Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 104

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 104
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 as applicable. In connection
with the potential transaction with Oncotelic Therapeutics, Inc. (see Note 13), we received a one-time waiver from the convertible noteholders
representing approximately 96% of the principal balance of the Convertible Notes, that no payments of principal and interest would be
due under the proposed transaction with Oncotelic Therapeutics, Inc.

Pursuant to ASC Topic 835-30, “Imputation of
Interest”, the Convertible Notes were initially recorded at their amortized cost of $916,632 and were being accreted to their redemption
value of $1,145,790 (“Redemption Value”) over the estimated conversion period using the effective interest method. During
the years ended December 31, 2024 and 2023, the Company recorded $1,446 and $15,842, respectively, in accretion to redemption value on
the Convertible Notes. The Convertible Notes have been accreted to their full Redemption Value as of March 31, 2024.

8.        Note Payable

On November 18, 2024, we entered into an unsecured
convertible promissory note (“Note Purchase Agreement”) with an accredited investor (“Investor”) for proceeds
of up to $200,000 to be used for general corporate purposes. On December 4, 2024, the Company received $200,000 under the note purchase
agreement and issued an unsecured convertible note bearing interest at a rate of 5% per annum that is due and payable upon closing a financing
of at least $10.0 million or convertible into shares of common stock of the Company, at the sole discretion of the accredited investor.
The number of shares of common stock to be issued, if converted, would be equal to the unpaid principal amount and accrued and unpaid
interest thereon divided by the closing price of our common stock on the date that is one day prior to such election. As of December 31,
2024, the Company has accrued $740 in interest that is included in other accrued expenses within the accompanying consolidated balance
sheet.

     F-18 

    Mosaic ImmunoEngineering, Inc.

    Notes to Consolidated Financial Statements
    For the Years Ended December 31, 2024 and 2023 (continued)

9.        Stockholders’
Equity (Deficit) and Share-Based Compensation

Stockholders’ Equity (