Recent developments include the completion of a merger with Legacy Decoy, Nasdaq compliance actions including reverse stock splits, a public offering raising approximately $6.3 million, and progress in drug development programs supported by non-dilutive funding.

• Decoy Therapeutics completed a merger with Legacy Decoy in November 2025, resulting in Legacy Decoy becoming a wholly owned subsidiary and the combined company changing its name to Decoy Therapeutics Inc. in January 2026 [S1].
• The company conducted a public offering in November 2025, raising net proceeds of approximately $6.3 million through the sale of common stock and warrants [S1].
• To regain Nasdaq compliance with the minimum bid price requirement, the company completed a 1-for-15 reverse stock split in August 2025 and a 1-for-12 reverse stock split in March 2026, subsequently achieving compliance [N2][N4][N3][S1].
• Management changes accompanied the merger, including appointment of a new CEO, Chief Scientific Officer, and Chief Business Officer [S1].
• The lead pan-Coronavirus antiviral program continues to advance, supported by non-dilutive funding from The Gates Foundation and others, with plans to file an IND application in the first half of 2027 [S1][N1].
• The legacy small molecule program seclidemstat (SP-2577) clinical trial enrollment ended in early 2026, with strategic alternatives including potential out-licensing being considered [S1][N7].
• The company maintains a small workforce of 11 full-time employees and contractors, supported by a scientific advisory board [S1].

Decoy Therapeutics' innovative IMP 3 ACT™ platform combines AI and rapid synthesis to accelerate peptide conjugate drug discovery, potentially enabling the development of transformative therapeutics for infectious diseases and oncology. The lead pan-Coronavirus antiviral program, supported by substantial non-dilutive funding, addresses significant unmet needs in immunocompromised populations. The merger with Legacy Decoy integrates complementary small molecule assets and peptide technologies, broadening the therapeutic scope. The company's strategy to build platform manufacturing capabilities and pursue value-enhancing partnerships could facilitate efficient clinical advancement and commercialization. Nasdaq compliance and recent financing provide a foundation for continued development activities.

Decoy Therapeutics remains a pre-clinical stage company with no approved products or revenues, facing substantial financial losses and uncertainty regarding its ability to continue as a going concern without additional capital. The complexity of peptide conjugate therapeutics and regulatory hurdles pose significant development risks. The legacy small molecule program faces challenges with halted enrollment and plans for strategic alternatives, indicating potential setbacks. Reliance on third-party manufacturing and clinical testing introduces operational risks. Market acceptance, competition, and the ability to successfully commercialize novel therapeutics remain unproven, contributing to execution risk.

Decoy Therapeutics' moat is centered on its proprietary IMP 3 ACT™ platform, which integrates AI-driven peptide design with rapid synthesis technology, enabling accelerated drug discovery and optimization of peptide conjugates. This platform aims to create novel therapeutics addressing multiple viral families and oncology targets, potentially offering differentiated value propositions. The company's approach to peptide-based PROTACs and multi-antiviral candidates leverages unique scientific and technological capabilities. Additionally, the company's ability to attract significant non-dilutive funding from prominent organizations such as The Gates Foundation and BARDA supports its development efforts. However, as a pre-clinical stage company with no approved products or revenues, the moat is primarily technology and platform-based, with commercial and regulatory execution yet to be demonstrated.

• Financial Sustainability: The company has substantial doubt about its ability to continue as a going concern due to cash sufficiency for the next 12 months and the need to raise additional capital to fund operations and clinical development.
• Regulatory and Development Risks: As a pre-clinical stage biotech, the company faces significant risks related to clinical trial success, regulatory approvals, and the lengthy, costly drug development process.
• Operational Dependencies: The company relies on third parties for manufacturing, research, and clinical testing, which may not perform satisfactorily or dedicate adequate resources.
• Market and Commercialization Risks: The company has no approved products or revenues and must establish effective sales, marketing, and distribution capabilities, potentially facing competition from established firms.
• Nasdaq Listing Compliance: The company has faced Nasdaq compliance challenges related to minimum bid price requirements, requiring reverse stock splits and regulatory appeals to maintain listing.
• Key Personnel: The company is highly dependent on key executives and scientific personnel; loss of these individuals could adversely impact operations and development.

