Company: SION
Filing Date: 2025-01-17
Form Type: S-1
Source: 0001193125-25-008474
Chunk: 151

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-01-17
Form: S-1
Chunk 151
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” 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.

Emerging Growth Company and Smaller Reporting Company Status

We are an “emerging growth company,” as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting
requirements that are applicable to other public companies that are not emerging growth companies. We may take advantage of these exemptions until we are no longer an emerging growth company. Section 107 of the JOBS Act provides that an

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“emerging growth company” can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. We have elected to
use the extended transition period for complying with new or revised accounting standards and as a result of this election, our consolidated financial statements may not be comparable to companies that comply with public company effective dates. We
may take advantage of these exemptions up until the time that we are no longer an “emerging growth company.”

We will remain an emerging
growth company until the earlier of (1) the last day