Sonnet BioTherapeutics Reports $3.5 Million Net Loss and Increased Collaboration Revenue in Latest Filing

Sonnet BioTherapeutics Holdings, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $3.5 million for the three months ended March 31, 2025, compared to a net income of $365,425 for the same period in 2024. For the six months ending March 31, 2025, the net loss increased to $6.7 million, up from $803,084 in the prior year. The company's total operating expenses for the first half of 2025 reached $8.1 million, a substantial increase from $5.2 million in the same period of 2024, primarily driven by higher research and development costs and general administrative expenses.

In terms of revenue, Sonnet reported collaboration revenue of $1 million for the six months ended March 31, 2025, a significant increase from $18,626 in the previous year. This revenue was primarily attributed to the Alkem Agreement, which involved the licensing of its IL-6 asset, SON-080, for the treatment of diabetic peripheral neuropathy in India. The company did not recognize any collaboration revenue for the three months ended March 31, 2025, as it had completed its performance obligations under the New Life Agreement in the previous fiscal year.

Operationally, Sonnet has made strides in its clinical development programs. The company is advancing its lead asset, SON-1010, through multiple clinical trials, including a Phase 1b/2a study in combination with atezolizumab for platinum-resistant ovarian cancer. The company also announced an expansion of its Phase 1 study to evaluate SON-1010 in combination with trabectedin for soft tissue sarcomas. As of March 31, 2025, Sonnet had cash reserves of $2.1 million, which it expects will fund operations into July 2025, highlighting the need for additional financing to support ongoing clinical trials and operational costs.

Strategically, Sonnet has undergone significant organizational changes, including the appointment of Raghu Rao as interim CEO following the passing of Pankaj Mohan. Additionally, the company has expanded its employee base to support its clinical and operational needs, although specific headcount figures were not disclosed. The company is also actively pursuing partnerships and collaborations to enhance its product development pipeline and secure additional funding.

Looking ahead, Sonnet BioTherapeutics anticipates continued operational losses as it invests in research and development. The company plans to secure additional capital through equity or debt financing, including its committed equity facility with Chardan Capital Markets, which allows for the sale of up to $25 million in common stock. The company acknowledges the uncertainty surrounding its ability to raise sufficient funds and the potential impact on its operations and product development timelines.