Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 26

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 26
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 internal financial
and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis is a costly and
time-consuming effort that needs to be re-evaluated frequently. Internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with Generally
Accepted Accounting Principles or GAAP.

In addition, we are required to be compliant with
public company internal control requirements mandated under Section 302 and 906 of the Sarbanes-Oxley Act. If we are unable to successfully
maintain internal controls over financial reporting, the accuracy and timing of our financial reporting, and our stock price, may be adversely
affected.

 15 

Risks Related
to Our Financial Position and Need for Additional Capital 

We will need substantial additional funding. If
we are unable to secure sufficient capital in the near term, we may be required to cease operations. 

As of December 31, 2024, we had cash and cash equivalents
of $115,019 and current liabilities of $5,537,270. Since the closing date of the Reverse Merger, we have been unable to raise sufficient
capital to advance any product candidate from preclinical development into clinical development. Moreover, our existing cash resources
are not sufficient to meet our existing liabilities and anticipated needs over the next twelve months from the date hereof. We will need
to raise additional capital to continue our operations and to implement our business plan, which capital is unlikely to be available on
favorable terms or at all. In addition, if we are able to raise sufficient capital and potentially license or acquire new technologies,
we expect our expenses to significantly increase if and when we are able to support preclinical models, product manufacturing, perform
preclinical studies, including toxicology studies, initiate clinical development, and eventually, if successful, seek marketing approval
for, any product candidates. Since the closing date of the Reverse Merger, our limited cash position has slowed our product development
and other activities to remain afloat. If we are unable to raise additional capital, we may be forced to cease our operations altogether.

If we are able to raise sufficient capital and potentially
license or acquire new technologies, our funding needs may fluctuate significantly based on several factors, including, but not limited
to:

·the scope, progress, results and costs of product
development and manufacture of drug product to support preclinical and clinical development of potential product candidates;

·the