Company: TELO
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001493152-25-004872
Chunk: 343

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-02-04
Form: 10-K
Item: Item 1
Chunk 343
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on extinguishment of debt. Pursuant to a conversion agreement, the following related party debt was converted to common stock
(after giving effect to our 1-for-2.05 reverse stock split that occurred on December 11, 2023) on November 30, 2023: The Bay Shore Line
of Credit – see note 4, balance of $1.4 million into 674,637 shares of our common stock and the MIRALOGX balance of $1.7 million.
into 837,841 shares of our common stock. The conversion of the Bay Shore Line of Credit and MIRALOGX balances resulted in a loss on the
debt conversion of $7,486,767 for the year ended December 31, 2023. No conversions occurred in 2024.

49

Liquidity
and Capital Resources

Sources
of Liquidity

Since
our inception in August 2021, we have financed our operations primarily through proceeds from our initial public offering that occurred
in February of 2024, an unsecured line of credit with the Bay Shore Trust, our majority shareholder, through a $1.0 million private placement
of shares of our Common Stock that occurred during the first quarter 2023 at $3.73 per share (after giving effect to our 1-for-2.05 reverse
stock split that occurred on December 11, 2023), and through a $1.0 million stock purchase agreement of our Common Stock with Starwood
Trust that occurred in the fourth quarter of 2024. We intend to finance our clinical development programs and working capital needs from
existing cash and potential new sources of debt and equity financing. Further, we plan to conduct a raise of capital in the near future
to assist in financing working capital needs. 

On
September 24, 2024 we entered into an unsecured Promissory Note and Loan Agreement with the Starwood Trust, a separate trust which was
established by our founder for the benefit of his family. Under this Promissory Note and Loan Agreement (the “Starwood Note”),
we have the right to borrow up to an aggregate of $5 million from the Starwood Trust at any time up until the second anniversary of the
note. Our right to borrow funds under the Starwood Note is subject to the absence of a material adverse change in its assets, operations,
or prospects. The Starwood Note, together with accrued interest, is to become