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Sonnet BioTherapeutics Holdings (SONN)
NASDAQ:SONN
US Market
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Sonnet BioTherapeutics Holdings (SONN) AI Stock Analysis

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SONN

Sonnet BioTherapeutics Holdings

(NASDAQ:SONN)

Rating:45Neutral
Price Target:
$3.00
▲(6.76%Upside)
Sonnet BioTherapeutics Holdings faces significant financial and valuation challenges, which heavily impact its overall score. Positive corporate events, such as regaining Nasdaq compliance and a strategic merger, provide some optimism but remain uncertain until fully realized. Technical analysis indicates weak momentum, contributing to a cautious outlook.

Sonnet BioTherapeutics Holdings (SONN) vs. SPDR S&P 500 ETF (SPY)

Sonnet BioTherapeutics Holdings Business Overview & Revenue Model

Company DescriptionSonnet BioTherapeutics Holdings, Inc. (SONN) is a clinical-stage biotechnology company focused on the development of innovative biologic drugs. The company operates primarily in the biopharmaceutical sector, specializing in the design and development of targeted biologics utilizing its proprietary technology platform, FHAB (Fully Human Albumin Binding). Sonnet's core product offerings are centered around its pipeline of oncology therapeutics aimed at treating various types of cancer.
How the Company Makes MoneySonnet BioTherapeutics generates revenue primarily through collaborations, licensing agreements, and strategic partnerships related to its proprietary FHAB platform and therapeutic candidates. The company may receive upfront payments, milestone payments, and royalties based on the successful development and commercialization of its drug candidates. Additionally, Sonnet might engage in research and development partnerships with other pharmaceutical companies, leveraging its technology platform to co-develop and out-license drug candidates, thereby creating additional revenue streams. As a clinical-stage company, significant revenue from product sales is not yet realized, as its therapies are still under development and have not received regulatory approval for commercialization.

Sonnet BioTherapeutics Holdings Financial Statement Overview

Summary
Sonnet BioTherapeutics Holdings faces substantial financial difficulties, including declining revenues, negative profitability, and high leverage. The negative equity and cash flow issues underscore the need for strategic restructuring.
Income Statement
20
Very Negative
Sonnet BioTherapeutics Holdings has struggled with consistent revenue generation, showing a significant decline from 2019 to 2024. The company has experienced negative net income and EBIT margins, indicating ongoing operational challenges and lack of profitability. The revenue growth rate is volatile, reflecting instability in revenue streams.
Balance Sheet
15
Very Negative
The balance sheet reveals high leverage with negative stockholders' equity, indicating financial distress. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is negative, highlighting a precarious financial position. The company's assets have significantly decreased over the years, further stressing its financial instability.
Cash Flow
25
Negative
Cash flow analysis shows persistent negative free cash flow, indicating cash burn without sufficient inflow. Operating cash flow is consistently negative, and the free cash flow to net income ratio is unfavorable. Despite some financing inflows, the company struggles to generate positive cash flow from operations.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue18.63K147.81K349.94K483.63K0.00
Gross Profit18.63K147.81K256.69K-16.15M-58.31K
EBITDA-11.77M-18.72M-29.58M-24.99M-24.24M
Net Income-7.44M-18.83M-29.77M-25.01M-31.06M
Balance Sheet
Total Assets2.77M5.43M5.83M28.99M7.99M
Cash, Cash Equivalents and Short-Term Investments149.46K2.27M3.05M27.62M7.35M
Total Debt130.86K203.91K255.99K125.88K353.25K
Total Liabilities3.26M5.66M8.37M6.73M4.97M
Stockholders Equity-485.74K-225.98K-2.54M22.26M3.02M
Cash Flow
Free Cash Flow-8.61M-21.79M-28.58M-22.56M-15.69M
Operating Cash Flow-8.61M-21.34M-27.69M-22.55M-15.61M
Investing Cash Flow-12.00K-443.25K-896.48K-3.62K-76.18K
Financing Cash Flow6.49M21.01M4.01M42.83M23.01M

Sonnet BioTherapeutics Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.81
Price Trends
50DMA
2.97
Negative
100DMA
2.15
Positive
200DMA
2.30
Positive
Market Momentum
MACD
-0.10
Positive
RSI
40.46
Neutral
STOCH
6.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONN, the sentiment is Negative. The current price of 2.81 is below the 20-day moving average (MA) of 5.21, below the 50-day MA of 2.97, and above the 200-day MA of 2.30, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.46 is Neutral, neither overbought nor oversold. The STOCH value of 6.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONN.

