Sonnet BioTherapeutics to Receive Non-Dilutive Funding Through New Jersey Tax Certificate Transfer and Australia R&D Tax Incentive Programs
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) has received preliminary approval for a tax credit from the New Jersey Technology Business Tax Certificate Transfer Program. The company can sell up to $8,143,144 of its New Jersey State net operating losses (NOLs) and $62,810 of its R&D tax credits for proceeds of up to $0.795 million. Additionally, Sonnet expects a $0.7 million net cash refund from the R&D Tax Incentive Program in Australia.
The New Jersey program allows qualified companies to sell unused NOLs and R&D tax credits to unaffiliated, profit-generating corporate taxpayers in New Jersey. Sonnet anticipates receiving the Australian refund before the end of 2024 and the proceeds from the New Jersey program before the end of Q1 2025, subject to execution of the sale.
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) ha ricevuto l'approvazione preliminare per un credito d'imposta dal Programma di Trasferimento del Certificato Fiscale per le Attività Tecnologiche del New Jersey. L'azienda può vendere fino a $8,143,144 delle proprie perdite operative nette (NOL) dello Stato del New Jersey e $62,810 dei crediti d'imposta per la Ricerca e Sviluppo, per un ricavato massimo di $0.795 milioni. Inoltre, Sonnet prevede di ricevere un rimborso netto in contante di $0.7 milioni dal Programma d'Incentivo Fiscale per la Ricerca e Sviluppo in Australia.
Il programma del New Jersey consente alle aziende qualificate di vendere NOL e crediti d'imposta R&D non utilizzati a contribuenti societari non affiliati e generanti profitti nel New Jersey. Sonnet prevede di ricevere il rimborso australiano prima della fine del 2024 e i proventi dal programma del New Jersey prima della fine del primo trimestre del 2025, soggetti all'esecuzione della vendita.
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) ha recibido la aprobación preliminar para un crédito fiscal del Programa de Transferencia de Certificados de Impuestos para Empresas de Tecnología de Nueva Jersey. La empresa puede vender hasta $8,143,144 de sus pérdidas operativas netas (NOL) del Estado de Nueva Jersey y $62,810 de sus créditos fiscales por I+D, generando ingresos de hasta $0.795 millones. Además, Sonnet espera un reembolso en efectivo neto de $0.7 millones del Programa de Incentivos Fiscales por I+D en Australia.
El programa de Nueva Jersey permite a las empresas calificadas vender NOL y créditos fiscales por I+D no utilizados a contribuyentes corporativos no afiliados y generadores de beneficios en Nueva Jersey. Sonnet anticipa recibir el reembolso australiano antes de finales de 2024 y los ingresos del programa de Nueva Jersey antes del final del primer trimestre de 2025, sujeto a la ejecución de la venta.
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN)는 뉴저지 기술 비즈니스 세금 인증서 이전 프로그램으로부터 세금 공제에 대한 초기 승인을 받았습니다. 이 회사는 뉴저지주에서 발생한 순 운영 손실(NOL) 최대 $8,143,144와 연구 개발(R&D) 세금 공제를 $62,810까지 판매할 수 있으며, 최대 $0.795 백만의 수익을 올릴 수 있습니다. 또한, Sonnet는 호주 R&D 세금 인센티브 프로그램으로부터 $0.7 백만의 순 현금 환급을 받을 것으로 예상하고 있습니다.
뉴저지 프로그램은 자격을 갖춘 기업이 미사용 NOL 및 연구 개발 세금 공제를 뉴저지에서 이익을 창출하는 비소속 법인 납세자에게 판매할 수 있도록 허용합니다. Sonnet는 2024년 말 이전에 호주 환급을 받고 2025년 1분기 말 이전에 뉴저지 프로그램의 수익을 받을 것으로 예상하고 있으며, 이는 판매 실행에 따라 달라질 수 있습니다.
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) a reçu une approbation préliminaire pour un crédit d'impôt dans le cadre du Programme de Transfert de Certificat de Taxe pour les Entreprises Technologiques du New Jersey. L'entreprise peut vendre jusqu'à $8,143,144 de ses pertes d'exploitation nettes (NOL) de l'État du New Jersey et $62,810 de ses crédits d'impôt pour la R&D pour un produit maximal de $0.795 millions. De plus, Sonnet s'attend à un remboursement en espèces net de $0.7 millions du Programme d'Incentive Fiscal pour la R&D en Australie.
Le programme du New Jersey permet aux entreprises qualifiées de vendre des NOL non utilisés et des crédits d'impôt pour la R&D à des contribuables corporatifs non affiliés et générant des bénéfices dans le New Jersey. Sonnet prévoit de recevoir le remboursement australien avant la fin de 2024 et les revenus du programme du New Jersey avant la fin du premier trimestre 2025, sous réserve de la finalisation de la vente.
