Sonnet BioTherapeutics Holdings, Inc. (SONN): Business Model Canvas [Dec-2025 Updated]

You're looking at one of the most fascinating pivots I've seen in my career: Sonnet BioTherapeutics Holdings, Inc. (SONN) just transformed from a clinical-stage player into a public crypto treasury company, now listed as PURR. Honestly, the near-term story is all about the balance sheet, which closed with at least $305 million in cash proceeds and a massive $583 million reserve of HYPE tokens, all while trying to manage legacy assets like their proprietary FHB technology. This Business Model Canvas cuts through the noise to show you exactly how they plan to generate revenue-from token appreciation to small licensing payments like the $1.00M from Alkem in Q1 2025-and where the real risks lie in this hybrid structure. Keep reading to see the nine blocks defining this new reality for Sonnet BioTherapeutics Holdings, Inc.

Sonnet BioTherapeutics, Inc. (SONN) - Canvas Business Model: Key Partnerships

You're looking at the key external relationships that underpin the business structure following the late 2025 transformation. This isn't just about drug development anymore; it's about a dual-focus entity, with the core now being a digital asset treasury strategy.

The most significant partnership is the business combination itself, which fundamentally reshaped the Key Partners block. This transaction involved Rorschach I LLC, a special purpose entity formed by affiliates of Atlas Merchant Capital LLC and an affiliate of Paradigm Operations LP, along with other sponsors.

The structure of this combination is best seen through the numbers:

Partner/Component	Nature of Relationship	Financial/Statistical Data (As of Late 2025)
Rorschach I LLC / Sponsors	Business Combination to form Hyperliquid Strategies Inc. (HSI)	Total assumed closing value of $888 million.
Strategic Investors (Paradigm, Galaxy Digital, Pantera Capital, etc.)	Participation in the transaction, including private placement.	At least $305 million in gross cash invested at closing.
Hyperliquid Layer-1 Ecosystem (HYPE Token)	Primary asset for the new treasury strategy.	HSI expected to hold 12.6 million HYPE tokens, valued at $583 million at signing.
Alkem Laboratories Limited	Licensing for SON-080 in India.	Upfront payment of $1.0 million plus up to $1.0 million in milestones.
Roche	Master Clinical Trial and Supply Agreement for SON-1010.	Roche supplies atezolizumab (Tecentriq®) for the Phase 1/2a study in Platinum-Resistant Ovarian Cancer (PROC).

The Hyperliquid Layer-1 ecosystem itself represents a critical external dependency and partner ecosystem for the new entity, Hyperliquid Strategies Inc. (HSI), which now trades under the ticker PURR on Nasdaq starting December 3, 2025.

• Hyperliquid Layer-1 blockchain ecosystem and token holders.
• HYPE token generated over $1.5 trillion in perpetuals volume over the past year.
• Open interest on the Hyperliquid platform recently hit an all-time high of $11.3 billion.
• The new entity, HSI, is positioned to become one of the largest U.S.-based publicly listed companies holding HYPE in its treasury.

The biotech partnerships remain active under HSI, with the Roche agreement being central to the SON-1010 clinical pathway.

• Roche Master Clinical Trial and Supply Agreement for SON-1010 evaluation with atezolizumab in PROC.
• The study is an ongoing Phase 1/2a safety and efficacy assessment.
• The partnership allows Sonnet to use data from Phase 2 and Phase 3 trials in India for potential partnering outside India after paying a Clinical Data Access fee to Alkem.

The licensing deal with Alkem Laboratories Limited secures development and commercialization rights for SON-080 in the Indian territory.

• Alkem funds development and commercialization for Diabetic Peripheral Neuropathy (DPN), Chemotherapy Induced Neuropathy (CIPN), and Autonomic Neuropathy in India.
• Sonnet is entitled to a royalty in the low double digits of net sales in India, less certain expenses.
• The estimated market size for diabetic neuropathy in India was $120.3 million in 2023, projected to reach $246.7 million by 2030.

