2024 Q1 Form 10-Q Financial Statement
#000149315224006308 Filed on February 14, 2024
Income Statement
Concept | 2024 Q1 | 2023 Q4 | 2022 Q4 |
---|---|---|---|
Revenue | $18.63K | $37.26K | |
YoY Change | -50.0% | -71.3% | |
Cost Of Revenue | |||
YoY Change | |||
Gross Profit | |||
YoY Change | |||
Gross Profit Margin | |||
Selling, General & Admin | $1.701M | $653.5K | $1.904M |
YoY Change | -9.73% | -65.67% | -8.43% |
% of Gross Profit | |||
Research & Development | $2.167M | $644.0K | $3.746M |
YoY Change | -43.21% | -82.81% | -12.19% |
% of Gross Profit | |||
Depreciation & Amortization | $3.210K | $3.211K | $3.211K |
YoY Change | 0.0% | 0.0% | 0.03% |
% of Gross Profit | |||
Operating Expenses | $3.869M | $1.297M | $5.650M |
YoY Change | -32.14% | -77.03% | -10.96% |
Operating Profit | -$3.869M | -$1.279M | -$5.612M |
YoY Change | -31.71% | -77.21% | -9.7% |
Interest Expense | -$93.96K | $110.4K | $70.25K |
YoY Change | 3985.22% | 57.1% | 402.86% |
% of Operating Profit | |||
Other Income/Expense, Net | $4.328M | ||
YoY Change | |||
Pretax Income | $365.4K | -$1.169M | -$5.542M |
YoY Change | -106.45% | -78.92% | -10.62% |
Income Tax | |||
% Of Pretax Income | |||
Net Earnings | $365.4K | -$1.169M | -$5.542M |
YoY Change | -106.45% | -78.92% | -10.62% |
Net Earnings / Revenue | -6273.54% | -14876.24% | |
Basic Earnings Per Share | $0.08 | -$0.31 | -$0.80 |
Diluted Earnings Per Share | $0.07 | -$0.31 | -$0.80 |
COMMON SHARES | |||
Basic Shares Outstanding | 3.070M shares | 3.070M shares | 7.934M shares |
Diluted Shares Outstanding | 4.886M shares | 3.798M shares | 314.5K shares |
Balance Sheet
Concept | 2024 Q1 | 2023 Q4 | 2022 Q4 |
---|---|---|---|
SHORT-TERM ASSETS | |||
Cash & Short-Term Investments | $3.786M | $3.021M | $1.701M |
YoY Change | -66.76% | 77.67% | -91.24% |
Cash & Equivalents | $3.786M | $3.021M | $1.701M |
Short-Term Investments | |||
Other Short-Term Assets | $1.059M | $1.408M | $1.561M |
YoY Change | -12.39% | -9.79% | 32.97% |
Inventory | |||
Prepaid Expenses | |||
Receivables | |||
Other Receivables | |||
Total Short-Term Assets | $5.223M | $4.624M | $4.598M |
YoY Change | -59.96% | 0.56% | -77.66% |
LONG-TERM ASSETS | |||
Property, Plant & Equipment | $26.94K | $30.16K | $43.00K |
YoY Change | -32.28% | -29.87% | -72.58% |
Goodwill | |||
YoY Change | |||
Intangibles | |||
YoY Change | |||
Long-Term Investments | |||
YoY Change | |||
Other Assets | $484.8K | $491.9K | $60.34K |
YoY Change | 715.15% | ||
Total Long-Term Assets | $686.4K | $713.9K | $344.7K |
YoY Change | 158.54% | 107.12% | 119.81% |
TOTAL ASSETS | |||
Total Short-Term Assets | $5.223M | $4.624M | $4.598M |
Total Long-Term Assets | $686.4K | $713.9K | $344.7K |
Total Assets | $5.909M | $5.338M | $4.943M |
YoY Change | -55.61% | 7.99% | -76.17% |
SHORT-TERM LIABILITIES | |||
YoY Change | |||
Accounts Payable | $1.752M | $1.655M | $4.574M |
YoY Change | -61.06% | -63.81% | 116.54% |
Accrued Expenses | $1.012M | $998.9K | $3.538M |
YoY Change | -67.48% | -71.77% | 91.77% |
Deferred Revenue | |||
YoY Change | |||
Short-Term Debt | $0.00 | $0.00 | $750.00 |
YoY Change | -100.0% | -100.0% | 0.0% |
Long-Term Debt Due | |||
YoY Change | |||
Total Short-Term Liabilities | $2.765M | $2.654M | $8.293M |
YoY Change | -64.44% | -67.99% | 90.89% |
LONG-TERM LIABILITIES | |||
Long-Term Debt | $0.00 | $0.00 | $0.00 |
YoY Change | |||
Other Long-Term Liabilities | $90.45K | $111.0K | $186.7K |
YoY Change | -46.46% | -40.56% | 3633.8% |
Total Long-Term Liabilities | $90.45K | $111.0K | $186.7K |
YoY Change | -46.46% | -40.56% | 3633.8% |
TOTAL LIABILITIES | |||
Total Short-Term Liabilities | $2.765M | $2.654M | $8.293M |
Total Long-Term Liabilities | $90.45K | $111.0K | $186.7K |
Total Liabilities | $2.855M | $2.765M | $8.480M |
YoY Change | -64.05% | -67.39% | 94.96% |
SHAREHOLDERS EQUITY | |||
Retained Earnings | -$111.0M | -$111.4M | -$96.95M |
YoY Change | 8.21% | 14.91% | |
Common Stock | $311.00 | $307.00 | $796.00 |
YoY Change | -84.83% | -61.43% | |
Preferred Stock | |||
YoY Change | |||
Treasury Stock (at cost) | |||
YoY Change | |||
Treasury Stock Shares | |||
Shareholders Equity | $3.054M | $2.572M | -$3.537M |
YoY Change | |||
Total Liabilities & Shareholders Equity | $5.909M | $5.338M | $4.943M |
YoY Change | -55.61% | 7.99% | -76.17% |
Cashflow Statement
Concept | 2024 Q1 | 2023 Q4 | 2022 Q4 |
---|---|---|---|
OPERATING ACTIVITIES | |||
Net Income | $365.4K | -$1.169M | -$5.542M |
YoY Change | -106.45% | -78.92% | -10.62% |
Depreciation, Depletion And Amortization | $3.210K | $3.211K | $3.211K |
