Company: SION
Filing Date: 2025-02-03
Form Type: S-1/A
Source: 0001193125-25-018825
Chunk: 152

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-02-03
Form: S-1/A
Chunk 152
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s and the market performance of similar companies in the biopharmaceutical industry. |

109

The assumptions underlying these valuations were highly complex and subjective and represented
management’s best estimates, which involved inherent uncertainties and the application of management’s judgment. As a result, if we had used significantly different assumptions or estimates, the fair value of our common stock and our
stock-based compensation expense could be materially different.

Once a public trading market for our common stock has been established in
connection with the completion of this offering, it will no longer be necessary for our board of directors to estimate the fair value of our common stock in connection with our accounting for granted stock options and other such awards we may grant,
as the fair value of our common stock will be determined based on the quoted market price of our common stock.

Recent Accounting Pronouncements

A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in
Note 2, “Summary of Significant Accounting Policies” in our consolidated financial statements and our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus.

Qualitative and Quantitative Disclosures about Market Risk

Interest Rate Risk

Our primary exposure to market risk is interest rate sensitivity, which is impacted by changes to the general level of U.S.
interest rates, particularly because our cash equivalents and marketable securities are in the form of money market funds and marketable debt securities, which are classified as available for sale. As of September 30, 2024, we had cash, cash
equivalents and marketable securities of $180.9 million and as of December 31, 2023, we had cash and cash equivalents of $38.5 million. Interest income is sensitive to changes in the general level of interest rates and our cash, cash
equivalents and marketable securities are subject to interest rate risk and could fall in value if market interest rates increase.

As of
September 30, 2024 and 2023 and December 31, 2023 and 2022, we had no debt outstanding, and therefore we are not subject to interest rate risk related to debt.

Foreign Currency Exchange Risk

We are not currently
exposed to significant market risk related to changes in foreign currency exchange rates.

Effects of Inflation

Inflation generally affects us by increasing our cost of labor and clinical trial costs. We believe that inflation has not had a material effect on our
consolidated financial statements included elsewhere in this prospectus.