Sonnet BioTherapeutics Holdings, Inc. (SONN) - Canvas Business Model: Key Activities

You're looking at the core operational focus for the entity now known as Hyperliquid Strategies Inc. (HSI), following the December 2, 2025, business combination. The key activities have fundamentally shifted from oncology research to digital asset treasury management, though the legacy biotech operations continue under a subsidiary.

Treasury management and strategic acquisition of HYPE tokens

The primary activity is managing the substantial digital asset treasury, positioning HSI to be one of the largest U.S.-listed holders of the HYPE token. This management includes active strategies to compound shareholder returns through ecosystem engagement and yield optimization on the held assets.

The initial treasury composition at the closing of the business combination was valued at an assumed total of $888 million.

Asset Component	Quantity/Amount	Value at Announcement (July 2025)
HYPE Tokens Held	12.6 million HYPE tokens	$583 million
Gross Cash Proceeds	At least $305 million	$305 million

The $305 million in cash proceeds is specifically earmarked to acquire significantly more HYPE tokens, further building out the strategic reserve. The HYPE token, at the time of the initial agreement, powered the Hyperliquid Layer-1 blockchain and ranked as the 12th-largest token globally, with a market capitalization of $16.2 billion.

Maintaining Nasdaq listing under the new ticker PURR

A critical activity is ensuring the continued, compliant listing on The Nasdaq Capital Market under the new ticker symbol PURR. Trading under the new symbol began on Wednesday, December 3, 2025, following the suspension of the legacy SONN ticker on December 2, 2025. The share consideration for Sonnet holders was adjusted via a five-for-one exchange ratio in the merger. As of December 5, 2025, the market capitalization for the newly listed entity (PURR) was reported at $27.60 million.

Managing the remaining legacy biotech assets and intellectual property

Sonnet BioTherapeutics Holdings continues to exist as a wholly-owned subsidiary of HSI, meaning its activities are now managed under the treasury company's umbrella. The company plans to dispose of most non-core assets while maintaining minimal development of its lead drug candidate, SON-1010, an IL-12-FHAB for solid tumors currently in an ongoing Phase 1 study. Legacy Sonnet shareholders received Contingent Value Rights (CVRs) tied to the future value realization of these remaining biotech assets. The market capitalization of Sonnet BioTherapeutics Holdings (SONN) as of December 03, 2025, before the final transition, was $0.02B.

Key legacy asset management activities include:

• Maintaining minimal development of SON-1010.
• Seeking partnership opportunities for the SON-080 program (rhIL-6 for CIPN/DPN).
• Administering the Contingent Value Rights (CVRs) for former Sonnet shareholders.

Developing and executing digital asset investment strategies

The core operational strategy involves executing the digital asset treasury plan, supported by institutional backing from entities like Atlas Merchant Capital, Paradigm, Galaxy Digital, and Pantera Capital. The goal is to provide U.S. equity investors with regulated exposure to the HYPE token. This strategy is designed to generate compounding shareholder returns through methods such as staking and yield optimization on the HYPE holdings. The company's leadership, including Chairman Bob Diamond and CEO David Schamis, is focused on capitalizing on the Hyperliquid blockchain's rapid growth, which is noted for processing billions in daily trading volume on its decentralized exchange.

Financial reporting and compliance for a public cryptocurrency treasury company

The shift necessitates a complete overhaul of financial reporting to align with a digital asset treasury model, requiring compliance with SEC regulations for a company whose primary asset is a cryptocurrency. This involves reporting on the valuation and performance of the HYPE token holdings, which introduces risks related to the highly volatile nature of the price of HYPE tokens. The company filed a final prospectus/proxy statement (File No. 333-290034) with the SEC in October 2025 to detail the combination. The fiscal year end for the new entity is September.

Financial reporting key considerations:

• Compliance with SEC rules for crypto asset treatment for U.S. tax purposes.
• Reporting on the correlation between HSI's stock price and the price of HYPE tokens.
• Quarterly reporting, with the last reported quarter being for the period ended June 30, 2025 (Q3 2025).

Finance: draft 13-week cash view by Friday.