YoY Change | 0.0% | 0.0% | 0.03% |
Cash From Operating Activities | $723.8K | -$3.092M | -$5.915M |
YoY Change | -115.41% | -47.73% | -26.9% |
INVESTING ACTIVITIES | |||
Capital Expenditures | $0.00 | $0.00 | |
YoY Change | -100.0% | -100.0% | |
Acquisitions | |||
YoY Change | |||
Other Investing Activities | |||
YoY Change | |||
Cash From Investing Activities | $0.00 | ||
YoY Change | -100.0% | ||
FINANCING ACTIVITIES | |||
Cash Dividend Paid | |||
YoY Change | |||
Common Stock Issuance & Retirement, Net | |||
YoY Change | |||
Debt Paid & Issued, Net | |||
YoY Change | |||
Cash From Financing Activities | 41.00K | $3.839M | $4.563M |
YoY Change | -99.72% | -15.87% | |
NET CHANGE | |||
Cash From Operating Activities | 723.8K | -$3.092M | -$5.915M |
Cash From Investing Activities | 0.000 | ||
Cash From Financing Activities | 41.00K | $3.839M | $4.563M |
Net Change In Cash | 764.8K | $747.1K | -$1.352M |
YoY Change | -92.11% | -155.25% | |
FREE CASH FLOW | |||
Cash From Operating Activities | $723.8K | -$3.092M | -$5.915M |
Capital Expenditures | $0.00 | $0.00 | |
Free Cash Flow | $723.8K | -$5.915M | |
YoY Change | -114.6% | -25.8% |
Facts In Submission
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-375540 | usd |
CY2023Q4 | us-gaap |
Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
|
-2287544 | usd |
CY2022Q4 | us-gaap |
Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
|
383362 | usd |
CY2023Q4 | us-gaap |
Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
|
-17225 | usd |
CY2022Q4 | us-gaap |
Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
|
-17201 | usd |
CY2023Q4 | us-gaap |
Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
|
-18626 | usd |
CY2022Q4 | us-gaap |
Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
|
-37255 | usd |
CY2023Q4 | us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
-3091737 | usd |
CY2022Q4 | us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
-5915170 | usd |
CY2023Q4 | us-gaap |
Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
|
3838870 | usd |
CY2022Q4 | us-gaap |
Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
|
4562895 | usd |
CY2023Q4 | us-gaap |
Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
|
3838870 | usd |
CY2022Q4 | us-gaap |
Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
|
4562895 | usd |
CY2023Q4 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
|
747133 | usd |
CY2022Q4 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
|
-1352275 | usd |
CY2023Q3 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
|
2274259 | usd |
CY2022Q3 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
|
3052879 | usd |
CY2023Q4 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
|
3021392 | usd |
CY2022Q4 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
|
1700604 | usd |
CY2023Q4 | SONN |
In Process Research And Development In Accrued Expenses
InProcessResearchAndDevelopmentInAccruedExpenses
|
12000 | usd |
CY2022Q4 | SONN |
In Process Research And Development In Accrued Expenses
InProcessResearchAndDevelopmentInAccruedExpenses
|
261250 | usd |
CY2023Q4 | SONN |
Offering Costs In Accounts Payable And Accrued Expenses
OfferingCostsInAccountsPayableAndAccruedExpenses
|
15000 | usd |
CY2022Q4 | SONN |
Offering Costs In Accounts Payable And Accrued Expenses
OfferingCostsInAccountsPayableAndAccruedExpenses
|
138878 | usd |
CY2022Q4 | SONN |
Deferred Offering Costs Charged Against Proceeds From Sale Of Common Stock
DeferredOfferingCostsChargedAgainstProceedsFromSaleOfCommonStock
|
32340 | usd |
CY2023Q4 | us-gaap |
Nature Of Operations
NatureOfOperations
|
<p id="xdx_803_eus-gaap--NatureOfOperations_zL7BSZbPW977" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1. <span id="xdx_82E_zeFqqQLtjF2h">Organization and Description of Business</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Description of business</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sonnet BioTherapeutics, Inc. (“Prior Sonnet”) was incorporated as a New Jersey corporation on April 6, 2015. Prior Sonnet completed a merger with publicly-held Chanticleer Holdings, Inc. (“Chanticleer”) on April 1, 2020. After the merger, Chanticleer changed its name to Sonnet BioTherapeutics Holdings, Inc. (“Sonnet” or the “Company”). Sonnet is a clinical stage, oncology-focused biotechnology company with a proprietary platform for innovating biologic medicines with single or bifunctional action. Known as F<sub>H</sub>AB™ (Fully Human Albumin Binding), the technology utilizes a fully human single chain antibody fragment (scFv) that binds to and “hitch-hikes” on human serum albumin (“HSA”) for transport to target tissues.