Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 1549

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 15
Chunk 1549
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 fair value of stock-based awards on the date of grant using
the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the
requisite service periods using the straight-line method. The Company has elected to account for forfeiture of stock-based awards as
they occur.

    F-10

MIRA
                                            PHARMACEUTICALS, INC.

NOTES
TO THE FINANCIAL STATEMENTS

DECEMBER
31, 2024 AND 2023

Operating Segments

Operating segments are identified as components of an enterprise for which separate discrete financial information
is available for evaluation by the Company’s chief operating decision maker (“CODM”) and relied upon when making decisions
regarding resource allocation and assessing performance.  When evaluating the Company’s financial performance, the CODM reviews
total revenues, total expenses, and expenses by functional classification;  using this information to make decisions on a company-wide
basis.

Fair
value of financial instruments

The
Company measures the fair value of financial instruments in accordance with GAAP which defines fair value, establishes a framework for
measuring fair value, and expands disclosures about fair value measurements.

GAAP
defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
GAAP also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs when measuring fair value. The Company considers the carrying amount of deferred offering costs to approximate
fair value due to short-term nature of this instrument. GAAP describes three levels of inputs that may be used to measure fair value:

Level
1 - quoted prices in active markets for identical assets or liabilities.

Level
2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level
3 - inputs that are unobservable (for example cash flow modeling inputs based on assumptions).

Contingencies

In
the normal course of business, the Company may be subject to loss contingencies, such as legal proceedings, amounts arising from contractual
arrangements and claims arising out of the Company’s business that cover a wide range of matters, including, among others, government
investigations, shareholder lawsuits, and tax matters. In accordance with ASC Topic 450, Accounting for Contingencies