Sonnet BioTherapeutics, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stockholders’ Equity (Tables)

Stockholders’ Equity (Tables)

12 Months Ended

Dec. 31, 2014

A summary of the warrant activity during the years ended December 31, 2014 and 2103 is presented below:

	Number of			Weighted Average Exercise		Weighted Average
	Warrants			Price		Remaining Life
Outstanding January 1, 2013		-		$	-
Granted		5,501,458			5.46
Exercised		-
Forfeited		-
Outstanding December 31, 2013		5,501,458			5.46
Granted		3,584,118			4.97
Exercised		(174,772	)		2.00
Forfeited		(195,000	)		6.25
Outstanding December 31, 2014		8,715,804		$	5.49		3.0

Exercisable December 31, 2014		8,715,804		$	5.49		3.0

Schedule of Warrants Outstanding

The following table presents information related to stock warrants as of December 31, 2014:

			Weighted
	Outstanding		Average		Exercisable
	Number of		Remaining Life		Number of
Exercise Price	Warrants		in Years		Warrants

>$5.00		3,554,514		2.8		3,554,514
$4.00-$5.00		3,935,117		3.0		3,935,117
$3.00-$4.00		963,901		4.0		963,901
$2.00-$3.00		262,272		3.0		262,272
		8,715,804				8,715,804

Schedule of Warrant Amortization

Warrant amortization is summarized as follows at December 31, 2014 and 2013 and for the years then ended:

	2014		2013

Additional paid-in capital	$	1,107,893	$	657,552

Interest expense		336,798		22,659
Consulting expense		771,095		634,893
	$	1,107,893	$	657,552

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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