Sonnet BioTherapeutics (SONN) 10-Q 14 Aug 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Jun. 30, 2023	Aug. 07, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--09-30
Entity File Number	001-35570
Entity Registrant Name	SONNET BIOTHERAPEUTICS HOLDINGS, INC.
Entity Central Index Key	0001106838
Entity Tax Identification Number	20-2932652
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	100 Overlook Center
Entity Address, Address Line Two	Suite 102
Entity Address, City or Town	Princeton
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08540
City Area Code	(609)
Local Phone Number	375-2227
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	SONN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,511,014

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Sep. 30, 2022
Current assets:
Cash	$ 7,021,071	$ 3,052,879
Incentive tax receivable	749,169	717,305
Prepaid expenses and other current assets	1,862,683	1,643,743
Total current assets	9,632,923	5,413,927
Property and equipment, net	36,577	46,211
Operating lease right-of-use asset	209,944	256,594
Deferred offering costs		113,280
Other assets	155,366
Total assets	10,034,810	5,830,012
Current liabilities:
Accounts payable	3,024,441	4,752,340
Accrued expenses and other current liabilities	3,315,404	3,193,972
Operating lease liability	70,446	51,328
Deferred income	55,882	166,431
Total current liabilities	6,466,173	8,164,819
Operating lease liability	150,185	203,912
Total liabilities	6,616,358	8,368,731
Commitments and contingencies (Note 4)
Stockholders’ equity (deficit):
Preferred stock; $0.0001 par value: 5,000,000 shares authorized. No shares issued or outstanding
Common stock; $0.0001 par value: 125,000,000 shares authorized; 38,389,648 and 5,544,528 issued and outstanding at June 30, 2023 and September 30, 2022	3,839	554
Additional paid-in capital	109,981,627	88,871,786
Accumulated deficit	(106,567,014)	(91,411,059)
Total stockholders’ equity (deficit)	3,418,452	(2,538,719)
Total liabilities and stockholders’ equity (deficit)	10,034,810	5,830,012
Related Party [Member]
Current liabilities:
Related-party notes payable		$ 748

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Sep. 30, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	38,389,648	5,544,528
Common stock, shares outstanding	38,389,648	5,544,528

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Collaboration revenue	$ 36,850	$ 62,071	$ 110,550	$ 287,190
Operating expenses:
Research and development	2,409,471	5,648,952	9,972,055	16,320,090
General and administrative	1,542,689	2,280,345	5,330,967	6,259,494
Total operating expenses	3,952,160	7,929,297	15,303,022	22,579,584
Loss from operations	(3,915,310)	(7,867,226)	(15,192,472)	(22,292,394)
Foreign exchange (loss) gain	(31,432)	(9,794)	36,517	5,894
Net loss	$ (3,946,742)	$ (7,877,020)	$ (15,155,955)	$ (22,286,500)
Per share information:
Net loss per share, basic	$ (0.13)	$ (1.82)	$ (0.86)	$ (5.17)
Net loss per share, diluted	$ (0.13)	$ (1.82)	$ (0.86)	$ (5.17)
Weighted average shares outstanding, basic	29,376,018	4,330,489	17,568,549	4,314,635
Weighted average shares outstanding, diluted	29,376,018	4,330,489	17,568,549	4,314,635

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' (Deficit) Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Sep. 30, 2021	$ 430	$ 83,948,635	$ (61,689,218)	$ 22,259,847
Balance, shares at Sep. 30, 2021	4,303,617
Share-based compensation		332,075		332,075
Net loss			(6,200,981)	(6,200,981)
Balance at Dec. 31, 2021	$ 430	84,280,710	(67,890,199)	16,390,941
Balance, shares at Dec. 31, 2021	4,303,617
Balance at Sep. 30, 2021	$ 430	83,948,635	(61,689,218)	22,259,847
Balance, shares at Sep. 30, 2021	4,303,617
Net loss				(22,286,500)
Balance at Jun. 30, 2022	$ 462	84,739,461	(83,975,718)	764,205
Balance, shares at Jun. 30, 2022	4,629,278
Balance at Dec. 31, 2021	$ 430	84,280,710	(67,890,199)	16,390,941
Balance, shares at Dec. 31, 2021	4,303,617
Share-based compensation		350,891		350,891
Net loss			(8,208,499)	(8,208,499)
Issuance of common stock on vesting of restricted stock units
Issuance of common stock on vesting of restricted stock units, shares	893
Balance at Mar. 31, 2022	$ 430	84,631,601	(76,098,698)	8,533,333
Balance, shares at Mar. 31, 2022	4,304,510
Share-based compensation		107,892		107,892
Net loss			(7,877,020)	(7,877,020)
Issuance of common stock on vesting of restricted stock units	$ 32	(32)
Issuance of common stock on vesting of restricted stock units, shares	324,768
Balance at Jun. 30, 2022	$ 462	84,739,461	(83,975,718)	764,205
Balance, shares at Jun. 30, 2022	4,629,278
Balance at Sep. 30, 2022	$ 554	88,871,786	(91,411,059)	(2,538,719)
Balance, shares at Sep. 30, 2022	5,544,528
Sale of common stock, net of issuance costs	$ 242	4,451,770		4,452,012
Sale of common stock, net of issuance costs, shares	2,416,487
Net share settlement of warrants
Net share settlement of warrants, shares	3,026
Share-based compensation		91,617		91,617
Net loss			(5,542,142)	(5,542,142)
Balance at Dec. 31, 2022	$ 796	93,415,173	(96,953,201)	(3,537,232)
Balance, shares at Dec. 31, 2022	7,964,041
Balance at Sep. 30, 2022	$ 554	88,871,786	(91,411,059)	(2,538,719)
Balance, shares at Sep. 30, 2022	5,544,528
Net loss				(15,155,955)
Balance at Jun. 30, 2023	$ 3,839	109,981,627	(106,567,014)	3,418,452
Balance, shares at Jun. 30, 2023	38,389,648
Balance at Dec. 31, 2022	$ 796	93,415,173	(96,953,201)	(3,537,232)
Balance, shares at Dec. 31, 2022	7,964,041
Sale of common stock, net of issuance costs	$ 1,226	14,514,742		14,515,968
Sale of common stock, net of issuance costs, shares	12,255,830
Net share settlement of warrants	$ 23	(23)
Net share settlement of warrants, shares	231,481
Share-based compensation		56,998		56,998
Net loss			(5,667,071)	(5,667,071)
Issuance of common stock on vesting of restricted stock units	$ 5	(5)
Issuance of common stock on vesting of restricted stock units, shares	47,018
Balance at Mar. 31, 2023	$ 2,050	107,986,885	(102,620,272)	5,368,663
Balance, shares at Mar. 31, 2023	20,498,370
Sale of common stock, net of issuance costs	$ 366	1,945,311		1,945,677
Sale of common stock, net of issuance costs, shares	3,660,000
Net share settlement of warrants	$ 1,119	(1,119)
Net share settlement of warrants, shares	11,194,493
Share-based compensation		50,005		50,005
Net loss			(3,946,742)	(3,946,742)
Issuance of common stock on vesting of restricted stock units
Issuance of common stock on vesting of restricted stock units, shares	785
Exercise of warrants	$ 304	545		849
Exercise of warrants, shares	3,036,000
Balance at Jun. 30, 2023	$ 3,839	$ 109,981,627	$ (106,567,014)	$ 3,418,452
Balance, shares at Jun. 30, 2023	38,389,648

