Sonnet BioTherapeutics Holdings, Inc. (SONN) experienced a notable surge in after-market trading on Thursday, with the stock price reaching $1.05, representing a change percentage of 13.02%.
The surge, although unattributed to any specific reason, has captured the attention of investors, prompting them to evaluate the investment potential of SONN stock.
Financial Results and Cash Position
In its recent financial results announcement, Sonnet BioTherapeutics disclosed its performance for the second quarter ended March 31, 2023. As of the end of the quarter, Sonnet reported a solid cash position of $11.4 million, with no outstanding debt.
The company had recently concluded a public offering, generating gross proceeds of $15.0 million ($13.6 million net proceeds). The offering included the issuance of 11,664,888 shares of common stock, along with pre-funded warrants and common warrants.
Research and Development Expenses and General Administrative Costs
Sonnet BioTherapeutics witnessed a decrease in research and development expenses for the three-month period ending March 31, 2023. The expenses decreased by $2.6 million to reach $3.8 million, primarily due to cost-saving measures achieved through product development activities transitioning to cost-advantaged locations such as India and Australia.
Additionally, a reduction in expenditures on tertiary programs and a decrease in share-based compensation expenses contributed to the decline. The general and administrative expenses remained stable at $1.9 million for the same period as the company focused on managing expenses for liquidity purposes.
Stock Performance and Market Data
Sonnet BioTherapeutics’ stock, traded on the NASDAQ exchange under the symbol SONN, has displayed varying performance levels over different timeframes. The stock’s 1-day price change stands at 27.38, while the 5-day and 1-month price changes are 96.82% and 304.44%, respectively.
However, it is important to note that the stock has faced a decline of 3.53% over the past 6 months. Year-to-date, the stock has experienced a negative price change of 19.91%.
Financial Ratios and Indicators
Sonnet BioTherapeutics’ financial ratios present a mixed picture. The company’s price-to-earnings ratio (TTM) stands at -0.58, indicating a negative earnings value. The current ratio (TTM) and quick ratio (TTM) are at 1.68 and 1.52, respectively, suggesting satisfactory liquidity levels.
However, Sonnet’s net profit margin (TTM) is -133.61%, indicating significant losses. Return on equity (TTM) stands at -1864.05%, reflecting a negative profitability measure.
While the surge in Sonnet BioTherapeutics’ stock price during after-market trading has piqued investor interest, it is essential to consider the company’s financial results, cash position, and historical stock performance.