Sonnet BioTherapeutics Holdings, Inc. (SONN)·Q4 2024 Earnings Summary

Executive Summary

• Fiscal Q4 2024 (quarter ended September 30) featured continued pipeline progress but minimal revenue, with total FY collaboration revenue of $0.02M and no Q4 revenue; net loss in Q4 was approximately $3.13M as other income was concentrated earlier in the year .
• Cost actions were a highlight: total annual operating expenses fell ~37% YoY, extending runway alongside non-dilutive funding; management guided cash sufficient for projected operations into July 2025, aided by ~$7.7M raised in Nov/Dec and tax incentives .
• Clinical momentum: SON-1010 reached MTD at 1,200 ng/kg with no dose-limiting toxicity and showed 48% stable disease at 4 months and a partial response at MTD; efficacy readout expected H1 2025 and SB221 safety update in Q1 2025 .
• Corporate actions and catalysts: Nasdaq bid-price compliance regained (subject to one-year panel monitoring), India SON‑080 license with Alkem (upfronts, milestones, royalties), IL‑18 variant patent issuance, and two financings ($5.0M offering; $3.9M registered direct) add capital and IP strength heading into 2025 data readouts .
• No Q4 earnings call transcript was available; estimate comparisons to S&P Global consensus were unavailable, limiting beat/miss analysis for EPS and revenue .

What Went Well and What Went Wrong

What Went Well

• SON-1010 monotherapy completed dose escalation with MTD of 1,200 ng/kg; 48% of evaluable monotherapy patients achieved stable disease at 4 months and one partial response at MTD, supporting clinical benefit and combinations in PROC .
• Explicit cost discipline: total annual operating expenses reduced ~37% YoY; CEO emphasized leveraging non-dilutive funding and partnerships to extend runway and advance SON‑1010, SON‑080, and SON‑1210 .
• Strengthened non-dilutive/strategic levers: regained Nasdaq bid-price compliance; signed SON‑080 India licensing (upfront $1.0M, milestones up to $1.0M, royalties), and secured IL‑18 variant patent protecting SON‑1411 and SON‑1400 .
  • “We are very pleased with the progress...cutting costs...and being able to leverage non-dilutive funding and capital markets financings” — Pankaj Mohan, Ph.D., CEO .
  • “It is exciting to see higher doses of SON‑1010 demonstrating minimal toxicity...we may finally be able to realize the promising antitumor effect” — Richard Kenney, M.D., CMO .

What Went Wrong

• Liquidity tighter at fiscal year-end: cash ended Q4 at $0.15M, with going concern language; runway relies on recent financings and tax incentive receipts into July 2025 .
• Revenue remains de minimis: FY collaboration revenue of $0.02M and no Q4 revenue; no product revenues yet, limiting estimate-based beat/miss framing .
• Operational mix shift: while R&D fell with focus and outsourcing to cost-advantaged regions, Q3 G&A rose vs prior-year quarter due to financing/legal costs, underscoring sensitivity to capital market activities .

Financial Results

P&L and liquidity trajectory (USD Millions; periods oldest → newest)

EPS (reported; NA where undisclosed)

Operating expense detail (USD Millions)

Liquidity (USD Millions)

KPIs (clinical/program)

Guidance Changes

Earnings Call Themes & Trends

Note: No Q4 earnings call transcript found; themes derived from press releases and 8‑K filings .

Management Commentary

• “We have delivered on our stated objective of cutting costs through an approximate 37% reduction in total operating expenses versus last year… Looking ahead, our focus is on advancing our lead program, SON‑1010,” — Pankaj Mohan, Ph.D., CEO .
• “Higher doses of SON‑1010 demonstrating minimal toxicity… the PR at the highest dose is particularly important,” — Richard Kenney, M.D., CMO .
• “We are excited to partner with Alkem… data generated from Alkem’s planned Phase 2 study will enable us to establish additional partnerships in other key markets,” — Pankaj Mohan, Ph.D., CEO .

Q&A Highlights

• No Q4 earnings call transcript was available; no analyst Q&A to report for this quarter .
• Prior quarter disclosures clarified cash runway and financing approach (Chardan facility, NJ NOL sale) and cost-saving focus; no incremental Q&A clarifications in Q4 filings .

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of this analysis; therefore, beats/misses vs estimates cannot be determined (S&P Global data unavailable).
• Given de minimis collaboration revenue and the absence of product sales, estimate frameworks may not be broadly covered for this micro‑cap biotech.

Key Takeaways for Investors

• Near-term catalysts: SB221 safety at MTD (Q1 2025) and SB101 topline efficacy (H1 2025) could be stock-moving events; clinical signals already include 48% SD and one PR at MTD in SB101 .
• Runway improved to July 2025 via $7.7M financings and tax incentives, but going concern remains; watch follow-on financings and business development to bridge to data milestones .
• Strategic monetization progressing: SON‑080 India license with Alkem adds upfront/milestones/royalties; further ex‑India partnering could leverage clinical data access rights .
• IP platform strengthening (IL‑18 variant patent) and Nasdaq compliance reduce overhangs and support optionality into 2025 .
• Expense discipline is tangible (~37% YoY reduction); expect continued focus on core assets (SON‑1010/SON‑1210) with outsourcing in cost‑advantaged geographies .
• Q2’s positive net income was non-recurring (NJ NOL sale); fundamental dilution risk persists pending clinical inflections—position sizing should reflect financing cadence .
• Trading setup: anticipate volatility around Q1/Q2 2025 data disclosures; supportive headlines (safety/efficacy) could enhance partnering leverage and reduce cost of capital .