Company: SION
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0002036042-25-000016
Chunk: 227

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 227
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 size of our workforce; and

•$1.0 million increase in fees related to the increased use of consultants and professional service organizations.

Interest Income

Interest income increased by $1.9 million to $3.0 million for the three months ended March 31, 2025, from $1.1 million for the three months ended March 31, 2024, primarily driven by an increased investment in debt securities due to the proceeds received from the initial public offering and the amortization of discounts on our investment activity.

Other Income

Other income was $0.2 million for both the three months ended March 31, 2025, and 2024, due to sublease income in connection with our subleasing agreement.

Liquidity and Capital Resources

Sources of Liquidity

Since our inception, we have not generated any revenue from product sales and have incurred significant operating losses and negative cash flows from operations. We expect to continue to incur significant expenses and operating losses for the foreseeable future as we advance the clinical development of our product candidates and any future product candidates. As such, we expect our research and development and general and administrative costs will continue to increase significantly, including the costs associated with operating as a public company. As a result, we will need additional capital to fund our operations, which we may obtain from additional equity or debt financings or strategic agreements.

As of March 31, 2025, we had $354.7 million in cash, cash equivalents and marketable securities.

Cash Flows

The following table sets forth a summary of the net cash flow activity (in thousands):

Three Months Ended March 31,20252024Net cash used in operating activities$(16,288)$(13,175)Net cash used in investing activities(141,194)(123,927)Net cash provided by financing activities202,389 181,333 Net increase in cash, cash equivalents and restricted cash$44,907 $44,231 

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Operating Activities

For the three months ended March 31, 2025, net cash used in operating activities was $16.3 million primarily due to our net loss of $16.5 million and changes in operating assets and liabilities of $1.9 million, partially offset by $2.0 million of net non-cash charges, which includes stock-based compensation, depreciation, non-cash operating lease expense and amortization of discounts on marketable securities.

For the three months ended March 31,