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  Do you know his background prior to him coming to you?  My little girl, also named CoCo, was a puppymill dog.  She was caged all her life and never socialized.  She behaves very similar to what you described.  Her activity level is low, not a big eater or drinker, though she has figured out that she loves treats.  She kind of just sits against the wall and observes or sleeps.  She has gradually broken out of her shell and is starting to be more and more social and somewhat playful (though she really isn't sure how to play).  She loves when I sit in the floor with her so I definitely think that suggestion is a great idea.  
 Also, has he been vet checked to ensure his lethargy/ lack of appetite isn't caused by something else?
 
 Good luck!!
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