Sonnet BioTherapeutics, Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

DEFERRED REVENUE

DEFERRED REVENUE

12 Months Ended

Dec. 31, 2010

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

8.	DEFERRED REVENUE

The Company receives equity securities from companies for which it provides management services. Generally the securities are issued in advance of the period over which the service is to be provided, generally one year. The Company values the equity instruments received based upon the stock prices as of the date we reached an agreement with the third party and defers the related revenue. The revenue is then recognized over the period earned. Deferred revenue consists of the following during the years ended December 31, 2010 and 2009.

	2010			2009

Balance at beginning of year	$	20,833		$	-
Additions:
North American Energy common stock		10,500
Remodel Auction common stock		-			125,000
BreezePlay, Inc. common stock		-			250,000
Amortization		(29,583	)		(354,167	)
Balance end of year	$	1,750		$	20,833

- Definition

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

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