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sonnet’s lead proprietary asset, SON-1010, is a fully human single chain version of Interleukin 12 (“IL-12”), covalently linked to the F<sub>H</sub>AB construct, for which Sonnet is pursuing clinical development in solid tumor indications, including ovarian cancer, non-small cell lung cancer and head and neck cancer. In March 2022, the FDA cleared Sonnet’s Investigational New Drug (“IND”) application for SON-1010. This allowed the Company to initiate a U.S. clinical trial (SB101) in oncology patients with solid tumors during the second calendar quarter of 2022. In September 2021, the Company created a wholly-owned Australian subsidiary, SonnetBio Pty Ltd (“Subsidiary”), for the purpose of conducting certain clinical trials in that country. Sonnet received approval and initiated an Australian clinical study (SB102) of SON-1010 in healthy volunteers during the third calendar quarter of 2022. Interim safety and tolerability data from the SB101 and SB102 studies were reported in April 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In January 2023, Sonnet announced a collaboration agreement with Roche for the clinical evaluation of SON-1010 with atezolizumab (Tecentriq®). The companies have entered into a Master Clinical Trial and Supply Agreement (“MCSA”), along with ancillary Quality and Safety Agreements, to study the safety and efficacy of the combination of SON-1010 and atezolizumab in a platinum-resistant ovarian cancer (“PROC”) patient setting. Furthermore, the companies will provide SON-1010 and atezolizumab, respectively, for use in the Phase 1b/Phase 2a combination safety, dose-escalation, and efficacy study (SB221). Part 1 of this 2-part study was approved in June 2023 by the local Human Research Ethics Committee in Australia under CT-2023-CTN-01399-1 and the Therapeutic Goods Administration has been notified. In August 2023, the FDA accepted the IND for SON-1010 in this indication. The trial consists of a modified 3+3 dose-escalation design in Part 1 to establish the maximum tolerated dose (“MTD”) of SON-1010 with a fixed dose of atezolizumab. Clinical benefit in PROC will be confirmed in an expansion group to establish the recommended Phase 2 dose (“RP2D”). Part 2 of the study will then investigate SON-1010 monotherapy, its use in combination with atezolizumab, or the standard of care (“SOC”) for PROC in a randomized comparison to show proof-of-concept (“POC”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">As part of the ongoing cost-cutting evaluations, all antiviral development with SON-1010 has been suspended.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company acquired the global development rights to its most advanced compound, SON-080, a fully human version of Interleukin 6 (“IL-6”), in April 2020 through its acquisition of the outstanding shares of Relief Therapeutics SA. Sonnet is advancing SON-080 in target indications of Chemotherapy-Induced Peripheral Neuropathy (“CIPN”) and Diabetic Peripheral Neuropathy (“DPN”). Sonnet received approval to initiate an ex-U.S. Phase 1b/2a study with SON-080 in CIPN during the third quarter of 2022. The Data Safety Monitoring Board (“DSMB”) overseeing the study is expected to meet during the first calendar quarter of 2024. Following the completion of the DSMB review, Sonnet anticipates announcing initial safety data from the CIPN study. Pursuant to a license agreement the Company entered into with New Life Therapeutics Pte, Ltd. (“New Life”) of Singapore in May 2021, Sonnet and New Life will be jointly responsible for developing SON-080 in DPN. The objective will be to analyze the data and to consider initiating a Phase 2 study once the CIPN safety data has been evaluated.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Sonnet BioTherapeutics Holdings, Inc.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Unaudited Interim Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SON-1210 (IL12-F<sub>H</sub>AB-IL15), Sonnet’s lead bifunctional construct, combines F<sub>H</sub>AB with fully human IL-12 and fully human Interleukin 15 (“IL-15”). This compound is being developed for solid tumor indications, including colorectal cancer. In February 2023, the Company announced the successful completion of two IND-enabling toxicology studies with <span style="background-color: white">SON-1210 in non-human primates. Sonnet is prepared to initiate the regulatory authorization process for SON-1210 to begin clinical development pending the outcome of any partnering activity.