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (15,155,955)	$ (22,286,500)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	9,634	9,634
Acquired in-process research and development	282,000	871,877
Amortization of operating lease right-of-use asset	46,650	65,695
Share-based compensation	198,620	790,858
Change in operating assets and liabilities:
Incentive tax receivable	(31,864)
Prepaid expenses and other current assets	(218,940)	(754,872)
Other assets	(155,366)
Accounts payable	(1,877,222)	(761,833)
Accrued expenses and other current liabilities	264,872	893,728
Operating lease liability	(34,609)	(66,991)
Deferred income	(110,549)	(287,190)
Net cash used in operating activities	(16,782,729)	(21,525,594)
Cash flows from investing activities:
Purchase of in-process research and development	(273,250)	(871,877)
Net cash used in investing activities	(273,250)	(871,877)
Cash flows from financing activities:
Proceeds from sale of common stock, net of issuance costs	21,024,070
Proceeds from the exercise of warrants	849
Repayments of related party note	(748)
Net cash provided by financing activities	21,024,171
Net increase (decrease) in cash	3,968,192	(22,397,471)
Cash, beginning of period	3,052,879	27,622,067
Cash, end of period	7,021,071	5,224,596
Supplemental disclosure of non-cash operating, investing and financing activities:
Net settlement of warrants	1,142
Acquired in-process research and development in accounts payable	170,000
Change in operating right-of-use asset and liability due to amended lease		213,793
Deferred offering costs charged against proceeds from sale of common stock	32,340
Issuance of common stock on vesting of restricted stock units	5	33
Common stock issuance costs in accrued expenses and accounts payable	$ 78,073

