Executive Summary

Q2 FY2024 was operationally quiet with no collaboration revenue ($0) and a GAAP net income of $0.37M driven by $4.33M of “Other income” from monetizing New Jersey NOLs, offsetting a $(3.87)M operating loss .
Opex discipline continued: R&D fell to $2.17M (from $3.82M YoY) and G&A to $1.70M (from $1.88M YoY) as SONN pruned tertiary programs and shifted activities to cost-advantaged geographies .
Liquidity improved modestly ($3.8M cash at 3/31), but management guided runway only “into July 2024,” potentially August with further cuts; SONN simultaneously put in place a $25M Chardan equity facility to extend optionality .
Post-quarter, SON-1010 Phase 1 data were updated: across studies 61 subjects enrolled with no dose-limiting toxicities; target maintenance dose increased; 35% of evaluable patients showed disease stability at 4 months—supporting continued development and combination with atezolizumab in PROC .
On May 22, the Board launched a strategic alternatives review, a potential near-term stock catalyst alongside upcoming SON-1010 updates .

What Went Well and What Went Wrong

What Went Well

Cost control delivered materially lower operating expenses YoY; R&D ($2.17M) and G&A ($1.70M) fell as programs were rationalized and operations moved to India/Australia .
Net income turned positive ($0.37M) due to $4.33M from the NJ NOL sale; CFO emphasized runway actions and new equity facility for added flexibility .
Pipeline momentum: SON-1010 Phase 1 safety remained favorable with extended half-life PK/PD and signs of clinical benefit (35% stable at 4 months), enabling a higher target dose and continued atezolizumab combo work in PROC .

Management quotes:

“We are very excited about the progress…with the SON-1010 and SON-080 programs…” – CEO Pankaj Mohan .
“We…leveraged the New Jersey…Program to generate $4.3 million… We project…cash…into July 2024…potential…into August. We recently entered into an equity facility with Chardan…” – CFO Jay Cross .

What Went Wrong

No collaboration revenue in the quarter (vs $36.4k YoY), leaving operating results dependent on cost control and non-operating items .
Runway remains very tight (cash $3.8M at quarter-end) with management guiding only into July/August absent additional capital or deeper cuts .
SON-080 in CIPN placed on hold; focus shifts to DPN pending partnership, delaying a nearer-term secondary asset readthrough .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Collaboration Revenue ($)	$36,445	$18,626	$0
Research & Development Expense ($)	$3,816,644	$644,042	$2,167,288
General & Administrative Expense ($)	$1,884,569	$653,455	$1,701,273
Total Operating Expenses ($)	$5,701,213	$1,297,497	$3,868,561
Loss from Operations ($)	$(5,664,768)	$(1,278,871)	$(3,868,561)
Net Income (Loss) ($)	$(5,667,071)	$(1,168,509)	$365,425
EPS – Basic ($)	$(7.55)	$(0.31)	$0.08
EPS – Diluted ($)	$(7.55)	$(0.31)	$0.07

Liquidity

Cash and equivalents: $3.02M at 12/31/23 and $3.79M at 3/31/24 .
Other income of $4.33M primarily reflects NJ NOL proceeds recognized in the quarter .

Operational KPIs (Clinical)

KPI	Q2 2024 / Recent
SON-1010 subjects across studies	61 enrolled to date
Stable disease at first scan	60% (15/25)
Stable at 4 months (clinical benefit)	35% (8/23)
Max cycles received	Up to 25 cycles monotherapy; up to 10 cycles with atezolizumab
Dose target update	Maintenance dose increased to 1200 ng/kg

Why metrics moved:

YoY opex declines reflect program suspensions (antiviral work on SON-1010, reduced tertiary programs, paused SON-080/SON-1210 pending partnering) and outsourcing to India/Australia .
Net income inflected positive due to the $4.3M NJ NOL monetization (Other income) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash runway	As of Q1 FY24 (2/14/24)	Pending NOL sale, funding “into the third calendar quarter of 2024”	As of Q2 FY24 (5/14/24): “into July 2024,” potentially August with further cuts; equity facility with Chardan entered	Maintained (narrowed to July–Aug)

Notes: No revenue/margin/OpEx numeric guidance provided; management continues to emphasize expense controls and external funding levers .