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">SON-1410 (IL18-F</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sub>H</sub><span style="background-color: white">AB-IL12) is a <span style="background-color: white">bifunctional</span> combination of Interleukin 18 (“IL-18”) and IL-12 for solid tumor cancers. Cell line development and process development are ongoing, with early experimental drug supply suitable for formulation and analytical method development activities. After some delays in 2023, activities will continue through 2024 with the potential to generate a drug suitable for preclinical studies and subsequent human studies.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has completed sequence confirmation for SON-3015 (anti-IL6-F<sub>H</sub>AB-anti-TGFβ). Early stage bifunctional drug has been generated and is being stored for future use with <i>in vivo</i> studies in mice. Sonnet has elected to place the SON-3015 development program on hold for expense reduction purposes.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Liquidity</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has incurred recurring losses and negative cash flows from operations since inception and it expects to generate losses from operations for the foreseeable future primarily due to research and development costs for its potential product candidates. The Company believes its cash of $<span id="xdx_90F_eus-gaap--Cash_iI_pn5n6_c20231231_zHsxazOE0Cd3" title="Cash">3.0</span> million at December 31, 2023 will fund the Company’s projected operations into March 2024. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying unaudited interim consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The unaudited interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recently executed an agreement to sell $<span id="xdx_903_eus-gaap--OperatingLossCarryforwards_iI_pn5n6_c20231231_zKRoFe3HLpYh" title="Net operating losses">4.8</span> million of its New Jersey state net operating losses through the Technology Business Tax Certificate Transfer Program (the “Program”) for expected net proceeds of $<span id="xdx_908_eus-gaap--ProceedsFromOperatingActivities_pn5n6_c20231001__20231231_z20hHV02qZP4" title="Proceeds from sale of net operating losses">4.3</span> million, subject to final approval by the state. Substantial additional financing will be needed by the Company to fund its operations. The Company plans to secure additional capital in the future through equity or debt financings, partnerships, collaborations, or other sources to carry out the Company’s planned development activities. If additional capital is not available when required, the Company may need to delay or curtail its operations until such funding is received. Various internal and external factors will affect whether and when the Company’s product candidates become approved for marketing and successful commercialization. The regulatory approval and market acceptance of the Company’s product candidates, length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the approval process will materially affect the Company’s financial condition and future operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operations since inception have consisted primarily of organizing the Company, securing financing, developing technologies through research and development and conducting preclinical and clinical studies. The Company faces risks associated with companies whose products are in development. These risks include the need for additional financing to complete its research and development, achieving its research and development objectives, defending its intellectual property rights, recruiting and retaining skilled personnel, and dependence on key members of management.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Sonnet BioTherapeutics Holdings, Inc.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Unaudited Interim Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> | |
CY2023Q4 | us-gaap |
Cash
Cash
|
3000000.0 | usd |
CY2023Q4 | us-gaap |
Operating Loss Carryforwards
OperatingLossCarryforwards
|
4800000 | usd |
CY2023Q4 | us-gaap |
Proceeds From Operating Activities
ProceedsFromOperatingActivities
|
4300000 | usd |
CY2023Q4 | us-gaap |
Use Of Estimates
UseOfEstimates
|
