Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 349

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 349
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per share, which warrant will expire five years after the date of grant. Pursuant to a registration rights agreement, we have granted
to Bay Shore Trust the right to require us, at any time after one year following our initial public offering, to register for resale
the shares issuable upon the exercise of the warrant, with such registration rights being in the form of demand and “piggyback”
registration rights that are subject to customary limitations and restrictions. Upon issuance, the warrant met the criteria to be classified
as equity based on an analysis under Accounting Standards Codification (480) ASC 480, “Distinguishing Liabilities from Equity”
and was measured at fair value, resulting in an initial fair value of approximately $3.5 million upon issuance of the warrant using Black-Scholes
valuation techniques.

Transactions
with MIRALOGX LLC

Since
January 1, 2023, MIRALOGX has advanced funds on behalf of Bay Shore Trust to our company in order to fund operating activities. The total
amount advanced and outstanding from MIRALOGX was $1.6 million immediately prior to being consolidated into the Bay Shore Note on June
30, 2023, and such amounts became a part of the outstanding balance of the Bay Shore Note as of June 30, 2023 and were payable under the terms of the Bay Shore Note as discussed above.

We
are also a party to an Agreement for Shared Lease Costs, dated April 1, 2023, with MIRALOGX under which we have agreed to pay our pro
rata share of the operating usage costs owing by MIRALOGX under an aircraft lease agreement between MIRALOGX and Supera Aviation I LLC
(“Supera Aviation”) based on our usage of the leased aircraft each month. No amounts are payable by us under this agreement
unless and to the extent we choose to utilize the leased aircraft. As such, we discontinued the use of the aircraft in March 2023. Prior
to entering into this agreement, we were a party to an aircraft lease agreement with Supera Aviation from April 20, 2021, through March
31, 2023. We paid Supera Aviation an aggregate of $0.5 million during the first quarter of 2023 and $1.7 million in 2022. Supera Aviation
is a company owned by Starwood Trust.

On
November 15, 2023, we entered into