Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 417

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 417
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 several novel vaccine candidates, including SARS-CoV-2 and other infectious disease applications from UC
San Diego. Under the licensing agreement, we are obligated to pay (i) a nominal upfront license access fee, (ii) all patent costs incurred
prior to the effective date of the license agreement, (iii) annual license maintenance fees beginning on the second anniversary date of
the agreement, (iv) aggregate future milestone payments based on potential clinical development and regulatory milestones of up to $1,250,000
through Phase III development plus additional milestones upon regulatory approval in the U.S. and other countries, and (v) a low single
digit royalty on net sales and/or a percentage of sublicense income. On July 12, 2023, we provided notice to UC San Diego to terminate
the September 2021 license agreement based on our evaluation of our licensed technology portfolio and our focus on advancing our lead
oncology candidate, MIE-101.

During the years ended December 31, 2024 and 2023,
we incurred $0 and $6,200, respectively, in intellectual property costs associated with the license agreements with UC San Diego, which
amount is included in general and administrative expense in the accompanying consolidated statements of operations. In addition, for the
years ended December 31, 2024 and 2023, we expensed $7,000 and $10,000, respectively, in aggregate associated with annual maintenance
fees under the two license agreements with UC San Diego, which amount is included in research and development expense in the accompanying
consolidated statements of operations. As of December 31, 2024 and 2023, we have accrued $40,900 and $33,900, respectively, in accrued
expenses under the license agreements with UC San Diego.

7.        Convertible Notes

On May 7, 2021, we entered into a convertible note
purchase agreement (“May Note Agreement”) with five (5) accredited investors, including three (3) members of our Board of
Directors (“Board”) that participated on the same terms as other accredited investors. Pursuant to the Note Agreement, we
received $525,003 in proceeds in addition to $49,997 in accrued payable to founder that was invested in convertible notes and the Company
issued unsecured convertible promissory notes (“May Convertible Notes”) in the aggregate principal amount of $575,000.

On February 18, 2022,