Sonnet BioTherapeutics Holdings, Inc. (SONN) - Canvas Business Model: Key Resources

You're looking at the core assets that underpin the new structure of Hyperliquid Strategies Inc. (HSI), which now includes Sonnet BioTherapeutics Holdings, Inc. as a wholly-owned subsidiary. These resources are a mix of intellectual property, market access, and significant digital asset holdings following the business combination completed in late 2025.

Financial and Treasury Resources

The primary shift in Key Resources involves the establishment of a significant cryptocurrency treasury, positioning HSI as a public cryptocurrency treasury company. The initial structure involved a total assumed closing value of $888 million.

Resource Component	Initial Commitment/Value (July 2025 Agreement)	Latest Reported Holding (As of Dec 4, 2025)
HYPE Token Reserve Value	Approximately $583 million (based on 12.6 million HYPE tokens)	12 million HYPE tokens
Gross Cash Proceeds from Combination	At least $305 million	$300 million in cash
Additional Capital Raised (Private Placement)	$5.5 million expected closing July 14, 2025	N/A

The gross cash proceeds of at least $305 million at closing were intended to enable HSI to acquire significantly more HYPE, creating one of the top strategic reserves of the HYPE token. As of December 4, 2025, HSI had staked 425,000 HYPE tokens on the Anchorage node by Figment.

Proprietary Technology and Intellectual Property

The FHAB (Fully Human Albumin-Binding) technology platform remains a core scientific asset. This platform is the foundation for developing targeted biologic drugs with single or bifunctional action.

• FHAB utilizes a fully human single chain antibody fragment (scFv) that binds to and 'hitch-hikes' on human serum albumin (HSA) for transport to target tissues.
• The construct is modular, providing a plug-and-play opportunity for potentiating large molecule therapeutic classes, including cytokines, peptides, antibodies, and vaccines.
• Global Intellectual Property protection includes European Patent No. EP3583125 B1, which covers the technology and carries an effective term until February 20, 2038.

Market and Listing Access

The business combination resulted in a change of listing status, moving the public entity to a new ticker symbol on the Nasdaq Capital Market.

• The combined company, Hyperliquid Strategies Inc. ("HSI"), is expected to trade on The Nasdaq Capital Market under the ticker symbol "PURR" starting Wednesday, December 3, 2025.
• Sonnet BioTherapeutics Holdings, Inc. common stock (SONN) will no longer trade, operating as a wholly-owned subsidiary of HSI.
• As of December 2, 2025, the former Sonnet BioTherapeutics Holdings, Inc. market capitalization was $21.94M.

Clinical-Stage Pipeline Assets

The biotech pipeline continues development under the HSI subsidiary structure, with specific clinical programs holding defined statuses as of late 2025.

The pipeline candidates include:

• SON-1010 (IL-12-FHAB): Lead program for solid tumors and Platinum-Resistant Ovarian Cancer (PROC). In an ongoing Phase 1/2a study with Roche for PROC, 48% of evaluable monotherapy patients showed stable disease at four months, with one patient at the MTD showing a partial response (PR).
• SON-1210 (IL12-FHAB-IL15): For solid tumors and metastatic pancreatic cancer, in collaboration with the Sarcoma Oncology Center for a Phase 1/2a study. First patient dosing was expected in H1 calendar year 2025.
• SON-080 (low dose rhIL-6): In development for Chemotherapy-Induced Peripheral Neuropathy (CIPN) and Diabetic Peripheral Neuropathy (DPN). Demonstrated encouraging results in a Phase 1b/2a trial, being well tolerated with no evidence of a pro-inflammatory cytokine response. Sonnet is seeking partnership to support a Phase 2 trial.

Finance: draft 13-week cash view by Friday.

Sonnet BioTherapeutics Holdings, Inc. (SONN) - Canvas Business Model: Value Propositions

The value propositions for Sonnet BioTherapeutics Holdings, Inc., now operating as a wholly-owned subsidiary under Hyperliquid Strategies Inc. (HSI) as of December 2025, are dual-focused, spanning digital assets and retained biopharmaceutical assets.

Providing public market exposure to the HYPE cryptocurrency token.

This value proposition is delivered through the parent entity, Hyperliquid Strategies Inc. (HSI), which became a public cryptocurrency treasury company trading under the ticker symbol "PURR" starting December 3, 2025.

