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

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2014

OTHER INVESTMENTS ARE SUMMARIZED AS FOLLOWS AT SEPTEMBER 30, 2014 AND DECEMBER 31, 2013.

	September 30,		December 31,
	2014		2013
Investments accounted for under the equity method	$	-	$	941,963
Investments accounted for under the cost method		1,550,000		1,550,000
Total	$	1,550,000	$	2,491,963

Activity in investments accounted for using the equity method is summarized as follows:

	Nine Months Ended		Year Ended
	September 30,		December 31,
	2014		2013

Balance, beginning of year	$	941,963	$	1,066,915
Equity in losses		(40,694)		(125,017)
New investments		100,000		100,000
Step acquisition reclassification		(1,001,269)		-
Return of capital		-		(99,935)
Balance, end of period	$	-	$	941,963

Equity investments consist of the following at September 30, 2014 and December 31, 2013:

	September 30,		December 31,
	2014		2013
Carrying value:
Hoot Campbelltown Pty. Ltd. (49%) - Australia	$	-	$	483,603
Second Hooters location (49%) - Australia		-		384,605
Third Hooters location (49%) - Australia		-		73,755
	$	-	$	941,963

The summarized balance sheets for the three locations in Australia of which we owned 49% at December 31, 2013 follows:

	December 31,
	2013
ASSETS
Current assets	$	362,085
Non-current assets		3,089,230
TOTAL ASSETS	$	3,451,315
LIABILITIES
Current liabilities	$	972,885
PARTNER'S EQUITY		2,478,430
TOTAL LIABILITIES AND PARTNERS' EQUITY	$	3,451,315