was $162,000. The remaining lab equipment under the finance lease terminated on March 31, 2023, and due to the leased equipment’s remaining 25 months of useful life, it was transferred to fixed assets at book value of $32,000 and continues to depreciate.   Phase 2a Clinical Trial   On August 3, 2022 the Company engaged hVIVO, a subsidiary of London-based Open Orphan plc (AIM: ORPH), a rapidly growing specialist contract research organization (“CRO”), to conduct a Phase 2a clinical trial with the Company’s novel, broad-spectrum, orally administered antiviral influenza candidate. The Company prepaid a reservation fee of $1.7 million upon execution of the agreement. As of June 30, 2024 the Company expensed $1.7 million leaving no balance in prepaid and other expenses. In addition, the Company incurred additional costs of $1.7 million on this agreement during the six months ending June 30, 2024.   The total estimated cost of the agreement (including the reservation fee) is approximately $6.9 million.   On May 21, 2024, the Company entered into a new agreement with hVIVO, as a follow-on to CPI-CST-001 Influenza virus challenge study, in which potential resistance to CC-42344 antiviral compound will be genotypically characterized. The Company incurred $45,000 on this agreement for three months ended June 30, 2024. The total estimated cost of this agreement is approximately $227,000.   Contingencies   From time to time, the Company is a party to, or otherwise involved in, legal proceedings arising in the normal course of business. As of the date of this report, except as described below, the Company is not aware of any proceedings, threatened or pending, against it which, if determined adversely, would have a material effect on its business, results of operations, cash flows or financial position.

v3.24.2.u1

Transactions with Related Parties	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
Transactions with Related Parties	10. Transactions with Related Parties   On September 1, 2021, the Company entered into a three-year lease extension with a limited liability company controlled by Dr. Phillip Frost, a director and a principal stockholder of the Company. For the six months ended June 30, 2024 and 2023, rent expense was approximately $31,000 for each period, including fixed and estimable fees and taxes. The Company intends to renew the lease following expiration in 2024.   On April 4, 2023, the Company entered into a Securities Purchase Agreement with two accredited investors (the “Purchasers”) whereby the Purchasers agreed to purchase a total of 2,030,458 shares of unregistered common stock at a price of $1.97 per share for a total purchase price of $4,000,000 in two equal $2,000,000 investments. The Purchasers were an entity controlled by a director and another investor who subsequently joined the Company’s Board of Directors.

