Sonnet BioTherapeutics receives funding through NJEDA, Australia tax programs

Sonnet BioTherapeutics has received preliminary approval for a tax credit from the New Jersey Technology Business Tax Certificate Transfer Program administered by the New Jersey Economic Development Authority. Sonnet received approval of its application to sell up to $8,143,144 of its New Jersey State net operating losses and $62,810 of its New Jersey State research and development tax credits for proceeds of up to $0.795M through the New Jersey Technology Business Tax Certificate Transfer Program, subject to execution of such sale. Sonnet also expects to receive a $0.7M net cash refund from the R&D Tax Incentive Program in Australia. The Technology Business Tax Certificate Transfer Program administered by the NJEDA enables qualified companies to sell up to $20M of their unused New Jersey NOLs and R&D tax credits to unaffiliated, profit-generating corporate taxpayers in the State of New Jersey. The Technology Business Tax Certificate Transfer Program is designed to allow technology and biotechnology companies with NOLs to turn their tax losses and credits into cash proceeds to fund more R&D, expand its workforce and cover other allowable expenditures. Sonnet is one of several biotechnology/technology companies to qualify in this competitive process to share in the funding this year. The Australian R&D Tax Incentive Program allows certain companies to claim a significant percentage of their costs related to R&D activities they have or are planning to undertake in Australia. The Company expects to receive the Australian net cash refund before calendar year end 2024 and the proceeds from the sale of its New Jersey NOLs and R&D tax credits before the end of the first calendar quarter of 2025, subject to execution of such sale.