Sonnet Biotherapeutics Holdings, Inc. (SONN) has disclosed a new risk, in the Accounting & Financial Operations category.
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Sonnet Biotherapeutics Holdings, Inc. faces a potential risk due to the recent initiation of its HYPE treasury strategy, which is not yet reflected in historical financial statements. The volatility of digital asset prices, combined with the new ASU 2023-08 accounting standards requiring fair value measurement and disclosure, could lead to significant variability in future earnings. This change mandates that gains and losses from HYPE holdings be recognized in net income each reporting period, potentially increasing earnings volatility compared to previous periods. Consequently, stakeholders should be prepared for more pronounced fluctuations in the company’s financial performance.
The average SONN stock price target is $4.00, implying 6.38% upside potential.
To learn more about Sonnet Biotherapeutics Holdings, Inc.’s risk factors, click here.