Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 767

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 767
---
 included in “Change in operating assets and liabilities” to “Adjustments to
reconcile net loss to net cash from operations”

Revenue
recognition

The
Company currently has no source of revenue. Miscellaneous income, including interest, is recognized when earned by the Company.

Income
taxes

The
Company accounts for income taxes pursuant to the provision of Accounting Standards Codification (“ASC”) 740-10, “Accounting
for Income Taxes” (“ASC 740-10”), which requires, among other things, an asset and liability approach to calculating
deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation
allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred
asset will not be realized.

    F-9

MIRA
                                            PHARMACEUTICALS, INC.

NOTES
TO THE FINANCIAL STATEMENTS

DECEMBER
31, 2024 AND 2023

The
Company follows the provision of ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are
filed, there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained.
In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the consolidated financial statements
in the period during which, based on all available evidence, management believes it is more likely than not that the position will be
sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or
aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured at the largest amount
of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.
The portion of the benefit associated with tax positions taken that exceed the amount measured as described above should be reflected
as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would
be payable to the taxing authorities upon examination. The Company believes its tax positions are all more likely than not to be upheld
upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.

Research
and development expenses

Research
and development