v3.24.2.u1

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation   The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X set forth by the Securities and Exchange Commission (“SEC”). They do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the interim periods presented are not necessarily indicative of the results of operations for the entire fiscal year. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2023 filed on March 28, 2024 (“Annual Report”).
Principles of Consolidation	Principles of Consolidation   The consolidated financial statements include the accounts of Cocrystal Pharma, Inc. and its wholly owned subsidiaries: Cocrystal Discovery, Inc., Cocrystal Pharma Australia Pty Ltd. (“Cocrystal Australia”), RFS Pharma, LLC and Cocrystal Merger Sub, Inc. Intercompany transactions and balances have been eliminated. Cocrystal Discovery, Inc. conducts all of the Company’s research and development activities and oversees ongoing clinical trials conducted by others. Cocrystal Australia operates clinical trials in Australia. The other two subsidiaries are inactive.
Segments	Segments   The Company operates in only one segment. Management uses cash flows as the primary measure to manage its business and does not segment its business for internal reporting or decision-making.
Use of Estimates	Use of Estimates   Preparation of the Company’s consolidated financial statements in conformance with U.S. GAAP requires the Company’s management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The significant estimates in the Company’s consolidated financial statements relate to the valuation of equity awards and warrant liabilities, recoverability of deferred tax assets, estimated tax credit receivable and estimated useful lives of fixed assets. The Company bases estimates and assumptions on historical experience, when available, and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis, and its actual results may differ from estimates made under different assumptions or conditions.
Concentrations of Credit Risk	Concentrations of Credit Risk   Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash deposited in accounts held at two U.S. financial institutions, which may, at times, exceed federally insured limits of $250,000 for each institution where accounts are held. At June 30, 2024 and December 31, 2023, our primary operating accounts held approximately $7,536,000 and $16,322,000, respectively, and our collateral account balance was $75,000 and $75,000 at a different institution. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risks thereof.
Foreign Currency Transactions	Foreign Currency Transactions   The Company and its subsidiaries use the U.S. dollar as functional currency. Foreign currency transactions are initially measured and recorded in the functional currency using the exchange rate on the date of the transaction. Foreign exchange gains and losses arising from settlement of foreign currency transactions are recognized in profit and loss.   Cocrystal Australia maintains its records in Australian dollars. The monetary assets and liabilities of Cocrystal Australia are remeasured into the functional currency using the closing rate at the end of every reporting period. All nonmonetary assets and liabilities and related profit and loss accounts are remeasured into the functional currency using the historical exchange rates. Profit and loss accounts, other than those that are remeasured using the historical exchange rates, are remeasured into the functional currency using the average exchange rate for the period. Foreign exchange gains and losses arising from the remeasurement into the functional currency is recognized in profit and loss.
Fair Value Measurements	Fair Value Measurements   FASB Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:     Level 1 — quoted prices in active markets for identical assets or liabilities.       Level 2 — other significant observable inputs for the assets or liabilities through corroboration with market data at the measurement date.       Level 3 — significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.     At June 30, 2024 and December 31, 2023, the carrying amounts of financial assets and liabilities, such as cash, other current assets, and accounts payable and accrued expenses approximate their fair values due to their short-term nature. The carrying values of leases payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates.
Long-Lived Assets	Long-Lived Assets   The Company regularly reviews the carrying value and estimated lives of its long-lived assets, including property and equipment, to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. The determinants used for this evaluation include management’s estimate of the asset’s ability to generate positive income from operations and positive cash flow in future periods as well as the strategic significance of the assets to the Company’s business objective. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount over the asset’s fair value.
Research and Development Expenses	Research and Development Expenses   Research and development costs consist primarily of fees paid to consultants and outside service providers, and other expenses relating to the acquisition, design, development and testing of the Company’s clinical products. All research and development costs are expensed as incurred. Research and development costs are presented net of tax credits.   The Company’s Australian subsidiary is entitled to receive government assistance in the form of refundable and non-refundable research and development tax credits (“Refundable Tax Credits”) from the federal and provincial taxation authorities, based on qualifying expenditures incurred during the fiscal year. The Refundable Tax Credits are from the provincial taxation authorities and are not dependent on its ongoing tax status or tax position and accordingly are not considered part of income taxes. The Company records Refundable Tax Credits as a reduction of research and development expenses when the Company can reasonably estimate the amounts and it is more likely than not, they will be received. As of December 31, 2023, balance of Refundable Tax Credits was approximately $786,000. The Company estimated and accrued Refundable Tax Credits for the six months ended June 30, 2024 of approximately $264,000, resulting in a total balance of Refundable Tax Credits receivable of approximately $1,050,000 as of the period then ended.
Income Taxes	Income Taxes   The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered or settled. Realization of deferred tax assets is dependent upon future taxable income. A valuation allowance is recognized if it is more likely than not that some portion or all of a deferred tax asset will not be realized based on the weight of available evidence, including expected future earnings. The Company recognizes an uncertain tax position in its financial statements when it concludes that a tax position is more likely than not to be sustained upon examination based solely on its technical merits. Only after a tax position passes the first step of recognition will measurement be required. Under the measurement step, the tax benefit is measured as the largest amount of benefit that is more likely than not to be realized upon effective settlement. This is determined on a cumulative probability basis. The full impact of any change in recognition or measurement is reflected in the period in which such change occurs. The Company elects to accrue any interest or penalties related to income taxes as part of its income tax expense.     As of June 30, 2024, the Company assessed its income tax expense based on its projected future taxable income for the year ending December 31, 2024 and therefore recorded no amount for income tax expense for the six months ended June 30, 2024. In addition, the Company has significant deferred tax assets available to offset income tax expense due to net operating loss carry forwards which are currently subject to a full valuation allowance based on the Company’s assessment of future taxable income. Refer to our Annual Report on Form 10-K for the year ended December 31, 2023 for more information.
Stock-Based Compensation	Stock-Based Compensation   The Company recognizes compensation expense using a fair value-based method for costs related to stock-based payments, including stock options. The fair value of options awarded to employees is measured on the date of grant using the Black-Scholes option pricing model and is recognized as expense over the requisite service period on a straight-line basis.   Use of the Black-Scholes option pricing model requires the input of subjective assumptions including expected volatility, expected term, and a risk-free interest rate. The Company estimates volatility using a blend of its own historical stock price volatility as well as that of market comparable entities since the Company’s common stock has limited trading history and limited observable volatility of its own. The expected term of the options is estimated by using the SEC Staff Bulletin No. 107’s Simplified Method for Estimate Expected Term. The risk-free interest rate is estimated using comparable published federal funds rates.
Common Stock Purchase Warrants and Other Derivative Financial Instruments	Common Stock Purchase Warrants and Other Derivative Financial Instruments   We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40, Contracts in Entity’s Own Equity. We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.
Net Income (Loss) per Share	Net Income (Loss) per Share   The Company accounts for and discloses net income (loss) per common share in accordance with FASB ASC Topic 260, Earnings Per Share. Basic income (loss) per common share is computed by dividing income (loss) attributable to common stockholders by the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common stock for all potential dilutive common shares outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants and the conversion of convertible notes payable.   The following table sets forth the number of potential common shares excluded from the calculations of net loss per diluted share because their inclusion would be anti-dilutive (in thousands):  Schedule of Anti-dilutive Securities Excluded from Calculations of Net Loss Per Share     2024     2023       June 30,       2024     2023   Outstanding options to purchase common stock     555       350   Warrants to purchase common stock     -       13   Total     555       363
Recent Accounting Pronouncements	Recent Accounting Pronouncements   Authoritative guidance issued by the FASB (including technical corrections to the ASC), the American Institute of Certified Public Accountants, and the SEC did not, or are not expected to, have a material impact on the Company’s consolidated financial statements and related disclosures.