• The transaction was valued at an assumed closing value of $888 million.
• HSI is positioned to offer U.S. equity investors capital-efficient and productive access to the HYPE token.

Creating one of the top strategic reserves for the Hyperliquid Layer-1 blockchain.

The core of the new business model centers on accumulating and managing a significant reserve of the HYPE token, the native asset of the Hyperliquid Layer-1 blockchain.

Asset Component	Amount/Value (as of July 2025 announcement)
HYPE Tokens Held	Approximately 12.6 million HYPE tokens
Value of HYPE Tokens	$583 million
Gross Cash Proceeds for Acquisition	At least $305 million
Total Assumed Closing Value	$888 million

The HYPE token has a capped supply of 1 billion tokens.

Potential for improved therapeutic window via FHAB-mediated tumor targeting.

Sonnet BioTherapeutics Holdings, Inc. continues to advance its proprietary Fully Human Albumin Binding (FHAB®) platform, which is designed to specifically target tumor and lymphatic tissue, optimizing the safety and efficacy of immune modulating biologic drugs.

• The lead program, SON-1010 (IL-12-FHAB), completed monotherapy dose escalation in the Phase 1 SB101 trial at a Maximum Tolerated Dose (MTD) of 1200 ng/kg.
• In the monotherapy portion of the SB101 trial, 48% of evaluable patients achieved stable disease at 4 months post-initiation of dosing.
• One patient dosed at the MTD in the monotherapy study achieved a partial response (PR) with a 45% reduction in tumor size by RECIST criteria.
• In the SB221 combination trial for Platinum-Resistant Ovarian Cancer (PROC) with atezolizumab, two of the three patients in the E6 maintenance dose cohort (1200 ng/kg) had partial responses.
• The company is evaluating an E7 cohort using a maintenance dose of 1500 ng/kg.

Developing novel cytokine-based therapeutics for oncology and neuropathy.

The FHAB platform is the foundation for developing single or bifunctional immunomodulatory cytokine therapeutic candidates.

• Oncology Pipeline: SON-1210 (IL12-FHAB-IL15) is planned for an investigator-initiated and funded Phase 1/2a study for pancreatic cancer.
• Neuropathy Pipeline: SON-080 (low dose rhIL-6) for Chemotherapy-Induced Peripheral Neuropathy (CIPN) and Diabetic Peripheral Neuropathy (DPN) has a license agreement with Alkem Laboratories, who will advance development into a Phase 2 study for DPN in India.
• SON-080 demonstrated encouraging results in a Phase 1b/2a trial, being well tolerated with no evidence of a pro-inflammatory cytokine response.
• Legacy revenue for the trailing 12 months ending June 30, 2025, was $1.00M, with Q1 FY2025 collaboration revenue from the Alkem licensing agreement being $1.00M.

Sonnet BioTherapeutics Holdings, Inc. (SONN) - Canvas Business Model: Customer Relationships

You're looking at the relationships Sonnet BioTherapeutics Holdings, Inc. maintained with its various customer and stakeholder groups as of late 2025, right after its strategic pivot.

Transactional relationship with public market investors via stock trading.

The relationship with the broader public market shifted dramatically following the business combination, moving from a pure-play biotech focus to a publicly traded digital asset treasury vehicle, Hyperliquid Strategies Inc. (HSI). On the day stockholders approved the merger, December 2, 2025, the stock, trading as SONN before the transition, gained 10.32%, closing at $3.42 and adding approximately $2M to the valuation, reaching a market cap of $22M. Trading volume that day was exceptionally heavy at 10.3x the daily average, showing high retail and public interest in the transition. By December 5, 2025, the new entity was trading under the ticker PURR at $3.68. For context on the previous structure, institutional investors owned 9.45% of the stock, with institutional buying over the preceding 24 months totaling 23,847,070 shares, representing about $108.60M in transactions. The trading activity reflects the market's reaction to the new strategy.

