Decoy Therapeutics Inc. (DCOY, formerly Salarius Pharmaceuticals) is a pre-clinical stage biotech with no revenue-generating products, reporting as of March 31, 2026 following its November 2025 merger with Legacy Decoy. Under a liquidation lens, recovery to equity is thin and deteriorating rapidly. Total assets are $8.4M against total liabilities of $4.5M, yielding book equity of $3.9M. However, applying standard liquidation haircuts collapses that figure materially: $7.8M in cash and equivalents recovers at 100%, but $3.0M of that is restricted under a Gates Foundation Grant Agreement and unavailable for general creditor settlement or equity distribution without satisfying grant conditions. Prepaid expenses ($0.5M) recover at low rates; PP&E ($36K) is negligible. Intangibles and pipeline IP carry zero recovery value under the liquidation lens. The firm's MFFAIS-derived liquidation value is $3.3M, consistent with a near-cash-only recovery scenario. The liability stack is entirely current ($4.5M), dominated by deferred revenue of $3.2M (the Gates Foundation grant obligation), accounts payable of $0.9M, and accrued liabilities that declined QoQ as the company paid down balances. The $3.2M deferred revenue is a soft liability in the sense that it represents an obligation to spend grant funds for a specified purpose, not cash owed to a creditor, but it constrains fungible cash. Net operating cash burn was $2.9M in Q1 2026 versus $1.2M in Q1 2025, a 145% increase driven by the post-merger IMP3ACT platform spend and post-acquisition overhead. At this burn rate, the company's stated runway of 'into late 2026' implies approximately two additional quarters of operating capacity from the March 31 balance sheet, exclusive of restricted cash. No financing activities occurred in Q1 2026. The company has 932,991 outstanding warrants with a weighted average exercise price of $26.06, subject to anti-takeover provisions that require any successor entity to assume warrant obligations, imposing a structural encumbrance on any fundamental transaction. Accumulated deficit stands at $96.7M. The filing discusses the Gates Foundation restricted cash constraint in MD&A but does not separately tag restricted cash as a distinct balance sheet line in XBRL; the $3.0M figure is embedded within CashAndCashEquivalentsAtCarryingValue per the tag context. The prior filing (10-K for December 31, 2025) provides the comparison baseline; balance sheet structure is materially similar with liabilities still entirely current, confirming no long-term debt remains following extinguishment of Legacy Decoy founder notes at the November 2025 merger closing.
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