v3.24.2.u1

Basis of Presentation and Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Schedule of Anti-dilutive Securities Excluded from Calculations of Net Loss Per Share	The following table sets forth the number of potential common shares excluded from the calculations of net loss per diluted share because their inclusion would be anti-dilutive (in thousands):  Schedule of Anti-dilutive Securities Excluded from Calculations of Net Loss Per Share     2024     2023       June 30,       2024     2023   Outstanding options to purchase common stock     555       350   Warrants to purchase common stock     -       13   Total     555       363

v3.24.2.u1

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment are recorded at cost and depreciated over the estimated useful lives of the underlying assets (three to five years) using the straight-line method. As of June 30, 2024, and December 31, 2023, property and equipment consists of (table in thousands):  Schedule of Property and Equipment     June 30, 2024     December 31, 2023   Lab equipment (excluding equipment under finance leases)   $ 1,765     $ 1,757   Finance lease right-of-use lab equipment obtained in exchange for finance lease liabilities, net     162       162   Computer and office equipment     155       155   Total property and equipment     2,082       2,074   Less: accumulated depreciation and amortization     (1,871 )     (1,803 ) Property and equipment, net   $ 211     $ 271

v3.24.2.u1

Accounts Payable and Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consisted of the following (in thousands) as of:  Schedule of Accounts Payable and Accrued Expenses     June 30, 2024     December 31, 2023   Accounts payable   $ 1,743     $ 1,222   Accrued compensation     156       109   Accrued other expenses     504       1,691   Total accounts payable and accrued expenses   $ 2,403     $ 3,022