The transactional data for the public market around the transition point is summarized below:

Metric	Value (Dec 2, 2025)	Value (Dec 5, 2025)
Closing Stock Price	$3.42	$3.68 (as PURR)
Market Capitalization	$22M	N/A
Volume Relative to Average	10.3x	1.29m (Shares Traded)
Stock Price Change (Day of News)	+10.32%	+2.22% (Change as PURR)

High-touch, strategic relationship with major digital asset investors and partners.

This relationship is defined by the merger itself, which brought in significant crypto-focused capital, fundamentally changing the ownership structure. The new entity, Hyperliquid Strategies Inc., is expected to hold a total closing value of $888 million. This value is composed of an expected $583 million in HYPE tokens and at least $305 million in gross cash proceeds. Legacy Sonnet stockholders now own only 1.2% of the combined entity, while the new crypto investors control 98.8%. The key strategic partners involved in backing the new entity include Paradigm Operations LP, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. This structure creates a direct, high-touch relationship with the core digital asset ecosystem driving the new strategy.

Investor Relations (IR) focused on communicating the new crypto treasury strategy.

Investor Relations efforts in late 2025 centered on explaining the transformation and managing expectations for both legacy and new investors. The IR communication highlighted the formation of a publicly traded vehicle to manage a digital asset treasury, making HSI one of the largest U.S.-based public holders of the HYPE token. The company also announced a $1 billion common stock offering to further expand its crypto holdings. For the remaining biotech interests, IR communicated that legacy Sonnet stockholders would receive Contingent Value Rights (CVRs) tied to the remaining biotech assets, which, as of Q3 2025, generated a net loss of $3.78 million for the quarter. The company also secured a $5.5 million private placement and had $2.0 million in convertible notes converting at closing to fund transaction expenses and minimal biotech operations.

Key elements of the new capital structure and IR focus include:

• Total Assumed Closing Value: $888 million.
• HYPE Token Holding Value: $583 million (approximately 12.6 million HYPE tokens).
• Gross Cash Proceeds: At least $305 million.
• Legacy Shareholder Ownership Post-Merger: 1.2%.
• CVR Issuance for Biotech Assets: Yes.

Collaborative relationships with clinical partners and licensees (e.g., Alkem).

The biotech operations, continuing as a wholly owned subsidiary, maintain critical relationships with development partners. The most concrete example is the licensing agreement with Alkem Laboratories Limited for SON-080 in India. Under this deal, Alkem pays Sonnet BioTherapeutics Holdings, Inc. $1 million upfront, with up to an additional $1.0 million available in milestone payments. Sonnet is also entitled to a royalty equal to a percentage in the low double digits of the net sales of SON-080 in India. This collaboration is built on prior work, where clinical trials for SON-080 generated safety data from over 200 patients. The Q3 2025 revenue estimate for the legacy business was $1M, showing the current scale of operations relying on these partnerships.

The terms of the Alkem collaboration structure the ongoing relationship:

• Upfront Payment: $1 million.
• Potential Milestone Payments: Up to $1.0 million.
• Royalty Rate: Percentage in the low double digits.
• Clinical Data Access: Sonnet can use Alkem's Phase 2 and Phase 3 data for non-India partnering upon paying a Clinical Data Access fee.

Finance: draft 13-week cash view by Friday.

Sonnet BioTherapeutics Holdings, Inc. (SONN) - Canvas Business Model: Channels

You're looking at how Sonnet BioTherapeutics Holdings, Inc., now operating under the combined entity structure, gets its information and securities in front of the market as of late 2025. The transition from SONN to the new structure with the ticker PURR is a key channel event itself.

Nasdaq Capital Market for Stock Trading (Ticker PURR)

The primary public trading venue shifted following the business combination closing on December 2, 2025. Sonnet BioTherapeutics Holdings, Inc. common stock (SONN) ceased trading, with the combined entity's stock expected to trade on The Nasdaq Capital Market under the ticker PURR starting December 3, 2025. This represents the main liquidity channel for the equity security.

