Sonnet BioTherapeutics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Revenue recognized for the three and six-month periods ended June 30, 2018 under ASC-606 and revenue that would have been recognized had ASC-605 been applied is as follows:

	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
	As reported under ASC-606		If reported under ASC-605		Increase		As reported under ASC-606		If reported under ASC-605		Increase
Restaurant sales, net	$	10,185,159	$	10,185,159		-	$	19,954,667	$	19,954,667		-
Gaming income, net		81,122		81,122		-		174,277		174,277		-
Management fee income		24,999		24,999		-		49,998		49,998		-
Franchise income		108,644		87,934		20,710		216,497		175,077		41,420
Total Revenue	$	10,399,924	$	10,379,214		20,710	$	20,395,439	$	20,354,019		41,420

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table summarizes the number of common shares potentially issuable upon the exercise of certain warrants and convertible notes payable as of June 30, 2018 and 2017 that have been excluded from the calculation of diluted net loss per common share since the effect would be antidilutive.

	June 30, 2018		June 30, 2017
Warrants		2,645,829		1,862,758
Convertible notes		300,000		366,667
Total		2,945,829		2,229,425