v3.24.2.u1

Stock Based Awards (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Option Transactions	The following table summarizes stock option transactions for the 2015 Plan, collectively, for the six months ended June 30, 2024 (in thousands, except per share amounts):  Schedule of Stock Option Transactions     Number of Shares Available for Grant     Total Options Outstanding     Weighted Average Exercise Price     Aggregate Intrinsic Value   Balance at December 31, 2023     275       558     $ 10.57     $        -   Exercised     -       -       -       -   Granted     -       -       -       -   Expired     3       (3 )     4.90       -   Balance at June 30, 2024     278       555     $ 10.40     $ -
Schedule of Common Stock Reserved for Future Issuance	The following table presents information concerning common stock available for future issuance (in thousands) as of:  Schedule of Common Stock Reserved for Future Issuance     June 30, 2024     June 30, 2023   Stock options issued and outstanding     555       350   Shares authorized for future option grants     278       484   Warrants outstanding     -       13   Total     833       847

v3.24.2.u1

Warrants (Tables)	6 Months Ended
	Jun. 30, 2024
Warrants
Schedule of Warrants Activity	The following is a summary of activity in the number of warrants classified as liabilities outstanding to purchase the Company’s common stock for the six months ended June 30, 2024 (in thousands):  Schedule of Warrants Activity     January 2014 Warrants   Outstanding, December 31, 2023     11   Exercised     -   Granted     -   Expired     (11 ) Outstanding, June 30, 2024     -   Expiration date:     1/16/2024

v3.24.2.u1

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Maturities of Operating Lease Liabilities	The following table summarizes the Company’s maturities of operating lease liabilities, by year and in aggregate, as of June 30, 2024 (table in thousands):  Schedule of Maturities of Operating Lease Liabilities           2024 (excluding the six months ended June 30, 2024)   $ 178   2025     344   2026     355   2027     365   2028     376   2029 and thereafter     513   Total operating lease payments     2,131   Less: present value discount     (351 ) Total operating lease liabilities   $ 1,780

v3.24.2.u1

Organization and Business (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income loss	$ 5,343,000	$ 3,956,000	$ 4,166,000	$ 5,189,000	$ 9,299,000	$ 9,355,000
Net cash provided by used in operating activities					8,202,000	$ 8,659,000
Cash	$ 18,143,000				$ 18,143,000		$ 26,353,000

v3.24.2.u1

Schedule of Anti-dilutive Securities Excluded from Calculations of Net Loss Per Share (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	555	363
Outstanding Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	555	350
Warrants to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total		13

v3.24.2.u1

Basis of Presentation and Significant Accounting Policies (Details Narrative)	6 Months Ended
	Jun. 30, 2024 USD ($) Segment	Dec. 31, 2023 USD ($)
Accounting Policies [Abstract]
Number of operating segments | Segment	1
Cash FDIC insured amount	$ 250,000
Cash	7,536,000	$ 16,322,000
Collateral account balance	75,000	75,000
Refundable tax credit receivable	1,050,000	$ 786,000
Refundable tax credits accrued	264,000
Income tax expense	$ 0

v3.24.2.u1

Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,082	$ 2,074
Less: accumulated depreciation and amortization	(1,871)	(1,803)
Property and equipment, net	211	271
Lab Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,765	1,757
Finance Lease Right-of-use Lab Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	162	162
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 155	$ 155

v3.24.2.u1

Property and Equipment (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 68,000	$ 96,000
Finance Lease Right-of-use Lab Equipment [Member]
Property, Plant and Equipment [Line Items]
Amortization expense	$ 0	$ 7,164
Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	5 years

v3.24.2.u1

Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accounts payable	$ 1,743	$ 1,222
Accrued compensation	156	109
Accrued other expenses	504	1,691
Total accounts payable and accrued expenses	$ 2,403	$ 3,022

v3.24.2.u1

Common Stock and Preferred Stock (Details Narrative) - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 27, 2024	Dec. 31, 2023
Equity [Abstract]
Common stock, shares authorized	100,000,000	150,000,000	150,000,000
Common stock, par value	$ 0.001		$ 0.001
Preferred stock, shares authorized	1,000,000	5,000,000
Preferred stock, par value	$ 0.001
Capital stock, shares authorized	101,000,000	155,000,000
Common stock, shares issued	10,174,000		10,174,000
Common stock, shares outstanding	10,174,000		10,174,000
Preferred stock, shares issued	0		0
Preferred stock, shares outstanding	0		0
Common stock, voting rights description	The holders of common stock are entitled to one vote for each share of common stock held.