Organization and Description of

Organization and Description of Business	9 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	1. Organization and Description of Business Description of business Sonnet BioTherapeutics, Inc. (“Prior Sonnet”) was incorporated as a New Jersey corporation on April 6, 2015. Prior Sonnet completed a merger with publicly-held Chanticleer Holdings, Inc. (“Chanticleer”) on April 1, 2020. After the merger, Chanticleer changed its name to Sonnet BioTherapeutics Holdings, Inc. (“Sonnet” or the “Company”). Sonnet is a clinical stage, oncology-focused biotechnology company with a proprietary platform for innovating biologic medicines of single- or bi-specific action. Known as F H Sonnet’s lead proprietary asset, SON-1010, is a fully human version of Interleukin 12 (“IL-12”), covalently linked to the F H In January 2023, Sonnet announced a collaboration agreement with Roche for the clinical evaluation of SON-1010 with atezolizumab (Tecentriq®). The companies have entered into a Master Clinical Trial and Supply Agreement (“MCSA”), along with ancillary Quality and Safety Agreements, to study the safety and efficacy of the combination of SON-1010 and atezolizumab in a platinum-resistant ovarian cancer (“PROC”) patient setting. Further, the companies will provide SON-1010 and atezolizumab, respectively, for use in the Phase 1b/Phase 2a combination safety, dose-escalation, and efficacy study (SB221). Part 1 of this 2-part study was recently approved by the local Human Research Ethics Committee in Australia under CT-2023-CTN-01399-1 and the Therapeutic Goods Administration has been notified. Recruitment is expected to begin imminently. As part of the ongoing cost-cutting evaluations, all antiviral development with SON-1010 has been suspended. The Company acquired the global development rights to its most advanced compound, SON-080, a fully human version of Interleukin 6 (“IL-6”), in April 2020 through its acquisition of the outstanding shares of Relief Therapeutics SA. Sonnet is advancing SON-080 in target indications of Chemotherapy-Induced Peripheral Neuropathy (“CIPN”) and Diabetic Peripheral Neuropathy (“DPN”). Sonnet received approval to initiate an ex-U.S. Phase 1b/2a study with SON-080 in CIPN during the third quarter of 2022. The Data Safety Monitoring Board (DSMB) overseeing the study is expected to meet during the third quarter of 2023. Following the completion of the DSMB review, we anticipate announcing initial safety data from the CIPN study. Pursuant to a license agreement the Company entered with New Life Therapeutics Pte, Ltd. (“New Life”) of Singapore in May 2021, Sonnet and New Life will be jointly responsible for developing SON-080 in DPN. The objective will be to analyze the data and to consider initiating a Phase 2 study once the CIPN safety data has been evaluated. SON-1210 (IL12-F H H Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements SON-1410 (IL18-F H in vivo The Company has completed sequence confirmation for SON-3015 (anti-IL6-F H in vivo Liquidity The Company has incurred recurring losses and negative cash flows from operations since inception and it expects to generate losses from operations for the foreseeable future primarily due to research and development costs for its potential product candidates. The Company believes its cash of $ 7.0 The Company plans to secure additional capital in the future through equity or debt financings, partnerships, collaborations, or other sources to carry out the Company’s planned development activities. If additional capital is not available when required, the Company may need to delay or curtail its operations until such funding is received. Various internal and external factors will affect whether and when the Company’s product candidates become approved for marketing and successful commercialization. The regulatory approval and market acceptance of the Company’s product candidates, length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the approval process will materially affect the Company’s financial condition and future operations. Operations since inception have consisted primarily of organizing the Company, securing financing, developing its technologies through performing research and development and conducting preclinical studies. The Company faces risks associated with companies whose products are in development. These risks include the need for additional financing to complete its research and development, achieving its research and development objectives, defending its intellectual property rights, recruiting and retaining skilled personnel, and dependence on key members of management.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies a. Basis of presentation The accompanying unaudited interim consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (ASUs”) of the Financial Accounting Standards Board (“FASB”). In the opinion of management, the accompanying unaudited interim consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the unaudited interim consolidated financial statements) considered necessary to present fairly the Company’s financial position as of June 30, 2023 and its results of operations for the three and nine months ended June 30, 2023 and 2022 and cash flows for the nine months ended June 30, 2023 and 2022. The unaudited interim consolidated financial statements presented herein do not contain the required disclosures under U.S. GAAP for annual financial statements and should be read in conjunction with the annual audited financial statements and related notes of Sonnet as of and for the year ended September 30, 2022 included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements b. Consolidation The unaudited interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. c. Use of estimates The preparation of the interim unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in these unaudited interim consolidated financial statements include the accrual of research and development expenses. Estimates and assumptions are periodically reviewed in-light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from management’s estimates. d. Reclassifications Certain amounts from the prior period have been reclassified to conform with the current period presentation. e. Incentive tax receivable Subsidiary is eligible to participate in an Australian research and development tax incentive program. As part of this program, Subsidiary is eligible to receive a cash refund from the Australian Taxation Office for a percentage of the research and development costs expended by Subsidiary in Australia. The cash refund is available to eligible companies with annual aggregate revenues of less than $20.0 million (Australian) during the reimbursable period. 0.7 0.3 illion and $ 0.3 0.8 0.4 1.1 0.2 R&D tax credit is an opportunity available with the State of New Jersey. The company seeks to apply for such tax credits. There is no assurance that such tax credit could be made available. f. Property and equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance that do not extend the estimated useful life or improve an asset are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation and amortization of assets disposed of are removed from the accounts, and any resulting gain or loss is included in the consolidated statement of operations. Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements g. Collaboration revenue Collaboration arrangements may contain multiple components, which may include (i) licenses; (ii) research and development activities; and (iii) the manufacturing and supply of certain materials. Payments pursuant to these arrangements may include non-refundable payments, upfront payments, milestone payments upon the achievement of significant regulatory and development events, sales milestones and royalties on product sales. The amount of variable consideration is constrained until it is probable that the revenue is not at a significant risk of reversal in a future period. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under a collaboration arrangement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as the Company satisfies each performance obligation. The Company applies significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, and assessing the recognition of variable consideration. When consideration is received prior to the Company completing its performance obligation under the terms of a contract, a contract liability is recorded as deferred income. Deferred income expected to be recognized as revenue within the twelve months following the balance sheet date is classified as a current liability. In May 2021, the Company entered into a License Agreement (the “New Life Agreement”) with New Life. See Note 5 for further discussion of the New Life Agreement. h. Research and development expense Research and development expenses include all direct and indirect costs associated with the development of the Company’s biopharmaceutical products. These expenses include personnel costs, consulting fees, and payments to third parties for research, development, and manufacturing services. These costs are charged to expense as incurred. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the related project, based on the measure of progress as defined in the contract. Factors the Company considers in preparing the estimates include costs incurred by the service provider, milestones achieved, and other criteria related to the efforts of its service providers. Such estimates are subject to change as additional information becomes available. Depending on the timing of payment to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company will record a prepaid expense or accrued liability relating to these costs. Upfront milestone payments made to third parties who perform research and development services on the Company’s behalf are expensed as services are rendered. Contingent development or regulatory milestone payments are recognized upon the related resolution of such contingencies. Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements i. Reverse stock split On September 16, 2022, the Company filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware, which effected a 1-for-14 reverse stock split j. Net loss per share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period (and potential shares of common stock that are exercisable for little or no consideration). Included in basic weighted-average number of shares of common stock outstanding during the three and nine months ended June 30, 2023 are the pre-funded February 2023 and June 2023 warrants with an exercise price of $ 0.0001 0.0014 Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities such as common stock warrants and stock options which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities have been excluded from the computation of diluted shares of common stock outstanding as they would be anti-dilutive: Schedule of Potentially Dilutive Securities 2023 2022 June 30, 2023 2022 Common stock warrants August 2021 2,827,708 2,827,708 Underwriter warrants August 2021 50,416 50,416 Private warrants — 7,549 Chanticleer warrants 1,267 1,267 Series C warrants 809,243 809,243 Series 3 warrants 276,140 — Unvested restricted stock units and awards 172,667 48,156 Common stock warrants February 2023 5,981,482 — Underwriter warrants February 2023 972,222 — Common stock private placement warrants June 2023 5,000,000 — PA warrants June 2023 150,000 — Total anti-dilutive weighted average shares 16,241,145 3,744,339 Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements k. Recent accounting pronouncements Recently adopted In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	3. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: Schedule of Accrued Expenses and Other Current Liabilities June 30, September 30, 2023 2022 Compensation and benefits $ 2,137,223 $ 1,218,530 Research and development 854,280 1,593,922 Professional fees 321,396 378,890 Other 2,505 2,630 Accrued expenses and other current liabilities $ 3,315,404 $ 3,193,972