<p id="xdx_84E_eus-gaap--UseOfEstimates_zirksR2cVszb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>c.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_868_zQh7oQAak6Ji">Use of estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: 4.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of the unaudited interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in these unaudited interim consolidated financial statements include the accrual of research and development expenses. Estimates and assumptions are periodically reviewed in-light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from management’s estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> | |
CY2023Q4 | us-gaap |
Refund Received Related To Revenue From Different Year Year Revenue Recognized
RefundReceivedRelatedToRevenueFromDifferentYearYearRevenueRecognized
|
The cash refund is available to eligible companies with annual aggregate revenues of less than $20.0 million (Australian) during the reimbursable period. | |
CY2023Q4 | SONN |
Cash Refund Expected To Be Received
CashRefundExpectedToBeReceived
|
200000 | usd |
CY2022Q4 | SONN |
Cash Refund Expected To Be Received
CashRefundExpectedToBeReceived
|
300000 | usd |
CY2023Q4 | us-gaap |
Proceeds From Income Tax Refunds
ProceedsFromIncomeTaxRefunds
|
800000 | usd |
CY2023Q3 | us-gaap |
Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
|
1-for-22 reverse stock split | |
CY2023Q4 | us-gaap |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
|
6447803 | shares |
CY2022Q4 | us-gaap |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
|
190262 | shares |
CY2023Q4 | SONN |
Accrued Compensation And Benefits Current
AccruedCompensationAndBenefitsCurrent
|
141636 | usd |
CY2023Q3 | SONN |
Accrued Compensation And Benefits Current
AccruedCompensationAndBenefitsCurrent
|
2091196 | usd |
CY2023Q4 | SONN |
Accrued Research And Development Current
AccruedResearchAndDevelopmentCurrent
|
564674 | usd |
CY2023Q3 | SONN |
Accrued Research And Development Current
AccruedResearchAndDevelopmentCurrent
|
913145 | usd |
CY2023Q4 | us-gaap |
Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
|
213912 | usd |
CY2023Q3 | us-gaap |
Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
|
224031 | usd |
CY2023Q4 | us-gaap |
Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
|
2969 | usd |
CY2023Q3 | us-gaap |
Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
|
2550 | usd |
CY2023Q4 | us-gaap |
Accounts Payable And Other Accrued Liabilities Current
AccountsPayableAndOtherAccruedLiabilitiesCurrent
|
923191 | usd |
CY2023Q3 | us-gaap |
Accounts Payable And Other Accrued Liabilities Current
AccountsPayableAndOtherAccruedLiabilitiesCurrent
|
3230922 | usd |
CY2023Q4 | SONN |
Increase Decrease In Research And Development Expenses
IncreaseDecreaseInResearchAndDevelopmentExpenses
|
1000000.0 | usd |
CY2023Q4 | SONN |
Increase Decrease In General And Administrative Expenses
IncreaseDecreaseInGeneralAndAdministrativeExpenses
|
900000 | usd |
CY2023Q4 | us-gaap |
Collaborative Arrangement Rights And Obligations
CollaborativeArrangementRightsAndObligations
|
New Life is also obligated to pay a non-refundable deferred license fee of an additional $1.0 million at the time of the satisfaction of certain milestones, as well as potential additional milestone payments to the Company of up to $19.0 million subject to the achievement of certain development and commercialization milestones. In addition, during the Royalty Term (as defined below), New Life is obligated to pay the Company tiered double-digit royalties ranging from 12% to 30% based on annual net sales of Products in the Exclusive Territory. The “Royalty Term” means, on a Product-by-Product and a country-by-country basis in the Exclusive Territory, the period commencing on the date of the first commercial sale (subject to certain conditions) of such Product in such country in the Exclusive Territory and continuing until New Life ceases commercialization of such Product in the DIPN Field | |
CY2023Q4 | SONN |
Performanceobligation
Performanceobligation
|
1000000.0 | usd |
CY2023Q4 | us-gaap |
Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
|
18626 | usd |
CY2022Q4 | us-gaap |
Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
|
37255 | usd |
CY2022Q4 | SONN |
Warrant Expirations
WarrantExpirations
|
242 | shares |
CY2023Q4 | us-gaap |
Share Based Compensation
ShareBasedCompensation
|
50005 | usd |
CY2022Q4 | us-gaap |
Share Based Compensation
ShareBasedCompensation
|
91617 | usd |
CY2022Q3 | SONN |
Excise Tax
ExciseTax
|
0.01 | pure |