Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 561

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 561
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 Financing, as applicable, are not diluted by the conversion of the Convertible
Notes.

Pursuant to the Convertible Notes, a Qualified Financing
represents a single transaction or series of transactions whereby the Company receives aggregate gross proceeds of at least $5 million
from the sale of equity securities following the issuance date (excluding proceeds from the issuance of any future convertible notes).
A Smaller Financing represents any sale of equity securities whereby the aggregate gross proceeds are less than $5 million (excluding
proceeds from the issuance of any future convertible notes).

In addition, in the event of a corporate transaction
covering the sale of all or substantially all of the Company’s assets, or merger or consolidation with or into another entity, or
change in ownership of at least 50% in voting securities of the Company, the holder of the Convertible Note may elect that either: (a)
the Company pay the holder of such Convertible Note an amount equal to the sum of (i) all accrued and unpaid interest due on such Convertible
Note and (ii) one and one-half (1.5) times the outstanding principal balance of such Convertible Note; or (b) such Convertible Note will
convert into that number of conversion shares equal to the quotient obtained by dividing (i) the outstanding principal balance and unpaid
accrued interest of such Convertible Note on the date of conversion by (ii) the May or February Conversion Price, as applicable. In connection
with the potential transaction with Oncotelic Therapeutics, Inc. (see Note 13), we received a one-time waiver from the convertible noteholders
representing approximately 96% of the principal balance of the Convertible Notes, that no payments of principal and interest would be
due under the proposed transaction with Oncotelic Therapeutics, Inc.

Pursuant to ASC Topic 835-30, “Imputation of
Interest”, the Convertible Notes were initially recorded at their amortized cost of $916,632 and were being accreted to their redemption
value of $1,145,790 (“Redemption Value”) over the estimated conversion period using the effective interest method. During
the years ended December 31, 2024 and 2023, the Company recorded $1,446 and $15,842, respectively, in accretion to redemption value on
the Convertible Notes. The Convertible Notes have been accreted to their full Redemption Value as of March 31, 2024.