Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 584

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 584
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 primary uses of capital to date are primarily
related to payroll, consulting and related costs, corporate formation and ongoing public company expenses, audit fees, fees associated
with license agreements, including patent-related expenses, and costs of the reverse merger. Pending our ability to identify new product
candidates and license or acquire those rights, then on a go forward basis, we will need significant additional capital to support our
research and development efforts, compensation and related expenses, and hiring additional staff (including clinical, scientific, operational,
financial, and management personnel) and to reduce our current liabilities. Pending our ability to identify new product candidates and
license or acquire those rights, we would expect to incur substantial expenditures in the foreseeable future for the research and development
of new potential product candidates, provided we are able to raise sufficient capital to advance these technologies and technologies under
the Binding Term Sheet, as noted below.

On April 26, 2024, we entered into a binding term
sheet (“Binding Term Sheet”) with Oncotelic Therapeutics, Inc. (“Oncotelic”) pursuant to which we intend to acquire
(i) certain rights to Oncotelic’s clinical stage necroptosis cancer therapies associated with its vascular disruptive agents (“VDAs”)
and related regulatory and clinical packages, and (ii) non-exclusive access to its proprietary Artificial Intelligence (“AI”)
technologies for identifying immunotherapy combinations, in exchange for the issuance of shares of our common stock valued at $15.0 million
upon execution of the definitive agreement (representing 47,923,322 shares of our common stock), or a combination of common stock and
preferred stock to be determined by the parties, along with additional milestones allowing Oncotelic to earn up to an additional $15.0
million in shares of common stock that would be valued at the time of issuance, if earned. Pursuant to the Binding Term Sheet, we and
Oncotelic agreed to negotiate in good faith towards the execution of a definitive agreement and the closing of the transaction within
ninety (90) days, which is subject to customary due diligence and other conditions, including us obtaining shareholder approval for the
transaction and receiving waivers from our holders of Convertible Notes representing at least 90% of the principal amount outstanding
from any payment that would become due and payable upon a corporate transaction as contemplated under the Binding Term Sheet.

In addition, under the Binding Term Sheet, (i) we
will continue the development work necessary to achieve the mutually agreed upon milestones