Company: MIRA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024077
Chunk: 3

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 3
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 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).

Earnings
(loss) per Share

Earnings
(loss) per share is computed in accordance with ASC Topic 260, “Earnings per Share” Basic weighted-average number
of shares of common stock outstanding for the period ended June 30, 2025 and June 30, 2024 include the shares of the Company issued and
outstanding during such period, on a weighted average basis. The basic weighted average number of shares of common stock outstanding
excludes common stock equivalents such as stock options and warrants, while diluted weighted average number of shares outstanding includes
such stock options and warrants. During the six months ended June 30, 2025 and 2024, outstanding aggregate stock options and warrants
of 5,965,904 and 3,705,904 respectively, were not included in the computation of diluted earnings per share, because to do so would have
had an antidilutive effect.

Recent
accounting pronouncements not yet adopted 

In
November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic
220-40), which requires entities to provide more detailed disaggregation of expenses in the income statement, focusing on the nature
of the expenses rather than their function. The new disclosures will require entities to separately present expenses for significant
line items, including but not limited to, depreciation, amortization, and employee compensation. Entities will also be required to provide
a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively,
disclose the total amount of selling expenses and, in annual reporting