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	4. Commitments and Contingencies Legal proceedings From time to time, the Company is a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of its business. While the outcomes of these matters are uncertain, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. License agreements In July 2012, the Company entered into a Discovery Collaboration Agreement (the “Collaboration Agreement”) with XOMA (US) LLC (“XOMA”), pursuant to which XOMA granted to the Company a non-exclusive, non-transferable license and/or right to use certain materials, technologies and related information related to discovery, optimization and development of antibodies and related proteins and to develop and commercialize products thereunder. The Company is obligated to make contingent milestone payments to XOMA totaling $ 3.8 0.5 Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements In August 2015, the Company entered into a License Agreement (the “ARES License Agreement”) with Ares Trading, a wholly-owned subsidiary of Merck KGaA (“ARES”). Under the terms of the ARES License Agreement, ARES has granted the Company a sublicensable, exclusive, worldwide, royalty-bearing license on proprietary patents to research, develop, use and commercialize products using atexakin alfa (“Atexakin”), a low dose formulation of human IL-6 in peripheral neuropathies and vascular complications. Pursuant to the ARES License Agreement, the Company will pay ARES high single-digit royalties on net sales of products sold by the Company. Royalties are payable on a product-by-product and country-by-country basis until the later of (i) a specified period of time after the first commercial sale in such country, and (ii) the last date on which such product is covered by a valid claim in such country. In January 2019, the Company entered into a Frame Services and License Agreement (the “Cellca Agreement”) with Sartorius Stedim Cellca GMBH (“Cellca”), pursuant to which Cellca has granted the Company a worldwide, non-exclusive, perpetual, non-transferable license to develop, manufacture or have manufactured, use, sell, import, export and/or otherwise commercialize product based on Cellca’s work to generate a specified transfected cell line and develop an upstream production process for such cell line. The Cellca Agreement is effective unless terminated by either party by giving six months notice, or by giving 14 days notice if terminated for good cause. The Company is obligated to make milestone payments to Cellca totaling up to $ 0.7 0.1 0.6 0.6 0.1 In October 2021, the Company entered into a Non-Exclusive License Agreement (the “Brink Agreement”) with Brink Biologics Inc. (“Brink”), pursuant to which Brink has granted the Company a non-exclusive, non-transferable license and limited right to sublicense certain materials and related information to develop cell-based assays for batch, quality control, stability, efficacy, potency or any other type of assay required for production and commercialization of products. During the product development phase, the Company was obligated to make annual product development license fee payments of approximately $ 0.1 12,000 0.1 0.1 $ 12,000 a $ 0.1 In February 2022, the Company entered into a Biological Materials License Agreement (the “InvivoGen Agreement”) with InvivoGen SAS (“InvivoGen”), pursuant to which InvivoGen has granted the Company a worldwide, non-exclusive license to use certain reporter cells for research, development and/or quality control purposes. The InvivoGen Agreement has an initial term of three years and may be extended for two additional three-year periods upon written notice by the Company and payment of an approximately € 0.1 $ 0.1 No 0.1 Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements In March 2022, the Company entered into a Material Transfer and License Agreement (the “ProteoNic Agreement”) with ProteoNic B.V. (“ProteoNic”), pursuant to which ProteoNic has granted to the Company a non-exclusive, non-transferable, non-sublicensable (except as provided for in the ProteoNic Agreement) license for certain materials, including plasmids and DNA sequences used to generate the vectors used in the Company’s cell lines, for the Company’s use in research, development and commercialization of product. The license will continue until terminated by either party. The Company incurred a $ 24,600 1.2 1.3 No Research and development agreement In December 2021, the Company entered into a Research and Development Agreement (the “Navigo Agreement”) with Navigo Proteins GmbH (“Navigo”), pursuant to which Navigo will perform specified evaluation and development procedures to evaluate certain materials to determine their commercial potential. Under the terms of the Navigo Agreement, the Company has granted Navigo a royalty-free, non-exclusive, worldwide, non-sublicensable, non-transferable right and license to use certain technology to perform the evaluation and development activities, and Navigo has granted the Company (i) an exclusive, worldwide, perpetual, irrevocable, sublicensable, transferable, royalty-free right and license to research, develop, use, sell, have sold, distribute, import or otherwise commercially exploit certain materials, and (ii) a non-exclusive, worldwide, perpetual, sublicensable, non-transferable right and license to make or have made such materials. The Company incurred a $ 0.1 1.0 The first milestone was achieved in December 2022, at which time the Company incurred a 0.1 million license fee which was recorded as acquired in-process research and development and included as research and development expenses in the unaudited interim consolidated statement of operations for the nine months ended June 30, 2023. The remaining evaluation milestones were achieved in April 2023, at which time the Company incurred $ 0.2 Employment agreements The Company has entered into employment contracts with its officers and certain employees that provide for severance and continuation of benefits in the event of termination of employment either by the Company without cause or by the employee for good reason, both as defined in the contract. In addition, in the event of termination of employment following a change in control, as defined, either by the Company without cause or by the employee for good reason, any unvested portion of the employee’s initial stock option grant becomes immediately vested. Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements

Collaboration Revenue

Collaboration Revenue	9 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration Revenue	5. Collaboration Revenue Under the New Life Agreement, the Company granted New Life an exclusive license (with the right to sublicense) to develop and commercialize pharmaceutical preparations containing a specific recombinant human IL-6, SON-080 (the “Compound”) (such preparations, the “Products”) for the prevention, treatment or palliation of diabetic peripheral neuropathy in humans (the “DPN Field”) in Malaysia, Singapore, Indonesia, Thailand, Philippines, Vietnam, Brunei, Myanmar, Lao PDR and Cambodia (the “Exclusive Territory”). New Life had the option to expand (1) the field of the exclusive license to include the prevention, treatment or palliation of chemotherapy-induced peripheral neuropathy in humans (the “CIPN Field”), which option was non-exclusive and expired on December 31, 2021; and/or (2) the territorial scope of the license to include the People’s Republic of China, Hong Kong and/or India, which option was exclusive and expired on December 31, 2021. The Company will retain all rights to manufacture Compounds and Products anywhere in the world. The Company and New Life shall enter into a follow-on supply agreement pursuant to which the Company shall supply to New Life Products for development and commercialization thereof in the DPN Field in the Exclusive Territory on terms to be negotiated by the parties. The Company will also assist in transferring certain preclinical and clinical development know-how that is instrumental in New Life’s ability to benefit from the license. New Life will bear the cost of, and be responsible for, among other things, conducting clinical studies and additional non-clinical studies and other developmental and regulatory activities for and commercializing Products in the DPN Field in the Exclusive Territory. New Life paid the Company a $ 0.5 0.5 New Life is also obligated to pay a non-refundable deferred license fee of an additional $ 1.0 19.0 12 30 The New Life Agreement will remain in effect on a Product-by-Product, country-by-country basis and will expire upon the expiration of the Royalty Term for the last-to-expire Product in the last-to-expire country, subject to (i) each party’s early termination rights including for material breach or insolvency or bankruptcy of the other party and (ii) the Company’s Buy Back Right and New Life’s Give Back Right (as defined below). In addition, New Life granted to the Company an exclusive option to buy back the rights granted by the Company to New Life and the Company granted New Life the right to give back the rights with respect to Products in the DPN Field in one or more countries in the Exclusive Territory on terms to be agreed upon, which options will expire upon the initiation of a Phase III Trial for the applicable Product. Revenue recognition The Company first assessed the New Life Agreement under ASC 808, Collaborative Arrangements Revenue from Contracts with Customers Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements The Company determined the initial transaction price of the single performance obligation to be $ 1.0 Collaboration revenue from the single performance obligation is being recognized over the estimated performance of the R&D services. The Company recognized $ 36,850 0.1 June 30 0.1 0.3 June 30

Stockholders_ Equity (Deficit)

