Company: MIRA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010301
Chunk: 17

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 17
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 associated with the application, are expensed in the period in which they
are incurred.

Stock-based
compensation

We
account for stock-based compensation under the provisions of FASB ASC 718, “Compensation - Stock Compensation”, which requires
the measurement and recognition of compensation expense for all stock-based awards made to employees, directors and consultants based
on estimated fair values on the grant date. We estimate the 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. We have elected to account for forfeiture of stock-based awards as they occur.

 15 

Results
of Operations

For
the three months ended March 31, 2025 compared to the three months ended March 31, 2024

Research
and Development Expenses. We incurred $0.3 million in research and development expenses during the three months ended March 31,
2025, relating to initial payment for toxicology study costs. Research and development expenses include clinical, toxicology and
consultant expenses. During the three months ended March 31, 2024, we incurred $0.8 million in research and development expenses,
which were primarily related to initial payments for clinical research projects for Ketamir-2. The decrease is primarily due to
Ketamir-2 moving into Phase 1 trials that began in the later part of Q1 2025 compared to Ketamir-2 R&D ramping up in the prior
year.

General
and Administrative Expenses. We incurred $1.5 million and $1.0 million in general and administrative expenses during the three
months ended March 31, 2025 and 2024, respectively. General and administrative expenses are composed primarily of compensation,
insurance, professional fees, stock-based compensation, administration and other related costs. The increase is primarily due to an
increase in stock-based compensation related to compensation to the officers, directors, and employees.

Interest
income. We earned $0.02 and $0.05 million in interest income during the three months ended March 31, 2025 and 2024, respectively.
Interest income during the three months for each respective period consisted of interest earned on bank accounts.

Liquidity
and Capital Resources

Sources
of Liquidity and Going Concern

Since
our inception in September 2020,