Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 96

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 96
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 and income tax expense
(or benefit) from continuing operations disaggregated by federal (national), state, and foreign. Lastly, the guidance eliminates the requirement
for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance
in the next 12 months or make a statement that an estimate of the range cannot be made. For public business entities, the guidance is
effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have
not yet been issued or made available for issuance. The guidance should be applied on a prospective basis. Retrospective application is
permitted. The Company is currently evaluating the impact that this guidance may have on its consolidated financial statements.

3.        Fair
Value of Financial Instruments 

The Company’s financial instruments consist
of money market funds as well as an anti-dilution issuance rights liability pursuant to the License Option Agreement with Case Western
Reserve University (“CWRU”) (see Note 6). The anti-dilution issuance rights met the definition of a derivative under ASC Topic
815, “Derivatives and Hedging”, and the liability was carried at fair value until the Capital Threshold (see Note 6) was met
during June 2023, at which point the anti-dilutions rights were extinguished.

Under this authoritative guidance, we are required
to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We determine fair value
based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using
market interest rates commensurate with the credit quality and duration of the investment or valuations by third-party professionals.
The three levels of inputs that we may use to measure fair value are:

·Level 1: Unadjusted quoted prices in active markets
that are accessible at the measurement date for identical, unrestricted assets or liabilities;

·Level 2: Quoted prices in markets that are not active or inputs which are
observable, either directly or indirectly, for substantially the full term of the asset or liability; and

·Level 3: Prices or valuation
techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or
no market activity).

     F-13 

    Mosaic ImmunoEngineering, Inc.

    Notes to Consolidated Financial Statements
    For the Years