Stockholders’ Equity (Deficit)	9 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Stockholders’ Equity (Deficit)	6. Stockholders’ Equity (Deficit) The Company entered into an At-the-Market Sales Agreement with BTIG, LLC (“BTIG”) on August 15, 2022 (the “2022 Sales Agreement”). Pursuant to the 2022 Sales Agreement, the Company may offer and sell, from time to time, through BTIG, as sales agent and/or principal, shares of its common stock having an aggregate offering price of up to $ 25.0 7.8 June 30 3,007,429 5.8 5.4 No June 30 On February 10, 2023, the Company closed a public offering of common stock and certain warrants through Chardan Capital Markets, LLC and EF Hutton, division of Benchmark Investments LLC as underwriters, for gross proceeds of $ 15.0 13.6 11,664,888 2,224,000 27,777,776 1.08 1.0799 Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements The common stock warrants are immediately exercisable at a price of $ 1.08 0.0001 In addition, warrants to purchase 972,222 1.35 On June 30, 2023, the Company closed a registered direct offering of common stock (and common stock equivalents in lieu thereof) and a concurrent private placement of certain common stock warrants through Chardan Capital Markets, LLC as placement agent, for gross proceeds of $ 2.3 1.9 3,660,000 1,340,000 5,000,000 0.45 The common stock warrants are exercisable beginning December 30, 2023 at a price of $ 0.6749 0.0001 In addition, warrants to purchase 150,000 0.6749 Common stock warrants As of June 30, 2023, the following equity-classified warrants and related terms were outstanding: Schedule of Warrants Outstanding Warrants Outstanding Exercise Price Expiration Date Common stock warrants August 2021 2,827,708 $ 11.90 August 24, 2024 Underwriter warrants August 2021 50,416 $ 14.875 August 19, 2024 Chanticleer warrants 1,267 $ 819.00 1,274.00 April 30, 2027 December 17, 2028 Series C warrants 809,243 $ 44.66 October 16, 2025 Series 3 warrants 276,140 $ 4.074 August 15, 2027 Common stock warrants February 2023 5,981,482 $ 1.08 February 10, 2028 Underwriter warrants February 2023 972,222 $ 1.35 February 8, 2028 Common stock private placement warrants June 2023 5,000,000 $ 0.6749 December 30, 2026 PA warrants June 2023 150,000 $ 0.6749 December 30, 2026 16,068,478 Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements During the three months ended June 30, 2023, 21,861,332 11,194,493 During the nine months ended June 30, 2023, 22,324,294 11,425,974 shares of common stock. During the three and nine months ended June 30, 2023, 3,036,000 3,036,000 During the nine months ended June 30, 2023, 3,026 3,026 During the nine months ended June 30, 2023 , 7,549 of private warrants expired.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	7. Share-Based Compensation In April 2020, the Company adopted the 2020 Omnibus Equity Incentive Plan (the “Plan”). On January 1, 2023, the total number of shares authorized under the Plan increased t 318,561 318,561 able for issuance under the Plan as of June 30, 2023. Th Restricted stock units In July of 2020, 46,703 In March of 2021, an additional 3,357 In December of 2021, 46,478 In December of 2022, 172,672 In January 2023, 121,366 (“Restricted Stock Awards” or “RSAs”) The RSAs have the same vesting conditions as the original RSUs issued in December 2022. 38,837 Any unvested RSUs or RSAs will be forfeited upon termination of services. The fair value of an RSU or RSA is equal to the fair market value of the Company’s common stock on the date of grant. RSU and RSA expense is amortized straight-line over the vesting period. Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements The Company recorded share-based compensation expense associated with the RSUs and RSAs in its accompanying unaudited interim consolidated statements of operations as follows: Schedule of Share-based Compensation Expense Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended June 30, 2023 June 30, 2023 June 30, 2022 June 30, 2022 Research and development $ 24,554 $ 102,807 $ 64,476 $ 394,558 General and administrative 25,451 95,813 43,416 396,300 Share Based Compensation $ 50,005 $ 198,620 $ 107,892 $ 790,858 The following table summarizes RSU activity under the Plan: Schedule of Restricted Stock Units Activity RSU Weighted Average Grant Date Fair Value Unvested balance at October 1, 2022 47,798 $ 7.89 Granted 172,672 $ 0.98 Vested (47,803 ) $ 0.57 Forfeited/cancelled (121,366 ) $ 0.97 Unvested balance at June 30, 2023 51,301 $ 0.54 As of June 30 24,389 a weighted-average period of less than one year The following table summarizes RSA activity under the Plan: Schedule of Restricted Stock Awards Activity RSA Weighted Average Grant Date Fair Value Unvested balance at October 1, 2022 — $ — Granted 121,366 $ 1.29 Vested — $ — Forfeited/cancelled — $ — Unvested balance at June 30, 2023 121,366 $ 1.29 As of June 30 75,623 a weighted-average period of less than one year

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes In August 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA”). The IRA contains a number of tax-related provisions that will be effective for tax years beginning after December 31, 2022, including a corporate alternative minimum tax of 15 1

