Sonnet BioTherapeutics Holdings Inc. (SONN) reports earnings

The report was filed on February 13, 2025

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Sonnet BioTherapeutics Holdings Inc. (SONN-1.03%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.

The filing includes financial statements for the quarter, showing collaboration revenue of $1,000,000, compared to $18,626 in the same quarter of the previous year. This increase is attributed to the Alkem Agreement.

Research and development expenses for the quarter were $1,886,076, up from $644,042 in the previous year, primarily due to the cancellation of accrued but unpaid bonuses in the prior period.

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General and administrative expenses increased to $1,963,346 from $653,455, largely due to higher legal and consulting fees related to the Alkem Agreement.

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The company reported a net loss of $3,160,706 for the quarter, compared to $1,168,509 in the previous year, with the increase attributed to higher operating expenses.

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Cash used in operating activities was $2,910,246, while cash provided by financing activities was $7,622,293, resulting in a net increase in cash of $4,712,047.

Sonnet had cash of $4,861,503 as of December 31, 2024. The company anticipates the need for additional financing to fund its operations beyond July 2025.

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The filing also details various financial agreements, including a committed equity facility with Chardan Capital Markets, LLC, and a licensing agreement with Alkem Laboratories Limited.

Sonnet does not anticipate immediate revenue from product sales and expects to continue incurring significant expenses related to research and development.

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The company continues to focus on advancing its lead clinical programs, including SON-1010 for solid tumors and SON-080 for peripheral neuropathy.

Sonnet's management team has undergone recent changes, with the resignation of its Chief Financial Officer and the appointment of a new Chief Business Officer.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sonnet BioTherapeutics Holdings Inc. quarterly 10-Q report dated February 13, 2025. To report an error, please email earnings@qz.com.