Company: SION
Filing Date: 2025-01-17
Form Type: S-1
Source: 0001193125-25-008474
Chunk: 335

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-01-17
Form: S-1
Chunk 335
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 Sanofi License Agreement, other than milestone, royalty or reimbursement payments. In addition, the

F-20

Company is required to pay CFF a total of up to $40.0 million upon achievement of certain late-stage developmental and commercial milestones. Such milestone and royalty payments shall be
reduced for products covered by derived patents. Further, a side letter was executed between the Company and Sanofi, which clarifies the relationship between the Company, Sanofi and CFF, under which the Company is obligated to pay Sanofi 20% of the
milestones it would have been obligated to pay CFF, net of the milestone amounts it is obligated to pay under the Sanofi License Agreement.

The
Company records the milestone payments as research and development expenses when the milestones occur and consideration is paid or becomes payable. As of December 31, 2023, none of such milestones have been achieved. The Company is also
required to pay revenue-shares of royalty payments to CFF in the low single-digit percentage range based on net sales of licensed products subject to customary reductions and offsets. Royalties will be recorded when the sales occur.

10. Convertible Preferred Stock

Series Seed

In December 2019, the Company issued and sold 2,762,762 shares of Series Seed convertible preferred stock, par value $0.001 per share
(“Series Seed Preferred Stock”) to certain investors at a purchase price of $3.33 per share, for gross proceeds of $8.2 million (the “Series Seed Financing”). As disclosed in Note 9, the Company issued Series Seed
Preferred Stock to CFF in connection with the CFF Payment Agreement, and the fair value of the Series Seed Preferred Stock was recorded as research and development expense in the consolidated statements of operations and comprehensive loss. One
investor was also issued 1,000,000 shares of common stock in connection with the initial Series Seed Financing closing. The proceeds from that investor were allocated between the Series Seed Preferred Stock and common stock on a relative fair
value basis. There were no material issuance costs incurred related to this financing.

In June 2020, upon the Board’s approval, the
Company issued an additional 1,201,202 shares of Series Seed Preferred Stock to an additional investor at $3.33 per share for gross proceeds of $4.0 million. The Company incurred $38,887 of issuance costs in connection with this issuance.

Series A

In September 2020, the Company issued
and