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events The Company has evaluated subsequent events from the balance sheet date through the date the unaudited interim consolidated financial statements were available to be issued.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of presentation	a. Basis of presentation The accompanying unaudited interim consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (ASUs”) of the Financial Accounting Standards Board (“FASB”). In the opinion of management, the accompanying unaudited interim consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the unaudited interim consolidated financial statements) considered necessary to present fairly the Company’s financial position as of June 30, 2023 and its results of operations for the three and nine months ended June 30, 2023 and 2022 and cash flows for the nine months ended June 30, 2023 and 2022. The unaudited interim consolidated financial statements presented herein do not contain the required disclosures under U.S. GAAP for annual financial statements and should be read in conjunction with the annual audited financial statements and related notes of Sonnet as of and for the year ended September 30, 2022 included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements
Consolidation	b. Consolidation The unaudited interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of estimates	c. Use of estimates The preparation of the interim unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in these unaudited interim consolidated financial statements include the accrual of research and development expenses. Estimates and assumptions are periodically reviewed in-light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from management’s estimates.
Reclassifications	d. Reclassifications Certain amounts from the prior period have been reclassified to conform with the current period presentation.
Incentive tax receivable	e. Incentive tax receivable Subsidiary is eligible to participate in an Australian research and development tax incentive program. As part of this program, Subsidiary is eligible to receive a cash refund from the Australian Taxation Office for a percentage of the research and development costs expended by Subsidiary in Australia. The cash refund is available to eligible companies with annual aggregate revenues of less than $20.0 million (Australian) during the reimbursable period. 0.7 0.3 illion and $ 0.3 0.8 0.4 1.1 0.2 R&D tax credit is an opportunity available with the State of New Jersey. The company seeks to apply for such tax credits. There is no assurance that such tax credit could be made available.
Property and equipment	f. Property and equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance that do not extend the estimated useful life or improve an asset are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation and amortization of assets disposed of are removed from the accounts, and any resulting gain or loss is included in the consolidated statement of operations. Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements
Collaboration revenue	g. Collaboration revenue Collaboration arrangements may contain multiple components, which may include (i) licenses; (ii) research and development activities; and (iii) the manufacturing and supply of certain materials. Payments pursuant to these arrangements may include non-refundable payments, upfront payments, milestone payments upon the achievement of significant regulatory and development events, sales milestones and royalties on product sales. The amount of variable consideration is constrained until it is probable that the revenue is not at a significant risk of reversal in a future period. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under a collaboration arrangement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as the Company satisfies each performance obligation. The Company applies significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, and assessing the recognition of variable consideration. When consideration is received prior to the Company completing its performance obligation under the terms of a contract, a contract liability is recorded as deferred income. Deferred income expected to be recognized as revenue within the twelve months following the balance sheet date is classified as a current liability. In May 2021, the Company entered into a License Agreement (the “New Life Agreement”) with New Life. See Note 5 for further discussion of the New Life Agreement.
Research and development expense	h. Research and development expense Research and development expenses include all direct and indirect costs associated with the development of the Company’s biopharmaceutical products. These expenses include personnel costs, consulting fees, and payments to third parties for research, development, and manufacturing services. These costs are charged to expense as incurred. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the related project, based on the measure of progress as defined in the contract. Factors the Company considers in preparing the estimates include costs incurred by the service provider, milestones achieved, and other criteria related to the efforts of its service providers. Such estimates are subject to change as additional information becomes available. Depending on the timing of payment to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company will record a prepaid expense or accrued liability relating to these costs. Upfront milestone payments made to third parties who perform research and development services on the Company’s behalf are expensed as services are rendered. Contingent development or regulatory milestone payments are recognized upon the related resolution of such contingencies. Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements
Reverse stock split	i. Reverse stock split On September 16, 2022, the Company filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware, which effected a 1-for-14 reverse stock split
Net loss per share	j. Net loss per share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period (and potential shares of common stock that are exercisable for little or no consideration). Included in basic weighted-average number of shares of common stock outstanding during the three and nine months ended June 30, 2023 are the pre-funded February 2023 and June 2023 warrants with an exercise price of $ 0.0001 0.0014 Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities such as common stock warrants and stock options which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities have been excluded from the computation of diluted shares of common stock outstanding as they would be anti-dilutive: Schedule of Potentially Dilutive Securities 2023 2022 June 30, 2023 2022 Common stock warrants August 2021 2,827,708 2,827,708 Underwriter warrants August 2021 50,416 50,416 Private warrants — 7,549 Chanticleer warrants 1,267 1,267 Series C warrants 809,243 809,243 Series 3 warrants 276,140 — Unvested restricted stock units and awards 172,667 48,156 Common stock warrants February 2023 5,981,482 — Underwriter warrants February 2023 972,222 — Common stock private placement warrants June 2023 5,000,000 — PA warrants June 2023 150,000 — Total anti-dilutive weighted average shares 16,241,145 3,744,339 Sonnet BioTherapeutics Holdings, Inc. Notes to Unaudited Interim Consolidated Financial Statements
Recent accounting pronouncements	k. Recent accounting pronouncements Recently adopted In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of Potentially Dilutive Securities	The following potentially dilutive securities have been excluded from the computation of diluted shares of common stock outstanding as they would be anti-dilutive: Schedule of Potentially Dilutive Securities 2023 2022 June 30, 2023 2022 Common stock warrants August 2021 2,827,708 2,827,708 Underwriter warrants August 2021 50,416 50,416 Private warrants — 7,549 Chanticleer warrants 1,267 1,267 Series C warrants 809,243 809,243 Series 3 warrants 276,140 — Unvested restricted stock units and awards 172,667 48,156 Common stock warrants February 2023 5,981,482 — Underwriter warrants February 2023 972,222 — Common stock private placement warrants June 2023 5,000,000 — PA warrants June 2023 150,000 — Total anti-dilutive weighted average shares 16,241,145 3,744,339

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following: Schedule of Accrued Expenses and Other Current Liabilities June 30, September 30, 2023 2022 Compensation and benefits $ 2,137,223 $ 1,218,530 Research and development 854,280 1,593,922 Professional fees 321,396 378,890 Other 2,505 2,630 Accrued expenses and other current liabilities $ 3,315,404 $ 3,193,972

Stockholders_ Equity (Deficit)

Stockholders’ Equity (Deficit) (Tables)	9 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Schedule of Warrants Outstanding	As of June 30, 2023, the following equity-classified warrants and related terms were outstanding: Schedule of Warrants Outstanding Warrants Outstanding Exercise Price Expiration Date Common stock warrants August 2021 2,827,708 $ 11.90 August 24, 2024 Underwriter warrants August 2021 50,416 $ 14.875 August 19, 2024 Chanticleer warrants 1,267 $ 819.00 1,274.00 April 30, 2027 December 17, 2028 Series C warrants 809,243 $ 44.66 October 16, 2025 Series 3 warrants 276,140 $ 4.074 August 15, 2027 Common stock warrants February 2023 5,981,482 $ 1.08 February 10, 2028 Underwriter warrants February 2023 972,222 $ 1.35 February 8, 2028 Common stock private placement warrants June 2023 5,000,000 $ 0.6749 December 30, 2026 PA warrants June 2023 150,000 $ 0.6749 December 30, 2026 16,068,478

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Compensation Expense	The Company recorded share-based compensation expense associated with the RSUs and RSAs in its accompanying unaudited interim consolidated statements of operations as follows: Schedule of Share-based Compensation Expense Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended June 30, 2023 June 30, 2023 June 30, 2022 June 30, 2022 Research and development $ 24,554 $ 102,807 $ 64,476 $ 394,558 General and administrative 25,451 95,813 43,416 396,300 Share Based Compensation $ 50,005 $ 198,620 $ 107,892 $ 790,858
Schedule of Restricted Stock Units Activity	The following table summarizes RSU activity under the Plan: Schedule of Restricted Stock Units Activity RSU Weighted Average Grant Date Fair Value Unvested balance at October 1, 2022 47,798 $ 7.89 Granted 172,672 $ 0.98 Vested (47,803 ) $ 0.57 Forfeited/cancelled (121,366 ) $ 0.97 Unvested balance at June 30, 2023 51,301 $ 0.54
Schedule of Restricted Stock Awards Activity	The following table summarizes RSA activity under the Plan: Schedule of Restricted Stock Awards Activity RSA Weighted Average Grant Date Fair Value Unvested balance at October 1, 2022 — $ — Granted 121,366 $ 1.29 Vested — $ — Forfeited/cancelled — $ — Unvested balance at June 30, 2023 121,366 $ 1.29

Organization and Description _2

Organization and Description of Business (Details Narrative) - USD ($)	Jun. 30, 2023	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash	$ 7,021,071	$ 3,052,879