Here's a look at the trading metrics leading up to this transition, using the former SONN ticker for context, and the initial PURR data:

Metric	Pre-Combination (SONN - Nov 28, 2025)	Post-Combination (PURR - Dec 5, 2025 Snapshot)
Closing Price	$3.72	$3.68
Volume	418,364 shares	1.29m shares
Average Volume (Historical SONN)	654,654 shares	N/A
52 Week High/Low (SONN)	$19.30 / $1.08	Range: $3.33 - $4.65 (52 Week for PURR)
Market Capitalization (SONN)	$10,131,528	N/A
Bid/Ask Example	$4.02 X 373 / $4.77 X 100	$3.445 - $3.75 (Day Range)

The share consideration for the combination was set at a five-for-one exchange ratio.

Direct Communication via SEC Filings and Press Releases

Regulatory disclosures and official announcements form a critical, mandated channel for investor information flow. You can access these directly from the SEC or the company's Investor Relations section.

• SEC filings provide the most granular detail on corporate actions and financials.
• Press releases deliver timely updates on clinical progress and corporate milestones.
• The company offers an RSS News Feed and Email Alerts subscription service for direct delivery.

Key filings in the period surrounding the late 2025 transition included:

• Form 8-K Current Report filed on December 3, 2025.
• Form 425 filings related to the Business Combination Communication on November 18, 2025 and November 12, 2025.
• Definitive proxy statement/prospectus mailed to stockholders on October 27, 2025.
• Latest Quarterly Report (10-Q) filed on August 13, 2025.

Digital Asset Exchanges and Over-the-Counter (OTC) Markets for Token Acquisition

This channel relates to the new operational focus following the combination. Hyperliquid Strategies Inc (HSI), which now forms the core of the combined entity, is described as a digital asset treasury reserve company.

The business plan explicitly involves HYPE token-related financial and advisory services. This implies that the HYPE token is a key asset or instrument managed through this channel. A significant near-term risk noted is the 'highly volatile nature of the price of HYPE tokens' and the correlation risk to the new stock price. Specific exchange listings or OTC market volumes for token acquisition aren't detailed in the public filings, but the existence of the token is central to the post-merger strategy.

Investor Presentations and Conferences

Direct engagement with the investment community happens through scheduled presentations and dedicated investor materials. These channels are used to explain the FHAB technology, pipeline (like SON-1010 and SON-1210), and corporate strategy.

Recent engagement points include:

• Presentation at the MedInvest Biotech & Pharma Conference on September 19, 2025.
• Release of a Virtual Investor 'What This Means' Segment on August 11, 2025.
• An Investor Presentation from August 2025 detailing the platform and pipeline candidates.
• Following the merger, the latest presentation listed is the Hyperliquid Strategies Inc Investor Presentation.

The company's pipeline candidates, such as SON-1010 in combination with atezolizumab for Platinum-Resistant Ovarian Cancer, are the core content delivered through these channels. Finance: review the Q4 2025 investor deck for alignment with the new PURR narrative by next Tuesday.

Sonnet BioTherapeutics Holdings, Inc. (SONN) - Canvas Business Model: Customer Segments

You're looking at the customer segments for Sonnet BioTherapeutics Holdings, Inc. as of late 2025, which is a complex picture given the definitive agreement to transform into Hyperliquid Strategies Inc (HSI). The customer base has fundamentally bifurcated between the new digital asset treasury focus and the continuing, albeit subsidiary, biotech operations.

The primary focus for the publicly traded entity, HSI, is now centered on the digital asset market, targeting investors interested in the HYPE token treasury strategy. The legacy biotech patient base is now served by the subsidiary operations.

Cryptocurrency investors seeking exposure to the HYPE token

This segment represents the core new customer base for the entity post-business combination. These investors are seeking regulated, public market exposure to the HYPE token, the native asset of the Hyperliquid Layer-1 blockchain. The scale of this commitment is substantial, as the combined entity is expected to hold a significant reserve of this asset.

• The expected holding at closing is approximately 12.6 million HYPE tokens.
• The assumed value of the HYPE token holding at the time of the agreement was $583 million.
• The HYPE token was ranked as the 13th-largest cryptocurrency by market capitalization as of July 6, 2025.
• Existing Sonnet shareholders retain only 1.2% of the combined company, meaning new crypto investors control approximately 98.8%.