Sonnet BioTherapeutics Holdings Risk Analysis

Sonnet BioTherapeutics Holdings disclosed 66 risk factors in its most recent earnings report. Sonnet BioTherapeutics Holdings reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We may not satisfy The Nasdaq Capital Market's requirements for continued listing of our common stock in the future. If we cannot satisfy these requirements, The Nasdaq Capital Market could delist our common stock. Q3, 2024
2.
Recently enacted and future policies and legislation may increase the difficulty and cost for us to obtain marketing approval of and commercialize our product candidates and may affect the reimbursement made for any product candidate for which we receive marketing approval. Q3, 2024

Sonnet BioTherapeutics Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$24.54M-167.57%127.51%71.16%
51
Neutral
$7.38B0.36-65.54%2.37%16.37%0.39%
45
Neutral
$17.60M-714.96%978.39%69.65%
40
Underperform
$5.88M-66.15%43.03%81.75%
38
Underperform
$15.40M-1949.77%-89.76%80.28%
37
Underperform
$20.38M354.78%64.19%
36
Underperform
$25.80M-39.78%84.17%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SONN
Sonnet BioTherapeutics Holdings
2.81
-3.24
-53.55%
CYCC
Cyclacel Pharmaceuticals
9.81
-340.59
-97.20%
TENX
Tenax Therapeutics
6.18
3.26
111.64%
VYNE
VYNE Therapeutics
0.36
-1.41
-79.66%
LGVN
Longeveron
1.71
-0.94
-35.47%
CLDI
Calidi Biotherapeutics
0.59
-0.92
-60.93%

Sonnet BioTherapeutics Holdings Corporate Events

Executive/Board Changes
Sonnet BioTherapeutics Appoints Interim CEO Raghu Rao
Neutral
Aug 1, 2025

On July 31, 2025, Sonnet BioTherapeutics Holdings, Inc. entered into an employment agreement with Raghu Rao, the interim Chief Executive Officer, outlining his compensation and potential bonuses. The agreement includes a base salary of $400,000, eligibility for a bonus based on strategic transactions, and discretionary bonuses from the board. Additionally, the board approved a $100,000 discretionary bonus for Mr. Rao on the same date.

The most recent analyst rating on (SONN) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

Delistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
Sonnet BioTherapeutics Regains Nasdaq Compliance After Fundraising
Positive
Jul 25, 2025

On May 30, 2025, Sonnet BioTherapeutics Holdings received a deficiency notice from Nasdaq for not meeting the $2.5 million minimum stockholders’ equity requirement. However, by July 18, 2025, the company reported raising sufficient funds through private placement and warrant exercises, ensuring compliance with Nasdaq’s equity rule. On July 23, 2025, Nasdaq confirmed the company’s compliance but will continue to monitor its financial status, with potential delisting if future requirements are not met.

The most recent analyst rating on (SONN) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

Delistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
Sonnet BioTherapeutics Secures Funding to Meet Nasdaq Requirements
Positive
Jul 18, 2025

On May 30, 2025, Sonnet BioTherapeutics Holdings received a deficiency notice from Nasdaq for not meeting the $2.5 million minimum stockholders’ equity requirement. By July 15, 2025, the company secured approximately $5.5 million from a private placement offering and an additional $10.5 million from warrant exercises, potentially bringing it back into compliance, pending Nasdaq’s confirmation.

The most recent analyst rating on (SONN) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Sonnet BioTherapeutics Announces Merger with Rorschach I LLC
Positive
Jul 14, 2025

Sonnet BioTherapeutics announced a business combination with Rorschach I LLC to form Hyperliquid Strategies Inc (HSI), a public cryptocurrency treasury company. The transaction, valued at $888 million, will see HSI holding a significant reserve of HYPE tokens, the native token of the Hyperliquid blockchain. This move is expected to transform Sonnet’s business by integrating a cryptocurrency treasury strategy while continuing its focus on existing biotech assets. The merger, subject to approval by Sonnet stockholders, is anticipated to close in the second half of 2025, with HSI listed on Nasdaq under a new ticker symbol.

The most recent analyst rating on (SONN) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

Private Placements and Financing
Sonnet BioTherapeutics Completes $2 Million Convertible Notes Sale
Neutral
Jul 2, 2025

On June 30, 2025, Sonnet BioTherapeutics Holdings, Inc. completed a sale of $2.0 million in convertible notes to accredited investors, along with warrants to purchase 865,052 shares of common stock. The convertible notes, maturing on June 30, 2026, can be converted into up to 1,730,104 shares of common stock at a conversion price of $1.156. If a subsequent issuance of at least $5.0 million occurs within 90 days, the notes will automatically convert into the same securities issued in that offering.

The most recent analyst rating on (SONN) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
Sonnet BioTherapeutics Faces Nasdaq Non-Compliance Notice
Negative
Jun 2, 2025

On May 30, 2025, Sonnet BioTherapeutics Holdings received a notice from Nasdaq indicating non-compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. The company reported stockholders’ equity of $662,262, significantly below the $2.5 million requirement. Sonnet has until July 14, 2025, to submit a compliance plan, with potential extensions up to 180 days. Failure to regain compliance could lead to delisting, impacting liquidity, trading volume, and the company’s ability to raise capital, thereby affecting its business operations and investor confidence.

The most recent analyst rating on (SONN) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025