Schedule of Potentially Dilutiv

Schedule of Potentially Dilutive Securities (Details) - shares	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	16,241,145	3,744,339
Common Stock Warrants August 2021 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	2,827,708	2,827,708
Underwriter Warrants August 2021 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	50,416	50,416
Private Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares		7,549
Chanticleer Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	1,267	1,267
Series C Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	809,243	809,243
Series 3 Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	276,140
Unvested Restricted Stock Units and Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	172,667	48,156
Common Stock Warrants February 2023 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	5,981,482
Underwriter Warrants February 2023 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	972,222
Common Stock Private Placement Warrants June 2023 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	5,000,000
PA Warrants June 2023 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	150,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended		3 Months Ended		9 Months Ended
	Sep. 16, 2022	Apr. 30, 2023	Jan. 31, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Incentive tax receivable, description						The cash refund is available to eligible companies with annual aggregate revenues of less than $20.0 million (Australian) during the reimbursable period.
Cash refund expected to be received				$ 0.3	$ 0.3	$ 0.8	$ 0.4
Income tax refund received			$ 1.1
Cash paid to government		$ 0.2
Stockholders equity reverse stock split	1-for-14 reverse stock split
Prefunded Warrant [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Basic weighted average number of shares exercise price				$ 0.0001		$ 0.0001
Series B Warrants [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Basic weighted average number of shares exercise price					$ 0.0014	$ 0.0014	$ 0.0014
Research and Development Tax Incentive Program [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Tax incentive program				$ 0.7		$ 0.7

Schedule of Accrued Expenses an

Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Jun. 30, 2023	Sep. 30, 2022
Payables and Accruals [Abstract]
Compensation and benefits	$ 2,137,223	$ 1,218,530
Research and development	854,280	1,593,922
Professional fees	321,396	378,890
Other	2,505	2,630
Accrued expenses and other current liabilities	$ 3,315,404	$ 3,193,972

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) € in Millions		1 Months Ended		3 Months Ended		9 Months Ended
	Apr. 30, 2023 USD ($)	Apr. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 EUR (€)	Mar. 31, 2023 USD ($)	Jan. 31, 2019 USD ($)
Loss Contingencies [Line Items]
Payment to acquire in process research and development						$ 273,250	$ 871,877
Research and development expense				$ 2,409,471	$ 5,648,952	9,972,055	16,320,090
Discovery Collaboration Agreements [Member] | XOMA [Member]
Loss Contingencies [Line Items]
Milestone payments				3,800,000		$ 3,800,000
Discovery Collaboration Agreements [Member] | XOMA [Member] | In Process Research and Development [Member]
Loss Contingencies [Line Items]
Annual license fee		$ 500,000
Cellca Agreement [Member]
Loss Contingencies [Line Items]
Description of milestone payments						The Company is obligated to make milestone payments to Cellca totaling up to $0.7 million upon the achievement of certain development and approval milestones if the Buy-Out Option is not exercised.
Cellca Agreement [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Milestone payments										$ 700,000
The Cellca Agreement [Member]
Loss Contingencies [Line Items]
Milestone payments				600,000		$ 600,000
The Cellca Agreement [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Payment for annual license fee obligation				600,000		600,000
The Cellca Agreement [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Payment for annual license fee obligation				100,000		100,000
The Cellca Agreement [Member] | In Process Research and Development [Member]
Loss Contingencies [Line Items]
Commercial product license fee payment obligation		$ 100,000
The Brink Agreement [Member]
Loss Contingencies [Line Items]
Commercial product license fee payment obligation				100,000		100,000
Payment of annual license fee				12,000		12,000
The Brink Agreement [Member] | In Process Research and Development [Member]
Loss Contingencies [Line Items]
Annual license fee						12,000	100,000
Commercial product license fee payment obligation				100,000		100,000
Invivo Gen Agreement [Member]
Loss Contingencies [Line Items]
Annual license fee				0		0
Payment for annual license fee obligation				100,000		100,000		€ 0.1
Invivo Gen Agreement [Member] | In Process Research and Development [Member]
Loss Contingencies [Line Items]
Annual license fee					100,000		100,000
Proteo Nic Agreement [Member]
Loss Contingencies [Line Items]
Milestone payments				1,300,000		1,300,000		€ 1.2
Annual license fee				$ 0	$ 0	0	$ 0
Proteo Nic Agreement [Member] | In Process Research and Development [Member]
Loss Contingencies [Line Items]
Annual license fee			$ 24,600
Navigo Agreement [Member] | Navigo Proteins GmbH [Member] | Technology Service [Member]
Loss Contingencies [Line Items]
Milestone payments									$ 1,000,000
Payment to acquire in process research and development						100,000
Research and development expense						$ 100,000
Milestone payment	$ 200,000

Collaboration Revenue (Details

Collaboration Revenue (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Jun. 30, 2021	Aug. 31, 2020	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collavorative arrangement right and obligation					New Life is also obligated to pay a non-refundable deferred license fee of an additional $1.0 million at the time of the satisfaction of certain milestones, as well as potential additional milestone payments to the Company of up to $19.0 million subject to the achievement of certain development and commercialization milestones. In addition, during the Royalty Term (as defined below), New Life is obligated to pay the Company tiered double-digit royalties ranging from 12% to 30% based on annual net sales of Products in the Exclusive Territory. The “Royalty Term” means, on a Product-by-Product and a country-by-country basis in the Exclusive Territory, the period commencing on the date of the first commercial sale (subject to certain conditions) of such Product in such country in the Exclusive Territory and continuing until New Life ceases commercialization of such Product in the DIPN Field.
Performance obligation					$ 1,000,000
Collaboration revenue			$ 36,850	$ 100,000	100,000	$ 300,000
License Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds for negotiate license agreement		$ 500,000
New Life Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds for negotiate license agreement	$ 500,000
Future milestone payments			1,000,000		1,000,000
Milestone payments			$ 19,000,000		$ 19,000,000
New Life Agreement [Member] | Minimum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties, percentage			12%		12%
New Life Agreement [Member] | Maximum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties, percentage			30%		30%

Schedule of Warrants Outstandin

Schedule of Warrants Outstanding (Details)	Jun. 30, 2023 $ / shares shares
Common Stock Warrants August 2021 [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	2,827,708
Exercise Price | $ / shares	$ 11.90
Expiration date	Aug. 24, 2024
Underwriter Warrants August 2021 [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	50,416
Exercise Price | $ / shares	$ 14.875
Expiration date	Aug. 19, 2024
Chanticleer Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	1,267
Chanticleer Warrants [Member] | Minimum [Member]
Class of Warrant or Right [Line Items]
Exercise Price | $ / shares	$ 819
Expiration date	Apr. 30, 2027
Chanticleer Warrants [Member] | Maximum [Member]
Class of Warrant or Right [Line Items]
Exercise Price | $ / shares	$ 1,274
Expiration date	Dec. 17, 2028
Series C Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	809,243
Exercise Price | $ / shares	$ 44.66
Expiration date	Oct. 16, 2025
Series 3 Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	276,140
Exercise Price | $ / shares	$ 4.074
Expiration date	Aug. 15, 2027
Common Stock Warrants February 2023 [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	5,981,482
Exercise Price | $ / shares	$ 1.08
Expiration date	Feb. 10, 2028
Underwriter Warrants February 2023 [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	972,222
Exercise Price | $ / shares	$ 1.35
Expiration date	Feb. 08, 2028
Common Stock Private Placement Warrants June 2023 [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	5,000,000
Exercise Price | $ / shares	$ 0.6749
Expiration date	Dec. 30, 2026
PA Warrants June 2023 [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	150,000
Exercise Price | $ / shares	$ 0.6749
Expiration date	Dec. 30, 2026
Warrant [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	16,068,478