Earnings Call Themes & Trends

No Q2 FY24 earnings call transcript was found in company documents; themes below draw from Q4 FY23 and Q1/Q2 FY24 press releases.

Topic	Previous Mentions (Q-2: FY23; Q-1: Q1 FY24)	Current Period (Q2 FY24)	Trend
Funding/Runway	FY23: cash to Mar-2024; expected $0.8M AU R&D refund; preliminary approval to sell up to $4.8M NJ NOLs	Cash $3.8M; runway into July (possibly Aug); entered $25M Chardan equity facility	Cautious; added financing optionality
R&D execution – SON-1010	FY23: favorable safety; extended half-life vs rhIL-12; initial disease stability in SB101; IND for SB221 (atezo combo)	Safety maintained; 61 subjects; raised maintenance dose; 35% clinical benefit at 4 months; atezo combo ongoing	Positive; dose escalation progressing
SON-080 (neuropathy)	Q1 FY24: Phase 1b safety completed in CIPN; moving to DPN partnering	CIPN on hold; leverage safety data to initiate Phase 2 DPN via partnership	Refocus to larger DPN via partners
Partnerships	FY23: Roche atezo combo (SB221) progressing; Janssen combo studies under review	Atezo combo dose escalation ongoing; Janssen review ongoing (prior disclosure)	Steady
Strategic alternatives	—	Board initiated review of strategic alternatives (May 22)	New potential catalyst

Management Commentary

CEO (Q2 release): “We are very excited about the progress we made…with the SON-1010 and SON-080 programs, where the foundations for the compounds’ safety profiles were further strengthened.”
CFO (Q2 release): “We…generate[d] $4.3 million in net proceeds… We project…existing cash…into July 2024…potential…into August. We recently entered into an equity facility with Chardan to raise additional capital.”
CMO (May 20): “The overall safety and toxicity profile for SON-1010…prompted us to raise the target dose to enhance potential efficacy…modeling suggests target-mediated drug disposition…supports [FHAB] being directed to tumor tissue.”

Q&A Highlights

No earnings call transcript or Q&A was available for Q2 FY2024 in company documents. As a result, there were no analyst Q&A clarifications to report.

Estimates Context

Consensus (S&P Global) EPS and revenue estimates for Q2 FY2024 were not retrievable at this time due to API limits, and may be unavailable given limited analyst coverage. Therefore, results vs. Wall Street estimates cannot be assessed here.

Key Takeaways for Investors

Runway remains the central risk: cash was $3.8M at quarter-end with guidance to July/August; SONN established a $25M Chardan equity facility to extend options, but equity issuance risk is non-trivial in current markets .
Operating discipline is real: R&D and G&A stepped down materially YoY as the company concentrates on programs with nearer-term potential and leverages cost-advantaged geographies .
SON-1010 continues to de-risk: clean safety, extended PK/PD, increased maintenance dose, and early clinical benefit support continued development and combination with atezolizumab in PROC—future data updates are potential upside catalysts .
Portfolio triage ongoing: SON-080 CIPN paused while pursuing a DPN partner, preserving cash and prioritizing the larger commercial opportunity .
Strategic alternatives process could surface partnerships or transactions; paired with clinical updates, this creates an event-driven setup near term .
Non-operating levers (NOL monetization) helped deliver positive EPS this quarter, but core operating losses persist; sustained value creation hinges on clinical milestones and capital access .
Trading setup: watch for near-term disclosures (SON-1010 combo dose-escalation progress, any partnering/strategic alternatives outcomes) as principal stock catalysts, balanced against financing/timing risk .

Appendix: Additional Relevant Disclosures (Q2 period and shortly after)

Updated SON-1010 clinical data and increased dose-escalation target (May 20) .
Strategic alternatives review initiated (May 22) .
Chardan equity facility (ChEF purchase agreement) disclosed (May 3) .
Q1 FY24 update (Feb 14): cash $3.0M; expected NOL proceeds and runway into Q3 2024; continued cost controls .

Sources: Q2 FY2024 8-K/press release and exhibits ; Q1 FY2024 8-K ; SON-1010 clinical update (May 20 8-K) ; Strategic alternatives (May 22 8-K) ; Chardan equity facility (May 3 8-K) ; FY2023 update (Dec 14 8-K) .

Sonnet BioTherapeutics Holdings, Inc. (SONN)·Q2 2024 Earnings Summary