Institutional digital asset funds and hedge funds

These institutions are the sophisticated participants backing the transformation, providing both capital and strategic alignment for the HYPE token treasury. Their participation validates the new structure's intent to become a major strategic reserve holder.

The participation in the transaction included several prominent strategic investors:

Investor Group	Role/Participation Type	Estimated Capital Contribution (Gross Cash)
Paradigm	Strategic Investor	Part of the capital structure enabling the $888 million total assumed closing value.
Galaxy Digital	Strategic Investor	Part of the capital structure enabling the $888 million total assumed closing value.
Pantera Capital	Strategic Investor	Added 20,427,696 shares of $SONN in Q3 2025, for an estimated $93,558,847.
D1 Capital	Strategic Investor	Part of the capital structure enabling the $888 million total assumed closing value.
Republic Digital	Strategic Investor	Part of the capital structure enabling the $888 million total assumed closing value.
683 Capital	Strategic Investor	Part of the capital structure enabling the $888 million total assumed closing value.

The total assumed closing value of the transaction, including cash and HYPE, was $888 million, with at least $305 million in gross cash invested. Institutional activity in the legacy stock showed 26 institutional investors adding shares in Q3 2025.

Biotech pharmaceutical companies for licensing the FHAB platform or assets

This segment relates to the ongoing business of the subsidiary, which leverages the proprietary Fully Human Albumin Binding (FHAB) platform. Licensing deals provide non-dilutive funding and external validation for the technology.

• The SON-080 program for Diabetic Peripheral Neuropathy (DPN) was licensed to Alkem Laboratories Limited for development and commercialization in India in October 2024.
• The company secured $3.9 million in gross proceeds from a registered direct offering in December 2024, which supported operations alongside licensing proceeds.
• The company received non-dilutive funding that covered approximately 43% of its total annual operating expenses in fiscal year 2024 through programs like the Australia R&D Tax Incentive.

Oncology and neuropathy patients (indirectly, via drug development)

These patients are the ultimate recipients of the therapeutic candidates developed by the subsidiary, which is focused on oncology and neuropathy. Clinical trial data serves as the key metric for this segment's potential value.

Key clinical data points for the pipeline candidates as of early 2025:

Program	Indication/Trial Phase	Key Statistical Result (as of early 2025)
SON-1010 (IL12-FHAB)	Phase 1 SB101 Monotherapy	48% of evaluable patients showed stable disease at four months post-dosing.
SON-1010 (IL12-FHAB)	Phase 1 SB101 at MTD	One patient achieved a partial response (PR) with a 45% tumor reduction.
SON-080 (rhIL-6)	CIPN/DPN Development	Demonstrated to be well tolerated at doses 10-fold lower than the established IL-6 MTD in Phase 1b/2a.

The company reported a net loss of $3.2 million for Q1 FY2025. The first patient dosing for SON-1210 was expected in H1 calendar year 2025.

Sonnet BioTherapeutics Holdings, Inc. (SONN) - Canvas Business Model: Cost Structure

You're looking at the cost structure for Sonnet BioTherapeutics Holdings, Inc. as it transitions into Hyperliquid Strategies Inc. (HSI) in late 2025. The costs are now split between maintaining the legacy biotech operations and funding the massive new crypto treasury strategy.

The cost base for the former Sonnet BioTherapeutics Holdings, Inc. operations, prior to the full impact of the combination, is best seen through its recent operating performance. The Q3 2025 net loss was $3.78 million for the quarter ended June 30, 2025, which was slightly higher than the $3.51 million loss reported in the same quarter the prior year. This loss reflects the ongoing burn rate associated with the remaining biotech assets.

Here's a look at the most recent reported figures for the legacy structure before the full merger integration, which shows a clear focus on cost containment.

Cost Category	Period Ending September 30, 2024 (FY)	Period Ending December 31, 2024 (Q1 2025)
Legacy R&D and Clinical Trial Expenses	$5.7 million	Higher than prior year due to program and licensing activity
General and Administrative (G&A) Expenses	$6.1 million	Higher than prior year due to program and licensing activity

The legacy R&D and clinical trial expenses are the primary variable cost for the remaining biotech assets, such as the development of SON-1010. The company had previously reported a 37% reduction in total annual operating expenses for fiscal year 2024 compared to fiscal year 2023, showing an effort to manage these costs.

