Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 344

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 344
---
 certain diligence milestones.

Under the License Option Agreement, we issued CWRU
70,000 shares of Class B Common Stock at the fair market value of $7 on the date of issuance. On August 21, 2020, the Class B Stock was
exchanged for shares of Series B Preferred.

On May 4, 2022 we exercised our rights under the License
Option Agreement and entered into a license agreement with CWRU (“License Agreement”). Pursuant to the terms of the License
Agreement, we agreed to pay CWRU for each licensed product used in human applications (i) development milestones of up to $1.8 million
in aggregate dependent upon the progress of clinical trials, regulatory approvals, and initiation of product launch, (ii) tiered royalty
on net sales beginning in the mid-single digits, (iii) annual minimum royalty of $10,000 beginning on the second anniversary date of the
Agreement with the minimum amount rising based on net sales of the licensed product, and (iv) a declining percentage of all non-royalty
sublicensing income based on the escalating stage of development upon a sublicensing event, if applicable. In addition, we agreed to pay
CWRU for each licensed product used in veterinarian applications (i) a tiered royalty on net sales beginning in the low single digits
and (ii) a declining percentage of all non-royalty sublicensing income based on the escalating stage of development upon a sublicensing
event, if applicable.

In addition, we are responsible for the reimbursement
of all past, current and future patent fees incurred by CWRU under the License Agreement. During the years ended December 31, 2024 and
2023, we incurred $0 and $42,467, respectively, in patent legal fees associated with the License Agreement, which amounts are included
in general and administrative expenses in the accompanying consolidated statements of operations.

Due to our limited cash position, we did not pay amounts
owed to CWRU and on March 22, 2024, we received a notice of termination from CWRU to terminate the License Agreement effective on the
notice date. As of December 31, 2024 and 2023, we have accrued $406,973 in accrued patent fees under the License Agreement.

License Agreements with University of California
San Diego (“UC San Diego”)

During July 2021, we licensed the exclusive rights
from UC San Diego to develop and commercial