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

Quarterly report pursuant to Section 13 or 15(d)

DISCLOSURES ABOUT FAIR VALUE (Tables)

DISCLOSURES ABOUT FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables according to FASB ASC 820 pricing levels.

	Fair Value Measurement Using
			Quoted prices
			in active		Significant
			markets of		other		Significant
			identical		observable		Unobservable
	Recorded		assets		inputs		Inputs
	value		(Level 1)		(Level 2)		(Level 3)

June 30, 2014
Assets:
Available-for-sale securities	$	35,362	$	35,362	$	-	$	-

Liabilities:
Embedded conversion feature	$	1,555,200	$	-	$	-	$	1,555,200
Warrant liability		179,300		-		-		179,300
	$	1,734,500	$	-	$	-	$	1,734,500

December 31, 2013
Assets:
Available-for-sale securities	$	55,112	$	55,112	$	-	$	-

Liabilities:
Embedded conversion feature	$	2,146,000	$	-	$	-	$	2,146,000

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets measured at fair value on a recurring basis using significant unobservable inputs during the three and six months ended June 30, 2014. The Company did not have any warrants or conversion feature financial assets for the three and six months ended June 30, 2013.

			Conversion
	Warrants		Feature		Total

Balance at January 1, 2014	$	-	$	2,146,000	$	2,146,000

Change in fair value of derivative liability		(1,200)		(703,000)		(704,200)

Amount included in debt discounts		111,300		181,400		292,700
Balance at June 30, 2014	$	110,100	$	1,624,400	$	1,734,500

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References + Details