The most significant cost component now relates to the $888 million business combination, which fundamentally shifts the cost profile to one centered on asset acquisition and treasury management. The costs associated with acquiring and securing the HYPE token reserve are defined by the transaction structure itself.

Component of Business Combination Value	Assumed Value / Amount
Value of HYPE Token Reserve	$583 million (approx. 12.6 million HYPE tokens)
Gross Cash Invested at Closing	At least $305 million
Total Assumed Closing Value	$888 million

The transaction and legal fees related to this massive pivot are being funded through parallel financing activities announced alongside the merger agreement. You need to track these sources as they represent immediate cash outlays for the closing process.

• Funding for transaction expenses is being sourced from a $5.5 million private placement (issuance of non-voting convertible preferred stock and warrants).
• An additional $2.0 million principal amount of convertible notes from June 2025 will convert to fund these expenses and working capital requirements.

Finance: draft 13-week cash view by Friday.

Sonnet BioTherapeutics Holdings, Inc. (SONN) - Canvas Business Model: Revenue Streams

You're looking at the revenue structure for Sonnet BioTherapeutics Holdings, Inc. as it transitions into late 2025. The business model has definitely taken a sharp turn, so the revenue streams reflect a dual focus, though the crypto treasury is now the dominant feature.

Potential appreciation in the value of the HYPE token treasury reserve

The primary asset stream now centers on the newly formed Hyperliquid Strategies Inc. (HSI), which operates as a public cryptocurrency treasury company, with Sonnet BioTherapeutics Holdings, Inc. continuing as a wholly-owned subsidiary. This structure is designed to capture value from the appreciation of the underlying digital asset.

• Total assumed closing value of the treasury reserve: $888 million as of the December 2025 closing.
• The reserve holds approximately 12.6 million HYPE tokens.
• The HYPE token value component of the treasury at closing was $583 million.
• The HYPE token was trading near $48 per token around the July 2025 agreement date.

Upfront and milestone payments from licensing agreements

The legacy biotech operations still generate transactional revenue, primarily from the Alkem Laboratories Limited licensing agreement for SON-080. You saw the upfront cash hit the books earlier this year, validating the monetization path for that asset outside of oncology.

Here's a quick look at the known deal components:

Payment Type	Agreement/Period	Reported Amount
Upfront Collaboration Revenue	Alkem License (Q1 FY2025 Recognition)	$1.00 million
Additional Milestone Payments	Alkem Agreement (Potential)	Up to an additional $1.0 million
Contract Asset (Unbilled)	Alkem License (Q1 2025)	$0.5 million

The Q1 FY2025 collaboration revenue was $1.00M, a significant jump from the prior-year quarter's $0.02M.

Future royalties on commercialized legacy biotech products

For the SON-080 program in India, which covers Diabetic Peripheral Neuropathy (DPN), Chemotherapy Induced Neuropathy (CIPN), and autonomic neuropathy, the revenue stream is contingent on future commercial success. Alkem is responsible for funding development and commercialization in that territory.

• Royalty rate: A percentage in the low double digits of net sales.
• This royalty is calculated after deducting certain specified expenses.

Proceeds from capital market financings to fund operations

Financing activities have been crucial for maintaining operations and funding the transaction expenses related to the merger. You can see several distinct capital raises contributing to liquidity.

The cash position benefited from recent equity activity:

• Financings in November/December 2024, plus others, resulted in approximately ~$7.7M net in Q1 2025 cash improvement.
• The HSI closing included $305 million in gross cash proceeds, which will be used to acquire more HYPE tokens.
• A private placement concurrent with the merger agreement signing raised an aggregate of $5.5 million.
• An underwritten public offering priced in November 2024 generated total gross proceeds of approximately $5.0 million.

The biotech operations, continuing as a subsidiary under HSI, will use net proceeds from these raises for general corporate purposes, working capital, and the continued development of existing biotech assets.