Stockholders_ Equity (Deficit_2

Stockholders’ Equity (Deficit) (Details Narrative) - USD ($)				1 Months Ended	3 Months Ended			6 Months Ended	9 Months Ended
	Jun. 30, 2023	Feb. 10, 2023	Aug. 15, 2022	Jun. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Offering price for common stock					$ 1,945,677	$ 14,515,968	$ 4,452,012
Number of shares sold					0
Proceeds from sale of common stock									$ 21,024,070
Private warrants expired									7,549
Series B Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net share settlement of warrants, shares									3,026
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Offering price for common stock					$ 366	$ 1,226	$ 242
Sale of common stock, net of issuance costs, shares					3,660,000	12,255,830	2,416,487
Net share settlement of warrants, shares					11,194,493	231,481	3,026
Common Stock [Member] | Series B Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, net of issuance costs, shares									3,026
Prefunded Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, net of issuance costs, shares					3,036,000				3,036,000
Warrants exercised					3,036,000				3,036,000
Common Stock Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, net of issuance costs, shares					11,194,493				11,425,974
Net share settlement of warrants, shares					21,861,332				22,324,294
Chardan Capital Markets LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, net of issuance costs, shares	3,660,000
Purchase of warrants	5,000,000			5,000,000	5,000,000			5,000,000	5,000,000
Exercisable price	$ 0.45			$ 0.45	$ 0.45			$ 0.45	$ 0.45
Proceeds from issuance of private placement				$ 2,300,000				$ 1,900,000
2022 Sales Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Offering price for common stock			$ 7,800,000
Gross proceeds from sale agreement		$ 15,000,000
Proceeds from sale of common stock		$ 13,600,000
2022 Sales Agreement [Member] | Underwriter Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Purchase of warrants	150,000	972,222		150,000	150,000			150,000	150,000
Exercisable price		$ 1.35
2022 Sales Agreement [Member] | Underwriter Warrants [Member] | Forecast [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercisable price											$ 0.6749
2022 Sales Agreement [Member] | Common Stock [Member] | Investors [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, net of issuance costs, shares		11,664,888
2022 Sales Agreement [Member] | Prefunded Warrant [Member] | Investors [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Purchase of warrants		2,224,000
Exercisable price		$ 0.0001
Share price		$ 1.0799
2022 Sales Agreement [Member] | Prefunded Warrant [Member] | Chardan Capital Markets LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Purchase of warrants	1,340,000			1,340,000	1,340,000			1,340,000	1,340,000
2022 Sales Agreement [Member] | Common Warrant [Member] | Investors [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Purchase of warrants		27,777,776
Exercisable price		$ 1.08
2022 Sales Agreement [Member] | Common Warrant [Member] | Chardan Capital Markets LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercisable price	$ 0.0001			$ 0.0001	$ 0.0001			$ 0.0001	$ 0.0001
2022 Sales Agreement [Member] | Common Warrant [Member] | Chardan Capital Markets LLC [Member] | Forecast [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercisable price											$ 0.6749
2022 Sales Agreement [Member] | BTIG LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Offering price for common stock			$ 25,000,000
Number of shares sold									3,007,429
Gross proceeds from sale agreement									$ 5,800,000
Proceeds from sale of common stock									$ 5,400,000

Schedule of Share-based Compens

Schedule of Share-based Compensation Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share Based Compensation	$ 50,005	$ 107,892	$ 198,620	$ 790,858
Restricted Stock Units (RSUs) [Member] | Research and Development Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share Based Compensation	24,554	64,476	102,807	394,558
Restricted Stock Units (RSUs) [Member] | General and Administrative Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share Based Compensation	$ 25,451	$ 43,416	$ 95,813	$ 396,300

Schedule of Restricted Stock Un

Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested beginning balance | shares	47,798
Unvested weighted average grant fair value, beginning balance | $ / shares	$ 7.89
Restricted stock unit, granted | shares	172,672
Weighted average grant fair value, granted | $ / shares	$ 0.98
Restricted stock unit, Vested | shares	(47,803)
Weighted average grant fair value, Vested | $ / shares	$ 0.57
Restricted stock unit, Forfeited/cancelled | shares	(121,366)
Weighted average grant fair value, Forfeited/cancelled | $ / shares	$ 0.97
Unvested ending balance | shares	51,301
Unvested weighted average grant fair value, ending balance | $ / shares	$ 0.54

Schedule of Restricted Stock Aw

Schedule of Restricted Stock Awards Activity (Details) - Restricted Stock Awards (RSA) [Member]	9 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested beginning balance | shares
Unvested weighted average grant fair value, beginning balance | $ / shares
Restricted stock unit, granted | shares	121,366
Weighted average grant fair value, granted | $ / shares	$ 1.29
Restricted stock unit, Vested | shares
Weighted average grant fair value, Vested | $ / shares
Restricted stock unit, Forfeited/cancelled | shares
Weighted average grant fair value, Forfeited/cancelled | $ / shares
Unvested ending balance | shares	121,366
Unvested weighted average grant fair value, ending balance | $ / shares	$ 1.29

Share-Based Compensation (Detai

Share-Based Compensation (Details Narrative) - USD ($)	1 Months Ended					9 Months Ended
	Jan. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Jul. 31, 2020	Jun. 30, 2023	Jan. 01, 2023
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock units and vesting rights, description		In December of 2022, 172,672 RSUs were granted, 100% of which vest on January 1, 2024.	In December of 2021, 46,478 RSUs were granted, 100% of which vested on January 1, 2023.	In March of 2021, an additional 3,357 RSUs were granted, 50% of which vested on March 25, 2022 and the remaining 50% vested on March 25, 2023.	In July of 2020, 46,703 restricted stock units (“RSUs”) were granted, 50% of which vested on April 2, 2021 and the remaining 50% vested on April 2, 2022.
Number of shares granted		172,672	46,478	3,357	46,703
Restricted stock, shares issued	121,366
Stock compensation modification, incremental expense	$ 38,837
Unrecognized compensation expense						$ 24,389
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average period						1 year
Restricted Stock Awards (RSA) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense						$ 75,623
Restricted Stock Awards (RSA) [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average period						1 year
2020 Omnibus Equity Incentive Plan [Member] | Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares available for issuance						318,561	318,561

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	1 Months Ended
	Aug. 30, 2022
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Exercise tax rate on corporate stock repurchases	1%
Minimum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Corporate alternative tax rate	15%