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) hat eine vorläufige Genehmigung für einen Steuerkredit vom New Jersey Technology Business Tax Certificate Transfer Program erhalten. Das Unternehmen kann bis zu $8,143,144 seiner Nettobetriebsverluste (NOL) aus dem Bundesstaat New Jersey und $62,810 seiner Steuerkredite für Forschung und Entwicklung verkaufen, was Einnahmen von bis zu $0.795 Millionen ermöglicht. Darüber hinaus erwartet Sonnet eine Nettorückzahlung in bar von $0.7 Millionen im Rahmen des F&E-Steueranreizprogramms in Australien.
Das Programm von New Jersey ermöglicht es berechtigten Unternehmen, ungenutzte NOL und F&E-Steuerkredite an nicht verbundene, gewinnbringende Unternehmenssteuerzahler in New Jersey zu verkaufen. Sonnet erwartet, die Rückzahlung aus Australien vor Ende 2024 und die Einnahmen aus dem Programm in New Jersey vor Ende des ersten Quartals 2025 zu erhalten, vorbehaltlich der Ausführung des Verkaufs.
- Approval to sell up to $8,143,144 of New Jersey State NOLs and $62,810 of R&D tax credits
- Potential proceeds of up to $0.795 million from the New Jersey tax credit program
- Expected $0.7 million net cash refund from the Australian R&D Tax Incentive Program
- Non-dilutive funding to advance pipeline of targeted immunotherapeutic drugs
- None.
Insights
This news is moderately positive for Sonnet BioTherapeutics. The company is set to receive non-dilutive funding through two tax incentive programs, which will bolster its cash position without issuing new shares. Specifically:
- Up to
$795,000 from the New Jersey Technology Business Tax Certificate Transfer Program - Approximately
$700,000 from the Australian R&D Tax Incentive Program
These funds, totaling about
However, investors should note that while helpful, this funding is relatively modest and likely won't dramatically alter Sonnet's long-term financial outlook. The company will still need to secure substantial additional capital to advance its pipeline of targeted immunotherapeutic drugs through clinical trials.
The timing of the cash inflows - expected by Q1 2025 - provides some near-term financial visibility. Overall, this development is a positive step in Sonnet's ongoing efforts to manage its cash burn and extend its runway, but it doesn't fundamentally change the company's financial position or prospects.
PRINCETON, NJ, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Sonnet BioTherapeutics Holdings, Inc. (the “Company” or “Sonnet”) (NASDAQ: SONN), a clinical-stage company developing targeted immunotherapeutic drugs, today announced it has received preliminary approval for a tax credit from the New Jersey Technology Business Tax Certificate Transfer Program administered by the New Jersey Economic Development Authority (NJEDA). Sonnet received approval of its application to sell up to
Pankaj Mohan, Founder and Chief Executive Officer of Sonnet commented, “We are grateful for NJEDA's continued support of the biotechnology industry and to be one of the recipients to benefit from the New Jersey Technology Business Tax Certificate Transfer Program. With the addition of the net cash refund from the Australian R&D Tax Incentive Program, this will provide Sonnet with non-dilutive capital to continue to direct our resources towards advancing our pipeline of targeted immunotherapeutic drugs.”
The Technology Business Tax Certificate Transfer Program administered by the NJEDA enables qualified companies to sell up to
The Australian R&D Tax Incentive Program allows certain companies to claim a significant percentage of their costs related to R&D activities they have or are planning to undertake in Australia.
The Company expects to receive the Australian net cash refund before calendar year end 2024 and the proceeds from the sale of its New Jersey NOLs and R&D tax credits before the end of the first calendar quarter of 2025, subject to execution of such sale.
About Sonnet BioTherapeutics Holdings, Inc.
Sonnet is an oncology-focused biotechnology company with a proprietary platform for innovating biologic drugs of single or bifunctional action. Known as FHAB (Fully Human Albumin Binding), the technology utilizes a fully human single chain antibody fragment (scFv) that binds to and "hitch-hikes" on human serum albumin (HSA) for transport to target tissues. Sonnet's FHAB was designed to specifically target tumor and lymphatic tissue, with an improved therapeutic window for optimizing the safety and efficacy of immune modulating biologic drugs. FHAB is the foundation of a modular, plug-and-play construct for potentiating a range of large molecule therapeutic classes, including cytokines, peptides, antibodies, and vaccines.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the proceeds from the Company’s New Jersey State NOLs and R&D tax credits, the Company’s Australia net cash refund, the outcome of the Company’s clinical trials, the Company's cash runway, the Company's product development, clinical and regulatory timelines, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statements that are predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management's current beliefs and assumptions.
These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential,” "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company's filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Relations Contact:
JTC Team, LLC
Jenene Thomas
908.824.0775
SONN@jtcir.com
FAQ
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