v3.24.2.u1

Schedule of Stock Option Transactions (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Option Indexed to Issuer's Equity [Line Items]
Number of Shares Available for Grant, Ending balance	278
Total Options Outstanding, Ending balance	555
Share-Based Payment Arrangement, Option [Member]
Option Indexed to Issuer's Equity [Line Items]
Number of Shares Available for Grant, Beginning balance	275
Total Options Outstanding, Beginning balance	558
Weighted Average Exercise Price Outstanding, Beginning balance | $ / shares	$ 10.57
Aggregate Intrinsic Value, Beginning balance | $
Number of Shares Available for Grant, Exercised
Total Options Outstanding, Exercised
Weighted Average Exercise Price, Exercised | $ / shares
Aggregate Intrinsic Value, Exercised | $
Number of Shares Available for Grant, Granted
Total Options Outstanding, Granted
Weighted Average Exercise Price, Granted | $ / shares
Aggregate Intrinsic Value, Granted | $ / shares
Number of Shares Available for Grant, Expired	3
Total Options Outstanding, Expired	(3)
Weighted Average Exercise Price, Expired | $ / shares	$ 4.90
Aggregate Intrinsic Value, Expired | $
Number of Shares Available for Grant, Ending balance	278
Total Options Outstanding, Ending balance	555
Weighted Average Exercise Price, Ending balance | $ / shares	$ 10.40
Aggregate Intrinsic Value, Ending balance | $

v3.24.2.u1

Schedule of Common Stock Reserved for Future Issuance (Details) - shares shares in Thousands	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock options issued and outstanding	555	350
Shares authorized for future option grants	278	484
Warrants outstanding		13
Total	833	847

v3.24.2.u1

Stock Based Awards (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 16, 2021	Jun. 15, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for issuance	833,000	847,000	833,000	847,000
Shares available for grant	278,000	484,000	278,000	484,000
Equity-based compensation expense	$ 148,000	$ 179,000	$ 305,000	$ 241,000
Unrecognized compensation expense	$ 402,000		$ 402,000
Unrecognized compensation expense, weighted average period			10 months 24 days
Options vested or expected to vest, outstanding shares	555,000		555,000
Options vested or expected to vest, aggregate intrinsic value	$ 0		$ 0
Options vested or expected to vest, weighted average exercise price	$ 10.40		$ 10.40
Options vested or expected to vest, weighted average remaining contractual term			7 years 8 months 12 days
Options vested and exercisable, outstanding shares	307,000		307,000
Options vested and exercisable, aggregate intrinsic value	$ 0		$ 0
Options vested and exercisable, weighted-average exercise price	$ 16.33		$ 16.33
Options vested and exercisable, weighted average remaining contractual term			6 years 9 months 18 days
Common stock closing price per share	$ 2.33		$ 2.33
2015 Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for issuance	833,333		833,333
Maximum term of options granted			10 years
Common stock authorized for issuance					833,333	416,667
Shares available for grant	278,000		278,000

v3.24.2.u1

Schedule of Warrants Activity (Details) - January 2014 Warrants [Member] - Warrant Liabilities [Member] shares in Thousands	6 Months Ended
	Jun. 30, 2024 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of warrants outstanding, beginning	11
Number of warrants exercised
Number of warrants granted
Number of warrants expired	(11)
Number of warrants outstanding, ending
Warrant expiration date	Jan. 16, 2024