• Decoy Therapeutics Inc. is a pre-clinical stage biotechnology company focused on peptide conjugate therapeutics developed through its proprietary IMP 3 ACT™ platform, which integrates AI and machine learning with rapid synthesis to engineer novel therapeutics targeting serious unmet medical needs.
• The company aims to build a portfolio initially focused on infectious diseases and oncology, intending to become a fully integrated biopharmaceutical company.
• Decoy Therapeutics was formerly known as Salarius Pharmaceuticals, Inc. until a merger completed in November 2025 with Legacy Decoy, after which the combined entity was renamed Decoy Therapeutics Inc. in January 2026.
• The merger combined complementary drug development approaches, including the IMP 3 ACT platform and legacy small molecule clinical candidates SP-3164 (a targeted protein degrader) and seclidemstat (SP-2577, a targeted protein inhibitor).
• The company has no approved products and has not generated revenue from product sales.
• The lead program is a nasally inhaled pan-Coronavirus prophylactic targeting immunocompromised patients, supported by non-dilutive funding from The Gates Foundation, BARDA, IMI Care Consortium, Google, and NVIDIA.
• Additional programs include a broad respiratory antiviral targeting influenza, COVID-19, and RSV, and exploratory peptide-based PROTAC conjugates leveraging SP-3164.
• The legacy small molecule program SP-2577 is in clinical trials at MD Anderson Cancer Center but with no further enrollment planned; strategic alternatives including out-licensing are being considered.
• The company completed a 1-for-15 reverse stock split in August 2025 and a 1-for-12 reverse stock split in March 2026 to regain Nasdaq compliance.
• Management changes occurred with the merger, including appointment of a new CEO, Chief Scientific Officer, and Chief Business Officer.
• The company raised approximately $6.3 million in net proceeds from a November 2025 public offering including common stock and warrants.
• As of December 31, 2025, the company had cash and equivalents of approximately $10.7 million, current assets of about $11.0 million, current liabilities of $5.2 million, resulting in a current ratio of 2.13 and cash ratio of 2.07.
• The company reported a net loss of approximately $12.5 million and basic and diluted EPS of -129.1 USD per share for the year ended December 31, 2025.
• The company has substantial doubt about its ability to continue as a going concern due to cash sufficiency for the next 12 months and plans to raise additional capital.
• The company relies on third parties for manufacturing and clinical testing and does not own manufacturing facilities.
• The company plans to file an IND application for its lead pan-Coronavirus antiviral in the first half of 2027 and seeks non-dilutive funding and development partners for clinical advancement.
• The company has received significant non-dilutive funding from The Gates Foundation (approximately $4.4 million received with $0.6 million expected in 2026), BARDA, Google, and the IMI-Care Consortium.
• The company is subject to extensive FDA regulation and has no products approved for commercial sale.
• The company is pursuing a commercial model leveraging a small specialized sales force and telehealth partnerships targeting immune-suppressed and orphan patient populations.
• The company completed a merger with Legacy Decoy in November 2025, resulting in Legacy Decoy becoming a wholly owned subsidiary.
• The company has implemented cost-saving measures and is pursuing strategic alternatives for legacy clinical programs.
• The company has maintained Nasdaq listing compliance through reverse stock splits and regulatory appeals.
• The company has 11 full-time employees and a similar number of contractors, with a scientific advisory board of key opinion leaders.
• The company has no current legal proceedings with material adverse effects reported.
• The company’s drug discovery platform enables rapid peptide conjugate synthesis with AI-accelerated design and fast-flow synthesis technology reducing development timelines significantly.