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

CAPITAL LEASES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2012

Capital leases payable at December 31, 2012 and 2011 is associated with the South African operations and consists of the following:

	December 31,		December 31,
	2012		2011

Capital lease payable, due in 49 monthly installments of $1,081, including interest at 10%, through April 2016	$	38,548	$	46,149

Capital lease payable, due in 32 monthly insallments of $800 including interest at 10%, through November 2014		17,183		24,186

Capital lease payable, due in 14 monthly installments of $1,470, including interest at 10%, through May 2013		7,389		23,211

Capital lease payable, due in 36 monthly installments of $1,022, including interest at 10%, through February 2015		25,363		33,897
Total capital leases payable		88,483		127,443
Current maturities		27,965		41,590
Capital leases payable, less current maturities	$	60,518	$	85,853

Annual requirements for capital lease obligations are as follows:

December 31,	Amount
2013	$	43,502
2014		35,063
2015		16,526
2016		5,569
Total minimum lease payments		100,660
Less: amount representing interest		(12,140	)
Present Value of Net Minimum Lease Payments	$	88,520