v3.24.2.u1

Licenses and Collaborations (Details Narrative)	Jan. 02, 2019 USD ($)
Collaboration Agreement [Member] | Maximum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty received on sales	$ 156,000,000

v3.24.2.u1

Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024 (excluding the six months ended June 30, 2024)	$ 178
2025	344
2026	355
2027	365
2028	376
2029 and thereafter	513
Total operating lease payments	2,131
Less: present value discount	(351)
Total operating lease liabilities	$ 1,780

v3.24.2.u1

Commitments and Contingencies (Details Narrative)			1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 21, 2023 USD ($) ft²	Sep. 01, 2021 USD ($)	Apr. 30, 2020 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	May 21, 2024 USD ($)	Mar. 31, 2023 USD ($)	Aug. 03, 2022 USD ($)
Product Liability Contingency [Line Items]
Operating lease, weighted average discount rate				6.00%		6.00%
Operating lease, weighted average remaining lease term				5 years 10 months 24 days		5 years 10 months 24 days
Current operating lease liability				$ 251,000		$ 251,000		$ 240,000
Operating lease expense						189,000	$ 116,000
Clinical trial expenses				4,308,000	$ 2,801,000	7,258,000	6,708,000
Lab Equipment [Member]
Product Liability Contingency [Line Items]
Estimated useful life										25 months
Fixed assets book value										$ 32,000
Related Party [Member]
Product Liability Contingency [Line Items]
Operating lease expense						31,000	26,000
Lease Agreement [Member] | Lab Equipment [Member]
Product Liability Contingency [Line Items]
Lease expiration date			Mar. 31, 2023
Finance lease term			36 months
Payments for rent			$ 2,000
Estimated useful life			5 years
Right-of-use asset obtained in exchange for finance lease liability								162,000
Finance lease, accumulated depreciation								$ 162,000
Phase 2a Clinical Trial [Member]
Product Liability Contingency [Line Items]
Prepaid reservation fee											$ 1,700,000
Clinical trial expenses						1,700,000
Prepaid and other expenses				0		0
Additional costs						1,700,000
Estimated agreement cost				6,900,000		6,900,000
Agreement [Member] | hVIVO [Member]
Product Liability Contingency [Line Items]
Additional costs				$ 45,000
Estimated agreement cost									$ 227,000
Dr. Phillip Frost [Member]
Product Liability Contingency [Line Items]
Rent expense		$ 62,000
Payments for rent						31,000	31,000
North Creek Tec LLC [Member]
Product Liability Contingency [Line Items]
Operating lease payments	$ 380,000
North Creek Tec LLC [Member] | Amended Lease Agreement for Expansion [Member]
Product Liability Contingency [Line Items]
Lease expiration date	Jan. 31, 2029
Land subject to leases | ft²	6,000
Operating lease term	5 years
Operating lease payments	$ 660,000
North Creek Tec LLC [Member] | Amended Lease Agreement for Extension [Member]
Product Liability Contingency [Line Items]
Operating lease term	7 years
Operating lease payments	$ 1,498,000
Lease expiration period	January 2031
General and Administrative Expense [Member]
Product Liability Contingency [Line Items]
Common area maintenance charges						$ 95,000	$ 54,000
Miami, Florida [Member]
Product Liability Contingency [Line Items]
Lease expiration date						Aug. 31, 2024
Bothell, Washington [Member]
Product Liability Contingency [Line Items]
Lease expiration date						Jan. 31, 2029

v3.24.2.u1

Transactions with Related Parties (Details Narrative) - USD ($)			6 Months Ended
	Apr. 04, 2023	Sep. 01, 2021	Jun. 30, 2024	Jun. 30, 2023
Securities Purchase Agreement [Member]
Unregistered common stock, shares	2,030,458
Unregistered common stock, share price	$ 1.97
Unregistered common stock, purchase price	$ 4,000,000
Unregistered common stock, investments	$ 2,000,000
Dr. Phillip Frost [Member]
Lease extension description		three-year lease extension
Rent expenses			$ 31,000	$ 31,000

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