Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 1404

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 1404
---
The
fair value of each option award is estimated on the grant date using the Black-Scholes valuation model that uses assumptions for expected
volatility, expected dividends, expected term, and the risk-free interest rate. Expected price volatility is based on the historical
volatilities of a peer group as the Company does not have a trading history for its shares prior to its IPO. Industry peers consist of
several public companies in the biotech industry similar to the Company in size, stage of life cycle and product indications. The Company
intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical
information regarding the volatility of the Company’s own stock price becomes available, or unless circumstances change such that
the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly
available would be utilized in the calculation.

Expected
term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of
the vesting term plus contract term. The risk-free rate is based on the 5-year U.S. Treasury yield curve in effect at the time of grant.
The Company recognizes forfeitures as they occur.

During
the year ended December 31, 2024, a total of 3,599,000 options to purchase Common Stock, with an aggregate fair market value of approximately
$2.79 million were granted to the Company’s executive officers, management, and consultants of the Company. Options have a term
of 10 years from the grant date. These options vest in various terms ranging from immediate vesting upon grant to the second anniversary
of the grant date.

As
of December 31, 2024 options exercisable totaled 2,348,720. The Company recognized approximately $1.9 million in stock-based compensation
in 2024. There was approximately $1.5 million of unrecognized compensation cost related to unvested share-based compensation awards granted.
These costs will be expensed through the second quarter of 2026.

    F-17

MIRA
                                            PHARMACEUTICALS, INC.

NOTES
TO THE FINANCIAL STATEMENTS

DECEMBER
31, 2024 AND 2023

The
following is option activity during the year ended December 31, 2024 and 2023:

 Schedule of Stock
Option Activity

    Number
    of Shares  
    Weighted